Maurya Shashi Hublal (25) Sem 6 Tybms

A PROJECT TITLED
“AWARENESS OF INSURANCE AMONG YOUTH”
SUBMITTED TO THE UNIVERSITY OF MUMBAI
For Partial Completion Of The Degree Of Bachelor Of Management Studies
Under The Faculty Of Commerce
Submitted By
MAURYA SHASHI HUBLAL
Roll No.(25)
B.M.S semester VI
UNDER THE GUIDE BY
Asst. Prof. Athira M K
E-Mail: info@menoncollege.edu.in PNONE: 02225668541
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CERTIFICATE
This is to certify that Mr. MAURYA SHASHI HUBLAL, Roll No.25 B.M.S semester VI
(2023-24) has worked and duly completed her/his Project Work in partial fulfillment of the
requirement for the award of Bachelor of Management Studies under the Faculty of
Commerce and his project is entitled, “AWARENESS OF INSURANCE AMONG YOUTH”
INTERNAL EXAMINER EXTERNAL EXAMINER PRINCIPAL
DATE OF SUBMISSION:
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DECLARATION
I MAURYA SHASHI HUBLAL, Roll No. 25 of B.M.S Semester VI, the undersigned hereby,
declare that the work embodied in this project titled “AWARNESS OF INSURANCE
AMONG YOUTH” forms my contribution to the research work carried out under the
guidance of Asst. Prof. Athira M K is a result of my research work.
Wherever reference has been made to previous works of others, it has indicated such and
included in the bibliography.
I, at this moment further declare that all information in this document has been obtained and
presented according to academic rules and ethical conduct.
(SIGNATURE OF STUDENT)
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ACKNOWLEDGMENT
To list all has helped me with difficulties because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensionss
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me a chance to do this
project.
I would like to thank my Principal, Smt. Devki Kutty for providing the necessary facilities
required for the completion of this project.
I take this opportunity to thank our Co-ordinator Asst. Prof. Athira M for his moral support
and guidance.
I would also like to express my sincere gratitude towards my Project Guide Asst. Prof. Athira
M whose guidance and care made the project successful.
I would like to thank my college library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank every person who directly or indirectly helped me in completion
of the project especially my parents and peers who supported me throughout my project
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INDEX
SR. NO TOPIC NAME PAGE NO.
CHAPTER INTRODUCTION 7-35

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1.1 Definition Of Insurance 7
1.2 Why Insurance Is Important For Youth 8
1.3 Advantages Of Insurance 10
1.4 Wealth Management In Insurance 11
1.5 Types Of Insurance 12
1. Life Insurance 12-25
2. Non -Life Insurance 23-35
CHAPTER RESEARCH AND METHODOLOGY 36-45

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2.1 Research And Methodology 36
2.2 Objective 37
2.3 Scope Of Study 38
2.4 Limitation Of Study 38-39
2.5 Significant Of Study 40
2.6 Sample Size 42
2.7 Method Of Data Collection 42
2.8 Technique And Tools 45
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CHAPTER LITERATURE REVIEW 46-57
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3.1 Review Of Other Research 47
CHAPTER DATA ANALYSIS AND DATA 58-73

4 INTERPRETATION
3.1 Primary Data Analysis And Data Interpretation 58
CHAPTER CONCLUSION, FINDING, SUGGESTION AND 74-75

5 RECOMMENDATION
5.1 Finding 74
5.2 Conclusion 74
5.3 Suggestion And Recommendation 75
• BIBLIOGRAPHY 75
• APPENDIX 76-78
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CHAPTER 1: INTRODUCTION
1.1 Definition :
Insurance is a contractual agreement between an individual (or entity) and an insurance

company, wherein the individual pays a premium in exchange for financial protection against
certain risks or losses. The insurance company, in turn, agrees to provide compensation or
benefits to the individual in the event of covered circumstances. The purpose of insurance is
to mitigate financial uncertainty and protect against potential losses that may arise from
unforeseen events.
Here's a more detailed explanation of the key components and concepts related to insurance:
1. Policyholder: The individual or entity purchasing the insurance policy is known as the
policyholder. The policyholder enters into a contract with the insurance company and pays
premiums to maintain coverage.
2. Insurance Company/Insurer: The insurance company is the entity that issues the insurance
policy and assumes the financial risk associated with providing coverage. Insurers collect
premiums from policyholders and are responsible for paying out claims according to the
terms of the policy.
3. Premium: The premium is the amount of money the policyholder pays to the insurance
company in exchange for coverage. Premiums can be paid as a one-time lump sum or in
periodic installments (e.g., monthly, quarterly, or annually).
4. Coverage: Insurance coverage refers to the specific protections and benefits provided by the
insurance policy. Coverage may vary depending on the type of insurance and the terms
outlined in the policy contract. Common types of coverage include property damage, liability,
health care expenses, disability income, and life insurance benefits.
5. Policy: The insurance policy is a legal contract between the policyholder and the insurance
company. It outlines the terms, conditions, exclusions, and limitations of coverage, as well as
the rights and responsibilities of both parties. Policy documents typically include details such
as the coverage limits, deductibles, premiums, policy term, and claims procedures.
6. Risk Pooling: Insurance operates on the principle of risk pooling, where a large group of
policyholders collectively shares the financial risk of potential losses. Premium payments
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from all policyholders are pooled together to create a fund from which claims are paid out.
This spreading of risk helps protect individual policyholders from bearing the full burden of
large losses.
7. Underwriting: Underwriting is the process by which insurance companies assess the risk
associated with insuring a particular individual, property, or event. Insurers evaluate various
factors, such as the insured's age, health status, occupation, location, and past claims history,
to determine the appropriate premium rate and coverage terms.
8. Claims: A claim is a formal request made by a policyholder to the insurance company for
payment of benefits or compensation following a covered loss or event. Insurers investigate
claims to verify their validity and determine the amount of benefits owed under the policy.
Once approved, claims are paid out to the policyholder or other designated beneficiaries.
Overall, insurance provides individuals and businesses with financial protection and peace of
mind by transferring the risk of potential losses to an insurance company in exchange for the
payment of premiums. By spreading risk across a large pool of policyholders, insurance helps
individuals manage uncertainty and safeguard their assets and livelihoods against unforeseen
events
1.2 WHY INSURANCE IS IMPORTANT FOR YOUTH
Insurance is important to youth for several reasons, even though young people may not
always prioritize it. Here's why insurance matters for the youth:
1. Financial Protection: Accidents, illnesses, and other unexpected events can happen to
anyone, including young people. Insurance provides financial protection against these
unforeseen circumstances, helping young individuals avoid significant financial losses that
could derail their plans for education, career, or personal goals.
2. Healthcare Coverage: Health insurance is particularly crucial for young people, as they may
face health issues or accidents that require medical attention. Having health insurance ensures
access to necessary healthcare services without facing exorbitant out-of-pocket expenses,
which can be especially important for students or young professionals who may have limited
income.
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3. Asset Protection: Many young people acquire assets such as cars, smartphones, laptops, and
other valuable possessions. Insurance such as auto insurance, renters insurance, or personal
property insurance helps protect these assets from damage, theft, or loss, providing peace of
mind and financial security.
4. Liability Protection: Liability insurance, such as renters liability or personal liability

coverage, protects young individuals from potential lawsuits or claims for damages they may
be legally responsible for. This is particularly relevant as young people may engage in
activities like hosting social gatherings or participating in sports where accidents or injuries
could occur.
5. Future Planning: Life insurance may not be a top priority for young individuals, but it can
be essential for those who have dependents, such as children, aging parents, or spouses who
rely on their income. Life insurance provides financial support to beneficiaries in the event of
the policyholder's death, ensuring their loved ones are taken care of financially.
6. Building Financial Responsibility: Managing insurance policies requires understanding

financial responsibilities, such as paying premiums on time and understanding policy terms
and coverage limits. By engaging with insurance at a young age, individuals develop
financial literacy and responsibility, which are essential skills for managing personal finances
effectively in the long term.
7. Risk Management Skills: Learning to assess risks and manage them through insurance is an
important life skill. By understanding the types of insurance available and how they protect
against different risks, young people can make informed decisions to safeguard their financial
future and protect themselves from potential setbacks.
8. Compliance and Legal Requirements: In many cases, insurance is mandatory or required

by law. For example, auto insurance is typically required for drivers, and health insurance
coverage may be mandated by healthcare regulations. By obtaining the necessary insurance
coverage, young individuals ensure compliance with legal requirements and avoid potential
penalties or legal issues
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1.3 ADVANTAGES OF INSURANCE :
Insurance offers several advantages to individuals, businesses, and society as a whole. Here are
some key advantages of insurance:
1. Financial Protection: Insurance provides financial protection against unexpected losses or

damages. Whether it's property damage, medical expenses, liability claims, disability, or death,
insurance policies help mitigate the financial impact of unforeseen events by providing
compensation or benefits to the insured.
2. Risk Management: Insurance allows individuals and businesses to manage and transfer risks
to an insurance company. By paying premiums, policyholders transfer the financial burden of
potential losses to the insurer, reducing the risk of financial hardship in the event of an adverse
event.
3. Peace of Mind: Knowing that they are protected by insurance coverage gives individuals and
businesses peace of mind. Insurance provides a sense of security and reassurance that they will
be financially supported in the event of a covered loss, helping to alleviate stress and worry.
4. Business Continuity: For businesses, insurance plays a critical role in ensuring continuity of
operations. Insurance coverage for property damage, liability, business interruption, and other
risks helps businesses recover and resume normal operations more quickly after a loss,
minimizing disruptions and preserving profitability.
5. Legal Compliance: In many cases, insurance coverage is required by law or regulations. For
example, auto insurance is mandatory in most jurisdictions to drive legally on public roads.
Compliance with insurance requirements helps individuals and businesses avoid legal penalties
and ensures that they fulfill their financial responsibilities.
6. Economic Stability: Insurance contributes to economic stability by spreading risk across a

large pool of policyholders. By pooling premiums and resources, insurance companies can
effectively manage risk and pay out claims, helping to stabilize the economy and prevent
financial crises resulting from large-scale losses.
7. Encourages Investment and Innovation: Insurance encourages investment and innovation

by providing a safety net for entrepreneurs, investors, and businesses. Knowing that they are
protected against potential losses, individuals and businesses are more willing to take risks,
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invest in new ventures, and pursue innovative ideas that drive economic growth and
development.
8. Social Welfare: Certain types of insurance, such as health insurance and life insurance,
contribute to social welfare by improving access to healthcare services, providing financial
support to families in times of need, and promoting overall well-being and quality of life for
individuals and communities.
1.4 WEALTH MANAGEMENT IN INSURANCE:
Insurance in wealth management refers to the use of various insurance products and strategies
to protect and preserve wealth. While wealth management primarily focuses on growing and
managing assets, insurance plays a crucial role in mitigating risks and providing financial
security against unforeseen events. Here are some key aspects of insurance in wealth
management:
1. Risk Management: Insurance helps individuals and families manage risks by transferring
potential financial losses to an insurance company in exchange for payment of premiums.
Common risks include property damage, liability claims, disability, illness, and premature
death.
2. Asset Protection: Certain insurance products, such as homeowners’ insurance, renters

insurance, and automobile insurance, protect physical assets from damage or loss due to
accidents, natural disasters, theft, or other covered events.
3. Health Insurance: Medical expenses can be a significant financial burden, especially in the
event of serious illness or injury. Health insurance provides coverage for medical costs,
including hospitalization, surgeries, medications, and preventive care, helping individuals and
families manage healthcare expenses.
4. Life Insurance: Life insurance provides financial protection to beneficiaries in the event of
the policyholder's death. It can help replace lost income, cover outstanding debts, fund
education expenses, and provide for dependents' future financial needs. Life insurance can be
used as part of estate planning to ensure the smooth transfer of assets to heirs and minimize
estate taxes.
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5. Disability Insurance: Disability insurance replaces a portion of lost income if the
policyholder becomes unable to work due to a disability or illness. It helps maintain financial
stability by providing a source of income to cover living expenses, mortgage payments, and
other financial obligations during a period of disability.
6. Long-Term Care Insurance: Long-term care insurance covers the cost of long-term care
services, such as nursing home care, assisted living facilities, and in-home care, for
individuals who require assistance with activities of daily living due to aging, chronic illness,
or disability. Long-term care insurance helps protect retirement savings and assets from being
depleted by the high cost of long-term care.
7. Liability Insurance: Liability insurance protects individuals from financial losses arising
from legal claims and lawsuits. It covers legal defense costs and damages awarded to third
parties for bodily injury or property damage caused by the policyholder's negligence or
actions.
In wealth management, insurance is integrated into overall financial planning to address risks,
protect assets, and ensure long-term financial security for individuals, families, and
businesses. Financial advisors work with clients to assess their insurance needs, recommend
appropriate coverage options, and develop comprehensive strategies to safeguard wealth and
achieve financial goals.
1.5 TYPES Of INSURANCE
1. Life insurance
2. Non-life insurance
LIFE INSURANCE
• Life insurance is a contract between an insurance policy holder and an insurer or assurer,
where the insurer promises to pay a designated beneficiary a sum of money upon the death of
an insured person.
• it provides financial security to the family in case of the unfortunate death of the policyholder
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THERE ARE SEVERAL REASONS WHY PEOPLE TAKE LIFE INSURANCE POLICY
1. Financial Protection for Loved Ones: One of the primary reasons people buy life insurance
is to ensure that their loved ones are financially protected in the event of their death. Life
insurance provides a death benefit to beneficiaries, which can help replace lost income, pay
off debts, cover living expenses, and maintain the family’s standard of living.
2. Estate Planning and Wealth Transfer: Life insurance can be a valuable tool for estate
planning and wealth transfer. It provides liquidity to cover estate taxes, settlement costs, and
other expenses, ensuring that assets are preserved and distributed according to the
policyholder’s wishes.
3. Income Replacement: For families and dependents who rely on the policyholder’s income
for financial support, life insurance serves as a crucial income replacement tool. The death
benefit can help replace lost earnings and provide financial stability for beneficiaries,
allowing them to maintain their lifestyle and meet ongoing financial obligations.
4. Debt Repayment: Life insurance proceeds can be used to pay off outstanding debts, such as
mortgages, loans, credit card balances, and medical bills, relieving financial burdens for
surviving family members and ensuring that debts do not become a financial burden.
5. Business Continuity and Succession Planning: In business settings, life insurance can be
used to fund buy-sell agreements, key person insurance, and business succession plans. It
provides liquidity to facilitate the smooth transfer of ownership, protect the business from
financial losses due to the death of a key employee or owner, and ensure business continuity.
6. Tax Advantages: Life insurance offers certain tax advantages, including tax-deferred growth
of cash value in permanent life insurance policies and tax-free death benefits for
beneficiaries. Life insurance proceeds are generally not subject to income tax when paid out
to beneficiaries, providing a tax-efficient way to transfer wealth.
7. Cash Value Accumulation: Permanent life insurance policies, such as whole life insurance
and universal life insurance, accumulate cash value over time. The cash value grows on a tax-
deferred basis and can be accessed by the policyholder through loans or withdrawals for
various purposes, such as supplementing retirement income, funding education expenses, or
covering emergency expenses.
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8. Peace of Mind: Lastly, life insurance provides peace of mind to policyholders, knowing that
their loved ones will be financially protected and provided for in the event of their death. It
offers reassurance that survivors will have the financial resources they need to navigate life’s
challenges and achieve their long-term goals
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advantages of life insurance
Life insurance offers several advantages to policyholders and their beneficiaries. Here are
some of the key advantages of having life insurance:
1. Financial Protection for Loved Ones: Perhaps the most significant advantage of life
insurance is the financial protection it provides to the policyholder’s beneficiaries. In the
event of the policyholder’s death, the life insurance death benefit is paid out to the designated
beneficiaries, helping to replace lost income, cover living expenses, pay off debts, fund
education costs, and maintain the family’s standard of living.
2. Estate Planning and Wealth Transfer: Life insurance can be a valuable tool for estate
planning and wealth transfer. It provides liquidity to cover estate taxes, settlement costs, and
other expenses that may arise upon the policyholder’s death, ensuring that assets are
preserved and distributed according to the policyholder’s wishes.
3. Debt Repayment: Life insurance proceeds can be used to pay off outstanding debts, such as
mortgages, loans, credit card balances, and medical bills, relieving financial burdens for
surviving family members and ensuring that debts do not become a financial burden.
4. Income Replacement: For families and dependents who rely on the policyholder’s income
for financial support, life insurance serves as a crucial income replacement tool. The death
benefit can help replace lost earnings and provide financial stability for beneficiaries,
allowing them to maintain their lifestyle and meet ongoing financial obligations.
5. Business Continuity and Succession Planning: In business settings, life insurance can be
used to fund buy-sell agreements, key person insurance, and business succession plans. It
provides liquidity to facilitate the smooth transfer of ownership, protect the business from
financial losses due to the death of a key employee or owner, and ensure business continuity
in the event of a partner’s death.
6. Tax Advantages: Life insurance offers certain tax advantages, including tax-deferred growth
of cash value in permanent life insurance policies and tax-free death benefits for
beneficiaries. Life insurance proceeds are generally not subject to income tax when paid out
to beneficiaries, providing a tax-efficient way to transfer wealth.
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7. Cash Value Accumulation: Permanent life insurance policies, such as whole life insurance
and universal life insurance, accumulate cash value over time. The cash value grows on a tax-
deferred basis and can be accessed by the policyholder through loans or withdrawals for
various purposes, such as supplementing retirement income, funding education expenses, or
covering emergency expenses.
8. Peace of Mind: Lastly, life insurance provides peace of mind to policyholders, knowing that
their loved ones will be financially protected and provided for in the event of their death. It
offers reassurance that survivors will have the financial resources they need to navigate life’s
challenges and achieve their long-term goals.
Claim management in life insurance
Claim management in life insurance refers to the process of handling and processing claims
made by policyholders or beneficiaries after the insured individual’s death. It involves several
steps to ensure that claims are promptly and accurately processed, and benefits are paid out to
the rightful beneficiaries. Here’s an overview of the claim management process in life
insurance:
1. Notification of Death: The first step in the claim management process is the notification of
the insured individual’s death to the life insurance company. This notification is typically
provided by the beneficiaries or the insured’s family members, who are responsible for
informing the insurance company of the death and initiating the claims process.
2. Claim Submission: Once the death has been reported to the insurance company, the
beneficiaries or the insured’s estate representative must submit a formal claim request. This
usually involves completing claim forms provided by the insurer and submitting any required
documentation, such as a death certificate and proof of identity.
3. Claim Verification: Upon receiving the claim request and supporting documentation, the
insurance company verifies the accuracy and validity of the claim. This may involve
confirming the cause and circumstances of death, reviewing the policy terms and coverage
details, and validating the identities of the beneficiaries.
4. Documentation Review: The insurance company carefully reviews all submitted

documentation to ensure that it meets the requirements for processing the claim. This
includes verifying the authenticity of the death certificate, confirming the policyholder’s
identity and coverage details, and validating the beneficiaries’ relationship to the insured.
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5. Beneficiary Verification: As part of the claim verification process, the insurance company
may conduct additional checks to verify the identities of the beneficiaries and their
entitlement to the policy proceeds. This may involve requesting additional documentation,
such as birth certificates or marriage certificates, to establish the beneficiaries’ legal status.
6. Benefit Calculation: Once the claim has been verified and all documentation has been
reviewed, the insurance company calculates the amount of the death benefit payable to the
beneficiaries. The benefit amount is based on the coverage provided by the policy, taking into
account any applicable exclusions, deductions, or policy provisions.
7. Claims Decision: After completing the review and verification process, the insurance
company makes a decision regarding the claim. If the claim is approved, the insurer notifies
the beneficiaries of the benefit amount and the payment process. If the claim is denied, the
insurer provides a written explanation of the reasons for denial.
8. Benefit Payment: Upon approval of the claim, the insurance company disburses the death
benefit to the designated beneficiaries. This may be done through various payment methods,
such as a lump sum payment, periodic payments, or annuity distributions, depending on the
policy terms and beneficiary preferences.
9. Claim Settlement: Once the death benefit has been paid out to the beneficiaries, the claim is
considered settled, and the insurance company closes the claim file. The insurer may provide
additional support and assistance to the beneficiaries as needed, such as guidance on financial
planning or accessing support services.
Overall, effective claim management in life insurance involves thorough verification,

accurate documentation, timely processing, and transparent communication with beneficiaries
to ensure that claims are handled efficiently and benefits are paid out promptly to those
entitled to receive them.
TYPES OF LIFE INSURANCE
1. Term Insurance
2. Whole Life
3. Endowment Life Insurance
4. Ulip
5. Commercial Insurance
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1. TERM INSURANCE :
Term life insurance is a type of life insurance policy that provides coverage for a certain
period of time, or a specified “term” of years. If the insured dies during the time period
specified and the policy is active, or “in force,” then a death benefit will be paid.
ADVANTAGES OF TERM INSURANCE
1. Cost-Effective: Term insurance tends to be more affordable compared to other types of life
insurance, such as whole life or universal life insurance.
2. Simple and Straightforward: Term insurance policies are relatively easy to understand. They
provide straightforward death benefit coverage without any cash value component.
3. Flexibility: Many term insurance policies offer flexibility in terms of coverage duration and
coverage amount. You can typically choose a term that aligns with your financial needs and
obligations.
4. Pure Protection: Term insurance primarily focuses on providing financial protection to your
beneficiaries in case of your death during the policy term. It serves its purpose of income
replacement for dependents.
5. Convertibility: Some term insurance policies offer the option to convert to permanent life
insurance without the need for a medical exam, providing flexibility if your needs change in
the future.
Disadvantages of term insurance
1. Temporary Coverage: Term insurance provides coverage for a specific period only. If you
outlive the term of the policy, you won’t receive any benefits unless you renew the policy,
often at a higher premium rate.
2. No Cash Value: Unlike permanent life insurance policies, term insurance policies do not
accumulate cash value over time. This means you won’t receive any returns on the premiums
you’ve paid if you outlive the policy term.
3. Premium Increases: Premiums for term insurance policies may increase substantially when
you renew the policy, especially if you’ve experienced changes in health or age. This can
make long-term coverage more expensive.
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4. Limited Features: Term insurance lacks the investment and savings components found in
permanent life insurance policies. If you’re looking for a policy that builds cash value over
time, term insurance may not be the best option.
5. Not Ideal for Estate Planning: Term insurance may not be suitable for estate planning
purposes or leaving a legacy since it doesn’t provide the lifelong coverage offered by
permanent life insurance policies.
Before purchasing any insurance policy, it’s essential to assess your financial needs, consider
your long-term goals, and compare different types of insurance to determine which option
best fits your circumstances.
2. Whole Life
It provides permanent coverage, guaranteed premiums that don’t increase, has guaranteed
cash values, a guaranteed death benefit
ADVANTAGES:
1. Lifetime Coverage: Whole life insurance provides coverage for your entire lifetime,
ensuring that your beneficiaries will receive a death benefit whenever you pass away, as long
as premiums are paid.
2. Cash Value Accumulation: Whole life insurance policies accumulate cash value over time,
which grows tax-deferred. You can borrow against the cash value or use it to pay premiums,
supplement retirement income, or cover other financial needs.
3. Guaranteed Death Benefit: The death benefit of a whole life insurance policy is guaranteed,
meaning that your beneficiaries will receive a predetermined amount upon your death,
regardless of how long you live or changes in the economy.
4. Fixed Premiums: Premiums for whole life insurance policies are typically fixed and
guaranteed not to increase throughout the life of the policy, providing predictability and
stability in financial planning.
5. Dividend Payments: Some whole life insurance policies are eligible to receive dividends
from the insurance company’s profits. These dividends can be used to increase the cash value,
purchase additional coverage, or reduce premiums.
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DISADVANTAGES:
1. Higher Premiums: Whole life insurance premiums are generally higher compared to term
life insurance premiums for the same coverage amount. This can make whole life insurance
less affordable, especially for younger individuals.
2. Limited Flexibility: Whole life insurance policies offer less flexibility compared to term life
insurance. You may have limited options to adjust coverage amounts or premium payment
schedules once the policy is in force.
3. Complexities: Whole life insurance policies can be complex, with various features and riders
that may be difficult to understand for some individuals. It’s essential to carefully review the
policy terms and consult with a financial advisor before purchasing.
4. Opportunity Cost: The cash value accumulation in a whole life insurance policy may offer
lower returns compared to other investment options, such as stocks, bonds, or mutual funds.
You may miss out on potentially higher investment gains by allocating funds to a whole life
insurance policy.
5. Surrender Charges: If you decide to surrender or cancel your whole life insurance policy
early, you may be subject to surrender charges and fees, which can reduce the cash value or
even result in a loss, particularly in the policy’s early years.
Before purchasing a whole life insurance policy, it’s essential to consider your financial
goals, risk tolerance, and overall insurance needs. Evaluate whether the benefits of whole life
insurance align with your long-term objectives and compare it with other insurance and
investment options available to you. Consulting with a financial advisor can help you make
an informed decision.
3. Endowment Life Insurance
Endowment life insurance is a type of life insurance policy that combines protection with
savings. It provides coverage for a specified period (usually until the insured reaches a certain
age or for a fixed term) and pays out a lump sum either upon the death of the insured during
the policy term or upon the policy’s maturity if the insured survives the term. Here are the
advantages and disadvantages of endowment life insurance:
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• Advantages:
1. Death Benefit: Endowment life insurance provides a death benefit to beneficiaries if the
insured passes away during the policy term. This provides financial protection to loved ones
and can help cover expenses such as funeral costs, debts, and ongoing living expenses.
2. Savings Component: Endowment policies accumulate cash value over time, which grows
tax-deferred. The cash value can be accessed during the policy term through policy loans or
withdrawals, providing a source of funds for emergencies, education expenses, or other
financial needs.
3. Maturity Benefit: If the insured survives the policy term, an endowment policy pays out a
lump sum (the maturity benefit) at the end of the term. This can serve as a form of savings or
retirement income, providing a financial cushion later in life.
4. Guaranteed Returns: Endowment policies typically offer guaranteed returns on the cash
value component, providing stability and predictability in investment growth. This can be
attractive for individuals seeking a conservative savings option with guaranteed returns.
5. Discipline and Forced Savings: Endowment policies require regular premium payments,
which can help policyholders develop disciplined savings habits. The structure of the policy
encourages long-term savings and financial planning.
• Disadvantages:
1. Higher Premiums: Endowment life insurance premiums are often higher compared to term
life insurance premiums for the same coverage amount. This can make endowment policies
less affordable, especially for individuals seeking primarily protection-focused insurance.
2. Lower Returns: While endowment policies offer guaranteed returns, the investment growth
may be lower compared to other investment options such as stocks or mutual funds.
Policyholders may miss out on potentially higher investment gains by allocating funds to an
endowment policy.
3. Limited Flexibility: Endowment policies offer less flexibility compared to other types of
insurance or investment vehicles. Policyholders may have limited options to adjust coverage
amounts, premium payment schedules, or access cash value during the policy term.
4. Opportunity Cost: The returns on the cash value component of endowment policies may not
keep pace with inflation or provide the same level of growth as alternative investment
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options. Policyholders may sacrifice potential higher returns by investing in an endowment
policy.
5. Surrender Charges: If policyholders decide to surrender or cancel their endowment policy

early, they may be subject to surrender charges and fees, which can reduce the cash value or
even result in a loss.
Before purchasing an endowment life insurance policy, it’s essential to carefully consider
your financial goals, risk tolerance, and overall insurance and investment needs. Compare the
benefits and drawbacks of endowment insurance with other insurance and investment options
available to you, and consult with a financial advisor to make an informed decision.
4. ULIP(UNIT LINKED INSURANCE PLAN,)

ULIP, or Unit Linked Insurance Plan, is a type of life insurance product that combines
insurance coverage with investment options. Here are the advantages and disadvantages of
ULIPs:
• ADVANTAGES:
1. Dual Benefit: ULIPs offer both insurance coverage and investment opportunities in a single
product. This allows policyholders to simultaneously protect their families with life insurance
and invest to achieve financial goals.
2. Flexibility: ULIPs provide flexibility in investment choices, allowing policyholders to select

from a range of investment funds based on their risk tolerance, investment objectives, and
market outlook. Common fund options include equity funds, debt funds, and balanced funds.
3. Transparency: ULIPs offer transparency regarding investment performance, charges, and

policy details. Policyholders can easily track the value of their investments and understand
how charges impact their returns.
4. Switching Options: ULIPs typically allow policyholders to switch between different

investment funds based on changing market conditions, investment objectives, or risk
preferences. This flexibility enables policyholders to optimize their investment strategy over
time.
5. Tax Benefits: ULIPs offer tax benefits under the Income Tax Act, including tax deductions
on premiums paid and tax-free withdrawals and maturity proceeds, subject to certain
conditions.
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• DISADVANTAGES:
1. Cost Structure: ULIPs often have higher charges compared to other investment options,
including premium allocation charges, policy administration charges, fund management
charges, and mortality charges. These charges can significantly reduce investment returns,
especially in the early years of the policy.
2. Complexity: ULIPs can be complex products, with varying fee structures, fund options, and
policy features. Understanding the terms and conditions, charges, and investment risks
associated with ULIPs may require careful analysis and expertise.
3. Market Risk: Since ULIPs invest in financial markets, the performance of the underlying
investment funds is subject to market fluctuations and volatility. Policyholders may
experience losses if the chosen funds perform poorly or if there is a downturn in the market.
4. Lock-In Period: ULIPs typically have a lock-in period during which policyholders cannot
withdraw or surrender their investments without incurring penalties. This lock-in period can
range from five to ten years, limiting liquidity and flexibility.
5. Surrender Charges: If policyholders decide to surrender or exit the ULIP before the end of
the lock-in period, they may be subject to surrender charges, which can significantly reduce
the value of their investments.
Before investing in a ULIP, it’s essential to carefully consider your investment objectives,
risk tolerance, and financial goals. Compare the features, charges, and performance of
different ULIPs, and ensure that the product aligns with your investment strategy and
insurance needs. Consulting with a financial advisor can help you make an informed decision
and maximize the benefits of ULIPs while minimizing the drawbacks.
NON-LIFE INSURANCE :
Non-life insurance, also known as general insurance, is a type of insurance that provides
coverage for risks other than those related to human life
Non-life insurance policies typically cover property, liability, and health-related risks
• Advantages:
1. Protection Against Losses: Non-life insurance provides coverage for various risks associated
with property, vehicles, businesses, and liabilities. It helps individuals and businesses
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mitigate financial losses resulting from events such as accidents, natural disasters, theft, fire,
and liability claims.
2. Legal Compliance: Certain types of non-life insurance, such as auto insurance, homeowners
insurance, and liability insurance, may be legally required in many jurisdictions. Purchasing
the necessary insurance coverage ensures compliance with legal requirements and helps
avoid potential fines or legal penalties.
3. Financial Stability: Non-life insurance policies provide policyholders with financial stability
by transferring the risk of potential losses to the insurance company. In the event of covered
incidents or claims, the insurance company compensates the policyholder, allowing
individuals and businesses to recover and continue their operations without suffering
significant financial hardship.
4. Peace of Mind: Knowing that they are adequately protected against potential risks and
liabilities can provide peace of mind to individuals, families, and businesses. Having non-life
insurance coverage in place allows policyholders to focus on their daily activities and long-
term goals without constantly worrying about unforeseen events or financial losses.
5. Customizable Coverage: Non-life insurance policies can be tailored to meet the specific
needs and preferences of policyholders. Insurance providers offer a range of coverage
options, endorsements, and policy limits, allowing individuals and businesses to customize
their insurance programs to suit their unique requirements.
• Disadvantages:
1. Cost: Non-life insurance premiums can be a significant expense for individuals and
businesses, particularly for comprehensive coverage or high-risk activities. The cost of
insurance coverage depends on various factors, including the type of coverage, coverage
limits, deductible amounts, claims history, and risk factors.
2. Coverage Limitations: Non-life insurance policies may have limitations, exclusions, and
restrictions that can affect the scope of coverage provided. Policyholders need to carefully
review their insurance policies, understand the terms and conditions, and identify any gaps in
coverage that need to be addressed through additional endorsements or supplemental
insurance.
24
3. Claims Process: The claims process for non-life insurance can be complex and time-
consuming, especially for large or complicated claims. Policyholders may encounter delays,
disputes, or challenges when filing claims, negotiating settlements, or coordinating with
insurance adjusters, which can disrupt their daily activities and prolong the recovery process.
4. Premium Increases: Insurance premiums for non-life insurance policies are subject to
adjustment based on various factors, including claims experience, industry trends, regulatory
changes, and macroeconomic conditions. Policyholders may experience premium increases at
renewal time, even if they have not filed any claims, which can impact their budget and
financial planning.
5. Overlapping Coverage: Individuals and businesses may unintentionally purchase overlapping

or redundant insurance coverage from multiple providers, resulting in unnecessary expenses
and inefficiencies. It’s essential for policyholders to conduct a thorough review of their
insurance needs, consolidate coverage where possible, and avoid duplicative policies to
optimize cost-effectiveness.
Overall, while non-life insurance provides essential protection and risk management benefits
for individuals and businesses, it’s essential to carefully weigh the advantages and
disadvantages and make informed decisions when selecting insurance coverage. Working
with knowledgeable insurance agents or brokers and periodically reviewing insurance
programs can help policyholders optimize coverage, manage costs, and mitigate risks
effectively.
TYPES OF NON-LIFE INSURANCE
25
TYPES
commercial
insurance
motor
isnrunce
health
home
insurnce marine
insurance
insurance
COMMERCIAL INSURANCE
Commercial insurance refers to insurance coverage designed to protect businesses,

organizations, and professionals from financial losses resulting from various risks and
liabilities associated with their operations. Here are the advantages and disadvantages of
commercial insurance:
• Advantages:
1. Protection Against Losses: Commercial insurance provides coverage for various risks that
businesses may face, including property damage, liability claims, business interruption, theft,
and employee-related risks. Having adequate insurance coverage can help mitigate financial
losses and protect the assets and interests of the business.
2. Legal Compliance: In many jurisdictions, certain types of commercial insurance, such as

workers’ compensation insurance and liability insurance, are legally required for businesses
to operate. Purchasing the necessary insurance coverage ensures compliance with legal
requirements and helps avoid potential fines or legal penalties.
3. Financial Stability: Commercial insurance policies provide businesses with financial stability
by transferring the risk of potential losses to the insurance company. In the event of covered
incidents or claims, the insurance company compensates the policyholder, allowing the
business to recover and continue operations without suffering significant financial hardship.
4. Peace of Mind: Knowing that the business is adequately protected against potential risks and
liabilities can provide peace of mind to business owners, investors, and stakeholders. Having
26
insurance coverage in place allows businesses to focus on their core operations and growth
initiatives without constantly worrying about unforeseen events or liabilities.
5. Customizable Coverage: Commercial insurance policies can be tailored to meet the specific
needs and risks of different types of businesses and industries. Insurance providers offer a
range of coverage options, endorsements, and policy limits, allowing businesses to customize
their insurance programs to suit their unique requirements.
• Disadvantages:
1. Cost: Commercial insurance premiums can be a significant expense for businesses,

particularly for small and medium-sized enterprises (SMEs) with limited financial resources.
The cost of insurance coverage depends on various factors, including the type of business,
industry risks, coverage limits, deductible amounts, and claims history.
2. Coverage Limitations: Commercial insurance policies may have limitations, exclusions, and
restrictions that can affect the scope of coverage provided. It’s essential for businesses to
carefully review their insurance policies, understand the terms and conditions, and identify
any gaps in coverage that need to be addressed through additional endorsements or
supplemental insurance.
3. Claims Process: The claims process for commercial insurance can be complex and time-
consuming, especially for large or complex claims. Businesses may encounter delays,
insurance adjusters, which can disrupt operations and prolong the recovery process.
4. Premium Increases: Insurance premiums for commercial insurance policies are subject to
changes, and macroeconomic conditions. Businesses may experience premium increases at
renewal time, even if they have not filed any claims, which can impact their operating costs
and profitability.
5. Overlapping Coverage: Businesses may unintentionally purchase overlapping or redundant

insurance coverage from multiple providers, resulting in unnecessary expenses and
inefficiencies. It’s essential for businesses to conduct a thorough review of their insurance
needs, consolidate coverage where possible, and avoid duplicative policies to optimize cost-
effectiveness.
27
Overall, while commercial insurance provides essential protection and risk management
benefits for businesses, it’s essential to carefully weigh the advantages and disadvantages and
make informed decisions when selecting insurance coverage. Working with knowledgeable
insurance agents or brokers and periodically reviewing insurance programs can help
businesses optimize coverage, manage costs, and mitigate risks effectively.
MOTOR INSURANCE
Motor insurance, also known as auto insurance or car insurance, provides coverage for
vehicles against financial losses resulting from accidents, theft, damage, and liability claims.
Here are the advantages and disadvantages of motor insurance:
• Advantages:
1. Legal Compliance: In many countries, motor insurance is mandatory by law. Having motor
insurance ensures compliance with legal requirements for vehicle owners to operate their
vehicles on public roads legally.
2. Financial Protection: Motor insurance provides financial protection against various risks
associated with driving, including accidents, theft, vandalism, and natural disasters. It helps
cover repair or replacement costs for damaged vehicles and can also provide compensation
for medical expenses and legal liabilities resulting from accidents.
3. Peace of Mind: Knowing that they have insurance coverage in place can provide peace of
mind to vehicle owners. Motor insurance protects against unexpected events and financial
losses, allowing policyholders to drive with confidence and focus on their daily activities
without worrying about potential risks.
4. Third-Party Liability Coverage: Motor insurance typically includes third-party liability

coverage, which protects policyholders against legal liabilities for bodily injury or property
damage caused to others in accidents for which they are deemed responsible. This coverage
helps protect policyholders from costly lawsuits and financial obligations.
5. Optional Coverage Options: Motor insurance policies often offer optional coverage options
that allow policyholders to customize their insurance protection based on their individual
needs and preferences. Optional coverages may include comprehensive coverage, collision
coverage, roadside assistance, and rental car reimbursement.
• Disadvantages:
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1. Cost: Motor insurance premiums can be a significant expense for vehicle owners, particularly
for comprehensive coverage or high-risk drivers. The cost of insurance coverage depends on
various factors, including the type of coverage, coverage limits, deductible amounts, claims
history, vehicle type, and driver profile.
2. Coverage Limitations: Motor insurance policies may have limitations, exclusions, and
insurance.
3. Claims Process: The claims process for motor insurance can be complex and time-
consuming, especially for large or complicated claims. Policyholders may encounter delays,
insurance adjusters, which can be stressful and frustrating.
4. Premium Increases: Insurance premiums for motor insurance policies are subject to
changes, and individual driving behavior. Policyholders may experience premium increases at
renewal time, even if they have not filed any claims, which can impact their budget and
financial planning.
5. Underinsurance: Some vehicle owners may opt for minimum coverage limits or choose not to
purchase optional coverages to save money on premiums. However, this can leave them
underinsured and vulnerable to significant financial losses in the event of accidents, theft, or
other covered incidents.
Overall, while motor insurance provides essential protection and risk management benefits
for vehicle owners, it’s essential to carefully weigh the advantages and disadvantages and
make informed decisions when selecting insurance coverage. Working with knowledgeable
insurance agents or brokers and periodically reviewing insurance policies can help
policyholders optimize coverage, manage costs, and mitigate risks effectively.
29
HEALTH INSURANCE
Health insurance is a type of insurance coverage that provides financial protection against
medical expenses incurred due to illness, injury, or other health-related issues. Here are the
advantages and disadvantages of health insurance:
• Advantages:
1. Financial Protection: Health insurance provides financial protection against unexpected

medical expenses, including hospitalization, surgery, doctor’s visits, prescription medications,
and diagnostic tests. Having health insurance helps individuals and families manage
healthcare costs and avoid financial hardship due to medical bills.
2. Access to Healthcare: Health insurance enables individuals to access essential healthcare

services, including preventive care, routine check-ups, screenings, vaccinations, and
treatment for acute and chronic conditions. Having insurance coverage encourages people to
seek timely medical attention and preventive care, leading to better health outcomes and
improved quality of life.
3. Comprehensive Coverage: Health insurance policies typically offer comprehensive coverage

for a wide range of medical services and treatments, including hospitalization, outpatient
care, emergency services, maternity care, mental health services, and prescription drugs.
Comprehensive coverage ensures that policyholders have access to the care they need without
worrying about financial barriers.
4. Network of Providers: Many health insurance plans have networks of healthcare providers,
including hospitals, physicians, specialists, clinics, and pharmacies. Policyholders can access
discounted rates and preferential treatment when receiving care from in-network providers,
helping them save money on healthcare expenses.
5. Preventive Care Benefits: Health insurance plans often include coverage for preventive care
services, such as annual check-ups, screenings, immunizations, and wellness programs.
Preventive care helps identify health issues early, promote healthy behaviors, and prevent the
onset of chronic diseases, ultimately reducing healthcare costs and improving overall health
outcomes.
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• Disadvantages:
1. Cost: Health insurance premiums can be a significant expense for individuals and families,
particularly for comprehensive coverage or plans with low deductibles and copayments.
Rising healthcare costs and premiums can strain household budgets and make health
insurance less affordable for some people.
2. Coverage Limitations: Health insurance policies may have limitations, exclusions, and
insurance.
3. Deductibles and Copayments: Many health insurance plans require policyholders to pay
deductibles, copayments, and coinsurance for covered services. These out-of-pocket costs can
add up quickly, especially for individuals with chronic conditions or high medical needs,
leading to financial strain and barriers to accessing care.
4. Network Restrictions: Some health insurance plans have network restrictions that require
policyholders to receive care from in-network providers to be eligible for coverage. Seeking
care outside the network may result in higher out-of-pocket costs or limited coverage, which
can be inconvenient for individuals who prefer or require care from out-of-network providers.
5. Administrative Burden: Dealing with health insurance paperwork, claims processing, and
navigating the complexities of the healthcare system can be time-consuming and frustrating
for policyholders. Administrative tasks can detract from the overall healthcare experience and
lead to confusion and dissatisfaction with insurance coverage.
Overall, while health insurance provides essential financial protection and access to
healthcare services, it’s essential to carefully weigh the advantages and disadvantages and
select a plan that meets your individual needs and preferences. Working with knowledgeable
insurance agents or brokers and regularly reviewing insurance options can help individuals
and families make informed decisions about their health insurance coverage.
Home insurance
Home insurance, also known as homeowners insurance or property insurance, provides

financial protection for your home and belongings against various risks, such as fire, theft,
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vandalism, natural disasters, and liability claims. Here are the advantages and disadvantages
of home insurance:
• Advantages:
1. Property Protection: Home insurance provides coverage for your home and personal
belongings against damage or loss caused by covered perils, such as fire, theft, vandalism,
windstorms, and hail. This protection ensures that you can repair or replace your home and
possessions without suffering significant financial hardship.
2. Liability Coverage: Home insurance typically includes liability coverage, which protects you
against legal claims and lawsuits for bodily injury or property damage that you or your family
members accidentally cause to others. Liability coverage can help cover legal fees,
settlements, and judgments, providing financial protection and peace of mind.
3. Additional Living Expenses: Many home insurance policies include coverage for additional
living expenses (ALE) if your home becomes uninhabitable due to a covered loss. ALE
coverage helps pay for temporary housing, food, and other expenses while your home is
being repaired or rebuilt, ensuring that you can maintain your standard of living during a
difficult time.
4. Peace of Mind: Knowing that you have insurance coverage in place can provide peace of
mind to homeowners. Home insurance protects against unexpected events and provides a
safety net for policyholders, allowing them to feel secure in their homes and focus on their
daily activities without worrying about potential risks.
5. Mortgage Requirement: If you have a mortgage on your home, your lender will likely require
you to have home insurance. Mortgage lenders want to protect their investment in your
property and ensure that it is adequately covered against potential risks. Having home
insurance allows you to comply with your lender’s requirements and protect your financial
interests.
• Disadvantages:
1. Cost: Home insurance premiums can be a significant expense for homeowners, particularly
for comprehensive coverage or homes in high-risk areas. The cost of insurance coverage
depends on various factors, including the value of your home, the coverage limits, deductible
amounts, claims history, and risk factors such as location and construction materials.
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2. Coverage Limitations: Home insurance policies may have limitations, exclusions, and
insurance.
3. Deductibles and Copayments: Many home insurance policies require policyholders to pay
deductibles and copayments for covered claims. These out-of-pocket costs can add up
quickly, especially for large or frequent claims, leading to financial strain and barriers to
accessing coverage.
4. Claims Process: The claims process for home insurance can be complex and time-consuming,
especially for large or complicated claims. Policyholders may encounter delays, disputes, or
challenges when filing claims, negotiating settlements, or coordinating with insurance
adjusters, which can be stressful and frustrating.
5. Rate Increases: Insurance premiums for home insurance policies are subject to adjustment
based on various factors, including claims experience, industry trends, regulatory changes,
and individual risk factors. Policyholders may experience rate increases at renewal time, even
if they have not filed any claims, which can impact their budget and financial planning.
Overall, while home insurance provides essential financial protection and peace of mind for
homeowners, it’s essential to carefully weigh the advantages and disadvantages and select a
policy that meets your individual needs and preferences. Working with knowledgeable
insurance agents or brokers and regularly reviewing insurance options can help homeowners
optimize coverage, manage costs, and mitigate risks effectively.
Marine insurance:
• Advantages:
1. Financial Protection: Marine insurance provides financial protection for shipowners, cargo
owners, and other stakeholders against losses or damages incurred during marine
transportation. It covers risks such as damage to vessels, theft, piracy, collisions, natural
disasters, and liability claims, helping mitigate financial losses and ensure business
continuity.
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2. Comprehensive Coverage: Marine insurance policies offer comprehensive coverage for a
wide range of marine-related risks and liabilities, including hull and machinery insurance,
cargo insurance, freight insurance, liability insurance, and other specialized coverages. This
ensures that policyholders have adequate protection for their marine assets and operations.
3. Risk Management: Marine insurance helps mitigate risks associated with marine
transportation by providing a mechanism for transferring and managing risk. Shipowners and
cargo owners can purchase insurance coverage tailored to their specific needs and risk
exposures, allowing them to protect their investments and navigate the uncertainties of the
marine industry more effectively.
4. Legal Compliance: Marine insurance may be required by law or regulations, particularly for
certain types of vessels or cargo shipments. Complying with legal requirements ensures that
shipowners and cargo owners can operate their vessels or conduct maritime trade legally and
avoid potential fines or legal penalties.
5. Global Coverage: Marine insurance provides coverage for marine risks worldwide, allowing
shipowners and cargo owners to conduct international trade and transportation with
confidence. Insurance policies can be tailored to cover voyages to specific regions or
countries, ensuring that policyholders are protected wherever their vessels or cargo may
travel.
• Disadvantages:
1. Cost: Marine insurance premiums can be a significant expense for shipowners, cargo owners,
and other stakeholders, particularly for vessels or cargo with high values or in high-risk areas.
The cost of insurance coverage depends on various factors, including the type of coverage,
insured value, deductible amounts, claims history, and risk factors such as vessel age,
condition, and route.
2. Coverage Limitations: Marine insurance policies may have limitations, exclusions, and
34
insurance.
3. Claims Process: The claims process for marine insurance can be complex and time-
consuming, especially for large or complicated claims involving multiple parties,
jurisdictions, or types of coverage. Policyholders may encounter delays, disputes, or
challenges when filing claims, negotiating settlements, or coordinating with insurance
adjusters, which can be stressful and disruptive to business operations.
4. Market Conditions: The availability and cost of marine insurance coverage can be influenced
by market conditions, including supply and demand dynamics, underwriting capacity,
insurance market cycles, and regulatory changes. Policyholders may experience fluctuations
in premiums, coverage terms, and availability of insurance options, which can impact their
financial planning and risk management strategies.
5. Underwriting Requirements: Marine insurance underwriters may impose certain requirements

or conditions on policyholders to mitigate risk and ensure the insurability of vessels or cargo.
This may include implementing safety measures, conducting inspections, complying with
regulatory standards, or providing detailed information about the insured assets. Failure to
meet underwriting requirements may affect the availability or cost of insurance coverage.
Overall, while marine insurance provides essential financial protection and risk management
benefits for stakeholders involved in marine transportation, it’s essential to carefully weigh
the advantages and disadvantages and select a policy that meets your individual needs and
preferences. Working with knowledgeable insurance brokers or maritime experts can help
policyholders navigate the complexities of marine insurance and optimize coverage to
mitigate risks effectively.
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CHAPTER 2 RESEARCH AND METHODOLOGY
2.1 What Is Research Methodology
Research methodology is a way to solve the research problem systematically. It may be

understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. The researcher must know not only the research
methods/techniques but also the methodology. Researchers not only need to know how to
develop certain indices or tests, how to calculate the mean, the mode, the median or the
standard deviation or chi-square, how to apply particular research techniques, but they also
need to know which of these methods or techniques, are relevant and which are not, and what
would they mean and indicate and why. Researchers also need to understand the assumptions
underlying various techniques and they need to know the criteria by which they can decide
that certain techniques and procedures will be applicable to certain problems and others will
not. All this means that it is necessary for the researcher to design his methodology for his
problem as the same may differ from problem to problem. For example, anscope36ectt, who
designs a building, has to consciously evaluate the basis of his decisions, i.e., he has to
evaluate why and on what basis he selects particular size, number and location of doors,
windows and ventilators, uses particular materials and not others and the like. Similarly, in
research the scientist has to expose the research decisions to evaluation before they are
implemented. He has to specify very clearly and precisely what decisions he selects and why
he selects them so that they can be evaluated by others also. According to Clifford Woody,
research comprises defining and redefining problems, formulating hypothesis or suggested
solutions, collecting, organizing and evaluating data, making deductions and reaching
conclusion and further testing the conclusion whether they fit into formulating hypothesis.
Moreover, research methodology describes the methods used to collect the data and analyzed
it by following the research design, sampling technique, measurement and instrumentation,
data collection, conceptual framework and data analysis. It also comprised of a number of
alternative approaches and inter-related and frequently overlapping procedures and practices.
Since there are many aspects of research methodology, the line of action has to be chosen
from a variety of alternative. The choice of suitable method can be arrived at through
assessment of objectives and comparison of various alternatives. Thus for any systematic
research study, a scientific approach is necessary. It is therefore, essential to conceive and
plan a systematic design to arrive at an appropriate conclusion. All the business undertakings
36
are operating in the world of uncertainty, but research design, more than any other procedure,
can minimize the degree of uncertainty to a greater
2.2 Objective of the study
This study has been conducted with a variety of important objectives in mind. The following
provides us with the chief objectives that have tried to achieve through the study. The extent
to which these objectives have been met could judged from the conclusions and suggestions,
which appear in the later of this study. Chief objective
• To study about overview of insurance awareness
• To learn about Life insurance awareness among people and it’s type
• To learn about general insurance awareness among people and it’s type
• To know about growths in insurance sector in India
• To find out level of awareness of insurance among the people
37
2.4 SCOPE OF STUDY
• Key areas to explore:
• Awareness levels:
• Basic understanding of different types of insurance (health, life, property, vehicle, etc.)
• Knowledge of specific insurance products and their benefits
• Comprehension of key terms and concepts (premiums, deductibles, exclusions)
• Comparison of different insurance providers and plans
• Attitudes and perceptions:
• Importance of having insurance
• Perceived value of insurance products
• Trust in insurance companies and agents
• Concerns and misconceptions about insurance
• Factors influencing insurance purchase decisions (cost, coverage, brand reputation, etc.)
• Sources of information:
• Primary sources (family, friends, school, work)
• Secondary sources (media, online resources, marketing materials)
• Effectiveness of different information channels
• Trustworthiness of various information sources
• Behavioral aspects:
• Insurance ownership rates among youth
• Types of insurance typically held by youth
• Factors influencing insurance purchase behavior (financial literacy, risk perception, life stage)
• Barriers to insurance adoption among youth (cost, lack of understanding, complexity)
• Comparative analysis:
38
• Differences in awareness, attitudes, and behavior across various demographic groups (age,
gender, income, education)
• Comparison with previous studies or other populations
• Global vs. regional trends
2.5 Limitation of study
Data limitations:
• Self-reporting bias: Individuals might overestimate their knowledge or underreport their

misconceptions.
• Limited access to data: It may be challenging to access data on specific demographics,

especially if dealing with sensitive information like income.
• Difficulties capturing attitudes and perceptions: Surveys and interviews might not fully
capture nuanced views and motivations.
Methodological limitations:
• Representativeness: Studies may not capture the full diversity of the youth population,
leading to biased results.
• Cross-sectional design: It's difficult to establish causal relationships between factors and
insurance awareness without longitudinal data.
• Generalizability: Findings may not be generalizable to different contexts or populations.
Conceptual limitations:
• Varying definitions of "awareness": What constitutes "awareness" can differ based on the
study's objectives.
• Dynamic nature of insurance: The industry and products are constantly evolving, making it
challenging to capture current understanding.
• Individualistic vs. systemic factors: Studies may struggle to balance individual characteristics
with broader social and economic influences on insurance awareness.
39
Additional limitations:
• Ethical considerations: Data collection and storage must comply with ethical guidelines and
privacy regulations.
• Cost and resource constraints: Budgetary limitations may restrict the scope and depth of the
research.
• Time limitations: Conducting comprehensive research can be time-consuming, potentially

restricting the scope of the study.
• Strategies to address limitations:
• Triangulate data: Use multiple data sources (surveys, interviews, focus groups) to improve
accuracy and comprehensiveness.
• Pilot studies: Conduct small-scale studies to refine research methods and instruments before
full implementation.
• Consider longitudinal designs: Track participants over time to understand how awareness
evolves.
• Engage stakeholders: Collaborate with researchers, educators, and policymakers to ensure the
study's relevance and impact.
By acknowledging and addressing these limitations, researchers can conduct more robust and
informative studies on insurance awareness among youth, ultimately contributing to better
financial education and more informed insurance decisions.
2.6 Significance of study
Financial education and empowerment:
• Early exposure to financial concepts: Understanding insurance concepts at a young age

fosters financial literacy and empowers youth to make informed decisions about their future.
• Building a strong financial foundation: Early insurance ownership can lead to better
financial stability and protection against potential risks, setting individuals up for success in
the long run.
• Positive impact on future generations: Increasing financial literacy among youth can create
a ripple effect, impacting future generations and contributing to overall financial well-being.
40
2.7 misconceptions:
• Debunking myths and misconceptions: Many young people have limited knowledge or
inaccurate perceptions about insurance. Studies can identify these gaps and develop strategies
to address them, promoting informed decision-making.
• Understanding risk perception: Young people often underestimate their risks. Studies can
help understand their risk perception and tailor insurance education accordingly.
• Improving product understanding: Studies can assess youth's understanding of specific

insurance products and their benefits, informing the development of more relevant and
appealing offerings.
• Developing targeted interventions and promoting access
• Designing effective communication strategies: Understanding youth's information

preferences and communication channels helps develop targeted education campaigns that
resonate with them.
• Tailoring products and services: Studies can inform the development of insurance products
and services that cater to the specific needs and preferences of young people, improving
accessibility and affordability.
• Addressing barriers to adoption: Studies can identify factors hindering insurance adoption
among youth (e.g., cost, complexity) and inform strategies to overcome these barriers.
Policy and market insights:
• Informing regulatory decisions: Understanding insurance awareness and needs among

youth can guide policymakers in developing regulations that promote financial inclusion and
responsible insurance practices.
• Market research and product development: Insights from these studies can inform
insurance companies about the evolving needs and preferences of young consumers, enabling
them to develop more relevant and competitive products.
• Promoting financial inclusion: Studies can help identify underserved segments within the
youth population and inform strategies to improve their access to insurance, contributing to
broader financial inclusion goals.
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Overall, studying insurance awareness among youth is crucial for promoting financial
literacy, addressing knowledge gaps, developing targeted interventions, and informing policy
and market decisions. By understanding the unique needs and perspectives of young people,
we can pave the way for a more financially secure and informed future generation.
2.8. SAMPLE SIZE :
Simple Size
Considering all of the constraints, the study’s sample size was set at 50.
Sample unit:
I collected data from my classmates and another student from other colleges
Sampling techniques :
Stratified convenient sampling. All of those who have insurance consider the study was based
on the idea that respondents will provide honest and fair replies in a pragmatic and non-
biased manner
Sample description :
To better understand the nature and features of the various respondents in this study, data was
gathered and evaluated base on their socioeconomic background, which included information
such as education, age, education study. This description reveals that the respondents in this
survey come from variety of background, broadening the study breadth.
2.9.Method Of Data Collection :
Primary data :
Primary data are information collected by a researcher specifically for a research assignment
in other word primary data information that a company must gather because no one has
compiled and published the information in a forum accessible to the public. Companies
generally take the time and allocate the resources required to gather primary data only when a
question, issue or problem presents itself that is sufficiently important or unique that it
warrants the expenditure necessary to gather the primary data. Primary data are original in
nature and directly related to the issue or problem and current data. Primary data are the data
which the researcher collects through various methods like interviews, surveys,
questionnaires etc. The primary data have own advantages and disadvantages.
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QUESTIONNAIRE:
This type of data collection is very popular, especially for large inquiries. In our study, we
asked respondents to answer 17 straightforward questions with accurate information
RESPONDENTS :
Respondents aid in the development of a more accurate understanding of our research.
Advantages of primary data:
• The primary data are original and relevant to the topic of the research study so the degree of
accuracy is very high.
• Primary data is that it can be collected in a number of ways interviews, telephone surveys,
focus groups, etc. It can be also collected across national borders through emails and posts. It
can include a large population and wide geographical coverage.
• Moreover, primary data is current and it can better give a realistic view to the researcher
about the topic under consideration
• Reliability of primary data is very high because these are collected by the concerned and
reliable party.
Disadvantages of primary data:
• For collection of primary data where interview is to be conducted the coverage is limited and
for wider coverage a more number of researchers are required.
• A lot of time and efforts are required for data collection. By the time the data collected,
analys and report is ready the problem of the research becomes very serious or out dated. So
the purpose of the research may be defeated .
• It has design problems like how to design the surveys. The questions must be simple to
understand and respond.
• Some respondents do not give timely responses. Sometimes, the respondents may give fake,
socially acceptable and sweet answers and try to cover up the realities. With more people,
time and efforts involvement the cost of the data collection goes high. The importance of the
research may go down.
• In some primary data collection methods there is no control over the data collection.
Incomplete questionnaire always give a negative impact on research.
43
• Trained persons are required for data collection. In experienced person in data collection may
give inadequate data of the research.
SECONDARY DATA :
Secondary data are the data collected by a party not related to the research study but collected
these data for some other purpose and at different time in the past. If the researcher uses these
data, then these become secondary data for the current users. These may be available in
written, typed or in electronic forms. A variety of secondary information sources is available
to the researcher gathering data on an industry, potential product applications and the market
place. Secondary data is also used to gain initial insight into the research problem. Secondary
data is classified in terms of its source – either internal or external. Internal, or in-house data,
is secondary information acquired within the organization where research is being carried
out. External secondary data is obtained from outside sources. There are various advantages
and disadvantage of using secondary data.
ADVANTAGES OF SECONDARY DATA:
• The primary advantage of secondary data is that it is cheaper and faster to access.
• I it provides a way to access the work of the best scholars all over the world.
• Secondary data gives a frame of mind to the researcher that in which direction he/she should
go for the specific research.
• Secondary data save time, efforts and money and add to the value of the research study.
DISADVANTAGES OF SECONDARY DATA:
• The data collected by the third party may not be a reliable party so the reliability and
accuracy of data go down.
• Data collected in one location may not be suitable for the other one due variable
environmental factor With the passage of time the data becomes obsolete and very old.
• Secondary data collected can distort the results of the research. For using secondary data a
special care is required to amend or modify for use.
• Secondary data can also raise issues of authenticity and copyright. Keeping in view the
advantages and disadvantages of sources of data requirement of the research study and time
factor, both sources of data i.e. primary and secondary data have been selected. These are
used in combination to give proper coverage to the topic
44
2.10.TECHNIQUES AND TOOLS :
• The techniques and tool used for primary data collection for surveying was a questionnaire
and the statically
• tool used was a pie diagram.
• The techniques and tools used for secondary data collection are as follows:
The secondary data collected from various sources regarding to insurance and their types
helped me a lot to know about insurance and its functions the data collected from Wikipedia
and chat GDP and from insurance, official sit
45
CHAPTER 3 LITERATURE REVIEW
Review of literature helps a researcher to get acquainted with his/her selected research
problem and also may provide some guidelines in selecting a proper research methodology. It
is also helpful in finding out the research gaps in the existing literature. This will help the
researcher in fine-tuning his/her research problem and methodology. Another advantage of
reviewing in the existing literature is that in cases where the research problems are similar,
the conclusions and findings may be easily compared. This will help the researcher in
determining whether his/her findings are possible or not. The literature under review may be
of two types:
(i) Concerning the conceptual and theoretical framework.

(ii) The empirical literature dealing with the studies made in the past which are similar to the one
that the researcher intended to undertake.
The basic outcomes of such review will be the knowledge as to what data are available for
analytical purposes, which will help the researcher to specify his/her own research problem in
a more meaningful way. Thus, review of literature is helpful in formulating the research
problem and also helps the researcher in deciding about the most appropriate methodology to
be used. While comparing the results of the earlier studies with his/her own results, care must
be taken to verify whether the objectives and methodology are similar. While reviewing the
earlier studies a researcher has to state the objectives of the study, describe the concepts and
definitions used, the methodology employed and the important findings and conclusions of
the study.
46
Krirubashni, B. (1991)
in her study attempts to know the level of awareness,
preference and influencing factor pertaining to policy holdings and to test the
relationship between the influencing factors and policy holdings. The study reveals that
the majority of the respondents aware of the endowment assurance policy and
considered to rank it as number one. The study also revealed that there was a significant
relationship between personal factors and policy holdings.
Modawat, S.L. (1997)
studies the change that had taken place between two decades in
life insurance with particular reference to policyholders‟ weal and loops. The study
revealed no spectacular increase in business from rural areas but all efforts were made
to exploit the vast and untapped potential from rural business. Life fund registered an
increase at 12.83% in the year 1975-76. 17.7% the net lapse ratio was due to the
misguidance of agents and development officers.
Dr. Sarwate D.M. (1997)
This book is published on various important aspects relating
to advertising, sales and distribution management. Now-a-days, every company is in
need of proper advertising, sales and distribution management. In chapter 12, the author
has mentioned various aspects relating to channels of distribution. IT has played a very
important role in selling a product. The channels perform a number of key functions for
their principles like Collection of market information, Marketing communication,
47
Stocking, Negotiating, Financing, Risk taking, Hence, the author has mentioned the key
points of the benefits and role of channels of distribution.
Vijayavani, J. (1999)
in her prize winning technical paper she discussed the various
methods to improve the channels of distribution. The concept of floating rebate schemes
to the customer not only spreads insurance coverage but also attracts extra customer.
She further suggested that free offer schemes should be introduced to the customers to
improve business.
Chandhani (1999)
attempts to study the monetary value of key man‟s life maximumSum Assured and other
requirements. Though introduced five years back in India, it isyet to gain prominence in the
field of life insurance. He viewed that key man insurance holds good to mitigate the losses
that might materiality affect the organization's profit, reduce sales, increase cost, restrict
credit, etc and that might be caused by key employees whose skill and knowledge is more
valuable to the organization and remains almost indispensable
Malliga, R. (2000)
in her study examines the association between Socio Economic
Status, Personality Traits of the Agents and their Performance. Further, the impact of
marketing strategies and attitude of the agents towards the organization and their
performance is studied with a sample of 100 respondents using stratified random
sampling. The results of the data show that performance of the agents in terms of
number of policies, the Sum Assured and the total commission received was found to be
48
dependent on the Socio-economic status. There is a significant correlation between the
marketing strategies of the agents and their performance.
Mookerji (2000)
cited weaknesses of marketing policies pertaining to outdated
products and technology used by LIC and GIC of India. She forecasted that in the light
of new and upgraded technology, the LIC of India would strengthen the network of
agents and intermediaries. Most of the products of LIC of India were bundled ones
having no flexibility. The corporation must adopt some new channels of distribution
like banks, village head, post office or the cooperative societies to improve its
performance.
Kotler, P. (2000)
in his book, mentioned that a company practicing market
segmentation realizes that buyers differ in their needs and wants, purchasing behaviour,
demographic characteristics, product service usage patterns, geographic locations,
buying habits and other characteristics.
Vasanthi Srinivasan, Prakash and sithramu (2001)
explore the changes taking place
in management of agents in liberalized economy. The objectives of the study were to
identify the competencies required and methodology adopted for selecting the effective
agents. The findings indicated that a professional competency is necessary for
successful insurance agents. The study also highlights the analysis of industry, how to
49
manage agents to develop competencies and domain experts in the selection of agents.
Mahesh Chandra Garg (2001)
brings out the new paradigm in the insurance industry by imposing the increase in life
expectancy of individuals and disintegration of the family system. According to his view,
the rate of insured which was around 7 per cent of the population in 1999 has to grow
very fast because private sector operator in collaboration with their overseas partners are
likely to bring in more professional and focused approach.
Paresh Parasnis (2001)
in an article briefly discusses the various channels of
distribution in the life insurance industry in India and new avenue cues being explored
by the new player. The greater importance is given to the customer not only for meeting
his requirements but also the impact in times of fulfilment, quality of service rendered,
complexity of products etc is given priority. To conclude, the life insurance industry in
transition presents -opportunities, but is also fraught with challenges of an – unknown

magnitude.
Cupach William R and Carson James M (2002),
in their market study, have observed
that agent‟s commission structure has been cited as a prime source of ethical conflicts in
insurance sales. Researchers analysed whether different forms of compensation
influence agent‟s recommendations of products. Findings indicated that neither the
amount of life cover nor type of coverage recommended by agents was associated with
his compensation. One interesting observation during the study was that the amount of
50
coverage recommended was higher when the insured was male than when the insured
was female
Arunajatesan (2002) in his study attempts to find the reason for poor penetration of
insurance and influencing factors like awareness of Life Insurance Products, preferred
mode of saving, insurable population, reasons for buying etc. The findings of the study
were that 70% of the population is aware of insurance through Television, Newspapers
and agents and among them only 24% are insured. Regarding the knowledge of
schemes, less than 15% are known and reasons for buying insurance is only for tax
planning and risk cover only.
Mittal, R.K. (2002) he has stated that 10 per cent of the agents procured 90 per cent of
the business and remaining 90 per cent of the agents procured the remaining 10 per cent
of the business. If the awareness towards insurance is ignited vigorously the untapped
potential business can be translated into actual business.
Rajat Shuvro Bakshi (2002) in his study attempts to know the theoretical concepts
and examines the post liberalization Scenario in the existence of IRDA and the
strategies for the future must be based on customers, as the customers are the major
driving force for the private players and is not easy to achieve especially when insurers
are preparing themselves up for a competition. The factors discussed in the study is to
retain the customers, in spite of private entry are strong distribution network, strategic
selection of segments, reputation, creditability and financial stability.
Thiripurasundari, K. (2002) in her study attempts to know the attitude of
51
Policyholders towards the Services and the Level of Satisfaction of Policyholders
relating to the rate of bonus, rate of premium, and medical examination etc. The study
also reveals that the overall services of the branch office with regard to various aspects
are satisfactory. Majority of the policyholders felt that the medical examination insisted
for taking policy is necessary.
Rudra Saibaba (2002) has conducted an enquiry on “Perception and attitude of
Women towards Life Insurance Policies”. According to him, 75% of women perceived
that life insurance plans provided coverage against future risk, 58% of women felt that
insurance provided accidental coverage, nearly 41% of women considered insurance
beneficial for availing housing loans, 70% of the respondents are satisfied with the
services offered by the corporation. 58.75% of the women knew about the different
types of polices available with the corporation. 41% of the respondents have not taken
any new polices.
Pradeep Gupta and Sanjay Bhyana (2002) discuss the challenges and strategies in the
insurance industry in India. As per study after liberalization in November 1999,
awareness of LIC brand shows 100% as against ICICI prudential awareness 70%
followed by HDFC, with 52%. The study of Tapen Sinha states that 312 million middle
class consumers in India have enough financial resources, but only 2.5% of the
population has insurance coverage and India is the sixth largest market in the world.
Jawaharlal (2003) elucidated that historically, distribution of insurance policies in
India has been totally agent based. The agents were always driven by motive of selling a
product and not in really marketing it. They were compelled to sell products that were
52
best suited to them rather than the proposer. The Corporation must adopt some new
channels of distribution like banks, village 35 head, post office or the cooperative
societies to improve its performance. The total Indian population was 1.05 billion in
July 2003, consisting of 72.22percent of rural population and 27.78percent urban
population. But the penetration level of the life insurance was just twenty percent.
Raman, N. and Gayathri, C. (2004) have observed the customers awareness towards
new insurance companies. They found that 53% of the respondents belong to the age
group below 30, 24% to the age group 31-40, 2% belong to the group of 41-50 and the
rest of the respondents belong to the group of „above 50‟. They also observed that a
large percentage of the insured respondents (32%) are professional, and 56% of the
respondents are married.
Agarwal, V.K. (2004) in his article briefly discusses the various channels of
distribution and new avenue being explored by the new players in the insurance sector.
He states that a customer may have expectations like value added services, development
of new products, technology insurance, solvency, financial security, quality trained staff
etc.
Jack Burke (2005) in his article entitled “the Art of Building a Relationship” stressed
that only post-sales service help in capturing more customers. In India, insurance has
not been on the main agenda of either individuals or corporate. Hence reforms
encompass not merely regulatory intervention but also promotional effort to develop the
market.
53
Sunil Maheswari (2005) in his article entitled “managing insurance and the Agents”,
pointed out that those quality agents can sell insurance products in the market
successfully. It is a challenge for any insurance business organization to attract qualified
and capable persons to join and work with them to sell insurance in the competitive
environment.
Kumar Jagendra (2005) in his study revealed that the life insurance premium per
capital is just Rs.550. The Life Insurance Company is the largest player with over 2000
officers. The present study intends to prepare the profile of life policyholders to
examine the preference of the policyholders towards various types of policies, and to
probe into the reasons behind the insurance product purchases in rural area.
M.J. Mathew (2005) insurance plays an important role in socio-economic prosperity of
a country, as is evident from the contribution of insurance in various industrial and
commercial activities. This book describes various issues relating to various types of
insurance namely life insurance policies, group insurances and salary saving scheme,
fire insurance, marine insurance, miscellaneous insurance etc… in addition to general
aspects of insurance like role and significance of insurance, its principles, process of
insurance-proposal is policy, risks and undertaking risks.
Rajesham, Ch. and Rajender, K. (2006) article “Changing Scenario of Insurance
Sector” Indian Journal of marketing revealed that insurance companies of India are
required to come up with multi-benefit policies including tax benefits with quality based
timely customer services and need to focus on health insurance which is one of the
54
untapped areas of insurance including services through innovative products, smart
marketing and aggressive distribution with internet facility with much individual
attention transparency and flexibility to increase the quality and volume of insurance
business.
Swiss Re (2007) in this report it was argued that bancassurance contributes to the
overall efficiency of banks by increasing their productivity and economies of scope.
Hence more and more banks are shaking hands with insurance companies for the
growth of banks and better customer relations. Various opportunities and challenges are
discussed.
Varaprasad, V. and Murali Krishna, B. (2009) in the article “Insurance sector:
Strategies for Intermediation and Marketing”, revealed that the suggestions brought
forward by this study are mixed. The contribution of insurance sector to economic
development hardly affects financial intermediation. He concluded that in order to make
insurance sector significant component of financial intermediation process, complete
deregulation and increase in face of reforms are essential at the same time, by adopting
proper segmentation capture significant share in the market for the overall benefit of
organizations.
Pasricha G Singh (2009) in his Ph.D thesis revealed that why LIC is not going ahead
and proposed the basic reason is that their products as well as technology are not
upgraded and also there is need to improve the processes and popularise the scheme.
With the entry of private insurers in the industry many new channels of distribution
have become available. However, LIC has not used them to the desired level. So author
55
recommended that such channels be used aggressively by LIC to meet the rising level of
competition.
Arulsuresh, J and Rajamohan, S (2010) added that Life insurance agent is a person in
commercial law who has the authorization to act for the principal to legally make a
relationship with those who want to insure themselves through life insurance policies.
LIC agents have to diversify their activities to meet the complex needs of customers.
Harpreet S. Bedi, Dr. Preeti S. (2011) they have analysed that overall total business of
LIC is increasing and Liberalisation, Privatisation and Globalisation have incorporated
positive influence on LIC of INDIA and its performance as well. But still there is a lot
of scope development as private sector will always be a challenge in front of LIC
S.Saravanan (2013), in his paper „Banassurance Channel-A SWOT Analysis, explained
various strengths, weakness, opportunities and threats of Bancassurance. He concluded
that it is very important for an insurer to understand the merits and demerits of
Bancassurance model.
Harpreet S. Bedi, Dr. Preeti S. (2011) they have analysed that overall total business of
LIC is increasing and Liberalisation, Privatisation and Globalisation have incorporated
positive influence on LIC of INDIA and its performance as well. But still there is a lot
of scope development as private sector will always be a challenge in front of LIC.
Anika S., et al. (2012) They have generalized that Indian Industry of Insurance is still
observing good growth, where almost all the industries in the world is trying hard for
56
survival due to major economic meltdown. IRDA have played a vital role in the growth
of this sector. Move from non-lined to unit linked insurance policies is one of the major
positive changes, similarly, opening is one of the sector for private insurer broke the
monopoly of LIC and has increased the competition among the players.
Dr. A. Mustafa (2012) This book name clearly gives an indication that it is an
overview of entire Insurance Industry. The chapters included in this book are
introduction about Insurance, Risk In Insurance, Insurance Agency, Annuities,
Company‟s Profile, Indemnification, Fundamental Principles Of Life Insurance,
Marines Insurance, Fire Insurance, And Miscellaneous and is has concluded with the
last chapters on contracts of insurance. In this book, third chapter gives details about the
Insurance-Agency. In most insurance transactions, there is an intermediary, usually an
insurance agent or broker, between the buyer and the insurer. The role of the
intermediary is to scan the market match buyers with insurers who have the skill,
capacity, risk appetite and financial strength to underwrite the risk, and then help the
client select from competing offers.
57
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION
Primary data analysis and interpretation :
I polled over 50+ people on the importance of various insurance feature and their advantages
and also asked whether they were satisfied with the service of the insurance company or not I
made a question air for collecting data from youth those data helped to identify whether
people are aware of insurance or not. Appropriate treatment has been done to the raw data
and logical conclusions were drawn based on the findings.
QUESTIONNAIRE
PERSONAL INFORMATION
1. name
2. Age
Particular Number of respondent Responses in the form of
%
17 1 1.9
18 3 5.8
19 3 19.2
20 19 35.5
Above 20 19 35.5
58
Analysis and interpretation
According to this study, 1.9 % of respondents are 17 years old and 5.8% of respondents are
18 years old and above 20 years old respondents are 35.9 and 35.9 % of respondents are 20
years old
3. EDUCATION

%
10th 3 5.8
12th 15 28.8
Bachelors degree 34 65.4
According to this study, the total number of respondents are 52. 5.8% of respondents are
from the 10th class 28.8% respondents from the 12th class and 65.4% respondent from
bachelor's degree students
59
QUESTION REGARDING TO THE INSURANCE
4. Have you aware of the term "insurance ?
Particular Number of respondent Responses in the form of %
Yes 47 90.40
no 5 9.6
According to this study 90.40% of respondents it means 47 people are heard about insurance
and 9.6% it means 5 respondents are not aware of the insurance term
60
5.what is the source of your knowledge about insurance ?
School 9 17.3
Friends 5 13.5
Media 26 50
Insurance company 10 19.2
According to this study, 50% of respondents are heard about insurance from the media and
19.2% of people are heard about insurance from the insurance company 13.5% of
respondents are heard about insurance from a friend and 17.3 respondents are heard about
insurance from the school.
It means media and family play important roles in insurance awareness
61
6. How familiar are you with different types of insurance policies (e.g., health, life,
vehicle, travel)?
Vary familiar 26 50
Some- what familiar 21 40.4
Not familiar 5 9.6
According to this study, 50% of respondents are familiar with insurance and 19.6% people
are not familiar with insurance and 40.4 respondents are somewhat familiar with insurance
policy
62
7.who influenced you to an insurance policy?
The media 30.8
Insurance agents 21.2
Friends family and 40.4

colleagues
Other 7.7
According to to study the most of respondents are influenced by their family friends 40.4% of
respondents are influenced by friends and 21.2% of respontends are influenced by insurance
agents and 30.8% of respondents are influenced by media
63
8.Which of the following types of insurance policies are you most familiar with?

%
Health insurance 19 36.5
Life insurance 28 53.8
Travel insurance 3 5.8
Others 2 3.8
According to this study most of the respondents are familiar with life insurance . 36.5% of
respondents are familiar with health insurance and 53.8% respondents are familiar with the
life insurance and 5.8% respondents are familiar with travel insurance
64
9.Do you believe insurance policies are important for young people? Why or why not?

%
Yes it helps protect 38 73.1

against financial risk
Yes it provides peace of 13 25
mind
No its too expensive
No its too complex 1 1.9
According to this study 73.1% take policy because it helps protect against financial risk and
25% of respondent take policy because it provides peace of mind and 1.9 % do not believe
because it too expensive
65
10.Have you ever considered purchasing an insurance policy?
Yes 43 82.7
No 9 17.3
According to this study, 82.7% respondents are considering taking insurance policy and
17.3% of respondents are not considering to take policy the number of respondents who are
considering to take policy is more.
66
11.what of kind insurance do you have ?
Whole life 14 26.9
Money back policy 10 19.2
Saving policy 8 15.4
Health insurance 20 38.5
According to this study, most of people have health insurance 38.5% of respondents have
health insurance and 15.4 have money back policy and 15.4% people have money back
policy and 26.9% have life insurance
67
12.how regular do you pay your premium ?
Monthly 23 44.2
Yearly 14 26.9
Quarterly 10 19.2
Half yearly 5 9.6
According to this study, most of the respondents pay their premium on a monthly basis the
parentage is 42.2, 26.9% of respondents pay their premium on a yearly basis 19.2% of
respondents are pay their premium on a quarterly and 9.6% of respondents are paying their
premium on half yearly
68
13.What are some of the benefits of having insurance?
Financial security in case of 31 59.6

unexpected event
Peace of mind knowing 9 17.3
you're protected
Legal protection in certain 11 21.3
situations
Potential tax benefit 1 1.9
Most of the respondents believe that insurance provides financial security in the case of
unexpected events and other respondents believe it provides potential tax benefits.
69
14. What factors would influence your decision to purchase an insurance policy?
18 34.6
The cost of the premium
Advertising or marketing 9 17.3
materials
20 38.5
Trust in the insurance
company
5 9.6
Other
The respondents are taking insurance policies because they think the premium is low and
70
15. Would you be interested in learning more about insurance policies through educational
programs or workshops?
Yes 43 86.5
No 7 13.5
Most of the respondents are interested in learning about insurance and fewer respondents are
not interested 86.5% of respondents are interested and 13.5% of respondents are not
interested
71
16. What do you think is the main purpose of an insurance policy?
Provide financial security 40 76.9
Others 12 23.1
Insurance helps people provide financial benefits according to this study 76.9% are given
their response and 23.1% think that insurance provides another benefit
72
17.have you received any benefit from policy do you have
No 32 61.5
Yes 20 38.5
According to this study, most of the respondents are not receive any benefit from the
insurance company 61.5% are not receive any benefit from insurance and 38.5% respondents
are get benefit from the company
73
CHAPTER 5, CONCLUSION, FINDING AND SUGGESTION AND
RECOMMENDATIO
5.1 FINDING
➢ Insurance is used by a large number of people
➢ The majority of respondents have health insurance
➢ The insurance company takes proper strategy to improve their services
➢ Most people know about insurance from their families and social media
➢ The respondents are satisfied with the services of the insurance company
➢ Proper promotional measures should be undertaken by insurance in order to raise public
awareness of the insurance , even in rural areas.
5.2 CONCLUSION
Based on the study of insurance awareness among youth, it can be concluded that there is a
significant lack of awareness and understanding among young people regarding various
insurance products and their importance. This suggests a need for educational initiatives to
improve insurance literacy among youth and empower them to make informed decisions
about their financial security.
5.3 SUGGESTION AND RECOMMENDATION
Based on the study findings, here are some suggestions and recommendations:
➢ Education Initiatives: Implement educational programs in schools and colleges to

increase awareness about insurance products, terminology, and their importance in
financial planning.
➢ Digital Platforms: Utilize digital platforms and social media to reach young people
and provide easily accessible information about insurance.
➢ Interactive Workshops: Conduct interactive workshops and seminars tailored to youth
to engage them in discussions about insurance and its relevance to their lives.
➢ Partnerships: Collaborate with insurance companies, financial institutions, and youth
organizations to develop targeted campaigns and materials aimed at increasing
insurance literacy.
➢ Peer-to-Peer Learning: Encourage peer-to-peer learning by empowering youth
ambassadors or influencers to promote insurance awareness among their peers.
74
➢ Gamification: Create gamified learning experiences or mobile apps that make learning
about insurance engaging and enjoyable for young people.
➢ Case Studies and Examples: Provide real-life case studies and examples to illustrate
the importance of insurance in protecting against unexpected financial hardships.
➢ Accessible Resources: Ensure that information about insurance is presented in a clear,
concise, and easily understandable manner, avoiding jargon and complex
terminology.
• BIBLIOGRAPHY
• en.m.wikipedia.org
• doc.google.cm
• https://licindia.in/
• https://www.iciciprulife.com/
• https://chat.openai.com/
• https://gemini.google.com/
• www.investopedia.com
• https://iib.gov.in/
• https://www.ibef.org/
75
• Appendix:
1. name
2.Age
17
18
19
20
above 20
3.Education level
10th
12th
Bachelor's Degree
4.Have you aware of the term "insurance ?
yea
no
5.what is the source of your knowledge about insurance ?
school
Friends
Media (e.g., TV, online ads)
insurance company
6.How familiar are you with different types of insurance policies (e.g., health, life,
vehicle, travel)?
Very familiar
Somewhat familiar
Not familiar at all
76
7.who influenced you to an insurance policy?
the media
insurance agents
friends family and colleagues
other
8.Which of the following types of insurance policies are you most familiar with?
health insurance
life insurance
travel insurance
other
9. Do you believe insurance policies are important for young people? Why or why not?
Yes, it helps protect against financial risks.
Yes, it provides peace of mind
No, it's too expensive.
No, it's too complex.
10.Have you ever considered purchasing an insurance policy?
yes
no
11.what kind of insurance do you have ?
whole life
money back policy
saving policy
health insurance
77
12.how regular do you pay your premium ?
monthly
yearly
quaterly
half yearly
13.What are some of the benefits of having insurance?
Financial security in case of unexpected events
Peace of mind knowing you're protected
Legal protection in certain situations
Potential tax benefits
14. What factors would influence your decision to purchase an insurance policy?
The cost of the premium
Advertising or marketing materials
Trust in the insurance company
Other
15. Would you be interested in learning more about insurance policies through
educational programs or workshops?
yes
no
16. What do you think is the main purpose of an insurance policy?
provide financial security
other
17.have you received any benefit from policy do you have
no
yes
78

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A PROJECT TITLED

“AWARENESS OF INSURANCE AMONG YOUTH”

SUBMITTED TO THE UNIVERSITY OF MUMBAI

For Partial Completion Of The Degree Of Bachelor Of Management Studies

Under The Faculty Of Commerce

MAURYA SHASHI HUBLAL

UNDER THE GUIDE BY

Asst. Prof. Athira M K

E-Mail: info@menoncollege.edu.in PNONE: 02225668541

INTERNAL EXAMINER EXTERNAL EXAMINER PRINCIPAL

SR. NO TOPIC NAME PAGE NO.

CHAPTER INTRODUCTION 7-35

1.2 Why Insurance Is Important For Youth 8

1.3 Advantages Of Insurance 10

1.4 Wealth Management In Insurance 11

1.5 Types Of Insurance 12

1. Life Insurance 12-25

2. Non -Life Insurance 23-35

CHAPTER RESEARCH AND METHODOLOGY 36-45

2.3 Scope Of Study 38

2.4 Limitation Of Study 38-39

2.5 Significant Of Study 40

2.6 Sample Size 42

2.7 Method Of Data Collection 42

2.8 Technique And Tools 45

CHAPTER DATA ANALYSIS AND DATA 58-73

CHAPTER CONCLUSION, FINDING, SUGGESTION AND 74-75

5.3 Suggestion And Recommendation 75

Insurance is a contractual agreement between an individual (or entity) and an insurance

1.2 WHY INSURANCE IS IMPORTANT FOR YOUTH

4. Liability Protection: Liability insurance, such as renters liability or personal liability

6. Building Financial Responsibility: Managing insurance policies requires understanding

8. Compliance and Legal Requirements: In many cases, insurance is mandatory or required

1. Financial Protection: Insurance provides financial protection against unexpected losses or

6. Economic Stability: Insurance contributes to economic stability by spreading risk across a

7. Encourages Investment and Innovation: Insurance encourages investment and innovation

1.4 WEALTH MANAGEMENT IN INSURANCE:

2. Asset Protection: Certain insurance products, such as homeowners’ insurance, renters

1.5 TYPES Of INSURANCE

Claim management in life insurance

4. Documentation Review: The insurance company carefully reviews all submitted

Overall, effective claim management in life insurance involves thorough verification,

TYPES OF LIFE INSURANCE

ADVANTAGES OF TERM INSURANCE

Disadvantages of term insurance

3. Endowment Life Insurance

5. Surrender Charges: If policyholders decide to surrender or cancel their endowment policy

4. ULIP(UNIT LINKED INSURANCE PLAN,)

2. Flexibility: ULIPs provide flexibility in investment choices, allowing policyholders to select

3. Transparency: ULIPs offer transparency regarding investment performance, charges, and

4. Switching Options: ULIPs typically allow policyholders to switch between different

5. Overlapping Coverage: Individuals and businesses may unintentionally purchase overlapping

TYPES OF NON-LIFE INSURANCE

Commercial insurance refers to insurance coverage designed to protect businesses,

2. Legal Compliance: In many jurisdictions, certain types of commercial insurance, such as

1. Cost: Commercial insurance premiums can be a significant expense for businesses,

5. Overlapping Coverage: Businesses may unintentionally purchase overlapping or redundant

4. Third-Party Liability Coverage: Motor insurance typically includes third-party liability

1. Financial Protection: Health insurance provides financial protection against unexpected

2. Access to Healthcare: Health insurance enables individuals to access essential healthcare

3. Comprehensive Coverage: Health insurance policies typically offer comprehensive coverage

Home insurance, also known as homeowners insurance or property insurance, provides

5. Underwriting Requirements: Marine insurance underwriters may impose certain requirements