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CONCEPTUAL BACKGROUND
Satisfaction is defined as . . .
Consumer Behavior:
Consumer behavior is defined as the behavior that consumers display in searching for,
purchasing, using, evaluating and disposing of products and services that they expect will
satisfy their needs.
The study of the processes involved when individuals or groups select, purchase, use, or
dispose of products, services ideas, or experiences to satisfy needs and desires
Customer value: The ratio between the customerss perceived benefits (economic, functional
and psychological) and the resources (momentary, time, effort, psychological) used to obtain
those benefits.
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Motivation: The processes that account for an individuals intensity, direction, and
persistence of effort toward attaining a goal.
Personality can be described ad the psychological characteristics that both determine and
reflect how person responds to his or her environment.
Perception is defined as the process by which an individual selects, organizes, and interprets
stimuli into a meaningful and coherent picture of the world.
Consumer learning is the process by which individuals acquire the purchase and
consumption knowledge and experience they apply to future related behavior.
The consumer adoption process is the process by which customers learn about new products,
try them, and adopt or reject them. Today many marketers are targeting heavy users and early
adopters of new products recognizing that specific media can reach both groups and tend to be
opinion leaders. The consumer adoption process is influenced by many factors beyond the
marketers control, including consumers and organizations willingness to try new products,
personal influences and the characteristics of the new products or innovations
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An innovation refers to any good, service, or idea. That is perceived by someone as new. The
idea may have long history, but it is an innovation to the person who sees it as new. Innovation
takes time to spread through the special system. The consumer adoption process focuses on
the mental process through which an individual passes from first hearing about an innovation
to final adoption. Adopters of new products have moved through the following five stages.
1. AWARENESS: The consumer becomes aware of the innovation but lacks information
about it.
2. INTEREST: The consumer is stimulated to see the information about the innovation.
3. EVALUATION: The Consumer considers whether to try the innovation or not.
4. TRIAL: The consumer tries the innovation to improve his estimate of its value.
5. ADOPTION: The consumer decides to make full and regular use of the innovation.
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For every problem there is a research. As all the researches are based on some and
my study is also based upon some objective and these are as follows.
1. To understand the insurance business and products of LIClife insurance co ltd. & Bajaj
Allianze Life Insurance Co. Ltd.
2. To find out the peoples perception about life insurance.
3. To find out whether people were really aware of life insurance.
4. To find out how people think about private life insurance.
5. To find out what respondents expect from life insurance.
6. To understand Consumer buying behavior
7. To come out with conclusion and suggestions based on the analysis and the
Interpretation of data.
COMPANY PROFILE
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Every day we wake up to the fact that more than 220 million lives are part of our family called
LIC.
We are humbled by the magnitude of the responsibility we carry and realise that the lives that
are associated with us are very valuable indeed.
Although this journey started five decades ago, we are still conscious of the fact that, while
insurance may be a business for us, being part of millions of lives every day for the past 52
years
has
been
process
called
TRUST.
52 Years Of Trust
Thy Name Is LIC
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Indian Soil. All the insurance companies established during that period were brought up with
the purpose of looking after the needs of European community and Indian natives were not
being insured by these companies. However, later with the efforts of eminent people like Babu
Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian
lives were being treated as sub-standard lives and heavy extra premiums were being charged
on them.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started
functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started
its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
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1956: 245 Indian and foreign insurers and provident societies are taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance
Oriental
Company
Insurance
Ltd.,
Company
the
Ltd.
New
India
and
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the
Assurance
United
India
Company
Insurance
Ltd.,
the
Company
BOARD OF DIRECTORS
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The Operations department oils the work processes between the customer and the company to
ensure consistent and quality service to the customer. To streamline the operations, the
Operations department interfaces between the clients and the agents, the branches and the
underwriters, and manages work processes.
The Vision at Customer Service is to deliver World Class Service at every opportunity. Units
such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution
Unit are all committed to providing effective solutions to over lakhs of customers across the
country.
Information Technology
The Information Technology function at LICis committed to enable business through the use
of technology. It is segmented into 4 groups to enable highest levels of delivery to the
customers: Life Asia Solutions Group that provides flexibility in designing better product
offerings to end-users, the Solutions Group- Web that provides real-time information to
customers and is responsible for customer relationship management, IT Architecture &
Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT
architecture for the enterprise as a whole. This team works as an in house R&D Solution
Group, exploring new technological initiatives and also caters to information needs of
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Marketing
The Marketing function at ICICI Pru covers an array of activities - brand and media
management, channel support, direct marketing and corporate communications. The Brand
and Communications team is in charge of advertising, consumer research, media planning &
buying and Public Relations; that helps develop and nurture ICICI Prudential's corporate
identity while effectively communicating its varied product offerings to the customer. Channel
marketing provides support to the sales force by streamlining the design and development of
collaterals and sales tools across distribution channels. The Direct marketing team was set up
to generate high quality leads for profitable business. The team achieves this through target
database acquisition and communicating customized product information through e-mailers,
telemarketing and innovative direct mailers.
Finance
Finance function in LICis committed to create an infrastructure that is aligned to shareholder
expectations. Finance basically comprises of four functions. . Corporate Planning and MIS
provide feedback on business strategies. This includes driving the budgeting process,
providing strategic inputs for decision-making and management reporting and analysis. The
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Human Resource
The people strategy of LICis To build a committed team with a culture of innovation,
learning and growth. The Human Resource Function at LICdrives the people strategy of the
business. With its initial focus on operational excellence to deliver benefits and services to
staff members, HR is now committed to building capability through state of the art processes.
A robust performance management system, compensation system and a segmented training
architecture enable it to deliver value to the organization.
Business Excellence
The Business Excellence function is committed to building a quality mindset across the
organization. LICis the first organization in the Insurance Industry that has adopted the Six
Sigma Methodology for process efficiency and measurement. The team is also driving the
Malcolm Baldrige framework across the organization, an intervention that examines
management of key inputs for Business Excellence.
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Bancassurance
One of the most significant advances in the financial services sector over the past couple
of years has been the growth of Bancassurance which, in simplest terms, means the
distribution of insurance products through a banks distribution channels. In other words,
Bancassurance is a service which can fulfill both banking and insurance needs at the same
time.
Bancassurance as a concept first began in India with the opening up of the insurance
industry to private sector participation in December 1999 which saw the entry of 20 new
players - with 12 in the life insurance sector and 8 in the non-life sector. Bancassurance
has also seen significant rise in other Asian markets. For example, Bancassurance
accounted for 24% of new life insurance sales by weighted premium income in
Singapore in 2002. This is a significant increase on the equivalent 2001 statistic of 15%
and is as a result of growth in significant bank-centric Bancassurance operations.
Although the concept of Bancassurance looks simple enough, it is far from that in real life
practice. Legislative differences, consumer behavior, impact of history and culture,
product complexity, employee work culture and many such other factors have contributed
to significant differences in results across countries. For example, in France and Spain
60% to 80% of life insurance products are sold through bank branches compared to 10%
in UK and USA.
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BAJAJ ALLIANZE
Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance
Company and Bajaj Finserv. (recently demerged from Bajaj Auto.)
Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers
in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE
has over 115 years of financial experience and is present in over 70 countries around the
world.
At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business
philosophy is to ensure excellent insurance and investment solutions by offering customized
products, supported by the best technology.
It started in 2001.
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The groups life insurance arm, Bajaj Allianz Life Insurance Company, was the biggest
contributor to the firms income. Bajaj Allianz has posted a profit of Rs 68 crore in the June
quarter. In the year-ago quarter, it had posted a loss of Rs 3 crore.
Gross written premium for the quarter rose 40 per cent to Rs 2,001 crore as against Rs 1,847
crore in the corresponding period last year. Renewal premium, too, increased to Rs 1,423
crore as against Rs 1,018 crore in the quarter ended June 30, 2008. However, new business
premium fell 42.28 per cent to Rs 577 crore.
ALLIANZ GROUP
Allianz Group is one of the world's leading insurers and financial services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000
employees. At the top of the international group is the holding company, Allianz AG, with its
head office in Munich.
Allianz Group provides its more than 60 million customers worldwide with a comprehensive
range of services in the areas of
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3rd largest Assets under Management (AUM) & largest amongst Insurance cos. AUM of Rs.51, 96,959 crore.
BAJAJ GROUP
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest
manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous
with quality & customer focus.
A STRONG INDIAN BRAND- HAMARA BAJAJ
Bajaj Auto finance one of the largest auto finance cos. in India
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It has joined hands with Allianz to provide the Indian consumers with a distinct option
in terms of life insurance products.
As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following
to offer -
A strong brand-equity.
Accelerated Growth
Fiscal Year
2001-2002(6 months)
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
New Business in FY
Rs.
7 cr.
Rs. 63.3 cr.
Rs. 180 cr.
Rs. 857 cr.
Rs. 2,717 cr.
Rs. 4,302 cr.
Rs. 6,674 cr.
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People are yet to be insured. Also in broader perspective, company wants to make every
person get benefited through investing in Bajaj Allianz Life Insurance.
The Company is focusing on improving employee productivity, policy persistency, operational
processes and service levels.
Vision of the Company
1) To be the first choice insurer for customers.
2) To be the preferred employer for staff in Insurance industry.
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with quality & customer focus. With over 15,000 employees, the company is a Rs. 4000 crore
auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th largest in the world.
AAA rated by Crisil, Bajaj Auto has been in operation for over 55 years. It has joined hands
with Allianz to provide the Indian consumers with a distinct option in terms of life insurance
products.
BOARD OF DIRECTORS:
Mr. Rahul Bajaj (Chairman)
Dr. Werner Zedelius
Mr. Sanjay Asher
Mr. Niraj Bajaj
Mr. Sanjiv Bajaj
Mr. Heinz Dollberg
Mr. Ranjit Gupta
Mr. S. H. Khan
Mr. Suraj Mehta
Mr. Dietmar Raich
Mr. Manu Tandon
Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)
RESEARCH METHODOLOGY
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Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
topic.
The word research has been derived from French word Researcher means to search.
FRANCIES RUMMER defined Research: It is a careful inquiry or examination to
discover new information or relationship and to expand or verify existing
knowledge.Research is the solution of the problem, whether created or already
generated. When research is done, some new out come, so that the problem (created or
generated) to be solved.
RESEARCH DESIGN:
Research Design is the conceptual structure within which research is conducted. It
constitutes the blueprint for collection, measurement and analysis of data. The design
used for carrying out this research is Descriptive.
Primary data
Secondary data
Questionnaire
Books
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Websites
Magazine
Brochure
SAMPLING PLAN:
It is very difficult to collect information from every member of a population .As time
and costs are the major limitation that the researcher faces.
A sample of 100 was taken the sample size of 100 individuals were selected on the
basis of convenient sampling technique. The individuals were selected in the random
manner to form sample and data were collected from them for the research study.
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PARTICTULARS
Less than 25
25 - 35
35 - 45
Above 45
TOTAL
NO.OF.RESPONDENT
11
40
20
29
100
PERCENTAGE
11%
40%
20%
29%
100
INTERPREATION:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
NO.OF.RESPONDENT
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PERCENTAGE
Graduate
Post Graduate
Diploma
Other discipline
TOTAL
52
29
8
11
100
52%
29%
8%
11%
100%
INTERPREATION:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
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PARTICULARS
Business man
Professionals
Job holders
Others
TOTAL
NO.OF.RESPONDENT
34
18
37
11
100
PERCENTAGE
34%
18%
37%
11%
100%
INTERPREATION:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
FINDINGS
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On an analysis and evaluation of the data collected from the respondents the following
findings were found.
Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan
65% respondent are prefer LIC Life Insurance Co. & 35% respondent are prefer Bajaj
Allianz Life Insurance Co.
Above 20% of respondents are shown interest for investment and financial plan
About 33.33% of respondents are not interest to give their personal records.
About 10% of respondents interested for investment plan after knowing LIC LIFE
INSURANCE products.
CONCLUSION
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Since LIC Life Insurance co. ltd is the largest in terms of FDI invested, in terms of work force,
in terms of market share, in terms of no. of customers. All these positive stands of the
company place at the number one position. On second aspect whatever amount of money
LICsave, can be used to increase the no. of policies, which will helpful to increase the market
share of the company. Since the customers think about the companies in the industry, when
they invest money in the life insurance industry. So its necessary to increase the market share
of the company.
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SUGGESTIONS
LIMITATIONS
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BIBLIOGRAPHY
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IRDA Journal
WEBSITES
http//www.lic.com
www.bajajallianz.com
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