Research methodology

LIFE INSURANCE

Dinesh Phadtare (92)

Shailesh Ranade (93)

Neha Raswalkar (94)

Jignita Rathod (96)

Ravi Suchak (111)

Introduction

Life Insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitle to receive the same) on the happening of the event insured by the contract.

Insurance Companies In India

Bajaj AllianceBirla Sun Life InsuranceLICAviva Life Insurance, IndiaMetLife India InsuranceICICI Prudential

Why?

Superior to any other savings planEasy settlement & protection against

creditorsReady Marketability & suitability for quick

borrowingsAccidental death benefitsTax Relief

Objective To compare the various current policies

available in market and analyze each policy.

To help the laymen people understand

various policies.

To create importance.

To spread awareness about insurance.

Types of Research

Analytical Research

Descriptive Research

Data collection

Primary Data

Interviewing agents

Collecting information through questionnaire within the age group 18-55 years.

contd.

Secondary Data

• Collecting data through

newspaper

internet

pamphlets of insurance companies

HYPOTHESIS

Comparison of Insurance Policies provided by LIC (public sector company)

and private company like ICICI Life Insurance, Kotak Mahindra,Birla Sun Life

Insurance etc.

Independent Variables

Age of CustomerOccupation of CustomerIncome of CustomerNo. of family membersArea in which the customer lives (Urban,

Semi-Urban, rural) etc.

Dependent Variables

Structure of Insurance Policy

Insurance Agents

Research DesignStep 1:To collect the primary data, through questionnaire.( 20 customers of LIC

and 20 customers of ICICI)

Types of question asked : - Open-ended question - Multiple-choice question

Step 2: Interview the Agents. 5 agents

Step 3: Prepare questionnaire for customer.(Approximately 50 Customers)

Contd…Who is to be surveyed ?

- All people ranging from 18 yrs & above –

- People who have Policy of LIC or ICICI prudential Life Insurance

Step 2: Interview Agents of LIC and ICICI

(5 agents of each LIC and ICICI)

Questions asked are open ended.

Source of Data

Primary Data :

To collect the primary data questionnaire is prepared with open ended and close ended questions including personal details.

Secondary Data :

Secondary data can be used as basis for comparison with primary data.

Data Collection Method : Questionnaire for customers

The questions in questionnaire are

Open ended questions : It is helpful in knowing what is uppermost in the mind of the respondents. It gives complete freedom to the respondent.

Multiple choice questions : In this, the respondent is offered two or more choice.

Data collection :Interviewing the agents

Closed ended questions : It is helpful in knowing the exact factual information.

Target Population : Mumbai City

Sampling Frame : People having polices of LIC or ICICI prudential life Insurance company.

Sampling Method :

Probability - Stratified Sampling supplemented with convenience sampling

Sampling Unit : People aged 18 & Above

Determining Sampling Size : 50 sample size as per convenience and for accurate analysis and interpretation of data.

5 Agents of LIC5 Agents of ICICI20 Customers of LIC20 Customers of ICICI Prudential Life Insurance

QUESTIONNAIRE1.Name of the Policy Holder:

2. Date of birth:

3. Gender: Male Female

4. Occupation:

5. Income p.a.:

6. You have policy of: L.I.C. ICICI

7. Name of the Policy:

8. Maturity period:

9. Premium: Rs. Monthly Quarterly

Yearly Single Installment 10. Tax Benefits: Benefit: Yes No Amount:

11. Interest Rate:

12. Do you have termination facility for your policy? Yes No If yes, Termination is allowed after how many years?

How much amount do you get back?

13. Do you have extension facility for your policy? Yes No

14. Have you purchased policy through your bank or through direct agent?

Bank Agent

15. Do you have purchased any policy for your children?

Yes No

If yes, which policy have you purchased?

16. What are other benefits provided by your policy?

17. What is your purpose of purchasing an insurance policy?

18. How do you know about this policy?

Media Doctor Friends

Agents Others

19. Would you refer this policy to others? Yes No If yes, why?

20) Do you feel the process for applying the insurance policy is tedious?

Yes No What changes do you suggest for your insurance company?

Agents of LIC and ICICI were interviewed through telephone. They were asked open ended questions regarding the policies and services provided by the company.

0

5

10

15

20

LIC

ICICI

PREMIUM PAID

RANGE OF PREMIUM PAID

RANGE NO OF RESPODENTS OF LIC

NO OF RESPODENTS OF ICICI

1000-2000 3 2

2000-3000 4 -

3000-4000 3 -

4000-5000 3 -

5000-6000 4 3

6000-7000 2 2

7000-8000 - 1

8000-9000 - 6

9000-10,000 1 6

10,000 ABOVE

TYPES OF LIC POLICY

P1-ENDOWMENT ASSURANCE

P2-JEEVAM SARAL

P3-MONEY BACK

P4-MARKET PLUS

P5-JEEVAN MITRA

P6-ENDOWMENT

P7-AKSHAY BIMA

YOJNA

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

P1 P2 P3 P4 P5 P6 P7

TYPES OF POLICY

NUM

BER

OF P

EOPL

E

TYPES OF ICICI POLICY

0

1

2

3

4

5

6

7

8

9

10

P1 P2 P3 P4 P5 P6

TYPES OF POLICY

NUM

BER

OF P

EOPL

E

P1-LIFE TIME PENSION

P2- CASH BACK

P3- LIFE TIME PREMIUM

P4-SAVE N PROTECT

P5- INVEST SHEILD

P6- RIDER

FOR LIC

AGE NO. OF PERSONS

20 – 30 1

30 – 40 2

40 – 50 8

50 – 60 3

Greater than 60 1

FOR I.C.I.C.I

AGE NO. OF PERSONS

20 – 30 6

30 – 40 7

40 – 50 1

50 – 60 6

Greater than 60 1

DO YOU SUGGEST LIC POLICY??

YES70%

NO30%

YES

NO

DO YOU SUGGEST ICICI POLICY?

YES85%

NO15%

YES

NO

DO YOUR LIC POLICY HAVE TERMINATION FACILITY ?

YES54%

NO46% YES

NO

DO YOUR ICICI HAVE TERMINATION FACILITY

YES60%

NO40%

YES

NO

DO YOUR LIC POLICY HAVE EXTENSION FACILITY

YES55%

NO45% YES

NO

DO YOUR ICICI POLICY HAVE EXTENSION FACILITY

YES60%

NO40%

YES

NO

Hypothesis Testing

Parameters LIC (X1) ICICI (X2)

Less premium 9 7

More return 8 9

Interest rate 7 9

Attractive schemes 7 6

Better service 6 9

Timely service 6 8

Termination 6 8

Extension 6 8

Total Mean=55/8=6.875 Mean=64/8=8

Z -test

TWO SAMPLE:

Sample size large (n>30)

Sample drawn from same population

Is used when 2 samples are drawn from sample population

Incase is not known,

can be used in its place.

D1=6.875-7.44 = -0.565

D2=8-7.44 = 0.56

n1=20

n2=20

Contd….

Null Hypothesis :- H0 -> µ1 = µ2

benefits provided by LIC & ICICI company are same

.

Alternative Hypothesis:- Ha -> µ1 =/= µ2 or By substituting in above formulas , we getCalculated z =-2.89By comparing this value to tabular value at 5% l.o.s

i.e.- 2.262 < z < 2.262

Contd…

Calculated z > Tabular z Hence hypothesis is rejected i.e.

reject H0 Accept H1

So we can conclude that benefits provided by one company are better than of other.

Major findings of the study

Public prefer private insurance mainly for the reasons such as

- timely service,

- better service,

- friendly approach,

- better communication,

- immediate attention,

- influence of friends and relatives as agents and

- trust worthiness.

- attractive schemes

Contd..

Aged people have more concern for economic factors compared to youngsters while studying the reasoning for private policy preferences.

All other factors like service, human relations, product and comfort do not vary significantly based on age though the reasoning levels are high.

The most important means of creating awareness are agents, friends, relatives and advertisement.

Contd..

Customers are found to be highly satisfied with service facilities, human relations and attractive schemes.

Age and income did not exert any significant level of difference of in the satisfaction level of the customers.

SuggestionsPrivate insurance companies have gained their

momentum by focusing on better service and relationship marketing.

When they plan schemes or different segments the elderly people scheme must focus more on economic factors.

Private insurance companies have attractive schemes to gain the attention of the public, if they could extend more varieties to attract.

Customers opt to buy private insurance policies in the future though all are not prepared to recommend them to others

Conclusion

The insurance industry is facing a healthy competition, which really benefits the public. Government sector should further improve their product varieties and

attractive schemes to compete with the private sector and also change their attitude further towards

service to survive in the market.

THANK YOU