anaalysis of life insurance buyers perception towards private life insurance company and policies

“Analysis Of Insurance Buyers’ Perception Towards Private Life Insurance Company And Policies”

1. INTRODUCTION

Insurance means managing risk. Insurance is a legal contract that transfers risk from

a policyholder to an insurance provider Services are activities and/or benefits that one

party offers to the other and that services are necessarily intangible and do not result in

the ownership of anything. Insurance service is unlike other services, as it is multifaceted

and potential reliant service involves extensive legal characteristics. The life insurance

policies are intangible in nature companies have to identify the means to make their

services more tangible. The insurance providers in India perform a wide range of

activities such as service designing, preparing contract and policy, marketing and selling,

underwriting, rating, reinsurance and other services and claim settlement. India's rural

consumers account for about 73 percent of the total consumers. Life insurance decisions

are often complex, more so, in the context of rural masses. The choice of life insurance

product for an Indian rural consumer is surrounded by plenty of problems, even when

confined to only traditional life insurance products. It is difficult to apply any rule-of

thumb. Because the amount of life insurance one individual needs depends on factors

such as his/her wealth, sources income numbers of dependents, debts, and style. he

buying behaviour of the rural Consumers in India o influenced by several factors, such as

socio-economic conditions, cultural environment, literacy level, occupation, geographical

location, extensive efforts on the part of sellers, exposure to the media, etc.

Life is full of risk and uncertainties. Since we are the social human being we have certain

responsibilities too. Indian consumers have big influence of emotions and rationality on

their buying decisions. They believe in future rather than the present and desire to have a

better and secured future in this direction life insurance services have its own value in

terms of minimizing risk and uncertainties. Indian economy is developing and having

huge middle class societal status and salaried persons. Their money value for current

needs and future desires here the pendulum moves to another side which generate the

reasons behind holding a policy. Here the attempt has been made in this research paper to

study the buying behaviour of consumers towards life insurance services.

India is not only a market with a huge potential but also with a complicated

investment environment. Though great improvements have taken place during the past 12

years, the overall market situation cannot yet be considered to be mature and liberalized.

HR Institute of Higher Education, Hassan Page 1


Since the Indian insurance industry can be considered to be in its transforming shoes, it is

interesting to understand the perceptions of insurance buyers towards life insurance

services offered by private insurance companies. Traditionally, Indian insurance buyers

are conservative, and LIC, being a public sector company was able to penetrate the life

insurance market successfully till the deregulation. Now with the advent of private

insurers, it is interesting to know how insurance buyers react to the concept of private life

insurance in India.

In 1956 most of the private insurance companies filed for bankruptcy then the

government of India nationalized the insurance companies under the name of Life

Insurance Corporation of India. LIC ruled the market for almost five decades. Because of

its monopoly position it never tried to provide any innovative policies and one service

was another area of concern.

1990 saw the emergence of liberalization, Liberalization means listing government

controls and allowing competition to play its free role in the economy. with reference to

insurance sector. liberalization means allowing private companies like TATA-AGI, SBI

life, Reliance, ICICI Prudential, ING vysya, Max New yark life , HDFC etc to operate in

this sector.



1.1 PROBLEM STATEMENT

The present study titled “analysis of insurance buyer’s perception towards private life

insurance company and policies” To measure the significant perception of life insurance

buyers towards life insurance services offered by the private insurance companies on the

basis of economic variables, the present study conduct at Hassan for the duration of 3

month from January to February 2016. The study conducted on the basis of primary and

secondary data.



1.2 OBJECTIES

To measure the significant perception of life insurance buyers towards life

insurance services offered by the private insurance companies on the basis of

economic variables,

To develop and standardize a measure to evaluate investment pattern in life

insurance services.

To evaluate the factors underlying consumer perception towards investment in life

insurance policies.

To identify whether private insurance policies are up to customers expectations.

To know the customers opinion whether private insurance policies are better than

public insurance policies.



1.3 METHODOLOGYData collection: the data was collected on primary data. the sample frames were the

individuals who are investing in life insurance policies.

Sample design Sampling technique: Judgement sampling.

Sample size:50

sample unit: In Hassan

1.4 HYPOTHESIS H0: Life insurance buyers differentiate between life insurance services offered by private

life insurance companies

H1: Life insurance buyers do not differentiate between life insurance service offered by

private life insurance companies

1.5 Scope of the studyThe study attempts to explore the dynamics of the life insurance business after the

entry of private life insurance players by analyzing significant perceptions that life

insurance buyers have towards private life insurance in particular variables such as age

gender-occupation income manual status number of dependents qualification location and

so forth were analyzed thoroughly in this study. The present study is in Hassan

geographical area.

1.6 LIMITATION: Lack of information about insurance sector

Study is limited to Hassan district of Karnataka state.

The study based on information given by the respondents.

The research on analysis of life insurance services was carried out based on the

perceptions of the sample respondents.

This study to predict accurately their insurance buying behavior.



2. INDUSTRY PROFILE2.1 Definition of Insurance

An arrangement by which a company or the state undertakes to provide a

guarantee of compensation for specified loss, damage, illness, or death in return for

payment of a specified premium. Late Middle English (originally as ensurance in the

sense ‘ensuring, assurance, a guarantee’): from Old French enseurance, from enseurer

(see ensure). Sense 1 dates from the mid 17th century

2.2Life insurance or life assurance, Especially in the Commonwealth, is a contract between an insurance policy holder

and an insurer or assurer, where the insurer promises to pay a designated beneficiary a

sum of money (the benefit) in exchange for a premium, upon the death of an insured

person (often the policy holder). Depending on the contract, other events such as terminal

illness or critical illness can also trigger payment. The policy holder typically pays a

premium, either regularly or as one lump sum. Other expenses (such as funeral expenses)

can also be included in the benefits.

Life policies are legal contracts and the terms of the contract describe the

limitations of the insured events. Specific exclusions are often written into the contract to

limit the liability of the insurer; common examples are claims relating to suicide, fraud,

war, riot, and civil commotion.

An early form of life insurance dates to Ancient Rome; "burial clubs" covered the

cost of members' funeral expenses and assisted survivors financially. The first company

to offer life insurance in modern times was the Amicable Society for a Perpetual

Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen.

Each member made an annual payment per share on one to three shares with

consideration to age of the members being twelve to fifty-five. At the end of the year a

portion of the "amicable contribution" was divided among the wives and children of

deceased members, in proportion to the amount of shares the heirs owned. The Amicable

Society started with 2000 members.

The first life table was written by Edmund Halley in 1693, but it was only in the

1750s that the necessary mathematical and statistical tools were in place for the

development of modern life insurance. James Dodson, a mathematician and actuary, tried HR Institute of Higher Education, Hassan Page 6


to establish a new company aimed at correctly offsetting the risks of long term life

assurance policies, after being refused admission to the Amicable Life Assurance Society

because of his advanced age. He was unsuccessful in his attempts at procuring a charter

from the government.

His disciple, Edward Rowe Mores, was able to establish the Society for Equitable

Assurances on Lives and Survivorship in 1762. It was the world's first mutual insurer and

it pioneered age based premiums based on mortality rate laying "the framework for

scientific insurance practice and development" and "the basis of modern life assurance

upon which all life assurance schemes were subsequently based".

Mores also gave the name actuary to the chief official - the earliest known

reference to the position as a business concern. The first modern actuary was William

Morgan, who served from 1775 to 1830. In 1776 the Society carried out the first actuarial

valuation of liabilities and subsequently distributed the first reversionary bonus (1781)

and interim bonus (1809) among its members. It also used regular valuations to balance

competing interests. The Society sought to treat its members equitably and the Directors

tried to ensure that policyholders received a fair return on their investments. Premiums

were regulated according to age, and anybody could be admitted regardless of their state

of health and other circumstances.

2.3 Development of Insurance Companies in IndiaFor economic development investments are necessary. Investments are made out

of savings. Life Insurance Company is a major instrument for the mobilization of savings

of people, particularly from the middle and lower group. All good life insurance

companies have huge funds accumulated through the payments of small amounts of

premium of individuals. The economic reform of 1991 played a pivotal role in the

economic development of India. Reaping its benefit the growth of the country reached

around 7.5% in the late 2000s.Insurance is a risk transfer mechanism whereby the

individuals or the business enterprise can shift some of, the uncertainties of life on the

shoulder of other. In peace the insurance provide trade industry which ultimately

contribution towards human progress. Thus, insurance is the most lending force

contribution towards economic, social and technological progress of man.



The Indian insurance market is the 19th largest globally and ranks 5th in Asia,

after Japan, South Korea, china and twain. In 2003, total gross premiums collected

amount to USD 17.3billion representing just under 0.6%of world premiums. Similar to

the pattern observed in other regional market and reflecting the country’s high savings

rate, life insurance business accounted for 78.5% of total gross premiums collected in the

year, against 21.5 for non-life insurance business. Another measure of insurance

development is per capita spending on insurance, i.e. insurance density. By this measure

India is among the lowest spending nations in Asia in respect of purchasing insurance. An

average Indian spent USD16.4 on insurance products comprising USD 12.9 for life

insurance and USD 3.5 for non-life insurance products. One factor that has been slowing

down the improvement of insurance density is India’s relatively high population growth

rate, which has averaged 1.7% over the past ten years.

LIC is one of the largest families in India consisting of over 1 lack employees and

11 lack agents.LIC as a responsible corporate citizen has been fulfilling its social

responsibilities from time to time. In fact most of their investments are geared towards

industrial growth, infrastructure growth and national infrastructure growth and national

development. With a view to channelize their social responsibilities and give a formal

shape to the same they have formed a public Trust named,” LIC Golden Jubilee

Foundation”.

2.4 Indian Life InsuranceLife insurance companies in India have their history dating back to 1818.The first

life insurance Company in India was oriental life insurance company in Kolkata. It was

started by the Europeans to provide insurance cover to the Europeans. The life insurance

companies work in close association with the life insurance agents and brokers. Special

training and education is provided to each insurance agent or broker about of Life

Insurance, how it works, industry info, insurance leads, types of Insurance leads, types of

insurance policies on offer, claims settlements, Life Insurance laws in India, knowledge

about the return of premium procedure of the life insurance company and the tax savings

the insurance policy would provide.



2.5 Milestone’s in the Life Insurance Business in India1912: The Indian life Assurance Companies Act enacted as the first statute to regulate the

life insurance business.

1928: The Indian life Assurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance business.

1938: Earlier legislation consolidated and amended to by the insurance Act with the

objective of protecting the interest of the insuring public.

1956: 245 Indian and foreign insurance and provident societies taken over by the central

government and nationalized LIC formed by an Act.

2.6 Market Share of Indian Insurance IndustryNotwithstanding the rapid growth of the sector over the last decade insurance in

India remains at an early stage of development .At the end of 2003 the Indian insurance

market was the 19th largest in the world only slightly bigger than that of Denmark and

comparable to that of Ireland. The Indian insurance market is the 19th largest globally

and ranks 5th in Asian after Japan ,south, Korea china and Taiwan .In 2003 total gross

premiums collected amount to USD 17.3 billion representing just under 0.6%of world

premiums.

The introduction of private players in the industry has added value to the

industry. The initiative taken by the private players are very competitive and have given

immense competition to the on time monopoly of the market LIC. The new players have

improved the service quality of the insurance. As a result LIC down the years have seen

the declining phase in its career. The market share was distributed among the private

players LIC market share has decreased from 95 %( 2002-03) to 81 %( 2004-05).



The following companies have the rest of the market share of the insurance industry.

Mane of the some Players in the Market Name of the company Nature of holding

Bajaj Allianz Life Insurance Co.( Private)

Aviva Life Insurance (Private)

Birla Sun Life Insurance Co( Private)

HDFC standard Life Insurance (Private)

ICICI Prudential Life Insurance (Private)

ING Vysya Life Insurance (Private)

Sahara life insurance (private)

Shriram (private)

Life Insurance Corporation of India( Public)

Max New York Life Insurance Co (Private )

Met Life Insurance Co (Private)

Kotak Mahindra Life Insurance (Private)

Reliance Insurance (Private)

SBI Life Insurance Co( Private)

TATA –AIG Life Insurance Co.( Private )

There are total of 13 Life Insurance companies operating in India, of which one is a

public sector undertaking and the balance 12 are private sector Enterprises.

India with about 200 million classes household shows a huge untapped potential

for players in the insurance industry. Saturation of markets in many developed economies

has made the Indian market even more attractive for global insurance majors. The

insurance sector in India has come to a position of very high potential and

competitiveness in the market. Consumers remain the most important centre of the

insurance sector. This is an evolutionary change in the technology that has revolutionized

the entire insurance sector. The insurance companies today must meet the need of the

hour for more and more personalized approach for handling the customer.



2.7 Current scenario: The Indian Government opened up this sector for the private players in 1999, and

also allowed for foreign Direct Investment up to 26% after which it began to thrive and

Boom.

Currently a $ 41 billion industry, India is the world’s 5th largest Life Insurance

market and growing at rapid space of 32- 34% annually as per Life Insurance Council

Studies.

2.8 Future Trends: The prospects of this industry look promising by way of growth as for as one can

judge from the present statistics and the general environment prevailing in the economy.

In terms of new product and sources Health insurance and Banc assurance are very likely

to dominate the insurance scene in the coming few years. Also, IT is expected to play a

big in the growth of this sector in the coming year. The growth of sector in the coming

year

2.9 Insurance Regulatory Development Authority (IRDA) Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing regulations and registering the

private sector insurance companies since being set up as an independent statutory body

the IRDA has put in a framework of globally compatible regulations. The other decision

taken simultaneously to provide the supporting systems to the insurance sector and in

particular the life insurance companies was the launch of the IRDA online service for

issue and renewal of licenses to agents. The approval of institutions for imparting training

to agents has also ensured that the insurance companies would have a trained workforce

of insurance agents in place to sell their products.



2.10 Insurance Today

When people buy insurance today, they are still sharing their risk. Modern insurance

companies study statistics that show the frequency of past losses-for example, losses from

shop fires to try to predict what losses their clients will experience in the future. The

insurance company uses the funds paid by many clients to compensate the clients who

suffer losses

2.11 Fundamental Principles of Insurance

Terminologies used in Insurance.

A) IndemnityA contract of insurance contained in a fire, marine, burglary or any other policy

excepting life assurance and personal accident and sickness insurance) is a contract of

indemnity. This means that the insured, in case of loss against which the policy has been

issued, shall be paid the actual amount of loss not exceeding the amount of the policy, i.e.

he shall be fully indemnified. The object of every contract of insurance is to place the

insured in the same financial position, as nearly as possible, after the loss, as if his loss

had not taken place at all. It would be against public policy to allow an insured to make a

profit out of his loss or damage

B) Utmost Good Faith Since insurance shifts risk from one party to another, it is essential that there must be

utmost good faith and mutual considence between the insured and the insurer. In a

contract of insurance the insured knows more about the subject matter of the contract than

the insurer. Consequently, he is duty bound to disclose accurately all material facts and

nothing should be withheld or concealed. Any fact is material, which goes to the root of

the contract of insurance and has a bearing on the risk involved. It is only when the

insurer knows the whole truth that he is in a position to judge (a) Whether he should

accept the risk and (b) What premium he should charge If that were so the insured might

be tempted to bring about the event insured against in order to get money.



C) Insurable Interest A contract of insurance affected without insurable interest is void it means that the

insured must have an actual pecuniary interest and not a mere anxiety or sentimental

interest in the subject matter of the insurance. The insured must be so situated with regard

to the thing insured that he would have benefit by its existence and loss from its

destruction. The owner of a ship run a risk of losing his ship, the charterer of the ship runs

a risk of losing his freight and the owner of the cargo incurs the risk of losing his goods

and profit so, all these persons have something at stake and all of then have insurable

interest. It is the existence or insurable interest in a contract of insurance, which

distinguishes it from a mere watering agreement

D) CausaProximaThe rule of causaproxima means that the cause of the amo proximate or immediate

and not remote in the proximate cause of the loss is a peril insured against the insured can

recover when a loss has been brought about by two or more causes, the question arises as

to which s the causaproxima, although the result could not have happened without the

remote cause but is the loss is brought about by any cause attributable to the misconduct

of the insured, the insurer is not liable.

E) RiskIn a contract of insurance the insurer undertakes to protect the insured from a

specified loss and the insurer receive a premium for running the risk of such loss. Thus,

risk must attach to a policy.

F) Mitigation of Loss In the event of some mishap to the insured property, the insured must take all

necessary steps to mitigate or minimize the loss, just as any prudent person would do in

those circumstances. If he does not do so, the insurer can avoid the payment of loss

attributable to his negligence. But it must be remembered that though the insured is bound

to do his best for his insurer, he is not bound to do so at the risk of his life.



G) SubrogationThe doctrine of subrogation is a corollary to the principle of indemnity and applies

only to sire and marine insurance. According to it, when an insured has received full

indemnity in respect of his loss, all rights and remedics which he has againstThird person

win pass on to the insurer and will be exercised for his benefit until he (the insurer)

recoups the amount he has paid under the policy. It must be clarified here that the

Insurer's right of subrogation arises only when he has paid for the loss for which he is

liable under the policy and this right extends only to the rights and remedies available to

the insured in respect of the thing to which the contract of insurance relates.

H) Contribution Where there are two or no- insurance on one risk, the principle of contribution comes

into play. The aim of contribution is to distribute the actual amount of loss among the

different insurers who are liable for the same risk under different policies in respect of the

same subject matter. Any one insurer may pay to the insured the full amount of the loss

covered by the policy and then become entitled to contribution from his co-insurers in

proportion to the amount which each has undertaken to pay in case of loss of the same

subject-matter.

In other words, the right of contribution arises when

There are different policies, which relate to the same subject matter.

The policies cover the same per which caused the loss and

All the policies are in force at the time of the loss, and

One of the insurers has paid to the insured more than his share of the loss.

Life Insurance Policy is a form of security for the person who insures his life and

his family life insurance policies have helped trade and other economic activities to

flourish in a great manner. It has generated loss of job opportunities. It is looked upon as

a lucrative career option. Life insurance companies have also entered the international

business scenario.



2.12 Market trendsLife insurance premiums written in 2005According to a study by Swiss Re, the

EU was largest market for life insurance strange originated Life insurance or stol is a life

insurance policy that is held or financed by a person who has no relationship in the

insured person. Generally, the purpose of life insurance is to provide peace of mind by

assuring that financial loss or hardship will be lessened or climinated in the event of the

insured person's death. STOL has often been used as an investment technique whereby

investors will encourage someone (usually an olderly person) to purchase life insurance

and name the investors as the beneficiary of the policy. This undermines the primary

purpose of life insurance as the investors have no financial loss that would occur if the

insured person were to die. In some jurisdictions, there are laws to discourage or prevent

STOLL premiums written in 2005 followed by the USA and Japan. Although some

aspects of the application process (such as underwriting and insurable interest provisions)

make it difficult, life insurance policies have been used in cases of exploitation and fraud.

In the case of life insurance, there is a motivation to purchase a life insurance policy,

particularly if the face value is substantial, and then kill the insured. Usually, the larger

the claim, and/or the more serious the incident, the larger and more intense win be the

number of investigative lawyers, consisting in police and insurer investigation. Eventually

also loss adjusters hired by the insurers to work independently recently, vertical

settlements have created problems for use insurance carriers. A vertical settlement

involves the purchase of a life insurance policy from anclictly or seminally ill policy

holder. The policy holder sells the policy (including the right to name the beneficiary) to a

purchaser for a price discounted from the policy value. The seller has cash in hand, and

the purchaser will realize a profit when the seller dies and the proceeds are delivered to

the purchaser. In the meantime, the purchaser continues to pay the premiums. Although

both parties have reached an agreeable settlement, insurers are troubled by this trend.

Insurers calculate their rates with the assumption that a certain portion of policy holders

will seek to redeem the cash value of their insurance policies before death. They also

expect that a certain portion will stop paying premiums and forfeit their policies.

However, vertical settlements ensure that such policies will with absolute certainly be

paid out. Some purchasers, in order to take advantage of the potentially large profits, have

even actively sought to collude with uninsured elderly and terminally ill patients, and



created policies that would have not otherwise been purchased. Likewise, these policies

are guaranteed losses from the insurers' perspective

2.13 Life insurance premiums written in 2005The sale of life insurance in the U.S. began in the 1760s. The Presbyterian Synods

in Philadelphia and New York City created the Corporation for Relief of Poor and

Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests

organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life

insurance companies were started, but fewer than half a dozen survived. In the 1870s,

military officers banded together to found both the Army (AAFMAA) and the Navy

Mutual Aid Association (Navy Mutual), inspired by the plight of widows and orphans left

stranded in the West after the Battle of the Little Big Horn, and of the families of U.S.

sailors who died at sea.

2.14Type of insurance

Term insuranceTerm assurance provides life insurance coverage for a specified term. The policy

does not accumulate cash value. Term insurance is significantly less expensive than an

equivalent permanent policy but will become higher with age. Policy holders can save to

provide for increased term premiums or decrease insurance needs (by paying off debts or

saving to provide for survivor needs).

Mortgage life insuranceMortgage life insurance insures a loan secured by real property and usually

features a level premium amount for a declining policy face value because what is insured

is the principal and interest outstanding on a mortgage that is constantly being reduced by

mortgage payments. The face amount of the policy is always the amount of the principal

and interest outstanding that are paid should the applicant die before the final instalment

is paid.



Group life insuranceGroup life insurance (also known as wholesale life insurance or institutional life

insurance) is term insurance covering a group of people, usually employees of a

company, members of a union or association, or members of a pension or superannuation

fund. Individual proof of insurability is not normally a consideration in its underwriting.

Rather, the underwriter considers the size, turnover, and financial strength of the group.

Contract provisions will attempt to exclude the possibility of adverse selection. Group life

insurance often allows members exiting the group to maintain their coverage by buying

individual coverage. The underwriting is carried out for the whole group instead of

individuals.

Permanent life insurancePermanent life insurance is life insurance that covers the remaining lifetime of the

insured. A permanent insurance policy accumulates a cash value up to its date of

maturation. The owner can access the money in the cash value by withdrawing money,

borrowing the cash value, or surrendering the policy and receiving the surrender value.

The three basic types of permanent insurance are whole life, universal life, and

endowment.

Whole lifeWhole life insurance provides lifetime coverage for a set premium.

Universal life coverageUniversal life insurance (UL) is a relatively new insurance product, intended to

combine permanent insurance coverage with greater flexibility in premium payments,

along with the potential for greater growth of cash values. There are several types of

universal life insurance policies, including interest- sensitive (also known as "traditional

fixed universal life insurance"), variable universal life (VUL), guaranteed death benefit,

and equity-indexed universal life insurance.

Universal life insurance policies have cash values. Paid-in premiums increase

their cash values; administrative and other costs reduce their cash values.

Universal life insurance addresses the perceived disadvantages of whole life –

namely that premiums and death benefits are fixed. With universal life, both the HR Institute of Higher Education, Hassan Page 17


premiums and death benefit are flexible. With the exception of guaranteed-death-benefit

universal life policies, universal life policies trade their greater flexibility off for fewer

guarantees.

"Flexible death benefit" means the policy owner can choose to decrease the death

benefit. The death benefit can also be increased by the policy owner, usually requiring

new underwriting. Another feature of flexible death benefit is the ability to choose option

A or option B death benefits and to change those options over the course of the life of the

insured. Option A is often referred to as a "level death benefit"; death benefits remain

level for the life of the insured, and premiums are lower than policies with Option B death

benefits, which pay the policy's cash value—i.e., a face amount plus earnings/interest. If

the cash value grows over time, the death benefits do too. If the cash value declines, the

death benefit also declines. Option B policies normally feature higher premiums than

option A policies.

Endowment policyEndowments are policies which will pay a lump sum at either the death of the

insured or after a set term, called the policy's maturity. Endowments require higher

premiums than whole life and universal life policies because of the additional lump sum

benefit at the maturity of the policy. Endowments are not technically permanent insurance

because they do not cover the insured's lifetime; however they are commonly included in

this class because of their high premiums.

The US Technical Corrections Act of 1988 tightened the rules on tax shelters such

as modified endowments. These follow the same tax rules as annuities and IRAs.

Endowments mature and are paid out after a prespecified period (e.g. 15 years) or at a

prespecified age (e.g., 65), whether the insured is alive or has already died.

Money back policyA money back policy is a variant of the endowment plan. It gives periodic

payments over the policy term. To that end, a portion of the sum assured is paid out at

regular intervals. If the policy holder survives the term, he gets the balance sum assured.

In case of death over the policy term, the beneficiary gets the full sum assured.[18]



Accidental deathAccidental death insurance is a type of limited life insurance that is designed to

cover the insured should they die as the result of an accident. "Accidents" run the gamut

from abrasions to catastrophes but normally do not include deaths resulting from non-

accident-related health problems or suicide. Because they only cover accidents, these

policies are much less expensive than other life insurance policies.

Such insurance can also be accidental death and dismemberment insurance or

AD&D. In an AD&D policy, benefits are available not only for accidental death but also

for the loss of limbs or body functions such as sight and hearing.

Accidental death and AD&D policies very rarely pay a benefit, either because the

cause of death is not covered by the policy or because death occurs well after the

accident, by which time the premiums have gone unpaid. To know what coverage they

have, insured’s should always review their policies. Risky activities such as parachuting,

flying, professional sports, or military service are often omitted from coverage.

Accidental death insurance can also supplement standard life insurance as a rider. If a

rider is purchased, the policy generally pays double the face amount if the insured dies

from an accident. This was once called double indemnity insurance. In some cases, triple

indemnity coverage may be available.

Senior and pre-need productsInsurance companies have in recent years developed products for niche markets,

most notably targeting seniors in an aging population. These are often low to moderate

face value whole life insurance policies, allowing senior citizens to purchase affordable

insurance later in life. This may also be marketed as final expense insurance and usually

have death benefits between $2,000 and $40,000. One reason for their popularity is that

they only require answers to simple "yes" or "no" questions, while most policies require a

medical exam to qualify. As with other policy types, the range of premiums can vary

widely and should be scrutinized prior to purchase, as should the reliability of the

companies.

Health questions can vary substantially between exam and no-exam policies. It

may be possible for individuals with certain conditions to qualify for one type of coverage

and not another. Because seniors sometimes are not fully aware of the policy provisions it



is important to make sure that policies last for a lifetime and those premiums do not

increase every 5 years as is common in some circumstances.

Pre-need life insurance

Policies are limited premium payment, whole life policies that are usually

purchased by older applicants, though they are available to everyone. This type of

insurance is designed to cover specific funeral expenses that the applicant has designated

in a contract with a funeral home. The policy's death benefit is initially based on the

funeral cost at the time of prearrangement, and it then typically grows as interest is

credited. In exchange for the policy owner's designation, the funeral home typically

guarantees that the proceeds will cover the cost of the funeral, no matter when death

occurs. Excess proceeds may go either to the insured's estate, a designated beneficiary, or

the funeral home as set forth in the contract. Purchasers of these policies usually make a

single premium payment at the time of prearrangement, but some companies also allow

premiums to be paid over as much as ten years.

It's one year completion for Modi government and guesses what? Inspired by the political

watchers, critics have started filing the report card of success and failures of the

government that has been in the centre for a year.

The government has launched a few social security schemes, which are of enormous

significance for the masses. At a cost of a nominal premium, these schemes ensure

comfortable future for many.

Atal Pension Yojana Pension between Rs 1,000 and Rs 5,000 a month. For a monthly pension of Rs

1,000, a 40-year-old subscriber will have to invest Rs 291 per month for 20 years, while

an 18-year-old will have to contribute Rs 42 per month for 40 years. All individuals

between 18 and 40, who will have to contribute till they turn 60, This is an investment

you need to make on behalf of your domestic staff who may not have anyone to look after

them once they stop working.



Pradhan Mantri Suraksha Bima YojanaAccidental death and disability cover of Rs 2 lack. Premium is Rs 12 per year.

Anybody who has a savings account in the banks that offer this scheme. Although it is for

everybody, this scheme especially suits drivers, security guards, newspaper vendors,

vegetable vendors and others who are exposed to the risk of accidental death or disability.

Pradhan Mantri Jeevan Jyoti Bima Yojana A pure protection term insurance cover which pays Rs 2 lakh to dependents in the

event of the policyholder's death. Premium is Rs 330 a year. Anybody in the age band of

18-70 years who has a savings account in a bank that offers this scheme. This is a must

for any member of your staff who is the sole breadwinner in his or her family.

Pradhan Mantri Jan Dhan Yojana A savings account with no minimum balance. The Repay ATM-cum-debit card

comes with in-built accident and life covers of Rs 1 lack and Rs 30,000 respectively.

Anyone belongs to the economically weaker sections of society. As all future welfare and

subsidy schemes are likely to be linked to it, it is a must for your staff. All those working

in the unorganised sector. You can transfer salaries directly into the accounts of your

domestic staff to inculcate a banking habit in them.

Health insurance Cover for expenses incurred during hospitalisation due to illness or surgery?

Rs 700-800 a year for a cover of Rs 50,000 for indivuduals aged between 18 and 40

years. Eligible for All. Hospitalisation can wipe out the entire savings of those already at

a financial disadvantage. Though not offered by the government, affordable policies are

available from state-owned non-life insurers like New India Assurance and Oriental

Insurance. The ET has further calculated how much these might cost.

2.15 HOW IT STACKS UPPradhan Mantri Jan Dhan Yojan = NIL.



Pradhan Mantri Jeevan Jyoti Bima Yojana = Rs 330 Pradhan Mantri Suraksha Bima

Yojana = Rs 12.

Atal Pension Yojana = Rs 3,492.

Health Insurance = Rs 800.

All this adds up to = Rs 6,834 (The total amount you need to spend on

staff welfare measures in a year)Assuming your employee is 40 years old and monthly pension chosen is Rs 1,000 in case

of APY. If minimum requirement is invested

2.16 Life insurance companies and its nature.

Company Promoter Year of Nature of



establishment company

ICICI

Prudential

ICICI Bank 2000 Joint venture

HDFC Standard HDFC 2000 Joint venture

SBI Life SBI 2001 Joint venture

Kotak Mahindra, Kotak Mahindra

Bank

2001 Joint venture

Bajaj Allianz Bajaj Allianz 2001 Joint venture

ING Vysya Vysya Bank 2001 Incorporated as

joint venture, but

completely owned

by Exide industry

ltd

Met life Punjab national

Bank

2001 Joint venture

Tata AIG Tata group 2001 Joint venture

Birla Sun Life Aditya Birla

Group

2000 Joint venture

Aviva life Dabur 2002 Joint venture

2.17 Brief information about life insurance companies

ING VYSYA LIFE INSURANCEING Vysya Life Insurance Company Private Limited entered the private life

insurance industry in India in September 2001, and in a span of 5 years has established



itself as distinctive life insurance brand with an innovative, attractive and customer

friendly product portfolio and a professional advisor sales force.

It has a dedicated and committed advisor sales force of over 21,000 people,

working from 140 branches located in 74 major cities across the country and over

3,000employees. It also distributes products in close cooperation with the ING Vysya

Bank network. The Company has a customer base of over 4,50,000& is headquartered at

Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and

also has a share capital of Rs. 440 crore.

ING Vysya Life Insurance Company is headquartered at Bangalore and has

established a strong presence in the cities of Delhi, Mumbai, Kolkata, Hyderabad and

Chennai. In addition ING Vysya Life operates in Vizag, Vijayawada, Mangalore, Mysore,

Pune, Nagpur, Chandigarh, Ludhiana and Jaipur.

ING Vysya Life has pioneered product innovations in the Indian life insurance

market with customer-oriented cash bonus endowment and money back products.

(Reassuring Life and Maximizing Life), the first anticipated whole life product (Fulfilling

Life) and the first Term/Critical Illness combination product (Conquering Life).

Conquering Life is an innovative term and critical illness product that has been launched

recently.

Conquering Life provides affordable term cover and critical illness coverage for

10critical illnesses of up to 50% of the Sum Assured.

ING Vysya Life Insurance is a joint venture between ING Insurance International

BV apart of ING Group, the world's largest life insurance company. ING Vysya Bank,

with1.5 million customers and over 400 outlets and GMR Technologies and Industries

Limited, part of GMR Group also based in Bangalore and involved in the field of power

generation, infrastructural development and several other businesses.ING Vysya Life has

a paid up capital of Rs.140 crores and an authorized capital of Rs.200 crores.

Life insurance products offered by the company are:

1) Protection plan



Critical illness plan

`Endowment plan

2) Savings plan Endowment plan

Child protection plan

Money back plan

3) Investment Plan Whole life plan

Limited payment endowment plan

Anticipated whole life plan

4) Retirement Plan Best years

New Future Perfect

Tata-AIG Life InsuranceTata-AIG Life Insurance company is a joint venture between the Tata Group and

American International Group Inc (AIG), the leading US-based international insurance

and financial services organization and the largest underwriter of commercial and

industrial insurance in America.

Its member companies write a wide range of commercial, personal and life

insurance products through a variety of distribution channels in approximately 130

countries and jurisdictions throughout the world. AIG’s global businesses also include

financial services and asset management, including aircraft leasing, financial products,

trading and market making, consumer finance, institutional, retail and direct investment

fund asset management, real estate investment management, and retirement savings

products.

Areas of business



Tata-AIG Life Insurance products include a broad array of life insurance coverage

to both individuals and groups. For groups, the company has life products whereas for

individuals, it has term products, endowment products as well as money-back products.

For groups and individuals, various types of add-ons and options are available to

given consumer’s flexibility and choice.

HDFC STANDARD LIFEThe Partnership:

HDFC and Standard Life first came together for a possible joint venture, to enter

the Life Insurance market, in January 1995. It was clear from the outset that both

companies shared similar values and beliefs and a strong relationship quickly formed. In

October1995 the companies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC, further

strengthening the relationship.

The next three years were filled with uncertainty, due to changes in government

and ongoing delays in getting the IRDA (Insurance Regulatory and Development

authority) Act passed in parliament. Despite this both companies remained firmly

committed to the venture.

In October 1998, the joint venture agreement was renewed and additional resource

made available. Around this time Standard Life purchased 2% of Infrastructure

Development

Finance Company Ltd. (IDFC). Standard Life also started to use the services of

the HDFC Treasury department to advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and

both companies agreed the time was right to move the operation to the next level.

Therefore, in January 2000 an expert team from the UK joined a handpicked team from

HDFC to form the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5%

stake in HDFC Bank.

In a further development Standard Life agreed to participate in the Asset

Management Company promoted by HDFC to enter the mutual fund market. The Mutual

Fund was launched on 20th July 2000



Incorporation of HDFC Standard Life Insurance Company Limited:The company was incorporated on 14th August 2000 under the name of HDFC

Standard Life Insurance Company Limited.

Company’s ambition from as far back as October 1995, was to be the first private

company to re-enter the life insurance market in India. On the 23rd of October 2000, this

ambition was realized when HDFC Standard Life was the only life company to begranted

a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while

Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC

Group, this is the maximum investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared values and

trust. The ambition of HDFC Standard Life is to mirror the success of the parent

companies and be the yardstick by which all other insurance company's in India are

measured.

HDFC Standard Life's cumulative premium income, including the first year

premiums and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-Nov

2005. So far the company has covered over 11,00,000 individuals and has declared 5th

consecutive bonus in as many years for its 'with profit' policyholders.

Products offered by the company are:INDIVIDUAL PLAN

With Profit Endowment Assurance

With Profits Money Back

Single Premium Whole of Life

Term assurance Plan

Loan Cover Term Assurance

Personal Pension Plan

Children’s Plan

GROUP PLANS

Group Term Insurance



Development Insurance Plan

ICICI PRUDENTIAL LIFE INSURANCE COMPANYICICI Prudential Life Insurance Company is a joint venture between ICICI,

apremier financial powerhouse and prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was amongst the

first private sector insurance companies to begin operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential is currently the No. 1 private life insurer in the country. For the

financial year ended March 31, 2005, the company garnered Rs 1584 crore of new

business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000

policies

Products offered by ICICI Prudential are1) Savings Plan

Smart kid

Life Time

Save ‘n’ Protect

Cash Back

2) Protection plan

Life Guard

Extra Protection Through

Riders

3) Retirement Plans

Forever Life

Life link pension

Life time pension

Reassure

4) Investment Plans

Assure Invest

Life LinkHR Institute of Higher Education, Hassan Page 28


5) Group plans

Group Superannuation

Group Gratuity

Group Term Assurance

OM KOTAK MAHINDRA Life Insurance CompanyOM Kotak Mahindra Life Insurance Company Limited (OMKM), is a joint

venture between Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. At OMKM,

The aim is to help customers take important financial decisions at every stage in life by

offering them a wide range of innovative life insurance products, to make them

financially independent. JeeneKiAzaadi...

The Products offered by the Company are

Individual Plan Kotak Endowment Plan

Kotak Term Plan

Kotak Retirement Income Plan

Kotak Child Advantage Plan

Kotak Preferred Term Plan

Kotak Capital Multiplier Plan

Kotak Safe Investment Plan

Riders

Exclusions Under Riders

Group Plan Kotak Term Grouplan

Kotak Gratuity Grouplan

Kotak Credit Term Grouplan

Riders

Exclusions Under Riders

Rural Kotak Gramina Bimayojana



MET LIFE INSURANCE COMPANY

For almost 135 years, Metropolitan Life Insurance Company has been insuring the

lives of the people who depend on them. Their success is based on their long history of

social responsibility, strong leadership, sound investments, and innovative products and

services.

MetLife BeginsThe origins of Metropolitan Life Insurance Company (MetLife) go back to 1863,

when group of New York City businessmen raised $100,000 to found the National Union

Life.

Supporting Country and CommunityOver the years, MetLife has made a difference by supporting urban renewal

projects and community financing. The company's social commitment and its

commitment to the security of its policyholders have proven to be good business.

MetLife TodayIt is the fastest growing private life insurance company in India

Currently have over 200,000 satisfied customers

One of India’s leading private life insurance company.

Total branches of India are, Andhra Pradesh, Delhi, Gujarat, Jammu & Kashmir,

Karnataka, Kerala, Maharashtra, Orissa, Punjab, Rajasthan, Tamilnadu and West Bengal.

Products Offered by the company are

1) Whole Life Met 100 Non par

Met 100 Gold par

Met 100 Platinum par

2) Endowment Met Gold par

Met Platinum par

Met Junior par

Met junior Non par

3) Money Back



Met Sukh

Met Junior MB

4) Term

Met Mortagage Protector

Met Riders

Accidental death

BIRLA SUN LIFE Insurance CompanyBirla Sun Life Financial Services offers a range of financial services for resident

Indian sand Non Resident Indians. Brought together by two large, powerful and reputed

business houses, the Aditya Birla Group and Sun Life Financial, it is our aim to offer

diverse and top quality financial services to customers. The Mutual Fund and Insurance

companies provide wealth management and protection products to customers while the

Distribution and Securities companies provide brokerage and trading services for

investment inequities, debt securities, fixed deposits, etc.

Insurance is not about something going wrong. It's often about things going right.

One of the wonders of human nature is that we never believe anything can actually go

wrong.

Surely, life has its share of ifs. At Birla Sun Life however, they believe it has its

equally pleasant share of buts as well. Birla Sun Life stand committed to help you realize

those happy moments which make a life. Be it living the same lifestyle in your post

retirement days or providing a secure future for your loved ones, in case something

happens to you.

The life insurance products offered by the company are

Individual life Premium Back Term Plan



Flexi SecureLife Retirement Plan

Single Premium Bond

Birla Sun Life Term Plan

Flexi Life Line Whole Life Plan

Flexi Cash Flow Money back Plan

Group Life

Pro Group Term Insurance

Group Superannuation Plan

Group Gratuity Plan

MAX NEW YORK LIFE INSURANCE

Max New York Life Insurance Company Limited is a joint venture between Max

India Limited, a multi-business corporate, and New York Life International, a global

expert in life insurance. Max New York Life today emerged as the country's leading

private life insurance company. New York Life is a Fortune 100 company that has over

160 years of experience in the life insurance business. Max India Limited is a multi-

business corporate dealing in Clinical Research, IT and Telecom Services, and Specialty

Plastic Products businesses. Max New York Life Insurance started its operations in India

in 2000. It is the first life insurance company in India to be awarded the IS0 9001:2000

certifications. Max New York offers customized products tailored to suit individual's

needs. With its various Products and Riders, there are more than 400 product

combinations to choose from.

Today, Max New York Life Insurance has a network of 57 offices

spread over 37 cities all over India.



The products are – Whole Life Participating d Convertible

Whole Life-Non-Participating,

Children Endowment at age 18,

Children Endowment at age 24,

20-year Endowment Participating Policy,

Endowment to age 60

2.18. Research literature Review Kotler, (1973)1 considers insurance to be in the category of "unsought goods,"

along with products such as preventive dental services and burial plots. He notes that

unsought goods pose special challenges to the marketer.HR Institute of Higher Education, Hassan Page 33


Slovic.Fischhoff, Lichtenstein, Corrigan, and Combs (1977)2 found that

subjects were more likely to buy insurance against small, high-probability losses than

insurance against large, lowprobability losses, Hershey and Schoemaker (1980) reported

the opposite result.

Mehr and Cammack (1976)3 agrees that Insurance is usually thought of as a of

product that spreads the risk of serious, but low-probability, losses among a s group of

individuals, thus providing some financial protection to each individual.

Kunreuther, (1979)4 said that his product makes good sense, particularly when

the protection is purchased against potential losses so large as to be catastrophic, such as

total destruction of one's home, a large accident liability judgment, or death of primary

family breadwinner. However, it has long been recognized that this sensible product is

difficult to sell.

Kunreuther (1979)5 “It is not the magnitude of a potential loss that inspires

people to buy insurance voluntarily - it is the frequency with which a loss is likely to

occur”

Kahneman&Tversky (1979)6 reported a risk-averse individual therefore should

avoid nearly all types of risk. Empirical evidence, however, suggests most people basis

are risk averse for gains and risk seeking for losses.

Roger. A. Formisano (1981)7 examined, via consumer interviews, the impact of

the National Association of Insurance Commissioner's Model Life Insurance Solicitation

Regulation as implemented in New Jersey. A substantial portion of the insurance buyers

sampled did not become aware of the provisions of the regulation aimed to improve their

buying ability. Further, many life insurance buyers were not well informed concerning the

nature and operation of life insurance contracts, and in particular, the life insurance

policies that they had purchased.

Michael L. Smith (1982)8 said that a typical life insurance contract provides a

package of options or rights to the policy owner that is not precisely duplicated by any

other combination of commonly oc available contracts viewed from this perspective, life

insurance enjoy unique position in the field of investments and should be judged in this

light. The paper shows that an options viewpoint provides a more complete explanation of

policy owner behavior towards life insurance than the conventional savings-and-

protection view.



Kahneman&Tversky, (1984)9 stated indeed, repeated demonstrations have shown

most people lack an adequate understanding of probability and risk concepts Dhar, (1997)

Greenleaf and Lehmann (1995) Tversky and Shafir. (1992) have shown that offering

more options can generate decision conflict and preference uncertainty, leading to

decision deferral.

Michael L. Walden (1985)10 told that the option's package view of the whole life

insurance policy suggests that a whole life policy is a package of options, each of which

has value and is expected to influence the price of the policy. This viewpoint implies the

general hypothesis that price differences between whole life policies can be explained by

differences in policy contract and provisions and differences in selected company

characteristics. The option's package theory was empirically investigated using regression

analysis on data from a sample of policies marketed in North Carolina The results suggest

support for the options package theory.

Christiansen (1988)11 focused on the consumer perception of products, services, and

companies of the U.S. life insurance industry. The author found that life insurance

companies shared a common theme of negative consumer perceptions, but found a

positive change in the consumer’s view of life insurance policies for funding college

education for their children, and concluded that the role of insurance agents in affecting

consumer perception was highly significant.

Evan Mills, Ph.D. (1999)12 Studied the insurance industry is rarely thought of as

having much concern about energy issues. However, the historical involvement by

insurers and allied industries in the development and deployment of familiar technologies

such as automobile air bags, fire prevention/suppression systems, and anti-theft devices,

shows that this industry has a long history of utilizing technology to improve safety and

otherwise reduce the likelihood of losses for which they would otherwise have to pay. We

have identified nearly 80 examples of energy-efficient and renewable energy technologies

that offer “loss-prevention” benefits, and have mapped these opportunities onto the

appropriate segments of the very diverse insurance sector (life, health, property, liability,

business interruption, etc.).

Kircher and Angela-Christian Hubert (1999)13 found that the present study

aims at describing spouses relative dominance in decisions concerming different forms of

investment. As determinants of spouses dominance.partnership characteristics, such as



partnership role artitudes, marital , and individual expertise in relation to different

investment were considered. A questionnaires on spouses dominance in making decisions

on various investments on the characteristics of particular investments and on partnership

characteristics was completed by 142 Austrian couple, Basically, wae appeared to adopt

to the dominance exerted by their husband, in saving and investment decisiond were

dominance was highest in egalitarian partnership, where autonomic and wife dominaed

decisions were reported more frequently than in traditional partnership. Additionally

spouses relative expertise in relation to the investments in question showed strong effects

on dominance distribution. spouses with highet expertise than their experties more

dominaince in decision-making processes.

Ramade and Ahuja (1999)14 presented an overview of life insurance operations

in India, and identified the emergingstrategic issues inlight of liberalization and the

impending private sector entry into insurance. The need for private sector entry was

justified on the basis of enhancing the efficiency of operations, achieving a greater

density and penetration of life insurance in the country. In the wake of such coming

competition, the government monopoly of LIC is a strong incumbent, and is in a position

to take advantage of its wide reach and more than 40 years of experience.

Beck and webb(2003)15 found that economic indicators such as inflation, income

per capita, bank sector development, and religious and institutional indicators are

robutsperdictors of the use of life insurance they opined that education, life expectancy,

the young dependency ratio and the size of the social security sysemt appear to have no

robust assocation with life insurance consumption. Their results highlight the importance

of price stability and banking sector development in fully realizing the savings and

investment functions of life insurance of an economy.

Srivastava,Shrivastava and Agrawal (2004)16 conducted a study covering 1000

individuals in the city of Bhillai. and concluded that the leadership lies not in getting the

maximum policies sold, but in understanding the demography of the customers and

targeting them in their way.

Amy Wong, (2004)17 empirically examined the role of emotional satisfaction in

service encounters. Specifically, this study seeks to: investigate the relationship between



emotional satisfaction and key concepts, such as service quality, customer loyalty, and

relationship quality, and clarify the role of emotional satisfaction in predicting customer

loyalty and relationship quality. In doing so this study used the relationship between

emotional satisfaction, service quality. customer loyalty, and relationship quality as a

context, as well as data from a sample survey of l,261 Australian retail customers

concerning their evaluation of their shopping experiences to address this issue. The

results show that service quality is positively associated with emotional satisfaction.

which is positively associated with both customer loyalty and relationship quality. Further

investigations showed that customers feelings of enjoyment serve as the best predictor of

customer loyalty, while feelings of happiness serve as the best predictor of relationship

quality. The findings imply the need for a service firm to strategically leverage on the key

antecedents of customer loyalty and relationship quality in its pursuit of customer

retention and long-term profitability.

Stephen Diacon (2004)18 presents the results of a detailed comparison of the

perceptions by individual consumers and expert financial advisers of the investment risk

involved in various UK personal financial services' products. Factor similarity tests show

that there are significant differences between expert and lay investors in the way financial

risks are perceived. Financial experts are likely to be less loss averse than lay investors,

but are prone to affiliation bias (trusting providers and salesmen more than lay investors

do), believe that the products are less complex, and are less cynical and distrustful about

the protection provided by the regulators. The traditional response to the finding that

experts and non-experts have different perceptions and understandings about risk is to

institute risk communication programmes designed to re-educate consumers. However,

this approach is unlikely to be successful in an environment where individual consumers

distrust regulators and other experts.

Kruse and Ozdemir (2004)19 explore the relationship between individual's risk

perceptions and their willingness-to-pay for increased safety in a low-probability, high-

consequence event.

Raman and Gayatri (2004)20have observed the customers s towards new insurance

companies. They found that 53% of the respondents belong to the age group below 30,

24% to the age group 31-40, 2% belong to the age group of 41-50 and the rest of the



respondents belong to the group of above 50. They also observed that a large percentage

of the insured respondents (32%) are professional, and 56% of the respondents are

married it also found that 52% of the respondents have taken a policy to cover risk and

44% of them to avoid tax and the remaining to invest their surplus amount

Sharma (2005)21 performed a study on Insurance perspective in Eastern-up with the

objective of probing into the reasons or the factors behind the purchase of the insurance

product. It was found that according to 93.86% of respondents insurance policies are

considered indispensable for risk protection.

Helmut Gründl, Thomas Post, Roman Schulze, (2005)22 found that demographic

risk, i.e., the risk that life tables change in a nondeterministic way, is a serious threat to

the financial stability of an insurance company having underwritten life insurance and

annuity business. The inverse influence of changes in mortality laws on the market value

of life insurance and annuity liabilities creates natural hedging opportunities.

Namasivayam et al., (2006)23, examined the socioeconomic factors that are

responsible for purchase of life insurance policies and the preference of the policyholders

towards various types of policies of LIC. From the analysis, the study concluded that

factors such as age, educational level and sex of the policyholders are insignificant, but

income level, occupation and family size are significant factors

Chadha and Kapoor (2008)24 showed that customers insurance buying decisions are

influenced by customer relationship management practices and reputation of the

company. In a competitive market, each of the players should create its niche domain

only this would ensure that the customer derives the best benefits out of the competition.

Praveen Sanu, GauravJaiswal and Vijay Kumar Panday (2009)25in their article,

"A Study of Buying Behavior of Consumers towards Life Insurance Company", Prestige

institute of Management and Research, Gwalion revealed that in present Indian market,

the investment habits of Indian consumers are changing very frequently. The individuals

have their own perception towards various types of investment plans.

selvavinayagam, K. and Mathivanan, R. (2010)26 article has revealed that the

competitive climate in the Indian insurance market has changed dramatically over the last

few years. At the same time, changes have been taking place in the government

regulations and technology. The expectations of policyholders are also changing. The



existing insurance companies have to introduce many new products in the market, which

have competitive advantage over the products of life insurance companies.

Perumal (2010)27 illustrated that the Indian insurance sector has adopted the path of

liberalization, and consequently both the positive and negative impacts of globalization

on the economy have been felt. The opening up of the insurance sector to the private

players has definitely been a positive development. The socio demographic and

psychographic trends in the liberalized era are very favourabic for the growth of the

insurance sector. The author concluded that LIC and the private companies should devise

their schemes with due consideration to these challenges.

Ramanathan, K.V. (2011)28research has resulted in the development of a reliable

and valid instrument for assessing customer perceived service quality, awareness level,

and satisfaction level of customers towards life insurance industry. Here, service quality

needs to be measured using a six dimensional hierarchal structure consisting of assurance,

competence, personalized financial planning, corporate im-age, tangibles and technology

dimensions.

S.pushpalathaP.Himajagathi (2013)29are discussed that rural market is vibrant and

holds tremendous potential of growth of insurance schemes with easy premium. the

marketing challenge lies in creating insurance awareness and the identified agents for

promoting life insurance. The preferential factors for opting insurance can be identified as

tax planning and risk cover in spite of various factors like financial compensation,

maximum return and financial safety. There is a major demand for traditional policies

than newly emerged plans such as ULIPS and children plans Agent's behavior along with

brand image made the respondents to choose an insurance company and to select an

appropriate plan.

TABLE 3.1

Age of Respondent

SL.NO AGE IN YEARS NUMBER PERCENTAGE


“Analysis Of Insurance Buyers’ Perception Towards Private Life Insurance Company And Policies” OF

RESPONDENTS OF

RESPONDENTS

1 19 – 28 28 56%

2 29 – 38 9 18%

3 39 – 48 6 12%

4 49 – 58 6 12%

5 59 – 68 0 0%

6 69 – 78 1 2%

TOTAL 50 100%

SOURCE: - SURVEY DATA

INTERPRETATION

The above table classified the respondents on the basis of their age group.

The majority of the respondents belong to the age group of 19 to 28 years with 56% and

the second age group is 29 to 38 years with 18%, followed by 39 to 48 years and 49 to 58

years with 12% each. Majority of the insurance holders are belonging to the age group of

20-30 years.

The reason for 20-30 year group people opt for insurance because in Indian culture

marriage will make 20 year to 30 year therefore the persons responsibility will increase.

GRAPH 3.1

Age of Respondents



19-28 29-38 39-48 49-58 59-68 69-780%

10%

20%

30%

40%

50%

60% 56%

18%

12% 12%

0% 2%

TABLE 3.2

Proportionate of male and female respondents

TYPES OF NUMBER OF PERCENTAGE OF



RESPONDENTS

RESPONDENTS

RESPONDENTS

MALE RESPONDENTS 37 74%

FEMALE

RESPONDENTS

13 26%

TOTAL 50 100%


INTERPRETATION

This table helps us to understand that there is more number of male consumers

with 74% than the female consumers with 26%. Most of the insurance holders are male

people, so we can reach a conclusion that the male people are more aware about the

insurance and its importance

The reason for male group people opt for insurance because in India male is the

head of the family and his risk is high. To reduce his risk male will buy the insurance.

GRAPH 3.2

Proportionate of male and female respondents



MALE RESPONDENTS FEMALE RESPONDENTS0%

10%

20%

30%

40%

50%

60%

70%

80%

TABLE 3.3

Insurance investors’ occupation

SL.NO OCCUPATION NUMBER OF

RESPONDENTS

PERCENTAGE

OF



RESPONDENTS

1 STUDENTS 4 8%

2 GOVERNMENT

EMPLOYEES

18 36%

3 PRIVATE

EMPLOYEES

21 42%

4 HOUSE WIFE 7 14%

TOTAL 50 100%


INTERPRETATION

It could be inferred that majority of consumers of life insurance policies are

private employees with 42% and Government employees with 36%, followed by students,

house wife’s. The employees are the large proportion of insurance holders compared to

other categories.

The private and government employees respectly invest there money in insurance

for getting the benefit for tax exemption.

GRAPH 3.3

Insurance investors’ occupation



STUDENTS GOVERNMENT EMPLOYEES

PRIVATE EMPLOYEES HOUSE WIFE0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

TABLE 3.4

Income Group of Respondents

SL.NO INCOME GROUP NUMBER OF PERCENTAGE



RESPONDENTS

OF

RESPONDENTS

1 LESS THAN

5000

5 10%

2 5001 – 10,000 8 16%

3 10001 –

15000

14 28%

4 15001 – 25000 19 38%

5 GREATER

THAN 25000

4 8%

TOTAL 50 100%


INTERPRETATION

The majority of dominant income group having life insurance policies belong to

the income group of 15,001 to 25,000, which is middle class group followed by the

income group of 10,001 to 15,000. Most of the consumers of insurance policies are

belonging to the income group of 5000-25000 because now days the salary is base is

5000 to 25000.

GRAPH 3.4

Income Group of Respondents



5000 5001 – 10,000 10001 – 15000 15001 – 25000 GREATER THAN 25000

0

5

10

15

20

25

30

35

40

10

16

28

38

8

TABLE 3.5

Attributes of Respondents



SL.NO ATTRIBUTE SCORE RANK

1 RETURN ON

INVESTMENT

40 1

2 PREMIUM

OUTFLOW

35 2

3 COMPANY

REPUTATION

25 3

4 SERVICE QUALITY 19 4

5 PRODUCT

QUALITY

17 5


INTERPRETATION

This table shows the strengths and weaknesses of the brand, and what are the

important criteria or attributes on which decision making is done. From this table we can

infer that consumers give more importance for Return on investment, secondly they

prefer premium outflow, and then company reputation followed by service quality and

product quality. The strengths and weaknesses of the brand, and what are the important

criteria or attributes on which decision making is done. From this figure we can infer that

consumers give more importance for Return on investment, secondly they prefer premium

outflow.

Almost all the invest in insurance except the good return on their investment with

consideration of premium.



GRAPH 3.5

Attributes of Respondents

RETURN O

N INVEST

MENT

PREMIUMOUTF

LOW

COMPANY REP

UTATIO

N

SERVICE Q

UALITY

PRODUCT QUALIT

Y0

1

2

3

4

5

6

1

2

3

4

5

TABLE 3.6

Factors Influenced For Buy Life Insurance Policy



SL.NO FACTORS NUMBER OF

RESPONDENTS

PERCENTAGE

OF

RESPONDENTS

1 PERSONAL

INTEREST

21 42%

2 FAMILY FRIENDS 14 28%

3 AGENTS 6 12%

4 ADVERTISEMENT 9 18%

TOTAL 50 100%


INTERPRETATION

This table is helpful in knowing which media is best suitable for promoting a life

insurance product. It can be seen that personal interest influences a consumers to buy a

life insurance product, followed by family friends, advertisements and agents.

The key factor which influences the consumers to buy the life insurance product is

personal interests, followed by family friends, advertisements and agents.

For family safety the people will buy insurance with personal interest.



GRAPH 3.6

Factors Influenced For Buy Life Insurance Policy

PERSONAL INTEREST FAMILY FRIENDS AGENTS ADVERTISEMENT0%

5%

10%

15%

20%

25%

30%

35%

40%

45% 42%

28%

12%

18%

TABLE 3.7

Respondents Preference to Invest Their Money



NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

INSURANCE

COMPANY

24 48%

BANK 26 52%

TOTAL 50 100%


INTERPRETATION

From the table it is clear that majority of people (52%) prefer to invest in

Bank and others (48%) prefer to invest in Insurance companies. most of the

respondents are preferred to invest their money in bank rather than insurance sector.

48% of respondent ready to invest in insurance.



GRAPH 3.7

Respondents Preference to Investment

INSURANCE COMPANY BANK45%

46%

47%

48%

49%

50%

51%

52%

53%

48%

52%

TABLE 3.8

Satisfaction Level of Respondents with Current Life Insurance Company



RESPONSE NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

YES 47 94%

NO 3 6%

TOTAL 50 100%


INTERPRETATION

From this table it could be inferred that 94% of the consumers are satisfied with

the service and quality of products of their life insurance companies. Only 6% of

consumers are not satisfied. It could be inferred that most of the consumers are satisfied

with the service and quality of products of their life insurance companies.

GRAPH 3.8

Satisfaction level of respondents with current life Insurance Company



YES NO0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% 94%

6%

TABLE 3.9

Ratings of the Services Offered by Life Insurance Company to the Respondent’s



RATINGS NUMBER OF

RESPONDENTS

PERCENTAGE

OF

RESPONDENTS

EXCELLENT 7 14%

VERY GOOD 12 24%

GOOD 20 40%

AVERAGE 11 22%

POOR 0 0%

TOTAL 50 100%


INTERPRETATION

From this table it could be inferred that 40% of the consumers have rated service

offered as good, 24% of them have rated them as very good, 22% of them have rated as

average and 14% of them have rated as excellent. Most of the respondents have rated

their current life insurance company’s performance as good.

GRAPH 3.9

Ratings of the Services Offered by the Respondent’s Life

Insurance Company



EXCELLENT VERY GOOD GOOD AVERAGE POOR0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

14%

24%

40%

22%

0%

TABLE 3.10

Investors’ willingness to communicate the service offered by their life insurance

company

RESPONSES NUMBER OF PERCENTAGE OF



RESPONDENTS RESPONDENTS

YES 39 78%

NO 11 22%

TOTAL 50 100%


INTERPRETATION

From this table it can be noted that the majority of consumers (78%) would like to

communicate the service offered by life insurance companies and 22% of consumers

would not like to communicate the service offered. It can be noted that the majority of

consumers would like to communicate the service offered by life insurance companies

The Investors’ willingness to communicate the service offered by their life insurance

company because the company response and quality is good therefore they like to

communicate with other investor.

GRAPH 3.10



Investors’ willingness to communicate the service offered by their life insurance

company

YES NO0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

78%

22%

TABLE 3.11

Number of Life Insurance Company Known by Respondents

NUMBER OF LIFE NUMBER OF PERCENTAGE OF



INSURANCE

COMPANY KNOWN


< 5 24 48%

5 – 7 19 38%

8 – 10 5 10%

>10 2 4%

TOTAL 50 100%


INTERPRETATION

This table helps us to know the consumer awareness about the life insurance

companies. 48% of the consumers are aware about less than 5 life insurance companies,

followed by 38% consumers who know 5 to 7 life insurance companies. Most of the

respondents are aware about, around five to six Companies

GRAPH 3.11



Number of Life Insurance Company Known by Respondents

< 5 5 – 7 8 – 10 >100%

10%

20%

30%

40%

50%

60%

48%

38%

10%

4%

TABLE 3.12

Different Life Insurance Companies Know By Respondents

COMPANIES NUMBER OF PERCENTAGE OF




LIC 25 50%

TATA AIG 3 6%

HDFC 5 10%

ICICI 8 16%

MET LIFE 2 4%

BAJAJ ALLIANZ 2 4%

ING VYSYA 3 6%

OTHER 2 4%

TOTAL 50 100%


INTERPRETATION

This table helps us to understand the different life insurance companies. LIC has a

major share of 78 %, followed by ICICI Prudential with 16% market share, followed by

HDFC Standard Life with 10% market share. Most of the insurance holders are the

consumers of LIC Since it can be understand that the people are having more trust in the

LIC compared to other private insurance companies.



GRAPH 3.12

Different Life Insurance Companies Known By Respondents

LIC TATA AIG HDFC ICICI MET LIFE BAJAJ ALLIANZ

ING VYSYA OTHER0%

10%

20%

30%

40%

50%

60%

50%

6%10%

16%

4% 4% 6% 4%

TABLE 3.13

Investor Like To Continue With the Same Life Insurance Company





YES 45 90%

NO 5 10%

TOTAL 50 100%


INTERPRETATION

This table helps us to know that 90% of consumer would like to continue with

same life insurance company. 10% of consumer would not like to continue with same life

insurance company. The most of the insurance holders are like to continue with the same

life insurance company. Some of consumer would not like to continue with same life

insurance company because the satisfaction level is good with their company.



GRAPH 3.13

Investor Like To Continue With the Same Life Insurance Company

YES NO0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%90%

10%

TABLE 3.14

Number of life insurance policy hold by investors’

SCHEME NUMBER OF PERCENTAGE OF



RESPONDENTS

RESPONDENTS

WHOLE LIFE 19 38%

ENDOWMENT PLUS 13 26%

MONEY BACK 11 22%

PENSION FUND 7 14%

TOTAL 50 100%


INTERPRETATION

This table helps us to know the consumers mostly buy the life insurance product

of 38% of whole life, 26% endowment plus, 22% money back, 14% pension fund. Most

of the insurance holders have a policy scheme of whole life and secondly Endowment

plus. Because whole life policy is best policy



GRAPH 3.14

Number of life insurance policy hold by investors’

WHOLE LIFE ENDOWMENT PLUS MONEY BACK PENSION FUND0%

5%

10%

15%

20%

25%

30%

35%

40% 38%

26%

22%

14%

TABLE 3.15

Satisfaction Level towards Services Offered By Private Life Insurance

NUMBER OF PERCENTAGE OF




FULLY SATISFIDE 15 30%

PARTIALLY SATIFIED 29 58%

NOT SATIFIED 6 12%

TOTAL 50 100%


INTERPRETATION

This table helps us to know the consumer’s satisfaction level firstly 58% are

partially satisfied, secondly 30% are fully satisfied and 12% are not satisfied. Most of

consumer is partly satisfied and some consumer is fully satisfied and also some consumer

not satisfied.

GRAPH 3.15



Satisfaction Level towards Services Offered By Private Life Insurance

FULLY SATISFIDE PARTIALLY SATIFIED NOT SATIFIED0%

10%

20%

30%

40%

50%

60%

70%

30%

58%

12%

TABLE 3.16

Formalities in Private Life Insurance Companies




RESPONDENTS

RESPONDENTS

YES 5 10%

NO 45 90%

TOTAL 50 100%


INTERPRETATION

This table helps us to know that 90% of consumer said that private life insurance

company don’t have a complex formalities and 10% consumer of said that private life

insurance company have a complex formalities in private life insurance company. It can

be noted that the majority of consumers said that private life insurance don’t have

complex formalities and some of them said that private life insurance company have a

complex formalities in private life insurance company.



GRAPH 3.16

Formalities in Private Life Insurance Companies

YES NO0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10%

90%

TABLE 3.17

New Policy Would You Like To Go For



RESPONSES NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

LIC 40 80%

PRIVATE LIFE INSURANCE 10 20%

TOTAL 50 100%


INTERPRETATION

This table shows the strengths and weaknesses of the brand, and what are the

important criteria or attributes on which decision making is done. From this table we can

infer that consumers give more importance for LIC, secondly they prefer Private Life

Insurance. The strengths and weaknesses of the brand, and what are the important criteria

or attributes on which decision making is done. From this figure we can infer that

consumers give more importance for LIC, secondly they prefer Private life insurance.



GRAPH 3.17

New Policy Would You Like To Go For

Category 1 PRIVATE LIFE INSURENCE0%

10%

20%

30%

40%

50%

60%

70%

80%

90%80%

20%

TABLE 3.18

Satisfaction of private life insurance policy holder towards private life insurance

company



RESPONSES NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

YES 44 88%

NO 06 12%

TOTAL 50 100%


INTERPRETATION

This table shows the consumer opinion on agents of private life insurance 88% of

consumer say that they provide correct information and 12% of consumer say that did not

provide correct information. The consumer opinion on agents of private life insurance

consumer say that they provide correct information and some consumer say that did not

provide correct information

GRAPH 3.18



Satisfaction of private life insurance policy holder towards private life insurance

company

YES NO0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%88%

12%

TABLE 3.19



Investor like More in Insurance Policies of Private Life Insurance

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

MORE BENEFITS 17 34%

MORE SECURITY 18 36%

BOTH 15 30%

TOTAL 50 100%


INTERPRETATION

This table helps us to know the consumer’s what expects from private life

insurance firstly 58% are expects more benefits, secondly 36% are expects more security

and 30 % are expects both . The consumer’s what expects from private life insurance

firstly are expects more benefits, secondly are expects more security and are expects both.

36% of people expect more from the insurance.



GRAPH 3.19

Investor like More in Insurance Policies of Private Life Insurance

TABLE 3.20

Overall Satisfaction with Insurance Policies of Private Life Insurance


MORE BENEFITS MORE SECURITY BOTH0%

50%

100%

150%

200%

250%

300%

350%

400%


NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

HIGHLY SATISFACTORY 10 20%

SATISFACTORY

AVERAGE

32 64%

DISSATISFACTORY 5 10%

HIGHLY

DISSATISFACTORY

3 6%

TOTAL 50 100%


INTERPRETATION

This table helps us to know the consumer’s satisfactory level of consumer firstly

64% are satisfactory average, secondly 20% are highly satisfactory and 10% are

dissatisfactory and finally 6% are highly dissatisfactory. The consumer’s satisfactory

level of consumer firstly is satisfactory average, secondly is highly satisfactory and is

dissatisfactory and finally is highly dissatisfactory.

GRAPH 3.20



Overall Satisfaction with Insurance Policies of Private Life Insurance

HIGHLY SATISFACTORY SATISFACTORY AVERAGE DISSATISFACTORY HIGHLY DISSATISFACTORY0%

10%

20%

30%

40%

50%

60%

70%

4. FINDINGS

The 56% of respondents there willing to invested in insurance there are belongs to

the categories of 19-28 year age group, the major reason are 19-28 group people

invested in insurance because in India and special malnad region male and female



met the marriage in between 19-28 years therefore they want to minimize the risk

and uncertainty they invest the money in insurance.

The 2% of people invest in insurance managerial for health insurance.

72% of male respondent showing the positive attitude to invest money in

insurance the major reason, main is the head of the family.

42% and 36% of private employees and government employees respectly invest

the money in insurance for getting the benefit for tax exemption.

38% respondent are belongs to the income level of Rs 15,000-25,000 as annual

income.

Almost all the investor in insurance expects the good return on their investment

with consideration of premium.

28% life insurance policy is purchase by life insurance holder family and friend.

48% of respondent ready to insurance in insurance.

94% of people are satisfied by the life insurance company because liablaraties

policy.

40% respondents there given good rating for Life Insurance Company.

78% of respondents are willing to communicate the services.

48% of respondents are holding a less than 5 insurance policy.

80% of people ready to invest money in LIC.

36% of people expect more safety form the insurance.

10% of respondent they won’t continue in the company because of inadicvates

information and unsatisfactory service.

5. SUGGESTION



56% of respondents invested money in insurance therefore insurance company

special private insurance company plan to introduce new type of policy to attract

the people who are belongs to 19-28 year group.

The age group of 59-68 they want invest in insurance the major reason is 59-68

period of retirement.

Only 26% of female respondent showing positive attitude in invest the money in

insurance therefore support attractive policy for female is essential.

52% of respondents ready to invest money in bank because they expect high level

of safety therefore high bread instrument is essential to attract people and give a

high level of safety and return.

22% people there give the average rating for life insurance company therefore

high bread instrument are essential.

Only 20% respondent invests money in private life insurance company therefore

private life insurance company very careful about framing new policies.

6. CONCLUSION:



This study titled “Analysis of Insurance Buyers’ Perception towards Private Life

Insurance Company and Policies” enables the Life Insurance Companies to understand how consumer’s perception differs from person to person. How a consumer selects, organizes and interprets the service quality and the product quality of different Life Insurance Policies, offered by various Life Insurance Companies The response of the insurance companies has been very positive and within a short span on time, the Indian insurance market scenario has seen a perceptible change in terms of improved customer service benchmarks and introduction of innovative and tailors made products.Most of the insurance majors have represented in the form of joint venture in Indian market. The new products that have been introduced by the companies have certain innovative features in terms of better customer services and also wider covers. This has given customer ample choice to select products.

It is very much apparent that the insurance sector is poised for huge growth by

way of number of policy holders, policy premium, new product, and increased technology

focus. This would in turn play an important role in vacillating and sustaining growth. Life

insurance has today become a mainstay of many market economies since it offers plenty

of scope for garnering large sums of money for long periods of time. A well regulated life

insurance industry which moves with the times by offering its customers tailor made

products to satisfy their financial needs is therefore essential if we desire to progress

towards a worry free future.



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Websites www.google.com

www.j-gate.com

www.ucolifeinsurance.com

www.slideshare.com


http://www.slideshare.com/

http://www.ucolifeinsurance.com/

http://www.j-gate.com/

http://www.google.com/


QUESTIONNAIRE

Respected sir/madamI Mr. Harish Kumar B K, pursuing MBA, in Finance specialization at HRIHE.

I am doing a study on “Analysis of insurance buyer’s perception towards private life

insurance companies and policies”. Feel free to answer and the result will be used only

for academic purpose.

Name:

1. Age:

2. Occupation:

3. Monthly income:

<5000 5000-10,000 10,000-15,000

15,000-25,000 >25,000

4. Do you have a Life Insurance Policy with any Life Insurance Company?

Yes No

5. What factors do you consider while buying a life insurance policy?

Premium Outflow Company Reputation

Service Quality Product Quality

Return on Investment

6. What factors influenced to buy Life Insurance Policy?

Personal interest Friends Family

Agents Advertisements



7. Do you prefer to invest your money in an Insurance company or in a Bank?

Insurance Company Bank

8. Are you satisfied with your current Life Insurance Company?

Yes No

9. How do you rate the service offered by your Life Insurance Company?

Excellent Very Good Good

Average Poor

10. Would you like to communicate the service offered by your Life Insurance

Company to others?

Yes No

11. How many Life insurance Companies do you know?

<5 5-7 8-10 >10

12. How do you rate the following Life Insurance Companies?

LIC HDFC ING VYSYA MET LIFE

BAJAJ ALLIANZ ICICI TATA AIG Others

13. Would you like to continue with the same Life Insurance Company?

Yes No

14) What scheme of insurance policy have you taken?

Whole Life Endowment plus Money Back

Pension Fund

15) Satisfaction level towards services offered by private life insurance

Fully satisfied Partially Satisfied Not satisfied



16) Do private life insurance have complex Formalities”?

Yes No

17) If you buy a new policy would you like to go for LIC or private life insurance?

LIC Private life insurance

18) Do agent of private life insurance provides the correct information

Yes No

19) What would you like more in Insurance Policies of private life insurance?

More benefits More security Both

20) Rate your overall satisfaction with Insurance Policies of private life insurance

Highly Satisfactory Satisfactory Average Dissatisfactory

Highly Dissatisfactory


Economy & Finance

anaalysis of life insurance buyers perception towards private life insurance company and policies