22355906 a Project Report on the Study on Consumer Perception Regarding Insurance

8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance

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A

Project Report

On

THE STUDY ON CONSUMER PERCEPTION REGARDING INSURANCE

For

SHARE KHAN Pvt.Ltd.

Pune

Submitted toUNIVERSITY OF PUNE

Submitted By:

Project Guide

SINHGAD INSTITUTE OF MANAGEMENT & COMPUTER

APPLICATION

(SIMCA)

Share Khan Pvt. Ltd. Pune1


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Pune-411041

.

TABLE OF CONTENTS



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Share Khan Pvt. Ltd. Pune

Sr.

No. Title Page No.

1 EXECUTIVE SUMMERY 4

2 INTRODUCTION 6

3 COMPANY PROFILE 18

4 OBJECTIVES OF THE STUDY 24

5 RESEARCH METHODOLOGY 26

6 OBSERVATION & ANALYSIS 28

7 LIMITATIONS 42

8 SUGGESTIONS 44

9 BIBLIOGRAPHY 46

10 ANNEXURE 48

3


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EXECUTIVE SUMMERY

The project title THE STUDY ON CONSUMER PERCEPTION REGARDING

INSURANCE being carried out forSHARE KHAN LTD.

The evaluation of insurance has been increased through a decade which is best

customer rise. Now a days investment of saving has assumed great importance.

This project is represents an information regarding companys brand awareness and

customer perceptions about the various services which the organization provide. Main



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objective of the project is to understand the customer investment preferences effectively and

efficiently. For execution of the project methodology adopted collection of data through

questionnaire, processing and analyzing the data.

I hope SHARE KHAN, Pune will recognize this, as well as they take more refer from

the project report. The main objective of the project is to know about perception of customer

towards insurance and, also to know the investing pattern of people in different financial

reports.

IT sector has been given more emphasis for the study of the project because it is the

sector where all the type of Age group, Income class and different level of people represented.

The idea behind the project is to find the customer perception towards the insurance

thats available in market.



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INTRODUCTION

Insurance in India.

Origin of life insurance.

Role of life insurance.

Need for life insurance.



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Insurance in India

The insurance industry in India emerged about 200 years ago. In India the insurance was

on track without any rule or any guidelines in the Nineteenth Century. The first insurance

company was life insurance which started its operations on 1818, there after the first general

insurance company was set-up in 1850. Both the industry established very quickly in both

sectors with a rapid growth. After the independence, the insurance market took a dramatic

turn. Until 1956, there were 154 Indian insurers and 16 non-Indian insurers companies were

already on their moves in the life sector.



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India, with a population of 1 Billion offers great potential and opportunity for the

insurance industry. Currently, two state-owned monoliths - Life Insurance Corporation and

General Insurance Corporation (GIC), run the insurance industry. The General InsuranceCorporation commands the general insurance sector along with four of its fully owned

subsidiaries viz. National Insurance Company, New India Assurance Company, Oriental

Insurance Company and United India Insurance Company.

Malhotra Committee, appointed by the Government of India for conducting a study on

insurance, in its report in 1994 stated that only 22% of the Indian population is insured. The

poor reach of insurance in the country and the sheer numbers make India a market with

tremendous potential. The following facts show how under-developed the Indian insurance

business is due to state monopoly and lack of aggressive marketing of insurance policies:

Per capita insurance premium in India is a mere US$ 6, one of the lowest in the world. In

South Korea, the corresponding figure is US$1,338, in USA it is $ 2250 and in UK it is $1589.

Insurance premium in India accounts for a mere 2 per cent of GDP compared to the

world average of 7.8 per cent and G-7 average of 9.2 per cent.

Insurance premium as a percentage of savings is barely 5.95 per cent in India compared

to 52.5 per cent in the UK.

Nationalized insurance companies have not been able to target niche markets that are

currently served poorly or not at all. Life insurance products provide a good example. They

compete with investment and savings options like mutual funds. It is imperative that they

should offer comparable returns and flexibility. For instance, pure protection products like

term assurance account for up to 20 per cent of policies sold in developed countries. In India,

the figure is less than one percent because policies are inflexible. Besides, no Indian life

assurance product is linked to non-traditional investment avenues such as stock market

indices. Therefore, returns are lower than those on other savings instruments.



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Retail segment or personal lines insurance, especially in general insurance is another

area unexplored. Currently personal insurance, including health, householders, shopkeepers,

personal accident, travel insurance and professional indemnity covers constitute only 12 percent of Indian general insurance premium. This poor figure is largely due to the lack of

adequate distribution channels rather than a lack of products. By tapping such under-served

niches, new entrants can expand the market substantially. Since service and speed will be

valued, a price premium is also possible.

Premium rates are at present set most unscientifically with very little attempt to fine

tune the risk attached to different categories of businesses. The result is that they penalize the

low risk category, which is in majority. This can be seen in the failure to differentiate between

smokers and non-smokers in fixing premium for life and personal accident covers or between

flood-prone areas and dry lands for fire and allied perils cover. This results in a great deal of

cross-subsidization. Low premium rates in one area necessitate higher premium elsewhere.

Mortality tables are not revised for ages and no effort is made at all to re-evaluate the rating of

other classes based on recent loss experiences. Indias insurance industry, private and public,

has its roots in the 19th century. The British Government set up state-run social protection

schemes for its colonial officials, many of which evolved into today is schemes. The first

private insurance company was the Oriental Life Insurance Company, which started in

Calcutta in 1818. Under British rule, many insurers Operated in India. In 1938, the British

passed the Insurance Act, comprehensive insurance Legislation, which remains the

cornerstone of the insurance industry today.

Regulated insurers are divided into two categories: life and general insurance. Life insurance

Includes products like endowments policies and retirement annuities. General insurance

covers all other types of insurance. In 1956, the Indian government nationalized the life

Insurance industry. The reasons given at the time were high levels of fraud in the industry and

a desire to spread insurance more widely, as NEHRU noted at time in parliament, We require

Life insurance to spread rapidly all over the country and to bring a measure of security to our

people. The government combined 154 insurance providers and formed the Life Insurance

Corporation (LIC) of India.



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General insurance remained in private hands until 1973 when it too was nationalized.

Prior to Nationalization, 68 Indian and 45 non-Indian entities sold insurance. All of these were

absorbed into one giant corporation, the General Insurance Corporation (GIC) with its foursubsidiaries:

Oriental Insurance Company Limited,

New India Assurance Company Limited,

National Insurance Company Limited

United India Insurance Company Limited.

Despite Nehrus desires, in the decades following nationalization, insurance products

were designed primarily for those with regular income streams, i.e., those in formal

employment.

These were overwhelmingly men in urban areas. The poor, working mostly in

agriculture, were largely overlooked by these new companies.

When the ideological winds of change blew in the early the early 1990s, the Indian

government set about liberalizing its insurance markets. It set up a commission of enquiry

under the chairmanship of R N Malhotra. The central outcome of the commission was the

establishment of the Insurance Regulatory and Development Authority (IRDA) that in turn

laid the framework for the entry of private (including foreign) insurance companies. At the

beginning of 2005, there were 14 life and 14 non-life insurers operating in India.

Indias insurance penetration (premiums as a percent of gross domestic product) in

2003 is Low at 2.9 percent, and ranks 54th in the world. In premium collection, the record is

better, at 19th position collecting US$17 billion in 2003. The 2003 ratio of premiums collected

per Capita (insurance density) is 16.4. Compared with a world average of 469.6, Indias

insurance Industry is still at a very nascent stage. Of the US$16.4 per capita expenditure on

insurance, a Mere US$3.5 is spent on general insurance. This is primarily because in India,

non-life Insurance is not considered important and people perceive it as an unnecessary

expenditure.



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Origin of Insurance in India

Insurance activity in India is going on for more than 150 years. In India, life insurance

in its modern form was brought for the first time by the British. The Oriental Life Insurance

Company started in 1818 in Calcutta was the first to be founded in India by Europeans to help

the widows of their community. The general insurance business in India, on the other hand,

can trace its roots to him Triton Insurance Company Ltd, the first general insurance company

established in the year 1850 in Kolkata by the British. The year 1870, saw the birth of first

Indian Insurance Company namely, Bombay Mutual Life Assurance Society. The basic aim of



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this company was to insure Indian lives at normal rates since in the earlier period. Indian lives

were treated as subnormal and loaded with an extra premium of fifteen to twenty per cent.

However, right up to the end of 19

th

century, the foreign insurance companies in India had anupper hand in matters of Insurance business. Insuring Indian lives with 10 percent of extra

premium was a common practice prevalent in those times. The Indian Life Assurance

Companies were the first to regulate the life insurance business in 1912. In 1928, the Indian

Insurance companies act enabled the government to collect statistical information about both

life and non life insurance business. Later, the insurance Act of 1938 was passed and

department of insurance under authority of superintendent of insurance was established for the

administration of the Act. Up to 1939, 199 companies were working in India. However, the

period 1939-55 was marked by:

World War II resulting in hasty premium adjustments by Indian companies.

Series of amendments to the insurance Act, 1938.

Appointment of a committee under the Chairmanship of Sir Cowasji Jehanger

to enquire into and to recommend measures to check certain trends and undesirable

features in the management of insurance companies.

The findings of the sub committee on insurance under the National Planning

Commission headed by Pt. Jawaharlal Nehru.

Partition of India.

De-valuation of rupee on September 18, 1949.

The insurance Amendment Act.

Interest yield sagging to the lowest lend of three percent and remaining at that

level over 1947-1949.

The rate war and cut throat competition between insurance companies.

The recommendation of the ruling political party, the Indian National Congress,

to the government that the life sector insurance be nationalized, and



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The founding of the Jiwanlal Chimanlal Setawad Memorial--The Federation of

Insurance Institutes.

The study of insurance companies of that time clearly reveal that concept of trust ship

which should be cornerstone of life business seemed entirely lacking and most of the

managements had no appreciation of the clear and vital distinction that exists between trust

monies and those that belong to joint stock companies owned by shareholders. So the

nationalization of life insurance business became necessary with a view to-

Provide cent percent security to policy holder,

Ensure the use of life insurance funds for nation building activities,

Avoid wasteful efforts in competition,

Save the dividends paid to shareholder of insurance companies,

Avoid certain undesirable practices adopted by some of the insurance

companies management, and

Spread the gospel of life insurance into the neglected rural areas.

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

Government and nationalized. In 1956, the Government of India nationalized the life

insurance business. Since then the entire life insurance business is being transacted by the

Life insurance Corporation of India for more than four decades, the LIC has been enjoying

monopoly status enjoying supernormal profits at the expense of consumers in life business in

the country. The LIC by this time has grown manifold. At present it has a network of 7 zones,

100 divisions and over 2000 branches. The annual premium income was US $21 million in

1956. Current business investment in LIC is over US $29 billion. Life insurance funds

constitute approximately 11 percent of gross household saving in financial assets in India, and

a little over 1 percent of gross domestic product. Life insurance Corporation of India, despite

its best efforts, has not penetrated more than 15 percent of the insurance population, which

itself is more than 300 million. Insurance penetration as a measure of percentage of GDP is

very low for India and countries like South Korea are much higher than India. With



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approximately $7 billion of premium collected annually, India is the 23 rd largest market in the

world. The General insurance business (Nationalization) Act, 1972 nationalized the general

insurance business in India with effect from January 1, 1973. 107 insures amalgamated andgrouped into four companies, via the national insurance company Ltd., the New India

Assurance Company Ltd., the Oriental Fire and general insurance company Ltd., and the

United India insurance company Le., General insurance company (GIC) was incorporated as a

company. The four constituents of the GIC were to operate on a competitive basis and be

governed by the guidelines structured by the Government of India. Recognizing the need for

reforms in the financial and insurance sector, the government appointed the Malhotra

Committee to seek and identify the measures required for the reform process in the insurance

sector.

The Insurance Regulatory and Development Authority (IRDA)

Background

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority

(IRDA, which was constituted by an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of



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a) a Chairman;

b) Five whole-time members;

c) Four part-time members,

(all appointed by the Government of India)

Insurance business is divided into four classes:

I) Life Insurance,

II) Fire Insurance,

III) Marine Insurance and

IV) Miscellaneous Insurance:

Life Insurers transact life insurance business. General Insurers transact the rest. No

composites are permitted as per law.

The Indian insurance industry has today two types of players:

1. Public insurers:

Life insurers: e.g. Life Insurance Corporation of India (LIC)

Non-life insurers: e.g. General Insurance Corporation of India (GIC)

2. Private insurers

Life insurers: e.g. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD

Non-life insurers: e.g. Reliance General Insurance Company Ltd

ROLE OF INSURANCE INDUSTRY IN INDIA

Insurance would ensure less volatility and risk of failure in business and

thus provide for greater financial and societal stability.

Government plans disaster management, arrangement of funds and provides for

social security programs, NGOs and public institutions assist with fund raising and



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relief assistance. There is considerable impact upon government in these respects.

Insurance substantially steps in to provide these services. The effect would be to

reduce the strain on the taxpayer and assist in efficient allocation of societalresources.

Facilities trade, business and commerce by flexible adaptation to changing risk

needs particularly of the burgeoning service sector.

Insurance sector generates savings and directs the same to deserving

Investments. A sector with potential for business as is the case with Indian insurance

provides incentives to develop it all the more faster.

It enables risk to be managed more efficiently through risk pricing and risk

transfers and this is an area which provides unlimited opportunities in the Indian

context for consulting, broking and education is the post-privatization phase with

newer employment opportunities.

The basis interest of an insurance industry being loss minimization, its

expertise in understanding losses assists it to share the experience across the

economy. Thus enabling better loss control and preservation of national assets. In the

risk pricing and investment decisions the Insurance industry sets the tone for

investment by others in the economy. Informed assessment by the insurance

companies thus signals allocation of resources by others contributing to efficiency in

allocation.

In India visibility of LIC and GIC have been dwarfed by actions of government

and other high profile institutions like ICICI, IDBI, and UTI. Of late AIG is visible

in the media and institutional investors in India are following its investment

announcements keenly. ING Savings Trust and Zurich are in asset management and

are being keenly followed by retail investors.



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India has reasonably well developed accounting, legal and supervisory

institutions. These support the requirements of the insurance market very well. Othersupport services are expected to readily adapt to the new conditions of the emerging

market.

Private Players in India

The new insurance companies used all channels of advertising from newspapers and

the television to insurance agents and direct mailers. The new companies focused their

campaigns primarily on building an image of trustworthiness and reliability for themselves.

Their advertisement focused on insurance as an investment option and not a mere tax saving

tool. Most of these advertisements carried messages like the familys happiness. It has been



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more than 5 years since private insurance companies lunched operations in India, which is

depicted in the Table given below.

Company Indian Partner Foreign Insurer Area

Birla Sun life Aditya Birla Group Sun life, Canada Life

Om Kotak Kotak Mahindra Fin.

Old Mutual,

South Africa Life

HDFC-Stand Life HDFC

Standard Life

UK Life

Royal Sundaram Sundaram Finance Roya Sun, U.K.

Life &

Non life

ICICI-Prudential ICICI Prudential, U.K. Life

Max New York Life Max India

New York Life

U.S.A. Life

Tata-AIG Tata group AIG USA

Life &

non Life

ING Vysya Vysya Bank

ING Ins.,

Netherlands Life

Aviva Dabur CGU life, UK Life

Met Life India J & K Bank Met Life, USA Life

Bajaj Allianz Bajaj Auto Allianz

Life &

non Life

Reliance life Ins. A.D.A.G. Genins Life

SBI Life Ins. SBI Cardiff, France Life

Need For Insurance

To provide cash to meet various routine expenses of the family on or

immediately after the death of the income earner of the family.

To preserve the familys accustomed standard of living ever after the death of the

breadwinner.



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To provide continuous flow of funds for the living spouse.

To allocate income funds for the childrens education.

To provide a retirement income throughout old age.

To provide a reliable savings plan for the future.

To supplement income when earning power is reduced or eroded by illness,

accident or any handicap.

To furnish surplus earnings for the investors should disaster strike.



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COMPANY PROFILE

Share khan Limited is a retail financial services provider with a focus on equities,derivatives and commodities brokerage execution on the National Stock Exchange of India

Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National Commodity and Derivatives

Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX). Share khan

provides trade execution services through multiple channels - an Internet platform, telephone



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and retail outlets and is present in 225 cities through a network of 615 locations. The company

was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer Vote.

Share khans equity related services include trade execution on BSE, NSE,

Derivatives, commodities, depository services, online trading and investment advice. Trading

is available in BSE and NSE. Along with Sharekhan.com website, Share Khan has around 510

offices (share shops) in 170 cities around the country

Share khan has one of the best states of art web portal providing fundamental and

statistical information across equity, mutual funds and IPOs. You can surf across 5,500companies for in-depth information, details about more than 1,500 mutual fund schemes and

IPO data. You can also access other market related details such as board meetings, result

announcements, FII transactions, buying/selling by mutual funds and much more.

Share khan Limited is a retail financial services provider with a focus on equities,

derivatives and Commodities brokerage execution on the National Stock Exchange of India

Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National Commodity and Derivatives

Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX). Share khan

provides trade execution services through multiple channels - an Internet platform, telephone

and retail outlets and is present in 225 cities through A network of 615 locations. The

company was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer

Vote.

Service Offer by Share Khan

Technical services

Equity and Derivatives Trading

Depository Services



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Fundamental Research

Online services

Share Shops

Commodity Trading

Portfolio Management

Dial-N-Trade

ICICI Prudential Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse and prudential plc, a leading international financial services

group headquartered in the United Kingdom.



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ICICI was established in 1955 to lend money for industrial development. Today, it has

diversified into retail banking and is the largest private bank in the country. Prudential plc was

established in 1848 and is presently the largest life insurance company in the UK.ICICI Prudential is currently the No. 1 private life insurer in the country.It was one of

the first players to commence operations when the insurance industry was opened to the

private sector in 2000. The company has a network of over 583 branches and over 234,000

advisors;

ICICI Prudential Life Insurance recorded a total new business premium of Rs. 51.6

billion during fiscal 2007 as compared to Rs.26.0 billion during fiscal 2006, a growth of

98.4%. ICICI Prudential Life Insurance was the largest player in the retail segment of the

private sector life insurance market with a market share of about 28% during fiscal 2007 (on

weighted received premium basis).

Registered Office:

ICICI Towers

9th floor, Bandra-Kurla Complex

Mumbai - 400 051.

Tel: 494 3232

ICICI Prudential life insurance tie up with Share khan

ICICI Prudential Life Insurance Company Ltd today said it has entered into a strategic

distribution tie-up with Share khan for distribution of ICICI Prudential Life's protection,

wealth creation, retirement solution and health insurance products to customers across the

country.

http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628


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The partnership has been established under the corporate agency model. Share khan, a

leading retail brokerage house, can now offer life insurance solutions from ICICI Prudential

Life with this partnership. The tie-up will also substantially strengthen ICICI Prudential Life'spresence in the country.

''Our philosophy is to partner with a limited number of organizations and build

distribution capabilities, around the partner's area of strength,'' said ICICI Prudential Life

Insurance Company Chief (Alternate Channels and Group Sales) Tarun Chugh.

ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life), the leading

private life insurer in India, has announced a strategic distribution tie-up with Share khan, oneof India's leading retail brokerage houses. The partnership has been established under the

corporate agency model and will enable Share khan to distribute ICICI Prudential Life's

protection, wealth creation, retirement solution and health insurance products to their

customers across the country.

Over the years, Share khan has established itself as a financial advisor and a retail

broker and has a large customer base that trusts it for knowledge and expertise in financial

services. With this partnership, they can now offer their customers the added benefit of life

insurance solutions from ICICI Prudential Life. The tie-up will also substantially strengthen

ICICI Prudential Life's presence in the country.

Mr. Tarun Chugh, Chief- Alternate Channels & Group Sales, ICICI Prudential Life

Insurance Company said, "Our philosophy is to partner with a limited number of organizations

which have strong brands and long-lasting, trust-based relationships with their customers and

build distribution capabilities, around the partner's area of strength. Share khan, with its

expertise in the area, is an ideal partner for us. We are sure this partnership will help Share

khan's customers reach us through a channel they already trust."

Mr. Jaydeep Arora, Director, Share khan said, ''Our customers are always looking at

investing in innovative products and this initiative will help us provide world-class products

http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628


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from India's leading private life insurer, besides offering excellent service levels. The products

of ICICI Prudential Life are customer centric and its service levels are excellent and we look

forward to offering them to our customers."

ICICI Prudential Life has a multi-channel distribution strategy to reach customers. In

addition to the advisor channel, the company has distribution arrangements with established

banks and large retail finance distributors.

SCOPE OF THE WORKWhen it comes to investing for the future most people miss the boat simply because the

put off doing the essentials to get started.



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They procrastinate, usually because they think that investing is too hard, or for some

other reason it really is not possible for them, and/or because theyre intimidated by the

financial works.

To create a financially secure future, it is imperative to start with a can do attitude.

Become a good investor you will also need to acquire knowledge of the financial world and

the various types of investments that are out there. To create lasting wealth, you invest your

money in solid investments that will compound on themselves, and grow your investment

capital year after year.

Share khan is available in more than 170 cities in all over India. Thus, it has access to

India, India Economy rising & here consumer can invest more money in financial instruments.

An average income per house hold is rising. People can invest much more money. Also it tries

to understand customer perception about their services better than the competitors.

The aim of this study is to provide enough information and strategies to help you

decide which investments may suit you.



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In which plan did customer want to invest.

For whom the customer want to buy the product (Bank, Customers, Advisor, Others)

As far as investment is concerned, how they rank ICICI prudential.

Whether customers are satisfied with fund charges by the company.

To know whether company is able to satisfied the customers queries.

Whether customers are satisfied with ICICI Prudential schemes.

Are the customers satisfied with the ROI charges by the company?

To know whether customer will go for Share khan Ltd. in future.



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RESEARCH METHODOLOGY

SAMPLING UNITS

Sampling units consist of:-

Retail Investors



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Corporate Investors.

Total of 25 units constitute the sample for study.

SAMPLING APPROACH

Quantitative approach

Method of primary data collection

Questionnaire

SAMPLING DESIGN

Probability method.

SAMPLE SIZE

Sample size: - 25 Respondents

Sample Type: - Due care was taken that all the 25 respondents included in the study were

homogeneous in all respects. In other words non investors were not included in the sample.

Efforts were also made to include investors who had varying levels of investments frequency

and invested amount.



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OBSERVATION and ANALYSIS

From the data collection during the survey following information is found:-

Out of total customers surveyed 76% are employees and 24% are businessman.



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It can thus be inferred that ICICI generates its maximum business from the employees.

Most of the customers have LIFE TIME SUPER PLAN. After that they have PENSIONPLAN after that SMART KID PLAN.


Life Time Super 16

Pension Plan 6

Smart Kid Plan 3

33

Occupation

24

76

0

10

20

30

40

50

60

70

80

Businessman Serviceman

Types

%Businessm

Servicema


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52% rank ICICI Prudential better than others, while 28% ranked good.

Rank %


ICICI's Plan

Life Time Super64%

Pension Plan

24%

Smart Kid Plan

12%

Life Time Su

Pension Plan

Smart Kid Pl


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better 52

good 28

bad 20

Most of the customers have their sum assured in the range of 100,000 to 300,000 and300,000 to 5,00,000.

0-1,00,000 8


Rank of ICICI Pru.

52

28

20

0

10

20

30

40

50

60

better good bad

Ranks

%

bett

goo

bad


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1,00,000-3,00,000 40

3,00,000-5,00,000 44

5,00,000+ 8

The customers prefer Yearly (56%) mode of premium payment. 20% of customers prefermonthly payment of premium.


Income

8

40

44

8

0

5

10

15

20

25

30

35

40

45

50

0-1,00,000 1,00,000-

3,00,000

3,00,000-

5,00,000

5,00,000+

%

0-1,00,000

1,00,000-3

3,00,000-5

5,00,000+


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Most of the ICICI Prudentials customer prefer 0-15 years of policy maturing period.


Mode Of Payment

56

24

20

0

10

20

30

40

50

60

Yearly Half Yearly Monthly

T es

%

Yearly

Half Ye

Monthly


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44% customers of ICICI prudential are Satisfied with Return of investment (ROI). But36% are not satisfied with Return of investment.


Maturing Period

0

10

20

30

40

50

60

70

80

0-15 Year 15+ Years

Period

%0-15 Ye

15+ Ye


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16% of the existing customers are ready to invest again in insurance while 36% in mutualfund, 20% in share market and 20% in fixed deposit.


44

36

12

8

0

5

10

15

2025

30

35

40

45

%

Satisfied Dissatisfied Very

Satisfied

Delight

Types

ROI

Satisfied

Dissatisfie

Very Satisfi

Delight


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Mostly customers (60%) take the insurance for themselves. Only 28% customers take

insurance for their wife.


16

36

20 20

8

0

5

10

15

20

25

30

35

40

%

1

Sources

Re Investment

Insuran

MutualFund

Share

Market

Fixed

Deposit

Others


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Whom You get the Product

Yourself, 60

Wife, 28

Child, 12

0

10

20

30

40

50

60

70

1

T es

%

Your

Wife

Child


42/55

48% customer purchase policy from Agent Companies. After that 24% purchase fromadvisors.


Purchase

16

48

24

12

0

10

20

30

40

50

60

1

from Whom

%

Bank

Agent Compan

Advisors

Others


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48% customers are satisfied with Fund Charges Of ICICI Prudential Company. But 32%customers are not satisfied.


Satisfaction With Fund Charges

Satisfied, 48

Dissatisfied, 32

Very Satisfied,

12

Delight, 8

0

10

20

30

40

50

60

1

%

Satisfied

Dissatisfie

Very Satisfi

Delight


44/55

32% customer gets the information of ICICI Prudential by Hoardings. After that 28% getfrom Newspaper.

Contribution of Major Market Player in India.


Advertisement of ICICI Pru.

T.V., 16

News Paper, 28

Hoardings, 32

Website, 24

0

5

10

15

20

25

30

35

1

Types

%

T.V.

News Pa

Hoarding

Website


45/55

Market Player

0%

5%

10%

15%

20%

25%

Birla

Sun

life

HDFC

-StandLife

ICICI-P

rudential

Max

New

YorkLife

Bajaj

Allia

nz

Reliancelife

Ins.

SBILife

Ins.

Name of Companies

Pe

rcentages


Birla Sun life 12%

HDFC-Stand Life 21%

ICICI-Prudential 18%

Max New York Life 13%

Bajaj Allianz 17%

Reliance life Ins. 11%

SBI Life Ins. 8%

45


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LIMITATIONS



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As I have concentrated on only one branch of Share khan may other branch have some

other result?

As sample size is so small that we cant think all customers have same view.

As time allotted so small that one cant do it well.

Very less time interacted with customer during filling up of questionnaire.

It also depend on the mood of researcher whether he is devoted to project or not.

Unawareness among people about policy.

Lack of after sells services.

High premiums as compared to the LIC policies as it are providing ICICI Prudentials

policies.

There are many hidden charges that can not be shown to the customers.



48/55

SUGGESTIONS



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o People are satisfied with value added service like through message, telephone

customer told about new product and they have to do next payment of policy moreservice should provided to them on screen alert for new product.

o Generally people of services doesnt go for investment but at year end they go for big

investment to save taxes let makes them aware from starting of year to save moretax.

o Well service people have good idea about the product but business people dont have

as they are not aware about so there should some type of meeting to held on holidayon which they given information in those.

o People should give those which can fulfill by company only.

o As we see that most of investor are from service as want to save tax so better product

can be offer to them in get good return.

o As people are more interested to invest in life time super plan as it give good return

so new product should launched taking basis of it.

o As we can see people are satisfy with relationship manager as they suggest good plan

to invest so that they should provide better advice to them.

o People are dissatisfied with the fund charges as they dont know how charges made

so there should be transparency so that they can know it.

o They have to make it more transparent.

o They have to publish their portfolio more frequently.

o More collaboration with banks.

o Personnel assistance to client.



50/55

BIBLIOGRAPHY



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www.iciciprulife.com

www.sharekhan,com

www.thehindubusinessline.com

www.moneycontrol.com

www.irdaindia.org

http://www.iciciprulife.com/http://www.thehindubusinessline.com/http://www.moneycontrol.com/http://www.irdaindia.org/http://www.iciciprulife.com/http://www.thehindubusinessline.com/http://www.moneycontrol.com/http://www.irdaindia.org/


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QUESTIONNAIRE

Name: - Gender:-



53/55

Address:-

Occupation: - Contact No.:-

Industry: - Designation: -

1. Pleases tell me the Names of the Insurance Companies You Are Aware Of?

2. Do you have a life insurance policy? Yes / no

If yes, which company

3. What are the reasons for choosing an insurance company / policy?

Score them on a scale of 1 to 10

Reliability

Rate of return

Number of Schemes available

Insurance agent

Transparency

Reputation

Easy documentation

Tax saving

4. Which plan do you have?

a) Life time superb) Smart kid



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c) Pension Plan

5. For whom you get this product?a) yourself b) wifec) childd) others

6. How you rank ICICI PRU?

a) badb) goodc) better

7. From whom you like to purchase?

a) bank b) agent companiesc) advisorsd) other

8. Are you satisfied with fund charges?

a) Dissatisfiedb) Satisfiedc) Very satisfiedd) Delight

9. Are you satisfied with ROI you get?

a) Dissatisfiedb) Satisfiedc) Very satisfiedd) Delight

10. Do you recall seeing any advertisement for ICICI Prudential? If yes where?

a) TV Commercial



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b) Magazines/ News paper

c) Billboards/ Hoardings

d) WebsiteOthers................................

11. Which kinds of payment do you prefer most?

a) Monthly Quarterly

b) Half yearly Yearly

12. What is maturing period of any policy do you take?

a) 0-15 Years

b) 15+ Years

13. What is your annual Income?

a) 0-1,00,000

b) 1,00,000-3,00,000

c) 3,00,000-5,00,000

d) 5,00,000 above

14. Where you Re-invest your money?

a) Insurance

b) Mutual Fund

c) Share Market

d) Fixed Deposit

e) Others

Date: - Name of Respondent

22355906 a Project Report on the Study on Consumer Perception Regarding Insurance

Documents