aswin-full

A study on peoples perception towards Insurance Project Report 2006

INTRODUCTION TO THE STUDY

The study was a modest attempt to understand the people’s perception towards

insurance by ICICI Prudential Life Insurance in Kollam District. ICICI prudential Life is the

second largest life insurance company in the country.

The study was conducted in the form of survey in around 150 peoples in various

parts of Kollam District. . Many banking sectors and other financial institutions have set up

insurance services that specialize to some degree in various style of money planning. Most

of the peoples have savings but they are not aware about insurance benefits and its various

schemes

This report consists of techniques and methodology used analysis, findings,

suggestions and constraints for the study that will help in improving the service being

offered by the company.

INTRODUCTION TO INDIAN INSURANCE INDUSTRY

Boasting of the largest number of operational life insurance policies in the world, the

Indian insurance industry has emerged as serious destination in the global insurance market.

Until 1999, the business of insurance in India was the exclusive privilege of two states -

owned corporations – the Life Insurance Corporation of India (LIC) and the General

Insurance Corporation (GIC).

The government of India took a major step towards liberalization of this industry in

March 2000 and brought into effect of the Insurance Regulatory Development Authority

Act (IRDA Act). The IRDA Act opened the market by doing away with all entry – level

restrictions on private insurers. There after, it has been five years consistent growth.

While 80% of population remains without life insurance and some of the world’s

lowest health and non – life insurance cover levels, the potential of the words seventh

largest and second most populous country cannot be overlooked.

Dept of management science MES College of Engineering

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Prospective insurers have lot to gain from the, 312 million middle – class consumers

in India, who have financial ability to purchase insurance. With only 2.5% of the country

insurable population currently insured, the market still need to be tapped effectively.

INTRODUCTION TO THE 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. 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).

The success of the company will be founded in its unflinching commitment to 5 core

values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the

values describes what the company stands for, the qualities of our people and the way we

work.

We do believe that we are on the threshold of an exciting new opportunity, where we can

play a significant role in redefining and reshaping the sector. Given the quality of our

parentage and the commitment of our team, there are no limits to our growth.

RELEVANCE OF THE STUDY

The study has been made with the intention to analyze the “perception of public

towards insurance policies”.

Many may not be aware that the life insurance industry of India is as old as it is in

any other part of the world The Malhotra Committee recommended throwing open the

sector to private Players to usher competition and bring more choice to the consumer.

In India about 200 million middle class households, presents a huge untapped

potential for players in the insurance industry Saturation of markets in many developed


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

with the per capita income in India expected to grow at over 6% for the next 10 years and

with improvement in awareness levels, the demand for insurance is expected to grow at an

attractive rate in India.

The Monitor Group has estimated that the life insurance market will grow from

Rs.218 billion in 1998 to Rs. 1003 billion by 2008 (a compounded annual growth of

16.5%). Life insurance companies focusing on rural markets have adopted innovative means

of distribution.

Instead of appointing agents as is done typically, they have used innovative methods

to promoted life insurance and appoints sales executives to act as their sales arm. This

enabled them to tap into their special knowledge. India has the highest number of life

insurance policies in force in the world. This makes me to think about doing the project in

Financial Marketing sector especially in Insurance, in my study I wish to find out these facts

regarding money for the security purpose.

NEED OF THE STUDY

The study was held at ICICI Prudential Life Insurance, Kollam to know the

perception of people towards insurance. This study helps the researcher to know the overall

view of insurance in people

ICICI Prudential Life Insurance provides various types of insurance products and

services. The company wishes to expand their business and their services for increasing

sales. Most of the peoples have savings but they are not aware about insurance benefits and

its various schemes. So the researcher’s intention is to find out remedies for creating better

sales. This research analyzes the perceptions and preferences of the public which helps them

to gain competitive advantage over their competitors.


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OBJECTIVES OF THE STUDY

To study the perception of public towards insurance policies in Kollam District.

To study the investment policies of the people in Kollam District.

To understand the value for investment in future.

To identify how many people are aware about insurance and investment.

To provide suggestion to the company.

LIMITATIONS OF THE STUDY

The present study is based on the data’s collected from Kollam so its results may not

be applicable to other areas.

Convenience sampling was used so all the limitations pertaining to this may also

became a part in the findings of this study.

At times the question had to be explained to the respondents due to their ignorance

that could have influenced their views.

The time span was the another constraint, for the preparation of the questionnaire lot

of study and consultation were required, so that it could be presented in such a way

that could be acceptable to the respondent.


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INSURANCE SECTOR

The insurance industry worldwide faces challenges in terms of acts of terrorism,

hardening of reinsurance rates and changing global risk architecture. The opening up of the

Insurance sector to private players has led to the introduction of a number of new products

and the Indian market is one of the fastest growing insurance markets.

Insurance business in India is growing at the rate of 15-20%annually and IRDA

has estimated that it is currently of the order of Rs.812.50 cr.5 when combined with banking

services, it adds about 7% of the country’s GDP.Insurance penetration (i.e., Premiums as

percentage of GDP) has increased from 2032% in 2000 to 2.88% in 2003. Like wise,

insurance density (i.e., premium per capita) has increased from Rs.435.897 in 2000 to

Rs.722.092 in (2003)

In line with the economic reforms that were ushered in India in early nineties, the

Government set up a Committee on Reforms (popularly called The Malhotra Committee)

in April 1993 to suggest reforms in the insurance sector. The Committee recommended

throwing open the sector to private player to usher in competition and bring more choice to

the consumer. The objective was to improve the penetration of insurance as a percentage of

GDP, which remains low in India even compared to some developing countries in Asia.

Reforms were initiated with the passage of Insurance Regulatory and Development

Authority (IRDA) Bill in1999. IRDA was set up as independent regulatory authority, which

has put in place regulations in line with global norms.

The state-owned life insurer-LIC, along with 13 private players, mopped up Rs.

65.22 bn in premium in the first four months of this fiscal by selling about 62lakh new

policies. And 55lakh new policies have been sold by LIC alone which helped it to make an

8.74% rise in premium income at Rs.49.7 bn during April-July, this fiscal.

The entry of many of the global insurance into the Indian market is the form of

joint ventures with Indian companies. Some of the key names are Prudential, AIG, New

York Life, Allianz, Standard life, Sun Life Canada and Old Mutual.


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The entry of new players has rejuvenated the erstwhile monopoly player LIC, which has

responded to the competition in an admirable fashion by launching new products and

improving service standards.

The new life insurance companies are concentrating on term life policies in the

hope that this will be their main stream of business. Private players have an average policy

size of Rs.1, 15877,000. The 13 private players have increased their market share to 23.81%

from 17.28% in 2004. In the fore front is ICICI Prudential with a market share of 7.12%

marketing a 49% growth in business at Rs. 4.64bn.Then comes, BajajAllianz, HDFC

Standard, Tata AIG, Birla Sunlife, Max New York and Aviva.

The following are the key winds of change brought about by privatization.

Market expansion: There has been an overall expansion in the market. This has been

possible due to improved awareness levels thanks to the large number of advertising

campaigns launched by all the players. The scope for expansion is till unlimited as virtually

all the players are concentrating on large cities and towns-expect by LIC to an extent there

was no significant attempt to tap the rural markets.

New Product Offerings: There has been a plethora of new and innovative product offered

by the new players, mainly from the stable of their international partners. Customers have

tremendous choice from a large variety of products from pure term (risk) insurance to unit-

linked investment products. Customers are offered unbundled products with a variety of

benefits as riders from which they can choose. More customers are buying products and

services based on their true needs and not just traditional money back policies, which is not

considered very appropriate for long-term protection and savings. However, there are till

some key new products yet to be introduced –e.g. health products.

Customer Service: Not unexpectedly, this was one area that witnessed the most significant

change with the entry of new players.


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There is an attempt to bring in international best practices in service and operational

efficiency through use of latest technologies. Advice and need based selling is emerging

through much better trained sales force and advisors. There is improvement in response and

turnaround times in specific areas such as delivery of policy receipt, policy document,

premium notice, final maturity payment, settlement of claims etc. However, there is a long

way to go and various customer surveys indicate that the standards are still below customer

expectation levels.

Channels of Distribution: Till four years back, the only mode of distribution of life

insurance products was through Agents. While agents continue to be the predominant

distribution channel, today a number of innovative alternative channels are being offered to

consumers. Some of them are banc assurance, brokers, the internet and direct marketing.

Through it is too early to predict, the wide spread of bank branch network in India

could lead to banc assurance emerging as a significant distribution mechanism. The low

penetration can be explained in terms of non-emphasis on customer awareness, training

issues of agent and a low tax base. An increased penetration of the insurance market is

possible due to emerging socio economic changes, education and awareness of insurance

needs. The industry is set to emerge independents of the normal driving factor of being

driven by tax incentives for growth. The entry of new players would increase the insurance

density (premium per capita) and the insurance penetration (expenditure for insurance

services expressed as a percentage of income). The regulations pertaining to brokers and

corporate agents are expected to result in the spread of the level of insurance penetration in

India.

Indian customers perceive value in tax benefit and saving whereas world wide,

insurance is used as a risk cover instrument. For most insurers today, customer service

occupies the highest priority. Some insurers have also taken up customer relationship

management projects for their customer service centers. With the Insurance industry

emerging as a buyer’s market, providing quality customer service is crucial and IT would

play a vital role in doing this.


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The heavy capital investment in terms of the distribution networks, hiring of agents

and the long gestation periods of 7-10 years provide entry barriers for the industry.

The key industry drivers are related to lifestyle issues in terms of perceiving

insurance as a savings instrument rather than for risk cover, need based selling, quality of

service and customer awareness.

The future growth areas could be term assurance, pension and health insurance. In

terms of the distribution channels, there is tremendous opportunity with banks and finance

companies and by making the channel IT driven. With increased commoditization of

insurance products, brand building is going to play a vital role.

A brief history of the Insurance sector

The business of life insurance in India in its existing from started in India in the year

1818 with the establishment of the Oriental life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute

to regulate the life insurance business.

1928: The Indian Insurance 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.

1956:245Indian and foreign insurers and provident societies taken over by

the central government and nationalized. LIC formed by an Act of

Parliament, viz. LIC Act,

1956, with a capital contribution of Rs.5crore from the Government of India.


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The General insurance business in India, on the hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the years 1850

in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd .set up, the first company to

transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Associations of

India, fames a code of conduct for ensuring fair conduct and sound business

practices.

1968: The Insuring Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st

January 1973.

107 insurers amalgamated and grouped into four companies’ viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance

Company Ltd. and the United India Insures Company Ltd. GIC incorporated as a company.

The Malhotra committee was set up with the objective of complementing the

reforms initiated in the financial sector. The reforms were aimed at “creating a more

efficient and competitive financial system suitable for the requirements of the economy

keeping in mind the structural changes currently and recognizing that insurance is an

important part of the overall financial system where it was necessary to address the need for

similar reforms…”In 1994, the committee submitted the report and some of the key

recommendations Included:


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i) Structure

Government stake in the insurance Companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that

these Subsidiaries can act as independent corporations

All the insurance companies should be give grater freedom to operate

ii) Competition

Private Companies with a minimum paid up capital of Rs.Ibn should be

allowed to enter the industry

No Company should deal in both Life and General Insurance through a

single entity

Foreign companies may be allowed to enter the industry in collaboration

with the domestic companies

Postal life Insurance should be allowed to operate in the rural market

Only one State Level Life Insurance Company should be allowed to operate

in each state.

iii) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

Controller of Insurance (Currently a part from the Finance Ministry) should

be made independent

iv)Investment

Mandatory Investments of LIC Life fund in government securities to be

reduced From 75%to50%

GIC and its subsidiaries are not to hold more than 5% in any company (there

Current holdings to brought down to this level over a period of time).


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v) Customer Service

LIC should pay interest on delays on delays in payments beyond 30days

Insurance companies must be encouraged to set up unit linked pension plans

Computerization of operations and updating of technology to be carried out

in the Insurance industry

The committee emphasized that in order to improve the customer services and

increase the coverage of the insurance industry should be opened up to competition. But at

the same time, the committee felt the need to exercise caution as any failure on the part of

new players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulated the

minimum capital requirement of Rs.100 crores. The committee felt the need to provided

greater autonomy to insurance companies in order to improve their performance and enable

them to act as independent companies with economic motives. For this purpose, it had

proposed setting up an independents regulators body.

The Insurance Regulatory and Development Authority (IRDA)

In 1999, the IRDS was set up under the IRDA Act. Companies, aspiring to carry on

insurance and reinsurance business in India, are required with IRDA, which is the sole

authority for granting license to agents. There is neither a restriction on the license numbers

that may be granted nor a system of composite license for life and non-life insurance

companies in India. Insurance companies are strictly forbidden from dealing with products

beyond their scope of license. This implies that, a life insurance company can not sell non-

life insurance and vice versa. Insurance agents are, however, allowed to sell both life and

non-life products (composite insurance).

In tune with the Indian government’s system of checks and balance imposed through

sector specific Foreign Direct Investment (FDI) IRDA prohibits 100% foreign ownership of

an Indian insurance company.


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An Indian promoter is required to invest either wholly or team up with a foreign

insure, which can own no more than 26% of the shares in any new venture. The Indian

promoter must then sell the majority of his shares to the Indian public through a public

offering after 10 years and retain only up to 26% of the shares that is, the same percentage

as that of the foreign investor.

IRDA careful in granting licenses and has set up strict standards for all aspects of

insurance in India. With the limit on FDI in the sector, the government ensures that state run

agencies such as the LIC and GIC can maintain their prominence.

In June 2003, the law Commission prepared a paper identifying 13 potential grounds

of revision to the Insurance Act and the IRDA Act including merger of relevant provisions

of the two acts, as well as harmonization of the Insurance Act with other rules and

regulations in the sector. The finance ministry is already working towards comprehensive

amendments to the Insurance Act and the IRDA Act, which will further simplify procedural

issues. A major indication of the government’s efforts to invite Private Indian and foreign

insures to invest in the liberalized market is the FDI cap hike announced by the finance

ministry in 2004. These changes, however, require formal amendments to the IRDA Act,

which are still to be adopted.


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THE 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. 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's equity base stands at Rs. 11.85 billion with ICICI Bank and

Prudential plc holding 74% and 26% stake respectively. In 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. The company has a network

of about 56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For

the past four years, ICICI Prudential has retained its position as the No. 1 private life

insurer in the country, with a wide range of flexible products that meet the needs of the

Indian customer at every step in life.

Vision:

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

world-class people and service.

This we hope to achieve by:

Understanding the needs of customers and offering them superior products and

service

Leveraging technology to service customers quickly, efficiently and conveniently

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our employees

And above all, building transparency in all our dealings.


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PRODUCTS

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric

products that meet the needs of customers at every life stage. Its products can be enhanced

with up to 4 riders, to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

CashPlus is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

Save’n’Protect is a traditional endowment savings plan that offers life protection

along with adequate returns.

CashBak is an anticipated endowment policy ideal for meeting milestone expenses

like a child’s marriage, expenses for a child’s higher education or purchase of an

asset. It is available for terms of 15 and 20 years.

LifeTime Super & LifeTime Plus are unit-linked plans that offer customers the

flexibility and control to customize the policy to meet the changing needs at

different life stages. Each offer 4 fund options? Preserver, Protector, Balancer and

Maximiser.

LifeLink Super is a single premium unit linked insurance Plan which combines life

insurance cover with the opportunity to stay invested in the stock market.

Premier Life Gold is a limited premium paying plan specially structured for long-

term wealth creation.

InvestShield Life New is a unit linked plan that provides premium guarantee on the

invested premiums and ensures that the customer receives only the benefits of fund

appreciation without any of the risks of depreciation.

InvestShield Cashbak is a unit linked plan that provides premium guarantee on the

invested premiums along with flexible liquidity options.


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Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It is

available in 3 options? level term assurance, level term assurance with return of

premium and single premium.

HomeAssure is a mortgage reducing term assurance plan designed specifically to

help customers cover their home loans in a simple and cost-effective manner.

Child Plans

Education insurance under the SmartKid brand provides guaranteed educational

benefits to a child along with life insurance cover for the parent who purchases the policy.

The policy is designed to provide money at important milestones in the child’s life.

SmartKid plans are also available in unit-linked form? Both single premium and regular

premium

Retirement Solutions

ForeverLife is a traditional retirement product that offers guaranteed returns for the

first 4 years and then declares bonuses annually.

LifeTime Super Pension is a regular premium unit linked pension plan that helps

one accumulate over the long term and offers an annuity option (guaranteed income

for life) at the time of retirement.

LifeLink Super Pension is a single premium unit linked pension plan.

Health Solution

Health Assure and Health Assure Plus: Health Assure is a regular premium plan

which provides long term cover against 6 critical illnesses by providing policyholder

with financial assistance, irrespective of the actual medical expenses. Health Assure

Plus offers the added advantage of an equivalent life insurance cover

Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as

well as at different stages in the treatment of various cancer conditions.


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Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to

enhance benefits to their employees.

Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their

statutory gratuity obligation in a scientific manner. The plan can also be customized

to structure schemes that can provide benefits beyond the statutory obligations.

Group Superannuation Plan: ICICI Pru offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimize returns for the members of the trust and rationalize the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.

Group Immediate Annuities: In addition to the annuities offered to existing

superannuation customers, we offer immediate annuities to superannuation funds not

managed by us.

Group Term Plan: ICICI Pru’s flexible group term solution helps provide

affordable cover to members of a group. The cover could be uniform or based on

designation/rank or a multiple of salary. The benefit under the policy is paid to the

beneficiary nominated by the member on his/her death.

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to the basic policy at a

marginal cost, depending on the specific needs of the customer.

Accident & disability benefit: If death occurs as the result of an accident during the term

of the policy, the beneficiary receives an additional amount equal to the rider sum assured

under the policy. If the death occurs while traveling in an authorized mass transport vehicle,

the beneficiary will be entitled to twice the sum assured as additional benefits.

Critical Illness Benefit: protects the insured against financial loss in the event

of 9 specified critical illnesses. Benefits are payable to the insured for medical

expenses prior to death.


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Income Benefit: This rider pays the 10% of the sum assured to the nominee

every year, till maturity, in the event of the death of the life assured. It is

available on SmarKid and CashPlus

Waiver of Premium: In case of total and permanent disability due to an

accident, the future premiums continue to be paid by the company till the time of

maturity. This rider is available with LifeTime Super, LifeTime Super Pension

and CashPlus.

ABOUT THE PROMOTERS

ICICI Bank

ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector

bank with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on

30th June, 2005. ICICI Bank offers a wide range of banking products and financial services

to corporate and retail customers through a variety of delivery channels and through its

specialized subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management. ICICI Bank is a leading player in the retail

banking market and has over 13 million retail customer accounts. The Bank has a network

of over 570 branches and extension counters, and 2,000 ATMs.

Prudentialplc

Established in London in 1848, Prudential plc, through its businesses in the UK and

Europe, the US and Asia, provides retail financial services products and services to more

than 16 million customers, policyholders and unit holders worldwide. As of June 30, 2004,

the company had over US$300 billion in funds under management.

Prudential has brought to market an integrated range of financial services products

that now includes life assurance, pensions, mutual funds, banking, investment management

and general insurance.


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In Asia, Prudential is the leading European life insurance company with a vast

network of 24 life and mutual fund operations in twelve countries - China, Hong Kong,

India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and

Vietnam.

Indian Insurance Industry Forecast (2007-2009)

The market research report “Indian Insurance Industry Forecast (2007-2009)” by

RNCOS gives an in-depth analysis of the present and future of the Indian Insurance

Industry. The market research report looks in to the details as well as gives an overview of

the Indian insurance market with focus on the performance of the key players.

With the initiation of the deregulation in the Indian insurance market, the

monopoly of big public sector companies in life insurance as well as general (non-life

insurance) market has been broken. New private players have entered the market and with

their innovative approaches and better use of distribution channels and technology, they are

eating in to the shares of established public sector companies in Indian Insurance Market.

Since the deregulation has been put in to place, the market share of LIC has come

down to 71.4% in life insurance market while the private players have captured around 17%

market in the general insurance segment having said that, public sector insurance companies

such as LIC and New India Assurance are registered impressive double-digit growths,

which reflects on the overall health of the Indian insurance sector.

This report includes the key private players in the insurance market such as ICICI

Prudential, Bajaj Allianz, Birla Sun life, ICICI Lombard and TATA AIG. It also includes

the leading competitors in the life insurance and general insurance segments along with

their market shares.

Key Highlights and scope of the RNCOS "Indian Insurance Industry Forecast (2007-

2009)" Report:

§ Global insurance industry scenario

§ Indian insurance industry in global perspective


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§ Analysis of market performance of key players with charts and graphs, forecast and

opportunity and challenges faced by the players in Indian insurance industry

§ Recent trends and developments in insurance market in India.

§ Key driving forces in Indian insurance industry

Report features:

The report “Indian Insurance Industry Forecast (2007-2009)” by RNCOS gives an

insight in to the emerging trends and the future forecasts. There are different aspects that

this report discusses in detail. Chapter 1 covers the global insurance industry scenario.

Chapter 2 puts India in perspective with the global standards in world insurance industry.

Chapter 2 also discusses the Indian insurance industry in historical perspective so as to set

the tone for the present analysis. Chapter 3 discusses the market segments and the product

segments in the Indian insurance industry. It also analyses the current market performance

of the insurance industry. Chapter 4 and 5 discusses the future forecast and Regulatory

framework for Indian Insurance Industry. Discussion of the major driving forces, emerging

trends and developments and key challenges is given in chapter 6, 7 and 8 respectively and

finally the chapter 9 gives detailed information about the key players in Indian insurance

industry.


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PERCEPTION

Perception is a cognitive process of seeing, receiving, selecting, organizing,

interpreting and giving meaning to the environment around us.

According to Stephen p. Robins Perception as “a process by which

individuals organize and interpret their sensory impressions in order to give meaning to

their environment”

Two types of factors influence an individual’s perception. The internal

factors include individual’s needs and desires, personality, experience, etc. External factors

relate to what is to be perceived and situation. These are size, intensity, frequency, status,

etc.

Perception being a cognitive process is susceptible to distortions.

Nonetheless, attempts made to perceive oneself accurately, improve self-concept, be

empathetic, have positive attitudes avoid the common perpetual distortions and

communicate openly help improve ones perpetual ability.

INSURANCE

Insurance is a contact between two parties whereby one party called insurer

undertakes in exchange for a fixed sum called premiums, to pay the other party called

insured a fixed amount of money on the occurrence of a certain event.

Insurance provides protection against financial loss that could arise due to

the occurrence of an unexpected event. The loss to the insurer is paid from the premiums

collected from him and other insurer by the insurance company.

Insurance has been classified into:

Life Insurance

Begun in 1818, with the establishment of the Oriental Life insurance

Company in Calcutta the business of life insurance in India has come along way. The most

popular products in this sector are ‘Endowment’ and ‘Money Back’ policies. More than

80% of the Indian life insurance business comes from these two products.


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The major Players in the field include:

* Birla sun Life Insurance Co.Ltd. * DaburCCU Life Insurance Company

Pvt.Ltd.

* Bajaj Allianz Life insurance Co.Ltd. * ICICI Prudential Life Insurance

Co.Ltd.

* MetLife India Insurance Co.Pvt.Ltd. * ING Vysya Life Insurance

Co.Pvt.Ltd.

* Life Insurance Corporation of India * Max New York Life Insurance

Co.Ltd.

* Om Kotak Mahindra Life insurance Co.Ltd. * SBI Life Insurance Co.Ltd.

* HDFC Standard Life Insurance Co.Ltd. * Tata AIG Life Insurance Co.Ltd.

* Reliance Life Insurance Co.Ltd

General Insurance or Non-Life insurance

The non-life sector primarily consists of fire and miscellaneous risk insurance

policies. Also, since motor vehicle cover is compulsory in India, it acts as another chief

source of business in the non-life sector.

Major players in the non-life sector in India include:

Allianz Bajaj General insurance Co.Ltd.

ICICI Lombard General Insurance

IFFCO Tokyo General Insurance

Reliance General Insurance

Royal Sundaram Alliance Insurance

The government of India has made certain insurance contracts compulsory buy

legislation such as the Motor Vehicles Act and the Environmental Protection Act. Insurance

in India is provided through Public Sector Insurance Companies such as the Life Insurance


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Corporation of India (LIC), the General Insurance Corporation of India and its four

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

Insurance Company and United India Insurance Company. The passage of the IRDA Bill in

1999 has enabled private sector to carry out insurance business.

Life Insurance

Life insurance can be divided into two categories depending on the

requirement of the insurer. The first category is determined on the basis of premium paying

tenure and payment of maturity proceeded while the other is on the of target audience.

Insurance determined on the basis of premium paying tenure and payment of

maturity proceeds can be categorized into

Whole Life Assurance Plans

Term Assurance Plans

Annuities

* Whole Life Assurance Plan

Whole life insurance policies provide insurance cover to an insured person during

his lifetime but the benefits pass on to the nominees. This policy can be availed in the form

of limited term payment or whole life payment or through a single premium payment. It is a

low cost insurance option and offers good value to the policyholders. A variant of this

policy is the limited premium payment term policy that provides the assured person to pay

premium during his years and enjoy the cover thereafter. Single premium and double

premium are the new variants of limited period whole life plans.

* Endowment Plans


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Since the Person paying premium in Whole Life Plan could never benefit from the

proceeds of the policy, endowment type policy plans were introduced. These policies

provide both an insurance cover and serve as a saving tool. Insurance cover is provided over

the period for which the premium is paid. This, not only provides benefits to the insure but

also provides insurance cover over the specified time period.

With the lapse of the policy period, the insurer is refunded the amount assured along

with any bonus, if the policy is a with-profits plan. To overcome the drawback of

endowment plans that required premium s to be paid for long periods, Money Back Plan

were introduced. The survivor in this case is provided the benefits paid at regular intervals

at the end of each assurance period.

* Annuity Plans

These are assurance plans that provide specific sums at regular intervals during the

lifetime of the insurer. Annuity plans are targeted to those persons, who after retirement do

not have a regular source of income. The annuity holder pays a lump sum to the annuity

provider and can avail fixed or rising annuity that increases every year depending on interest

or inflation rates. There are a few annuity options that work in combination with an

insurance plan, mainly with endowment type plans. Typically, annuity plans do not return

the seed capital back to persons or nominees purchasing the annuity. Annuity can either be

perpetual or for a fixed time period.

GENARAL INSURANCE

General insurance has been divided into:

Fire Insurance

Marine Insurance

Miscellaneous (Accident) Insurance

General insurance has also been classified into:


-23-


a) Insurance of Person

b) Insurance of Property

c) Insurance of Interest

d) Insurance of Liability

Insurance of Person: This type of insurance involves personal accident

insurance and personal accident and sickness insurance.

Insurance of Property: Product s including motor vehicles, aircraft,

steamers, cycles, furniture, fittings, jewelry, household item, machinery,

goods in transit, stocks of business men etc.can be categorized under the

head, “property” and are eligible for fire insurance, marine hull insurance,

marine hull insurance, marine cargo insurance, engineering insurance, crop

insurance and aviation insurance.

Insurance of Interest: Insurance of interest generally involves fidelity

guarantee insurance and guarantee insurance.

Insurance of Liability: These of liabilities include third party insurance

liability insurance and professional indemnities.


-24-


Literature review

POSITIONING OF INSURANCE

Needs-based Positioning

This is the most commonly understood positioning and based on the differing needs

of different group of consumers. This can be done successfully is a company has unique

strengths to service a group of customer need better than others.

Access-based Positioning

Positioning of customers can also be done by the way they are accessible. That is

different groups of customers may be accessible in different ways even though they may

have similar needs. Access is typically a function of customer geography or customer scale.

Assure security and growth based positioning

Safety and security based positioning

For children’s education and marriage positioning

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

assets. Every asset has a value. The owner of the assets may suffer a huge loss in case the

asset is lost or damaged because of an uncertain event. Insurance is aimed at compensating

the financial loss suffered on the happening of an insured event. Insurance cannot prevent

the happening of the event; however it can protect a person from the financial losses he may

suffer after the happening of the event.

The insurance is broadly classified as,

a) Life Insurance

b) Non-life insurance or General Insurance.

LIFE INSURANCE

Life insurance is a contract that pledges payment of an amount to the person assured

(or his nominee) on the happening of the event insured against.


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The contract is valid for payment of the insured amount during:

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

J Rajesh C Jampala and B Venkiteswara Rao( insurance marketing ,April 2005)

in his article “Sales promotion in Insurance sector (A study of LIC) asserts that, sales

promotion helps in maximizing sales volume and value besides keeping competitors at bay.

Sales promotion is generally broken into 3 major categories such as consumer oriented,

trade oriented and sales force oriented activities.

The consumer oriented promotions are a part of the promotional pull strategy. These

promotions include tax benefits, payment of bonus, provision of accidental benefits and

higher non medical limits. Tax benefit is one of the major weapons in the arsenal of

strategies at the disposal of the corporation to promote sales. The tax saving measure is the

greatest mobilize for business for the corporation. Even the Indian consumer has

traditionally looked at life insurance as an instrument for tax saving, rather than as a prudent

investment decision, or even as a protection device. Another important consumer oriented

promotion of LIC is provision of accident and disability benefits offered to the insured.

Trade promotional measures of LIC include salary saving scheme besides bringing

more occupations under insurance cover, including hazardous occupations. Salary saving

scheme is a very successful trade promotion strategy launched by the corporation to tap

business from the salaried class. LIC makes an arrangement with the employer to deduct the

insurance premium from the employee’s salary and remit it to the corporation. The basic

advantage that the corporation waives 5% additional charge on the scheme, resulting in a

great benefit to the policy holders.


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Sales force promotions offer incentives to agents to work with more and more vigor.

Sales force promotion steps of the LIC include commission, gifts, advances for the purchase

of the cars, club memberships etc. LIC has instituted a system of club membership for its

agents. The club membership also enjoys certain privileges such as telephone, provision of

stationery, secretarial allowance, concessional loans etc. However sales promotion alone

cannot achieve the results for the corporation.

(Source: Insurance chronicle, The ICFAI University Press, April 2006)

Walter de Oude and Rajagopalan Krishnamurthy (health insurance, Feb 2006)

in their article “The health insurance industry in India & its growing potential” emphasis

that ensuring public health is the principal responsibility lay down by the Indian

constitution. The central government provides about 15% of the funding needs mostly for

national health programs. The family planning and healthcare initiatives of the government

have so far effective in reducing birthrates and improving mortality rates. According to the

WHO report published in 2002 India ranked 13th from the bottom in terms of public

spending on health.

Although India’s public spending is low, overall health spending improved due to

higher private spending. Currently less than 15% of the Indian population has some kind of

health insurance cover.

Health insurance remains vastly underdeveloped in India. The state owned

companies had little focus upon the developing line of business on a systematic and

profitable basis. The health portfolio that had a loss ratio of about 78% in 2003 deteriorated

to 98% in the following year.

Anyway the Third Party Agreement (TPA) has however given rights to some tension

between the healthcare providers and the health insurance companies.

(Source: Insurance Chronicle The ICFAI University Press -Feb 2006)


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Jack Burke (Insurance marketing, July 2004) in his article “CROSS

SELLING”emphasis that people depend on insurance agents or brokers for the selection of

and buying of policies related to life, health, automobiles etc. but it has been found that

most agents or brokers specialize in selling policies related only to particular field. The

statistics showed that the average American had 7.2 insurance policies i.e., selling more

than one policy to their client. This can be specified as cross selling or multiline marketing.

More policies per client mean lower acquisition cost, higher client retention and greater

profit.

(Source: Insurance chronicle The ICFAI University Press, July-2005)

A.Srujan (Insurance marketing July 2004) in his article “Rural insurance market in

India” States that the growth in the insurance sector is higher than the GDP growth rate of

the country. A careful analysis of postal liberalization period suggest that new insurance

players made a good start while the existing one maintained consistent growth level. The

two segments of Indian insurance market i.e., Urban and Rural have their own characteristic

features. The economic growth of the two has not been the same. But there is a fact that

most of the new insurance companies started operating from metros and urban. So they got

more opportunity to cover by several types of insurance. Moreover due to the better

educational status they got awareness about several financial and insurance products. Still

there are many opportunities in rural insurance market.

Gigantic population, growth in income level of rural population, high saving habits

etc. are some plus areas and if we exploit these areas, there in a very good scope for the

growth. Government of India makes steps to improve the conditions of the rural area.

Janasree Bima Yojna, LALGI etc. are some examples. Government made a tie with LIC and

made several scheme for rural people like Siksha Sahayog Yojna, Krishi Shrimik Samajik

suraksha Yojna etc. Anyway it is the opportunities not compulsions which would drive the

old and new players to rural India and the outcome will be steady and secured economic

growth.


-28-


(Source: The ICFAI University Press, July-2004)

Rachana Parihar (Insurance marketing, july2004) in her article “Bancassurance:

challenges & opportunities in India” emphasis that Bancassurance symbolizes the

convergence of banking & insurance. The term involves distribution of insurance products

through a bank’s branch work. While the bancassurance has become a successful story in

Europe, it is relatively a new concept in Asia. The motive behind this also varies. For banks,

it is a means of product diversification & a source of additional fee income. Insurance

companies see it as a tool for increasing their market penetration and premium turnover.

The customer sees it as a bonanza in terms of reduced price, high quality products and

delivery at the doorsteps. But, when we think

about India there is a huge pool of skilled professionals whether it is banks or insurance

companies who may be easily relocated for any bancassurance venture.

Most large retail banks engender a greater deal of trust in broad segments of

consumers, which they can leverage in selling them personal line insurance Products.

Another advantage banks have over traditional insurance distributors is the lower cost per

sales lead made possible by their sizable and loyal customer base. Banks also enjoy

significant brand awareness within their geographical regions. Banks proficiency in using

Technology has resulted in improvement in transaction processing and customer service.

But there are also some short comings. The most obstacles to success are the poor human

resource management, lack of sales culture within the bank, no involvements by the branch

manager, insufficient product promotions etc.

Anyway to move beyond products oriented cross selling to customer focused

crossed buying requires a holistic approach to bancassurance. Success of a bancassurance

requires change in approach, thinking and work culture on the part of everybody involved.

(Source: The ICFAI University Press, July-2004)


-29-


Brian D Baetz (Insurance marketing, July 2003) in his article “Term insurance

sales techniques” States that today people need term insurance more than ever, so one

should learn to be efficient in its sale. Term insurance enables even those people who could

otherwise not be able to afford a sufficient amount of life insurance, to ensure that their

family will not suffer financially should they die.

He says that he point out to clients the importance of adequate coverage to protect

their families. If their income permits, he encourages them to make a coverage permanent

life insurance.

Scott Menta, ChFC,CFP,CLU, a Met Life agent from Elmsford,NYbelieves term

insurance will continue to be sold as a commodity unless the producer can demonstrate that

he /she delivers additional value . He works to help buyers understand the products

convertibility period, and the kinds of permanent products to which their term insurance can

be converted. He believes producers should recommend the appropriate amount of

coverage.


-30-


RESEARCH METHODOLOGY

Introduction:

Research: - Research is defined as a careful, critical inquiry or examination in seeking

facts or principles; diligent investigation in order to ascertain something. Research is

essentially a systematic enquiry seeking facts through objective verifiable methods in order

to discover the relationship among them and to deduce from the board principles or laws. It

is really a method of critical thinking.

RESEARCH PROBLEM

The insurance industry is highly competitive in nature today. Many players are

finding through their customers for their different schemes. In this scenario, the companies

need to know what the customers ask for and their needs time to time. For this they are

doing regular researches and studies on the changing customer perceptions. This research

analyze the perceptions and preferences of the public which helps them to gain competitive

advantage over their competitors

RESEARCH DESIGN

Research Design: - A researcher attempting to conduct a study should necessarily prepare a

plan which will help him to attain his ultimate aim. This plan is the research design. It is a

plan for the collection and analysis of data. Research Design can be defined as the planned

sequence of the entire process involved in conducting a research study. In this project work,

the research design used is descriptive researcher

TYPE OF RESEARCH

Descriptive research:

This study follows descriptive research method. A descriptive study involves

formulating the objective of the study, defining the population and selecting the sample,


-31-


designing the methods of data collection and analysis of the data and results. Descriptive

studies aim at portraying accurately the characteristics of a particular group or situation.

A Descriptive study may be concerned with the attitudes or views (of a people) towards

anything.

RESEARCH METHODOLOGY

Research methodology deals with the objective of a research study, the method of

defining the research problem, the type of hypothesis formulated the type of data collected,

methods used for collecting and analyzing the data etc. Methodology includes the collection

of primary data and secondary data.

Research methodology may be defined as the procedure by which researchers go

about their work of describing, explaining and predicting phenomena. It deals with the

cognitive processes imposed in research by the problems arising from the nature of its

subject matter. Research Methodology is the description, explanation and justification of

various methods of conducting research.

DATA COLLECTION METHOD

SOURCE OF DATA

Source of data used for the study can be classified into

(A) Primary source

(B) Secondary source

(A) PRIMARY SOURCE

Primary data are first hand information and are collected from various sources like:

* Informal interviews

* Through Structured questionnaire


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* Observation

(B) SECONDARY SOURCE

The secondary source consists of readily available data’s and is already

compiled statistical statements and reports.

Secondary data’s are collected from;

Business Magazines

Internet

Annual reports

Journals

TOOLS FOR THE ANALYSIS OF DATA

The analysis of data requires advance planning of the research design. The advance

planning may cover such aspect as categorization of variable and preparation of dummy

tables. The data processing consists of the number of closing related operations like.

1. Editing

2. Classification and coding

3. Transcription

4. Tabulation

In this project researcher used simple averages and percentages for the analysis of the data.

Sampling method

Convenient sampling was used to collect data from the sample. A sample, as the

name implies, is a smaller representation of a large as whole. In other words a selection of


-33-


the population selected from the latter in such a way that they rare representative of the

universe is called sample.

A single member of a population is referred to as population element. When some

of the elements are selected with the intention of finding out something about the population

from which they are taken, that group of elements is referred as a sample and the process of

selection is called sampling.

Sample size:

The sample consisted of 150 respondents in various parts of Kollam District

Population:

Population refers to the total of items about which information is derived. Population of

the study consisted of peoples in various parts of Kollam District; the researcher met the

various peoples as per the reference given by the organization

Sampling unit:

The sampling unit consisted of various peoples in Kollam District

Area of the study:

The study was conducted in various parts of Kollam District

Time period of study:

The study was conducted for a period of one month


-34-



-35-


1. Number of people who believe in money planning

Table No: 1

Sl.No Particulars No. of Respondents %

1 Yes 150 100%

2 No 0 0%

3 Total 150 100%

Source: Primary data

Chart No: 1

Interpretation

From the information it is found that all respondents believe in money planning and

they referred that respondents cannot live with out proper money planning.


-36-


2. Types of money planning

Table No: 2

Sl.No Particulars No. of Respondents %

1 Saving 63 42%

2 Fixed Deposits 36 24%

3 PPF 14 9%

4 Stocks-Debentures 10 7%

5 Others 27 18%

6 Total 150 100


Chart No: 2

%

0%

10%

20%

30%

40%

50%

Saving Fixed Deposits PPF Stocks-Debentures

Others

%

Interpretation

From the above information it is found that most of the respondents prefer savings

as a method for money planning and only a few have Stock, Debentures and PPF.


-37-


3. People who have money planning for their retirement

Table No: 3

Sl.No Particulars No.Of Respondents %

1 Yes 104 69%

2 No 46 31%

3 Total 150 100%


Chart No: 3

Interpretation

From the above illustration it is found that most of them have money planning for

their retirement. The government employees and have to contribute a part of their salary to

PPF and many people are bothered about their retirement life. Rest of others is not bothered

about money planning for their retirement.


-38-


4. Various ways of investment that people do to protect their income after

retirement

Table No: 4

Sl.No Particulars No. Of Response %

1 Monthly income scheme 20 13%

2 Savings 59 39%

3 Bank 14 9%

4 PPF 22 15%

5 Stock or Debenture 4 3%

6 Post office 28 19%

7 Don’t know 3 2%

8 Total 150 100


Chart No: 4

%

0%

10%

20%

30%

40%

50%

Monthlyincomescheme

Savings Bank PPF Stock orDebenture

Post off ice Don’t know

%

Interpretation

From the above information it is found that larger portion of the respondents invest

in savings account.


-39-


5. People arrange cash in case of critical illness/emergencies/accidents

Table No: 5


1 Medical insurance 48 32%

2 Relative and friends 89 59%

3 Don’t know 13 9%

4 Total 150 100%


Chart No: 5

%

32%

59%

9%

Medical insurance

Relative and friends

Don’t know

Interpretation

From the above information it is found that most of the respondents arrange cash

incase of critical illness/ emergencies/accidents from their relatives and friends. Some others

are prefer from medical insurance and remaining others opinion was they are not aware

about it.


-40-


6. Important to have an education fund for your children

Table No: 6


1 Very important 92 62%

2 Important 53 35%

3 Not important 5 3%

4 Total 150 100%


Chart No: 6

%

62%

35%

3%

Very important

Important

Not important

Interpretation

From the above information majority of a respondents had answered education

fund is very important. Some of them opinion was important and rest of others answered it

is not at all important.


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7. Important to have marriage fund for your children

Table No: 7


1 Very important 40 27 %

2 Important 91 60 %

3 Not important 19 13%

4 Total 150 100%


Chart No: 7

%

27%

60%

13%

Very important

Important

Not important

Interpretation

From the above observation it was found that majority of the respondents opinion

was marriage fund for their children is important and remaining ones said it is not important

to have a marriage fund for their children.


-42-


8. People awareness about insurance

Table No: 8


1 Yes 150 100%

2 No 0 0%

3 Total 150 100%


Chart No: 8

%

100%

0%

Yes

No

Interpretation

From the above information it is found that all respondents are aware

about insurance and no one said they are not aware about the insurance.


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9. Need of Insurance for your family

Table No: 9


1 Yes 143 95%

2 No 7 5%

3 Total 150 100%


Chart No: 9

%

95%

5%

Yes

No

Interpretation

From the above illustration it is found that majority of the respondents said

insurance is needed for the family and rest of others said insurance is not needed for the

family.


-44-


10. People awareness about the benefit of a good insurance plan

Table No: 10


1 Yes 52 35%

2 No 98 65%

3 Total 150 100%


Chart No: 10

%

35%

65%

Yes

No

Interpretation

Majority of the respondents are aware about the benefit and rest of others are not

aware about the benefits of good insurance plan.


-45-


11. People who likes to make a representative calls on the ideas

Discussed above

Table No: 11


1 Yes 63 42%

2 No 87 58%

3 Total 150 100%


Chart No: 11

%

42%

58%

Yes

No

Interpretation

From the above it is found that larger number of respondents not like discuss the

ideas and remaining others like to discuss the ideas mentioned in the above question.


-46-


FINDINGS

As a part of the data collection for the work “A Study on Peoples perception

towards Insurance” Researcher had approached 150 people from various parts of Kollam

District including Karunagappally, Sasthamcottah, Chavara and Kollam. A structured

questionnaire is used for data collection. Based on data collection, data analysis and

interpretation is done and the following findings are to be made.

Majority of people were in the opinion that have Money planning

Most of the people prefer Savings as an important type of money planning and

many of the makes a portfolio of savings, Fixed Deposits, PPF.

People who have money plan for their retirement is less because they hire loans

from Financial Institutions with less paper works and after that life is moving on

credit. Those who have money plan for retirement prefer investment in Post

office, PPF, Saving s because they are the traditional method that are followed

and they are owned by government.

People arrange cash from Relatives and Friends in case of Emergencies, illness

and accidents and some of them take medical insurance and some of them go for

loans and it can be reimbursed.

Majority of people suggest that it is very important to have an education fund for

their children

It is important to have a marriage fund for their children but it is not very

important because of the changing social system


-47-


Majority of the people are aware about the insurance and insurance products.

Majority suggest that Insurance is needed for the family incase of retirement life,

illness, Education and for meeting the uncertainties in future.

Even though there are large number of Insurance companies and Insurance

Products many people are not aware about the benefits and various schemes

Some of the people that I surveyed are interested in Knowing various new

schemes and benefits of insurance.


-48-


SUGGESTIONS

Insurance companies must try to each the customers through tangible clues and

make them aware about the scheme and benefits. The degree of customer contact

and seller interface plays a significant role in insurance marketing.

The scope for expansion is still unlimited for all the insurance players because

they are concentrating on large cities and town –expect by LIC to an extent there

was no significant attempt to tap the rural markets.

Web-based Relationship Marketing in collection of premium and distribution of

the amount to reduce the time lag and e-mails and availability for understanding

the current position of the customer about their Insurance

Fix service standards for the agents and brokers and make a decent apology in

case of service failure.

The companies must concentrate on Vision, Values& Culture, Strategies

&Goals, structure & Roles, Key Performance Indicators (KPI) –that entails

multiple learning, Rapid Improvement Strategy-Enables initiate change, when

required.

The advantage of Insurance benefits is high for the people who started investing

from the early age.

There is an emergence of Hyper-competition in Insurance market, one way to

retain success is to develop a holistic Brand Relationship Management (BRM)


-49-


Introduce the concept “Octagonal Marketing” it encompasses all finer aspect

of customer management which can result in greater profits through customer

satisfaction. Octagonal marketing gives better edge to companies in not only

maximizing customer satisfaction but also in retaining them. It includes

providing customer a product which is more acceptable to him, Affordable

product Available at nearest to consumers, Relationship through product&

service.

There has been a plethora of new and innovative products offered by the new

players, Customers have tremendous choice including pure term (risk) insurance

to unit-linked investment products with a variety of benefits as riders from which

they can choose. More customers are buying products and services based on

their true needs traditional money-term protection and saving new products. So

there are still some key new products yet to be introduced –e.g. Health products.


-50-


CONCLUSION

The main objective of the study is for understanding the people’s perception towards

insurance and to understand insurance market in India and to an extent, correct or verify

knowledge regarding insurance. In this project work ‘A Study on people Perception

towards Insurance”, the study has touched an overview of the perception of people

towards insurance there is an In-depth study are required in the following subjects.

The role of private insurance companies in insurance market

The concept of octagonal Marketing and its implementation in Insurance

The role of Brand relationship Management and value of Brand in marketing

Understand the customer’s needs and development of product

Study of response about the existing product

It will give me great satisfaction if someone after reading my project encourages in

doing an in-depth study of the above set concept.


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QUESTIONANAIRE

[I am Aswin.M.S, student of MES College of Engineering, Kuttippuram, Malappuram

conducting a survey on “A Study on peoples Perception towards Insurance”]

RESPONDENT DETAILS

Name :………………………… Profession :…………………………………..

Sex :………………………… Annual income:…………………………………..

Age :………………………… Marital status :…………………………………..

Family size :…………………….. Location :……………………………………

Q1. Do you believe in money planning?

Yes No

Q2. How do you do your financial planning?

Saving Fixed Deposit

PPF Stock-debentures Others ………………….

Q3. (A) Do you have a money plan for your retirement?

Yes No

If No Skip to Question No: 4

(B) what would you do you protect your income after your retirement?

Monthly income scheme Savings

Bank Fixed Deposit

PPF Stock & Debentures

Post office Don’t know

Others (Please specify)……………………………………….


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Q4.How would you arrange for cash if you had critical illness /Emergency/Accident?

Medical insurance Relative and friends

Don’t know Others (Please specify)…………………………

Q5.How important is to have an education fund your children?

Very Important Important

Not important Others (Please specify)…………………………

Q6. How important is to have a marriage fund for your children?

Very Important Important

Not important Others (Please specify)…………………………

Q7. Do you know what is insurance?

Yes No

If No skip to Question No. 10

Q8. Do you think insurance is needed for the family?

Yes No

Q9. Would a good insurance plan benefit your family?

Yes No

Q10. Would you like a representative call on to you to discuss any of the ideas mentioned

above?

Yes No

[THANK YOU FOR YOUR TIME AND CO-OPERATION]


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aswin-full

Documents

insurance services

life insurance market

insurance benefits

business of insurance

life insurance companies

insurance project report

largest life insurance

global insurance market