ACKNOWLEDGEMENT

First and foremost, I would like to thank my supervisor of this project, Miss Shikha for her valuable guidance and
advice. She inspired me greatly to work on this project. Her willingness to motivate us contributed tremendously
to our project. Also I would like to thank her for guiding and correcting various documents of mine with attention
and care. She has taken pain to go through the project and make necessary correction as and when needed.

Besides, I would like to thank the authority of ALLSEC TECHNOLOGIES for providing me with a good
environment and facilities to complete this project. It gave me an opportunity to participate and learn about the
operation of tele marketing.

Finally, an honourable mention goes to my family and friends for their understanding and support in completing
this project. Without helps of the particulars mentioned above, I would have faced many difficulties while doing
this project.
 TABLE OF CONTENTS
CERTIFICATE

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

LIST OF TABLES AND GRAPHS

CHAPTER-1: DEVELOPMENT OF MAIN THEME

1.1 NEED OF STUDY

1.2 OBJECTIVE OF STUDY

1.3 LIMITATION OF STUDY

CHAPTER-2: INTRODUCTION

2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

2.3 PRODUCT PROFILE

CHAPTER-3: REVIEW OF LITERATURE

CHAPTER-4: ANALYSIS AND INTERPRETATION

4.1 RESEARCH METHODOLOGY

4.2 ANALYSIS AND INTERPRETATION

4.3 FINDINGS

4.4 SUGGESTIONS

4.5 CONCLUSION

APPENDICES

QUESTIONNAIRE I

BIBLIOGRAPHY II
 EXECUTIVE SUMMARY

This project titled as ‘consumer preference towards Royal Sundaram focuses on how consumers view or thinks or
feels about Royal Sundaram.

Sample size taken is 120. Research design carried out for a study is descriptive research. Primary data are collected
from clients of various insurance companies through structured undisguised questionnaire. Secondary data are
gathered from websites of RSA. Statistical tools like graphs, interval estimation, chi-square test, correlation have
been used for purpose of analysis.

The finding of the study arrived are based on the analysis conducted. Some suggestions of the study are to make
amendments in premium rates, to maintain the promptness in the claim settlement procedure, create more
awareness about the products.

The study been concluded that consumers view the performance of Royal Sundaram as good and the company has
high growth prospective in future years to come.
 CHAPTER -1

DEVELOPMENT OF MAIN THEME

NEED OF STUDY

This study will help Royal Sundaram to identify what consumers feel or think and how it can further improve its
performance to enjoy high reputation among clients.

Also the study helps in making necessary changes in the attributes of the insurance cover offered by company so
that customers can enjoy the benefits of the insurance cover.

OBJECTIVE OF STUDY

• To study consumer awareness towards insurance products.

• To identify customers perception about Royal Sundaram and its products.

LIMITATIONS OF STUDY

There were certain limitations in undertaking research work. As it is understood that the limitations are part of the
project, they have been overshadowed by the benefits of the study.

 The survey conducted may not be considered as comprehensive as only limited respondents could be
contacted because of the time constraint.
 Objectives and purpose of study and the questions had to be explained to the respondents and their
responses may be biased.
 Some of the respondents were reluctant to give their responses.
 Only limited sample size had been considered for study and therefore conclusion drawn based on this may
not be a reflection of entire population.
 CHAPTER -2

INTRODUCTION

2.1 INDUSTRY PROFILE

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for
payment. An insurer is a company selling the insurance. An insured or policyholder is the person or entity
buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a
certain amount of insurance coverage, called the premium. The insured receives a contract called the insurance
policy which details the conditions and circumstances under which the insured will be compensated. In a layman’s
words, insurance means, ‘a guard against pecuniary loss arising on the happening of an unforeseen event ‘. In
developing economies, the insurance sector still holds a lot of potential which can be tapped.

In the current scenario, insurance is much more than just life cover. Over the years, it has successfully identified
the growing needs for security of its customers and in the process has covered each and every aspect of our life.
Today insurance policies envelops everything ranging from robberies to wedding, shops to assets, travel to
vehicles, etc.

Tangible or intangible – an individual can insure anything! Be it a house, car, factory, or the voice of a singer, leg
of a footballer, or the hand of a writer...etc. It is possible to insure all these as they have the possibility of
becoming non-functional by any disaster or an accident.

HISTORY OF INSURANCE

In some sense we can say that insurance appears simultaneously with the appearance of human society.

The insurance sector in India has completed all the facets of competition-from being an open competitive market
to being nationalized and then getting back to the form of a liberalised market once again. The history of the
insurance sector in India reveals that it has witnessed complete dynamism in the past two centuries approximately.

IMPORTANT MILESTONES IN INDIA’S LIFE INSURANCE BUISNESS:-

• 1912: The Indian Life Assurance Companies Act came into force for regulation of Life Insurance Business.

• 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical
information on both life and non-life insurance companies.

• 1938: The earlier legislation consolidated The Insurance Act with the aim of safeguarding the interests of
the insuring public.

• 1956: 245 India and foreign insurers and provident societies were taken over by the Central government
and they got nationalised. LIC was formed by an Act of Parliament, viz.LIC Act, 1956. It started off with
the capital of Rs.5 Cr and that too from The Government of India.
The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. (the first
general insurance company) which was formed in the year 1850 in Kolkata by the British.

IMPORTANT MILESTONES IN INDIA’S GENERAL INSURANCE BUISNESS:-

• 1907: The Indian Mercantile Ltd. was set up which was the first company of its type to transact all general
insurance business.

• 1957: General Insurance Council, an arm of the Insurance Association of India, framed a code of conduct
for guaranteeing fair conduct and sound business patterns.

• 1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the
Tariff Advisory Committee was set up.

• 1972: The General Insurance Business Act,1972 nationalized the general insurance business in India. It
was with effect from 1st January 1973.

107 insurers integrated 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.

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims are
known as "perils". An insurance policy will set out in details which perils are covered by the policy and which are
not. Below are (non-exhaustive) lists of the many different types of insurance that exist. A single policy may cover
risks in one or more of the categories set out below. For example, auto insurance would typically cover both
property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from causing
an accident).

Auto insurance
 A wrecked vehicle

Auto insurance protects you against financial loss. It is a contract between the insured and the insurance company.
You agree to pay the premium and the insurance company agrees to pay losses as defined in the policy. Auto
insurance provides property, liability and medical coverage:

1. Property coverage pays for damage to or theft of the car.

2. Liability coverage pays for the legal responsibility to others for bodily injury or property damage.
3. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral
expenses.

Most auto policies are for six months to a year.

Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical
areas, the standard insurances exclude certain types of disasters, such as flood and earthquakes that require
additional coverage. Maintenance-related problems are the home owner’s responsibility.

Health insurance or Dental insurance

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other publicly-funded
health programs will cover the cost of medical treatments. Dental insurance, like medical insurance, is coverage
for individuals to protect them against dental costs. In the U.S. and Canada, dental insurance is often part of an
employer's benefits package, along with health insurance. Health & Accidental Insurance provides you with a
sense of security that you and your family are protected against sudden medical emergency or during the time of
accident. With Health and accident cover you need not worry about your Medical Expense in such contingency.

Accident, Sickness and Unemployment Insurance

• Disability insurance policies provide financial support in the event the policyholder is unable to work
because of disabling illness or injury. Short-term and long-term disability policies are available to
individuals, but considering the expense, long-term policies are generally obtained only by those with at
least six-figure incomes, such as doctors, lawyers, etc. Short-term disability insurance covers a person for a
period generally up to six months, paying a stipend each month to cover medical bills and other necessities.
• Disability overhead insurance allows business owners to cover the overhead expenses of their business
while they are unable to work.
 • Total permanent disability insurance provides benefits when a person is permanently disabled and can no
longer work in their profession, often taken as an adjunct to life insurance.
• Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical
expenses incurred because of a job-related injury.

Casualty insurance

Casualty insurance insures against accidents, not necessarily tied to any specific property.

• Crime insurance is a form of casualty insurance that covers the policyholder against losses arising from the
criminal acts of third parties. For example, a company can obtain crime insurance to cover losses arising
from theft.
• Political risk insurance is a form of casualty insurance that can be taken out by businesses with operations
in countries in which there is a risk that revolution or other political conditions will result in a loss.

Life insurance

Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may
specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life
insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash
payment or an annuity.

Property Insurance

This tornado damage to an Illinois home would be considered an "Act of God" for insurance purposes

Property insurance provides protection against risks to property, such as fire, theft or weather damage. This
includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home
insurance, inland marine insurance or boiler insurance.

• Automobile insurance/motor insurance, is probably the most common form of insurance and may cover
both legal liability claims against the driver and loss of or damage to the insured's vehicle itself.

• Boiler insurance (also known as boiler and machinery insurance or equipment breakdown insurance)
insures against accidental physical damage to equipment or machinery.
• Builder's risk insurance insures against the risk of physical loss or damage to property during
construction.
 • Crop insurance "Farmers use crop insurance to reduce or manage various risks associated with growing
crops. Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or
disease, for instance.
• Earthquake insurance is a form of property insurance that pays the policyholder in the event of an
earthquake that causes damage to the property.
• Flood insurance protects against property loss due to flooding.
• Terrorism insurance provides protection against any loss or damage caused by terrorist activities.
• Volcano insurance is an insurance that covers volcano damage in Hawaii.
• Windstorm insurance is an insurance covering the damage that can be caused by hurricanes and tropical
cyclones.

FUNCTIONS OF INSURANCE
The functions of insurance will give you an idea on how to go ahead with the approach of insurance and what type
of insurance to choose. Majority of the people in the developing countries remains unaware of the function and
benefits of insurance and it is for this reason that the insurance sector is still to grow.

BASIC FUNCTIONS OF INSURANCE:

• Primary functions

• Secondary functions

• Other functions

PRIMARY FUNCTIONS:
• Proving Protection - The elementary purpose of insurance is to allow security against future risks.
Accidents and uncertainty. Insurance cannot arrest the risk from taking place, but for sure can allow for the
losses arising with the risk. Insurance is in reality a protective cover against economic loss, by
appropriating the risk with others.

• Collective Risk Bearing - Insurance is an instrument to share the financial loss. It is a medium through
which few losses are divide among larger number of people. All the insured add the premiums towards a
fund and out of which the persons facing a specific risk is paid.

• Evaluating Risk - Insurance fixes the likely volume of risk by assessing diverse factors that give rise to
risk. Risk is the basis for ascertaining the premium rate as well.

• Provide Certainty – Insurance is a device, which assist in changing uncertainty to certainty

SECONDARY FUNCTIONS OF INSURANCE

• Preventing Losses – Insurance warns individuals and businessmen to embrace appropriate device to
prevent unfortunate aftermaths of risks by observing safety instructions like installation of automatic
sparkler or alarm systems, etc.
 • Covering Larger Risks With Small Capital – Insurance assuages the businessmen from security
investments. This is done by paying small amount of premium against larger risks and dubiety.

• Helps In The Development Of Larger Industries – insurance provides an opportunity to develop to those
larger industries which have more risks in their setting up.

OTHER FUNCTIONS OF INSURANCE:

• Is A Savings And Investment Tool – Insurance is the best savings and investment option, restricting
unnecessary expenses by the insured. Also to take the benefits of income tax exemptions, people take up
insurance as a good investment option.

• Medium Of Earning Foreign Exchange – Being an international business, any country can earn foreign
exchange by way of issue of marine insurance policies and different other ways.

• Risk Free Trade – Insurance boosts exports, by the way of making foreign trade risk free with the help of
different types of policies under marine insurance cover.

Insurance provides indemnity, or reimbursement, in the event of an unanticipated loss or disaster. There are
different types of insurance policies under the sun cover almost anything that one might think of. There are loads
of companies who are providing such customized insurance policies.

INDIAN INSURANCE MARKET

The Indian insurance market inspite of having a history covering almost two centuries took a turn after the
establishment of the Life Insurance Corporation in India in 1956. From being an open competitive market to being
nationalized and then back to a liberalized market again, the insurance sector has witnessed all aspects of contest.

The Indian insurance market conventionally focused around life insurance until recently a various range of other
insurance policies covering sectors like medical, automobile, health and other classes falling under general
insurance came up, generally provided by the private companies. The Life Insurance of India added 4.1% to the
GDP of the economy in 2009, an immense growth since 1999, when the gates were opened for the private
company in the market.

INDIAN INSURANCE POLICY

Insurance Policy India provides the clients with the details required for the coverages in the policy, date of
commencement of the policy and their adopting organisations. It plays an important role in the Indian Insurance
sector.

The Insurance Policy India is regulated by certain acts like

• The Insurance Act(1938)

• The Life Insurance Corporation Act(1956)
• General Insurance Business Act(1972)
• Insurance Regulatory and Development Authority(IRDA)Act(1999)

The insurance policy determines the covers against risks, sometimes open investment options with insurance
companies setting high returns and also informs about the tax benefits like the LIC in India.
INDIA GENERAL INSURANCE covers almost everything related to property, vehicle, cash, household goods,
health and also one’s liability towards others. The basic difference of General Insurance with the life Insurance
policy is that it offers protection against contingencies.

General Insurance in other words is a non-life Insurance which insures everything excluding life, holiday,
accident, travel, mortgage protection, etc are some of the aspects that General Insurance covers.

Nearly 100 general Insurance companies have been nationalized under the General Insurance Business
(Nationalized) Act, 1972, and merged into four companies, namely,

• National Insurance

• New India Assurance

• Oriental Insurance

• United India Insurance

Major Insurance policies that are covered under India General Insurance are:

• Home Insurance:- Home Insurance policies under the India General Insurance provides protection against
earthquake, natural calamities like floods, landslides and torrential rains, other hazards like gas cylinder
explosion, fire due to electric short circuit and burglary.

The Home Insurance policies under the India General Insurance covers:

 Building Structure

 Contents inside the Home

• Health Insurance – Health Insurance under the India General Insurance is commonly called Mediclaim
policies. Health Insurance policy covers expenses incurred during hospitalization stages like pathological
tests and buying medicines. Mediclaim policies is also tax beneficial, as stated under section 80D, with the
maximum amount of deduction being fixed at Rs10,000 and in case of senior citizens Rs15000.

• Motor Insurance – Motor Insurance policies under India General Insurance is obligatory as all vehicles are
needed to be insured. It covers :-

 Loss or damage caused to the vehicle or its accessories due to natural and man made calamities.

 Compulsory personal accident coverage for individual owners of the vehicle while driving.

• Travel Insurance – Travel Insurance policies under India General Insurance offers lots of benefits such as
medical expenses, loss or delay of baggage or passport, personal accident, financial emergency assistance
and hijack distress allowance and as well as covers expenses incurred due to delayed flight, cancellation of
trip. It also takes care of allied assets left at home. Thus, this ensures all travel worries.

TOP GENERAL INSURANCE COMPANIES IN INDIA

TATA AIG GENERAL INSURANCE COMPANY LIMITED : The firm started its operation in 2001 and is a
joint venture between American International Group Inc.(AIG) and Tata Sons. In the tie up Tata Holds the stake of
74% while AIG posses 26% of the venture. The general Insurance policies offered by Tata AIG General Insurance
Company in India are:

• Hospital Care

• Healthcare

• Secured Future Plan

• Householder Insurance

• Critical Illness Insurance

• Auto Insurance

• Travel Insurance

• Personal Accident Insurance

• Shopkeepers Insurance

• Mediclaim Insurance

• Hospital Cash Insurance

ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED: The company initiated its general
Insurance business in 2001 and is an ISO 9001:2000 certified firm. It is India’s premiere private Insurance firm
and is collaboration between India’s ICICI Bank Ltd. and Fairfax Financial Holdings Ltd. At the Asia Insurance
Industry Awards ceremony, the company was honoured as one of the top three “General Insurance Company of
The Year”. The General Insurance policies offered by the ICICI Lombard General Insurance Company Ltd. in
India are:

• Household Insurance

• Travel Insurance

• Personal Accident Insurance

• Auto Insurance

• Health Insurance

THE ORIENTAL INSURANCE COMPANY LIMITED: The company commenced its business in the year 1947
and offered Insurance covers to the public at a feasible price. Since 1947, The Oriental Insurance Company Ltd.
has been providing its services to all sections of the society besides offering exclusive covers to mega projects to
firms venturing to establish power plants, etc. The General Insurance policies offered by ‘The Oriental Insurance
Company Ltd’ in India are:

• Personal Accident Insurance

• Auto Insurance
 • Shopkeepers Insurance

• Householders Insurance

• Travel Insurance

• Health Insurance

IFFCO TOKIO GENERAL INSURANCE: Known as one of the finest general Insurance firm in India, IFFCO
Tokio General Insurance offers excellent services to its customers at reasonable costs. The firm has excelled in
giving ingenious solutions to its vast clientele. It has been considered as consumed-centric firm and was the first to
offer plans to its automobile and fertilizer customers. The General Insurance policies offered by IFFCO Tokio
General Insurance in India are :

• Travel Insurance

• Health Insurance

• Personal Accident Insurance

• Householder Insurance

BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED: A JV between Bajaj Auto Ltd.(74%) and
Allianz AG(16%). Bajaj Allianz General Insurance Company Ltd. initiate its operations in 2001, it has a capital
foundation of around 148 crores and is a premier private insurer in India offering all kinds of non-life Insurance.
The General Insurance policies offered by the Bajaj Allianz General Insurance Company Ltd. in India are:-

• Auto Insurance

• Personal Accident Insurance

• Health Insurance

• Householder Insurance

• Travel Insurance
2.2 COMPANY PROFILE

Allsec—Leader in Global BPO Services

Allsec Technologies is an integrated contact management services center headquartered in Chennai, India. Allsec
is a Public entity and has the pride of being the first pure play BPO Company to be listed in the Stock Exchanges
in India. Allsec has its contact-centers in Chennai, Bangalore and Trichy in India and Manila in Philippines

Founded in 1998, Allsec is a Premier provider of Client Services Support, Technical Support, Quality Assurance,
Sales, Collections, Customer Satisfaction, Payroll Solutions, Web development services and e-mail & Chat
Support.
ALLSEC TECHNOLOGIES or ALLSEC is an India-based Business Process Outsourcing (BPO) company that
started its operations in Chennai, India and catered mainly to overseas clients. Allsec technologies Business deals
with operations of both – Voice and Non voice based BPO services. Allsec Technologies Ltd (NSE/BSE—
ALLSEC) is a company that nurtures growth, innovation and progress with vibrant employees who are delighted
to help drive customer and client satisfaction. We understand that the customer’s success is our success and our
growth depends on delivering consistent and reliable world class services
 • Further, the services rendered by the Allsec Technologies deals with both types i.e. offline and online
modes. The company is regarded as the pioneer in quality BPO service provider in India. Allsec has offices in
India as well as in international locations like United States, United Kingdom, and Australia. In India, Allsec
Technologies offices are located in Chennai and Bangalore. Over the years the company has registered
stupendous growth. It has registered the net sales of Rs. 12,752.40 lakhs for the year ended 31st march,2007
and net profit to the tune of Rs.2473.53 lakhs for the year ended 31st march,2007.

• Allsec realizes its responsibilities to its stakeholders, which includes the Carlyle Group, a multibillion dollar
enterprise, Blue Chip Clients, World Class Employees, Shareholders, and the Society at large. Strategically
created checks and balances seek to deliver uncompromising accountability to these stockholders from every
quarter in the organization.

• Allsec’s offshore delivery strength is built on a robust, flexible and scalable IT-enabled platform and well-
honed processes. Our ability to understand the client’s service delivery requirement and provide a customized
solution is our forte. We establish reliable and realistic service levels and quality metrics from the beginning of
the engagement.

SERVICES rendered by Allsec Technologies are in the following manner:-

• Banking, Financial services and Insurance-for acquisition, retention and collection.
• Collections- for account payables and receivables.
• Technical support- for sign up and troubleshooting services.
• Student loan Consolidation
• Payroll processing and Claims Management
• Quality Assurance- provides quality assurance of voice and email service across multiple business
segments.
• Sales or Telemarketing

2.3 PRODUCT PROFILE

ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY

Royal Sundaram Alliance Insurance Company Ltd. is a leading private insurance company in India. In fact , it is
the first Indian private insurer to get license in the post-privatization era in 2001. It provides innovative insurance
solutions to its customers. Royal Sundaram was also the first to introduce various useful services like cashless
hospitalization, co-branded credit cards, segment specific business solutions and industry specific proposition etc.

Royal Sundaram has an extensive network with a presence in more than 150 cities. Besides, its own branches, it
also has its partners, agents and brokers spread across the country.

Royal Sundaram Alliance Insurance Company Limited has been at the forefront of providing innovative insurance
solutions for you, your family and business. Their product range is designed to provide extra cover to a varied
range of customers starting from the common man to corporate conglomerates.

Royal Sundaram brings to you the golden heritage and reliability of Sundaram Finance (AAA), one of the
most respected non-banking financial institution in India, and RSA, one of the oldest and the second largest
general insurer in the UK. It is a joint venture between these two financial giants which allows them to offer the
best global practices in insurance industry, innovation in terms of products and services, and unmatched,
personalized customer service.

About Sundaram Finance

Sundaram Finance, a Triple A rated Non-Banking Finance Company, is one of the most respected financial
services companies in India. The Sundaram Finance group’s operations span Vehicle finance, Home mortgages,
Asset management, General Insurance, Business process outsourcing, IT solutions and distribution of financial
products. Sundaram Finance has a network of over 320 branches across India with over 2,500 employees.

About RSA

With a 300 year heritage, RSA is one of the world’s leading multinational quoted insurance groups and one of the
oldest insurers in UK. It has the capability to write business in over 130 countries and with major operations in the
UK, Scandinavia, Canada, Ireland, Asia and the Middle East, Latin America and Central and Eastern Europe.
Focusing on general insurance, it has around 21,000 employees and, in 2009, its net written premiums were
£6.7bn.

OFFERINGS:
Royal Sundaram Alliance Insurance Company Ltd. offers a range of services to its customers which include:
  Health Insurance

 Car Insurance

 Travel Insurance

 Home Insurance

 Accidental Insurance

 Hospital Cash Insurance

 Business Insurance

HEALTH INSURANCE
Two types if health Insurance solutions are offered by Royal Sundaram. These are :-

• Family Health Insurance

 Coverage for two adults.

 Coverage for two adults and one dependent.

 Coverage for two adults and two dependents.

• Health Shield Online or individual health plan.

BUISNESS SOLUTIONS
Royal Sundaram offers a range of business solutions to its customers, which includes:-

• Marine Solutions

 Theft/Burglary Insurance

 Engineering Insurance

 Liability Insurance

 Industrial All Risks

 Office Shield

 Hotel Shield

 Enterprise Shield

 Education Shield

 Traders Shield

 All Risks

 Consequential Loss (Fire)

 • Employee Solution

 Group Health Insurance

 Group Accident insurance

 Workmen’s compensation

NRI SERVICES
Royal Sundaram Alliance insurance company limited brings a range of services for the NRIs

• Car Insurance

• Family Health Insurance

• Health Insurance

• Travel Insurance

• Home content Insurance

• Home Insurance

• Accident Insurance

• Hospital Insurance

ROYAL SUNDARAM GENERAL INSURANCE

Royal Sundaram General Insurance was among the first lot of private insurance companies that plunged in to
business post privatization in the year 2001. This was the time, when insurance sector, a much protected one by
government, was opened to the private companies also. Till then it was only government agencies that provided
insurance. The spate of trading freedom provided to these private insurance companies like Royal Sundaram
General Insurance unleashed a new era, where customer was the king. Insurance policy buyer was spoiled for
choices and world class services that were for obvious reasons difficult to expect from government insurance
providing agencies.

Royal Sundaram General Insurance, a private insurance company with its expertise and quality services spear
headed a revolution in insurance sector. They have the honors of introducing many innovative ideas for the over all
benefit of the user. Royal Sundaram General Insurance for the first time in India introduced the concept of cashless
hospitalization; this was convenient for the buyer of health policy. Now a Royal Sundaram Health Insurance policy
buyer does not worry about arranging cash for treatment, maintaining the bills and then going in for tedious
process of claiming it.

Royal Sundaram General Insurance has also covered rural sector and social sector. Rural Sector policies include:
Farmers Insurance, Livestock Insurance, Pumps Insurance, Rural Personal Accident Insurance, Rural Micro
Enterprise Shield, and Rural Hospital Cash Insurance. Royal Sundaram General Insurance is a fore runner in
providing innovative and policies keeping in mind the Indian consumers and their specific needs. More than 50%
of Indians live in rural areas and these rural insurance schemes are very popular among them

ADVANTAGES OF Royal Sundaram

• It relieves from the rising Health Insurance Costs

• Provides protection to family during Medical Contingency
• Coverage of Critical diseases
• Cashless claim facility
• No claim bonus facility
• Enjoy tax rebates

PRODUCTS

1. HOSPITAL CASH / SMART CASH / DAILY CASH

It is a benefit plan that provides cash benefit for each and every completed day of hospitalization, which can be
used to meet various expenses incurred during hospitalization. In other words it compliments the current medical
insurance plan.

FEATURES OF SMART CASH PLAN

2. Require 24 hrs of hospitalization which is mandatory.

3. Minimum age in enrolling into this policy is one year and maximum is seventy i.e 70 yrs.
4. It can be taken by a person for

• Himself and his spouse

• Dependent children ( 1- 21 yrs)
• Close relatives
• Parents up to 70 yrs

5. Provides instant coverage i.e. the time you log in or the transaction is made the policy starts from that

particular day.
6. Applying for the policy is very easy.
7. No need for filling up a lengthy application form or providing documents.
8. No medical check up is required.

9. If the person enrol for 3 or more members of his family in the plan then he gets a 10% discount on the total

premium.
BENEFITS

1. ILLNESS BENEFIT: For each 24 hr period of Hospitalization the benefit is payable for a maximum
of 180 days per illness or accident.
2. ACCIDENTAL BENEFIT: If the insured person is hospitalized for continuous period of more than 5
days, then double the benefit is paid subject to a maximum of 15 days.
3. CONVALESCENCE BENEFIT: For hospital confinement beyond 15 consecutive days a lump sum
amount of Rs. 10,000 is paid. This benefit is payable only once per year of policy period.
4. CRITICAL ILNESS BENEFIT: This benefit is availed only if the insured person survive for a
minimum period of 30 days after the diagnosis. If a person is diagnosed for any of the major disease like
cancer, stroke, heart disease, multiple sclerosis, renal failure, first heart attack, coronary artery bypass. It is
also payable only once per policy period.
5. TAX BENEFIT: It offers tax benefit under section 80D. 100% tax deduction from the taxable income
for the premium paid is provided. Available deduction is up to Rs. 15,000. And for senior citizen it is up o
Rs. 20,000.

EXCLUSIONS

1. Pre existing disease at the time of enrolling for the policy is not be covered.
2. Treatment for pregnancy or childbirth is not covered.
3. Any disease contracted within first 30 days of the policy is not covered i.e. a waiting period is
there.
4. AIDS is not covered.
5. Cost of lenses, spectacles, hearing aids etc is not covered.
6. Dental treatment of any kind unless required hospitalization is not covered.
7. Treatment for psychiatric, mental or nervous condition is not covered.
8. Person suffering from hypertension or diabetes is not covered.
9. During first year of the policy expenses on treatment of migraine / vascular headache, stones in
the urinary and biliary system, surgery on tonsils, cataract, and piles are not covered. They are covered from
second year.

PREMIUM CHART

1 Year Plan
 BENEFITS AGE BAND

1-45(yrs) 46-70(yrs)

1000 1434 1593

1500 1967 2185

2000 2500 2779

2500 3567 3963

2 Year Plan

BENEFITS AGE BAND

1-45(yrs) Kll146-70(yrs)

1000 3542 3934

1500 4500 5001

2000 6421 7134

2. MEDICLAIM OR HEALTH FOREEVER POLICY

 It is a comprehensive Health Care Insurance package offering personal health & medical cover. It is
specially designed to offer complete protection to the insured and his family. In this a Health Care
Insurance Card is specially designed exclusively for all insured customers of Royal Sundaram. It enables
one to use the services of the Network Hospitals and provides one with Cashless facility at over 3000
hospitals across 166 cities in India.

Key Features of Individual Health Insurance Policy

• Instant Individual Health Insurance Coverage.

• No Documentation required for Individual Health Insurance.
• Personal Health Cover, No Medical Examination required
• Family Discount of 10% for covering 3 or more family members under a single personal health
insurance policy.
• Offers health coverage for your spouse, children (above 90 days) and parents (up to 50 years).
• Pre and Post Hospitalization cover up to 30 days prior and 60 days respectively.
• Coverage for Pre-existing diseases after4 consecutive years of insurance
• 24-hour help line number
• Provides income tax benefit under section 80D up to Rs. 15,000.
• After every claim free year the sum insured is increased by 15% in the next year i.e. provides no
claim bonus.

EXCLUSIONS

1. PRE EXISTING DISEASE at the time of enrolling for the policy is not be covered.
Will be covered after 4 years.
2. Treatment for pregnancy or childbirth is not covered.
3. Any disease contracted within first 30 days of the policy is not covered i.e a waiting
period is there.
4. AIDS is not covered.
5. Cost of lenses, spectacles, hearing aids etc is not covered.
6. Dental treatment of any kind unless required hospitalization is not covered.

7. Treatment for psychiatric, mental or nervous condition is not covered.

PREMIUM CHART
 One year ( Premium inclusive of Tax)
Age
100,000 150,000 200,000 250,000 300,000 400,000 500,000
Group
91
1151 1581 1850 2271 2776 3589 4038
days-25
26-40 1861 2791 2947 3944 4420 5598 6871
41-45 2182 3272 3746 5016 5681 7116 8734
46-50 2731 3752 4956 6218 7710 9768 11026

Two year ( Premium inclusive of Tax)

Age
100,000 150,000 200,000 250,000 300,000 400,000 500,000
Group
91
days- 2187 3002 3515 4316 5275 6819 7672
25
26-40 3536 5302 5601 7493 8397 10637 13056
41-45 4146 6217 7117 9527 10674 13521 16595
46-50 5189 7129 9419 11816 14649 18559 20949

CHAPTER -3

REVIEW OF LITERATURE
Perception consists of those activities by which an individual acquires and assigns meaning to stimuli. Reality to
an individual is that individual’s perception. It begins with the exposure, which occurs when a stimulus comes
within the range of one of our primary sensory receptors. Individuals are exposed to only a small fraction of the
available stimuli, and this is usually the result of self selection. Different individuals may be exposed to the same
stimuli under the same conditions but how each individual recognises the stimuli, selects them, organises them and
interprets them is unique in case of each person and depends on each individual’s needs, wants, values, beliefs,
personal experiences, moods and expectations.

Individual’s perception is a personal phenomenon, on the basis of which the individual acts or reacts and not on
the basis of objective reality. For this reason, marketers are particularly interested in consumer’s perception than
their knowledge of objective reality. Simply put, perception is “how we see the world around us”. Perception is
also influenced by the characteristics of the stimuli, such as size, colour and intensity etc. and the context in which
it is seen or heard.

Schiffman and Kanuk have defined perception as “the process by which an individual selects, organises and
interprets stimuli into meaningful and coherent picture of the world”. A stimulus is any unit of input to a sensory
receptor. In a marketing context, the stimuli include brand names, advertisements, colours, sounds and packages
etc. Marketers are particularly interested in how consumers differentiate between brands, how they interpret
images, what type of risks they perceive and how they deal with risk.

PERCEPTION PROCESS

1) EXPOSURE TO STIMULI (SENSATION)

 Sensation is the immediate and direct response of sense organs to simple stimuli such as an advertisement, a
brand name, or a package etc. Exposure only requires presence of a stimulus within an individual’s relevant
environment. For example, a person is exposed to a commercial (stimulus) if she / he were in the room when
the commercial was shown, even when the person paid no attention to it or noticed it. Sensitivity to stimuli
varies among individuals and depends on the quality of sensory receptors. Sensation for a stimulus depends
on the differentiation of input. When the quantum of sensory inputs is high, the senses fail to detect small
differences in sensory inputs.

2) ATTENTION TO STIMULI

It occurs when one or more stimuli activate one or more sensory receptor nerves and the resulting sensations
reach the brain for further processing. Individuals selectivity attend to only those stimuli that physically
attract them (stimulus factors) or personally interest them (individual factors) . Stimulus factors are physical
characteristics of the stimulus itself, such as contrast, size, intensity, colour, movement and position etc.
Individual factors refer to individual’s characteristics, such as expectations, motives and learning etc.

3) INTERPRETATION OF STIMULI

It refers to assigning of meaning to sensations. Individuals in their own unique manner, interpret the stimuli.
Interpretation of stimuli by individuals is based on their earlier experiences, plausible explanations they can
assign, their motives, beliefs and interests at the time of perception
 CHAPTER -4

ANALYSIS AND INTERPRETATION

4.1 RESEARCH METHODOLOGY

RESEARCH DESIGN:

It is the blue print for collection, measurement and analysis of data. It is the plan and structure of investigation so
conceived to obtain answers to research question. The structure of research is a more specific outline and the
strategy out, specifying the methods to be used in connection and analysis of data.

DESCRIPTIVE RESEARCH DESIGN

The type of research design used in this study is the descriptive research. As the study undertaken is based on
opinion of consumer so this research study is categorized as Descriptive Research Method. It is more statistical in
nature and focus more on quantitative application.

DATA COLLECTION

The main source of information for this study is based on data collection. Data collected are both primary and
secondary in nature.

 Primary Data: - Primary Data have been collected from the clients of RSA as well as clients of other
insurance companies by survey method through undisguised structured questionnaire.

Open ended, closed ended, multiple choice questions have been used for data collection

 Secondary data: - Secondary data have been collected from official website of RSA and also from other
official website related to general insurance industry.

TYPES OF QUESTIONS

 OPEN ENDED: These are the type of question used to get suggestion from the respondent in order to give
feedback to the organization.

 CLOSE ENDED: These types of questions have a clear declined set of alternatives that confine the
respondents to choose one of them.
  MULTIPLE CHOICE: It consists of multiple choices in which the respondents can choose more than one
options.

SAMPLING

It is the process of obtaining information about an entire population by examining only a part of it.

Convenience sampling is been used in the study. The sample comprises subjects who are simply available in a
convenient way to researchers. However, this method is often the only feasible one, particularly for students or
others with restricted time and resources.

SAMPLE SIZE

It is the total no. of samples selected for the study from sampling population. Sample size for the study was taken
120

METHODS / TOOLS OF ANALYSIS

Tools used for analysis are:-

• Chi-square test
• Interval estimation
• Karl Pearson’s coefficient of correlation
• Graph
• Percentage (%)

 CHI- SQUARE TEST

It is an important test among the several test of significance. It is a non- parametric test i.e. do not depend on any
assumptions about the parameters of parent population. This test enables us to explain whether or not two
attributes are associated. Whether or not a calculated value of X2 is significant can be ascertained by looking at the
tabulated values of X2 for given degrees of freedom at a certain level of significance. If the calculated value of X2
is equal to or exceeds the table value, the difference between the observed and expected frequencies is taken as
significant, but if the table value is more than the calculated value, then it is considered as insignificant.

d.f. = (c-1) (r-1)

X2 = Σ (Oi – Ei)2/ Ei

 INTERVAL ESTIMATION
It is an estimate which provides the range in which the population parameter is expected to fall. It is uncertain i.e.
can take up any value within that range.

P ± Z√pq/n

Where, p= sample proportion of success

q= sample proportion of failure i.e. 1-p

Z= the value of standard variate at a given confidence level

n = size of sample

 KARL PEARSON’S COEFFICIENT OF CORRELATION

The correlation coefficient summarises not only the degree of correlation but also the direction i.e. whether
correlation is positive or negative. Coefficient of Correlation always lie between ± 1. When r = +1, it means there
is perfect positive correlation between the variables. When r = -1, it means thee is perfect negative correlation
between the variables. r is known as Pearsonian coefficient of correlation.

r = Σxy / √Σx2 Σy2

 GRAPHS

It is used in order to represent the factors in various graphical methods like pie- charts, bar diagrams, cylinders,
line, bubble etc

 PERCENTAGE ANALYSIS

It shows the entire population in terms of %.

% = no. of respondents / total respondents × 100

2.2 ANALYSIS AND INTERPRETATION

TABLE SHOWING OCCUPATION OF THE RESPONDENTS

OCCUPATION PERCENTAGE(%)

NUMBER OF RESPONDENTS

SERVICE 25 20.83

GOVERNMENT EMPLOYEE 16 13.33

BUSINESS 23 19.17

PROFESSIONALS 19 15.83

OTHERS 37 30.83
 OVERALL 120 100

FINDINGS: It was found out that out of 120 respondents 25 were service men, 16 government employee, 23
were having business, 19 were professionals, 37 were others.

INFERENCE: It is inferred that there is a higher % (30.83) of others i.e. who perform different occupation than
listed above and comparatively lower % (13.33) of government employees.

GRAPH SHOWING OCCUPATION OF RESPONDENTS

TABLE SHOWING ANNUAL INCOME OF RESPONDENTS
 ANNUAL INCOME NUMBER OF PERCENTAGE(%)
RESPONDANTS

Less than Rs. 2 lakhs 31 25.83

2-5 lakhs 51 42.5

5-10 lakhs 21 17.5

10-20 lakhs 9 7.5

Above Rs. 20 lakhs 8 6.6

OVERALL 120 100

FINDINGS: It was found out that out of 120 respondents 31 were having less than Rs. 2 lakhs annual income, 51 were
having income between 2-5 lakhs, 21 were having income between 5-10 lakhs, 9 were having income between 10-20
lakhs and only 8 were having income above Rs. 20 lakhs.

INFERRENCE: It is inferred that there is a higher % (42.5) of respondents having annual income of 2-5 lakhs and
comparatively lower % (6.6) of respondents who were having income above 20 lakhs.
GRAPH SHOWING ANNUAL INCOME OF RESPONDENTS
 TABLE SHOWING NUMBER OF FAMILY MEMBERS OF RESPONDENTS

NUMBER OF MEMBERS IN NUMBER OF PERCENTAGE(%)

FAMILY RESPONDANTS

2 to 4 91 75.83

5 to 8 29 24.17

MORE THAN 8 0 0

OVERALL 120 100

FINDINGS: It was found out that 91 respondents were having 2-4 members in their family, 29 were having 5-8
members in family and no respondents were having more than 8 members in family.

INFERRENCE: It is inferred that there is a higher % (75.83) of respondents who were having 2-4 family
members in their family and 0% were having more than 8 members in the family.
GRAPH SHOWING NUMBER OF FAMILY MEMBERS AND RESPONDENTS
TABLE SHOWING NECESSITY OF HAVING A GENERAL INSURANCE COVER

OPINION NUMBER OF RESPONDANTS PERCENTAGE (%)

RSA OTHER RSA OTHER

COMPANY COMPANY

57 52 95 86.67

YES

NO 03 08 05 13.33
FINDINGS: It was found out that out of 60 respondents of RSA, 57 are aware for the need of ‘General Insurance’,
while the corresponding number for customers of other companies is 52 .

INFERRENCE: It is inferred that the higher % (95) of RSA customers are aware of its benefits and the
corresponding number is comparatively low (86.67) for customers of other companies.
 TABLE SHOWING GENERAL INSURANCE POLICIES HELD BY RESPONDENTS

NUMBER OF POLICIES NUMBER OF RESPONDENTS PERCENTAGE(%)

1 62 51.67

2 To 4 41 34.17

More than 4 17 14.17

OVERALL 120 100

FINDINGS: It was found out that out of 120 respondents 62 were having one general insurance policy, 41 were having
2-4 policies and 17 were having more than 4 policies.

INFERRENCE: It is inferred that there is a higher % (51.67) of respondents having only one policy and
comparatively lower % (14.17) were having more than 4 policies.
GRAPH SHOWING NO. OF POLICIES TAKEN BY THE RESPONDENTS
 TABLE SHOWING GENERAL INSURANCE POLICIES TAKEN FROM THE SAME
COMPANY

OPINION NUMBER OF RESPONDENTS PERCENTAGE(%)

(For having policy from same

YES 66 55

NO 54 45

OVERALL 120 100

FINDINGS: It was found that 66 respondents have taken policies from the same company and 54 had taken from
other companies also.

INFERRENCE: It is inferred that there is a higher % (55) of respondents who had taken policies from the same
company and comparatively lower % (45) had taken from other companies also.
GRAPH SHOWING THE OPINION OF RESPONDENTS WHO HAVE TAKEN THE
POLICIES FROM THE SAME COMPANY
 INTERVAL ESTIMATION

WHETHER THE GENERAL INSURANCE POLICIES ARE TAKEN FROM THE SAME
COMPANY
P± Za/2 √pq/n

No. of respondents who have taken policies from the same company: 66

No. of respondents who have not taken policies from the same company: 54

n= sample size = 120

p = no. of yes/ sample size = 66/120 = .55

q = 1-p = 1-55 = .45

Za/2 = 1.96 at 95% confidence level

Standard error = √pq/n = √.55×.45/120 = .0454

Interval estimation = .55 ±1.96 (.0454)

= .4610>p>.639

= 46.1%, 63.9%

CONCLUSION:

Hence, we conclude that the % of respondents who have taken policies from the same company lies between
46.1% to 63.9%.
 TABLE SHOWING COMPANIES ENJOYING HIGH REPUTATION AMONG
CUSTOMERS

COMPANY NAME NUMBER OF PERCENTAGE(%)

RESPONDANTS

RSA 26 21.66

TATA AIG 15 12.5

Bajaj Allianz 21 17.50

IFFCO TOKIO 7 5.83

ICICI 16 13.33

Reliance 13 10.8

Max Bupa 5 4.17

Others(incl. PSU’s) 17 14.17

OVERALL 120 100

INFERRENCE: It is inferred that there is higher % (21.66) of reputation of RSA among customers and
comparatively lower % (4.17) of Max bupa.
GRAPH SHOWING NO. OF RESPONDENTS AND COMPANIES ENJOYING HIGHER
REPUTATION
 TABLE SHOWING AWARENESS LEVEL OF RESPONDENTS TOWARDS THE
INSURANCE SCHEMES OFFERED BY RSA

AWARENESSLEVEL NUMBER OF RESPONDENTS PERCENTAGE(%)

(about how many policies of RSA

NOT AWARE 15 25.00

SOMEWHAT 37 61.67

ALMOST ABOUT ALL 8 13.33

OVERALL 60 100
FINDINGS: It was found that out of 60 15 respondents were not aware about the policies, 37 were somewhat aware
and 8 were aware about all.

INFERRENCE: It is inferred that there is a higher % (61.67) of respondents who are somewhat aware and
comparatively lower % (13.33) who are aware about all schemes.
GRAPH SHOWING AWARENESS LEVEL OF RESPONDENTS
 INTERVAL ESTIMATION

AWARENESS AMONGST RSA CUSTOMERS TOWARDS THE INSURANCE SCHEMES

OFFERED BY RSA

No. of RSA customers who are aware of various insurance schemes offered by RSA: 45

No. of RSA customers who are not aware of various insurance schemes offered by RSA: 15

n = sample size = 60

p = no. of yes/sample size = 45/60 = 0.75

q = 1-p = 1-0.75 = 0.25

 Za/2 = 1.96 at 95% confidence level

Standard error = √pq/n = √.75×.25/60 = 0.056

Interval estimation = p ±Za/2√pq/n

= 0.75 ± 1.96 (0.056)

= 0.64024 >p>0.8598

= 64.02 %, 85.98%

CONCLUSION:

Hence we conclude that % of respondents aware of various insurance schemes offered by RSA lies between
64.02% to 85.98%.
 TABLE SHOWING OPINION OF RESPONDENTS TOWARDS RSA OFFERING OF
CUSTOMER CENTRIC PRODUCTS

OPINION NO. OF RESPONDENT PERCENTAGE (%)

HIGHLY AGREE 6 10
AGREE 48 80
NEITHER AGREE NOR 4 6.6
DISAGREE
DISAGREE 2 3.3
HIGHLY DISAGREE - -
TOTAL 60 100

INFERRENCE: It is inferred that a higher % (80) of respondents who are policy holders with RSA have agreed that
RSA is well known for offering customer centric products.
 TABLE SHOWING COMMENTS OF RESPONDENTS ON SERVICE OF RSA

COMMENT NO. OF RESPONDENT PERCENTAGE (%)

 EXCELLENT 20 33.33
VERY GOOD 30 50
MODERATE 7 11.66
POOR 3 5
VERY POOR - -
TOTAL 60 100

INFERRENCE: It is inferred that a higher % (50) of respondents said that service of RSA is very good and only 5%
said that it provides poor service.
 TABLE SHOWING THE SOURCES BY WHICH THE RESPONDENTS BECAME
FAMILIAR OF RSA

SOURCES OF INFORMATION NO. OF RESPONDENTS PERCENTAGE (%)

ADS (Print, radio, T.V) 21 35

INSURANCE AGENTS 10 16.66

FRIENDS AND RELATIVES 25 41.67

OTHERS 4 6.66

TOTAL 60 100
INFERRENCE: It is inferred that the higher % (41.67) of respondents are familiar by friends and relatives and
comparatively lower % (6.66) by other sources.
TABLE SHOWING THE PERIOD OF INSURANCE COVER HELD BY RESPONDENTS

PERIOD OF INSURANCE NO. OF RESPONDENTS PERCENTAGE(%)

COVER
ANNUAL POLICY 61 50.83
1-5 YEARS 35 29.17
5-10 YEARS 13 10.83
10-15 YEARS 11 9.17
GREATER THAN 15 YEARS _ -
TOTAL 120 100
INFERRENCE: It is inferred that the higher % (51) is of annual policy holder and there is no respondent who has
taken the policy for more than 15 years

TABLE SHOWING THE AMOUNT OF YEARLY INSURANCE PREMIUM PAID

YEARLY PREMIUM PAID NO. OF RESPONDENTS PERCENTAGE(%)

LESS THAN 5000 28 23.33
 RS. 5000- 10,000 43 35.83
10,000- 15,000 30 25
15,000-25,000 12 10
GREATER THAN 25,000 7 5.83
TOTAL 120 100

INFERRENCE: It is inferred that higher % (48.33) are paying the yearly premium between 5000- 15,000 Rs. and
comparatively lower % (5.83) are paying greater than 25,000 per year.
APPLYING KARL PEARSONS CORRELATION COEFFICIENT BY COMPARING
ANNUAL INCOME AND YEARLY PREMIUM AMOUNT PAID

YEARLY PREMIUM PAID NO. OF RESPONDENTS

LESS THAN 5000 28
RS. 5000- 10,000 43
10,000- 15,000 30
15,000-25,000 12
GREATER THAN 25,000 7
TOTAL 120

ANNUAL INCOME NUMBER OF

RESPONDANTS

Less than Rs. 2 lakhs 31

5-10 lakhs 21

Above Rs. 20 lakhs 8

OVERALL 120

PREMIUM AMOUNT ANNUAL INCOME

X Y
28 31
43 51
 30 21
12 9
7 8

r = Σxy/√Σx2Σy2 where, x= X-a and y = Y-b

( where a and b are means of X and Y)

PREMIUM x= X-24 x2 ANNUAL y= Y-24 y2 xy

AMOUNT INCOME
(X) (Y)
28 4 16 31 7 49 28
43 19 361 51 27 729 513
30 6 36 21 -3 9 -18
12 -12 144 9 -15 225 180
7 -17 289 8 -16 256 272
ΣX=120 Σx2=846 ΣY= 120 2
Σy = 1268 Σxy= 975

a = 120/5 = 24 b= 120/5 = 24

r = 975/ √846×1268 = 0.94

The variables annual income and premium amount paid are positively correlated. Hence, the annual income has an
impact on premium amount paid.
TABLE SHOWING RESPONDENTS COMMENT ON THE YEARLY PREMIUM PAID

COMMENT NO. OF PERCENTAGE

RESPONDENTS (%)
RSA OTHER RSA OTHER
COMPANIES COMPANIES
VERY HIGH - - - -
HIGH 39 12 65 20
REASONABLE 21 48 35 80
LOW - - - -
VERY LOW - - - -
TOTAL 60 60 100 100
 INFERRENCE: It is inferred that the higher % (80) of respondents said that the premium is reasonable of other
companies as compared to RSA. And a lower % (20) had said that the premium is high of other companies.

APPLYING CHI-SQUARE TEST BY COMPARING THE PERIOD OF GENERAL

INSURANCE COVER AND THE PREMIUM RANGE

PERIOD OF PREMIUM
INSURANCE RANGE
COVER
VERY HIGH REASONABLE LOW VERY TOTAL
HIGH LOW
ANNUAL POLICY 0 27 34 0 0 61
1-5 YEARS 0 10 25 0 0 35
5-10 YEARS 0 7 6 0 0 13
10-15 YEARS 0 7 4 0 0 11
GREATER THAN 0 0 0 0 0 0
15 YEARS
TOTAL 0 51 69 0 0 120
H0: There is no significant difference between premium and period of general insurance policy

H1: There is significant difference between premium and period of general insurance policy.

TABLE OF EXPECTED FREQUENCY:

EXPECTED VALUE = (ROW TOTAL × COLUMN TOTAL) / GRAND TOTAL

PERIOD OF PREMIUM RANGE

INSURANCE
COVER
VERY HIGH REASONABLE LOW VERY
HIGH LOW
ANNUAL POLICY 0 25.925 35.075 0 0
1-5 YEARS 0 14.875 20.125 0 0
5-10 YEARS 0 5.525 7.475 0 0
10-15 YEARS 0 4.675 6.325 0 0
GREATER THAN 0 0 0 0 0
15 YEARS

X2 = Σ (Oi – Ei)2/ Ei with n-1 degree of freedom

TABLE OF CHI – SQUARE:

Oi Ei (Oi – Ei)2 (Oi – Ei)2/ Ei

0 0 0 0
27 25.925 1.156 .0446
34 35.075 1.156 .033
0 0 0 0
0 0 0 0
0 0 0 0
10 14.875 23.766 1.60
25 20.125 23.766 1.18
0 0 0 0
0 0 0 0
0 0 0 0
7 5.525 2.176 .394
6 7.475 2.176 .291
0 0 0 0
0 0 0 0
0 0 0 0
7 4.675 5.406 1.1564
4 6.325
0 0
0 0
0 0
0 0
0 0
0 0
5.406 .855
0 0
0 0
0 0
0 0
0 0
0 0
TOTAL 5.554

X2 calculated = 5.554

X2 0.05 with (c-1) (r-1) = (5-1) (5-1) = 16

X2 0.05 with 16 d.f = 26.3

X2 calculated < X2 0.05

Hence, we accept H0

CONCLUSION:

We conclude that there is no significant difference between premium and period of general insurance policy.

TABLE SHOWING SATISFACTORY LEVEL OF RESPONDENTS TOWARDS THE

POLICY TAKEN

SATISFACTION NUMBER OF RESPONDENTS PERCENTAGE(%)

LEVEL

RSA Other Companies RSA Other Companies

Highly Satisfied 8 5 13.3 8.3

Satisfied 47 53 78.3 88.3

 Neither Satisfied
Nor Dissatisfied
5 2 8.3 3.3

Dissatisfied _ _ _ _

Highly Dissatisfied _ _ _ _

OVERALL 60 60 100 100

INFERRENCE: It is inferred that the higher % (88.3) of respondents are satisfied from other companies and
comparatively lower % (3.3) are neither satisfied nor dissatisfied from other companies.
 APPLYING CHI-SQUARE TEST BY COMPARING SATISFACTORY LEVEL
TOWARDS GENERAL INSURANCE POLICY TAKEN AND THE YEARLY PREMIUM
PAID.

PREMIUM HIGHLY SATIS- NEITHER DISSATIS- HIGHLY TOTAL

AMOUNT SATIS- FACTORY SATISFACTORY FACTORY DISSATIS-
FACTOR NOR FACTORY
Y DISSATISFACT
ORY

LESS THAN 1 24 3 0 0 28
5000
RS. 5000- 1 41 1 0 0 43
10,000
10,000- 15,000 2 28 0 0 0 30
15,000-25,000 6 4 2 0 0 12
GREATER 3 3 1 0 0 7
THAN 25,000
TOTAL 13 100 7 0 0 120

H0: There is no significant difference between yearly premium paid and satisfactory level towards general
insurance policy taken

H1: There is significant difference between yearly premium paid and satisfactory level towards general insurance
policy taken

TABLE OF EXPECTED FREQUENCY:

EXPECTED VALUE = (ROW TOTAL × COLUMN TOTAL) / GRAND TOTAL

PREMIUM HIGHLY SATIS- NEITHER DISSATIS- HIGHLY

AMOUNT SATIS- FACTORY SATISFACTORY FACTORY DISSATIS-
FACTORY NOR FACTORY
DISSATISFACTOR
Y

LESS THAN 3.033 23.33 1.633 0 0

5000
RS. 5000- 10,000 4.658 35.83 2.508 0 0
10,000- 15,000 3.25 25 1.75 0 0
15,000-25,000 1.3 10 0.7 0 0
GREATER 0.758 5.83 0.408 0 0
THAN 25,000
X2 = Σ (Oi – Ei)2/ Ei with n-1 degree of freedom

TABLE OF CHI –SQUARE:

Oi Ei (Oi – Ei)2 (Oi – Ei)2/ Ei

1 3.033 4.133 1.36
24 23.33 .4489 .019
3 1.633 1.869 1.14
0 0 0 0
0 0 0 0
1 4.658 13.38 2.872
41 35.83 26.72 .7457
1 2.508 2.274 .907
0 0 0 0
0 0 0 0
2 3.25 1.5625 .481
28 25 9 .36
0 1.75 3.0625 1.75
0 0 0 0
0 0 0 0
6 1.3 22.09 16.99
4 10 36 3.6
2 0.7 1.69 2.414
0 0 0 0
0 0 0 0
3 .758 5.026 6.63
3 5.83 8.0089 1.37
1 0.408 0.3504 .859
0 0 0 0
0 0 0 0
TOTAL 41.4977

X2 calculated = 41.4977

X2 0.05 with (c-1) (r-1) = (5-1) (5-1) = 16

X2 0.05 with 16 d.f = 26.3

X2 calculated > X2 0.05

Hence, we reject H0

CONCLUSION:

We conclude that there is a significant difference between yearly premium paid and satisfactory level towards
general insurance policy taken
 TABLE SHOWING NUMBER OF RESPONDENTS HAVING INSURANCE AGENTS

OPINION NUMBER OF RESPONDANTS PERCENTAGE

RSA OTHER RSA OTHER

COMPANY COMPANY

YES 31 31 51.67 37.67

NO 29 29 48.33 48.33

OVERALL 60 60 100 100

INFERRENCE: It is inferred that the higher % (51.67) of respondents have maximum insurance agents in RSA
and comparatively lower % (37.67) of agents for other companies.
 INTERVAL ESTIMATION OF RESPONDENTS HAVING INSURANCE AGENTS

Respondents having insurance agents: 62

Respondents not having insurance agents: 58

n= 120

p= 62/120 = 0.5166

q= 1-p = 0.4834

Za/2 = 1.96 at 95% confidence level

Standard error = √pq/n = 0.456

Interval estimation:

P ±Za/2 √pq/n

= .5166± 1.96 (0.0456)

= 0.4272 >p> 0.606

= 42.72%, 60.6%

Hence we conclude that % of respondents having insurance agent lies between 42.72% to 60.6%
 TABLE SHOWING CLAIMS REJECTED BY THE INSURANCE COMPANIES

CLAIMS
REJECTE D BY
INSURANCE NO. OF RESPONDENT PERCENTAGE (%)
COMPANIES

RSA OTHER RSA OTHER

COMPANIES COMPANIES

YES 09 07 15 11.67

NO 51 53 85 88.33

OVERALL 60 60 100 100

 FACTORS INFLUENCING CUSTOMERS TO CHOOSE A PARTICULAR COMPANY
FOR BUYING AN INSURANCE POLICY

INFLUENCING NO. OF PERCENTAGE (%)

FACTORS RESPONDENTS

Reputation 45 37.35

Service 20 16.60

Accessibility 3 2.49

Good Scheme
15 12.45

Low Premium
16 13.28

Experience Of
Others 10 8.30

Claim Settlement
11 9.13

_ _
Others

TOTAL
120 100

INFERRENCE: It is inferred that most of the respondents ranked reputation as the first priority of buying an
insurance policy.
 TABLE SHOWING GENERAL INSURANCE COVER THAT IS MOST FAVORED BY
RESPONDENTS

MOST NO. OF PERCENTAGE (%)

FAVOURED RESPONDENTS
INSURANCE
COVER

AUTO/ CAR
INSURANCE 42 34.98

HEALTH
INSURANCE 35 29.15

HOSPITAL
CASH 15 12.45

PERSONAL
ACCIDENT 11 9.13

TRAVEL
INSURANCE 6 4.98

HOUSE
HOLDERS 5 4.15

SHOPKEEPERS
INSURANCE 6 4.98

Others _ -

TOTAL
120 100

It is inferred that most of the respondents prefer auto/ car insurance. Then they prefer health insurance.
4.3 FINDINGS:-

• As could be noticed, people from uncommon professions (others) are more tending towards subscribing for
the ‘General Insurance’ because they don’t have any social security. It is not surprising that government
employees are least interested towards general insurance (especially health insurance) as majority of them
are covered by Government, itself.

• It was found that middle income (2-5 lakhs) groups (followed by lower middle class) show highest
tendency to buy the ‘General Insurance’ product. Now, this may sound surprising, as a common notion is
that rich people usually take ‘General Insurance’ plans. However, it could be explained on the fact that
middle class are most vulnerable towards any mishappening.

• It was found that the families with 2-4 members usually buy the ‘General Insurance’ more, this may be
contributed to the fact that the number of nuclear families in India are increasing, rapidly. Also, very high
premium costs for a family of more than 4 members could be another deterrent.

• More than half (51.67%) the respondents have only 1 policy, which has not come as the surprise, as still
most people(even the current customers) are tending towards ‘Health Insurance’.

• As could be found from the survey, 55% of the people buy ‘General Insurance’ from the same company.
However, almost equally (45%), people buy insurance from different companies.

• RSA enjoys highest reputation among customers. However, it must be noted that 120 customers surveyed
60 were from RSA itself. Also, MAX Bupa has least reputation, but it could be contributed to the fact that
it is relatively a new entrant in the market.

• Almost, 80% RSA customers think that it offers customer centric product, which is great by all the means,
but nearly 9.9% (3.3+6.6) are not satisfied, therefore company should concentrate on them also.

• As inferred from the survey, large parts (33.33+50) of RSA customers are extremely satisfied through the
service rendered by the company. However, 5% still think that there service is poor.

• Large part (41.67%) of the RSA customers, have come to know about the company from their friends and
relatives, which means that their customers are glad with the services of company and so they are
recommending it to others also. However, it also shows another aspect about its poor marketing strategies.

• As could be interpreted, majority (50.83%) of the surveyed respondents hold annual policy (1 year
duration), this provides uncertainty on the future of Insurance Companies performance. Also no policy
holder has the policy of greater than 15 years duration. This is an upsetting trend for all the companies.

• From the survey, it is found that nearly 65% of RSA customers have the view that the premiums are high
as against 20% for other companies.

• Almost, equal numbers of RSA customers have and don’t have Insurance agents.

• As can be seen from the survey, REPUTATION and then comes the service, is the most important factor
for the customer before buying any policy.
 • A surprising fact could be seen as that people are more interested in Auto Insurance than Health Insurance.
However, it may be due compulsory nature of Auto Insurance while buying a vehicle.

4.4 SUGGESTIONS:-

The present scenario demands almost all the customers have a general insurance in order to protect from future
uncertainty. The company always has an opportunity to grow and expand its operations in non-life insurance
segment. Hence, the company can seize this opportunity and pay attention to introduce more insurance covers to
cater to the needs of various classes of people.

 Majority of respondents, who are policy holder with RSA have felt that the premium being paid is
comparatively higher than other insurance companies. Hence amendments can be made in this regard by
offering insurance cover at reasonable premium to consumers.
 The promptness of claim settlement procedure can be maintained as it is one of the important aspects which
would enhance the reputation of company as well as build trust in minds of customers. Also it helps to
retain existing customers and attract new customers
 The company has to focus more on the auto/car insurance segment and health insurance segment. Majority
of the respondents have preference towards auto/ car insurance as it is must to have car insurance for their
vehicles by law. Therefore, the company has got enough opportunities to earn huge profits from both these
segments.
 Company can create more awareness about its products among potential customers by means of
advertisements and efficient insurance agents, which in turn will help in increasing its customer base.

 It must make its policy exclusive by including Dental Treatment, Maternity Benefits and Lifestyle Diseases
like Diabetes, Hypertension etc, under its cover.
 A special plan for ‘New Born’, could also be provided wherein the company will cover all the expenses of
the baby till five years, including the expenses of vaccination.
 Company should provide ‘Regular Health Check-Up Vouchers’ ‘Health Club Memberships’, ‘’ to its
customers, this will be beneficial not only for the customer but also for the company, as it would reduce the
possibility of the customer falling ill and thus reduce the number of claims.
 As a goodwill gesture, RSA could provide ‘Health Club Memberships’ including that of Yoga and
Meditation Classes, ‘Gym Sessions’, ‘Diet Classes’ etc, to the customers, this will reduce the number of
claims, phenomenally.
 The company could also associate with certain Pharmacies, Chemists and Testing Labs to offer discounts
on medicines and tests done with them.
 RSA in association with organisations such as WHO, MCI, IDA etc should make their customers aware
about various diseases, their initial symptoms etc, to ensure that they always remain healthy.
4.5 CONCLUSION

The outcome of the study has proved the performance of company is good in general insurance segment and has a
high reputation among customers.

It is concluded that company could initiate various steps based on recommendation given in this report which can
help in further improving its performance and occupy a leading position in general insurance market in future
years to come.
 QUESTIONNAIRE

NAME:

GENDER:-

o Male
o Female

AGE:-

I. Do you feel the necessity of having general insurance covers:-

o Yes
o NO

If yes, then which company will you prefer:-

o RSA
o ICICI Lombard
o TATA AIG
o IFFCO TOKIO
o Max Bupa
o Bajaj Allianz
o Others

II. What is your occupation?

o Service
o Government employee
o Professionals
o Business
o Others

III. Your annual income lies between :-

o <2 lakhs
o 2-5 lakhs
o 5-10 lakhs
o 10-20 lakhs
o > 20 lakhs
 IV. How many family members are there in your family :-

o 2-4
o 5-8
o >8

V. How many general insurance are you having:-

o 1
o 2-4
o >4

VI. Are you aware about the schemes offered by RSA?

o Some what aware

o About all
o Not aware

VII. Do you feel that RSA offers customer centric product:-

o Highly Agree
o Agree
o Neither Agree nor Disagree
o Disagree
o Highly Disagree

VIII. The service provided by RSA is :

o Excellent
o Very Good
o Good
o Moderate
o Poor
o Very poor

IX. You came to know about RSA from :-

o Ads( print/ digital)

o Insurance Agents
o Friends and agents
o Others

X. For how much period you are covered under general insurance:-

o Annual Policy
o 1-5 years
o 5-10 years
o 10-15 years
o > 15 years

XI. The premium amount you pay yearly is:-

 o < Rs.5000
o Rs.5000-10000
o Rs.10000-15000
o Rs.15000-25000
o > Rs.25000

XII. What is your opinion about the yearly premium? Is it :-

o Very High
o High
o Reasonable
o Low
o Very Low

XIII. What is your satisfaction level towards the policy taken? You are:-

o Highly Satisfied
o Satisfied
o Neither Satisfied nor Dissatisfied
o Dissatisfied
o Highly Dissatisfied

XIV. Have you taken the policy from an insurance agent?

o Yes
o No

XV. Which factor influence you the most in choosing an insurance company:-

o Reputation
o Service
o Accessibility
o Good scheme
o Low premium
o Experience of others
o Claim settlement
o Others

XVI. Which type of general insurance cover do you prefer the most:-

o Auto/Car Insurance
o Travel Insurance
o Shopkeeper’s Insurance
o Health Insurance
o Accidental Insurance

BIBLIOGRAPHY
 Consumer Behaviour by Satish K Batra and S H Kazmi
 www.rsa.com
 Business Research by Kothari
 http://en.wikipedia.org/wiki/Insurance_in_India
 http://www.info2india.com/finance/insurance/index.html