Bala ( Astudy on Customer Perception Towards Life Insurance Policies)

8/17/2019 Bala ( Astudy on Customer Perception Towards Life Insurance Policies)

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A project report

on

A study on Customers perception on life insurance policies

at

Zen insurance Pvt ltd.

Submitted in partial fulfillment of theRequirements for the award of the Degree

of

MASTER OF !S"#ESS ADM"#"STRAT"O#

Submitted $

Bala

14BK1E00

!nder the %uidance of

Mr. K.V..!A"#A K$MA

%&' ( Assistant Professor

'EPA"ME)" &* B$!+)E!! A'M+)+!"A"+&)

!" PE"E! E),+)EE+), C&--E,E

&Affiliated to 'awaharlal #ehru Technological !ni(ersit$ )$derabad*)$derabad

+,-. / +,-0


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1)A2TER "

"#TROD!1T"O#

+)"&'$C"+&) "& "%E !"$'#

E(er$one is e3posed to (arious ris4s5 Future is (er$ uncertain6 but there is wa$ to protect

one7s famil$ and ma4e one7s children7s future safe5 8ife "nsurance companies help us to

ensure that our famil$7s future is not just secure but also prosperous5

8ife "nsurance is particularl$ important if $ou are the sole breadwinner for $our famil$5

The loss of $ou and $our income could de(astate $our famil$5 8ife insurance will ensure

that if an$thing happens to $ou6 $our lo(ed ones will be able to manage financiall$5 This

stud$ titled 9Stud$ of 1onsumers 2erception about 8ife "nsurance 2olicies: enables the

8ife "nsurance 1ompanies to understand how consumer7s perception differs from person


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to person5 )ow a consumer selects6 organi;es and interprets the ser(ice qualit$ and the

product qualit$ of different 8ife "nsurance 2olicies6 offered b$ (arious 8ife "nsurance

1ompanies5

a5 1ertain sum6 termed as premium6 is charged in consideration6

b5 Against the said consideration6 a large amount is guaranteed to be paid b$

the insurer who recei(ed the premium6

c5 The compensation will be made in certain definite sum6 i5e56 the loss or the

polic$ amount which e(er ma$ be6 and

d5 The pa$ment is made onl$ upon a contingenc$

More specificall$6 insurance ma$ be defined as a contact between two parties6 wherein

one part$ &the insurer* agrees to pa$ to the other part$ &the insured* or the beneficiar$6 a

certain sum upon a gi(en contingenc$ &the ris4* against which insurance is required5

T?2ES OF "#S!RA#1E

"nsurance occupies an important place in the modern world because of the ris46 which

can be insured6 in number and e3tent owing to the growing comple3it$ of present da$

economic s$stem5 The different t$pe of insurance ha(e come about b$ practice within

insurance companies6 and b$ the influence of legislation controlling the transacting of


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insurance business6 broadl$6 insurance ma$ be classified into the following categories>

-5 1lassification from business point of (iew

a* 8ife insurance6 and

b* %eneral insurance

+5 1lassification on the basis of nature of insurance

a* 8ife insurance

b* Fire insurance

c* Marine insurance

d* Social insurance6 and

e* Miscellaneous insurance

@5 1lassification from ris4 point of (iew

a* 2ersonal insurance

b* 2ropert$ insurance

c* 8iabilit$ insurance

d* Fidelit$ general insurance


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8"TERAT!RE

RE"E<

8"TERAT!RE RE"E<

A1B%RO!#D OF T)E ST!D?

98ife "nsurance is a contract for pa$ment of a sum of mone$ to the person assured

on the happening of the e(ent insured against:5 !suall$ the insurance contract pro(ides

for the pa$ment of an amount on the date of maturit$ or at specified dates at periodic

inter(als or at unfortunate death if it occurs earlier5 Ob(iousl$6 there is a price to be paid

for this benefit5 Among other things the contracts also pro(ides for the pa$ment of

premiums6 b$ the assured5

8ife "nsurance is uni(ersall$ ac4nowledged as a tool to eliminate ris46 substitute

certaint$ for uncertaint$ and ensure timel$ aid for the famil$ in the unfortunate e(ent of

the death of the breadwinner5 "n other words6 it is the ci(ili;ed world7s partial solution to

the problems caused b$ death5 8ife insurance helps in two wa$s dealing with premature

death6 which lea(es dependent families to fend for themsel(es and old age without (isible


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means of support5 The most common t$pes of life insurance are whole life insurance and

term life insurance5


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specific ris4 or ris4s in e3change for the pa$ment of a consideration commonl$ 4nown as

a premium5 The nature and e3tent of the ris4 helps to determine the common of the

premium5

1ontracts of insurance are based on considerations of indi(idual interest and accordingl$

the rules which go(ern them are not applicable to social insurance schemes which rest

on socioGeconomic considerations and are implemented b$ the state on a compulsor$

basis e5g #SSA

%+!"&+CA- BACK,&$)'

The modern insurance contract has its roots in two distinct lines of de(elopment i5e5

i* The practice of mutual financial assistance which e(entuall$ ga(e rise to

Mutual insurance6 and

ii* 1ontract of ris4 spreading for consideration which de(eloped into the

contract of insurance for profit or premium insurance in the narrow sense

of the word5

M$"$A- +)!$A)CE

Among the Romans6 and e(en ancient %reece and Eg$pt6 societies e3isted which afforded

members certain benefit such as proper burial ris4s or a financial contribution towards

buried costs5 These societies can hardl$ be regard as insurer6 but ne(ertheless the$

represented the idea of mutual assistance in case of materiali;ation of ris4s5

This idea gained prominence in the guilds or similar associations which e3isted in Europe

and England during the middle ages5 The associations afforded members or their

dependant assistance in case of loss caused b$ perils such as fire6 shipwrec46 theft6

sic4ness or death5

The guilds de(eloped into communities which were formed e3pressl$ to spread specific

ris4s amongst persons e3posed to those ris4s b$ granting each member of the group a

legal right to assistance if the ris4 materiali;ed5 "n e3change for this right members

undertoo4 to pa$ regular contributions or premiums5 "n this wa$ the concept of

communit$ of similarl$ e3posed persons become firml$ entrenched as an element of the

concept of insurance5


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+)!$A)CE *& P&*+"

The idea underl$ing modern profit insurance was manifested in ab$lonia almost +,,

$ears before 1hrist in a contract of trading capital to tra(eling merchants5 The contract

contained a clause that the ris4 of loss due to robber$ in transit was borne b$ the part$

pro(iding the loan5 "n consideration for bearing this ris46 the lender calculated interest on

the loan at an e3ceptionall$ high rate5 "nsurance for profit as an independent t$pe of

contact de(eloped from ris4 contained in maritime loans and certain contract of purchase

and sale5 The central theme was transfer of ris4s in e3change for a consideration in

mone$5 The profit moti(e pro(ided an incenti(e for a careful calculation of both the ris4

and premium5

The first clear records of contracts which pro(ided for the underta4ing of a ris4 in

e3change for mone$ b$ an independent part$ not in(ol(ed in the trade transaction from

which the ris4 and emanated would seem to be documents containing contracts for the

transfer of maritime ris4 gained currenc$ towards the end of -.th centur$5 "ndependent

ris4 bearing for consideration had b$ them de(eloped in the form of marine insurance5

*$"%E 'EVE-&PME)"

For a considerable period up to the -th centur$ marine insurance was the dominant form

of insurance5 "n the course of time howe(er6 the (arious t$pe of insurance as the$ e3ist

toda$ de(eloped from both mutual and profit insurance5 For instance6 life insurance

became an independent and acceptable contract of insurance towards the -0th or -th

centur$ while fire insurance contract gained currenc$ especiall$ from the - th centur$

onwards5

!&$CE! &* +)!$A)CE -A

The common law of Himbabwe is RomanGDutch law and as such one would e3cept to

find the Himbabwean law of insurance in modern 8egislation and in the writings of

Roman Dutch 'urists5 )owe(er6 Roman Dutch 8aw is not applied to man$ aspects of

insurance contracts5

Sections @ I . of the %eneral 8aw Amendment Act J1hapter >,K placed Himbabwean

insurance law into the mainstream legal principles which are 6 b$ and large 6


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homogeneous throughout the world5 The sections pro(ided that the English 8aw of fire6

life and marine insurance shall appl$ in Himbabwe e3cept statutes passed after -5

The significance of the date - lies in the fact that the %eneral 8aw Amendment Act

has its origin in the 1ape Act - and in terms of the said 1ape Act6 onl$ pre -

Statutes are binding5

"t is howe(er6 important to note that the %8AA was itself amended b$ section -@ of the

"nsurance &Amendment* Act6 #o5@ of +,,. with the effect that English law does not

appl$ to contracts concluded after the commencement of Act #o5@ of +,,.5

The %8AA ma4es English law applicable onl$ on questions of insurance6 not on

questions of other branches of law that ma$ arise in the course of an insurance dispute

Thus in Northern Assurance Co. Ltd v Methuen 1937 SR 103 English 8aw was held not

binding on a question relating to cesscession of right under a polic$5 "n the same case6

Mcllwaine A1' L -, applied the principle that if a clause in a polic$ was ta4en from

English policies6 the meaning gi(en to the clause b$ English law must go(ern5

"t is not altogether clear whate(er %8AA imports the English 8aw of insurance generall$6

or the import is confined to fire6 life and marine insurance5

"n Horne v Newport Gwit ! South "ritish #nsurance Co. Li$ited 19%1 R!N 7&1 '

77( &aso reported in 19%1)3* SA 3+( ' 3&3 * Maisels ' assumed that the plain wording

of the Act should not be e3tended= in other words English law must appl$ onl$ to fire6 life

and marine insurance5 Thus6 for e3ample6 the inclusion in a motor polic$ of co(er against

fire does not bring the whole polic$ under English law= but con(ersel$6 a claim on the fire

portion of a mi3ed polic$ will fall to be decided under English law5

The principle thus formulated seems clear enough but its application in(ariabl$ in(ol(es

some difficult$ in that while there are matters clearl$ peculiar to insurance e5g insurable

interest6 ris46 o(erunderGinsurance etc6 other matters are e(identl$ not peculiar to

insurance e5g stipulations in fa(our of @ rd parties6 trusts6 interpretation of policies6 offer

and acceptance and the li4e5 orderline cases often pause an agoni;ing challenge6 for

instance6 it has been held that warranties in insurance policies are go(erned b$ English

8aw &see Morris v Northern Assurance Co. Ltd 1911 C,- (93 ' 30+*6 $et one ma$

well as4 whether a warrant$ in an insurance polic$ differs substantiall$ from the concept


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of a warrant$ in the law of contract5 The applicabilit$ of English 8aw is thus open to

debate5

The South African Appellate Di(ision has traced the origins of the South African 8aw of

insurance to the -e/ mercatoria of the Middle Ages5 "n the ultimate anal$sis6 therefore6

it is clear that the RomanGDutch and English law of marine insurance stem from the same

original sources5

Since South Africa has ta4en a distincti(el$ RomanGDutch bias to insurance contracts

concluded after -6 it is proper to conclude that Himbabwe7s insurance law deri(es

from the preG- English statutes as read together with the post - RomanGDutch

common law5 "ndeed this is the (iew that is cr$stalised b$ Amendment #o5@ of +,,. in

specificall$ ousting English law in contracts concluded after the commencement of the

amendment5

C-A!!+*+CA"+&) &* +)!$A)CE

The most important criteria for classif$ing insurance contracts are the nature of the

interest insured= whether the object of the ris4 has been (alued or not = the nature of the

e(ent insured against= the possible duration of the contract= and the purpose of the

insurance5

+)'EM)+"# ( )&)+)'EM)+"# +)!$A)CE

This is the most fundamental distinction between (arious insurance contracts5

G "n indemnit$ insurance the contract between the parties pro(ides that the insurer

will indemnif$ the insured for loss or damage actuall$ suffered as the result of

the happening of the e(ent insured against5

G The whole purpose of the contract is to restore the insured to his status quo

ante and the insured ma$ not ma4e an$ profit out of his loss

G "n nonGindemnit$ insurance6 on the other hand6 the insurer underta4es to pa$ a

specified amount or periodical amounts to the insured merel$ on the

happening of the e(ent insured against e5g5 upon the death or injur$ of

insured5


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G "t is apparent that the distinction between indemnit$ and nonGindemnit$ has

been ta4en to lie in the nature of the interest insured7

G "n indemnit$ insurance the interest must be6 of necessit$ of a proprietar$

nature6 otherwise no financial loss or damage can be caused through its

impairment5

G On the other hand6 the interest which can be the object of a nonGindemnit$

contract of insurance must be regarded as nonGproprietar$ in substance5 2ut

differentl$6 nonGindemnit$ insurance depends on an e(ent which in(ariabl$

relates to the person of the insured or a third part$5

G An important consequence attached to the distinction between indemnit$ and

nonGindemnit$ insurance is that in nonGindemnit$ insurance the insurers are

not entitled to the benefits of proportionate contribution or subrogation5

P&PE"# ( -+AB+-+"# +)!$A)CE

G 2ropert$ insurance is concerned with the positi(e elements &assets* of the

insured7s patrimon$ or estate6 for instance ownership of his house or

e3pectation of future benefit5

G 8iabilit$ insurance is concerned with negati(e elements &liabilities* which

come into being as part of the insured7s patrimon$ e5g third part$ motor

(ehicle insurance5

C-A!!+*+CA"+&) ACC&'+), "& "%E )A"$E &* EVE)" +)!$E'

A,A+)!"

G E3amples include marine insurance6 fire insurance and personal insurance5 This

classification cuts across the fields of indemnit$ and nonGindemnit$ insurance5 "n

personal insurance6 we includes life insurance6 personal accident insurance and

medical insurance5 The e(ent insured against operates on the person of the insured

or a third part$5

G depending on the intention of the parties6 personal insurance ma$ either be

indemnit$ or nonGindemnit$ insurance while nonGpersonal insurance can onl$ be

indemnit$ insurance and nothing else5


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-&), "EM ( !%&" "EM +)!$A)CE

G8ong term insurance business is defined in the "nsurance Act as>

GShort term insurance business is also defined in the Act as>

The difference between long term insurance and short term insurance appears to

lie in the fact that long term insurance is concerned onl$ with life insurance

whereas short term insurance deals with forms of insurance which are usuall$ of

short duration5

*EA"$E! &* +)!$A)CE

+)!$A)CE A! A C&)"AC"

&i* 'efinition

G "n Lae v Reinsurance Corporation Ltd 19%7)3* SA 1(+ )/* the court

adopted the following definition of a contract of insurance>

G 9 A contract etween an insurer and an insured where the insurer

undertaes in return 2or the pa$ent o2 a pre$iu$ to render to the insured a su$ o2 $one or its e4uivaent on the happenin5 o2 a speci2ied uncertain

event in which the insured has so$e interest :

G this definition is important in that it elucidates the difference between wagers

and insurance contracts6 namel$6 the e3istence of an insurable interest in the

case of an insurance contract proper5

From the definition cited abo(e it is apparent that an insurance contract must

pro(ide for>

&a* pa$ment of a premium

&b* performance or an underta4ing to perform in e3change for the premium

&c* the possibilit$ of an uncertain e(ent on the outcome of which the performance

of the insurer depends on the ris45

&d* An insurable interest in the uncertain e(ent on the part of the insured5

ii2 E!!E)"+A- +),E'+E)"! &* A C&)"AC" &* +)!$A)CE


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a2 Premium

G "n English 8aw the requirement of a premium for insurance is said to be an

application of the general requirement of (aluable consideration in the sense

of a 4uid pro 4uo5

G !nder South African 8aw the requirement of (aluable consideration is not

recogni;ed5 "t is against the bac4ground of the South African 8aw that a

premium would not seem to be a requirement for the (alidit$ of a contract of

insurance5

G "t is important to note that essential for the e3istence of an insurance contract

is an underta4ing b$ the insured to pa$ a premium for his insurance6 and not

pa$ment of the premium as such5

G )owe(er6 it has become customar$ to include in a polic$ a term which ma4es

performance b$ the insurer subject to prior pa$ment of the premium5

G The underta4ing to ma4e a monetar$ pa$ment as a premium need not be for a

specific amount but it must at least be ascertainable in order to meet the

requirements relating to the (alidit$ of contracts in general5

32 Performance 3y insurer

G "n indemnit$ insurance6 performance b$ the insurer is meant to compensate

the insured for loss suffered b$ him5 The usual means of performance b$ the

insurer is b$ pa$ment of mone$ i5e indirect compensation5

G The insurer7s performance ma$ also be b$ wa$ of direct or ph$sical

compensation if the contract so stipulates6 for e3ample6 reinstatement clauses

frequentl$ encountered in insurance contracts6 in terms of which the insurer is

gi(en the option to restore the propert$ affected b$ the peril to the condition in

which it was before the loss5

G "n -epart$ent o2 6rade and #ndustr vs St. Christopher Motorists

Association Ltd 197+ )1* Lods Rep 17 the court came to the conclusion

that a contract in terms of which a person is entitled to claim a chauffer

ser(ice if he becomes incapable of dri(ing his own car amounts to insurance5

G A contract which merel$ confers on a person a benefit not amounting to either

monetar$ or direct compensation cannot qualif$ as a contract of insurance e5g

a benefit that a claim to compensation will be considered at the sole discretion

of the insurer5


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G An underta4ing to compensate the insured in mone$ usuall$ in(ol(es not a

certain but merel$ an ascertainable performance5

G The performance of the insurer in nonGindemnit$ insurance is usuall$ in the

form of mone$5 )owe(er6 it does occur that in certain instances the insurer

underta4es to perform something other than pa$ mone$5 The amount insured

ma$ be specified or ma$ be in periodic pa$ments5

c2 is5uncertain event

Ge(er$ true contract of insurance depends on an element of uncertaint$ or

contingenc$ in the contract that the contract pro(ides that the insurer will be

liable to perform if a specified but uncertain e(ent occurs5 This e(ent is

dependant upon a peril or ha;ard and the possibilit$ that the peril will cause

harm is 4nown as the ris45

G A contract can onl$ be classified as an insurance contract if the bearing of

the ris4 b$ the one part$ is a substantial part of the contract5

&d* +nsura3le interest as a c6aracteristic of insurance

'octrine of interest

Gthe idea that the actual e3istence of an insurable interest is an essential

feature of an insurance contract forms part of one of the oldest and most

fundamental doctrines of the law of insurance6 namel$6 the doctrine of

interest5 This doctrine dates bac4 to the Le8 $ercatoria of the Middle

Ages5

G The Doctrine lies at the root of the distinction between wagers and

insurance5 The first prominent commentator on the doctrine was 'e

Casare7is6 who argued that if the parties concluded a genuine contract of insurance the insured would onl$ be entitled to hold his insurer liable in

terms of the contract if the insured had an interest in the lost goods5 This

liabilit$ of the insurer was limited to the (alue of the insured7s interest55

1on(ersel$6 if the parties7 concluded a wager on the outcome of an e(ent

liabilit$ would follow in spite of the fact that the (alue of an$ interest that

might e3ist was less than the amount claimed or e(en that no interest

whatsoe(er e3isted5


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The foregoing (iew held b$ De 1asaregis is full$ in harmon$ with the

rules of English common law as it stood when wagers were legall$

enforceable5 The English common law pro(ided that an insurance

contract was onl$ enforceable if supported b$ an interest when the e(ent

insured against occurred6 while a wager was enforceable irrespecti(e of

whether or not there was an$ insurable interest5


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G "n South Africa the doctrine of insurable interest has been applied b$ some

1ourts in order to decide whether an insured has a claim for compensation5

)owe(er6 it has not $et been clearl$ decided whether the e3istence of a

contract of insurance depends on proof that an insurable interest in fact e3ists5


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G "nsurable interest ser(es a further function not onl$ at the conclusion of the

contract i5e when the insured is called upon to perform its part of the bargain

it must be established whether the insured had an insurable interest6 and if so

to what e3tent his insurable interest has been infringed5

G Also6 the insurable interest of the insured is regarded as the object of the

insurance i5e it is interest as such that is insured5

+)!$A)CE A! A P+)C+PA- ( +)'EPE)'E)" C&)"AC"

!+M+-A+"+E! BE"EE) +)!$A)CE ( !$E"#!%+P

G oth are depended upon an uncertain e(entG oth accomplish a mere indemnit$ to the e3clusion of profit5

G 1ertain legal rules applicable to insurance ha(e counterparts in the law of

suret$ship e5g5 the right to claim a contribution6 the right to demand a cession of

action6 and the right to be subrogated5 The later right6 which enables an insurer

who has made good a loss &compensated an insured* to proceed against the part$

who caused the loss6 has gi(en rise to the courts equating an insurer to a suret$5

,;R,


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onl$ be insurance if it is the intention of the parties that the insurer will indemnif$

the insured for an$ loss caused b$ the e(ent concerned6 that is6 non / fulfillment

of a contract5 "f it is the intention the obligation as such must be fulfilled b$ the

other part$6 the contract amounts to suret$ship5

*&MA"+&) &* A C&)"AC" &* +)!$A)CE

G=N=RAL ,R#NC#,L=S

The basis of contractual liabilit$ where the parties do not misunderstand each other is

consensus ad ide$ a$ino contrahendi.

G "n those cases where the parties misunderstand each other and apparent consente3ists6 liabilit$ rests on the reasonable reliance b$ a contracting part$ on the

e3istence of consensus5 This ma$ be termed constructi(e consent5 Alternati(el$ a

part$ can rel$ on the doctrine of estoppel if the$ can satisf$ the stringent

requirements of estoppel and wishes to a(ail himself of this remed$ in order to

hold a part$ bound b$ the appearance of consensus he created5 )owe(er6 for a

contract to e3ist as such actual or constructi(e consent must e3ist5

G A contract of insurance comes into e3istence as soon as the parties ha(e agreed

upon e(er$ material term of the contract the$ wish to ma4e such as the person or

propert$ to be insured6 the e(ent insured against6 the period of insurance and the

amount of premium5 The parties need not necessaril$ agree on non / essential

terms6 just that the$ must agree on the essentials for insurance5

G As a rule6 the parties to a contract of insurance do not appl$ their minds to each

specific term but rather contract on the basis of the insurer7s usual terms for the

particular t$pe of ris4 to be insured against5

G The contract of insurance onl$ comes into e3istence when consensus is reached5

"%E PA"+E!

G The ordinar$ indemnit$ policies there are usuall$ two parties i5e5 the insurer and

the insured5 The insured is the person who enjo$s protection in terms of the polic$

and he is first holder of the polic$5 Subsequent holders of the polic$ are in the

position of cessionaries5


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G "n terms of 2art """ Section of the "nsurance Act6 an insurer must be a bod$

corporate registered in terms of the Act5

G There ma$ also be a third part$ interested in a particular polic$6 (i;6 the

beneficiar$ in terms of a contract in fa(our of a @rd part$5

G The parties to a contract of insurance ma$ be represented b$ agents5

&**E

G "n general insurers do not ma4e binding offers to insure but rather in(ite the

parties to appl$ for insurance i5e5 an in(itation to treat5

G The actual offer is therefore made b$ the proposed insured b$ completing the

proposed form which6 as formulated b$ insurers do not lea(e much room for

bargaining between the parties5

G Most of the terms of the proposed contact are not e3pressl$ stated6 the intention

being to contract on the usual terms of the insurer5 Once a reference to the usual

terms is included in the contract6 the insured actuall$ agrees to them and cannot

afterwards be heard to sa$ that he did not ha(e the opportunit$ to ascertain the

e3act content of such terms5

G "n a case where the proposal b$ the insured to be is not acceptable to the insurer

as it stands but where the insurer is willing to contract on other terms6 a counter /

offer ma$ be made b$ the insurer5

ACC=,6ANC=

G This means an e3press or tacit statement of intention in which an offeree signifies

his unconditional assent to the offer5

G The insurer as offeree usuall$ accepts the offer b$ sending the proposer a polic$

accompanied b$ a co(ering letter communicating the acceptance5 !suall$ the (er$

act of sending the polic$ is sufficient to communicate acceptance5

G A demand for the premium b$ the insurer ma$ also operate as an acceptance5

G A firm acceptance ma$ also be contained in a an interim co(er note6 albeit such

note is generall$ an acceptance of a proposal for temporar$ co(er5

G "f a polic$ which is dispatched to the proposer differs from the terms of the offer

but the insurer did not intend it to differ6 the dispatch of the polic$6 subject to


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rectification of the polic$6 is sufficient to signif$ the insurer7s acceptance5

1on(ersel$6 if the polic$ issued is intended to differ from the proposal recei(ed b$

the insurer6 the issuance of the polic$ can at most be a counter offer requiring

acceptance b$ the insured to be5

"%E P&-+C#

G is the document e3pressing the terms of a contract of insurance 5 a contract of

insurance does not need to be in writing to be (alid but it has become standard

practice to reduce the contracts to writing5

G The effect of reducing the contract to writing is that the document6 b$ (irtue of the

parol e(idence rule6 becomes the onl$ record of the transaction between the

parties6 pro(ided the parties accept the written document as the sole memorial of

their transaction5

G


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G li4e an$ other contract a contract of insurance must be lawful5 The common law

renders illegal all contracts which are contrar$ to public polic$ or good morals5

The prohibition of a contract b$ the law ma$ relate to the conclusion or the

contract performance in terms of the contract6 or the purpose of the contract5

G "n line with the principle of sanctit$ of contracts and the rules of interpretations a

court6 when called upon to decide whether an insurance contract is unlawful6

attempts to uphold the contract b$ establishing whether the objectionable

elements can be se(ered from the contract with the remainder being enforceable5

!nless the illegalit$ appears e8 2acie the transaction sued upon6 a litigant who

wishes to rel$ on a defence of illegalit$ must plead and pro(e such illegalit$ and

the circumstances upon which it is founded5

G The requirements of lawfulness of contracts are go(erned b$ the general

principles of the law of contract and there are no principles peculiar to insurance

contracts5

G The litmus test for legalit$ in respect of certain contracts of insurance is to be

found in the pro(isions of the "nsurance Act6 for instance 2art "N of the Act6

Section .- forbids insurers to insure li(es of $oung children in e3cess of certain

amounts> Section of the Act also prohibits persons from carr$ing on an$ class of

insurance business in Himbabwe unless he is registered in terms of the Act as an

insurer in the class of insurance business carried on b$ him5 Other prohibitions

relate to licensing and other related aspects5

G The Act does not e3pressl$ pro(ide that a contract concluded in contra(ention of

its pro(isions is in(alid5


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,=R>;L

G "f the parties conclude an insurance contact to co(er the insured where the crime

or ci(il wrong of is closel$ associated with it6 the purpose of the agreement and

therefore the agreement itself is unlawful5

G "n Richards v Guardian Assurance Co. 1907 6H (+ it was decided that an

agreement to insure a house which was being used as a brothel was unlawful5 The

court e3plained that where the legislature has laid down that certain acts are

illegal6 all acts which tend to facilitate or encourage such illegal acts must

themsel(es be regarded as illegal5

;NR=AS


23/50

,=R>


24/50

G All contracts are subject to good faith i5e the$ are bona fide5

G "n modern case law and literature insurance contracts ha(e been classified as

contracts ueri$$ae 2idei 5 This is the pre(ailing classification in English 8aw5

G "n South Africa6 the Appellate Di(ision in Mutua #nsurance Co. Ltd v


25/50

G Therefore reference outmost good faith does not indicate a distinct principle of

law= there are no degrees of good faith6 such as little6 more or utmost good faith

&See Mutua ! >edera #nsurance Co Ltd v


26/50

accept the ris46 the e3tent of the ris4 to be accepted and the terms of the contract

such as the amount of premium to be charged5

G Since decisions concerning the ris4 and premiums are included in the contract

the$ must be ta4en before the contract is concluded5

G "n (iew of the fact that the requirements of good faith and the dut$ to disclose

material facts can ob(iousl$ be classified as part of the law on misrepresentation

and not as some distinct and strict or principle6 the position of the proposer is not

undul$ aggra(ated b$ the e3istence of these duties5

The principles of misrepresentation and good faith appl$ to all t$pes of insurance5

E@$+EME)"! *& -+AB+-+"# *& M+!EPE!E)"A"+&

G Misrepresentation is a delict and as such a part$ to a contract of insurance who

see4s relief on the ground of misrep must pro(e that the misrep meets all the

requirements for liabilit$ in delict6 namel$6 an act &conduct* committed b$ the

wrongdoer6 an element of wrongfulness attached to the act6 a detrimental result

which was caused b$ the wrongful conduct6 and &usuall$* a blameworthiness on

the part of the wrongdoer5

M+!EPE!E)"A"+&) B# C&MM+!!+&)

G "s a positi(e act consisting in a preGcontractual statement of fact made b$ one of

the parties to a contract of insurance5 The statement must be false or inaccurate

and wrongful6 and ma$ be accompanied b$ fault or ma$ be innocent6 and must

induce the other part$ to enter into the contract or to agree to specific terms in the

contract6 contrar$ to what he would ha(e done if he had not been misled5

E-EME)" &* M+!EP B# C&MM+!!+&)

P&!+"+VE AC" &* C&MM+!!+&)

G The representation ta4es place b$ means of a positi(e act or commission in the

form of an actual statement and not through omission5

G The statement ma$ be written or oral6 it ma$ comprise of an incorrect or

inaccurate answer gi(en to a question b$ an insurance agent or in a proposal form5


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!"A"EME)" &* *AC"

G A misrepresentation gi(e rise to liabilit$ onl$ if it consists in a statement of fact5 A

mere opinion does not suffice to incur liabilit$ on the part$ e3pressing it5

*A-!E & +)ACC$A"E !"A"EME)"

G the statement must be wholl$ false or at least inaccurate5

G The accurac$ of a settlement must be gauged b$ considering it within the conte3t

in which it was made5

G "t is sometimes said that a statement need not be correct in e(er$ detail6 howe(er

or substantiall$ correct5

&),*$--)E!!

G A positi(e representation is onl$ wrongful if it relates to material facts6 if it is

false and if the part$ to whom it is addressed was actuall$ misled in the sense that

he put his faith in the false representation5

M+!EPE!E)"A"+&) B# &MM+!!+&)

G A misrepresentation b$ omission is a wrongful omission b$ on of the parties to a

contract of insurance to disclose6 during the course of preGcontractual negotiations

certain facts within his 4nowledge6 thereb$ inducing the other part$ to enter into

the contract or to agree to specific terms in the contract6 contrar$ to what he

would ha(e done if the facts had been disclosed5 The omission ma$ be

accompanied b$ fault or ma$ e(en be completel$ innocent5

&MM+!!+&)

G although is can be t$pical as a settlement of fact6 the act which creates a wrong

impression is not a positi(e one6 but an omission6 namel$ the failure to remo(e an

e3isting fact which would ha(e done so5 The omission ma$ be a deliberate

concealment or an inad(ertent nonGdisclosure5


28/50

a2 'uty to disclose

G An omission is wrongful if it is committed in breach of a dut$6 resting on a part$

to act positi(el$5

G A dut$ to act positi(el$ arises if the circumstances are such that the imposition of

a dut$ is reasonable according to the legal con(ictions of the communit$5 A dut$

to disclose e3ists with reference to facts6 which are material to the contract in

question and if the representati(e has actuall$ been mislead b$ the failure to

disclose5

G The dut$ to disclose has been said to be 9the correlati(e of a right of disclosure

which is a legal principle of the law of insurance> &see Mutual *ederal

+nsurance Company -imited v &udts6oorn Municipality case*

G The reference to the dut$ of disclosure as being particularl$ related to the contract

of insurance must be understood as an e3pression of the fact that the

circumstances surrounding insurance contracts are t$picall$ circumstances gi(ing

rise to a dut$ to disclose5

&b* Facts within 4nowledge of Representor

G "n oe v Law ;nion and Crown #nsurance Co 190? )(0 " ?%3 )LA* ??+

Fletcher Moultin 8' said that the dut$ in point > 9is a dut$ to disclose6 and $ou

cannot disclose what $ou do not 4now5 The obligation to disclose6 therefore6

necessaril$ depends on the 4nowledge $ou possess:

G Section - of the Marine "nsurance Act of -,0 pro(ides that an insured 9is

deemed to 4now e(er$ circumstances which6 in the ordinar$ course of business6

ought to be 4nown b$ him:5

G


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of a kindred nature”. Further6 an insurer ma$ e3pressl$ limit the dut$ b$ stating

that no further information on a particular subject is required5

G The dut$ ma$ also be e3tended b$ question in a proposal form5

G 1ertain categories of facts which are6 in principle6 material ne(ertheless fall

outside the ambit of the dut$ to disclose e5 g5 those facts which are actuall$ 4nown

to the other part$ such as those which are matters of common 4nowledge e3isting

in the public domain or those matters that li(e within the sphere of 4nowledge of

the ordinar$ professional insurer5

G A proposer need not disclose facts tending to diminish the ris4 although the$ are

material to the insurer7s decision on whether to underta4e the ris4 and at what

premium

&d* Duration of dut$ of dut$ of disclosure5

G The dut$ seems to relate onl$ $o negotiations preceding the contract5 As 1orbett

'A remar4ed in 2ereira Marine and Trade "nsurance 1ompan$ 8imited

-C&.* SA .C &A* C0A “the purpose and rationale of the pre-contract

duty of disclosure could hardly apply after the conclusion of the contract.

G Therefore the dut$ attaches to material facts that come to a part$7s attention

during negotiations5 Once the contract comes into e3istence6 a part$ needs no

disclose material facts coming into his 4nowledge5

G "f a contract of insurance is renewed the dut$ of disclosure attaches just as

concluded5 This means that a part$ is obliged to disclose all material facts

including those which ha(e come to his 4nowledge since the conclusion of the

original contract5

Materiality of non disclosure

G The courts limited the actionabilit$ of false representations to those relating to

insurance matter are concerned5

See Stu$es D New Eeaand #nsurance Co. Ltd 19%3 )(* SA ++ )SR*

e v ,icerin5 19?0 ELR aso reported in 19?0)E* A 7&? )R*6

,icerin5 D Standard Genera #nsurance Co Li$ited 19?0 )+* SA 3(% )EA* '

331


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Mutua and >ederea #nsurance Co Li$ited D arr 19(1 Ad +13*

G The difficult$ that arises is what criteria is used to determine the probable

influence on the mind of the representati(e5

G The difficult$ arises in relation to misrep made b$ a proposer towards an insurer

where the facts are regarded as material if the$ will probabl$ influence the

decision of the insurer whether to accept the ris46 and if so6 at what premium5

G The criterion for determining the influence on the insurer7s decision is the

9reasonable man test: &See >ine v 6he Genera Accident >ire and Li2e

Assurance Corp Li$ited Coonia #ndustries v ,rovincia #nsurance Co6

,ereira D Marine and 6rade #nsurance6 Mutua ! >edera #nsurance v


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G According to the Appellate Di(ision this test is applied to determine6 whether or

not6 from the point of (iew of the a(erage prudent person6 the undisclosed

information or facts are reasonabl$ relati(e to the ris4 or the assessment of the

premium5

G A number of decisions suggest that the criterion is the judgment of a prudent and

e3perienced insurer6 which means the facts are material if the$ will influence the

mind of a prudent and e3perienced insurer in relation to the ris4 and its premium

&See such cases as Coonia #ndustries v ,rovincia #nsurance Co /htes

=state v -o$inion #nsurance Co o2 Mutua ! >ederea #nsurance Co v


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G For the sa4e of clarit$6 the test of materialit$ formulated in the Mutua and

>edera case is best e3pressed as referring to those facts which are reasonabl$ related

to the insurer7s decision when all the circumstances of the case are ta4en into account5

ENAM28E OF 1ATE%OR"ES OF FA1TS T)AT )AE EE# )E8D TO E

MATER"A8

G Facts indicati(e of e3ceptional e3posure to ris4 such as a dangerous occupational

or hobb$6 characteristics or attributes ma4ing the person or object e3posed to the

ris4 particularl$ (ulnerable5

G The insurance record6 for instance the fact that was cancelled )Coonia

#ndustries*.

G Subjecti(e circumstances affecting the ris4 such as the proposer7s financial or

business integrit$6 circumstances indicating that moti(e for insurance ma$ be

illegal or dishonest6 or the fact that the proposer is prone to cause the ris4 to

materiali;e5 An e3ample is where an insured fails to disclose that he is an

unrehabilitated insol(ent &See Sten v A


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"t means that a contract of insurance creates a personal right for an insurer against its

insured it terms of which it is entitled to recoup itself out of the proceeds of an$ rights

the insured ma$ ha(e against @rd parties in respect of the loss5

The right for reimbursement cannot be for more than the amount paid out the insurer

as indemnit$ to the insured5

Subrogation is concerned e3clusi(el$ with the mutual rights and liabilities of the

parties to the contract of insurance6 it confers no rights and imposes no liabilities on

third parties5

ecause the insurer is6 as against its insured entitled to be reimbursed out of the

proceed of the insured7s remedies against @rd parties6 the insured ma$ not acti(el$ deal

with his rights against @rd parties to the detriments of the insurer6 for instance b$

releasing the @rd part$ from liabilit$5

"n support of its right to reimbursement6 an insurer is also entitled to its insured7s

consent to bringing an action against a third part$ in the name of the insured5 This

latter right is 4nown as the insurer7s secondar$ right onl$ arises where the insured has

lost all interest in the outcome of the proceedings in that he has recei(ed full

compensation for all losses caused b$ the e(ent insured against5 The insurer then

becomes the do$inus itis although the action proceeds in the name of the insured5

The ad(antage for the insurer is that it can ensure that an action is brought against the

@rd part$ and that the proceedings are properl$ conducted5

"%E P$P&!E &* !$B&,A"+&)

"t purpose is to pre(ent the insured from retaining an indemnit$ from both the insurer

and a third part$5

Further6 through subrogation the insurer is recompensed for the amount it has paid to

the basis of the insured5 This right of redress is the basis of the insured7s dut$ not to

prejudice the insurer7s position5

$ affording the insurer a right of redress6 the cost of insurance to the public is 4ept

low6 since the insurer is enabled to recoup its loss from a source other than premium

income5


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On a social le(el the doctrine ser(es to safeguard the principles that a person who has

caused loss to another b$ his unlawful conduct must bear that loss since a wrongful

cannot hide behind insurance5

The doctrine of subrogation also strengthens the position of an insurer b$ creating a

trust in fa(our of the insurer5 "n Acer$an v "ouser 190?


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and whether such right could or could not be enforced by the insurer in the name of

the assured by the eercise or acquiring of which right or condition the loss against

which the loss is insured can be or has been diminished”

The insurer is therefore not onl$ entitled to the ad(antages of the insured remedies

against @rd parties who are contractuall$6 delictuall$ or otherwise liable for

compensation for the loss6 but also to the ad(antage of e(er$ other right6 pro(ided it

ser(es as a total or a partial substitute for the insured interest6 such as the proceeds of

a sale of an insured asset or compensation upon e3propriation5

Subrogation applies also to rights recei(ed b$ the insured e(en though no right to

recei(e such gifts e3isted when the loss occurred5

R=@;#R=M=N6S >


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&j* Right of action against third part$ must e3ist / subrogation can onl$ operate if the

insured in fact has a remed$ against a third part$ &See Ac4erman (s 8ouber --

O2D @- L @*

+,%"! &* "%+' PA"+E!

Although it is usuall$ the contracting parties who enjo$ the benefit of a polic$6 a third

part$ ma$ become entitled to claim under the polic$ b$ (irtue of a transfer of right to

him or b$ (irtue of a no(ation in his fa(our5

?et another wa$ in which a person ma$ become entitled to claim in terms of a polic$

concluded b$ another in his own name6 is accepting a benefit conferred upon him in

the polic$5

The notation of a third part$7s interest in a polic$ has certain consequences5

1. CE!!+&)

&a* Ordinar$ cession of insured7s rights5

&b* The insured can effect a transfer of his right&s* b$ wa$ of cession5

&c* 1ession b$ definition is an agreement which pro(ides that the cedent transfers a

right to the cessionar$5

&d* 1ession depends on consensus in the sense that cedent must ha(e the intention to

transfer the right to cessionar$ and that the cessionar$ must ha(e a corresponding

intention to recei(e the right5

&e* An insured can cede his claim in either indemnit$ or no / indemnit$ insurance

whether before of after the materiali;ation of the ris4 insured against5

&f* Although in principle rights under insurance policies ma$ be freel$ ceded without

the consent of the insurer6 policies frequentl$ contains clauses prohibiting or

regulating transfer5 Thus a polic$ ma$ contain an out and out prohibition on

alienation requiring the consent of the insurer to be obtained for a (alid cession5

)owe(er6 such a clause must be shown to ser(e a useful purpose otherwise it

cannot be enforced5 &See Northern Assurance Co. Ltd v Methuen 1937 SR 103


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>ouche v 6he Corp o2 London Assurance 1931 /L- 1+& ' 1&7 Gowie v

,rovident #nsurance Co )1??&* + SC 11? ' 1((* &See also Section C of the Act*

&g* Another t$pe pf clause requires the insured to gi(e notice of an intended cession

and states that the cession will ta4e effect onl$ upon registration b$ the insurer5

&h* The effect of a cession is that the claim (ests in the cessionar$ and nothing

remains with the cedent5 The cessionar$ is the creditor and a such is the onl$

person who can sue for or recei(e pa$ment5 Thus of the insured cedes his

conditional right to indemnification if the cessionar$ who can claim and recei(e

pa$ment should a loss occur to the insured thereafter5

&i* The right which is transferred to the cessionar$ is the right which the cedent had6

thus if the right which has been ceded is the insured conditional right to

indemnification6 the cessionar$ can upon occurrence of a loss6 sue onl$ for the

loss suffered b$ the insured and not for an$ loss the cessionar$ himself ma$ ha(e

suffered5

&j* Further6 the right is transferred subject to all defects and limitations attached to it

in the hands of the cedent including the pa$ment of premiums6 obser(ance of

warranties and the following of proper claims procedure5 "t is important to note

that cession of the insured7s rights does not transfer the insured7s duties as such6

but non / fulfillment ne(er the less pro(ides the insurer with a defence5

&4* )a(ing ceded his right6 the insured remains liable to the insurer5

&l* A (alid cession of a claim under a polic$ can be defeated b$ a subsequent

agreement canceling the cession and amounting to a reGtransfer of the right5

&m*1ession in securit$ for debt5

&n* Right under both indemnit$ and nonGindemnit$ policies are frequentl$ emplo$ed

to secure a debt5

&o* "n some older insurance cases6 the court adopted the (iew that a cession in

securit$ in securit$ for debt is tantamount to the granting of a pledge5 This line of

thought culminated in the case of #ational band of South Africa 8td ( 1ohan7s

Trustee --- AD +@C6 wherein the Appellate Di(ision held that a trustee of an

insol(ent estate was entitled to claim and administer the amount pa$able under a

fire polic$ which had been ceded b$ the insol(ent as securit$ for debt5

&p* Another school of thought a cession in securit$ for debt is a complete cession of

the right subject onl$ to a fiduciar$ pact5 The cedent is completel$ di(ested of his

right but in terms of the pactum adiectum the cessionar$ ma$ retain the right so


38/50

ceded for securit$ purposes5 Moreo(er6 this right must be reGceded to the cedent as

soon as the secured debt has been redeemed5

&q* The reasonable conclusion seems to be that the soGcalled cession in securitatem

debiti can ta4e one of two forms5 "t can be an out and out cession subject to a

fiduciar$ pact or it can be tantamount to the granting of a pledge5

&r* The question whether an ordinar$ cession with no strings attached6 a cession in

securitate$ deiti sensu stricto or a transaction in the nature of a pledge has

occurred depends on the intention of the parties and not on the parties and not on

the outward form of the transaction5

&s* "t has been decided that where a polic$ has been emplo$ed as securit$6 the holder

of the polic$ can cede his right to the balance of the proceeds of the polic$ as

securit$ for $et another debt5

&t* A person who has ta4en a polic$ as securit$ ma$ not deal with the polic$ in

disregard of the insured7s rights6 for e3ample b$ compromising a claim5

+5 S!ST"T!T"O#

&a* oluntar$ substitution of insured

&b* A contract of insurance is a personal contract and in principle does not follow a

transfer of the interest which is the object of the insurance5 The consent of the

insurer must be obtained is a (oluntar$ substitution of the insured is desired6 for

instance upon a sale and transfer of the insured propert$5

&c* A distinction and a cession of the insured7s rights under the polic$5 A (alid

substitution means that another person ta4es the place of the original insured= i5e5

assumes the obligations and rights of the initial insured5

&d* Substitution of the insured requires a no(ation of the polic$5

&e* Substitution of the insured b$ operation of the the law

&f* Ta4es place upon death6 marriage in communit$ of propert$ and sequestration5

@5 "#S!RA#1E FOR T)E E#EF"T OF T)"RD 2ART"ES

"s founded on the basis of the con(entional contracts for the benefit of third parties

commonl$ 4nown as stipulatio alteri5 A contract in fa(our of a third part$ is contract

in terms of which one part$6 the promittens6 agrees with another6 the stipulates6 that he


39/50

will perform something for the benefit of a third part$5 The stipulates does not act in

the name of third part$ but in his own name although for the benefit of the third part$5

"n the case of /aachs 6rustee v /aach 191+ A- (0(6 the Appellate Di(ision

stated that a contract for the benefit of a third part$ is not simpl$ a contract to benefit

a third person6 but a contract between two persons which is designed to enable a third

person to step in as a part$ to a contract with one of those two5 A t$pical ma4ing the

proceeds of the polic$ ma4ing the proceeds of the polic$ pa$able to a third person or

a stipulation in an indemnit$ polic$ e3tending indemnification to persons other than

the polic$ holder5

The courts ha(e held that a third part$ does not acquire an$ right from an agreement

in his fa(our unless he accepts5 !pon acceptance b$ the third part$ a legal tie is

created between the promittens and the third part$5

The third part$ who is to benefit from a polic$ must be described in such a wa$ that

he can be identified5 "t is not necessar$ to name a specific beneficiar$6 a class of

beneficiaries ma$ be designated pro(ided that it is done in clear terms5


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"n Curtis =state v Gron$in5ster 19+( C,- &11 the insured too4 out a heritage

polic$5

'&$B-E +)!$A)CE

Occurs when the same interest is insured b$ or on behalf of the same insured against

the same ris4 with two or more independent insurers5 "nsurance in fa(our of a third

part$ ma$ also result in double insurance5

The concept is important for two reasons

if and double insurance amounts to o(erGinsurance &i5e the total of all insurances is

more than the total (alue of the insured7s interest* an insurer who pa$s more than its

proportionate share of the loss has a right to contribution against each of the other

insurers5

policies often contain / pro(isions that the insured must disclose other insurances

which subsist at the time the polic$ is issued or which are contracted subsequentl$

and that in the e(ent of double insurance the insurer will onl$ be bound to pa$ the

insured its proportionate share of the loss5

REP!"REME#TS

&a* The policies must o(erlap as to the e(ent insured5 "t is necessar$ that the policies

co(er e3actl$ the same ris4s but the$ must ha(e a particular e(ent in common

before the$ amount to double insurance in respect of that ris45

&b* The polic$ must relate to the same interest

The$ policies ma$ each co(er a (ariet$ of interest but all must co(er the interest6

which e(entuall$ suffers

&c* The policies must relate to the same object of ris46 otherwise the insurance cannot

be in respect of the same interest5

&d* The policies must be in force at the same time and the$ must be (alid and

effecti(e5

&g* The e3istence of other insurance policies is usuall$ not a material fact which

requires disclose b$ the insured but then policies frequentl$ require the insured to


41/50

notif$ the insure of such e3istence5 Such clauses usuall$ pro(ide the unless

timorous notice is gi(en6 the polic$ will be forfeited 5The 1ourts ha(e decide that

whole the decide that whole specif$ the time within which the notice must be

gi(en6 the notice must be gi(en within a reasonable time5


42/50

1ontribution is restricted to indemnit$ insurance5

euirements for t6e ri76t of contri3ution

&a* The insurer claiming contribution must ha(e discharged its liabilit$ to the insured5

&b* "t must ha(e paid more than its prorata proportion of the loss

&c* The pa$ment must ha(e been in respect of an interest which is the subject of

double insurance55

The calculation of the proportionate share of each insurer is often simple5


43/50

"n order to discourage under / insurance certain clauses ha(e been de(eloped such as

the condition of a(erage5

C


44/50

CR#6#C#SM 6H= AM=N-M=N6 AC6

&m*


45/50

+* 1onsumer mar4ets and consumer bu$ing beha(ior can be understood before

sound product and mar4eting plans are de(eloped

@* This stud$ will help companies to customi;e the ser(ice and product6

according to the consumer7s need5

.* This stud$ will also help the companies to understand the e3perience and

e3pectations of the e3isting customers5

C* Apart from creating6 manufacturing and distribution capabilities for life

insurance products6 an in depth stud$ of the consumers6 their preferences and

demand for their product is (er$ necessar$ for setting up an efficient

mar4eting networ45

STATEME#T OF T)E 2RO8EM

This Stud$ will help us to understand the consumer7s perception about life

insurance companies5 This stud$ will help the companies to understand6 how a

consumer selects6 organi;es and interprets the Pualit$ of ser(ice and product

offered b$ life insurance companies5


46/50

&3Dective of t6e !tudy

-5 Ascertain the profile and characteristics of potential bu$ers5

+5 To ha(e an insight into the attitudes and beha(iors of customers5

@5 To find out the differences among percei(ed ser(ice and e3pected ser(ice

.5 To produce an e3ecuti(e ser(ice report to upgrade ser(ice characteristics of life

insurance companies5

C5 To access the degree of satisfaction of the consumers with their current brand of

"nsurance products5


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%ypot6esis

%ypot6esis 1

), / There is no Association between age and consumer perception

)- / There is an Association between age and consumer perception

%ypot6esis

), / There is no Association between Pualification and consumer perception

)- / There is an Association between Pualification and consumer perception

%ypot6esis =

), / There is no Association between %ender and consumer perception

)- / There is an Association between %ender and consumer perception

%ypot6esis 4

), / There is no Association between income and consumer perception

)- / There is an Association between income and consumer perception

%ypot6esis :

), / There is no Association between area and bu$ing decision

)- / There is an Association between age and bu$ing decision

%ypot6esis 9

), / There is no Association between mar4et position of the compan$ and bu$ing decision

)- / There is an Association between mar4et position of the compan$ and bu$ing decision

%ypot6esis ?

), / There is no Association between attitude and bu$ing beha(ior decision

)- / There is an Association between attitude and bu$ing beha(ior decision

%ypot6esis ;

), / There is no Association between percei(ed ser(ices and e3pected ser(ices

)- / There is an Association between percei(ed ser(ices and e3pected ser(ices


48/50

%ypot6esis 8

)o> There is no association between customer satisfaction and ser(ices pro(ided b$ the compan$5

)-> There is an association between customer satisfaction and ser(ices pro(ided b$ the compan$5

!C&PE &* "%E !"$'#

This stud$ is limited to the consumers within the limit of )$derabad cit$5

The stud$ will be able to re(eal the preferences6 needs6 perception of the customers

regarding the life insurance products6 "t also help the insurance companies to 4now

whether the e3isting products are reall$ satisf$ing the customers7 needs 5

The following are the limitation of this stud$

The stud$ is conducted in short period6 due to which the stud$ ma$ not be detailed all

aspect5

8ac4 of time on performing the project in detail stud$5

The scrip chosen for anal$sis is from Puestionnaire

The data collected is completel$ restricted to the in(estors of Hen insurance

Period of t6e study

The duration of the project is .Cda$s


49/50

E!EAC% A)' ME"%&'&-&,#F

A5 T$pe of research is descripti(e research b$ sur(e$ method5

5 2rimar$ data is collected from the "n(estors and secondar$ data from compan$ profile6

brochures5

15 Sample Si;e> C, in(estors5 1ollection Method> personal5

D5 Tool> a structural questionnaire was prepared to collect information pertaining to the

stud$5 The questionnaire was administered to the compan$

'A"A !&$CE!F

a2 Primary 'ata>

The data will be collected though holding discussions with the emplo$ees of the compan$

and discussing the questionnaires with e3isting customers of the compan$5 32 !econdary 'ata>

The present stud$ is based on Secondar$ data5 The (arious source of secondar$ data include

• "nternet

• "nformation pro(ided b$ the compan$

• Maga;ines

E!EAC% 'E!+,)>

The research is primaril$ both e3planator$ as well as descripti(e in nature5 A wellGstructured

questionnaire was prepared and personal inter(iews were conducted to collect the customer7s

requirements6 through this questionnaire5

!AMP-+), ME"%&'&-&,#F


50/50

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Sample si;e refers to number of elements to be included in the stud$5

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Documents

Bala ( Astudy on Customer Perception Towards Life Insurance Policies)