Final Part 1 od

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PART A:

PERCEPTION STUDY ON MONEY

BACK PLAN


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Content Page No.

A : Study on Money Back Policy

Chapter No. 1

Chapter No. 2

2.1 Research Methodology ...06

2.2 Research Strategy ...06

Chapter No. 3

3.1. Analysis and Data Interpretation 08

Chapter No. 4

4.1. Results .21

4.2. Conclusion ..23

4.3. Suggestions ..24

Chapter No. 5

Bibliography ..25

Questionnaire ..26

1.1. Abstract ...01

1.2. Introduction ...02

1.3. Detail Study about Money back policy ...02

1.3.1 Salient Feature ..03

1.41.3.2 BenefitResearch Problem

...04...05

1.5 Purpose of the Study ..05


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List of Tables and Figures

List of Table Particular Page No.

1. Table No. 1.MoneyBack Policy plan feature..04

2. Table No. 2....Awarenessof Life Insurance. 08

3. Table No. 3.DecisionInfluence....09

4. Table No. 4..Attractionof Insurance10

5. Table No. 5.Purposeof buy Insurance..11

6. Table No. 6..........Investment for Insurance...12

7. Table No. 7Premiumpayment...13

8. Table No. 8....Modeof Premium...149. Table No. 9.Believable Company..15

10.Table No.10..........Types of Insurance plan...16

11.Table No.11Awarewith Money Back17

12.Table No.12..No. of Policy.18

13.TableNo.13...........Interest to take Money Back policy.19

14.Table No.14.Satisfaction20


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List of Figure Particular Page No.

1. Figure No. 1....Awarenessof Life Insurance..... 08

2.

Figure No. 2.DecisionInfluence....093. Figure No. 3..Attractionof Insurance10

4. Figure No. 4.Purposeof buy Insurance..11

5. Figure No. 5..........Investment for Insurance..12

6. Figure No. 6Premiumpayment...13

7. Figure No. 7....Modeof Premium...14

8. Figure No. 8.BelievableCompany..15

9. Figure No. 9..........Typesof Insuranceplan...16

10.Figure No. 10Awarewith Money Back1711.Figure No. 12..No.of Policy.18

12.Figure No. 13...........Interestto take Money Backpolicy.19

13.Figure No. 14.Satisfaction20


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Chapter No. 1

Abstract

India is a country where the average selling of life insurance policies is still

lower than many western and asian countries, with the second largest population

in world the Indian insurance market is looking very prospective to many

multinational and Indian insurance companies for expanding their business and

market share. Before the opening of indian market for Multinational

Insurance Companies, Life Insurance Corporation (LIC) was the only

company which dealt in Life Insurance and after opening of this sector to other

private companies, all the world leaders of life insurance have started their

operation in India. With their world market experience and network, these

companies have offered many good schemes to lure all type of Indian

consumers but unfortunately failed to get the major share of market. Still the

LIC is the biggest player in the life insurance market with approx 65% market

share. But why Indian consumers do not trust on many companies and why the

major population of India does not have any life insurance policy or what are

the factors plays major role in buying behavior of consumers towards life

insurance policies.


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1.2. Introduction

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

have certain responsibilities too. Indian consumers have big influence of

emotions and rationality on their buying decisions. They believe in future rather

than the present and desire to have a better and secured future, in this

direction life insurance services have its own value in terms of minimizing

risk and uncertainties. Indian economy is developing and having huge middle

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

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

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

research paper to study the buying behavior of consumers towards life

insurance services.

Life insurance is one of the best known insurance products today. People buy

these products as investment tools and also as protection for themselves and

their families. All the insurance companies the world over are looking at

attracting the eye balls of customer and positioning their solutions innovatively

to cater to niche and specific markets. One of the most critical aspects both

from the view point of the customer and the insurer is getting important and

relevant leads that can be beneficial for both.


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1.3 Detail study about Money back Policy

'MONEY BACK plan is an excellent plan with good return on reinvestment, best

suited for businessmen and professionals. Money is available at regular intervals in

future to meet the specific expenses such as children's education or marriage. At

the same time, that provides insurance protection for the family as well as old age

provision.

1.3.1 Salient Features

where lump sum amounts are paid to the life assured at periodic intervals on

survival.

In case of death of the life assured within the term, the total sum insured is

paid to the nominee, irrespective of earlier survival benefits.

Bonus is payable under this scheme.

Premiums are to be paid regularly to get survival benefits.

Premiums cease at death or on expiry of term whichever is earlier.

This plan can be availed of for terms 20 or 25 years.


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15thyear 15% of sum assured Rs.15,000/-

20th

year 15% of sum assured Rs.15,000/-

25tyear 40% of sum assured Rs.40,000/-

Table No. 1

1.4. Research Problem

The problem of the my research is to know perception of the customer about

Monet Back policy .

1.5 Purpose of the study

The purpose of the study is know that

1. To evaluate the factors underlying consumer perception towards investment

in life insurance policies.

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

insurance services.

Research Question

Perception study about Money back policy


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Chapter No. 2

RESEARCH METHODOLOGY

2.1 Research Strategy

For my research study first of all this is very important that I have to

know what is money back policy and how it works. Data about

perception of people about this is collected .

Collection of data

Primary Source

Sampling Design

a)Population:

Population included visitors in canara bank sector 35, Chandigarh Branch.

b)Sample frame:

The sample frame was the individuals who are investing in life insurance policies.

Sampling elements:

Individual respondents were the sampling elements.

Sampling Techniques:

Purposive sampling technique was used to select the samples.

Sample Size: Sample size was 104

respondents.

Secondary Source:

The common source for secondary data includes different websites.


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Chapter 3

3.1. Analysis and data interpretation

3.1.1 Awareness of life insurance in customer.

Fig. 1

No. of

respondants Percentage of respondents

Yes

No

104

0

100%

0%

Table No.2

According to the data Maximum people are aware with Life insurance policy; here

100% people are aware with life insurance. This time in india most of the people

a r e aware with this investment because now a dayspeople are not interested to

invest their money in bank and post office etc. but if we see in rural area , where

most of the people is not aware with life insurance.


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3.1.2 In buying insurance policy, your decision is influenced by

Figure No. 2

No. of

respondents

% of

Respondents

Family 38 37%

Friends 31 30%

Professional and trade union

group 16 15%

Brand and Advertisement 19 18%

Table No. 3

Insurance is now basic investment for consumers. But this is tradition of india that

we are not believe in unknown people So when any one buy insurance policy then

his or her decision is depend on family friends etc. here if we see 37% respondents

believe his family to buy insurance policy but only 18% respondentsdecision

depend on brand and advertisement of company. so here we see that family and

friends play a big role to buy insurance policy.

3.1.3 What attracts you more in insurance?


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Figure No. 3

No. of

respondents

% of

respondents

Bonus 69 66%Generated Income 31 30%

Return Depend on

Market 13 4%

Table No. 4

Mostly people invest money in insurance for his life security but now they also

think about profit. Today people are only asking about profit that after 3 or 4 year

how much Money Company give me. Most of the people buy insurance for Bonus,

here 66% people attract by bonus and only 4% people attract by return depend on

market.


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3.1.4 What is your purpose for buying insurance policy?

Figure No. 4

No of

Respondents

% of

respondents

For old age saving 53 51%

Family saving 14 14%

Time to time needs 22 21%

Opposite circumstances 15 14%

Table No. 5

Most of the people buy insurance policy for his old days saving because they want

to save money for old age and only 21% people buy insurance for time to time

needs.


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3.1.5 How much money you want to invest in insurance?

Figure No. 5

Premium

Amount

No. of

respondents

10000 to 15000 15

15001 to 20000 29

20001 to 25000 31

25001 to 30000 21

30001 to 35000 5

Table No. 6

Mostly people invest in insurance his saving amount and according to their

saving they purchase life insurance policy. Here most of the people invest Rs.

20001 To Rs. 25000 . And very less number of people invest huge amount in

insurance.


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3.1.6 How do you want to pay your premium?

Figure No.6

Mode

No. Of

Respondents

Cash 36

Cheque 41

Demand

Draft 27

Table No. 7

Most of the respondent pay their premium through cheque there 41 respondent pay

their premium through cheque and 36 respondent pay their premium through cash

and 27 respondent pay their premium through demand draft..


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3.1.7 In what mode you want to give premium?

Figure No. 7

Mode

No. of

Respondents

% of

respondent

Monthly 27 26%

Half-

Yearly 41 39%

Yearly 36 35%

Table No. 8

Insurance company give a lots of facility to his loyal costumer for pay his

premium. Customer also pay the premium in three modes monthly,

half yearly and yearly. Here 39 % respondent pay in half yearly mode

and 35% respondent pay yearly mode premium.


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3.1.8 In which company you believe most ?

Figure No.8

Company

No. of

respondent

Private

Company 38

Public Company 62

Table No. 9

Most of the people want to invest his money in public insurance company and in

private insurance company only 38 respondent want to invest their money. Most of

the people buy insurance from LIC and there are 24 private insurance company in

India.


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3.1.9 which type of insurance plan do you want?

Figure No. 9

PLAN

No. of

Respondents

% of

respondents

ULIP Plan 22 21%

Traditinol

Plan 41 40%

Health Plan 24 23%

Term plan 17 16%

Table no. 10

In insurance plan respondent want mostly traditional plan. 40% respondent use

traditional plan and 21% respondent want to buy ULIP Plan.


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3.1.10 Are you aware of Money Back Policy of any life insurance company?

Figure No.10

No. of

Respondents

% of

respondentsYes 87 84%

No 17 16%

Table No. 11

There are 84% respondents who are aware about money back policy and

16% respondent have no idea about money back policy.


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3.1.11 How much Money Back policy you have?

Figure No.11

No. of policy

No. of

Respondents

% of

respondents0 17 16%

1 37 36%

2 27 26%

3 20 19%

4 and above 3 3%

Table No.12

There are 84% aware with Money back policy in this 84% respondent 37

people have 1 money back policy and 27 people have 2 money back policy.

There are 16% respondent they havent any money back policy.


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3.1.12 Are you interested to take Money Back policy again?

Figure No.12

No. of

Respondents

% of

respondentsYes 57 71%

No 28 13%

Can't say 19 16%

Table No. 13

There are 55% respondent interested to take money back policy again but 27%

respondent have no interest to take this policy again and 18% respondent dont

know what to do.


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3.1.13 Are you satisfied with the return investment, which you are getting

from your policy?

Figure No. 13

No. of

Respondents

% of

respondents

Very satisfied 22 21%

Satisfied 62 60%

Can't say 4 4%

Not Much

satisfies 4 4%

dissatisfied 12 11%

Table No.14

Here we see very positive result of my respondent about money back policy

product. In that 84% respondent 60 % respondent satisfied with return on this

money back policy and 21% respondent very satisfied with money back

policy.and 11% respondent not satisfied with return on this money back policy.


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Chapter No. 4

4.1. Results

In present Indian market, the investment habits of Indian consumers are changing

very frequently. The individuals have their own perception towards various types

of investment plans. The study of this research work was focused over consumers

perception on investment towards money back policy of Life Insurance Services.

The objectives of the study were to evaluate the factors underlying consumer

perception towards investment in life insurance policies; and to compare the

differences in consumer perception of male and female consumers.

In india LIC have a 25 years monopoly and costumers were bound to buy

insurance from LIC but in 2000 maximum private insurance companies enter

in the Indian insurance market and that time very less number of people want

to buy insurance from this private companies and today also if see this survey

then according to survey 62% people believe in LIC and remaining 38%

people go with private companies like Reliance Life Insurance, ICICI

Prudential. But today the face of insurance market is totally changed now

people move to private sector insurance companies. because this private

companies gives more bonus and return to his costumer .and costumer also

buy that policy where he got more bonus and return. Now a dayscontroversy


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is going on between SEBI and IRDA about ULIP policies. In ULIP policies

companies charged a huge money in first premium of his policy and that

policy return also depend on market if market is on peak then costumer have

good profit with good return and insurance market is affected by this

controversy now people are scared to buy ULIP policy only 21% people

interested to buy this plan but people more attracted in traditional plan

because in this costumer have a certain return guarantee and charges also less

in comparison than ULIP policy and Money Back policy is a traditional plan

where more number of people attracted. In 61 respondent out of 104

respondent are satisfied with Money Back policy.

4.2

Conclusion

The perception of the Money back plan of life insurance is good towards the

costumer. Necessarily customer need that type of plan where they get any

benefit and safety for his money and this plan is safe as well as benefitted

also because there is a lots of benefit with this plan so this is the reason this

plan is more popular in Indian market. Savings and Investment Plan

gives the double


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benefit of easy liquidity through lump sum cash along with life insurance.

During the time of need this policy provides the money at times. This policy

gives the freedom to the insured to live to the full at present and at the same

time assures the safety of the future by giving the flexibility of being paid a

specific percentage of the Sum Assured at particular intervals. But Indian

customer perception basically this

1. Easy liquidity of periodic cash flow at the end of the 4th year and

thereafter at the end of every 3 years.

2.

Savings with Investment Plan

3. Safety for the money

The consumers perception towards Life Insurance Policies is positive. It

developed a positive mind sets for their investment pattern, in insurance policies.

Still some actions are needed for developing insurance market. The major factors

playing the role in developing consumers perception towards Life Insurance

Policies are Consumer Loyalty, Service Quality, Ease of Procedures, Satisfaction

Level, Company Image, and Company-Client Relationship. Insurance industry has

to go ahead. A lot of opportunities are still waiting..


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4.3 Suggestions

1. Insurance companies should try to adopt different strategies to market

their products or plan. Companies should not primarily focus on the

agents for their business.

2. Insurance company should try to decrease its charge.

3. Agents should not be cheat with his client .they should be give clear

information about insurance product


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Chapter 5

Bibliography

Websites

1.www.wikipedia.com

2.

www.comparelifeinsurence.co.in

3.www.apnainsurance.com

4.www.moneycontrol.com

5.www.irdaindia.gov

6.

www.bajajallianzlife.com
http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.comparelifeinsurence.co.in/http://www.comparelifeinsurence.co.in/http://www.comparelifeinsurence.co.in/http://www.apnainsurance.com/http://www.apnainsurance.com/http://www.apnainsurance.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.irdaindia.gov/http://www.irdaindia.gov/http://www.irdaindia.gov/http://www.bajajallianzlife.com/http://www.bajajallianzlife.com/http://www.bajajallianzlife.com/http://www.bajajallianzlife.com/http://www.irdaindia.gov/http://www.moneycontrol.com/http://www.apnainsurance.com/http://www.comparelifeinsurence.co.in/http://www.wikipedia.com/


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QUESTIONNAIRE

Declaration: I t is purely for academic purposes and the data given wil l not be

passed to anyone. I request you to kindly fi ll up the form. Thank you.

NAME: SURNAME

DATE OF BIRTH:

PRESENTADDRESS

LANDMARK: PIN

PHONE NO

PERMANENT ADDRESS:

MOBILE

EDUCATION:

OCCUPATION:

MONTHLY INCOME:

a) Rs30, 000

1.Are you aware about life Insurance? a) Yes b) No

2.Are you interested in investing your money?

i) Yes ii) No iii) Not now

3.

Where do you want to invest your money?

i)Shares ii) Mutual funds iii) Insurance iv) Fixed deposits

4.What is your purpose for buying insurance policy?


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a) For old age saving

b) Family needs

c) Time to time needs

d) Opposite circumstances

5. In buying insurance policy, your decision is influenced by

a) Family

b) Friends

c) Professional and trade union group

d) Brand and Advertisement

6. What is your savings as a percentage of annual income?

a).15 to 20 b) 20 to 40 c) 40 to 50 d) 50 to 60

7. How much money you want to invest in insurance?

a) 10,000 to 15,000

b) 15,001 to 20,000

c) 20,001 to 25,000

d) 25,001 to 30,000

e) 30,001 to 35,000

8. In which company you believe most ?

a) Private insurance company

b) Public insurance company

8. Do you know how many insurance companies prevailing in India?

a)1 b) 8 c) 16 d) More than 20 d) No idea


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9.What attracts you more in insurance?

a)Bonus

b)

Generated Bonus

c)Return depend on market

10.How do you want to give your premium?

a)Cash

b)Cheque

c)Demand Draft

11.Do you think that insurance is necessary in todayslife?

a)Yes b) No

12.In what mode you want to give premium?

a. Monthly

b. Half-yearly

c. Yearly

13. which type of insurance plan do u want?

a) ULIP

b) Traditional

c) Health

d) Term Plan

14.Are you aware with Money Back Policy of any life insurance company ?

a)

Yes

b) No

15.How much Money Back policy you have ?

a) 0

b) 1

c) 2

d)

3e) 4 and above


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16.Are you interested to take Money Back policy again ?

a) Yes

b) No

c) Cantsay

17.Are you satisfied with the return on investment, which you are getting from your

policy?

a. Very satisfied

b. Satisfied

c. Cantsay

d.

Not much satisfied

e. Dissatisfied

Any Suggestion.

Signature: Date:

Thank you for Your Cooperation


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