A

SUMMER TRAINING REPORT

ON
A STUDY OF BUYING BEHAVIOUR OF CONSUMERS TOWARDS
LIFE INSURANCE POLICIES

UNDER

Submitted In Partial Fulfillment Of The Requirement For Bachelor Of

Business Administration(2015-18)

Under The Guidance Of

Ms.

SUBMITTED BY

Ms. ITISHA RANA

ENROLLMENT NO

44190101715

BBA(G) 5th SEMESTER

Batch : 2015-18

FAIRFIELD INSTITUTE OF MANAGEMENT & TECHNOLOGY

Affiliated To Guru Govind Singh Indraprastha University, Delhi

i
 FIMT Campus, Kapashera, New Delhi-110037
TABLE OF CONTENTS

S.NO. TITLE PAGE NO.

1 Student Declaration (i)

3 Certificate from Guide (ii)

4 Acknowledgement (iii)

5 Executive Summary (iv)

Chapter - 1: INTRODUCTION
6 1.1 About the Industry 01-34
1.2 About Company Profile

Chapter - 2: LITERATURE REVIEW

7 2.1 Literature Review 35-46

Chapter - 3: RESEARCH METHODOLOGY

8 3.1 Objective of the study 47-53
3.2 Research Methodology of the study

9 Chapter - 4: ANALYSIS& INTERPRETATION 54-65

Chapter - 5: FINDINGS & SUGGESTIONS

10 5.1 Findings 66-68
5.2 Suggestions

11 Chapter - 6: CONCLUSION 69-70

12 BIBLIOGRAPHY 71

13 QUESTIONNAIRE 72-74

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 STUDENT DECLARATION

I hereby declare that this Summer Training Report titled A STUDY OF BUYING

BEHAVIOUR OF CONSUMERS TOWARDS LIFE INSURANCE POLICIES

submitted by me to Fairfield Institute of Management And Technology, Kapashera is a

bonafide work undertaken during the Vth Semester by me and has not been submitted to any

other University or Institution for the award of any degree diploma / certificate or published

any time before.

Date:
Name:
Enroll. No.:
Course: BBA (Vth Section)

(Signature of the Student)

iii
 CERTIFICATE FROM GUIDE

This is to certify that as per best of my belief the project entitled A STUDY OF BUYING

BEHAVIOUR OF CONSUMERS TOWARDS LIFE INSURANCE POLICIES is the

bonafide research work carried out by (ITISHA) student of BBA, FIMT (Fairfield Institute

of Management And Technology), Kapashera, New Delhi, in partial fulfillment of the

requirements for the Summer Training Report of the Degree of Bachelor of Business

Administration. He / She has worked under my guidance.

(Signature of Guide)

iv
 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to Fairfield Institute Of Management And
Technology, GGSIP University, New Delhi for imparting us very valuable professional
training in BBA.

I pay my gratitude and sincere regards to Ms. Jaspreet, my project Guide for giving me the
best of his/her knowledge. I am thankful to him/her as he/she has been a constant source of
advice, motivation and inspiration. I am also thankful to him/her for giving his suggestions
and encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and
library staff for providing me opportunity to utilize their resources for the completion of
the project.

I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment, which enhanced my knowledge.

Date:
Name:
Enroll. No.:
Course: BBA

(Signature of the Student)

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 EXECUTIVE SUMMARY

Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and
investment company headquartered in Mumbai. It is the largest insurance company in India
with an estimated asset value of 1,560,482 crore (US$240 billion). As of 2013 it had total
life fund of Rs.1433103.14 crore with total value of policies sold of 367.82 lakh that year.

The Life Insurance Corporation of India was founded in 1956 when the Parliament of India
passed the Life Insurance of India Act that nationalised the private insurance industry in
India. Over 245 insurance companies and provident societies were merged to create the state
owned Life Insurance Corporation. Key advertising elements such as endorser, user imagery,
symbols and execution elements contribute to Brand personality.

LIC holds shares worth about Rs 2.33 lakh crore in all the Nifty companies put together, but
it lowered its holding in a total of 27 Nifty companies during the quarter.

The cumulative value of LIC holding in these 27 companies fell by little over Rs 8,000 crore
during the quarter shows the analysis of changes in their shareholding patterns.

Individually, LIC is estimated to have sold shares worth Rs 500-1,000 crore in each of
Mahindra & Mahindra, HDFC Bank, ICICI Bank, Tata Motors, L&T, HDFC, Wipro, SBI,
Maruti Suzuki, Dr Reddys and Bajaj Auto.

The insurance behemoth also trimmed holdings in Ambuja Cements, Cipla, TCS, Lupin and
Asian Paints. A marginal decline was also witnessed in its stakes in companies such as IDFC,
Hindustan Unilever, Grasim, ACC, BPCL, Bank of Baroda, Punjab National Bank, Sun
Pharma and Tata Power.

On the other hand, LIC further ramped up its stake in a total of 14 Nifty constituents with
purchase of shares worth an estimated Rs 4,000 crore.

The major companies where LIC has raised its stake include Infosys, RIL, Coal India Ltd and
Cairn India. Other such companies are ITC, Power Grid Corp, NTPC, Siemens, Bharti Airtel
and Hero MotoCorp.

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The state-run insurer also marginally hiked its exposure in Ultratech, Gail India, Ranbaxy,
Kotak Mahindra Bank and HCL Technologies, while its shareholding remained almost
unchanged in companies like ONGC, Tata Steel, BHEL and Reliance Infra.

Among the Nifty companies, LICs holding in terms of value in 2012 were estimated to be
the highest in ITC (Rs 27,326 crore), followed by RIL (Rs 21,659 crore), ONGC (Rs 17,764
crore), SBI (Rs 17,058 crore), L&T (Rs 16,800 crore), and ICICI Bank (Rs 10,006 crore).

The share price drop in ITC on July 18 2017 had caused LIC a major loss of around 7000
Crores.

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 CHAPTER-1
INTRODUCTION

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The meaning of insurance is important to understand for anybody that is considering buying
an insurance policy or simply understanding the basics of finance. Insurance is a hedging
instrument used as a precautionary measure against future contingent losses. This instrument
is used for managing the possible risks of the future.
Consumer behavior refers to the mental and emotional process and the observable behavior
of consumers during searching, purchasing and post consumption of a product or service.
Consumer behavior involves study of how people buy, what they buy, when they buy and
why they buy. It blends the elements from psychology, sociology, psychology, anthropology
and economics. It also tries to assess the influence on the consumer from groups such as
family, friends, reference groups and society in general.
Buyer behavior has two aspects: the final purchase activity visible to any observer and the
detailed or short decision process that may involve the interplay of a number of complex
variables not visible to anyone.
Marketing is a societal process by which individuals and groups obtain what they need and
want through creating offering and freely exchanging products and services of value with
others for a managerial definition marketing has often been described as The art of selling
the products but people surprised when they hear that the most important part of marketing
is not selling is only the trick of the marketing iceberg.
Companies practising the marketing concept work at the level of customer segments, a
growing number of todays companies are now shaping separate offers services and messages
to individual customers these companies collect information on each customers past
transaction demographics, psychographics and media and distribution preference,. They hope
to achieve profitable growth through capturing a larger share of each customers expenditure
by building high customer loyalty and focusing on customer life time value.
Ability of a company to deal with customers one at time has become practice as result of
advances in factory customisation computers the internet and data base marketing softwares
yet the practicing of a one to one marketing is not for every company the required investment
in information collection, hardware, and software may exceed the pay out. it works best for
companies that normally collect a great deal of individual customer information, carry a lot of
products that can be cross sold carry products that need periodic replacement or up grading
and self product of high value.
is the difference between the perspective customers evaluation of all the benefits and all the
costs of an offering and the perceived alternatives total customer value is the perceived
monitory value of the bundle of economic, functional, and psychological benefits customers
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except from a given market offering total customer cost is the bundle of costs customer
except to incur in evaluating, obtaining, using and disposing of the given market offering.

India is a country which is known for its unity in diversity. It is second in the world in terms
of the population. But when it comes to life insurance, it still ranks much lower compared to
western and other Asian countries.
As per Webster dictionary life insurance is providing for payment of a stipulated sum to a
designated beneficiary upon death of the insured. According to Business Dictionary,
Insurance cover serves two major purposes:
(1) To substitute for the insureds incomes if he or she dies, and
(2) To qualify the insured for favorable tax treatment.
Life insurance broadly covers the financial loss incurred to the family due to the death of the
insured. The insurance company compensates the insureds family by paying the sum
assured.
Life insurance is also considered as insurance cum investment plan, in which the policy is for
a stipulated period of time. The maturity is calculated at the death of the insured or the
completion of stipulated period of time, whichever is earlier. Therefore, the insured has the
possibility of enjoying the sum assured by him or her.
Statement of Problem
Abraham Maslows need hierarchy theory lists safety and security as an important need.
Buying behaviour is influenced by wide range of factors such as need, love, affection,
urgency, pride, envy etc. these factors are emotions based and an important emotional and
rational factors influencing buying behaviour also is safety and security. To build a sense of
safety and security for family, and to secure their future financial needs, the life insurance
policies have been designed. As the slogan of LIC very truly interprets, Jindagi ke saath bhi,
jindagi ke baad bhi
Need of the Study
Investment behaviour differs from one to another. Especially when it comes to insurance,
there is a large difference and influence of factors which also govern buying behaviour.
Women are 40% less impulsive when it comes to investment decisions as compared to men.
58% of women trust male members more when it comes to investment decision making and
therefore feel less confident over their investment abilities. Investment attitudes and decision
making of women are more conservative and thus they choose

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their portfolios diligently. So an effort is made to attempt and explore through a descriptive
research to find out buying behaviour of consumers towards life insurance policies.

A. INTRODUCTION OF INDUSTRY

The insurance industry of India consists of 53 insurance companies of which 24 are in life
insurance business and 29 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national re-
insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders in
Indian Insurance market include agents (individual and corporate), brokers, surveyors and
third party administrators servicing health insurance claims.

Out of 29 non-life insurance companies, five private sector insurers are registered to
underwrite policies exclusively in health, personal accident and travel insurance segments.
They are Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance
Company Ltd, Max Bupa Health Insurance Company Ltd, Religare Health Insurance
Company Ltd and Cigna TTK Health Insurance Company Ltd. There are two more
specialised insurers belonging to public sector, namely, Export Credit Guarantee Corporation
of India for Credit Insurance and Agriculture Insurance Company Ltd for crop insurance.

Market Size

Government's policy of insuring the uninsured has gradually pushed insurance penetration in
the country and proliferation of insurance schemes are expected to catapult this key ratio
beyond 4 per cent mark by the end of this year, reveals the ASSOCHAM latest paper.

The number of lives covered under Health Insurance policies during 2015-16 was 36 crore
which is approximately 30 per cent of India's total population. The number has seen an
increase every subsequent year as 28.80 crore people had the policy in the previous fiscal.

During April 2015 to March 2016 period, the life insurance industry recorded a new premium
income of Rs 1.38 trillion (US$ 20.54 billion), indicating a growth rate of 22.5 per cent. The
general insurance industry recorded a 12 per cent growth in Gross Direct Premium
underwritten in April 2016 at Rs 105.25 billion (US$ 1.55 billion). The life insurance

4
industry reported 9 per cent increase in overall annual premium equivalent in April-
November 2016. In the period, overall annual premium equivalent (APE)- a measure to
normalise policy premium into the equivalent of regular annual premium- including
individual and group business for private players was up 16 per cent to Rs 1,25,563 crore
(US$ 18.76 billion) and Life Insurance Corporation up 4 per cent to Rs 1,50,456 crore (US$
22.48).

Indias life insurance sector is the biggest in the world with about 360 million policies which
are expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over
the next five years. The insurance industry plans to hike penetration levels to five per cent by
2020.

The countrys insurance market is expected to quadruple in size over the next 10 years from
its current size of US$ 60 billion. During this period, the life insurance market is slated to
cross US$ 160 billion.

The general insurance business in India is currently at Rs 78,000 crore (US$ 11.44 billion)
premium per annum industry and is growing at a healthy rate of 17 per cent.

The Indian insurance market is a huge business opportunity waiting to be harnessed. India
currently accounts for less than 1.5 per cent of the worlds total insurance premiums and
about 2 per cent of the worlds life insurance premiums despite being the second most
populous nation. The country is the fifteenth largest insurance market in the world in terms of
premium volume, and has the potential to grow exponentially in the coming years.

Investments

The following are some of the major investments and developments in the Indian insurance
sector.

New York Life Insurance Company, the largest life insurance company in the US, has
invested INR 121 crore (US$ 18.15 million) in Max Ventures and Industries Ltd for a
22.52 per cent stake, which will be used by Max for investing in new focus areas of
education and real estate.
New York Life Investments, the global asset management division of New York Life,
along with other investors like Jacob Ballas, will own a significant minority

5
 ownership in Centrum Capital by being one of the leading global investors in buying
the available 30 per cent stake worth US$ 50 million of Centrum Capital.
Max Life Insurance Co Ltd and HDFC Life Insurance Co Ltd have signed a merger
agreement, which is expected to create India's largest private sector life insurance
company once the transaction is completed.
Aviva Plc, the UK-based Insurance company, has acquired an additional 23 per cent
stake in Aviva Life Insurance Company India from the joint venture (JV) partner
Dabur Invest Corporation for Rs 940 crore (US$ 141.3 million), thereby increasing
their stake to 49 per cent in the company.
Insurance firm AIA Group Ltd has decided to increase its stake in Tata AIA Life
Insurance Co Ltd, a joint venture owned by Tata Sons Ltd and AIA Group from 26 per
cent to 49 per cent.
Canada-based Sun Life Financial Inc plans to increase its stake from 26 per cent to 49
per cent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya Birla Nuvo
Ltd, through buying of shares worth Rs 1,664 crore (US$ 244.14 million).
Nippon Life Insurance, Japans second largest life insurance company, has signed
definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in order to
increase its stake in Reliance Life Insurance from 26 per cent to 49 per cent.
Bennett Coleman and Co. Ltd (BCCL), the media conglomerate with multiple
publications in several languages across India, is set to buy Religare Enterprises Ltds
entire 44 per cent stake in life insurance joint venture Aegon Religare Life Insurance
Co. Ltd. The foreign partner Aegon is set to increase its stake in the joint venture from
26 per cent to 49 per cent, following governments reform measure allowing the
increase in stake holding by foreign companies in the insurance sector.
GIC Re and 11 other non-life insurers have jointly formed the India Nuclear Insurance
Pool with a capacity of Rs 1,500 crore (US$ 220.08 million) and will provide the risk
transfer mechanism to the operators and suppliers under the CLND Act.
State Bank of India has announced that BNP Paribas Cardiff is keen to increase its
stake in SBI Life Insurance from 26 per cent to 36 per cent. Once the foreign joint
venture partner increases its stake to 36 per cent, SBIs stake in SBI Life will get
diluted to 64 per cent.

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Government Initiatives

The Union Budget of 2017-18 has made the following provisions for the Insurance Sector:

The Budget has made provisions for paying huge subsidies in the premiums of
Pradhan Mantri Fasal Bima Yojana (PMFBY) and the number of beneficiaries will
increase to 50 per cent in the next two years from the present level of 20 per cent. As
part of PMFBY, Rs 9,000 crore (US$ 1.35 billion) has been allocated for crop
insurance in 2017-18.
By providing tax relief to citizens earning up to Rs 5 lakh (US$ 7500), the
government will be able to increase the number of taxpayers. Life insurers will be
able to sell them insurance products, to further reduce their tax burden in future. As
many of these people were understating their incomes, they were not able to get
adequate insurance cover.
Demand for insurance products may rise as peoples preference shifts from formal
investment products post demonetisation.
The Budget has attempted to hasten the implementation of the Digital India initiative.
As people in rural areas become more tech savvy, they will use digital channels of
insurers to buy policies.

The Government of India has taken a number of initiatives to boost the insurance industry.
Some of them are as follows:

The Union Cabinet has approved the public listing of five Government-owned general
insurance companies and reducing the Governments stake to 75 per cent from 100
per cent, which is expected to bring higher levels of transparency and accountability,
and enable the companies to raise resources from the capital market to meet their fund
requirements.
The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue
redesigned initial public offering (IPO) guidelines for insurance companies in India,
which are to looking to divest equity through the IPO route.
IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1)
bonds, that are issued by banks to augment their tier 1 capital, in order to expand the
pool of eligible investors for the banks.

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 IRDAI has formed two committees to explore and suggest ways to promote e-
commerce in the sector in order to increase insurance penetration and bring financial
inclusion.
IRDAI has formulated a draft regulation, IRDAI (Obligations of Insures to Rural and
Social Sectors) Regulations, 2015, in pursuance of the amendments brought about
under section 32 B of the Insurance Laws (Amendment) Act, 2015. These regulations
impose obligations on insurers towards providing insurance cover to the rural and
economically weaker sections of the population.
The Government of Assam has launched the Atal-Amrit Abhiyan health insurance
scheme, which would offer comprehensive coverage for six disease groups to below-
poverty line (BPL) and above-poverty line (APL) families, with annual income below
Rs 500,000 (US$ 7,500).
The Uttar Pradesh government has launched a first of its kind banking and insurance
services helpline for farmers where individuals can lodge their complaints on a toll
free number.
The select committee of the Rajya Sabha gave its approval to increase stake of foreign
investors to 49 per cent equity investment in insurance companies.
Government of India has launched an insurance pool to the tune of Rs 1,500 crore
(US$ 220.08 million) which is mandatory under the Civil Liability for Nuclear
Damage Act (CLND) in a bid to offset financial burden of foreign nuclear suppliers.
Foreign Investment Promotion Board (FIPB) has cleared 15 Foreign Direct
Investment (FDI) proposals including large investments in the insurance sector by
Nippon Life Insurance, AIA International, Sun Life and Aviva Life leading to a
cumulative investment of Rs 7,262 crore (US$ 1.09 billion).
IRDAI has given initial approval to open branches in India to Switzerland-based
Swiss Re, French-based Scor SE, and two Germany-based reinsurers namely,
Hannover Re and Munich Re.

Health insurance is insurance that covers the whole or a part of the risk of a person incurring
medical expenses, spreading the risk over a large number of persons. By estimating the
overall risk of health care and health system expenses over the risk pool, an insurer can
develop a routine finance structure, such as a monthly premium or payroll tax, to provide the
money to pay for the health care benefits specified in the insurance agreement. The benefit is
administered by a central organization such as a government agency, private business, or not-

8
for-profit entity. According to the Health Insurance Association of America, health insurance
is defined as "coverage that provides for the payments of benefits as a result of sickness or
injury. It includes insurance for losses from accident, medical expense, disability, or
accidental death and dismemberment" (pg. 225).

Background

A health insurance policy is:

1. A contract between an insurance provider (e.g. an insurance company or a

government) and an individual or his/her sponsor (e.g. an employer or a community
organization). The contract can be renewable (e.g. annually, monthly) or lifelong in
the case of private insurance, or be mandatory for all citizens in the case of national
plans. The type and amount of health care costs that will be covered by the health
insurance provider are specified in writing, in a member contract or "Evidence of
Coverage" booklet for private insurance, or in a national health policy for public
insurance.
2. (US specific) Provided by an employer-sponsored self-funded ERISA plan. The
company generally advertises that they have one of the big insurance companies.
However, in an ERISA case, that insurance company "doesn't engage in the act of
insurance", they just administer it. Therefore, ERISA plans are not subject to state
laws. ERISA plans are governed by federal law under the jurisdiction of the US
Department of Labor (USDOL). The specific benefits or coverage details are found in
the Summary Plan Description (SPD). An appeal must go through the insurance
company, then to the Employer's Plan Fiduciary. If still required, the Fiduciary's
decision can be brought to the USDOL to review for ERISA compliance, and then file
a lawsuit in federal court.

The individual insured person's obligations may take several forms:

Premium: The amount the policy-holder or their sponsor (e.g. an employer) pays to
the health plan to purchase health coverage.
Deductible: The amount that the insured must pay out-of-pocket before the health
insurer pays its share. For example, policy-holders might have to pay a $500
deductible per year, before any of their health care is covered by the health insurer. It

9
 may take several doctor's visits or prescription refills before the insured person
reaches the deductible and the insurance company starts to pay for care. Furthermore,
most policies do not apply co-pays for doctor's visits or prescriptions against your
deductible.
Co-payment: The amount that the insured person must pay out of pocket before the
health insurer pays for a particular visit or service. For example, an insured person
might pay a $45 co-payment for a doctor's visit, or to obtain a prescription. A co-
payment must be paid each time a particular service is obtained.
Coinsurance: Instead of, or in addition to, paying a fixed amount up front (a co-
payment), the co-insurance is a percentage of the total cost that insured person may
also pay. For example, the member might have to pay 20% of the cost of a surgery
over and above a co-payment, while the insurance company pays the other 80%. If
there is an upper limit on coinsurance, the policy-holder could end up owing very
little, or a great deal, depending on the actual costs of the services they obtain.
Exclusions: Not all services are covered. The insured are generally expected to pay
the full cost of non-covered services out of their own pockets.
Coverage limits: Some health insurance policies only pay for health care up to a
certain dollar amount. The insured person may be expected to pay any charges in
excess of the health plan's maximum payment for a specific service. In addition, some
insurance company schemes have annual or lifetime coverage maxima. In these cases,
the health plan will stop payment when they reach the benefit maximum, and the
policy-holder must pay all remaining costs.
Out-of-pocket maxima: Similar to coverage limits, except that in this case, the insured
person's payment obligation ends when they reach the out-of-pocket maximum, and
health insurance pays all further covered costs. Out-of-pocket maxima can be limited
to a specific benefit category (such as prescription drugs) or can apply to all coverage
provided during a specific benefit year.
Capitation: An amount paid by an insurer to a health care provider, for which the
provider agrees to treat all members of the insurer.
In-Network Provider: (U.S. term) A health care provider on a list of providers
preselected by the insurer. The insurer will offer discounted coinsurance or co-
payments, or additional benefits, to a plan member to see an in-network provider.
Generally, providers in network are providers who have a contract with the insurer to

10
 accept rates further discounted from the "usual and customary" charges the insurer
pays to out-of-network providers.
Prior Authorization: A certification or authorization that an insurer provides prior to
medical service occurring. Obtaining an authorization means that the insurer is
obligated to pay for the service, assuming it matches what was authorized. Many
smaller, routine services do not require authorization.
Explanation of Benefits: A document that may be sent by an insurer to a patient
explaining what was covered for a medical service, and how payment amount and
patient responsibility amount were determined.

Prescription drug plans are a form of insurance offered through some health insurance plans.
In the U.S., the patient usually pays a copayment and the prescription drug insurance part or
all of the balance for drugs covered in the formulary of the plan. Such plans are routinely part
of national health insurance programs. For example, in the province of Quebec, Canada,
prescription drug insurance is universally required as part of the public health insurance plan,
but may be purchased and administered either through private or group plans, or through the
public plan.

Some, if not most, health care providers in the United States will agree to bill the insurance
company if patients are willing to sign an agreement that they will be responsible for the
amount that the insurance company doesn't pay. The insurance company pays out of network
providers according to "reasonable and customary" charges, which may be less than the
provider's usual fee. The provider may also have a separate contract with the insurer to accept
what amounts to a discounted rate or capitation to the provider's standard charges. It
generally costs the patient less to use an in-network provider.

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Comparison

Health Expenditure per capita (in PPP-adjusted US$) among several OECD member nations.
Data source: OECD's iLibrary

The Commonwealth Fund, in its annual survey, "Mirror, Mirror on the Wall", compares the
performance of the health care systems in Australia, New Zealand, the United Kingdom,
Germany, Canada and the U.S. Its 2007 study found that, although the U.S. system is the
most expensive, it consistently under-performs compared to the other countries. One
difference between the U.S. and the other countries in the study is that the U.S. is the only
country without universal health insurance coverage.

Life Expectancy of the total population at birth from 2000 until 2011 among several OECD
member nations. Data source: OECD's iLibrary

The Commonwealth Fund completed its thirteenth annual health policy survey in 2010. A
study of the survey "found significant differences in access, cost burdens, and problems with
health insurance that are associated with insurance design". Of the countries surveyed, the
results indicated that people in the United States had more out-of-pocket expenses, more
disputes with insurance companies than other countries, and more insurance payments

12
denied; paperwork was also higher although Germany had similarly high levels of
paperwork.

B.INTRODUCTION OF COMPANY

Company Info:
Every day we wake up to the fact that more than 250 million lives are part of our family
called LIC.

We are humbled by the magnitude of the responsibility we carry and realise the lives that are
associated with us are very valuable indeed.

Though this journey started over 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 a process called TRUST.

Brief History Of Insurance

The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessmen today to secure themselves against loss and disaster existed in
primitive men also. They too sought to avert the evil consequences of fire and flood and loss
of life and were willing to make some sort of sacrifice in order to achieve security. Though
the concept of insurance is largely a development of the recent past, particularly after the
industrial era past few centuries yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on
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. Bombay Mutual Life Assurance Society heralded the birth of first Indian
life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as

13
Indian enterprise with highly patriotic motives, insurance companies came into existence to
carry the message of insurance and social security through insurance to various sectors of
society. Bharat Insurance Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies.
The United India in Madras, National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative
Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great
poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and
Swadeshi Life (later Bombay Life) were some of the companies established during the same
period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life
Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated between
foreign and Indian companies on many accounts, putting the Indian companies at a
disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From
44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with
total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance
companies many financially unsound concerns were also floated which failed miserably. The
Insurance Act 1938 was the first legislation governing not only life insurance but also non-
life insurance to provide strict state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the
Legislative Assembly. However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the management of the companies
was taken over by means of an Ordinance, and later, the ownership too by means of a
comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the
19th of June 1956, and the Life Insurance Corporation of India was created on 1st September,
1956, with the objective of spreading life insurance much more widely and in particular to the
rural areas with a view to reach all insurable persons in the country, providing them adequate
financial cover at a reasonable cost.

14
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate
office in the year 1956. Since life insurance contracts are long term contracts and during the
currency of the policy it requires a variety of services need was felt in the later years to
expand the operations and place a branch office at each district headquarter. Re-organization
of LIC took place and large numbers of new branch offices were opened. As a result of re-
organisation servicing functions were transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation. It may be seen
that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00
crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore
mark of new business. But with re-organisation happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8
zonal offices, 992 satallite offices and the Corporate office. LICs Wide Area Network covers
109 divisional offices and connects all the branches through a Metro Area Network. LIC has
tied up with some Banks and Service providers to offer on-line premium collection facility in
selected cities. LICs ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at
Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders, LIC has launched its
SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC
has issued over one crore policies during the current year. It has crossed the milestone of
issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67%
over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented performance
records in various aspects of life insurance business. The same motives which inspired our
forefathers to bring insurance into existence in this country inspire us at LIC to take this
message of protection to light the lamps of security in as many homes as possible and to help
the people in providing security to their families.
15
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.

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.

16
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 Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.

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."
Vision
"A trans-nationally competitive financial conglomerate of significance to societies and Pride
of India."
Aam Admi Bima Yojana

A) DETAILS OF THE SCHEME:

1. Eligibility criteria :

1. The members should be aged between 18 years completed and 59 years nearer
birthday.

ii) The member should normally be the head of the family or one earning member of the
below poverty line family (BPL) or marginally above the poverty line under identified
vocational group/rural landless household.

2. Nodal Agency

Nodal Agency shall mean the Central Ministerial Department/State Government / Union
Territory of India/any other institutionalized arrangement/any registered NGO appointed to
administer the Scheme as per the rules. In the case of Rural Landless Households, the nodal

17
agency will mean the State Government/Union Territory appointed to administer the Scheme.

3. Age Proof:

a) Ration Card
b) Extract from Birth Register
c) Extract from School Certificate
d) Voters List
e) Identity card issued by reputed employer/Government Department.
f) Unique Identification Card (Aadhar Card)
4. Premium:

The premium to be charged initially under the scheme will be Rs.200/- per annum per
member for a cover of Rs.30,000/-, out of which 50% will be subsidized from the Social
Security Fund . In case of Rural Landless Household (RLH) remaining 50 % premium shall
be borne by the State Government/ Union Territory and in case of other occupational group
the remaining 50% premium shall be borne by the Nodal Agency and/or Member and/or State
Government/ Union Territory

As individuals it is inherent to differ. Each individual's insurance needs and

requirements are different from that of the others. LIC's Insurance Plans are policies
that talk to you individually and give you the most suitable options that can fit your
requirement.

Lic's Single Premium Endowment Plan

Lic's New Endowment Plan
Lic's New Jeevan Anand
LIC's Jeevan Rakshak
LIC's Limited Premium Endowment Plan
LIC's Jeevan Lakshya

18
 LIC's NEW MONEY BACK PLAN - 20 YEARS
LIC's NEW MONEY BACK PLAN - 25 YEARS
LIC's NEW BIMA BACHAT
LIC's NEW CHILDREN'S MONEY BACK PLAN
LIC's Jeevan Tarun

LIC's Anmol Jeevan II

LIC's Amulya Jeevan II
LIC's e-Term
LIC's NEW TERM ASSURANCE RIDER - (UIN: 512B210V01)

Life Insurance Corporation of India (LIC)

Parent Company

Government of India

Category

NBFC

Sector

Insurance and finance

Tagline/ Slogan

Yogakshemam Vahamyaham (Your welfare is our responsibility)

USP

Indias Largest Life Insurance Company

STP

Segment

Personal and Group Insurance

19
Target Group

Urban and Rural Investors

Positioning

Complete Insurance and financial solutions

SWOT Analysis

Strength

1. Largest state-owned life insurance company in India, and also the country's largest investor
2. Has over 2000 branches across all parts of India and more than 10,00,000 agents.
3. With Largest fund base it is the biggest investor in India
4. Has over 115,000 employees across India
5. According to The Brand Trust Report, LIC is the 8th most trusted brand of India
6. LIC has subsidiaries like LIC Housing Finance Limited, LIC Cards Services Limited, LIC
Nomura Mutual Fund, LIC(Nepal)Ltd, LIC(Lanka)Ltd, LIC(International)BSC(C)

Weakness

1. It has an image of a Government agency and hence lacks innovation

2. Being a Government agency, red tape and bureaucracy causes problems
3. Managing a huge workforce during economic crisis meant overburdened due to
salaries

Opportunity

1. Use of Technology to provide effective services to cater to urban population.

2. Government Schemes implementation

Threats

1. Economic crisis
2. Entry of new NBFCs in the sector
3. Varying Govt policies

20
Competition

Competitors

1. SBI Life Insurance

2. Sahara Life Insurance

3. HDFC Standard Life

Awards Received in 2010-11

ET Brand Equity Award for Top Brand in

CNBC Awaz Consumer Award
Insurance Category

Outlook Money Award for Best Life Insurer AIMA High Performance Award

21
 Golden Peacock Award for Corporate
Readers Digest Trusted Brand
Governance

Global Youth Marketing Award for Most

Power Brand Award
preferred Life Insurance Company

Shoppers & Consumers Insight Award MY FM Stars of Industry Award for

Excellence in Life Insurance

22
World Brand Congress Award for Brand World HRD Congress Award for
Excellence Innovative HR practices

ABCI Award for House Magazine INDY's Gold Award for House Magazine
Yogakshema Yogakshema

Reader Digest Trusted Brand Insurance

CNBC Awaaz Consumer awards 2010
category 2010

23
OUTLOOK MONEY -- NDTV PROFIT
AWARD 2009 in World Brand Congress Award
" BEST LIFE INSURER CATEGORY "

Golden Peacock Innovative Product / Service ASIA PACIFIC HRM Congress, 2009 Award
Award - 2009 for INNOVATIVE HR PRACTICES

NDTV Profit Business Leadership Award

Loyalty Award - 2009
2008

24
INDY's Silver Award for Best Corporate Film NASCOM IT USER Award 2008

Business Superbrand India 2009 ASIA BRAND CONGRESS BRAND

LEADERSHIP AWARD, 2008

INDY's Silver Award for Best Corporate Film

25
Reader's Digest Trusted Brand Award, 2009 Golden Peacock Innovative Product /
( Platinum category ) Service Award - 2009

CNBC AWAAZ CONSUMER AWARD 2009

Brand Equity Most Trusted Brand 2010
for
Top in Insurance Category
" Most preferred insurance company "

NDTV PROFIT BUSSINESS

INDY's Silver Award for best Corporate Film
LEADERSHIP, AWARDS 2009

26
INDY's Silver Award for Best Pitch Award -" Rank 1 " India's Top 50
" In-house Magazine " Service Brands

CNBC Awaaz Consumer Awards 2008 Loyalty Award - 2009

Readers Digest Trusted Brand Award 2008 in CNBC Awaaz Consumer Awards 2008
the Platinum category.

27
 Golden Peacock Award for Excellence in
NDTV Profit Business Leadership Award 2008
Corporate Governance

Web 18 Genius of the web awards 2007 NASCOM IT USER Award 2008

Selected Business Superbrand India 2008 ASIA BRAND CONGRESS BRAND

LEADERSHIP AWARD, 2008

28
Loyalty Awards 2008 - Insurance Sector SKOCH Challengers Award 2008 for Jeevan
Madhur

LIC has been one of the pioneering organizations in India who introduced the leverage of
Information Technology in servicing and in their business. Data pertaining to almost 10 crore
policies is being held on computers in LIC. We have gone in for relevant and appropriate
technology over the years.

1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late
1950s were phased out in 1980s and replaced by Microprocessors based computers in
Branch and Divisional Offices for Back Office Computerization. Standardization of
Hardware and Software commenced in 1990s. Standard Computer Packages were developed
and implemented for Ordinary and Salary Savings Scheme (SSS) Policies.

FRONT END OPERATIONS

With a view to enhancing customer responsiveness and services , in July 1995, LIC started a
drive of On Line Service to Policyholders and Agents through Computer. This on line service
enabled policyholders to receive immediate policy status report , prompt acceptance of their
premium and get Revival Quotation, Loan Quotation on demand. Incorporating change of
address can be done on line. Quicker completion of proposals and dispatch of policy
documents have become a reality. All our 2048 branches across the country have been
covered under front-end operations. Thus all our 100 divisional offices have achieved the
distinction of 100% branch computerisation. New payment related Modules pertaining to

29
both ordinary & SSS policies have been added to the Front End Package catering to Loan,
Claims and Development Officers Appraisal. All these modules help to reduce time-lag and
ensure accuracy.

METRO AREA NETWORK

A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in

November, 1997, enabling policyholders in Mumbai to pay their Premium or get their Status
Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the city. The
System has been working successfully. More than 10,000 transactions are carried out over
this Network on any given working day. Such Networks have been implemented in other
cities also.

WIDE AREA NETWORK

All 7 Zonal Offices and all the MAN centres are connected through a Wide Area Network
(WAN). This will enable a customer to view his policy data and pay premium from any
branch of any MAN city. As at November 2005, we have 91 centers in India with more than
2035 branches networked under WAN.

INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)

IVRS has already been made functional in 59 centers all over the country. This would enable
customers to ring up LIC and receive information (e.g. next premium due, Status, Loan
Amount, Maturity payment due, Accumulated Bonus etc.) about their policies on the
telephone. This information could also be faxed on demand to the customer.

Life insurance in India made its debut well over 100 years ago.

In our country, which is one of the most populated in the world, the prominence of insurance
is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers

30
with some of the concepts of life insurance, with special reference to LIC.

It should, however, be clearly understood that the following content is by no means an

exhaustive description of the terms and conditions of an LIC policy or its benefits or
privileges.

For more details, please contact our branch or divisional office. Any LIC Agent will be glad
to help you choose the life insurance plan to meet your needs and render policy servicing.

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his
nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to
the Corporation by the policyholder. Life insurance is universally acknowledged to be an
institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the
timely aid of the family in the unfortunate event of death of the breadwinner.
By and large, life insurance is civilisation's partial solution to the problems caused by death.
Life insurance, in short, is concerned with two hazards that stand across the life-path of every
person:

1. That of dying prematurely leaving a dependent family to fend for itself.

2. That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contract Of Insurance:
A contract of insurance is a contract of utmost good faith technically known as uberrima

31
fides. The doctrine of disclosing all material facts is embodied in this important principle,
which applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions in the proposal
form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document
leading to the acceptance of the risk would render the insurance contract null and void.

Protection:
Savings through life insurance guarantee full protection against risk of death of the saver.
Also, in case of demise, life insurance assures payment of the entire amount assured (with
bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with
interest) is payable.

Aid To Thrift:

Life insurance encourages 'thrift'. It allows long-term savings since payments can be made
effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment
for insurance is either monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS, provides a convenient
method of paying premium each month by deduction from one's salary.
In this case the employer directly pays the deducted premium to LIC. The Salary Saving
Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that has
acquired loan value. Besides, a life insurance policy is also generally accepted as security,
even for a commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is
available for amounts paid by way of premium for life insurance subject to income tax rates

32
in force.

Assessees can also avail of provisions in the law for tax relief. In such cases the assured in
effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be
effectively used to meet certain monetary needs that may arise from time-to-time.

Children's education, start-in-life or marriage provision or even periodical needs for cash over
a stretch of time can be less stressful with the help of these policies.

Alternatively, policy money can be made available at the time of one's retirement from
service and used for any specific purpose, such as, purchase of a house or for other
investments. Also, loans are granted to policyholders for house building or for purchase of
flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can insure

33
himself/herself and those in whom he/she has insurable interest.

Policies can also be taken, subject to certain conditions, on the life of one's spouse or
children. While underwriting proposals, certain factors such as the policyholders state of
health, the proponent's income and other relevant factors are considered by the Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer insurance to
female lives with some extra premium or on restrictive conditions. However, after
nationalisation of life insurance, the terms under which life insurance is granted to female
lives have been reviewed from time-to-time.

At present, women who work and earn an income are treated at par with men. In other cases,
a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does
not have an income attracting Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be assured.
However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has
been extending insurance cover without any medical examination, subject to certain
conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any,
after periodical valuations are allotted to the policy and are payable along with the contracted
amount.

In 'without' profit plan the contracted amount is paid without any addition. The premium rate
charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

34
 CHAPTER:2
LITERATURE REVIEW

35
2.1 LITERATURE REVIEW

Khan, M.K. (1978) discusses the opportunities available which provide wonderful careers in
life insurance sector. The paper talks about the skills required for a career in life insurance
sector. Life insurance sector doesnt come along with restrictions and barriers. It provides lots
of flexibility for the people who want to build their careers in the sector. In fact the avenue
also creates and develops the overall personality of an individual. The relationship of life
Insurance agent with clients is not temporary and the service rendered has no substitutes.
Shesha Ayyar, V. (1986) opines in the article entitled Product Development about various
issues and challenges which are related with regard to developing new polices. The author
discusses the need for building and developing new schemes and various concerns which can
pose problems for the insurance sector. The insights presents details about the growing
requirement for including ancillary benefits such as accident benefits, disablement and
hospitalization benefits.
S.Raju and M. Gurupandi (2009), opine that the attitude of the policy holders and their
socio economic background creates a significant influence. The study showcased the opinions
and attitudes of the policy holders towards the services of LIC.
Shivanand .H.Lengti (2009), discuss that the insurance investors have the option to choose
from insurance authority to all other aspects of insurance. Such as insurance ombudsman and
insurance counsel to take their disputes further.
Ward and Zurbruegg (2002) examined the impact of legal and political factors, which are
significant in Asian countries. In the Asian countries there is lots of improvement as
compared to OECD countries.
The Insurance Institute of India prepared a Project Report on Marketing of Life
Insurance, (1987). The purpose of undertaking the project was to evaluate various aspects
with respect to insurance such as extent of life insurance coverage, awareness of the people
towards life insurance plans and policies, attitudes and beliefs of people on life insurance,
changing perceptions towards insurance, sense of identification of employees with Life
Insurance Company. The findings of the report included that LIC is a better investment
avenue for the investors as compared to bank deposits. Also in terms of reliability, the sense
of reliability if more with LIC as compared to other investment options.
Venkatesh, N.C. (1987) focuses on the area entitled On the Trail of Better Service where
the author presents the great need and importance of better and personal servicing to the
customers and has emphasized the importance of satisfying the policyholders. The
36
department of insurance continuously works to satisfy and adhere to the growing
requirements of the policy holders with the objective of serving them better.
Thanjavur (1987) worked upon field visit and exploratory study to gather data on Customer
Satisfaction. The purpose of the analysis was to provide insights about the different factors
which affect the level of customer satisfaction. The findings included the level of consumer
satisfaction regarding the services, such as follow ups, timely fulfillment of responsibilities
etc.

Brand Awareness and Consumer

Preference

Brand! Brand!! Brand!!! Thats the message for the late 90`s and beyond (Tom peters in the
circle of innovation 1997)(1) Brands are everywhere today, in familiar places and also in
distant lands where you might not expect. Stickers on soccer goals,6or4 ply cards in a
cricket match kids chirpily proclaiming coco cola enjoy or Pepsi dil maange more.
Clothing, household items, buildings buses, taxies, milk packets etc all contain
advertisements which symbolizes brands of the sponsors. On the internet they pop up out of
nowhere trying to sell something. It, therefore, wont be wrong to say the world is under
brand bombardment. Why? It is because a physical product is only a part of the product
image. It cannot stand alone before the potential buyer. Products may have peripheral or
associated attribute to facilitate its identification and acceptance by the buyers. It is the
brands, the ideas, words graphics, designs and sounds that symbolizes products, services and
companies behind them and they are hot and happening in business today. Branding is a
process of stamping a product or a group of products or something else which the marketer
offers, with some identifying name and mark or combination of both. It creates individuality
in the offering facilitating it to be easily distinguished and recognized in the market from rival
offerings. The word brand is a comprehensive term. It can encompass a name, a word, a
phrase, a design, a symbol or a combination of these elements in order to distinguish one
product from another. A brand, by definition, is a short hand description of a package of
value, on which consumes can rely to be consistently the same or better over a period of time.
A brand stars as a product and a name, but much can be built on the name. a brand identifies
the product for a buyer and gives seller a chance to earn goodwill and repeated patronage.
The owner of a registered brand personally stands behind the branded product and offers
personal guarantee for maintaining the quality and standards of the product. A genuine brand
37
has three basic characteristics The internalized sum of impressions as received, by the
consumers, leading to a distinctive position, in their mind space, based on emotional and
functional benefits.(2) Evolutions of Brands- Brands start off as products made out of
certain ingredients over a period of time, brands are built through marketing activities and
communication. They keep on acquiring attributes, core values and extended values.

Consumer preferences towards brand indicate the following:-

1. Brand Unawareness- A buyer has no knowledge of the existence of the brand.
2. Brand Awareness- A buyer is aware of the existence of the brand but the knowledge about
it is limited and obviously has no particular emotional attachment to it as a result he may or
may not think of purchasing the brand.
3. Brand Acceptance- A buyer can buy the brand as he has no negative feeling about the
brand but he has open mind to try another brand.
4. Brand Preference- The buyer favours a particular Brand but he can think for other brand
which is next in his preference schedule.
5. Brand Loyalty-The attachment towards a particular Brand is very strong and if the brand
is unavailable, only then, he can think of buying another brand.
6. Brand Insistence- A buyer insists on purchasing and one brand only and will not at all
accept a substitute.
7. Brand Equity- In the 80s much of the growth of the giant consumer product corporation
was achieved by a strategy of acquiring valuable brand names from other companies, often
the price paid for such transaction is huge. This is quite obvious that brand names that are
well known and wee liked by the consumer have greater equity hence are worth more, David
Aaker feels (4). Brands have equity because they have high awareness, many loyal
consumers, a high reputation for perceived quality.

38
The world is speeding into the information age. Style is taking a seat next to substance and
the language of the commerce is shifting to images and perceptions from nuts and bolts. As a
result everyone is jumping on the brand wagon. Brands are bigger than ever, but as a result it
is also true that more than ever is expected of them. One can say when the choices have
become vast the only thing that will matter are brand names. In todays world a brand
occupies a space on the consumer landscape much like that of a person. It may be a
reassuring friend, a pompous hypocrite, a seductive fastener, an inspiring leader or an
irritating nag. It may excite confuse, provide comfort, challenge, annoy, often just another
face in the crowd that no one notices much at all. People dont necessarily have
relationships with corporations but they do have relationships with brands, that might
symbolizes corporation or what the corporation produces observes Rita Clifton, She goods
on ,when you get into group discussions , consumers talk about brands like people. They can
describe their personalities. They can say if this brand came to life it would be this colour,
this age. People talk about brands as friends.

Advertising and Brand Awareness-

Now it is very well known that since Brands are coming in by dozens, all one needs is the
confidence to deliver, to just make it happen- by none other than advertising which forms a
vast superstructure with an autonomous existence and an immense influence.

39
Today there is general agreement that advertising objectives can be set around four broad
themes:-
The behavioral constructs generating trial purchases and store visit.
Change in attitude and its measurement
Positioning of the product and brand building.
Creating awareness of new products and brands.
Advertising is one of the most important cultural sign systems that reflect and mould our
lives. It is an inevitable part of anyones life. Even if one does not read the newspaper or
watches television it is impossible to escape the advertising images that pervade our
surroundings, via hoardings, wall paintings, pop material or even the radio, cutting across all
media but limited to none. It is true that Brand Awareness is one of the prime objective of
Advertising in the modern world of me too Brands. It is this ad mad world full of dream
merchants which as created the concept of jo dikhta hai wohi bikta hai. Advertising is the
communication link between the seller and the buyer. It does not simply provide information
about the products and services but is an active attempt to influencing people to action by an
overt appeal to reason or emotion. In other words, advertising does not end with the flow of
information from the seller to the buyer; it goes further to influence and persuades people to
action or belief. Advertising, being an integral part of promotion mix, is a part of the total
marketing mix and it influences the sale of the products as do the other variables of the mix.
Together with the product or brand, price, channel or distribution outlet and personal selling it
attempts to achieve the marketing objectives.
Advertising and Consumer Behaviour:-
Relationship consumer behaviour is influenced by various factors, ranging from personal
motivation, needs attitude and values, personality characteristics, socio-economic and cultural
background, age, sex, professional status to social influence of various kinds exerted by
family, friends colleagues and society as a whole. Each person has his / her own standards of
judgments and distinct behaviour in every aspects of his/ her role as a consumer. But, at the
same time, underlying the individual differences there are similarities which make it possible
to explain behaviour of specific types or groups of people. A careful study of consumer
behaviour provides the advertiser with deeper insight of his target segments, which in turn
proves to be very valuable in strategic advertising decisions, especially in defining the target
markets and creating the advertising appeal and message.

40
How dose Advertising affects consumers-
Advertising, along with a number of other factors viz price, distribution, sales force,
packaging, product features, competitive actions and changing buyer needs and tasters
influence sales isolating the effects of advertising is extremely difficult. Advertising might
attract buyers who will be loyal customers for many years to come or might start the
development of positive attitudes or brand equity that will culminate in purchase much later.
Advertising influences consumer and his decision making in a number of ways. It not only
educated him about his problems or needs, provides required information and assists him in
comparing the various alternatives and arriving at final decision. As it is a cyclical process, it
also has impact over the post purchase behavior of the consumer. Often, the consumers are
either not aware of their needs or are confused about their problems. To them, advertising
provides clues; therefore advertising provides the consumer motives to purchase the
advertised product. As in the present scenario the strategy is to keep on changing or
improving the product. As in the present scenario the strategy is to keep on changing or
improving the product or its features, it becomes imperative top inform the consumers about
the minor innovations and the way it can solve their problems the problems which the
consumers feel and is at the surface or the problems which had not captured the attention of
the consumers. Advertising also provides the necessary support after the consumer has made
the purchase. If the consumers experience dissonance or discomforts Moving to their
purchase decision, then advertisement reduce this feeling of discomfort by providing
information on the products attributes. It is even more necessary to neutralize the impact of
the advertisements of rival brands. Keeping the above facts in view an attempt has been made
to find out whether advertising has an impact on brand awareness and preference on mens
garment in the study area of Navi Mumbai, has also experienced the sift in mens shopping
pattern and methodology used as the city wittiness significant economic, demographic, social
cultural development. People of this city are customizing them selves to the fashion
revolution and men are a major contributing factor and greatly affected by the same as well.
New avenues are reshaping and redirecting the general marketing/shopping culture
prevalent .Navi Mumbai is the world's largest planned city . Vital Statistics of Navi Mumbai

41
B. ABOUT THE TOPIC
In this present world it is necessary for every person to get insured against their life, property,
family and so on as the risk and uncertainty is too high. Insurance has become ones part and
parcel of life. Even a normal person can afford for insurance policies. The main advantage of
insurance is its kinds. There are different kinds of insurance according to the needs &
preferences of the people. We will see a few important kinds of insurance.

Generally insurance can be divided as Life insurance and general insurance.

Life insurance is the most important kind as it affects our life and family. It is uncertain that
whether we will be alive the next moment. The next question in your mind is who will take
care of my family after my death?

Life insurance policies are the answer.

LIFE INSURANCE

Life insurance policies cater different needs of people. The main policies are as follows.

1. TERM POLICY:

Covers only risk of loss of life.

Premium paid is directly go towards the above purpose and no investment benefits.

Sum assured ranges between 1lakh to 10 lakh, which depends on your needs and the
amount of premium you pay.

Suitable for the people who needs only risk cover and not investment option.

2. WHOLE LIFE INSURANCE:

Risk benefit till the end of life.

Eligible age: 18-60 Yrs.

Premium can be paid monthly, quarterly, half-yearly, yearly or a single payment.

42
 Sum Assured depends upon your need and the premium which you can pay.

3. ENDOWMENT POLICY:

Investments based insurance policy.

A part of premium paid by you is kept for your life cover and the

balance is invested on your behalf to build wealth.

In case of your death, sum assured along with accumulated bonus will be given to
your beneficiary.

Eligible age: 18-60 Yrs.

Policy tenure: 5Yrs-55Yrs.

Option to invest according your choice- Debt, Equity, Balanced.

Sum assured is same as whole life policy.

Suitable for people who want to cover his/her life as well as to accumulate wealth for
their future financial goals.

4. MONEY BACK POLICY:

Periodical payment of sum assured.

Provides Life cover, Wealth accumulation and the option to receive the wealth back at
regular intervals.

In case of your death the entire sum assured is paid to your nominee along with the
accrued bonus without deducting the periodic payments already made.
Sum assured & Suitability are the same as endowment policy.

Marketing strategy
43
If the company has obtained an adequate understanding of the customer base and its own
competitive position in the industry, marketing managers are able to make their own key
strategic decisions and develop a marketing strategy designed to maximize the revenues and
profits of the firm. The selected strategy may aim for any of a variety of specific objectives,
including optimizing short-term unit margins, revenue growth, market share, long-term
profitability, or other goals.

To achieve the desired objectives, marketers typically identify one or more target customer
segments which they intend to pursue. Customer segments are often selected as targets
because they score highly on two dimensions: 1) The segment is attractive to serve because it
is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high
prices), or other factors; and 2) The company has the resources and capabilities to compete
for the segment's business, can meet their needs better than the competition, and can do so
profitably. In fact, a commonly cited definition of marketing is simply "meeting needs
profitably."

The implication of selecting target segments is that the business will subsequently allocate
more resources to acquire and retain customers in the target segment(s) than it will for other,
non-targeted customers. In some cases, the firm may go so far as to turn away customers who
are not in its target segment. The doorman at a swanky nightclub, for example, may deny
entry to unfashionably dressed individuals because the business has made a strategic decision
to target the "high fashion" segment of nightclub patrons.

In conjunction with targeting decisions, marketing managers will identify the desired
positioning they want the company, product, or brand to occupy in the target customer's
mind. This positioning is often an encapsulation of a key benefit the company's product or
service offers that is differentiated and superior to the benefits offered by competitive
products.

44
Implementation planning

The Marketing Metrics Continuum provides a framework for how to categorize metrics from
the tactical to strategic.

After the firm's strategic objectives have been identified, the target market selected, and the
desired positioning for the company, product or brand has been determined, marketing
managers focus on how to best implement the chosen strategy. Traditionally, this has
involved implementation planning across the "4Ps" of marketing: Product management,
Pricing (at what price slot do you position your product, for e-g low, medium or high price),
Place (the place/area where you are going to be selling your products, it could be local,
regional, country wide or International) (i.e. sales and distribution channels), and People.
Now a new P has been added making it a total of 5P's. The 5th P is Politics which affects
marketing in a significant way.

Organizational management and leadership

Marketing management may spend a fair amount of time building or maintaining a marketing
orientation for the business. Achieving a market orientation, also known as "customer focus"
or the "marketing concept", requires building consensus at the senior management level and
then driving customer focus down into the organization. Cultural barriers may exist in a given
business unit or functional area that the marketing manager must address in order to achieve
this goal. Additionally, marketing executives often act as a "brand champion" and work to
enforce corporate identity standards across the enterprise.

45
In larger organizations, especially those with multiple business units, top marketing managers
may need to coordinate across several marketing departments and also resources from
finance, research and development, engineering, operations, manufacturing, or other
functional areas to implement the marketing plan. In order to effectively manage these
resources, marketing executives may need to spend much of their time focused on political
issues and inter-departmental negotiations.

Reporting, measurement, feedback and control systems

Marketing management employs a variety of metrics to measure progress against objectives.

It is the responsibility of marketing managers in the marketing department or elsewhere to
ensure that the execution of marketing programs achieves the desired objectives and does so
in a cost-efficient manner.

Marketing management therefore often makes use of various organizational control systems,
such as sales forecasts, sales force and reseller incentive programs, sales force management
systems, and customer relationship management tools (CRM). Recently, some software
vendors have begun using the term "marketing operations management" or "marketing
resource management" to describe systems that facilitate an integrated approach for
controlling marketing resources.

Market Analysis

A market analysis studies the attractiveness and the dynamics of a special market within a
special industry. It is part of the industry analysis and this in turn of the global environmental
analysis. Through all these analyses the chances, strengths, weaknesses and risks of a
company can be identified. Finally, with the help of a SWOT analysis, adequate business
strategies of a company will be defined. The market analysis is also known as a documented
investigation of a market that is used to inform a firm's planning activities, particularly
around decisions of inventory, purchase, work force expansion/contraction, facility
expansion, purchases of capital equipment, promotional activities, and many other aspects of
a company.

46
 CHAPTER: 3

RESEARCH METHODOLOGY

47
3.1 OBJECTIVES OF STUDY

The objective of the study is to:

To understand and evaluate investment behaviour and patterns in the buying decisions
in life insurance.
To compare the different factors influencing the buying behaviour of demographic
factors towards life insurance policies.
Proper understanding & analysis of life insurance industry.
To undergo IRDAs training for becoming a life advisor
To conduct market surveys on a sample selected from the entire population and study
the consumers buying behavior.
To identify the main influences on customer buying behavior
To distinguish the factors influencing customer buying behavior.
To identify reason for opting/buying Life Insurance.
To identify the best policy from customer perspective.
SCOPE:
As large insurance market is still untapped so based on the survey the potential of the
Indian market can be evaluated.
New distribution channel and marketing strategies can be evaluated based on the
awareness among the masses regarding Life Insurance.
Life advisor license to be used part time basis to generate revenue for the company &
income for self

3.2 RESEARCH METHODOLOGY OF THE STUDY

48
Methodology is the systematic, theoretical analysis of the methods applied to a field of study.
It comprises the theoretical analysis of the body of methods and principles associated with a
branch of knowledge. Typically, it encompasses concepts such as paradigm, theoretical
model, phases and quantitative or qualitative techniques.

A methodology does not set out to provide solutions - it is, therefore, not the same thing as a
method. Instead, it offers the theoretical underpinning for understanding which method, set of
methods or so called best practices can be applied to specific case, for example, to calculate
a specific result.

It has been defined also as follows:

1. "the analysis of the principles of methods, rules, and postulates employed by a

discipline"
2. "the systematic study of methods that are, can be, or have been applied within a
discipline"
3. "the study or description of methods

RESEARCH DESIGN
The research design is purely and simply the framework of plan for a study that guides the
collection and analysis of data. Types of Research Design:
Exploratory Research The main purpose of such studies is that of formulating a
problem for more precise investigation or of developing the working hypotheses from
an operational point of view.
Descriptive Research Those studies which are concerned with describing the
characteristics of a particular individual, or of a group.
Hypothesis Testing Research They are those where the researchers tests the
hypotheses of casual relationships between variables.

Descriptive research design was used for this research.

A research design is a systematic plan to study a scientific problem. The design of a study
defines the study type (descriptive, correlation, semi-experimental, experimental, review,
meta-analytic) and sub-type (e.g., descriptive-longitudinal case study), research question,
hypotheses, independent and dependent variables, experimental design, and, if applicable,
data collection methods and a statistical analysis plan.

49
Design types and sub-types

There are many ways to classify research designs, but sometimes the distinction is artificial
and other times different designs are combined. Nonetheless, the list below offers a number
of useful distinctions between possible research designs.[1]

Descriptive (e.g., case-study, naturalistic observation, Survey)

Co relational (e.g., case-control study, observational study)
Semi-experimental (e.g., field experiment, quasi-experiment)
Experimental (Experiment with random assignment)
Review (Literature review, Systematic review)
Meta-analytic (Meta-analysis)

Sometimes a distinction is made between "fixed" and "flexible" or, synonymously,

"quantitative" and "qualitative" research designs.[2] However, fixed designs need not be
quantitative, and flexible design need not be qualitative. In fixed designs, the design of the
study is fixed before the main stage of data collection takes place. Fixed designs are normally
theory driven; otherwise it is impossible to know in advance which variables need to be
controlled and measured. Often, these variables are measured quantitatively. Flexible designs
allow for more freedom during the data collection process. One reason for using a flexible
research design can be that the variable of interest is not quantitatively measurable, such as
culture. In other cases, theory might not be available before one starts the research. However,
these distinctions are not recognized by many researchers, such as Stephen Gorard who
presents a simpler and cleaner definition of research design.
DATA COLLECTION
Primary Data: the data which is collected first hand or by the investigator himself. It means
that this is the information which the investigator collects himself/herself through interviews,
door to door survey, questionnaire and others.
Secondary Data: the data which is collected second hand or through a already existing piece
of information. It means the information which we take from the internet, newspaper,
newsprint or a journal. This includes all the thing which are already printed and we are taking
out information from them.
The data which I collected for my project will be classified as a secondary data, because I
made it through the information provide in the newspaper and internet. I Did Not Go For Any

50
Door To Door Survey Or Any Questionnaire, all the information was made through the help
of Wikipedia, newspaper, magazines and other search engines.

Sampling Design
SOURCES FOR DATA COLLECTION:
(a) Primary Data Collection Sources:

It has been collected by forming a proper questionnaire. Questionnaire is a systematic and

structured manner of collecting data for conducting experiment. The nature of the
questionnaire is very inductive and fundamental. It has been kept in a proper framework to
make it clear to the retailers.

Primary data can be collected in five main ways:

i) Observation

ii) Focus groups

iii) Surveys

iv) Behavioral data

v) Experiments

Among these, survey method was selected to collect the primary data. 100 user were visited
& collected the required data relevant to this project.

(b) Secondary Data Collection Sources:

Secondary sources

Information was collected from secondary sources such as customer survey, newspapers
advertisements, newsletters, etc.

Beside these the use of Internet was also made in collecting relevant information. The data
collected from the above mentioned sources has been adequately structured and used at
appropriate places in the report. The information gathered included:

Their annual reports.

51
 Pamphlets.

Newsletters.

Pictures.

Exchange schemes.

SAMPLING UNIT
Sampling techniques can be broadly classified in to two types:
Probability Sampling
Non Probability Sampling
This project will be based on the non-probability, purposive, quota sampling. As in the given
project the sample will be considered specific to predetermined New Delhi.
Types of Research :
Research are mostly categorized in to four major categories:
First is descriptive & Analytical
Second Applied & Fundamental
Third Quantitative & Qualitative
Fourth Conceptual & Empirical
The project will be based on Descriptive Research type.
SAMPLE SIZE
It is the process of selecting representative subset of a total population for obtaining data for
the study of the whole population the subset is known as sample. The sample size is selected
for the study 100 user. The techniques of sampling unit in this study are convenience
sampling.
Sampling Technique
Sampling techniques can be broadly classified in to two types:
Probability Sampling (here the every item in the universe have the equal chance of
inclusion in the sample)

Non Probability Sampling (Here the item in the sample are deliberately selected by
the researcher)
This project will be based on the non-probability, purposive, quota sampling. As in the given
project the sample will be considered specific to predetermined New Delhi.
Tools Used for Data Analysis

52
 Bar chart (Bar charts will be used for comparing two or more values that will be taken
over time or on different conditions, usually on small data set )
Pie-chart (Circular chart divided in to sectors, illustrating relative magnitudes or
frequencies)

53
 CHAPTER: 4

ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND FINDINGS

The data given below was based on the questions which are asked during the survey.
1. What do you think are the benefits of Insurance cover?
a) Cover future uncertainty ( )
b) Tax deduction ( )

54
c) Future investment ( )
d) Any other _________ (Specify)
Table No. 1:
Particulars No. of Respondents Percentage
Cover future uncertainty 54 54%
Tax deduction 25 25%
Future investment 21 21%
Any other 0 0%
Total 100 100%

INTERPRETATION
54% of the respondents believe that covering future uncertainty is the biggest benefit of an
insurance policy.

25% of them believe that the other benefits are Tax deduction.

Whereas, 21% of them believe that other benefits are future investment.

2. What is your perception about Insurance?

a) A saving tool ( )
b) A tax saving device ( )
c) A tool to protect future ( )
Table No. 2:
Particulars No. of Respondents Percentage

55
A saving tool 31 31%
A tax saving device 42 42%
A tool to protect future 27 27%
Total 100 100%

INTERPRETATION
31% of the respondents have perception of Insurance being a saving tool.

And 42% of the respondents have perception of Insurance being a tax saving device.

But 27% of the respondents have perception of Insurance is a tool to protect your family.

3. Which feature of your policy attracted you to buy it?

a) Low premium ( )
b) High risk coverance ( )
c) Money back guarantee ( )
d) Reputation of the company ( )
e) Agents conviction ( )
f) Any other _________ (Specify)
Table No. 3:

56
Particulars No. of Respondents Percentage
Low premium 0 0%
High risk coverance 9 9%
Money back guarantee 68 68%
Reputation of the company 12 12%
Agents conviction 11 11%
Total 100 100%

INTERPRETATION:
68% of the Respondents are attracted for Money back guarantee.

9% of the Respondents are attracted for high risk coverage.

12% of the respondents are attracted for reputation of the company.

And 11% of the respondents are attracted for agents beliefs.

4. Are you satisfied with the policy?
a) Satisfied ( )
b) Not satisfied ( )
c) Not responding()
Table No. 4:
Particulars No. of Respondents Percentage
Satisfied 82 82%
Not satisfied 18 18%
Not responding 0 0%
Total 100 100%

57
INTERPRETATION:
82% of the respondents are more or less satisfied with their existing policy.

18% of the respondents are not satisfied with their existing policy.

In this case all of those who have taken a policy have responded.

5. What is the right age to buy Insurance?

a) After25 Yrs ( )
b) After 35 Yrs ( )
c) After 45 Yrs ( )
d) Any time ( )
Table No. 5:
Particulars No. of Respondents Percentage
After25 Yrs 55 55%
After 35 Yrs 1 1%
After 45 Yrs 1 1%
Any time 43 43%
Total 100 100%

58
INTERPRETATION:
55% of the respondents are with the view that insurance should be bought after the age of
25 years.

Whereas, 43% of the respondents are with the view that buying of insurance do not have
any thing to do with age i.e. there is no age limitations. It can be purchased any time
according to the need.

And 1% of the respondents are with the view that insurance should be bought after 35 and
45 years of age.
6. Are you aware about the Life Insurance products or will prefer to purchase the Life
Insurance products of (mark ):
LIC

ICICI Prudential Life Insurance

HDFC Standard Life Insurance

SBI Life Insurance

Kotak Life Insurance

TATA AIG Life Insurance

Reliance Life Insurance

59
Figure 6 clearly explains that LIC is still the most recalled brand in the mind of the Indian
consumers.

7. Term of your insurance policy?

a) < 5 years b) 5 10 years

c) 10 20 years d)anyother_______________

60
Figure 7 shows that people are willing to buy policies for 10-20 years. This is due to the fact
that many wants insurance to be a investment tool.

8. What do you think are the benefits of Life Insurance?

a) Covers future uncertainty
b) Tax Savings
c) Investments
d) Comprehensive investment and risk coverage instrument

61
Figure 8 makes it clear that people prefer insurance as a comprehensive investment and risk
coverage

9. Which feature of Life Insurance policy will you consider while buying?
a) Money Back Guarantee
b) Larger Risk Coverage
c) Low Premium
d) Companys Credibility
e) Easy Access to Agents

62
Figure 5 says that people wants larger risk coverage as well as they prefer money back
gurantee

10. How have you bought / would buy a Life Insurance policy?
a) Customer approaching insurance company / agent
b) Insurance company / agent approaching the customer

63
Figure 10 makes it clear that agents & life advisors are the main source for company to bring
business.

11. Are you satisfied with your Life Insurance policy?

a) Highly Satisfied b) Satisfied
c) Not So Satisfied d) Not Responding

64
Figure 11 states the percentage of policy holders satisfaction level to their company. Many
are not satisfied because of service after sales or during claims.

65
 CHAPTER: 5
FINDINGS AND SUGGESTIONS

5.1 FINDINGS OF THE STUDY

OTHER LEARNINGS
Attended three day special workshop for life advisor conducted by the Life Insurance.
Gain basic knowledge about various life Insurance plans.
Learned about arranging, approaching and closing an appointment with the clients.
66
 Also learned many insurance jargon such as DAB(Double accident benefit), Riders,
Sum assured, Ombudsman, Premium etc.
Also learned how to approach a stranger during the survey.
FINDINGS
Based on the survey, it was found that more than 50% of the people still are not
insured.
LIC tops the list when it comes to brand recall.
Most of the people prefer policies for short term i.e for 10-15 years only.
Many people believe that policies helps to save tax but majority of the policyholders
perceive it as a tool to avoid uncertainty in the future.
More than 50% had bought the policies from life advisors rather than approaching
directly to the company.
Although there are plans for different age groups of the society but majority of
people prefer buying insurance at any age.
Insurance also gives advantage to grow your money at a rate greater than FDs and
other securities so people prefer investing in money back policies.
Last but not the least is that the level of satisfaction is quite good among the
policyholders

5.2 SUGGESTIONS
As LIC is still the most recalled brand among the masses so more advertisement needs
to be done via television, radio, hoardings, CSR activites, promotional events etc.
More than 50% of the market is untapped so networking via life advisors, corporate
firms, other agencies should be done to tap the untapped market.
Group insurance should be provided to schools. colleges. societies & different
organizations .
As majority of the population lives in rural areas so they should be targeted simple
and affordable plans for them.

67
 Life Advisor are the one which brings majority of the business for the company. So
more and more advisors should be recruited and paid good commission for their work.
In todays corporate world customer satisfaction is the key element to earn profit and
run the business. So the best service should be given before and after the
commencement of the policy.
Better service quality should include-issuing policy on time, providing claims on
time, proper communication via mail or courier on timely basis to aware customer
about the policy status.

68
 CHAPTER: 6
CONCLUSION

CONCLUSION
During the survey, it has been found that people have great awareness about various
companies but a lot more has to be done, especially by smaller companies like Life
Insurance to establish their market presence.
People are beginning to look beyond LIC for their insurance needs and are willing to
trust private players with their hard earned money.

69
 People in general have been influenced by the marketing activities of insurance
companies. A high penetration of print, radio and TV ad campaigns over the years is
beginning to have its impact now.
Another important trend was in terms of people viewing insurance as a tax saving and
investment instrument as much as protective one.
The general satisfaction levels among public with regards to policy and agents still
requires improvement. Here lies the opportunity for a relatively new comer like Life
Insurance. LIC has never been known for prompt service or customer oriented
methods but Life Insurance can build its reputation based on these factors.

BIBLIOGRAPHY
Books:
Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth Edition)
Marketing Management, The McGraw.Hill Company Rajan Saxena (Third Edition)
Brassington, F and Pettitt, S, (2000), Principles of Marketing, Second Edition,
Prentice Hall, Harlow

70
 Brooks, I and Weatherston, J. (1997) The Business Environment. Challenges and
Changes, Prentice Hall.
"FDI Limit in Insurance sector increased from 26% to 49%". IANS.
news.biharprabha.com. Retrieved 10 July 2014.
[1], Sovereign guarantee for all policies issued by LIC will continue.
The Oriental Insurance Company Ltd was incorporated at Bombay on 12 September
1947 "http://www.orientalinsurance.org.in/about-oriental-insurance.jsp"
http://www.euro.who.int/__data/assets/pdf_file/0007/98422/Private_Medical_Insuran
ce_UK.pdf
http://www.irdaindia.org/regulations/TheInsuranceAct1938er126042004.doc here
GOI. "IRDA ACT 1999". GOI. Retrieved 19 June 2012.
GOI. "IRDA ACT 1999" (PDF). Department of Financial Services, GOI. Retrieved 19
June 2012.

Magazines:
- Business today
- Business & Mgt.
Web links:-
https://en.wikipedia.org/wiki/Life_insurance_in_India
https://en.wikipedia.org/wiki/Insurance_in_India
https://www.policybazaar.com/life-insurance/
https://en.wikipedia.org/wiki/Most_valuable_customers
http://dictionary.reverso.net/english-cobuild/end%20customer
https://www.entrepreneur.com/article/250745
http://actionplan.com/pdf/high-end-secrets.pdf

ANNEXURE
QUESTIONNAIRE FOR THE SURVEY

Respondents Profile (Optional):

NAME:

AGE:

71
 GENDER:

EDUCATIONAL QUALIFICATION:

PROFESSION: (Business, Professional, Service, Any Other)

ANNUAL HOUSEHOLD INCOME

(<2 lakhs, 2-5 lakhs, 5-10 lakhs, >10 lakhs)

1. What do you think are the benefits of Insurance cover?

a) Cover future uncertainty ( )
b) Tax deduction ( )
c) Future investment ( )
d) Any other _________ (Specify)

2. What is your perception about Insurance?

a) A saving tool ( )
b) A tax saving device ( )
c) A tool to protect future ( )
3. Which feature of your policy attracted you to buy it?
a) Low premium ( )
b) High risk coverance ( )
c) Money back guarantee ( )
d) Reputation of the company ( )
e) Agents conviction ( )
f) Any other _________ (Specify)

4. Are you satisfied with the policy?

a) Satisfied ( )
b) Not satisfied ( )
c) Not responding()

5. What is the right age to buy Insurance?

72
a) After25 Yrs ( )
b) After 35 Yrs ( )
c) After 45 Yrs ( )
d) Any time ( )

6. Are you aware about the Life Insurance products or will prefer to purchase the Life
Insurance products of (mark ):
LIC

ICICI Prudential Life Insurance

HDFC Standard Life Insurance

SBI Life Insurance

Kotak Life Insurance

TATA AIG Life Insurance

Reliance Life Insurance

7. Term of your insurance policy?

b) < 5 years b) 5 10 years

c) 10 20 years d)anyother_______________

8. What do you think are the benefits of Life Insurance?

a) Covers future uncertainty
b) Tax Savings
c) Investments
d) Comprehensive investment and risk coverage instrument

9. Which feature of Life Insurance policy will you consider while buying?
a) Money Back Guarantee
b) Larger Risk Coverage
c) Low Premium
d) Companys Credibility

73
 e) Easy Access to Agents

10. How have you bought / would buy a Life Insurance policy?
a) Customer approaching insurance company / agent
b) Insurance company / agent approaching the customer

11. Are you satisfied with your Life Insurance policy?

a) Highly Satisfied b) Satisfied
c) Not So Satisfied d) Not Responding

74