CHAPTER-IV
ANALYSIS ON POLICYHOLDERS OF
MICRO INSURANCE
CHAPTER IV
ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
'In India, 2% of the rural people covered under the insurance. Both, public and
private insurance companies are providing insurance services to the people. Access to
insurance services is still inadequate among the majority of rural populations. The
largest public sector companies LIC has planned to cover the rural market7 It leads to
make a new policy for rural peoj Before making a new product in any sector it
must be considers the certain factors. The LIC has designed the new insurance policy
for the rural people and economically underprivileged people. The policy is micro
insurance policy (jeevan madhur). It needs to design a special marketing strategy in
the market. So, the LIC has adopted a special marketing strategy. The strategy
follows different premium option, mode of payment, different method of distribution
and new market segment.
This study views the benefit of micro insurance policy and how its extent the
benefits to the policy holders. From the analysis on policy holders of micro insurance,
we can understand policy holders needs, expectations, capacity to pay the premium,
satisfaction level on micro insurance premium, sum assured, mode of payment,
distribution method on micro insurance policy, option of payment method, perception
on micro insurance policy and benefits of micro insurance.
For this purpose, the convenient sampling technique was used for the selection
of samples which constitutes 155 micro insurance policy holders in Tirunelveli
District. Uni-variate and bi-variate analysis were used for analysis like percentage
analysis, mean score analysis & Chi-square test. Means score is used to know about
the policy holder's satisfaction level on premium, sum assured, mode of payment,
loan facilities, bonus benefits, accidental benefits, NGOs services and insurance
company services. Chi-Square is used to determined the association between the
gender and. satisfaction level on micro insurance, policy holders willingness to take
micro insurance in the future and perception on micro insurance.
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Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. TYPE OF LIFE INSURANCE POLICY
Table 4.1 Type of Life Insurance Policy
Particulars No. of Respondents Percentage of
RespondentsWhole life policy 26 16.77
Endowment policy 1 0.65
Money Back policy 5 3.23
Other (Special Plan) 123 79.35
Total 155 100Source: Primary data
The table 4.1 represents that, out of the 155 respondents, 0.65% of the
respondents insured in both Endowment policy and Micro Insurance policy, 3.23% of
the respondents insured in both Money Back policy and Micro Insurance policy,
16.77% of the respondents insured in both whole life policy and Micro Insurance
policy, 79.35% of the respondents insured Only in Micro Insurance policy. Micro
Insurance comes under a special plan (other). From this table, it is observed that the
micro insurance policy attracts both existing policyholders and new policyholders.
But, it is an additional savings to the existing policyholders. Hence, most of the
respondents are new policyholders.
. AWARENESS ON MICRO INSURANCE
Table 4.2 Awareness on Micro Insurance
Percentage ofParticulars No. of Respondents
Respondents
Yes 29 18.71
No 126 81.29
Total 155 100
Source: Primary data
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Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
The table 4.2 shows that, out of the total respondents, 81.29% of the
respondents not have awareness on micro insurance and 18.71% the respondents have
the awareness on micro insurance.
It reveals that, Micro Insurance policyholders have no awareness because the
micro insurance agents hurry to cover more policyholders. So, they don't reveal the
full information regarding micro insurance. Thus, few policyholders have get
awareness.
. MEANS OF AWARENESS OF MICRO INSURANCE
Table 4.3 Means of awareness of Micro Insurance
- Percentage ofParticulars No. of Respondents
Respondents
SHGs 92 59.35
NGOs
30 I 19.36
Banks
5 I 3.23
NewpapersI 0 I 0
Friends & Relatives I 12 I 7.74
Others (Colleagues)I
161
10.32
Total 1 155 I 100
Source: Primary data
The table 4.3 reveals that, out of the total respondents, 59.35% of the
respondents heard about the micro insurance through Self Help Group (SHG5),
19.36% of the respondents heard about the micro insurance through Non
Governmental Organization (NGOs), 10.32% of the respondents heard about micro
insurance through others (includes LIC, colleagues, neighbours), 7.74% of the
respondents heard about the micro insurance through Friends & Relatives and 3.23%
of the respondents heard about the micro insurance through Banks.
MICRO INSURANCE BE\'Er/is TOWARDS POLICYHOLDERS
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE .
From the table 4.3, it observed that, micro insurance policy is reached to the
people through the SHGs because it plays a vital role of micro insurance agent on
behalf of the NGOs and they are appointed by the NGOs. NGO acts an intermediary
between the LIC and SHGs. Another reason is that there is no direct relationship
between LIC and SHGs thus there is no advertisement for this micro insurance policy.
• NUMBER OF POLICIES OWNED BY POLICY HOLDER
Table 4.4 Number of policies owned by Policy Holder
Percentage ofParticulars No. of Respondents
Respondents
132 85.16
2 17 10.97
Above 2 6 3.87
Total 155 100
Source: Primary data
The table 4.4 shows that, out of the 155 respondents, 85.16% of the
respondents owned one micro insurance policy, 10.97% of the respondents owned
two policies and 3.87% of the respondents owned above two policies.
It reviews that single member can take more number of micro insurance
policies under the scheme. Many policy holders do not know about this facility. Few
policy holders have the knowledge about it and they have taken the policy in the name
of their nominee.
Another reason is that, the policyholders are not ready to insured under the
same policy because they feel it is a less benefited scheme compare to other life
insurance policies.
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Chapter IV
ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. REASONS FOR PURCHASING MICRO INSURANCE
Table 4.5 Reasons for purchasing Micro Insurance
Percentage ofParticulars No. of Respondents
Respondents
Risk coverage for 32 20.65
Individuals
Risk coverage for Group 0 0
For savings 47 30.32
Other 76 49.03
Total 155 100
Source: Primary data
The table 4.5 reveals that, out of the 155 respondents, 49.03% of the
respondents purchased the micro insurance policy for other reason (Because they are
SHGs members, Compulsory to their group leader and compulsory by the Bank),
30.32% of the respondents purchased the micro insurance policy for savings and
20.65% of the respondents purchased the policy for their risk coverage.
SI-IG members gave first preference to micro insurance policy because the
main reason is that they are a member of SHG and the policy is distributed by their
leaders. The respondents gave next priority to the savings because it is a small savings
for them.
This policy is not providing risk cover for groups. Hence, The LIC also
motivates the SHG members to acquire the policy.
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Chapter IV
ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
. TERMS OF THE MICRO INSURANCE POLICY
Table 4.6 Terms of the Micro Insurance policy
Percentage of
Particulars No. of RespondentsRespondents
0-5yrs 17 10.97
6-10yrs 76 49.03
11-I5yrs 62 40
Above l5yrs 0 0
Total 155 100
Source: Primary data
The table 4.6 represents that, out of the total respondents, 49.03% of the
respondents insured for the term of 6-10 years, 40% of the respondents insured for the
term of 11-1 5 years and 10.97% of the respondents insured for the term of 0-5 years.
Micro Insurance has the policy term of 5-15 years. The respondents choose the policy
term according to their age and sum assured. Most of the respondents are married
people out of the total respondents. So, they are selected the term based on their
children education and marriage and also many respondents felt that less than 5 years
policy term is less benefited for themselves.
. SUM ASSURED OF THE MICRO INSURANCE POLICY
Table 4.7 Sum Assured of the Micro Insurance Policy
Percentage of
Particulars No. of RespondentsRespondents
Below Rs.5,000 0 0
Rs.5,001-Rs.10,000 17 10.97
Rs. 10,001-Rs.15,000 42 27.10
Above Rs. 15,000 96 61.93
Total 155 100
Source: Primary data
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS 65
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
The table 4.7 shows that, out of the total respondents, 61.93% of the
respondents insured for the sum assured of above Rs.15000, 27.10% of the
respondents insured for Rs. l0001-Rs.15000. 10.97% of the respondents insured the
amount of Rs.5001-Rs.10000. Micro Insurance policy have minimum sum assured is
Rs.5000 and maximum sum assured is Rs.30000. Many policyholders prefer the sum
assured of above Rs.15000 because they want to achieve maximum benefit and it
gives lump sum amount in future. Very few respondents have taken the sum assured
of Rs.5001-Rs.10000 because they want to achieve immediate benefit. The reason
behind in it is their age.
• AMOUNT OF MICRO INSURANCE POLICY PREMIUM
Table 4.8 Amount of Micro Insurance Policy Premium
Particulars No. of RespondentsPercentage ofRespondents
Rs.25 6 3.87
Rs.50 14 9.03
Rs. 100 122 78.71
Rs.300 9 5.81
Rs.600 4 2.58
Rs. 1200 0 0
Total 155 100
Source: Primary data
The table 4.8 shows that, out of the total respondents, 78.71% of the
respondents are paying the premium of Rs.100, 9.03% of the respondents are paying
the premium of Rs.50, 5.81% of the respondents are paying the premium of Rs.300.
3.87% of the respondents are paying the premium of Rs.25 and 2.58% of the
respondents are paying the premium of Rs.600. Many policyholders are paying the
premium of Rs. 100. Because, they felt that it is the best option for them and also they
have the facility for paying the premium in their group meeting. It is an easy to
policyholders and also for the agent. Middle income people are paying the premium
of Rs.300. Other people plan according to their standard of life. Hence, Micro
Insurance premium is suitable to all.
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Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
• OPTION OF PAYMENT OF PREMIUM
Table 4.9 Option of Payment of Premium
Particulars No. of RespondentsPercentage of
Respondents
Weekly 6 3.87
Monthly 122 78.71
Quarterly 9 5.81
Half-yearly 4 2.58
Yearly 0 0
Other (Fortnightly) 14 9.03
Total 155 100
Source: Primary data
The table 4.9 represents that, out of the 155 respondents, 78.71% of the
respondents are paying the premium on monthly basis, 9.03% of the respondents are
paying the premium on other option (Fortnightly), 5.81% of the respondents are
paying the premium on quarterly basis, 3.87% of the respondents are paying the
premium on weekly basis and 2.58% of the respondents are paying the premium on
Half-yearly basis.
No one is paid the premium on yearly basis. Thus, the monthly payment is the
best option for the policy holders. Middle income people are selected the option of
quarterly and Half yearly. Yearly payment is difficult to the policyholders because
they cannot affordable and Micro Insurance is not mostly acquired by high income
people. From this point, it is observed that the monthly option is more suitable to all
segment of the people.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS 67
Chapter IV
ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
. REASONS FOR MODE OF PREMIUM PAYMENT
Table 4.10 Reasons for Mode of premium payment
Percentage ofParticulars No. of Respondents
Respondents
Based on Corn fortability 63 40.68
Based on Low Premium 46 29.68
Based on Our Income 22 14.16
Other 24 15.48
Total 155 100
Source: Primary data
The table 4.10 reveals that, out of the total respondents, 40.68% of the
respondents selected mode of premium payment based on their comfortability,
29.68% of the respondents selected the mode of premium payment on the basis of low
premium, 15.48% of the respondents selected the mode of premium payment based on
other reason and 14.19% of the respondents paid the premium based on their income.
Hence, Most of the policyholders selected the mode of payment of premium
based on their comfortability because the reason is that they very comfortable to pay
the premium in their group meetings and if they do not participate in their group
meeting, the premium is collected by their group leader or other member.
Some policyholders selected low premium because it is easy to pay. Few
policyholders paying the premium based on their income or their family income.
MICRO INSURANCE BENEFITS JO WA RDS POLICYhOLDERS 68
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. PAYMENT OF PREMIUM
Table 4.11 Payment of Premium
Particulars No. of RespondentsPercentage ofRespondents
Self 91 58.71
Parents 17 10.97
Husband 35 22.58
Relatives 12 7.74
Other 0 0
Total 155 100
Source: Primary data
The table 4.11 shows that, out of the 155 respondents, 58.71% of the
respondents paid the premium by themselves, 22.58% of the respondents paid the
premium by their Husband, 10.97% of the respondents are paid the premium by their
parents and 7.74% of the respondents paid the premium by their Relatives.
From this table, we can understand many policyholders paid the premium
from their own income because most of the policyholders are SHGs member. SHG
member are mostly employed so that, they paid the premium from their own income.
Few policyholders are not employed persons. So, the premium is paid from their
family income. It is paid by their Parents or Husband or their Relatives
. WAYS TO PAY THE PREMIUM
Table 4.12 Ways to pay the premium
Particulars No. of RespondentsPercentage ofRespondents
Direct Payment 0 0
Through NGOs 38 24.52
Through Agent 117 75.48
Through BanI 0 0
Other 0 0
Total 155 100
Source: Primary data
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Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
The table 4.12 reveals about, 75.48% of the respondents paid the premium
through Micro Insurance Agent (SHGs) and 24.52% of the respondents paid the
premium through NGOs. Thus, Policy holders pay the premium through agent and
NGOs is collecting the premium from the agent and they settle to the LIC. The
method of premium payment for micro insurance is three-way process (Policyholders-
Agent-NGO-LIC). Thus, there is no direct payment and bank payment.
. GETTING FINANCIAL ASSISTANCE TO PAY PREMIUM
Table 4.13 Getting Financial Assistance to pay premium
Particulars No. of Respondents Percentage ofRespondents
Yes 0 0
No 155 100
Total 155 100
Source: Primary data
The table 4.13 shows that, 100% of the respondents have not availed financial
assistance to pay the premium. Because, the policyholders feel micro insurance has
the low premium. So, they themselves pay the premium.
. PURCHASE OF POLICY FOR FAMILY MEMBERS
Table 4.14 Purchase of policy for Family Members
Particulars No. of RespondentsPercentage ofRespondents
Yes - 25 16.13
No 130 83.87
Total 155 100
Source: Primary data
The table 4.14 represents that, out of the total respondents, 83.87% of the
respondents have not taken micro insurance policy for their family members and
16.13% of the respondents have taken the micro insurance policy for their family
members. Hence, only few respondents have purchased the micro insurance policy
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS70
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
for their family members. Because it is based on the policyholders need, expectation,
capability to pay the premium, satisfaction level on micro insurance policy and
knowledge about to compare the other life insurance policy.
. NUMBER OF POLICIES BOUGHT FOR FAMILY MEMBERS
Table 4.15 Number of policies bought for Family Members
Particulars No. of RespondentsPercentage of
Respondents0-3 17 68
Above3 8 32
Total 25 100
Source: Primary data
The table 4.15 represents that, out of the 25 respondents, 68% of the
respondents bought up to 3 micro insurance policies for family members and 32% of
the respondents bought above 3 micro insurance policies for family members. Thus,
Micro insurance policy holders are not only benefited but also their family members.
. WILLINGNESS TO TAKE MICRO INSURANCE IN THE FUTURE
Table 4.16 Willingness to take Micro Insurance in the future
Particulars No. of Respondents Percentage ofRespondents
Yes 129 83.23
No 26 16.77
Total 155 100
Source: Primary data
The table 4.16 represents that, out of the total respondents, 91.61% of the
respondents like to take the micro insurance policy in the future and 8.39%
respondents do not welcome the micro insurance policy. This policy has designed
according to the needs and standard of living of low income people. Thus, most of
respondents are low income people and they are ready to purchase the micro
insurance policy in future. Few respondents are male respondents as well as the
middle income people. Since, they are not ready to purchase the micro insurance
policy.
MICRO INSURANCE BENEFI1S 10 WARDS POLICYHOLDERS71
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
• MICRO INSURANCE COVERAGE OF ANTICIPATED RISK
Table 4.17 Micro Insurance covera ge of anticinated risk
Particulars
Yes
No
Total
Source: Primary data
No. of Respondents
133
22
155
Percentage of
Respondents
85.81
14.19
100
The table 4.17 shows that, out of the 155 respondents, 85.81% of the
respondents feel that the micro insurance policy covers the anticipated risk and
14.19% of the respondents feel that the micro insurance policy does not cover the
anticipated risk. The risk is not fully offset by the micro insurance but it is reducing
their risk in life. Thus, the respondents felt that micro insurance partly covers their
risk.
. LEVEL OF SATISFACTION ON MICRO INSURANCE
Table 4.18 Level of Satisfaction on Micro Insurance
SI.Particulars HS S M DS HDS Mean
No. Score
1. Premium 79 38 24 11 3 4.15
2. Sum Assured 22 47 71 10 5 3.46
3. Mode of Payment 17 15 50 69 4 2.82
4. Loan facilities 0 0 0 137 18 1.88
5. Bonus benefits 29 12 67 32 15 3.05
6. Accidental benefits - 71 14 13 43 14 3.55
7. NGOs services 38 13 23 45 36 2.82
8. Insurance Company Services 13 38 11 60 33 2.60
Source: Primary data
HS-Highly Satisfied, 5- Satisfied, M- Moderate,
DS- Dissatisfied, HDS-Highly Dissatisfied.
Policy holders are satisfied on premium (4.15) because it has the low
premium. It is applicable to all people. They are moderately satisfied on sum
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS72
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
assured (3.46) because they feel it is a low sum assured and it's not enough to them.
They are moderately satisfied on bonus benefits (3.05) and accidental benefits (3.55).
Policy holders are dissatisfied on NGOs services (2.82) and Insurance company
services (2.60). Most of the policy holders are dissatisfied on mode of payment (2.82)
because it is one of the way for payment of premium through a mediator and some
respondents want direct payment. There is no loan facility (1.88) so they are highly
dissatisfied on loan facilities.
. PERCEPTION ON MICRO INSURANCE
Table 4.19 Perception on Micro Insurance
SI. MeanParticulars HA A M DA HDA
No. Score
1. Micro Insurance gives protection against 112 7 20 4 12 4.31
risk in life.
2. Creates savings habit within myself. 25 72 18 23 17 3.42
3. Provides long term benefits for me. 12 31 27 74 11 2.74
4. Provides loan facility on insurance policy 0 0 0 63 92 1.44
5. Gives additional benefits (bonus). 40 38 25 43 9 3.37
6. Able to pay the premium since it is low. 73 19 36 15 12 3.81
7. Sum Assured is enough for me. 48 6 21 51 29 2.95
8.Improves standard of life. 7 19 85 39 5 2.90
Source: Primary data
HA-Highly Agree, A-Agree, M-Moderate,
DA-Disagree, HDA- Highly Disagree.
Micro insurance gives protection against risk in life (4.31). It creates savings
habit within some respondents (3.42) a few respondents having bank savings. It
provides additional benefits during the policy term (3.37). The premium is based on
ability of the low income people (3.81). The premium is not satisfied to the middle
income and male respondents. It is not providing long term benefits (2.74) because
respondents felt *that it is a long term saving but it is a lumpsum benefit in future. The
policy has lowsum assured. Thus, the policy holders are dissatisfied on sum assured
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS 73
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
amount (2.95). Few respondents feel that micro insurance improves their standard of
life (2.90). There is no loan facility for payment of premium and loan on their micro
insurance policy (1.44).
PROFILE OF THE RESPONDENTS
. GENDER WISE CLASSIFICATION
Table 4.20 Gender wise Classification
Percentage ofParticulars No. of Respondents
Respondents
Male 19 12.26
Female 136 87.74
Total 155 100
Source: Primary data
The table 4.20 shows that, out of the 1 55 respondents, 87.74% of the
respondents are female and 12.26% of the respondents are male. Because, SHGs play
a vital role for the distribution of Micro Insurance policy. First, they make their group
members to take micro insurance policy. Then they approach the outsiders. SHGs
member are female. So that, more female members are acquiring micro insurance
policy and another reason is that it is exclusively designed for female than male but
they are also allowed to take insurance policy.
. MARITAL STATUSWISE CLASSIFICATION
Table 4.21 Marital Status wise Classification
Percentage ofParticulars No. of Respondents
Respondents
Married 116 74.84
Unmarried 31 20.00
Widow 7 4.52
Other (Widower) 1 0.64
Total 155 100
Source: Primary data
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Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
The table 4.21 represents that, Out of the 155 respondents, 74.84%
respondents are married, and 20% respondents are unmarried, 4.52% respondents are
widow and 0.64% respondents are widower. Married people have more needs and
expectations compared to other categories. Thus, Micro insurance is highly taken by
married people than other people.
. NUMBER OF FAMILY MEMBERS
Table 4.22 Number of Family Members
Particular No. of RespondentsPercentage of
Respondents
Below 3 16 10.32
4-6 109 70.32
Above 6 30 19.36
Total 155 100
Source: Primary data
The table 4.22 reveals that, out of the total respondents, 70.32% of the
respondents come under the category of 4-6 family members, 19.36% of the
respondents come under the category of above 6 family members and 10.32% of the
respondents come under the category of below 3 family members. Below 3 is taken as
small size family. 4-6 members are taken as medium size family. Above 6 members
are taken as large size family. Hence, category of 4-6 (i.e) member of Medium size
family is the ultimate user of Micro Insurance because they feel it is additional
savings for themselves. Small size family member prefer the bank savings than Micro
Insurance. Because already they have save their money in banks so, they feel that
bank savings is better than micro insurance policy.
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Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. EDUCATIONAL QUALIFICATION OF RESPONDENTS
Table 4.23 Educational Qualification of Respondents
Particulars No. of RespondentsPercentage of
Respondents
Primary 65 41.94
Secondary 59 38.06
Graduation 16 10.32
Post Graduation 7 4.52
Professional 0 0
Other 8 5.16
Total 155 100
Source: Primary data
The table 4.23 reveals that, out of the 155 respondents, 41.94% of the
respondents have completed primary education, 38.06% of the respondents have
finished their higher secondary education, 10.32% of the respondents have finished
Graduation, 5.16% of the respondents had other education qualification (Diploma
courses on Tailoring, Polytechnic), and 4.52% of the respondents have studied Post
Graduation and No respondents are professionals out of the total respondents.
From the table, it is inferred that Micro Insurance policy acquired by people
who have less education because, this research has taken the samples from the rural
areas like (Takkaramalpuram, Pottal, Vitalapuram, Arasakulam, Veeralaperunchelvi).
Thus, most of the respondents in this area are less educated people.
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Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. OCCUPATIONAL STATUS OF RESPONDENTS
Table 4.24 Occupational Status of Respondents
Percentage ofParticulars No. of Respondents
Respondents
Permanent job 7 4.52
Temporary job 32 20.64
Agriculture Production 68 43.87
Livestock breeding 15 9.68
Trade Activities 23 14.84
Service Provision 10 6.45
Total 155 100
Source: Primary data
The table 4.24 shows that, 43.87% of the respondents are involved in
agriculture production, 20.64% of the respondents are doing temporary job, 14.84%
of the respondents are involved in trade activities, 9.68% of the respondents are
involved in livestock breeding, 6.45% of the respondents are involved in service
provision (Tailoring Mart) and 4.52% of the respondents are having permanent job.
Very few respondents are having permanent job. Many respondents are wage
employees. Thus, Micro insurance suits for those who don't have a permanent job.
MICRO INSURANCE BEVEFI1S JOW-IRDS POLICYHOLDERS77
Chapter IV
ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
• INCOME LEVEL OF RESPONDENTS
Table 4.25 Income Level of Respondents
Percentage ofParticulars No. of Respondents
Respondents
Below Rs.5,000 114 73.55
Rs.5,001-Rs.10,000 29 18.71
Above Rs. 10,000 12 7.74
Total 155 100
Source: Primary data
The table 4.25 shows that, out of the 155 respondents, 73.55% of the
respondents are earning below Rs.5000, 18.71% of the respondents are earning
Rs.5001- Rs. 10000 and 7.74% of the respondents are earning above Rs. 10000.
Most of the respondents are daily wage people, beedi workers, farmers and
artisans. They cannot earn regular income. So that, many respondents come under
the category of below Rs.5000. Hence, many respondents are earning low level of
income which means Micro Insurance policy covers the low-income people.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
• INCOME LEVEL AND REASONS FOR SELECTION OF PREMIUM OPTION
H0: There is no association between the respondents income
level and Reasons for selection of premium option.
Table 4.26 Income and Reasons for selection of premium option
Particulars Below Rs.5000 Above Rs.5000 Total
Based on Comfortability 36 27 63
Based on Low Premium 39 7 46
Based on their Income 39 7 46
Total 114 41 1 155
Source: Primary data
Chi-Square Analysis
Calculated Value :13.67
Table Value : 5.991
Level of Significance : 5%
Degrees of freedom : 2
From the table 4.26, the association of income levels and reasons for selection
of premium option were analysed. There is association between the respondents
income level & the opinion expressed or reasons for selection of premium option
Because, calculated value (13.67) is more than table value (5.991). Hence, Null
hypothesis is rejected & Alternative hypothesis is accepted.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. GENDER AND SATISFACTION LEVEL ON PREMIUM
H0 : There is no association between the male and female
satisfaction level on premium
Table 4.27 Gender and Satisfaction level on premium
Highly HighlyParticulars Moderate Total
Satisfied Dissatisfied
Male 5 6 8 19
Female 112 18 6 136
Total 117 24 14 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 46
Table Value : 5.991
Level of Significance : 5%
Degrees of freedom : 2
From the table 4.27, the association between the male and female satisfaction
level on micro insurance premium is analysed. The null hypothesis is rejected &
Alternative hypothesis is accepted because the calculated value (46) is more than table
value (5.991). Hence, there is association between the male and female satisfaction
level on premium.
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Chapter IV
ANALYSIS ON POLICY hOLDERS OF MICRO INSURANCE
. GENDER AND SATISFACTION LEVEL ON SUM ASSURED
Ho: There is no association between the male and female satisfaction
level on sum assured.
Table 4.28 Gender and Satisfaction level on Sum Assured
Highly HighlyParticulars Moderate Total
Satisfied Dissatisfied
Male 5 5 9 19
Female 64 66 6 136
Total 69 71 15 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 31.59
Table Value :5.991
Level of Significance : 5%
Degrees of freedom : 2
In the table 4.28, the null hypothesis that, there is no association between the
male satisfaction level and female satisfaction level on sum assured is analysed. The
null hypothesis is rejected & Alternative hypothesis is accepted because the calculated
value (31.59) is more than table value (5.991). Thus, there is association between the
male and female satisfaction level on sum assured.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS81
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. GENDER AND SATISFACTION LEVEL ON MODE OF PAYMENT
H0: There is no association between the male and female
satisfaction level on mode of payment.
Table 4.29 Gender and Satisfaction level on Mode of Payment
Highly HighlyParticulars Moderate Total
Satisfied Dissatisfied
Male 8 5 6 69
Female 24 45 67 136
Total 32 50 73 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 5.9
Table Value : 5.991
Level of Significance: 5%
Degrees of freedom : 2
In the table 4.23, the null hypothesis that, there is no association between the
male and female satisfaction level on mode of payment is analysed.. The null
hypothesis is accepted. Because, the calculated value (5.89)) is less than table value
(5.991). Hence, there is no association between the male and female satisfaction level
on mode of premium payment.
MICRO INSURANCE BEvEP11S 10 WARDS POLICYHOLDERS82
Chapter IV ANAL YSIS ON POLICY HOLDERS OF MICRO INSURANCE
. GENDER AND SATISFACTION LEVEL ON ACCIDENTAL BENEFITS
H0: There is no association between the male and female
satisfaction level on accidental benefits
Table 4.30 Gender and Satisfaction level on Accidental Benefits
Highly HighlyParticulars Moderate Total
Satisfied Dissatisfied
Female 77 7 52 136
Male 8 6 5 19
Total 85 13 57 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 10.55
Table Value :5.99 1
Level of Significance : 5%
Degrees of freedom : 2
From the table 4.30, the null hypothesis that, there is no association between
male and female satisfaction level on accidental benefits is analysed.. The null
hypothesis is rejected & alternative hypothesis is accepted because, the calculated
value (10.55) is more than table value (5.991). Hence, there is association between
the male and female satisfaction level on accidental benefits.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS83
Chapter IV
ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. GENDER AND SATISFACTION LEVEL ON BONUS BENEFITS
Ho: There is no association between the male and female
satisfaction level on bonus benefits.
Table 4.31 Gender and Satisfaction level on Bonus Benefits
Highly HighlyParticulars Moderate Total
Satisfied Dissatisfied
Male 7 5 7 19
Female 34 62 40 136
Total 1 41 67 47 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 2.37
Table Value :5.99 1
Level of Significance : 5%
Degrees of freedom : 2
In the table 4.3 1, the null hypothesis that, there is no association between the
male and female satisfaction level on bonus benefits is analysed. The null hypothesis
is accepted. Because, the calculated value (2.37) is less than table value (5.991).
Hence, there is no association between the male and female satisfaction level on
bonus benefits.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS84
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. GENDER AND SATISFACTION LEVEL ON NGOS SERVICES
H 0 : There is no association between the male and female
satisfaction level on NGOs services.
Table 4.32 Gender and Satisfaction level on NGOs services
Highly HighlyParticulars Moderate Total
Satisfied Dissatisfied
Male 5 5 9 19
Female 46 18 72 136
Total 51 23 81 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 1.83
Table Value : 5.991
Level of Significance: 5%
Degrees of freedom : 2
From the table 4.32, the null hypothesis that there is no association between
the male and female satisfaction level on NGOs services is analysed. The null
hypothesis is accepted. Because, the calculated value (1.83) is less than table value
(5.991). Hence, there is no association between the male satisfaction and female
satisfaction level on NGOs service.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS85
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
. GENDER AND SATISFACTION LEVEL ON INSURANCE COMPANY SERVICES
H0 : There is no association between the male and female
satisfaction level on Insurance Company Services.
Table 4.33 Gender and Satisfaction level on Insurance Company Services
Highly HighlyParticulars Moderate Total
Satisfied Dissatisfied
Male 8 5 6 19
Female 43 6 87 136
Total 51 11 93 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 20.93
Table Value :5.991
Level of Significance : 5%
Degrees of freedom : 2
In the table 4.33, the null hypothesis that, there is no association between the
male and female satisfaction level on Insurance Company services is analysed. The
null hypothesis is rejected & Alternative hypothesis is accepted because the calculated
value (20.93) is more than table value (5.991). Hence, there is association between
the male and female satisfaction level on Insurance Company services.
MICRO INSURANCE BENEFiTS TOWARDS POLICYHOLDERS
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. WILLINGNESS TO TAKE MICRO INSURANCE IN THE FUTURE AND PERCEPTION ON
MICRO INSURANCE GIVES PROTECTION AGAINST RISK
H0 : There is no association between the policyholders willingness
to take micro insurance in the future and perception on micro
insurance gives protection against risk.
Table 4.34 Willingness to take micro insurance in the future and
Perception on micro insurance gives protection against risk.
Willingness to take Highly HighlyModerate Total
Micro insurance Agree Disagree
Yes 113 9 7 129
No 6 11 9 26
Total 119 20 16 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 51.64
Table Value : 5.991
Level of Significance : 5%
Degrees of freedom : 2
From the table 4.34, the null hypothesis that, there is no association between
the policy holder's willingness and perception on micro insurance gives protection
against risk is analysed. The null hypothesis is rejected & Alternative hypothesis is
accepted because the calculated value (51.64) is more than table value (5.991). Thus,
there is association between the policyholder's willingness to take micro insurance in
the future and perception on micro insurance gives protection against risk.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
. WILLINGNESS TO TAKE MICRO INSURANCE IN THE FUTURE AND PERCEPTION ON
MICRO INSURANCE CREATES SAVINGS HABIT
H0: There is no association between the willingness to take
micro insurance in the future and perception on micro
insurance creates saving habit within themselves.
Table 4.35 Willingness to take micro insurance in the future and
Perception on micro insurance creates savings habit
Particulars Highly Agree ModerateHighly
TotalDisagree
Yes - 89 13 27 129
No 8 5 13 26
Total 97 18 40 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 12.62
Table Value : 5.991
Level of Significance : 5%
Degrees of freedom : 2
In the table 4.35, the null hypothesis that, there is no association between the
policy holder's willingness and perception on micro insurance creates savings habit is
analysed. The null hypothesis is rejected & Alternative hypothesis is accepted
because the calculated value (12.62) is higher than table value (5.991). Thus, there is
association between the policy holder's willingness to take micro insurance in the
future and perception on micro insurance creates savings habit within themselves.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS88
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
. WILLINGNESS TO TAKE MICRO INSURANCE IN THE FUTURE AND PERCEPTION ON
LONG TERM BENEFITS
Ho: There is no association between the policyholders
willingness to take micro insurance in the future and
perception on long term benefits.
Table 4.36 Willingness to take micro insurance in the future and
Perception on long term benefits
Particulars Highly Agree ModerateHighly
TotalDisagree
Yes 37 22 70 129
No 6 5 15 26
Total 43 27 85 155
Source: Primary data
Chi - Square Analysis
Calculated value : 0.54
Table Value : 5.991
Level of Significance : 5%
Degrees of freedom : 2
From the table 4.36, the null hypothesis that, there is no association between
the willingness to take micro insurance in the future and perception on long term
benefits is analysed. The null hypothesis is accepted. Because the calculated value
(0.54) is less than table value (5.991). Hence, there is no association between the
willingness to take micro insurance in the future and perception on long term benefits.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS89
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
. WILLINGNESS TO TAKE MICRO INSURANCE IN THE FUTURE AND PERCEPTION
ON ADDITIONAL BENEFITS
H0 : There is no association between the willingness to take
micro insurance in the future and perception on
additional benefits.
Table 4.37 Willingness to take micro insurance in the future and
Perception on additional benefits
Particulars Highly Agree ModerateHighly
TotalDisagree
Yes 73 18 38 129
No 5 7 14 26
Total 78 25 52 155
Source: Primary data
Chi - Square Analysis
Calculated Value: 11.97
Table Value : 5.991
Level of Significance: 5%
Degrees of freedom : 2
In the table 4.37, the null hypothesis that, the willingness to take micro
insurance in the future and the perception on additional benefits is analysed. The null
hypothesis is rejected & Alternative hypothesis is accepted because, the calculated
value (11.97) is more than table value (5.991). Hence, there is association between
the willingness to take micro insurance in the future and perception on additional
benefits.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS 90
Chapter IV ANAL ISIS ON POLICY HOLDERS OF MICRO INSURANCE
• WILLINGNESS TO TAKE MICRO INSURANCE IN THE FUTURE AND PERCEPTION ON
ABLE TO PAY THE PREMIUM
H 0 : There is no association between the willingness to take the
micro insurance in the future and perception on able to pay
the premium.
Table 4.38 Willingness to take micro insurance in the future and
Perception on able to pay the premium
Particulars Highly Agree ModerateHighly
TotalDisagree
Yes 88 28 13 129
No 5 8 13 26
Total 93 36 26 155
Source: Primary data
Chi-Square Analysis
Calculated Value 33.26
Table Value 5.99 1
Level of Significance : 5%
Degrees of freedom 2
From the table 4.38, the null hypothesis that, there is no association between
the willingness to take micro insurance in the future and perception on able to pay the
premium is analysed. The null hypothesis is rejected & Alternative hypothesis is
accepted. Thus, there is association between the willingness to take micro insurance
and perception on able to pay the premium.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS91
Chapter IV ANALYSIS ON POLICY HOLDERS OF MICRO INSURANCE
• WILLINGNESS TO TAKE MICRO INSURANCE IN THE FUTURE AND PERCEPTION ON
SUM ASSURED
H0 : There is no association between willingness to take the
micro insurance in the future and perception on sum
assured.
Table 4.39 Willingness to take micro insurance in the future and
Perception on Sum Assured
Particulars Highly Agree ModerateHighly
TotalDisagree
Yes 46 14 69 129
No 8 7 Ill 26
Total 54 21 80 155
Source: Primary data
Chi-Square Analysis
Calculated Value : 3.28
Table Value : 5.991
Level of Significance : 5%
Degrees of freedom 2
In the table 4.39, the null hypothesis that, the willingness to take micro
insurance in the future and perception on sum assured is analysed. The null
hypothesis is accepted. Because, the calculated value (3.28) is less than table value
(5.991). Hence, there is no association between the willingness to take micro
insurance in the future and perception on sum assured.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS
Chapter IV ANALYSIS ON POLICYHOLDERS OF MICRO INSURANCE
. WILLINGNESS TO TAKE MICRO INSURANCE IN THE FUTURE AND PERCEPTION ON
IMPROVED STANDARD OF LIFE.
H0: There is no association between the willingness to take
micro insurance in the future and perception on improves
standard of life.
Table 4.40 Willingness to take micro insurance in the future and
Perception on Improves Standard of life
Particulars Highly Agree ModerateHighly
TotalDisagree
Yes 21 79 29 129
No 5 6 15 26
Total 26 85 44 155
Source: Primary data
Chi-Square Analysis
Calculated Value 16.64
Table Value : 5.99 1
Level of Significance :5%
Degrees of freedom : 2
In the table 4.40, the null hypothesis that, the willingness to take micro
insurance in the future and perception on improves standard of life is analysed. The
null hypothesis is rejected & Alternative hypothesis is accepted. Hence, there is
association between the willingness to take micro insurance in the future and
perception on improves standard of life.
MICRO INSURANCE BENEFITS TOWARDS POLICYHOLDERS 93