A STUDY ON ANALYSIS OF THE CUSTOMERS’ ATTITUDE, PREFERENCE AND SATISFACTION LEVEL TOWARDS INVESTMENT IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED, ADYAR, CHENNAI

CHAPTER 1

INTRODUCTION

1.1 INSURANCE INDUSTRY

The business of insurance is related to the protection of the economic values

of assets. Every asset has a value. The asset would have been created through the efforts

of the owner, in the expectation that, either through the income generated there from or

some other output, some of his needs would be met. However, if the assets get lost

earlier, being destroyed or made non-functional, through an accident or other unfortunate

event, the owner and those deriving benefits there from suffer. Insurance is a mechanism

that helps to reduce such adverse consequences.

1.1.1. Definition of Insurance

A contract of insurance can be defined as a co-operative device to spread the

loss caused by a particular risk over a number of persons who are exposed to it and who

agree to ensure themselves against the risk. Risk is the uncertainty of financial loss.

Every risk involves the loss of one kind or other. Though the risk cannot be averted yet

the loss occurring due to a certain risk can be distributed among the agreed persons.

Life insurance is a written contract between the insured and the insurer,

which provides for the payment of the insured sum on the date of the maturity of the

contract or on the unfortunate death of the insured, whichever occurs earlier.

1

1.1.2 Insurance History

At most 4500 years ago in the ancient land of Babylonia, traders used to bear

risk of the caravan trade by giving loans that had to be latter repaid with interest when

goods arrived safely. In 2100 b c, the code of Hammurabi granted legal status to the

practice, that perhaps was how insurance made its beginning.

LIFE INSURANCE on the other hand has its origin in ancient Rome, where

citizen formed burial clubs that would meet the funeral expenses of its members as well

as help survivors as we know if today owes its existence to 17th century England.

1.1.3 Importance of Insurance

Assets are insured, because they are likely to be destroyed or made non -

functional through an accident occurrence. Such possible occurrences are called Perils.

Fire, floods, breakdowns, lighting, earthquakes, etc., are perils. The damage that these

perils cause to the asset is the risk that the asset is exposed to.

The risk only means that there is a possibility of loss or damage. It may or

may not happen. There has to be an uncertainty about the risk. Insurance is done against

the contingency that it may happen. Insurance is relevant only if there are uncertainties.

If there is no uncertainty about occurrence of an event, it cannot be insured against.

2

1.1.4 Principle of Insurance

People facing common risks come together and make their small

contributions to a common fund. The contribution to be made by each person is

determined on assumption and past experience. The business of insurance done by

insurance companies called Insurers is to bring together persons with common insurance

interests (sharing the same risk) collecting the share or contribution (called premium)

from all of them and paying out compensations (called claims) to those who suffer.

Premium is determined base of various factors like age, amount of cover, period of cover

with some additions made for the expenses of administration.

The insurer is in the position of a trustee as it is managing the common fund

for and on behalf of the community. It has to ensure that nobody is allowed to take undue

advantage of the arrangement. That is to say that the management of the business

requires care to prevent entry onto the group of people whose risks are not of the same

kinds as well as paying claims on losses that are not accidental. The decision to allow

entry is the process of underwriting of risk. Both underwriting and claim settlement have

to done with great care.

1.1.5 Market and Features of Insurance

Insurance market is a mechanism through which life and general insurance

policies are bought and sold through which large parts of losses to individuals and

business community are met. Insurance is thus bought and sold in a market just as a trade

is carried on in material goods.

3

Insurance may be dividing into several separate and distinct branches. It can

be classified according to subject- matter or event insured or by the main classes of

business to their subject matter; it can be dividing into four categories.

1. Insurance of the property of the policyholders like marine insurance to ships, Fire

insurance on Buildings or goods etc.

2. Insurance of the persons, which include all types of Life Insurance as well as

insurance granting benefits for accidental death or disablement.

3. Insurance for the liability of the policyholder where he may be liable at law for

the death.

4. Insurance of the rights financial interest of the policyholders like fidelity

insurance, credit insurance etc.

1.1.6 Life Insurance in India

The insurance sector in India has come a full circle from being an open

competitive market to nationalization and back to a liberalized market again. Tracing the

developments in the Indian insurance sector reveals the 360-degree turn witnessed over a

period of almost two centuries. A brief history of the Insurance sector: The business of

life insurance in India in its existing form started in India in the year1818 with the

establishment of the Oriental Life Insurance Company in Calcutta.

With largest number of life insurance policies in force in the world, Insurance

happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20

per cent annually and presently is of the order of Rs 450 billion. Together with banking

services, it adds about 7 per cent to the country’s GDP. Gross premium collection is

4

nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of

GDP.

Nearly 80 per cent of Indian population is without life insurance cover, health

insurance and non-life insurance continue to be below international standards. And this

part of the population is also subject to weak social security and pension systems with

hardly any old age income security. This itself is an indicator that growth potential for

the insurance sector is immense.

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

development as it provides long-term funds for infrastructure development and at the

same time strengthens the risk taking ability. It is estimated that over the next ten years

India would require investments of the order of one trillion US dollar. The Insurance

sector, to some extent, can enable investments in infrastructure development to sustain

economic growth of the country. There are two legislations that govern the sector- The

Insurance Act- 1938 and the IRDA Act- 1999.

India is primarily a savings oriented country. Premium payments have been

long regarded as a tax savings option and hence the need to take a Life insurance policy.

The insurance industry witnessed a lot of activity during the year 2004.

Although not many changes took place in terms of the basic structure of the industry, the

industry grew by leaps and bounds. Sales of Unit Linked Insurance Plans (ULIP s) took a

giant leap. To put things in perspective, ULIP sales accounted for a sizable amount of

new business generated .The last few years have been a watershed for assured return

plans.

5

As the insurance sector has developed, there's been a growing acceptance by

most policyholders that the assured return era is a thing of the past. This in fact has also

been one of the reasons why many investors have shifted to market linked plans. Another

positive change has been the increasing level of people buying term plans. This is good

from a policyholder's perspective as a term plan offers a higher sum assured at a minimal

cost. This was not the case till a couple of years ago.

In the private sector 13 life insurance and 6 general insurance companies

have been registered. The opening up of the sector is likely to lead to greater spread and

deepening of insurance in India and this may also include restructuring and revitalizing

of the public sector companies. A host of private Insurance companies operating in both

life and non-life segments have started selling their insurance policies since 2001.

The consumer mega trend in the early years for the Indian consumer will be

marked by major social and economic shifts that will change the way consumers behave.

Both new and existing players must explore new distribution and marketing channels.

The increasing importance of knowledge in the Indian insurance industry is

likely to make employability a critical factor for retention of qualified managerial

manpower in the future. To create such a milieu, insurance companies need to have a

critical mass of management that encourages a knowledge-based culture.

1.1.7 Insurance Regulatory and Development Authority

The mission of IRDA is “To protect the interests of the policyholders, to

regulate, promote and ensure orderly growth of the insurance industry and for matters

connected therewith or incidental thereto.”

6

1.1.8 Life Insurers

S. NoRegistration

NumberDate of Reg. Name Of The Company

1 101 23.0.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000ICIC Prudential Life Insurance Company

Ltd.

4 107 10.01.2001 OM Kotak Mahindra Life Insurance Co. Ltd

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited

8 114 02.08.2001ING VYSA Life Insurance company Private

Limited.

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Ltd

10 117 06.08.2001 MetLife India Insurance Company Pvt Ltd

11 121 03.01.2002 AMP SANMAR Assurance Company Ltd

12 122 14.05.2002 Aviva Life Insurance Co India Pvt Ltd

Source: WWW.IRDA.ORG

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1.2 COMPANY PROFILE

1.2.1 Vision

To make ICICI Prudential the dominant Life and Pensions player built on

trust by world – class people and service. This they hope to achieve by:

Understanding the needs of customers and offering the superior products and

service.

Leveraging technology to service customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders.

Providing an enabling environment to foster growth and learning for our

employees.

And above all, building transparency in all their dealings.

The success of the company will be founded in its unflinching commitment

to 5 core values -- integrity, Customer First, Boundary less, Ownership and Passion,.

Each of the values describes what the company stands for, the qualities of people and

the way they work.

1.2.2 Partners

ICICI and Prudential came together in 1993 to form Prudential ICICI Asset

Management Company, which has today emerged as one of the leading mutual funds in

India. The two companies bring together two of the strongest financial service brands

in Asia, known for their professionalism, excellent quality of service and long term

commitment. Riding on the success of this relationship, the two companies joined hands

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once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to

provide leading –edge life insurance solutions. ICICI bank has 74% stake in the company,

and prudential plc has 26%.

1.2.3 Best Life Insurer Award

Outlook Money: March 15, 2004

Winner: ICICI Prudential

In the short span since the insurance sector was opened up, ICICI prudential

Life Insurance has literally dictated the market’s evolution. Catering to all age and

income segments, the company started out with the traditional insurance policies that

were easy to understand. The idea was to entice customers used to LIC’s style of

functioning.

Soon, ICICI Prudential began exploring new areas. It introduced modern

products, like the market - linked product where returns are linked to the market

performance of the underlying assets.

ICICI Prudential leads in virtually all parameters: size of agent force, number

of policies sold, total sum assured, premium income and productivity of agents. It has set

exacting standards for its range of products, riders offered, quality of information in

promotional material and even in the insurance awareness events organized.

What has been in favour of ICICI Prudential is its range of products in

each segment of life insurance –traditional , unit-linked and single –premium options, be

9

they for retirement plants or child plans, with such a comprehensive bouquet it caters

goals of a customers.

ICICI Prudential also has a strong sales network and tie-ups with banks to

offer banc assurance products. Its supplementary marketing channels contribute close to

30 per cent of its premium income. The company is now reaching out to new and

untapped markets. ICICI Prudential works closely with NGOs and micro-finance

institutions to spread awareness about the concept of insurance in rural areas.

The gap between ICICI Prudential and the second-in-line private insurer is

vast. In fact, this hiatus has led some analysts to wonder if the company isn’t a trifle too

aggressive. But others say this has more to do with the company’s customer-centric focus,

its pan-India presence and superior risk management and investment strategies. ICICI

Prudential is not, however, resting on its laurels. The company will continue to innovate

and set the standards.

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1.3 ADVISORSHIP

1.3.1 Insurance Agent

An insurance agent is an agent licensed section 42 of the Insurance Act 1938.

He receives payment by way of commission or other remuneration for procuring

insurance business. He is also responsible for business relating to the continuance,

renewal or revival of policies of insurance.

The agent cannot be an employee of an insurance company and the insurance

ACT IRDA and the Indian Contract Act govern his role as an agent.

1.3.2 Types of Agents

Absorbed Agent an insurance agent licensed on or before the date of

notification of the insurance Agents Regulations, 2000, under the provisions of section

42 of the Insurance Act 1938.

Composite Insurance Agent means an insurance agent who holds both life

insurance agency license and general insurance agency license. Corporate Agent could be

a company or a firm.

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1.3.3 Function of the Agent

The primary function of the agent is to procure business for the insurance

company , prior to offering the policy, the agent has to check out on the insurability of

the proposer based on the principles of insurable of the interest and almost god faith.

The relevant information can be:

a) Paying capacity

b) Health and habits

c) Age

Once the insurance contract has been put in to force, the agent is supposed to

ensure continuance of policy through regular payment of renewal premiums. In case of a

claim the agent should help the insured or his family in proper settlement of claims.

1.3.4 Agents Qualification

In order to discharge the above duties to the satisfaction to the consumer, it is

required that a person making an application for a license to act as an insurance agent or

as a composite insurance agent,

a) Is at least 18 years of age as on the date of application.

b) Has not been found to be a person of unsound mind by a Court of competent.

jurisdiction:

c) Has not been found guilty of any kind of criminal conduct. In case of an

offence

d) At least five years should have elapsed since the completion of sentence

Imposed.

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e) Possesses the minimum educational qualification of a pass in 12th standard or

Equivalent examination conducted by any recognized Board/Institute of

Education.

f) Possesses a Certificate in Insurance salesmanship issued by an Examination

Body or any other institution by the Authority (IRDA) in this behalf.

g) For the purposed of this clause the Authority has presently recognized the

Insurance Institute of India. Mumbai as the examination body.

1.3.5 Appointment of Agents

All insurer or the designated person acting on behalf of the insurer may

appoint a person as an insurance agent. Provided that such agent holds a valid license at

the time of appointment.

1.3.6 Restriction on appointment

All insurance agent who holds a valid certificate of license and who has been

appointed by an insurance company, shall for all intents and purposes, be an Insurance

agent for that insurance company only. A life insurer or his designated person cannot

appoint at personas an insurance agent who has been working as an insurance agent for

another life insurer. A general insurer or his designated person cannot appoint a personas

an insurance agent who has been working as an insurance agent for another general

insurer.

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1.3.7 Training of Insurance Agent

Every person appointed as an insurance agent the appointed day by an insurer

shall undergo training organized by an independent Institute or by an insurer’s institution,

to be accredited by the Authority, for a minimum period of for weeks once in every three

years. Where a person is a composite insurance agent, such training will be for a period of

six weeks.

1.3.8 Termination of Agency

The licence of any insurance agent including an absorbed agent may be

terminated by the Authority, if such agent suffers, at any time during the currency of the

licence, from any of the said disqualification mentioned is subsection 42 of the Act, s the

case may be.

1.3.9 Issue of duplicate license

An insurance agent shall make an application to the issuing authority through

the designed person for issue of a duplicate license with a fee of rupees fifty.

1.3.10 Return to be submitted to the Authority

Every insurer shall annually or at such shorter periods as may be prescribed

by the Authority, submit a statement to the Authority showing the particulars mentioned

in section 43 of the Act.

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1.3.11 Power to issue instructions or directions.

The Authority may, from time to time such instructions or directions to the

insurance agents designated persons and the insurers, for the proper conduct of insurance

business and furtherance of the provisions of the Act, and the Insurance Regulatory and

Development Authority Act 1999.

1.3.12 Remuneration to Agents

The only way in which the company remunerates the agent is through

commissions received on sales made. Commission to agents is specified as a percentage

of the premium paid. Agents are entitled to term insurance and gratuity benefits. An agent

will be eligible for gratuity if he has worked continuously for fifteen years or more

without agency termination. IRDA has given the upper limit of remuneration to agents as

40% of premium.

Some companies offer reimbursement of telephone charges and other office

administration expenses to agents. With the de-regulation of the Insurance Industry there

would be a lot of promotional effort by the various companies In light of the above the

following code of conduct needs to be adhered to while advertising> All advertisement

should be:

Decent – a level of decency in visuals and words needs to be adhered to

Preparent with a sense of responsibility towards the consumer and the society.

Conforming to the principles of fair competition – derogatory targeting of

competition is not considered fair.

Honest and truthful – claims made by advertisement, should be delivered to

the customer.

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Protected from coping by the Copyright Act.

Ethical – advertising should not target sections of the society which may be

unable to take a logical decision.

Moreover the IRDA (Insurance advertisement and disclosure) Regulations

2000 further states the regulations laid down for advertising which need to be adhered by

the Insurance companies and by the agents.

1.3.13 Who can be an Agent?

An Individual

A firm

A company formed under the Companies Act, 1956(I if 1956), and includes a

banking company as defined as clauses (4A) of section 2 of the Act.

1.3.14 Practical Training

Practical training includes orientation, particularly in the area of insurance

sales, service and marketing, through training modules as approved by the authority.

First time applicant

(Life/Non-Life) - 100 hours

Composite - 150 hours

If applicant has following qualifications:

an Associate/Fellow of the Insurance Institute of India, Mumbai,

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an Associate/Fellow of the Institute of Chartered Accounts of India,

New Delhi;

an Associate/Fellow of the Institute of costs and Works Accountant of

India, Calcutta;

an Associate/Fellow of the Institute of company Secretaries of India,

New Delhi;

a Master of Business Administration of any Institute/University

recognized by any State Government or the Central Government; or

possessing any professional qualification in marketing from any

Institute / University recognized by any State Government or the

central Government-

Life/Non-life – 50 hours


Renewal of License

Life-Non Life - 25 hours


1.3.15 Examination

To be conducted by Insurance Institute of India. Mumbai or any other

examination body recognized by the Authority

Maximum 50% marks

Duration of Examination – 7 hrs.

Format of Examination – Objective type with 10% of question as numerical.

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CHAPTER 2

OBJECTIVES, NEED AND LIMITATIONS

2.1 Objectives

2.1.1 Primary objective

To Analyse the Customers’ Attitude, Preferences and Satisfaction Level

towards Investment in ICICI Prudential Life Insurance Company Ltd, Adyar, Chennai.

2.1.2 Secondary objectives

To understand the general profile and saving pattern of the investor.

To determine the reason for the investment made.

To determine the sector of insurance company preferred by investors

To analyze the factors influencing the investor in investing in insurance.

To analyze the relationship between the various investment avenues.

To determine the satisfaction level of policy holders of ICICI Prudential Life

Insurance Company.

To determine the position of ICICI Prudential Life Insurance Company among

various Life Insurance Companies.

18

2.2 Need For The Study

The last few years have been a watershed for assured return plans. As the

insurance sector has developed, there's been a growing acceptance by most policyholders

that the assured return era is a thing of the past. The private insurance companies are

focusing on the Market Linked Plans.

This study undertaken for ICICI Prudential Life Insurance Company Ltd

aims to analyse the customers’ attitude, preferences and satisfaction level towards

investment in the insurance industry and with special reference to ICICI Prudential Life

Insurance Company Ltd, Adyar, Chennai.

This has been done by preparing the questionnaire which contains questions

put forth to the respondents which would help in analyzing the profile and investing

habits of the investor, factor influencing the investor in investing in insurance and their

attitude and perception investment in insurance companies.

This study would help in determining the future preference of the investors.

All this would help in giving suggestions to ICICI Prudential Life Insurance Company

Ltd, in strengthening their marketing efforts, in tapping private insurance companies’

schemes and expand their business.

19

2.3 Limitations of The Study

The area of study is limited to Adyar, Chennai City only; hence the results may

not be true for other geographical areas.

Validity & Reliability of the data are obtained depends on the responses from the

customer.

Structured questionnaire are base for collecting the data, it may have

disadvantages of not being to probe deep into the respondents thoughts.

The time at the disposal of the researcher is limited.

The size of the sample comparing to the population is very less and hence it will

not represent the whole population.

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CHAPTER 3

RESEARCH METHODOLOGY

Research is an intensive study in a particular field to achieve at a better

conclusion of a problem. Research Methodology is a systematic way of solving the

problem. The methodologies followed for this study are as follows.

3.1 Research Design

The research design is the basic framework or a plan for a study that guides

the collection of data and analysis of data. In this market survey the design used is used

Descriptive Research Design. It includes surveys and fact-finding enquiries of different

kinds. The major purpose of descriptive research is description of state of affairs, as it

exists at present.

The information are collected from the individuals and analyzed with the

help of different statistical tools, for describing the relationship between various

variables, pertaining to investment in life insurance. Moreover cross table analysis has

been done for processing the data and information is derived to attain the objectives of

the study.

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3.2 Sampling Design

3.2.1 Population

Since the population of Adyar is large in number, researcher was unable to

collect information from all individuals due to limitation of time. So part of the

population is taken for analyzing and generating the findings, which is applicable for

total market. The Adyar area is mainly divided according to ward wise. Adyar area has

totally 12 wards. From each ward 15 samples were picked on random basics and data

were collected from each sample. But only 10 sample data has been used.

3.2.2 Sampling Technique

Simple Random Sampling Method is used to collect data. The Adyar area

is mainly divided according to ward wise. Adyar area has totally 12 wards. From each

ward 15 samples were picked on random basics and data were collected from each

sample. But only 10 sample data has been used.

3.2.3 Sample Size

The size of the sample is 120, and factors to be considered are time, cost and

effectiveness etc. The study was conducted during the period January 2006.

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3.2.4 Sample Unit

The respondents of the study are part of population of Adyar, Chennai city.

Each family is considered to be the sampling unit

3.2.5 Data Collection

The collection of data is considered to be one of the most important aspects

in the research methodology. Both primary and secondary data is used in this study in

order to meet the requirements of the purpose.

3.2.5.1 Primary Data

Under this study primary data was collected by using Structured

Questionnaire. The structured questionnaire consists of both open-ended and closed-

ended questions. The primary data has been collected through the questionnaire by means

of personal interview. The questionnaire consists of number of questions printed in a

definite order on a form. The primary data was collected from individuals residing in

Adyar, Chennai City, with the help of questionnaire, which was prepared after getting

inputs from experts and executives in ICICI Prudential.

3.2.5.2 Secondary Data

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The secondary data are sourced from various Life Insurance Companies

websites, Magazines, Books, Pamphlets, Periodical Surveys and Websites etc.

3.2.6 Tools Used

The collected data were analyzed with the help of Simple Percentage

analysis, Weighted Average Method, Sign Test and Chi- Square Test.

24

CHAPTER 4 - ANALYSIS AND INTERPRETATION

TABLE 4.1 – TABLE SHOWING THE GENERAL PROFILE OF RESPONDENT

GENDERMARTIAL STATUS

AGE INCOME EMPLOYEE PROFESSIONAL BUSINESS OTHERSGRAND TOTAL

26-35 NONE 5 5

MARRIED 36-45 NONE 4 3 7ABOVE

45NONE

2 2

FEMALEMARRIED

TOTAL 4 10 14

18-25 < 1 LAKH 3 3

UNMARRIED NONE 3 3

26-35 < 1 LAKH 3 3

UNMARRIED TOTAL 3 3 3 9

FEMALE TOTAL 3 7 13 23

26-35 < 1 LAKH 2 2

1-5 LAKH 4 4

36-45 1-5 LAKH 8 7 15

MARRIED 5-10 LAKH 2 2ABOVE

451-5 LAKH

2 25-10 LAKH 2 6 7 15

> 10 LAKH 1 1

MALEMARRIED

TOTAL 16 13 12 41

18-25 < 1 LAKH 2 2

5-10 LAKH 3 3

NONE 15 15

UNMARRIED 26-35 < 1 LAKH 5 5

1-5 LAKH 19 2 21

5-10 LAKH 4 1 5

NONE 2 2

36-45 > 10 LAKH 3 3

UNMARRIED TOTAL 26 7 6 17 56

MALE Total 42 20 18 17 97

GRAND TOTAL 45 27 18 30 120

CHART 4.1 - CHART SHOWING THE GENERAL PROFILE OF

RESPONDENTS

25

0

5

10

15

20

25

30

35

40

45

50

GENERAL PROFILE

NO

. OF

RE

SP

ON

DE

NT

S

EMPLOYEE PROFESSIONAL BUSINESS OTHERS

INFERENCE

From the above table and chart it can be viewed that,

Most of the Respondents are Male,

Most of the male respondents are in the age group of 26-35 and unmarried and

Female respondents in the age group of 36-45 and married,

Most of the respondents are working as employees.

TABLE 4.2 – TABLE SHOWING THE PERCENTAGE OF SAVINGS OF

RESPONDENTS

26

S.NoPERCENTAGE OF

SAVINGS

NO OF

RESPONDENTSPERCENTAGE

1 LESS THAN 5% 24 20%

2 5-10 % 56 47%

3 10-15 % 6 5%

4 MORE THAN 15% 0 0%

5 NOT APPLICABLE 34 28%

TOTAL 120 100%

INFERENCE

From the above table it can be viewed that,

47 % of the Respondents do 5-10 % Savings from their Income,

20 % of the Respondents do < 5 % Savings from their Income,

5 % of the Respondents do 10-15 % Savings from their Income,

None of the Respondents do > 15% Savings from their Income and

28 % of the Respondents are coming under the not applicable category.

CHART 4.2 – CHART SHOWING THE PERCENTAGE OF SAVINGS OF

RESPONDENTS

27

20%

47%

5%

0%

28%

LESS THAN 5% 5-10 % 10-15 % MORE THAN15%

NOTAPPLICABLE

PERCENTAGE OF SAVINGS

NO

OF

RE

SPO

ND

EN

TS

IN P

ER

CE

NT

AG

E

TABLE 4.3 – TABLE SHOWING THE REASON FOR INVESTMENT

28

S.No REASON

RESPONDENTS

PREFERENCE TOTAL

PERCENTAGE

OF

RESPONDENTS

PREFERENCE

TOTAL

PERCENTAGE

YES NO YES NO

1 LIFE COVER 35 85 120 29% 71% 100%

2 RETURNS 97 23 120 81% 19% 100%

3CAPITAL

APPRECIATION25 95 120 21% 79% 100%

4 TAX SAVINGS 34 86 120 28% 72% 100%

5 OTHERS 44 76 120 37% 63% 100%

INFERENCE


81 % of the Respondents says yes for Returns as reason of Investment,

29 % of the Respondents says yes for Life Cover as reason of Investment,

28 % of the Respondents says yes for Tax Savings as reason of Investment,

21 % of the Respondents says yes for Capital Appreciation as reason of

Investment,

37 % of the Respondents says yes for Others as reason of Investment.

CHART 4.3 – CHART SHOWING THE REASON FOR INVESTMENT

29

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

LIFE COVER RETURNS CAPITALAPPRECIATION

TAX SAVINGS OTHERS

REASON FOR INVESTMENT

RE

SPO

ND

EN

TS

IN P

ER

CE

NT

AG

EYES NO

TABLE 4.4 - TABLE SHOWING THE INSURANCE SECTOR PREFERRED BY

THE RESPONDENTS

30

S.No SECTOR NO OF RESPONDENTS PERCENTAGE

1 PUBLIC 95 79%

2 PRIVATE 25 21%

TOTAL 120 100%

INFERENCE


79 % of the Respondents prefer only Public Sector Insurance Companies,

21 % of the Respondents prefer only Private Sector Insurance Companies.

CHART 4.4 - CHART SHOWING THE INSURANCE SECTOR PREFERRED BY

THE RESPONDENTS

31

PUBLIC79%

PRIVATE21%

TABLE 4.5 - TABLE SHOWING THE NO. OF RESPONDENTS HAVING LIFE

INSURANCE POLICY

32

S.NoLIFE INSURANCE

POLICY

NO OF

RESPONDENTSPERCENTAGE

1 YES 98 82%

2 NO 22 18%

TOTAL 120 100%

INFERENCE


82 % of the Respondents are having Life Insurance Policy,

18 % of the Respondents are having Life Insurance Policy.

CHART 4.5 - CHART SHOWING THE NO. OF RESPONDENTS HAVING LIFE

INSURANCE POLICY

33

YES82%

NO18%

TABLE 4.6 – TABLE SHOWING THE POLICY HOLDINGS OF THE

RESPONDENTS

34

S.No COMPANY

RESPONDENTS

PREFERENCE TOTAL

PERCENTAGE

OF

RESPONDENTS

PREFERENCE

TOTAL

PERCENTAGE

YES NO YES NO

1 LIC 94 4 98 96% 4% 100%

2 ICICI Pru 45 53 98 46% 54% 100%

3 HDFC 17 81 98 17% 83% 100%

4 OTHERS 4 94 98 4% 96% 100%

INFERENCE

From the above table it can be viewed that, among the 98 Respondents,

Most of the Respondents are having policy of LIC,

ICICI Pru gets the second place,

HDFC comes the third and other company policy holders are very less.

35

CHART 4.6 – CHART SHOWING THE POLICY HOLDINGS OF THE

RESPONDENTS

96%

46%

17%

4%4%

54%

83%

96%

0%

20%

40%

60%

80%

100%

120%

LIC ICICI Pru HDFC OTHERS

COMPANY

PE

RC

EN

TA

GE

OF

RE

SP

ON

DE

NT

S

YES NO

36

TABLE 4.7 – TABLE SHOWING THE FACTORS THAT INFLUENCE FOR

CHOOSING THE ABOVE SAID COMPANY

S.No FACTORS

RESPONDENTS

PREFERENCETOTAL

PERCENTAGE

OF

RESPONDENTS

PREFERENCE

TOTAL

PERCENTAGE

YES NO YES NO

1SUM

ASSURED49 49 98 50% 50% 100%

2 PREMIUM 89 9 98 91% 9% 100%

3TAX

BENEFITS45 53 98 46% 54% 100%

4 RETURNS 73 25 98 74% 26% 100%

INFERENCE


91 % of the Respondents says yes for premium as the major factor,

74 % of the Respondents says yes for returns as a factor,

50 % of the Respondents says yes for sum assured as a factor,

46 % of the Respondents says yes for tax benefits as a factor.

37

CHART 4.7 – CHART SHOWING THE FACTORS THAT INFLUENCE FOR

CHOOSING THE ABOVE SAID COMPANY

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SUM ASSURED PREMIUM TAX BENEFITS RETURNS

FACTORS

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS

YES NO

38

TABLE 4.8 – TABLE SHOWING THE POTENTIAL POLICY HOLDERS

PREFERENCES

S.No FACTORS

RESPONDENTS

PREFERENCETOTAL

PERCENTAGE

OF

RESPONDENTS

PREFERENCE

TOTAL

PERCENTAGE

YES NO YES NO

1 LIC 18 0 18 100% 0% 100%

2 ICICI Pru 0 18 18 0% 100% 100%

3 HDFC 0 18 18 0% 100% 100%

4 OTHERS 0 18 18 0% 100% 100%

INFERENCE


100 % of the Respondents are willing to take policy in LIC,

Other companies’ policy are not that much liked by the respondents.

39

CHART 4.8 – CHART SHOWING THE POTENTIAL POLICY HOLDERS

PREFERENCES

100%

0% 0% 0%0%

100% 100% 100%

0%

20%

40%

60%

80%

100%

120%

LIC ICICI Pru HDFC OTHERS

COMPANY

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS

YES NO

40

TABLE 4.9 – TABLE SHOWING THE FACTOR INFLUENCING THE

POTENTIAL POLICY HOLDERS PREFERENCES

S.No FACTORS

RESPONDENTS

PREFERENCETOTAL

PERCENTAGE

OF

RESPONDENTS

PREFERENCE

TOTAL

PERCENTAGE

YES NO YES NO

1SUM

ASSURED2 16 18 11% 89% 100%

2 PREMIUM 18 0 18 100% 0% 100%

3TAX

BENEFITS0 18 18 0% 100% 100%

4 RETURNS 6 12 18 33% 67% 100%

INFERENCE


100 % of the Respondents says yes for premium as the major factor,

33 % of the Respondents says yes for returns as a factor,

11 % of the Respondents says yes for sum assured as a factor,

None of the Respondents says yes for tax benefits as a factor.

41

CHART 4.9 – CHART SHOWING THE FACTOR INFLUENCING THE

POTENTIAL POLICY HOLDERS PREFERENCES

0%

20%

40%

60%

80%

100%

120%

SUM ASSURED PREMIUM TAX BENEFITS RETURNS

FACTORS

PE

RC

EN

TA

GE

OF

RE

SP

ON

DE

NT

S

YES NO

42

TABLE 4.10 – TABLE SHOWING THE PLANS PREFERRED BY THE POLICY

HOLDERS

S.NoNAME OF

THE PLAN

RESPONDENTS

PREFERENCE TOTAL

PERCENTAGE

OF

RESPONDENTS

PREFERENCE

TOTAL

PERCENTAGE

YES NO YES NO

1RETIREMENT

PLAN46 52 98 47% 53% 100%

2 CHILD PLAN 10 88 98 10% 90% 100%

3INVESTMENT

PLAN68 30 98 69% 31% 100%

4SAVINGS

PLAN77 21 98 79% 21% 100%

INFERENCE


79 % of the Respondents have chosen savings plan,

69 % of the Respondents have chosen investment plan,

47 % of the Respondents have chosen retirement plan,

10 % of the Respondents have chosen child plan.

43

CHART 4.10 – CHART SHOWING THE PLANS PREFERRED BY THE POLICY

HOLDERS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

RETIREMENT PLAN CHILD PLAN INVESTMENT PLAN SAVINGS PLAN

VARIOUS PLAN

PE

RC

EN

TA

GE

OF

RE

SP

ON

DE

NT

S

YES NO

44

TABLE 4.11 – TABLE SHOWING THE FUTURE PLAN OF RESPONDENTS OF

TAKING POLICY IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY

S.No OPINION NO OF RESPONDENT PERCENTAGE

1 YES 45 37.5%

2 NO 75 62.5%

TOTAL 120 100%

INFERENCE


Only 37.5 % of the Respondents are willing to take policy in ICICI Prudential,

62.5 % of the Respondents are not willing to take policy in ICICI Prudential.

45

CHART 4.11 – CHART SHOWING THE FUTURE PLAN OF RESPONDENTS

OF TAKING POLICY IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY

YES38%

NO62%

46

TABLE 4.12 – TABLE SHOWING THE ICICI PRUDENTIAL LIFE INSURANCE

COMPANY PLANS PREFERRED BY THE RESPONDENTS

S.NoNAME OF

THE PLAN

RESPONDENTS

PREFERENCE TOTAL

PERCENTAGE

OF

RESPONDENTS

PREFERENCE

TOTAL

PERCENTAGE

YES NO YES NO

1RETIREMENT

PLAN8 37 45 18% 82% 100%

2 CHILD PLAN 1 44 45 2% 98% 100%

3INVESTMENT

PLAN28 17 45 62% 38% 100%

4SAVINGS

PLAN8 37 45 18% 82% 100%

5 OTHERS 1 44 45 2% 98% 100%

INFERENCE


62 % of the Respondents are willing to choose investment plan,

18 % of the Respondents are willing to choose savings plan and retirement plan,

Only 2 % of the Respondents are willing to choose child plan and other plans.

47

CHART 4.12 – CHART SHOWING THE ICICI PRUDENTIAL LIFE

INSURANCE COMPANY PLANS PREFERRED BY THE RESPONDENTS

0%

20%

40%

60%

80%

100%

120%

RETIREMENTPLAN

CHILD PLAN INVESTMENTPLAN

SAVINGS PLAN OTHERS

VARIOUS PLANS

PERC

ENTA

GE

OF

RESP

ON

DEN

TS

YES NO

48

49

TABLE 4.13 – TABLE SHOWING THE RANKING OF VARIOUS LIFE

INSURANCE COMPANIES

RANKS 1 2 3 4 5 6 7 8 9 10 11 12 13 14TOT* WA** RANKWEIGHT

(Y)14 13 12 11 10 9 8 7 6 5 4 3 2 1

LIC(X1) 90 25 0 0 0 0 0 0 0 0 0 0 0 0 11513.78 1

X1*Y 1260 325 0 0 0 0 0 0 0 0 0 0 0 0 1585

HDFC(X2) 0 22 35 28 5 2 2 0 0 0 0 0 0 0 9411.68 3

X2*Y 0 286 420 308 50 18 16 0 0 0 0 0 0 0 1098

MAX(X3) 0 0 6 7 0 9 18 6 1 0 0 0 0 0 478.98 6

X3*Y 0 0 72 77 0 81 144 42 6 0 0 0 0 0 422

ICICI(X4) 18 65 11 0 2 3 0 0 0 0 0 0 0 0 9912.89 2

X4*Y 252 845 132 0 20 27 0 0 0 0 0 0 0 0 1276

KOTAK(X5)

5 0 0 0 0 0 0 0 0 10 4 2 0 0 216.76 11

X5*Y 70 0 0 0 0 0 0 0 0 50 16 6 0 0 142

BIRLA(X6)

0 0 0 0 0 0 0 0 4 0 15 0 4 2 253.76 13

X6*Y 0 0 0 0 0 0 0 0 24 0 60 0 8 2 94

TATA(X7) 0 0 2 0 0 1 0 0 0 0 4 12 0 3 224.00 12

X7*Y 0 0 24 0 0 9 0 0 0 0 16 36 0 3 88

SBI(X8) 2 0 0 13 12 4 4 18 4 0 0 0 5 0 628.37 7

X8*Y 28 0 0 143 120 36 32 126 24 0 0 0 10 0 519

ING(X9) 0 0 0 0 12 7 2 7 14 1 2 0 0 0 457.67 10

X9*Y 0 0 0 0 120 63 16 49 84 5 8 0 0 0 345

BAJAJ(X10)

0 5 48 27 10 8 0 0 0 0 0 0 0 0 9811.33 4

X10*Y 0 65 576 297 100 72 0 0 0 0 0 0 0 0 1110

AVIVA(X11)

0 0 3 7 16 12 6 3 7 0 0 0 0 0 549.11 5

X11*Y 0 0 36 77 160 108 48 21 42 0 0 0 0 0 492

METLIFE(X12)

0 0 0 0 17 6 11 13 1 0 0 0 5 0 537.91 9

X12*Y 0 0 0 0 170 54 88 91 6 0 0 0 10 0 419

AMP(X13) 0 0 2 10 10 11 5 1 9 11 0 3 0 0 628.03 8

X13*Y 0 0 24 110 100 99 40 7 54 55 0 9 0 0 498

SAHARA(X14)

0 0 0 0 0 0 0 0 0 4 0 0 3 14 211.90 14

X14*Y 0 0 0 0 0 0 0 0 0 20 0 0 6 14 40

*TOT – TOTAL; **WA – WEIGHTED AVERAGE

INFERENCE

From the above table,

Life Insurance Corporation of India, ICICI Prudential Life Insurance

Company and HDFC Standard Life Insurance Company are the leading Life

Insurance Companies in this sector.

Max New York Life Insurance Company, SBI Life Insurance Company and

AMP Sanmar Life Insurance Company are the companies which have started

to set path in the Life Insurance sector.

The Respondents were not much aware of the following Life Insurance

Companies. Kotak Mahindra Old Mutual Life Insurance Company, TATA

AIG Life Insurance Company, Birla Sun Life Insurance Company and

Sahara India Insurance Company.

50

51

TABLE 4.14 – TABLE SHOWING THE ICICI PRUDENTIAL POLICY

HOLDERS SATISFACTION LEVEL AMONG THE VARIOUS FACTORS

FACTORSHIGHLY

SATISFIEDSATISFIED NEUTRAL

DIS-SATISFIED

HIGHLY DISSATISFIED TOTAL WA* RANK

WEIGHT(Y) 5 4 3 2 1

RETURNS(X1) 20 17 9 0 0 464.24 4

X1*Y 100 68 27 0 0 195

CLAIM SETTLEMENT

(X2)1 29 16 0 0 46

3.67 6

X2*Y 5 116 48 0 0 169

BONUS(X3) 0 3 34 9 0 462.87 8

X3*Y 0 12 102 18 0 132

GUARANTEED ASSURANCE

(X4)0 20 26 0 0 46

3.43 7

X4*Y 0 80 78 0 0 158

LOAN AVAILING(X5)

2 1 25 18 0 462.72 9

X5*Y 10 4 75 36 0 125

PREMIUM AMOUNT(X6)

7 35 4 0 0 46

4.07 5X6*Y 35 140 12 0 0 187

PREMIUM PAYMENT MODE(X7)

24 22 0 0 0 46

4.52 2

X7*Y 120 88 0 0 0 208

PREMIUM PAYMENT WAYS(X8)

38 8 0 0 0 46

4.83 1

X8*Y 190 32 0 0 0 222

LIFE COVER(X9)

16 28 2 0 0 46

4.30 3X9*Y 80 112 6 0 0 198

*WA – WEIGHTED AVERAGE

INFERENCE:


The Respondents have ranked the factor Premium Payment Ways as First

among the various factors.

The Respondents have ranked the factor Premium Payment Mode as Second


The Respondents have ranked the factor Life Cover as Third among the various

factors.

The Respondents have ranked the factor Return as Fourth among the various

factors.

The Respondents have ranked the factor Premium Amount as Fifth among the

various factors.

The Respondents have ranked the factor Claim Settlement as Sixth among the

various factors.

The Respondents have ranked the factor Guaranteed Assurance as Seventh


The Respondents have ranked the factor Bonus as Eighth among the various

factors.

The Respondents have ranked the factor Loan Availing as Ninth among the

various factors.

52

SIGN TEST

Sign test is one of the non-parametric tests. Its name comes from the fact that

it is based on the direction of a pair of observations, not on their numerical magnitude. It

is used to test the hypothesis concerning no difference among two or more variables. The

sign test has important applications in the problems where we deal with paired data. In

such problem each pair of values can be replaced with positive sign if the value of the

first sample is greater than value of the second sample and negative signs if the value of

the first sample is less than value of the second sample. In case the two values are equal,

the pair will be discarded.

Test statistics

p – P

Z = σ p

where,

n : is the sample size (total no. of +ve and – ve sign excluding zero)

no. of +ve signp : is the proportion of successes and calculated as, p =

n P : is the hypothesized proportion and P = 0.5

σ p : is the standard error of the proportion

(p*q)and calculated as σ p =

√ n both p and q has the value 0.5

Level of Significance

The Level of Significance for the sign test is 5% and corresponding

table value Zα is 1.96

53

TABLE 4.15 – FINDING THE RELATIONSHIP BETWEEN THE INVESTMENT

AVENUE SHARES AND BONDS

Null Hypothesis (H0) : There is no significant difference between the Investment avenue

of Shares and Bonds

Alternate Hypothesis (H1) : There is a significant difference between the Investment

avenue of Shares and Bonds

SHARES 1 2 5 2 2 1 5 3 3 5 1 1 1 1 2 2 1 2 5 1 2 4 4 1 2

BONDS 8 6 6 3 8 5 7 4 4 7 2 8 4 3 3 3 3 8 6 6 3 5 5 6 3

SIGN - - - - - - - - - - - - - - - - - - - - - - - - -

SHARES 1 5 2 2 1 2 1 2 2 1 3 2 1 2 1 1 1 1 3 2 1 2 1 2 2

BONDS 6 7 6 3 6 6 3 5 5 2 6 5 6 3 5 2 4 4 6 5 2 5 6 6 3

SIGN - - - - - - - - - - - - - - - - - - - - - - - - -

SHARES 1 2 1 2 1 2 2 1 1 1 1 1 5 1 2 2

BONDS 6 3 3 3 6 3 8 3 8 4 3 4 6 8 6 3

SIGN - - - - - - - - - - - - - - - -

54


No. of + ve sign = 0

No. of – ve sign = 66

No. of zero’s = 0

Sample size n = 66

p = (0 / 66) = 0

σ p = √ ((0.5 * 0.5) / 66) = 0.0615

Z = ((0 - 0.5) / 0.0615) = -8.13

Z = 8.13

Zα = 1.96

INTERPRETATION

Calculated Z value is more than the table value of Z, so reject Null

Hypothesis. So, There is a significant difference between the investment avenue of

Shares and Bonds.

55

56

Similarly Sign Test was conducted, the following tables were formed and

interpretations were concluded.

TABLE 4.16 – TABLE SHOWING THE CONSOLIDATED SIGN TEST FOR

THE VARIOUS INVESTMENT AVENUES

S.NoNULL HYPOTHESIS

(H0)

ALTERNATE

HYPOTHESIS (H1) ZINTERPRETATION

1

There is no significant

difference between the

Investment avenue of

Shares and Mutual

Fund

There is a significant



Shares and Mutual

Fund

1.02 Accept H0

2




Shares and Life

Insurance




Shares and Life

Insurance

4.65 Reject H0

3




Shares and Fixed

Deposit




Shares and Fixed

Deposit

3.98 Reject H0

Table value of Z, i.e., Zα = 1.96

57

S.NoNULL HYPOTHESIS

(H0)

ALTERNATE

HYPOTHESIS (H1) Z INTERPRETATION

4




Shares and Post Office

Scheme




Shares and Post Office

Scheme

3.80 Reject H0

5




Shares and Real Estate




Shares and Real Estate

7.79 Reject H0

6




Shares and Gold




Shares and Gold

7.83 Reject H0

7




Bonds and Mutual

Funds




Bonds and Mutual

Funds

6.65 Reject H0

8




Bonds and Life

Insurance




Bonds and Life

Insurance

0.98 Accept H0


58

S.NoNULL HYPOTHESIS

(H0)

ALTERNATE


9




Bonds and Fixed

Deposit




Bonds and Fixed

Deposit

4.25 Reject H0

10




Bonds and Post Office

Schemes




Bonds and Post Office

Schemes

4.06 Reject H0

11




Bonds and Real Estate




Bonds and Real Estate

0.25 Accept H0

12




Bonds and Gold




Bonds and Gold

0.51 Accept H0

13




Mutual Funds and Life

Insurance




Mutual Funds and Life

Insurance

3.88 Reject H0


59

S.NoNULL HYPOTHESIS

(H0)

ALTERNATE


14




Mutual Funds and

Fixed Deposit




Mutual Funds and

Fixed Deposit

4.96 Reject H0

15




Mutual Funds and Post

Office Schemes




Mutual Funds and Post

Office Schemes

4.8 Reject H0

16




Mutual Funds and Real

Estate




Mutual Funds and Real

Estate

7.47 Reject H0

17




Mutual Funds and Gold




Mutual Funds and Gold

7.82 Reject H0


60

S.NoNULL HYPOTHESIS

(H0)

ALTERNATE


18




Life Insurance and

Fixed Deposit




Life Insurance and

Fixed Deposit

4.53 Reject H0

19




Life Insurance and Post

Office Schemes




Life Insurance and Post

Office Schemes

4.36 Reject H0

20




Life Insurance and Real

Estate




Life Insurance and Real

Estate

0.35 Accept H0

21




Life Insurance and

Gold




Life Insurance and

Gold

1.11 Accept H0


61

S.NoNULL HYPOTHESIS

(H0)

ALTERNATE


22




Fixed Deposit and Post

Office Schemes




Fixed Deposit and Post

Office Schemes

6.12 Reject H0

23




Fixed Deposit and Real

Estate




Fixed Deposit and Real

Estate

4.76 Reject H0

24




Fixed Deposit and Gold




Fixed Deposit and Gold

3.81 Reject H0

24




Post Office Schemes

and Real Estate




Post Office Schemes

and Real Estate

4.76 Reject H0


62

S.NoNULL HYPOTHESIS

(H0)

ALTERNATE


26




Post Office Schemes

and Gold




Post Office Schemes

and Gold

3.81 Reject H0

27




Real Estate and Gold




Real Estate and Gold

8.3 Reject H0


CHI – SQUARE TEST METHOD

The Chi – square test is an important test amongst the several tests of

significance developed by statisticians. As a non-parametric test, “It can be used to

determine if categorical data shows dependency or the two classifications are

independent. It can also be used to make comparisons between theoretical populations

and actual data when categories are used.” The following are some of the conditions to

be satisfied,

Observations recorded and used are collected on random basis.

All the items in the sample must be independent.

No group should contain very few items, say less than 10.

The overall number of items must also be reasonably large.

Test Statistics

( Oi – Ei )2

Chi – Square ( 2א ) = Ei

Where,

Oi = Observed Frequency

Ei = Expected Frequency

N = Number of Respondents

Degrees Of Freedom

Degrees of freedom = (N-1)

Level of Significance

The Level of Significance for the test is 5%

63

TABLE 4.17 – FINDING THE RELATIONSHIP BETWEEN THE VARIOUS

FACTORS INFLUENCING THE INVESTMENT

Null Hypothesis (H0) : There is no significant difference between the various Investment

factors.

Alternate Hypothesis (H1) : There is a significant difference between the various

Investment factors.

FACTORS

PREFERENCE FOR THE SELECTION OF

COMPANY

OBSERVED EXPECTED

SUM ASSURED 49 64

PREMIUM 89 64

TAX BENEFITS 45 64

RETURNS 73 64

TOTAL 256 256

Calculated Chi- Square ( 2א ) Value = 20.1874

Level Of Significance = 0.05

Degrees Of Freedom (N-1) = 3

Table Value = 7.81

INTERPRETATION

Calculated 2א Value is greater than the Table Value, so Null Hypothesis (H0)

is rejected. Therefore, there is a significant difference between the various investment

factors.

64

TABLE 4.18 – FINDING THE RELATIONSHIP BETWEEN THE VARIOUS

PLANS IN WHICH THE RESPONDENTS HAVE INVESTED

Null Hypothesis (H0) : There is no significant difference between the various plans in

which the respondents have Invested.

Alternate Hypothesis (H1) : There is a significant difference between the various plans

in which the respondents have Invested.

NAME OF THE PLANRESPONDENTS PREFERENCE

OBSERVED EXPECTED

RETIREMENT PLAN 46 50.25

CHILD PLAN 10 50.25

INVESTMENT PLAN 68 50.25

SAVINGS PLAN 77 50.25

TOTAL 201 201

Calculated Chi- Square ( 2א ) Value = 53.1093

Level Of Significance = 0.05

Degrees Of Freedom (N-1) = 3

Table Value = 7.81

INTERPRETATION

Calculated 2א Value is greater than the Table Value, so Null Hypothesis (H0)

is rejected. Therefore, there is a significant difference between the various plans in which

the respondents have invested.

65

CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS

Most of the respondents are male and belongs to working category.

47% of the respondents are saving 5-10 % of their annual income.

81% of the respondents prefer returns as the reason of the investment.

79% of the respondents prefer public sector insurance company i.e., Life

Insurance Corporation of India.

Only 82% of the respondents are having Life Insurance Policies and the

remaining percentage of the respondents are willing to take policy in LIC.

94% of the respondents are having policies in LIC and next to it 46% of the

respondents are having policy in ICICI Prudential.

In future mostly all the respondents are willing to take policy in LIC.

Premium and Return are the major factor that influence in choosing the

companies and moreover the various investment factors like Sum Assured,

Premium, Tax Benefits and Returns are having a significant difference among

them. The order in which the factors influence are Premium, Returns, Sum

Assured and Tax Benefits.

66

Most of the respondents are interested to take policies of Savings Plan and

Investment Plan and moreover the various plans like Retirement Plan, Child Plan,

Investment Plan and Savings Plan are having a significant difference in which the

respondents have invested. The order in which the respondents prefer the plans

are Savings Plan, Investment Plan, Retirement Plan and Child Plan.

With regard to ICICI Prudential, Investment Plans are more attractive than other

plans.

With regard to ICICI Prudential, the respondents are very much satisfied with

Premium Collection Mode and Premium Payment Mode, but not satisfied with

Bonus provided and loan availing facility.

The preference of various pairs of investment avenues which has no significant

difference,

o with Shares is Mutual Fund (other avenues like Bonds, Life Insurance,

Fixed Deposit, Post Office Scheme, Real Estate and Gold has a significant

difference).

o with Bonds are Life Insurance, Real Estate and Gold (other avenues like

Mutual Fund, Fixed Deposit and Post Office Scheme has a significant

difference)

o with Life Insurance are Real Estate and Gold (Fixed Deposit and Post

Office Scheme has a significant difference)

LIC has got first rank among the various Life Insurance Companies and ICICI

Prudential has got second rank in the Life Insurance Sector.

67

5.2 SUGGESTIONS

The income group 1 to 5 lakh are more interested in investment in insurance. It is

suggested that while marketing this segment be considered.

Since Return is the main expectation of investors, it is recommended that this

aspect be reinforced while wooing prospective investors to ICICI Prudential.

Only few Respondents have planned to go for private life insurance, so the

schemes and advantage of ICICI Prudential must be promoted greatly.

The awareness of LIC is most and other private insurance companies remains

untapped. It is suggested that an attempt be made to bring out the advantages of

other ICICI Prudential schemes.

The respondents were only partially aware of Market Linked schemes. Since most

of the respondents prefer return as their investment option steps should be taken

to explain about the advantages of Market linked plans of ICICI Prudential.

Since most of the respondents prefer only certain schemes, all the other schemes

available in ICICI Prudential should be promoted and the insurers must be

updated on the highlights of the schemes.

With regard to ICICI Prudential the factors Bonus provided and Loan Availing

facility are not satisfactory to the customers. So it is recommended that to the

company that they have pay more attention to these factors.

68

5.3 CONCLUSION

The conclusion is arrived through the analysis and interpretation. The Study

undertaken for ICICI Prudential Life Insurance Company Limited has been successful in

analysis of the customers Attitude, Perception and Satisfaction Level towards Investment

in ICICI Prudential.

It has been found that the salaried person is more interested in having

insurance as an investment avenue for various reasons. LIC is the well known company

in the Insurance sector and Savings Plan is the well known scheme. The private insurance

companies are accepted to certain extent only and it has to be tapped to greater extent.

It has also found that the Investment Plan of ICICI Prudential is gaining more

advantage than other schemes. This is because that Returns has a major effect on

investment made by investors.

Based on the findings of the study a few suggestions have been given by the

researcher if considered would give strength to the marketing strategy of ICICI

Prudential in tapping investment in the field of insurance.

69

APPENDIX – I

Questionnaire

1. Name:

Address

Gender: (a) Male (b) Female

Age: (a) 18-25 (b) 26-35 (c) 36-45 (d) Above 45

Martial Status: (a) Married (b) Unmarried

2. Nature of employment(a) Employee (b) Professional (c) Business (d) Agriculture (e) Others

3. Annual income(a) Less than 1 lakh (b) 1-5 lakh (c) 5-10 lakh (d) More than 10 lakhs

4. How much will you save?(a) Less than 5% (b) 5-10% (c) 10-15% (d) More than 15%

5. Your preference for investment (Rank them)

SharesBonds Mutual Fund Life insuranceFixed Deposit Post Office Scheme Real EstateGoldOthers

6. Reason for your investment(a) Life Cover (b) Returns (c) Capital Appreciation (d) Tax Savings (e) Others

7. Which sector of insurance you prefer?(a) Public (b) Private

8. Do you have Life Insurance Policy?Yes / No

70

9. If yes, in which company do you have the policy(a) LIC (b) ICICI Pru (c) HDFC (d) Others…………………

10. Reason for your preference for the above said company(a) Sum Assured (b) Premium (c) Tax Benefits (d) Return (e) Others

11. In which plan have you invested? (a) Retirement Plan (b) Child Plan (c) Investment Plan (d) Savings Plan (e)Others …………………..

12. If no (Q.No. 8), do you have an idea to take life insurance policy?Yes / No

13. Which company do you prefer to take policy?(a) LIC (b) ICICI Pru (c) HDFC (d) Others …………………

14. Reason for your preference for the above said company(a) Sum Assured (b) Premium (c) Tax Benefits (d) Return (e) Others

15. Rank the following Insurance Company

Life Insurance Corporation of IndiaHDFC Standard Life Insurance Company Ltd.Max New York Life Insurance Co. Ltd.ICICI Prudential Life Insurance Company Ltd.Kotak Mahindra Old Mutual Life Company LimitedBirla Sun Life Insurance Company Ltd.Tata AIG Life Insurance Company Ltd.SBI Life Insurance Company Limited.ING Vysya Life Insurance Company Private LimitedBajaj Allianz Life Insurance Company LimitedAviva Life Insurance Company Pvt. Ltd.MetLife India Insurance Company Pvt. Ltd.AMP Sanmar Life Insurance company LtdSahara India Insurance Company Ltd

16. Do you have an idea to take a policy in ICICI PruYes / No

17. In which plan do you like to invest? (a) Retirement Plan (b) Child Plan (c) Investment Plan (d) Savings Plan (e)Others …………………..

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18. What is your satisfaction level towards ICICI Prudential products with regards to the following factors?

Particulars Highly Satisfied

Satisfied Neutral Dissatisfied Highly Dissatisfied

Returns

Claim Settlement

Bonus

Guaranteed Assurance

Loan availing

Premium Amount

Premium payment mode

Premium payment ways

Life cover

19. Do you need any advisors from ICICI Prudential to explain about the products?Yes / No

20. If yes through what means,(a) Calls (b) Meet (c) Mail

21. Any Suggestion

THANK YOU

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REFERENCES

1 Kothari. C.R (2004): ‘Research Methodology Methods & Techniques’, New Age

International Publishers, New Delhi, 2nd Edition.

2 Richard I. Levin, David S. Rubin (2004): ‘Statistics for Management’, Prentice Hall

of India Private Limited, New Delhi, 7th Edition.

3 Insurance: Principles and Practices- by Mathew.

4 Life Insurance Agent’s Licensing Course; Centre for Management Development,

New Delhi.

Websites

www.irda.com

www.licindia.com

www.iciciprulife.com

www.prudential.co.uk

www.insuremagic.com

www.google.com

Magazines

Business Today.

Business World.

Industrial Economist

The Hindu Business Line.

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Documents

A STUDY ON ANALYSIS OF THE CUSTOMERS’ ATTITUDE, PREFERENCE AND SATISFACTION LEVEL TOWARDS INVESTMENT IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED, ADYAR, CHENNAI