ACKNOWLEDGEMENT A researcher venture to accept the challenging task only when he is fortunate enough to receive in plenty the inspiration and blessing of enlightened teachers and guides who patronize the students with benevolent spirit of magnanimity. I wish to express my gratitude and sincere thanks to my major advisor Miss.Manpreet Kaur lecturer in Bhutta College of Engineering & technology, Bhutta (Ludhiana) under whose able guidance this project is completed. My cordial and sincere thanks are also due to all faculty and staff members of institute for their willing support and co-operation during my study. I shall fail in my duties I do not acknowledge the generous help , co- operation and valuable suggestions received from my friends during courses of study. ( BALWINDER SINGH ) CERTIFICATE
Transcript
ACKNOWLEDGEMENT
A researcher venture to accept the challenging task only when he is fortunate enough to receive in plenty the inspiration and blessing of enlightened teachers and guides who patronize the students with benevolent spirit of magnanimity.
I wish to express my gratitude and sincere thanks to my major advisor Miss.Manpreet Kaur lecturer in Bhutta College of Engineering & technology, Bhutta (Ludhiana) under whose able guidance this project is completed. My cordial and sincere thanks are also due to all faculty and staff members of institute for their willing support and co-operation during my study. I shall fail in my duties I do not acknowledge the generous help , co-operation and valuable suggestions received from my friends during courses of study.
( BALWINDER SINGH )
CERTIFICATE
This is to certify that the study entitled “Customer satisfaction & comparison between LIC (Public Sector) & ICICI Prudential Life Insurance” submitted for the degree of Master of Business Administration (MBA) to Bhutta College of Engineering & Technology, Ludhiana, affiliated to Punjab Technical University, Jalandhar is a bonafied research work carried out by Mr.Balwinder Singh under my guidance and supervision and no part of this project has been submitted for any other degree.
The assistance and help received during the course of investigation have been fully acknowledged.
Major Field- MarketingMinor Field- Finance
Miss. Manpreet KaurLecturer of Management
Bhutta College of Engineering & Technology.
A# BRIEF HISTORY OF INSURANC
CHAPTER-1“INTRODUCTION
TO LIC &
ICICI PRUDENT.
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance,
and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
B#Introduction to LIC of India
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the Corporate office. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience.
TECHNOLOGY OF LIC
LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years.
1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950’s were phased out in 1980’s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990’s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies.
FRONT END OPERATIONS
With a view to enhancing customer responsiveness and services , in July 1995, LIC started a drive of On Line Service to Policyholders and Agents through Computer. This on line service enabled policyholders to receive immediate policy status report , prompt acceptance of their premium and get Revival Quotation, Loan Quotation on demand. Incorporating change of address can be done on line. Quicker completion of proposals and dispatch of policy documents have become a reality. All our 2048 branches across the country have been covered under front-end operations. Thus all our 100 divisional offices have achieved the distinction of 100% branch computerisation. New payment related Modules pertaining to both ordinary & SSS policies have been added to the Front End Package catering to Loan, Claims and Development Officers’ Appraisal. All these modules help to reduce time-lag and ensure accuracy.
METRO AREA NETWORK
A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in November, 1997, enabling policyholders in Mumbai to pay their Premium or get their Status Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the city. The System has been working successfully. More than 10,000 transactions are carried out over this Network on any given working day. Such Networks have been implemented in other cities also.
WIDE AREA NETWORK
All 7 Zonal Offices and all the MAN centres are connected through a Wide Area Network (WAN). This will enable a customer to view his policy data and pay premium from any branch of any MAN city. As at November 2005, we have 91 centers in India with more than 2035 branches networked under
INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)
IVRS has already been made functional in 59 centers all over the country. This would enable customers to ring up LIC and receive information (e.g. next premium due, Status, Loan Amount, Maturity payment due, Accumulated Bonus etc.) about their policies on the telephone. This information could also be faxed on demand to the customer.
LIC ON THE INTERNET
Our Internet site is an information bank. We have displayed information about LIC & its offices . Efforts are on to upgrade our web site to make it dynamic and interactive.The addresses/e-mail Ids of ur Zonal Offices, Zonal Training Centers, Management Development Center, Overseas Branches, Divisional Offices and also all Branch Offices with a view to speed up the communication process.
PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET
(You have to register for these services)LIC has given its policyholders a unique facility to pay premiums through Internet absolutely free and also view their policy details on Internet premium payments.There are 11 service providers with whom L I C has signed the agreement to provide this service.
LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years.
1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950’s were phased out in 1980’s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990’s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies.
FRONT END OPERATIONS
With a view to enhancing customer responsiveness and services , in July 1995, LIC started a drive of On Line Service to Policyholders and Agents through Computer. This on line service enabled policyholders to receive immediate policy status report , prompt acceptance of their premium and get Revival Quotation, Loan Quotation on demand. Incorporating change of address can be done on line. Quicker completion of proposals and dispatch of policy documents have become a reality. All our 2048 branches across the country have been covered under front-end operations. Thus all our 100 divisional offices have achieved the distinction of 100% branch computerisation. New payment related Modules pertaining to both ordinary & SSS policies have been added to the Front End Package catering to Loan, Claims and Development Officers’ Appraisal. All these modules help to reduce time-lag and ensure accuracy.
METRO AREA NETWORK
A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in November, 1997, enabling policyholders in Mumbai to pay their Premium or get their Status Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the city. The System has been working successfully. More than 10,000 transactions are carried out over this Network on any given working day. Such Networks have been implemented in other cities also.
WIDE AREA NETWORK
All 7 Zonal Offices and all the MAN centres are connected through a Wide Area Network (WAN). This will enable a customer to view his policy data and pay premium from any branch of any MAN city. As at November 2005, we have 91 centers in India with more than 2035 branches networked under WAN.
INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)
IVRS has already been made functional in 59 centers all over the country. This would enable customers to ring up LIC and receive information (e.g. next premium due, Status, Loan Amount, Maturity payment due, Accumulated Bonus etc.) about their policies on the telephone. This information could also be faxed on demand to the customer.
LIC ON THE INTERNET
Our Internet site is an information bank. We have displayed information about LIC & its offices . Efforts are on to upgrade our web site to make it dynamic and interactive.The addresses/e-mail Ids of ur Zonal Offices, Zonal
Training Centers, Management Development Center, Overseas Branches, Divisional Offices and also all Branch Offices with a view to speed up the communication process.
PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET
(You have to register for these services)LIC has given its policyholders a unique facility to pay premiums through Internet absolutely free and also view their policy details on Internet premium payments.There are 11 service providers with whom L I C has signed the agreement to provide this service.
INSURANCE PLAN
As individuals it is inherent to differ. Each individual’s insurance needs and requirements are different from that of the others. LIC?s Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.
Jeevan Anurag Komal Jeevan CDA Endowment Vesting At 21 Marriage Endowment Or
Educational Annuity Plan CDA Endowment Vesting At 18 Jeevan Kishore Jeevan Chhaya Child Career Plan Child Future Plan
Child Fortune Plus
Jeevan Aadhar Jeevan Vishwas
The Endowment Assurance Policy The Endowment Assurance Policy-Limited Payment Jeevan Mitra(Double Cover Endowment Plan) Jeevan Mitra(Triple Cover Endowment Plan) Jeevan Anand New Janaraksha Plan Jeevan Amrit
Jeevan Shree-I Jeevan Pramukh
The Money Back Policy-20 Years The Money Back Policy-25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Bima Bachat
The Whole Life Policy The Whole Life Policy- Limited Payment The Whole Life Policy- Single Premium Jeevan Anand Jeevan Tarang
Two Year Temporary Assurance Policy The Convertible Term Assurance Policy Anmol Jeevan-I Amulya Jeevan-I
Jeevan Saathi Plus Jeevan Saathi
Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.
Unit plans are investment plans for those who realise the worth of hard-earned money. These plans help you see your savings yield rich benefits and help you save tax even if you don't have consistent income.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide reach includes 1,960 branches (inclusive of 1,096 micro-offices), over 237,000 advisors; and 6 bancassurance partners.
For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.
INSURANCE PLAN OF ICICI PRUDENTIAL
.
ICICI Prudential has a wide array of insurance plans that have been designed with the philosophy that different individuals are bound to have differing insurance needs. The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors.
The primary objective of a pension plan is to help you provide for your financial needs in your post retirement years. You will find a Pension Planning Calculator on the site, meant to make your pension plan review as simple as possible. The calculator is the first step in your Pension Plan scheme, there are othe steps towards getting the Indian pension policy you need. Click here to know more about our pension plan solutions.
To study the customer satisfaction regarding LIC & ICICI Prudential Life Insurance.
To customer awareness about life insurances plans.
To study the satisfaction of customer regarding insurance plan that they taken from their companies.
To study satisfaction of better facilities of their insurance companies.
CHAPTER-3RESEARCH
METHODOLOGY
Research Methodology
Marketing is the backbone of the market. Research in common parlance refer to a search of knowledge. One can also define research as a scientific research for pertinent knowledge or information on a specific topic. This is a systematic and objective identification, collection data, analysis dissemination and use of information for the purpose of assisting management in decision making related the identification and solution of problem in the market.
The main object of my study is to review the consumer satisfaction related to the brand. Related to marketing strategies of both of the companies, I refer to the secondary data which I have collected from the various sources like internet site, news paper , articles and user of market.
And for other objective of my product of my project I have again gone through secondary data collection. Research based on primary sources such as dealer or wholesaler and or main source of employee of Shreyans industries ltd.
Types of Research
The basic types of research are as follows :-
Descriptive: - Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of description research is description at the state of affairs as it exists at present.
Analytical :- In the research has to use fact or information already available and analyze these to make a critical evaluation of the material.
Applied :- Research either be applied or fundamental research. Applied research aimed at finding a solution for immediate problems facing a society or industries or business organization.
Fundamental Research :- It is a research mainly concerned with generalization and with the formation of the theory. Research concerning some natural phenomenon or relating to pure mathematics are example of fundamental research.
Empirical Research :- Empirical research relies on experience or observation alone often without due regard for system and theory. Empirical research is appropriate when proof is sought that certain variable in some way.
Qualitative Research :- Qualitative research is specially important in the behavioral science where the aim is to discover the underlying motive of human behavior which make people like or dislike a particular thing.
CHARACTERSTICS OF RESEARCH
Research is very helpful in enhancing knowledge. Research is a systematic study about a particular problem. For detail enquiry, information is collected from primary and
secondary sources. Different research methods and statistical technique are used to
analysis the data.
RESEARCH DESIGN
Our research design is descriptive. To achieve research objective a questionnaire was developed. The questionnaire is a structured technique for data collection that consist of series of question written or verbal that a respondent answers.
SAMPLING DESIGN
UNIVERSE:- Insurance companies
SAMPLING UNIT:- LIC & ICICI Prudential
SAMPLING SIZE:- 100 Respondent
SAMPLING DESIGN:- Respondent are selected randomly.
SURVEY STRATEGY
In this project, personal interview method was adopted for data collection. I used to personally visit the office of insurance companies. This method was supposed to be most appropriate as:
There is low cost even when the universe is large and widely spread geographically.
Less chance of ambiguity in the information required. Clarification can be made on the spot. Chances of misinterpretations are less. Large sample can be made use of and result can be made more
reliable.
COLLECTION OF DATA
PRIMARY DATA:- The respondent were personally visited and interviewed and the data was collected with help of a questionnaire. The questionnaire was so designed so as to contain appropriate number of question and to satisfy or research objective. The questionnaire contained both open-ended and closed-ended questions. Special care was taken to ensure that question were simple.
SECONDARY DATA:- the secondary data was collected from magazine, records and manuals of the insurances companies.
DATA ANALYSIS
I have made analysis with the help of percentage method and used graph and doughnut charts to display the result of survey.
CHAPTER-4ANALYSIS
&INTERPRETATIO
N
Analysis and Interpretation
1. What is your occupation?
• Government Employ• Private Employ• Self Business • Others
Government Employ20%
Private Employ30%
Self Business40%
Others10%
Government Employ
Private Employ
Self Business
Others
Interpretation: There are 40% self Business, 30% private employ, 20% government employ & 10% are in other categories.
2. What is your current annual income?
• Below 50000• 50000 to 150000• 150000 to 300000• Above 300000
Below 50,00015%
50,000 to 150,00045%
150,000 to 300,00030%
Above 300,00010%
Below 50,000
50,000 to 150,000
150,000 to 300,000
Above 300,000
Interpretation: On doing survey there are about 45% respondent are whose income is b/w 50,000 to 150,000 typically belong to below middle families.
3. Are you filling annual income tax return?
• Yes• No
Yes65%
No35%
Yes
No
Interpretation: On doing survey 65% respondents are filling income tax return annually.
4. Do you know about insurance?
• Yes• No
0
10
20
30
40
50
60
70
80
Yes No
Respondents
Series1
Interpretation: 75% respondent are know about the Insurance.
5. Which scheme you choose to save your income tax?
• Post office scheme• Insurance scheme• Other scheme
Post Office Scheme40%
Insurance Scheme54%
Other Scheme6%
Post Office Scheme
Insurance Scheme
Other Scheme
Interpretation: 54% respondent are interested in insurance & 40% are interested in post office scheme.
6. Have you any life insurance plan ?
• Yes• No
Yes62%
No38%
Yes
No
Interpretation: 62% respondent have insurance plan of different insurance companies.
7. From which insurance company you have taken the plan?
• LIC of India• ICICI Prudential• Bajaj Alliance• HDFC Standard Life
LIC of India42%
ICICI Prudential20%
Bajaj Alliance10%
Both LIC & ICICI PRU28%
LIC of India
ICICI Prudential
Bajaj Alliance
Both LIC & ICICI PRU
Interpretation: 42% of respondent had taken from LIC & 20% had taken from ICICI & 28% respondent taken from both companies.
8. To whom you take the insurance plan in your family?
• Self• Spouse
• Children• Parents
Self 47%
Spouse13%
Children30%
Parents10%
Self
Spouse
Children
Parents
Interpretation: 47% respondent who are earner of family taken the insurance & 30% for their children’s 13% for their spouse & 10% for their parents.
9. Why are you trusted in LIC?
• Government • Low Premium• Low Risk• Better Facilities
Government65%
Low Premimum15%
Low Rick10%
No Extra Charge10%
Government
Low Premimum
Low Rick
No Extra Charge
Interpretation: 65% respondent are interested LIC due to Govt. Sector.
10. Why are you trusted in ICICI Prudential?
• Better Facilities• Growing Sector• High Income Return• Low Risk
Better Facilities52%
Growing Sector30%
High Income Return10%
Low Risk8%
Better Facilities
Growing Sector
High Income Return
Low Risk
Interpretation: 52% respondent are interested in ICICI due to they provide better facilites.
11. Why are you not choosing plan from LIC?
• Poor Services• Less Plans• Poor Infrastructure• Less Income Return
Poor Services48%
Less Plans6%
Poor Infrastructure32%
Less Income Return14%
Poor Services
Less Plans
Poor Infrastructure
Less Income Return
12. Why are you not choosing plan from ICICI PRU.?
• High Premium• Private Sector• Extra charges• Money Risk
High Premium20%
Private Sector42%
Extra Charges28%
Money Risk10%
High Premium
Private Sector
Extra Charges
Money Risk
13.From where you know about the plans of LIC & ICICI ?
• Insurance Agents• Friends• Media
Insurance Agents68%
Friends12%
Media20%
Insurance Agents
Friends
Media
14. Are you satisfied with plans & services of LIC?
• Yes• No
Yes78%
No22%
Yes
No
15. Are you satisfied with plans & services of ICICI Prudential?
