ABSTRACT

Life insurance is used to protect the financial security of the people you love most. A life
insurance policy pays a cash benefit, tax free, to your beneficiaries when you die. The
amount of money for which you are insured and the type of insurance you buy depends
on your needs. People can get life insurance through work (some employers offer it
through group benefits plans. This type usually ends when you leave the employer.) or
they buy it on their own (usually from an insurance advisor).

It’s understandably difficult for any family to consider death and making arrangements
for it. When this occurs, dealing with the emotional trauma is hard enough. By having the
financial preparations planned and under control with comprehensive life insurance
coverage, it makes the situation that much easier for your loved ones left behind. By
having a life insurance policy in place, your loved ones will be protected from financial
hardships. The protective qualities of your policy will provide money directly to your
beneficiaries. This settlement from the company that insures you can be used by your
beneficiaries in any way they see fit, such as:

 Supplement lost income

 Funds for children’s education
 Pay off the family household debt
 Pay for the cost of the funeral and related expenses
 If you choose to buy a permanent policy, you can have the option of adding a cash
value component. This cash value component can be used during your lifetime if
needed.
 TABLE OF CONTENTS
Chapter 1: INTRODUCTION ........................................................................................... 1
1.1 Introduction .............................................................................................................3
1.1.1 Definition of Insurance ......................................................................................3
1.1.2 Types of Insurance .............................................................................................3
1.1.3 Importance of Insurations .................................................................................3
1.1.4 the Insurance Industrial Today ..........................................................................3
1.1.5 Evaluation of Insurance in India and Organization .............................................5
1.1.6 Background of Study ..........................................................................................5
1.1 Profile of the Organization .....................................................................................13
1.1 Industry Profile ......................................................................................................37
Chapter 2: OBJECTIVE OF THE STUDY .......................................................................... 45
Chapter 3: REVIEW OF LITERATURE............................................................................. 47
Chapter 4: RSEARCH OF METHODOLOGY .................................................................... 49
4.1 Research Design .....................................................................................................50
4.2 Sample of Design ...................................................................................................50
4.3 Source of Data .......................................................................................................51
Chapter 5: LIMITATIONS OF STUDY ............................................................................. 52
Chapter 6: ANALYSIS AND INTERPRETATION ............................................................... 54
6.1 Introduction to Analysis .........................................................................................55
6.2 Data Analysis Tools Used .......................................................................................56
Chapter 7: FINDINGS................................................................................................... 68
Chapter 8: RECOMMENDATION (suggestions)............................................................. 71
Chapter 8: CONCLUSIONS ........................................................................................... 74
BIBLIOGRAPHY............................................................................................................ 76
Questionnaire ............................................................................................................. 77
 Chapter – 1

INTRODUCTION

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1.1 INTRODUCTION
Everyone is exposed to various risks. Future is very uncertain, but there is
way to protect one’s family and make one’s children’s future safe. Life
Insurance companies help us to ensure that our family’s Future is not just
secure but also prosperous.
Life Insurance is particularly important if you are the sole breadwinner for
your family. The loss of you and your income could devastate your family.
Life insurance will ensure that if anything happens to you, your loved ones
will be able to manage financially. This study titled “Study of Consumers
Perception about Life Insurance Policies” enables the Life Insurance
Companies to understand how consumer’s Perception differs from person
to person. How a consumer selects, organizes and interprets the service
quality and the product quality of different Life Insurance Policies, offered
by various Life Insurance Companies.
Insurance is a tool by which fatalities of a small number are compensated
out of funds (premium Payment) collected from plenteous. Insurance
companies pay back for financial losses arising out of Occurrence of insured
events e.g., in personal accident policy death due to accident, in fire policy
the Insured events are fire and other allied perils like riot and strike,
explosion etc. hence insurance Safeguard against uncertainties. It provides
financial recompense f or losses suffered due to incident of Unanticipated
events, insured with in policy of insurance. Moreover, through a number of
acts of Parliament, specific types of insurance are legally enforced in our
country e.g., third party insurance Under motor vehicles Act, public liability
insurance for handlers of hazardous substances under Environment
protection Act Etc.

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DEFINITION OF INSURANCE
Insurance has been defined to be that in, which a sum of money as a premium
is paid by the insured in consideration of the insurer’s bearings the risk of
paying a large sum upon a given contingency. The insurance thus is a contract
whereby:
 Certain sum, termed as premium, is charged in consideration,
 Against the said consideration, a large amount is guaranteed to be paid by
the insurer who received the premium,
 The compensation will be made in certain definite sum, i.e., the loss or
the policy amount which ever may be, and
 The payment is made only upon a Contingency More specifically,
insurance may be defined as a contact between two parties, where in one
party (the insurer) agrees to pay to the other party (the insured) or the
beneficiary, a certain sum upon a given contingency (the risk) against
 which insurance is required?

TYPES OF INSURANCE
Insurance occupies an important place in the modern world because of the risk,
which can be insured, in number and extent owing to the growing complexity
of present-day economic system. The different type of insurance has come
about by practice with in insurance companies, and by the influence of
legislation controlling the transacting of insurance business, broadly, insurance
may be classified into the following categories:

1. Classification from business point of view

a) Life insurance, and
b) General insurance

2. Classification on the basis of nature of insurance

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 a) Life insurance
b) Fire insurance
c) Marine insurance
d) social insurance, and
e) Miscellaneous insurance

3. Classification from risk point of view

a) Personal insurance
b) Property insurance
c) Liability insurance
d) Fidelity general insurance

THE IMPORTANCE OF INSURANCE

Insurance benefits society by allowing individuals to share the risks faced by
many people. But it also serves many other important economic and societal
functions. Because insurance is available and affordable, banks can make loans
with the assurance that the loan’s collateral (property that can be taken as
payment if a loan goes unpaid) is covered against damage. This increased
availability of credit helps people buy homes and cars. Insurance also provides
the capital that communities need to quickly rebuild and recover economically
from natural disasters, such as tornadoes or hurricanes. Insurance itself has
become a significant economic force in most industrialized countries.
Employers buy insurance to cover their employees against work-related injuries
and health problems. Because it makes business operations safer, insurance
encourages businesses to make economic transactions, which benefits the
economies of countries. In addition, millions of people work for insurance
companies and related businesses. In 1996 more than 2.4 million people worked
in the insurance industry in the United States and Canada. Insurance as an
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investment that offers a lot more in terms of returns, risk cover & as also that
tax concessions & added bonuses Not all effects of insurance are positive ones.
The possibility of earning insurance payments motivates some people to
attempt to cause damage or losses. Without the possibility of collecting
insurance benefits, for instance, no one would think of arson, the willful
destruction of property by fire, as a potential source of money.

THE INSURANCE INDUSTRY TODAY

Since the 1970s, the insurance business has grown dramatically and undergone
tremendous changes. As a result of the deregulation of financial services
businesses— including insurance, banking, and securities trading—the roles,
products, and services of these formerly distinct businesses have become
blurred. For instance, citizens in the U.S. state of California voted in 1988 to
allow banks to sell insurance in that state. In Canada, banks may also soon be
allowed to sell insurance.
Advances in communications technology have also allowed traditionally
distinct financial businesses to keep instantaneous track of developments in
other businesses and compete for some of the same customers. Some insurance
companies now offer deposit accounts and mortgages. In the United States, life
insurance companies now sell more pension plans and other asset management
services than they do conventional life insurance.
Developments in computer technology that have given insurance providers the
ability to quickly access and process information have allowed them to custom-
design policies to fit the needs of individual customers. But the increasing
complexity of policies has also made some aspects of buying and selling
insurance more difficult.
IN addition, improvements in geological and meteorological technology have
the potential to change the way property insurers calculate risks of damage. For
example, as scientists improve their abilities to predict severe weather patterns,

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such as hurricanes, and geological disturbances, such as earthquakes, insurers
may change how they provide protection against losses from such events.

EVOLUTION OF INSURANCE IN INDIA

The marine insurance is the oldest form of insurance. If we trace Indian history
there are evidence that marine insurance was practiced here about three
thousand years ago. The code of Manu indicates that there was the practice of
marine insurance carried out by the traders in India with those of silence, Egypt
and Greece .it is wonderful to see that Indians had even anticipated the doctrine
of average and contribution. Fright was fixed according to season and was then
very much at the mercy of the wind and other elements. Travelers by sea and
land were very much exposed to the risk of losing their as followed by several
insurance companies like London assurance and royal exchange assurance
(1720), Phoenix Assurance Company (1782). Etc. General insurance business
in the country was nationalized with effect from 1st January 1973 by The
General Insurance Business (Nationalization) Act, 1972. More than 100 non-
life insurance companies including branches of foreign companies operating
within the country were amalgamated and grouped into four companies, viz.,
the National Insurance Company Ltd., the New India Assurance Company Ltd.,
the Oriental Insurance Company Ltd., and the United India Insurance Company
Ltd. With head offices at Calcutta, Bombay, New Delhi and Madras,
respectively.
Life insurance in the current form came in India from united kingdom with the
establishment of a British firm, oriental life assurance company in 1818
followed by Bombay life assurance company in 1823, the madras equitable life
insurance society in 1829 and oriental life assurance company in 1874.prior to
1871, Indian lives were treated as sub standard and charged an extra premium
of 15% to 20%. Bombay mutual life assurance society, an Indian insurer that
came in to existence in 1871, was the first to cover Indian lives at normal rates.

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The Indian insurance company Act 1923 was enactedinter alia, to enable the
government to collect statistical information about life and nonlife insurance
business transacted in India by Indian and foreign insurer, including the
provident insurance societies.
The first half of the 20th century marked by two world war, the adverse affects
of the World War I and World War II on the economy of India, and in between
them the period of world wide economic crises triggered by the Great
depression. The first half of the 20th century was also marked by struggles for
India’s independence. The aggregate effect of these events led to a high rate of
bankruptcies and liquidation of life insurance companies in India. This had
adversely affected the faith of the general
public in the utility of obtaining life cover. IN this background, the Parliament
of India passed the Life Insurance of India Act on 19th June 1956, and the Life
Insurance Corporation of India was created on 1stSeptember, 1956, by
consolidating the life insurance business of 245 private life insurer sand other
entities offering life insurance services. Since 1972, the insurance sector has
been totally under the control of government of India through LIC and GIC and
its subsidiaries. As a result, revenue of both of them increased in the last years
.the amount of savings pooled by LIC increased from Rs.2704 crores in 1974
to Rs .57670 in 1994 with an annual growth rate of 16.53%.similarly premium
underwritten by GIC rose from 280 crores in 193 to 7647 crores in1998 showing
an annual growth rate of 25.18%.Despite increase in premium collected by both
LIC and GIC their were inefficiency and red tapeisum creeped in to the
insurance sector. Apart from that a major policy shift by the Narasimha Rau
government during 1990’s.the Indian economy opened for foreign competition
.
In this background The government of India in 1993 had set-up a high powered
committee by R.N Malhotra ,former governor reserve bank of India, to examine
the structure of Indian insurance sector and recommended changes to make it

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more efficient and competitive keeping in view structural changes in other part
of the financial system of the country.
Insurance sector has been opened up for competition from Indian private
insurance with the enactment of Insurance Regulatory and Development
Authority Act,1999 (IRDA Act). As per the provisions of IRDA Act, 1999,
Insurance Regulatory And Development Authority (IRDA) was established on
19th April 2000 to protect the interests of holder of insurance policy and to
regulate, promote and ensure orderly growth of the insurance industry. IRDA
Act 1999 paved the way for the entry of private players into the insurance
market, which was hitherto the exclusive privilege of public sector insurance
companies/corporations.

EVOLUTION OF INSURANCE ORGANIZATION

With a view to serve the society, the insurance organization’s have been
developed in different forms with innovation of insurance practice for social
welfare and development; some of these forms are outlined here.

a) Self-insurance
The arrangement in which an individual or concern sets up a private fund to
meet the future risk. If some losses happened in the future the firm meets the
loss out of the fund. While it may be called ‘self insurance’ it is not a single
matter of fact, insurance atall because there is no hedge, no shifting, or
distributing the burden of risk among larger Persons. It is merely a provision to
meeting the unforeseen event. Here the insured become the insurer for the
particular risk. But it can be effectively worked only when there is wide
distribution of risks subjected the same hazard.

b) Partnership

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A partnership firm may also carry on the insurance business for the sake of
profit. Since it is not an entity distinct from the persons comprising it, the
personal liability of partners in respect to the partnership debts is unlimited. In
case of huge loss the partners may have to pay from their own personal funds
and it will not be profitable to them to starts insurance business .in the early
period before the advent of joint stock companies many insurance undertakings
were partnership firms or unincorporated companies

c) Joint stock companies

The joint stock companies are those, which are organized by the shareholders
who subscribe the necessary capital to start the business. These are formed for
earning profits for the stockholders who are the real owners of the companies.
The management of accompany is entrusted to a board of directors who is
elected by the shareholders from amongst themselves. The company can
operate insurance business and policyholders have nothing to do with the
management of the concern. But in life insurance it is the practice to share
certain portion of profit among the certain policyholders.

d) Mutual fund companies

The mutual fund companies are co- operative association formed for the
purpose of effecting insurance on the property of its members. The
policyholders are themselves the shareholders of the companies each member
is insured as well as insured. They have power to participate in management
and in the profit sharing to the full extent. Whenever the income is more than
the expenses and claims, it is accumulated I the form of saving and is entitled
in reducing the rate of premium. Since the insured are insurers also, they always
try to reduce the management expenses and to keep the business at sound level.

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e) Co-operative insurance organizations
Cooperative insurance organizations are those concerns, which a reincorporated
and registered under Indian cooperative societies Act. The concerns are also
called ‘co operative insurance societies’ these societies like mutual fund
companies are non profit organization .the aim is to provide insurance
protection to its members at the lowest reasonable net cost .the Indian insurance
Act. 1938, has provided special provisions for the co-operative insurance
societies, but after nationalization the societies have ceased to exist.

f) Lloyd’s Association
Lloyd’s association is one of the greatest insurance institutions in the world.
Taking its name from the coffee house Lloyd where underwriters assembled to
transact business and pick-up news. The organization traces its origins to the
latter part of the seventeenth century .so it is the oldest insurance organization
in existing form in the world. In 1871,Lloyds Act was passed incorporating the
members of the association into a single corporate body with perpetual
succession and a corporate seal .the powers of Lloyds corporation were
extended from the business of marine insurance to the other insurance and
guarantee business. The Lloyds Association also publishes, Lloyds list and
register of shipping for the information of insuring public and the insurers.

g) State Insurance
The government of a nation, some times, owns the insurance and runs the
business for the benefit of the public. The sate insurance is defined as that
insurance which is under public sector. In Brazil, Japan and Mexico, the
insurance are largely nationalized. Previously, the state undertook only those
insurances, which were regarded as vital for the national interest.

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BACKGROUND OF THE STUDY
“Life Insurance is a contract for payment of a sum of money to the person
assured on The Happening of the event insured against”. Usually the insurance
contract provides for The Payment of an amount on the date of maturity or at
specified dates at periodic intervals or At unfortunate death if it occurs earlier.
Obviously, there is a price to be paid for This Benefit. Among other things the
contracts also provides for the payment of premiums, by the assured. Life
Insurance is universally acknowledged as a tool to eliminate risk, substitute
certainty for uncertainty and ensure timely aid for the family in the unfortunate
event of the death of the breadwinner. In other words, it is the civilized world’s
partial solution to the problems caused by death. Life insurance helps in two
ways dealing with premature death, which leaves dependent families to fend for
themselves and old age without visible means of support. The most common
types of life insurance are whole life insurance and term life insurance. Whole
life insurance provides a lifetime of protection as long as you pay the premiums
to keep the
policy active. They also accrue a cash value and thus offer a savings component.
Term life insurance provides protection only during the term of the policy and
the policies are usually renewable at the end of the term.

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There are many Life Insurance Companies like:

LIFE INSURANCE CORPORATION OF INDIA

BAJAJ ALLIANZ LIFE INSURANCE COMPANY
ICICI PRUDENTIAL LIFE INSURANCE COMPANY
HDFC STANDARD LIFE INSURANCE COMPANY
BIRLA SUN-LIFE INSURANCE COMPANY
ING VYSYA LIFE INSURANCE COMPANY
METLIFE INSURANCE COMPANY
TATA AIG LIFE INSURANCE COMPANY
MAX NEW YORK LIFE INSURANCE COMPANY
OM KOTAK MAHINDRA LIFE INSURANCE COMPANY

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1.2 PROFILE OF THE ORGANIZATIONS
LIFE INSURANCE CORPORATION OF INDIA
Life Insurance Corporation of India was formed in September 1956 by
passing LIC Act, 1956 in Indian parliament. On the nationalization of the
life insurance in 1956, the premium rating of Oriental Government security
life Assurance company were adopted by LIC with a reduction of 5% of the
tabular premium or Re. 1 per thousand sum assured, whichever was less.
This reduction was made in anticipation of economies of scale that would
emerge on the merger of different insurers in a single entity.

Life Insurance Corporation Of India – there are many things to consider as

Life Insurance Corporation of India offers various insurance products which
are verycomplex, but underlying this complexity is a simple fact. The
building blocks for all Life Insurance Corporation of India are (1)
investment return; (2) mortality experience; and (3) expense management;
for your Life Insurance Corporation Of India.

Objectives of LIC

 Spread Life Insurance much more widely and in particular to the rural
areas and
 To the socially and economically backward classes with a view to
reaching all
 Insurable persons in the country and providing them adequate financial
cover
 Against death at a reasonable cost.
 Maximize mobilization of people’s savings by making insurance-linked
savings
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 Adequately attractive.
 Bear in mind, in the investment of funds, the primary obligation to its
 Policyholders, whose money it holds in trust, without losing sight of the
interest
 Of the community as a whole; the funds to be deployed to the best
advantage of
 The investors as well as the community as a whole, keeping in view
national
 Priorities and obligations of attractive return.
 Conduct business with utmost economy and with the full realization that
the
 Moneys belong to the policyholders.
 Act as trustees of the insured public in their individual and collective
capacities.
 Meet the various life insurance needs of the community that would arise
in the
 Changing social and economic environment.
 Involve all people working in the Corporation to the best of their
capability in
 Furthering the interests of the insured public by providing efficient service
with
 Courtesy.
 Promote amongst all agents and employees of the Corporation a sense of
participation,
 Pride and job satisfaction through discharge of their duties with dedication
towards
 Achievement of Corporate Objective

LIC's contribution to the five year plans over the years

Plan Year Investment

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1 1956-1961 ₹184 Cr
2 1961-1966 ₹285 Cr
3 1969-1974 ₹1530 Cr
4 1974-1979 ₹2942 Cr
5 1980-1985 ₹7140 Cr
6 1985-1990 ₹12969 Cr
7 1992-1997 ₹56097 Cr
8 1997-2002 ₹170929 Cr
9 2002-2007 ₹394779 Cr
10 2007-2012 ₹704720 Cr
11 2012-2017 ₹1423055 Cr
12 2017-2022 ₹2801483 Cr

VISION
“A trans-nationally competitive financial conglomerate of significance to
societies and pride of India “

MISSION
“Explore and enhance the quality of life of people through financial security
by providing products and services of aspired attributes with competitive
returns, and by rendering resources for economic development”

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Various policies offered by life insurance corporation of India are
1) Whole Life Schemes
•Whole life with profit
•Limited payment whole life
•Single Premium whole life
•Convertible whole life plan

2) Endowment Schemes
•Endowment plan with profit
•Limited payment Endowment
•Jeevan Mitra (Double Cover)
•Jeevan Mitra (Triple cover)
•Bhavishya Jeevan
•Jeevan Anand
•New Jana Raksha

3) Term Assurance Plan

•Anmol Jeevan
•2 Year Term Assurance
•Convertible Term
• New Bima Kiran
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4) Plan for needs of Children
•Komal Jeevan
•Jeevan Sukanya
•Jeevan Kishore
•Jeevan Balya
•Jeevan Chaya
•Marriage/educational annuity
•Deffered Endowment

5) Periodic Money Back Plan

•Jeevan Samridhi
•Jeevan Rekha Plan
•Money Back Plan
•Jeevan Surabhi
•Jeevan bharathi

6) Medical benefits linked insurance

•Asha Deep II
•Jeevan Asha II

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7) For benefits to Handicapped
•Jeevan Aadhar
•Jeevan Vishwas

8) Plans to cover housing loans

•Mortgage redemption

9) Joint life plan

•Jeevan sathi

10) Investment plan

•Bima Nivesh Triple cover

11) Capital market linked plan

•Bima plus.

DESCRIPTION OF THE LIC POLICIES

Whole life plan:
Whole life plan are those policies which life assured has to pay premiums
till hisdeath the sum assured will be paid to his dependent generally 70 years
is assumed asa maximum age for payment of premium.Under the whole life
premium are payable throughout the life time of the life assured and this is

18
the cheapest form of policy. This plan is ideally suited to person who wants
maximum provision for his family at minimum cost. It also meets the needs
for funds required for funeral, religious ritesand ceremonies to be
performed, tax liabilities if any and expenses connected with thelast sickness
and hospital charges etc.

Endowment Assured Plan:

Endowment plans are not covering the risk for whole life of the life assured.
The termo for risk cover under this plan is as per the need of life
assured.Endowment assurance plan are the most popular. They are
eminentlySuited to meet it one policy the twin demands of old age provision
and risk cover for Family. The sum assured is payable on maturity or at
death if earlier. Thus anEndowment Assurance Policy provides for
retirement and also serves as a means of family provisions.

Term Assurance
Under the term assurance the risk cover is generally for specific short term.
Such termassurance is maximum for 2 years. Generally this type of
assurance is useful for air traveling.

Money Back Plans

Under this plan specific percentage of sum assured will be backed to the life
assured after specific period of time. This plan is of special interest to person
who besides desiring to provide for their own old age and family feels the
need for lump sum benefits at periodical intervals. Under these policies part
of the sum assured is paid to the life assured in installments at selected
intervals.

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Children Plan
Under the children plans the risk on the life of the children where covered
generally this type of plans are helpful in education and marriage of the
children.

Jeevan Balya:
This plan is designed to enable a parent to provide for the child by payment
of a very low premium an Endowment Assurance Policy, the risk under
which will commence from the vesting date. In addition, Premium benefit
and income benefit are includedas additional benefit by payment of
appropriate additional premium during the deferment period. This policy
shall be cancelled in case the life assured shall die before the deferred dates
and in such an event provided the policy is then in full force in for a reduced
Cash option.

Marriage Endowment/ educational annual plan

Every father desires to see that his children are well settled in life through
sound education, leading to good jobs and happy marriage. These needs
arise at ages which can be approximately anticipated. Say when the children
are between 18 to 25 year of age. This plan provides for a sum assured to
keep aside to meet marriage educationalexpenses of children. Under this
plan the S A along with the vested bonus shall be payable at the end of the
selected term either is lump sum or in ten half yearlyinstallment, at the
option of the life assured nominee beneficiary.

Jeevan Mitra

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This plan provides additional insurance cover equal to the sum assured in
the even of death during the term of policy so that the total insurance cover
in the event of deaths twice the basic sum assured. i.e. The basic sum assured
is doubled and the accrued bonus is also paid.

AWARDS AND RECOGNITION

• The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6
Most Trusted Service Brand of India.
• From the year 2006, LIC has been continuously winning the Readers'
Digest Trusted brand award.
• Voted India's Most Trusted brand in the BFSI category according to the
Brand Trust Report for 4 continuous years – 2011–2014 according to the
Brand Trust Report.

TATA-AIG Life Insurance

Tata-AIG Life Insurance Company is a joint venture between the Tata
Group and American International Group Inc (AIG), the leading US-based
international insurance and financial services organization and the largest
underwriter of commercial and industrial insurance in America. Its member
companies write a wide range of commercial, personal and life insurance
products through a variety of distribution channels in approximately 130
countries and jurisdictions throughout the world. AIG’s global businesses
also include financial services and asset management, including aircraft
leasing, financial products, trading and market making, consumer finance,
institutional, retail and direct investment fund asset management, real estate
investment management, and retirement savings products. TATA holds
76% shares and AIG holds 24% shares in the total share capital of TATA
AIG.Tata AIG Life Insurance Company Ltd. “Tata AIG Life” offers a broad
array of life insurance products to individuals, associations and businesses
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of all sizes, with awide variety of additional coverage to ensure our
customers can find an insurance product to meet their needs. Tata-AIG Life
Insurance and Tata-AIG General Insurance, both joint ventures between the
Tata Group and American International Group (AIG), provide life and
general insurance policies and solutions to companies, institutions and
organizations across India. It is licensed to operation on 12th February 2001.
TATA-AIGlife is spread over28 branch offices and 39 training offices
across the country.Tata-AIG Life offers a broad array of life insurance
products and solutions to corporate and other organizations. These products
and solutions have various value added benefits and options that deliver
flexibility and choice to the company’s clients.The company has some 20
life insurance products with over 250 product combinations,including
endowment to term, pension to
group life and credit life, money back to wholelife plans, etc. Tata-AIG Life
uses different distribution channels, including directmarketing, brokerage
and banc assurance, to service client groups in 19 Indian cities.Tata-AIG
Life is the first private insurer in India to offer group retirementschemes.
Additionally, the company’s group management division focuses on
providingemployee benefit solutions.

PRODUCTS
The product range of TATA-AIG Life is wide-spread across different
segments. Some of the products are
mentioned below.
•Maha life
•Invest Assure
•Health Protector
•Star Kid
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•Shubh Life
•Nirvana
•Nirvana Plus
•Money Saver Plan
•Health First
•Assure Golden Life
•Assure 10, 20, 30 years – Security and Growth
•Assure Educate at 18, 21
•Assure Career Builder Plan at 27
•Assure Golden Years Plan
•Assure 21 Money Saver Plan
•Assure 1/5/10/15/20/25 years/ to age lifelines
•TROP
Last five years Acquisitions of TATA
•April 2010 – Hewitt Robins International, United Kingdom
•July 2013 – Alti SA, France
•December 2014 – Energy Products Limited, India
•June 2016 – Welspun Renewables Energy, India
•May 2018 – Bhushan Steel Limited, India
•Feb 2021 - BigBasket (68%) by Tata Digital

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•October 2021 – Air India, Air India Express and Air India SATS, $2.4
billion

Current launched insurance in Tata

•In 2020,the company had launched new policy called ‘AutoSafe’,which
offers usage-based insurance cover to private car owners which will help
reduce the overall premium payout.The app helps policyholders by saving
on premium amount by providing an option to select the kilometers-driven,
promoting safe driving and works as anti-theft device as it comes with a
GPS-based tracking facility and uses telematics-based next-generation
application system and as a device to track the usage of the car and decide
on the premium amount.
•In 2021,company launched Tata AIA Life Fortune Guarantee Plus, a
flexible, non-linked, nonparticipating savings plan which offers policy
holders guaranteed long-term income along with comprehensive protection
cover and in addition to long-term guaranteed income for future financial
needs, the plan also covers health protection in the event of the policyholder
getting diagnosed with a Critical diseases.

HDFC STANDARD LIFE INSURANCE

The Partnership:
HDFC and Standard Life first came together for a possible joint venture, to
enter the LifeInsurance market, in January 1995. It was clear from the outset
that both companiesshared similar values and beliefs and a strong
relationship quickly formed. In October 1995 the companies signed a 3 year
joint venture agreement.Around this time Standard Life purchased a 5%
stake in HDFC, further strengthening therelationship.The next three years
were filled with uncertainty, due to changes in government and on going
delays in getting the IRDA (Insurance Regulatory and Development
24
authority)Act passed in parliament. Despite this both companies remained
firmly committed to theventure.In October 1998, the joint venture
agreement was renewed and additional resource madeavailable. Around this
time Standard Life purchased 2% of Infrastructure DevelopmentFinance
Company Ltd. (IDFC). Standard Life also started to use the services of
theHDFC Treasury department to advise them upon their investments in
India.Towards the end of 1999, the opening of the market looked very
promising and bothcompanies agreed the time was right to move the
operation to the next level. Therefore,in January 2000 an expert team from
the UK joined a hand picked team from HDFC toform the core project team,
based in Mumbai.Around this time Standard Life purchased a further 5%
stake in HDFC and a 5% stake in HDFC Bank.

HDFC Bank.
Incorporation of HDFC Standard Life Insurance Company Limited:
The company was incorporated on 14th August 2000 under the name of
HDFC StandardLife Insurance Company Limited. Companies ambition
from as far back as October 1995,was to be the first private company to re-
enter the life insurance market in India. On the23rd of October 2000, this
ambition was realized when HDFC Standard Life was the onlylife company
to be granted a certificate of registration. HDFC are the main shareholdersin
HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given
StandardLife’s existing investment in the HDFC Group, this is the
maximum investment allowedunder current regulations. HDFC and
Standard Life have a long and close relationship built upon shared values
and trust. The ambition of HDFC Standard Life is to mirror thesuccess of
the parent companies and be the yardstick by which all other
insurancecompany’s in India are measured.Products offered by the company
are:

25
INDIVIDUAL PLAN
•With Profit Endowment Assurance
•With Profits Money Back
•Single Premium Whole of Life
•Term assurance Plan
•Loan Cover Term Assurance
•Personal Pension Plan
•Children’s Plan
GROUP PLANS
•Group Team Insurance
•Development Insurance Plan

ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank,a premier financial powerhouse, and prudential plc, a leading
international financialservices group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector insurance companies
to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).ICICI Prudential’s
equity base stands at Rs. 925 crore with ICICI Bank andPrudential plc
holding 74% and 26% stake respectively. In the quarter ended June 30,2005
, the company garnered Rs 335 crore of new business premium for a total
sumassured of Rs 2,619 crore and wrote 111,522 policies. For the past four
years, ICICIPrudential has retained its position as the No. 1 private life

26
insurer in the country, with awide range of flexible products that meet the
needs of the Indian customer at every step in life.
Products offered by ICICI Prudential are
1. Savings Plan
•Smart kid
•Life Time
•Save ‘n’ Protect
•Cash Back

2. Protection plan
•Life Guard
•Extra Protection Through
•Riders
3. Retirement Plans
•Forever Life
•Life link pension
•Life time pension
•Reassure

4. Investment Plans
•Assure Invest

27
 •Life Link

5. Group plans
•Group Superannuation
•Group Gratuity
•Group Term Assurance

ICICI PARTNERSHIP
•In December 2019, the company collaborated with Paytm so that users can
get the iProtect Smart plan benefits through it.
•In January 2021, the company collaborated with PhonePe so that users can
get term life insurance instantly via the app without any health check-ups
and paperwork.

Advertising and marketing campaign

During COVID-19 time, in the month of November 2020, the firm released
a commercial ad to spread awareness of their term plan product ICICI Pru
iProtect Smart where customers can get the benefits of both life and health
insurance.
Awards and accreditation
•2019 Product of the Year 2019 - Life insurance category ICICI Pru iProtect
Smart "Product of the Year 2019" in the life insurance category by Product
of the Year (India) Private Limited

28
•2020 Claims and Customer Service Excellence Award Life Insurance
Category by FICCI
•2021 Best ULIP Policy of the Year ICICI Pru Signature Business Today -
Money Today Financial Awards
•2021 Product of the Year 2021 - Life Insurance - Retirement & Pension
Plans ICICI Pru Guaranteed Pension Plan "Product of the Year 2021" in the
life insurance - retirement & pension plans category by Product of the Year
(India) Private Limited

OM KOTAK MAHINDRA LIFE INSURANCE COMPANY

Established in 1985 as Kotak Capital Management Finance promoted by
UdayKotak the company has come a long way since its entry into corporate
finance. It hasdabbled in leasing, auto finance, hire purchase, investment
banking, consumer finance, broking etc. The company got its name Kotak
Mahindra as industrialists Harish Mahindraand Anand Mahindra picked a
stake in the company. Kotak Mahindra is today one of India’s leading
Financial InstitutionsOld Mutual plc is an international financial services
group based in London withexpanding operations in life assurance, asset
management, banking and generalinsurance. Old Mutual is listed on the
London Stock Exchange (where it is included on the FTSE 100 Index) and
also on the South African, Namibian, Malawi and Zimbabwestock
exchanges. It has 156 years of experience in the life insurance business. The
Products offered by the Company are

Individual Plan
•Kotak Endowment Plan
•Kotak Term Plan

29
•Kotak Retirement Income Plan
•Kotak Child Advantage Plan
•Kotak Preferred Term Plan
•Kotak Capital Multiplier Plan
•Kotak Safe Investment Plan
•Riders
•Exclusions Under Riders

Group Plan
•Kotak Term Group plan
•Kotak Gratuity Group plan
•Kotak Credit Term Group plan
•Riders
•Exclusions Under Riders
•Rural
•Kotak Gramina Bima Yojana

MET LIFE INSURANCE COMPANY

MetLife For almost 137 years, Metropolitan Life Insurance Company has
been insuring the livesof the people who depend on them. Their success is
based on their long history of socialresponsibility, strong leadership, sound
investments, and innovative products andservices.

30
MetLife Begins
The origins of Metropolitan Life Insurance Company (MetLife) go back to
1863, when agroup of New York City businessmen raised $100,000 to found
the National Union Lifeand Helping and Healing People In 1909, MetLife
Vice President Haley Fiske announced that “insurance, not merely as a
business proposition, but as a social program” would be the future policy of
the company

Supporting Country and Community

Over the years, MetLife has made a difference by supporting urban renewal
projects andcommunity financing. The company’s social commitment and
its commitment to thesecurity of its policyholders have proven to be good
business.

MetLife Today
In 2001 MetLife was the first insurance company to establish a
financialholding company with a nationally chartered bank.

Products Offered by the company are

1) Whole Life
•Met 100 Non par
•Met 100 Gold par

31
 •Met 100 Platinum par

2) Endowment
•Met Gold par
•Met Platinum par
•Met Junior par
•Met junior Non par

3) Money Back
•Met Sukh
•Met Junior MB

4) Term
•Met Mortagage Protector
•Met Riders
•Accidental death

BIRLA SUN LIFE INSURANCE COMPANY LIMITED

Birla Sun Life Financial Services offers a range of financial services for
resident Indiansand Non Resident Indians. Brought together by two large,
powerful and reputed businesshouses, the Aditya Birla Group and Sun Life
Financial , it is our aim to offer diverse andtop quality financial services to

32
customers. The Mutual Fund and Insurance companies provide wealth
management and protection products to customers while the Distribution
and Securities companies provide brokerage and trading services for
investment inequities, debt securities, fixed deposits, etc. Insurance is not
about something going wrong. It’s often about things going right. One of the
wonders of human nature is that we never believe anything can actually go
wrong. Surely, lifeits share of its. At Birla Sun Life however, they believe it
has its equally pleasant share of buts as well. Birla Sun Life stand committed
to help you realize those happy moments which make a life. Be living the
same lifestyle in your post retirement days or providing a secure future for
your loved ones, in case something happens to you.

The life insurance products offered by the company are

Individual life
•Premium Back Term Plan
•Flexi Secure Life Retirement Plan
•Single Premium Bond
•Birla Sun Life Term Plan
•Flexi Life Line Whole Life Plan
•Flexi Cash Flow Money back Plan

Group Life
•Pro Group Term Insurance
•Group Superannuation Plan
•Group Gratuity Plan
33
MAX NEW YORK LIFE INSURANCE COMPANY LTD.
Max New York Life today emerged as the country’s leading private life
insurance company having recorded a sum assured of over Rs 2100 crore
for the year of operations for Max New York Life. The company has sold
over 64,000 policies in the last financial year. The total annualized first year
premium for the financial year was over Rs 43 crore with the First Year
Premium Income amounting to over Rs 38 crore. This has exceeded the
expectations of the company and the projections as submitted to IRDA. Over
70 per cent of the premiaincome was from protection-oriented Whole Life
Policies, which reinforces the company’s focus on providing the true value
of life insurance to the customer. Given the better-than-expected
performance of the company, the shareholders haveincreased their
investment in the company to Rs 250 crore with an authorized sharecapital
to Rs 300 crore making Max New York Life Insurance Company among
thehighest capitalized life insurance companies in India. Max New York
Life also met its commitment for the rural and social sectors. The company
has 11 offices, over 1900 Agent Advisors and over 490 employees. Max
New York Life believes in delivering top value to all its stakeholders. As
part of the best practices adopted, the Company instituted satisfaction
survey’s conducted by independentagencies to measure the satisfaction
levels of its customers, agents and employees. Max New York Life has
clearly emerged as delivering top value across all these stakeholders New
York Life offers a suite of flexible products. It has eight base products and
nine options & riders that can be customized to over 250 combinations
enabling customers to choose the policy that best fits their need.

The products are –

• Whole Life Participating d Convertible
•Whole Life-Non-Participating
34
 •Children Endowment at age 18
•Children Endowment at age 24
•20-year Endowment Participating Policy
•Endowment to age 60
•Five-year Term Renewable
•Easy Term

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED

Bajaj Allianz life Insurance Company Limited is a joint venture between
Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of
expertise, stability and strength. Bajaj Allianz General Insurance received
the Insurance Regulatory and Development Authority (IRDA) certificate of
Registration (R3) on May 2nd, 2001 toconduct General Insurance business
(including Health Insurance business) in India. the company has an
authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74%and
Allianz, AG, holds the remaining 26%
Germany.
IN its first year of operations, the company has acquired the No. 1 status
amongthe private non-life insurers. As on 31st March 2003, Bajaj Allianz
General Insurancemaintained its leadership position by garnering a
premium income of Rs.300 Crores.Bajaj Allianz also became one of the few
companies to make a profit in its first full year of operations. Bajaj Allianz
made a profit after tax of Rs.9.6 crores. Bajaj Allianz today has a network
of 42 offices spread across the length and breadth of the country. From Surat
to Siliguri and Jammu to Thiruvananthapuram, all the offices are
interconnected with the Head Office at Pune.In the first half of the current
financialyear, 2011-12, Bajaj Allianz garnered a premium income of Rs.

35
2000 crores, achieving a growth of 84% and registered a 52%growth in Net
profits of Rs.200 Crores over the last year for the same period. In
thefinancial year 2011-12, the premium earned was Rs.4800 Crores.

36
1.3 INDUSTRY PROFILE
History and Development of Life Insurance Life Insurance, in its present form,
came to India from the United Kingdom with establishment of a British firm,
Oriental Life Insurance Company in Calcutta in 1818, followed by Bombay
Life Assurance Company in 1823, the Madras Equitable Life Insurance society
in 1829 and Oriental Government security Assurance Company in1874. Prior
to 1871, Indian Lives were treated as sub-standard and charged an extra
premium of 15% to 20%. Bombay Mutual Life Assurance Society, a Indian
insurer which came into existence in 1871 was the first to cover Indian lives at
normal rates. The Indian life Assurance Companies Act, 1912 was the first
statutory measure to regulate life insurance business. Later, in 1928, the Indian
Insurance Companies Act was enacted, to enable the government to collect
statistical information about both life and non-life insurance business transacted
in India by Indian and foreign insurers, including the provident insurance
societies. Comprehensive arrangements were, however, brought into effect with
the enactment of the Insurance Act, 1938.

By 1956, 154 Indian insurers, 16 non-Indian insurers and 15 provident societies

were carrying online insurance business in India. On 19th January 1956, the
management of the entire life insurance business of 229 Indian insurers and
provident insurance societies and the Indian life insurance business of 16 non-
Indian Life insurance companies then operating in India, was taken over by the
central Government and then nationalized on 1stSeptember 1956 when the Life
Insurance Corporation came into existence. With largest number of life
insurance policies in force in the world, Insurance happens to be a mega
opportunity in India. It’s a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 billion. Together with banking
services, it adds about 7 per cent to the country’s GDP. Gross premium
collection is nearly 2 per cent of GDP and funds available with LIC for
investments are 8 per cent of GDP.

37
Yet, nearly 80 per cent of Indian population is without life insurance cover
while health insurance and non-life insurance continues to be below
international standards. And this part of the population is also subject to weak
social security and pension systems with hardly any old age income security.
This itself is an indicator that growth potential for the insurance sector is
immense.

A well-developed and evolved insurance sector is needed for economic

development as it provides longterm funds for infrastructure development and
at the same time strengthens the risk taking ability. It is estimated that over the
next ten years India would require investments of the order of one trillion US
dollar. The Insurance sector, to some extent, can enable investments in
infrastructure development to sustain economic growth of the country.

INSURANCE AND BUSINESS ENVIRONMENT

Insurance is considered as one of the important segment of the economy for its
growth and development. This industry provides long term funds which are
essential for the growth and development of the nation .so the growth of
insurance industry largely depends up on the environment in which they exists.
Here I would like to mention about Indian business environment and their
impact on insurance sector. There are two type of environment which affect the
business one is environment which is internal to the organization (internal
environment) and the other one which is external to the organization (external
environment). Internal environment includes management, technology,
competitors, employees, shareholders, policyholders, marketing intermediaries.
The external environment of insurance business has been classified in four
parts, namely legal, economic, financial, and commercial. Let us discus them
in detail by taking one by one.

38
THE INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY(IRDA)

The Malhotra Committee felt the need to provide greater autonomy to insurance
companies in order to improve their performance and enable them to act as
independent companies with economic motives. For this purpose, it had
proposed setting up an independent regulatory body- The Insurance Regulatory
and Development Authority. Based on the Malhotra committee report in April
2000 IRDA was incorporated. Since being set up as an independent statutory
body the IRDA has put in a framework of globally compatible regulations.
Section 14 of the IRDA Act 1999, lays the duties, power and functions of the
authority shall have the duty to regulate, promote and ensure orderly growth of
the insurance business and reinsurance business.

REFORMS AND IMPLICATIONS

The liberalizations of the Indian insurance sector has been the subject of much
heated debate for some years. The sector is finally set to open up to private
competition. The Insurance Regulatory and Development Authority bill will
clear the way for private entry into insurance, as the government is keen to
invite private sector participation into insurance. To address those concerns, the
bill requires direct insurers to have a minimum paid-up capital of Rest. 1 billion,
to invest policyholder’s funds only in India; and to restrict international
companies to a minority equity holding of 26 percent in any new company.
Indian Promoters will also have to dilute their equity holding to 26 percent over
a 10-year period.

Over the past three year, around 30 companies have expressed interest in
entering the sector and many foreign and Indian companies have arranged
alliances. Whether the insurer is old or new, private or public, expanding the
market will present challenges. A number of foreign Insurance Companies have
set up representative offices in India and have also tied up with various asset
39
management companies. Some of the Indian companies, which have tied up
with International partners, are.

Indian Partners International International Partners

Partners

Bombay Dyeing General Accident, General Accident, UK

UK

Tata American Int. Group, US American Int. Group, US

Dabur Group Liberty Mutual Fund, Liberty Mutual Fund, US

US

ICICI Prudential, UK Prudential, UK HDFC Standard Life, UK Winterthur

Insurance, Switzerland

Hindustan Times Commercial Union, Commercial Union, UK

UK

Ranbaxy Cigna, US Cigna, US

40
The likely impact of opening up of India’s insurance sector is that private
players may swamp the market. International insurers often derive a significant
part of their business from multinational operations. Multinational insurers are
indeed Keenly interested as; perhaps there home markets are saturated while
emerging countries have low insurance penetration and high growth rates.

TYPE OF LIFE INSURANCE POLICIES

Whole life insurance

Whole life is a form of permanent insurance, with guaranteed rates and

guaranteed cashvalues. It is the least flexible form of permanent insurance.

Universal life insurance

Universal life is similar to whole life, except that you can change the death
benefit (themoney paid to the beneficiary when the insured person dies), the
amount of premiumsand how often you pay the premiums.

Variable life insurance

Variable life insurance is the riskiest form of permanent insurance, but it can
also giveyou the best return for your money. Essentially, the life insurance
company will investyour insurance premiums for you. If the investments do
well, the death benefit and cashvalue of the policy go up. If they do poorly, they
go down. It’s a little like putting your savings into the stock market.

Group life insurance

41
Many companies allow their employees to buy group life insurance through the
company. Usually, you can get very good rates for this insurance but you have
to give the insurance up when you stop working there. For that reason, group
insurance can be a good way to buy a little extra life insurance, but it does not
make sense to make it your main policy.

There are a number of policies for specific insurance needs. Some of these
include:

1. Family income life insurance.

This is a decreasing term policy that provides a stated income for a fixed period
of time, if the insured person dies during the term of coverage. These payments
continue until the end of a time period specified when the policy is purchased.

2. Family insurance.

A whole life policy that insures all the members of an immediate family –
husband, wife and children. Usually the coverage is sold in units per person,
with the primary wage-earner insured for the greatest amount.

3. Senior life insurance.

Also known as graded death benefit plans, they provide for a graded amount to
be paid to the beneficiary. For example, in each of the first three to five years
after the insured dies, the death benefit slowly increases. After that period, the
entire death benefit is paid to the beneficiary. This might be appropriate if the
beneficiary is not able to handle a large amount of money soon after the death,
but would be in a better position to handle it a few years later.

42
4. Juvenile insurance.

This is life insurance on a child. Coverage is paid for by an adult, usually the
parents or guardians. Such policies are not considered traditional life insurance
because the child is not producing an income that needs to be protected.
However, by buying the policy when the child is young, the parents are able to
lock in an extremely low premium rate and allow many more years of tax-
deferred cash value build-up.

5. Credit life insurance.

This insurance is designed to pay off the balance of a loan if you die before you
have repaid it. Credit life insurance is available for many kinds of loans
including student loans, auto loans, farm equipment loans, furniture and other
personal loans including credit cards. Credit life insurance can be purchased by
an individual. Usually it is sold by financial institutions making loans, like
banks, to borrowers at the time they take out the loan. If a borrower dies, the
proceeds of the policy repay the loan directly to the lender or creditor.

6. Mortgage insurance

This decreasing term coverage is designed to pay off the unpaid balance of
mortgage if you die before the mortgage is paid off. Premiums are generally
level throughout the term of the policy. The policy is usually independent of the
mortgage, meaning that the financial institution granting the mortgage is
separate from the insurance company issuing the policy. The proceeds of the
policy are paid to the beneficiaries of the policy, not the mortgage company.
The beneficiaries not required to use the proceeds to pay off the mortgage

43
7. Annuity

An annuity is a form of insurance that enables you to save for your retirement.
Basically, you give the insurance company money for a certain period of time,
and then after you retire they will pay you a certain amount of money every
year until you die. There are many different forms of annuities. Most people
who buy annuities are 55 or older.

44
 Chapter – 2

OBJECTIVE OF THE STUDY

45
2.1 OBJECTIVE OF THE STUDY
•Ascertain the profile and characteristics of potential buyers.

•To have an insight into the attitudes and behaviors of customers.

•To find out the differences among perceived service and expected service.

•To produce an executive service report to upgrade service characteristics of

•Life insurance companies.

•To access the degree of satisfaction of the consumers with their current brand

•Of Insurance products.

46
 Chapter – 3

REVIEW AND LITERATURE

47
3.1 REVIEW AND LITERATURE
The literature review section critically examines the recent or historically
significant studies, company data or industry reports that acts as a basis for
proposed studies to begin with the research discussion of the related literature
and relevant secondary data from a comprehensive perspective, moving to more
specific studies, that are associate with research problem. Basically, the
literature should be applied to the study, then the researcher proposes. The
literature may also explain the needs for the proposed work to appraise the short
comings and informational gaps in secondary data sources.

To carry the research, work the researcher has gone through a few reports,
books, journals and websites. The details regarding Life Insurance Industry,
history, origin and growth of the industry are also taken from some books,
magazines etc. The sources of this information are as follows:

•Catalogues and Broachers from various life insurance companies.

•Articles from magazines and newspaper.

•Information from various websites

48
 Chapter – 4

RESEARCH AND
METHODOLOGY

49
4.1 RESEARCH DESIGN
A research design is a basic plan, which guides the researcher in the collection
and analysis of data required for practicing the research. Infect the research
design is the Conceptual structure where the research is conducted. It
constitutes the ‘Blue Print’ for the collection, measurement and analysis of the
data. The study is carried out to understand the Consumer Perception about life
insurance companies in Bangalore city .For this study the researcher used
exploratory research design. This research covers50 consumers in Bangalore
city, belonging to various age groups.

4.2 SAMPLE OF DESIGN

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

Sampling Unit:
The sample unit of this survey was the customers having life insurance policies
in Mumbai city.

Sample Size:
The sample size was 50 customers of different life insurance companies, from
the various parts of the Mumbai city.

Sampling Technique Adopted:

Convenient sampling

50
4.3 SOURCES OF DATA
After identifying and defining the research problem and determining specific
information required to solve the problem the researcher will look for the type
and sources of data which may yield the desired results, while deciding about
the method of data collection to be used for the study, there are two types of
data.

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

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

51
 Chapter – 5

LIMITATIONS OF THE
STUDY

52
5.1 LIMITATIONS OF THE STUDY
Although the Study was carried out with extreme enthusiasm and careful
planning there are several limitations, which handicapped the research
viz.

Time Constraints:

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

Sample size:

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

Accuracy:

It is difficult to know if all the respondents gave accurate information;

some respondents tend to give misleading information.

53
 Chapter – 6

ANALYSIS AND
INTERPRETATION

54
6.1 INTRODUCTION TO ANALYSIS:

In order to extract meaningful information from the data them. The

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

55
6.2 DATA ANALYSIS TOOLS USED:

In this research the data analysis tools used are percentages and graphs.
Thevarious attributes were analyzed separately and the importance to each
wascalculated on the basis of the percentage. The rank having the maximum
percentage was taken to be preferred importance to the particular
attribute.After looking at each attribute separately, all the attributes were
consideredtogether to develop a map on the most preferred rank for all the
attributes.

•COVID-19 BENEFIT BY INSURANCE COMPANY

[6.1.fig]

56
Majority of the respondents are receiving COVID-19 benefits from their
insurance company/agent.

Growth of Indian Life Insurance Industry- 2018 Vs 2019

Particulars 2018 2019 Growth%

Premium (Crores) 193866.2 214672.86 10.73%

Number of Policies 28198778 28687812 1.73%

Sum Assured (Crores) 3882172 4333541 11.63%

Table 1: Growth In Life InsuranceIndustry-2018 Vs 2019

Source: insurancefunda.in

From the above table we can see that, if we compare the performance of
Indian Insurance Industry’s performance over the last two years i.e. 2018
and 2019, it is found that –

57
•The growth rate of premium collection has been increased to 10.73% in
2019 as compare To 2018.

•1.73% is the growth rate in 2019 as compare to 2018 in terms of number of

new policy Issued.

•The underwritten sum assured value has been increased to 11.63% in 2019
as compare to 2018.

It is found that, Indian insurance industry is having a steady growth of

around 14.44% over the Last six years i.e. from 2012 to 2018. In spite of
having the steady growth, the market penetrations of insurance companies
are not so satisfied. As per the data of 2017, the rate of life Insurance was
around 2.76% and if we combined life and non-life insurance together it was
Around 3.69%. Private insurance companies are coming into picture now a
day. The market share Of private insurance companies was 2.00% in 2003
and that has been increased to 33.76% in 2019.

6.2.Total Investment of Indian Life Insurance Sector

Sector 2018 (in Crores) 2019 (in Crores) Growth rate in 2019
(%)

58
Public 2526923 2760658 9.25

Private 662137 772485 16.67

Total 3189060 3533143 10.79

Table 2: Total Investment of Life Insurance Sector; Source: IRDAI 2018-19

Annual Report

Funds allocation of investment sector in different categories of insurance

depends on the amount of investments. As on 31st March 2019 the amount
of investment in public sector life insurance was 2760658 crores which is
9.25% higher than last year investment and the amount in private sector was
772485 crores which is 16.67% higher than last year.

59
 [6.2.fig]

Total amount of Investment as on 31st March; in Life insurance industry

including public and private sector - in 2018 it was 3189060 crores and in
2019 it was 3533143 crores. The total investment in 2019 has been increased
to 10.79%.

60
6.3.Investment of Life Insurance – Fund Wise

Insurer Life Fund(in Pension Unit Link Total Fund

Crores) andgeneral Fund (in (In crores)
Annuity & Crores)
Group
fund(in
Crores)

LIC 2042651 683735 34272 2760658

Private 304804 90527 774262 772485

Total 304804 774262 411425 3533143

The above table shows the fund wise investment of life insurance as on 31st
March, 2019. Total Investment in LIC was 2760658 crores and total
investment in Private insurance sector was 772485 crores.

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 [6.3fig]

The investment in all the funds was 3533143 crores; among which 66.44%
investment was in life fund, 21.91% in pension and general annuity & group
fund and finally 11.65% in unit linked fund.

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6.4.Insurance Density and Penetration in India

Year Life Non life Overall

Density Penetration Density Penetration Density

(USD) (%) (USD) (%) (USD)

2014 44 2.6 11 0.7 55

2015 43.2 2.72 11.5 0.72 54.7

2016 46.5 2.72 13.2 0.77 59.7

2017 55 2.76 18 0.93 73

2018 55 2.74 19 0.97 74

Insurance penetration and insurance density help in measuring the level of

development of insurance sector in a country. The contribution of insurance
premium to the country’s GDP isknown as insurance penetration and
insurance density is measured as the ratio of premium to the Population.

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From the above table we can see that except 2015 in ‘life insurance sector’
the insurance density Has been continuously increasing from 2014 to 2018
for both life as well as non-life sector. Due To the decrease in density in life
insurance sector in 2015, the overall industry density had also Decreased on
that particular year; otherwise the density as an overall is increasing
continuously From 2014 to 2018.

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[6.4 fig]

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6.5: Geographical Distribution of Life Insurance Offices in India

Region LIC (%) Private (%) Industry (%)

Metro 17.3 30.1 124.5

Urban 19.8 47 35.1

Semi Urban 59.4 22 38.4

Rural 3.5 0.9 2

From the above table we can see that the number of offices of LIC is higher
in semi-urban area i.e. as compare to metro, urban and rural area. While the
number of offices of private sector is higher in urban area i.e. 47% as
compare to other region.If we compare the number of offices overall in the
insurance industry, it would found that –

Semi-urban area is having more number of offices i.e. 38.40% where the
population is in between 10,000 to 99,999.

• 35.10% offices are located in urban areas where the population is in

between 1,00,000 to 9,99,999.

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• 24.50% offices are in the metro areas where the population is 10 lakh and
above.

• As the population is very less in rural region which is less than 10,000; that
is why the number of insurance offices are very less here i.e. only 2%.

[6.5fig]

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Chapter – 7

FINDINGS

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7.1 FINDINGS
 The majority of respondents belonged to the age group of 19 to 28years
which formed 48% followed by age group of 29 to 38 years which formed
26%.
 The male consumers capture the Market share with 68%, followed bythe
female consumers with 32%.
 The majority of the consumers of life insurance companies are private
employees with 48% and Government employees with 40%
 The dominant income group having life insurance group belong to thegroup
of 10001 to 15,000 followed by 5,001 to 10,000.
 LIC has a major market share of 78%.
 The factors which influenced to select a life insurance company is the
personal factor, followed by family, friends, agents and advertisements.
 The value of respondent’s life insurance policy costs more than1, 00,000
followed by 50,000 to 1,00,000.
 Majority of the people (52%) prefer to invest in bank others (48%) prefer to
invest in insurance company.
 Majority of consumers are satisfied with the service and quality of products
of their life insurance companies.
 Majority of consumers (78%) would like to communicate the service offered
by life insurance companies.

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 Majority of consumers (58%) are aware about 5 to 7 life insurance
companies.
 LIC stands first followed by ICICI prudential, followed by HDFCStandard
Life.

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 Chapter – 8

RECOMMENDATIONS AND
SUGGESTIONS

71
8.1 RECOMMENDATIONS AND SUGGESTIONS
With regard to insurance companies, consumers respond at different rates,
depending on the consumers characteristics. Hence Insurance companies
should try to bring their new product to the attention of potential early
adopters.

A) Due to the intense competition in the life insurance market, the life
insurance companies have to adopt better strategies to attract more
customers.

B) Keeping the cost, quality and return on investment in tact is necessary in

order to tackle the competition.

C) Life insurance products are taken mainly by middle- and higher-income

group. Hence, they should be regarded as maim targeted income groups.
Life insurance products which are suitable for lower income group should
also be released so that the market share increases.

D) Return on investment, company reputation and premium outflow are

most preferred attributes that are expected by the respondents. Hence greater
focus should be given to these attributes.

E) Private life insurance companies should adopt effective promotional

strategies to increase the awareness level among the consumers.

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F) Life insurance companies should ask for their consumer feedback to
know whether the consumers are really satisfied or dissatisfied with the
service and product of the companies. If they are dissatisfied, then the
reasons for dissatisfaction should be found out and should be corrected in
future.

G) The LIC brand name has earned a lot of goodwill and enjoys a high brand
equity. As there is intense competition in life insurance market, LIC should
work hard to maintain its top position and offer better service and product.

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 Chapter – 9

CONCLUSIONS

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8.1 CONCLUSIONS
Insurance policy is an investment-oriented plan. As compared to other
investment plans, the investment portfolio of the Insurance Policy functions like
a mutual fund another investment. It is invested in a portfolio of debt and equity
instruments, inconformity with the announced investment policy. Hence it
grows or erodes in line with the performance of that portfolio. From this study
it reveals that the consumer’s attitude towards Insurance Policy and Insurance
Company changed a lot. 5 years before the consumers and the general public
were not interested to take an Insurance Policy but now days there are many
options and choices in front of the customers. They are interested to take high
return policies in order to secure their lives. People are aware of all the benefits
and returns of insurance policies. As a result of this new international and
domestic companies are coming to the IndianMarket.Since there are many
players in the Indian Insurance Market the competition level is very high. So,
the companies are introducing new schemes. From this it is found that The LIC
is the major market share holder in the insurance field. Even if there are many
players in this field still it is an untapped market. Only a few portions of Indian
population are insured.

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BIBLIOGRAPHY
1)Dr. Singh, Avtar, Principles of Insurance Law, S Chand & Sons, Delhi,2003.

Newspapers:• Economic Times

• Business Line

World Wide Web:

• www.lic.com

• www.irda.org

• www.wikipedia.com

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QUESTIONNAIRE
A STUDY CONDUCTED TO UNDERSTAND THE CONSUMER’S

1.Do you have a Life insurance policy with any insurance company?

- Yes

- No

2.Are you satisfied with your current Life insurance company?

- Yes

- No

3.What factors influenced to select a Life Insurance company?

- Personal interest

- Agents

- Family

- other

4.Would you like to continue with the same life insurance company?

- Yes

- No

5.Any Suggestions for improving the service offered by life insurance

companies.

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