Lic

EXECUTIVE SUMMARY This report summarizes the results of the project done by Amanjeet Singh

Badesha a student of M.S.Ramaiah college of Arts, Science And Commerce, Bangalore

University supported by Life Insurance Corporation of India Bangalore

Today companies are facing their competition of this decade companies can

comfort their competition better if they can from a product and selling philosophy and

also meeting and satisfying customer needs. Companies need under stand the

determinants of customer value and satisfaction

Customers are satisfied when their expectations are met and delighted when their

expectations are exceeded. Satisfied customer sensitive and talk frequently about the

company. It involves building customer and not just building product.

It is also important to recognize that customer satisfaction is the best sought not

directly but as by product of customer problem solving customer satisfaction like

happiness is achieved by rendering substantial forms of assistance to rather than by direct

pursuit.

Customer satisfaction is central to the marketing concept with evidence of

strategic links between satisfactions and overall firm performs. It is now common to find

mission statements design around the satisfaction achievements in the market place.

Research on satisfaction has been commensurate with growing managerial

importance. Most studies have been conducted with in the overarching comparison

standards paradigms. Which posits that consumers hold pre-consumption product

standards from confirmation of disconfirmation perceptions combine these perspective

other than that of customer satisfaction paradigm, especially as examined through an

econometric of survey lens.

Although satisfaction has been conceptualized in terms of either a single

transaction of a series of interaction with a product over time. Whether the buyer is

satisfied after or before purchase depends on the offers performance in relation to the

buyer’s expectation.

M.S.R.C.A.S.C BANGALORE 1

“Satisfaction is a persons feeling of pleasures or disappointment resulting from

comparing a products perceived performance or out come in relation to his/her

expectation”.

Many companies are aiming for high satisfaction because consumers who are

just satisfied still find it easy to switch when better offer comes along. Those who are

highly satisfied are much less ready to switch.

High satisfaction or delight creates an emotional affinity with the brand, not

just a rational preference. The result is high customer loyalty.

How do buyers form their expectations? Their expectations are influenced by

their past buying experience friend and associates, advice the marketer and competitor’s

expectations and promises if marketer raises expectations to high the buyers likely to be

appointed.

For consumer central companies consumer satisfaction is both a global and a marketing tool. Companies that achieve high consumer satisfaction rating make sure that their target market bonus it.


CHAPTER 1

INTRODUCTION


INTRODUCTION With largest number of non-life insurance policies in force in the world,

Insurance happens to be a mega opportunity in India. It’s a business growing at the rate

of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with

banking services, it adds about 7 per cent of the country’s GDP. Gross premium

collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8

per cent of GDP.

Yet, nearly 80 per cent of Indian populations are without life insurance cover,

health insurance and non-life insurance continue to be below international standards. And

this part of the population is also subject to weak social security and pension systems

with hardly any old age income security. This it is an indicator that growth potential for

the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic

development as it provides long-term funds for infrastructure development and at the

same time strengthens the risk taking ability. It is estimated that over the next ten years

India would require investments of the order of one trillion US dollar. The Insurance

sector, to some extent, can enable investments in infrastructure development to sustain

economic growth of the country.

With a large capital outlay and long gestation periods, infrastructure projects

are fraught with a multitude of risks throughout the development, construction and

operation stages. These include risks associated with project implementation, including

geological risks, maintenance, commercial and political risks. Without covering these

risks the financial institutions are not willing to commit funds to the sector, especially

because the financing of most private projects is on a limited or non-recourse basis.

Insurance companies not only provide risk cover to infrastructure projects,

they also contribute long-term funds. In fact, insurance companies are an ideal source of


long-term debt and equity for infrastructure projects? With long-term liability, they get a

good asset-liability match by investing their funds in such projects.

IRDA regulations insurance companies to invest not less than 15 percent of

their funds in infrastructure and social sectors. International Insurance companies also

invest their funds in such projects.

Insurance is a federal subject in India. There are two legislations that govern the

sector- The Insurance Act- 1938 and the Act- 1999.

PRESENT SCENARIO:

The Government of India liberalized the insurance sector in March 2000 with

the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting

all entry restrictions for private players and allowing foreign players to enter the market

with some limits on direct foreign ownership. Under the current guidelines, there is a

proposal to increase this limit to 49 percent. Premium rates of most general insurance

policies come under the purview of the government appointed Tariff Advisory

committee.

The opening up of the sector is likely to lead to greater spread and deepening of

insurance in India and this may also include restructuring and revitalizing of the public

sector companies. A host of private Insurance companies operating in both life and non-

life segments have started selling their insurance policies since 2001.

NON-LIFE INSURANCE MARKET: In December 2000, the GIC subsidiaries were restructured as independent

insurance companies. At the same time GIC was converted into a national re-insurer. In

July 2002, Parliament passed a bill, de linking the four subsidiaries from GPresently there

are 12 general insurance companies with 4 public sector companies and 8 private

Insurers. Although the public sector companies still dominate the general insurance

business, the private players are slowly gaining a foothold. According to estimates,

private insurance companies have a 10 percent share of the market, up from 4 percent in

2001. In the first half of 2002, the private companies booked premiums worth Rs 6.24

billion. Most of the new entrants reported losses in the first year of their operation in

2001. Insurance costs constitute roughly around 1.2-2 percent of the total project costs.


Under the existing norms, insurance premium payments are treated as part of the fixed

costs. Consequently they are treated as pass-through costs for tariff calculations.

For Projects costing up to Rs. 1 Billion, the Tariff Advisory Committee sets the

premium rates, for Projects between Rs.1 billion and Rs. 5 billion the rates are set in

keeping with the committee’s guidelines, and projects above Rs15 billion are subjected to

re-insurance pricing. It is the last segment that has a number of additional products and

competitive pricing. Insurance, like project finance, is extended by a consortium normally

one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a

proportionate percentage of the premium. The other companies share the remaining risk

and premium. The policies are renewed usually on an annual basis through the invitation

of bids. Of late, with IPP projects fizzling out, the insurance companies are turning on

again to old hands such as NTPC, NHPC and BSES for business.

RE-INSURANCE BUSINESS:

Insurance companies retain only a part of the risk (less than 10 per cent)

Assumed by them, which can be safely borne from their own funds. The balance risk is

re-insured with other insurers. In effect, therefore, re-insurance is insurer’s insurance. It

forms the backbone of the insurance business. It helps to provide a better spread of risk in

the international market, allows primary insurers to accept risks beyond their capacity

settle accumulated losses arising form catastrophic events and still maintain their

financial stability.

While GIC’s subsidiaries look after, general insurance, GIC itself has been the

major reinsurer. Currently, all insurance companies have to give 20 per cent of their

reinsurance business to GIC. The aim is to ensure that GIC’s role, as the national reinsure

remains unhindered. However, GIC reinsures the amount further with international

companies such as Swiss (Switzerland), Munichre (Germany), and Royal (UK).

Reinsurance premiums have seen and exorbitant increase in recent years, following the

rice in threat perceptions globally.


LIFE INSURANCE MARKET: The Life Insurance market in India is an underdeveloped market that was only

tapped by the state owned LIC till the entry of private insurers. The penetration of life

insurance products was 19 percent of the total 400 million of the insurable population.

The state owned LIC sold insurance as a tax instrument, not as a product giving

protection. Most customers were under- insured with no flexibility or transparency in the

products. With the entry of the private insurers the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly

9 percent of the market in terms of premium income. The new business premium of the

12 private players has tripled to Rs. 1000 crore in 2002-03 over last year. Meanwhile,

state owned LIC’s new premium business has fallen.

Innovative products, smart marketing and aggressive distribution. That’s the

triple whammy combination that has enabled fledgling private insurance companies to

sign up Indian customers faster than anyone ever expected. Indians, who have always

seen life insurance as tax saving device, are now suddenly turning to the private sector

and snapping up the new innovative products on offer.

The growing popularity of the private insurers shows in other ways. They are

coining money in new niches that they have introduced. The state owned companies still

dominate segments like endowments and money back policies. But in the annuity or

pension products business, the private insurers have already wrested over 33 percent of

the market. And in the popular unit-linked insurance schemes they have a virtual

monopoly, with over 90 percent or the customers.

The private insurers also seem to be scoring big in other ways they are

persuading people to take out bigger policies. For instance, the average size of a life

insurance policy before privatization was around Rs.50, 000 has risen to about Rs.80,

000. But the private insurers are ahead in this game and the average size of their polices

is around Rs 1.1 Lakhs to Rs1.2 Lakhs-way bigger than the industry average.


STARTING OF INSURANCE INDUSTRY IN INDIA: Insurance industry has always been a growth-oriented industry globally. On the

Indian scene too, the insurance industry has always recorded noticeable growth vis-à-vis

other Indian industries.

Triton Insurance Co Ltd. was the first general insurance company to be

established in India in 1850, whose shares were mainly held by the British

The first general insurance company to be set up by an Indian was Indian

Mercantile Insurance Co. Ltd., which was established in 1907. There emerged many a

player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of

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

Corporation of India (GIC) and its 4 subsidiaries undertook the post-nationalization

general insurance business.

Oriental Insurance Company Limited

New India Assurance Company Limited

National Insurance Company and

United India Insurance Company Limited

Towards the end of 2000, the relation ceased to existed and the four Companies

are, at present, operating as independent companies. The Life Insurance Corporation

(LIC) was established on 01.09.1956 and had been the sole corporation to write the life

insurance business in India.

The Indian insurance industry saw a new sun when the Insurance Regulatory &

Development Authority (IRDA) invited the applications for registration as insurers in

August 2000. With the liberalization and opening up of the sector to private players, the

industry has presented promising prospects for the coming future. The transition has also

resulted into introduction of ample opportunities for the professionals including

Chartered Accountants.


The Indian Insurance industry is featured by the attributes: Low market penetration;

Ever-growing middle class component in population.

Growth of consumer movement with and increasing demand for better insurance

products;

Inadequate application of information technology for business.

Adequate fillip from the Government in the form of tax incentives to the insured, etc.

The industry formations need to keep vigil on these characteristics of the Indian

market and formulate their strategies to entail maximum contribution to the output of the

sector.

The Indian life and non-life insurance business accounted for merely 0.42

percent of the world’s life and non-life business in 1997. The figures of the basic

parameters of the industry’s performance viz. Insurance Density and Insurance

Penetration also are evident of the hitherto existing low-yield Indian market conditions.

The term “Insurance Penetration” broadly measures the contribution of the

insurance industry in relation to a nation’s entire economic productivity. The figure of

premium vis-à-vis the GDP of 1999 stood at 0.54 percent for non-life insurance business

and 1.39 percent for the life insurance business. The term “Insurance Density” reflects

the Insurance purchasing power. The premium per capital in India amounted to US $ 2.40

for non-life insurance and US $ 6.10 for life insurance in 1999 but with the deregulation

of the sector, a sea change in the scene is most likely.


WHAT CAN THE INSURANCE INDUSTRY DO?

Educate policyholders about financial risks associated with global warming.

Support stricter building code enforcement and other measures that minimize the

impact of severe weather.

Promote energy efficiency and renewable to cut greenhouse gases and reduce

losses from natural disasters.

Lead by example as a voluntary member of EPA’s ENERGY STAR® Program

and the Rebuild America Program.

Selecting the right insurance company is an important financial decision. One

important consideration is the financial strength of the insurer, if the company cannot pay

future claims or benefits, other considerations become unimportant.

Financial strength ratings represent an analysis of a wide variety of risks that

could affect an insurer’s long-term survival. Insurance companies can ail or cease to

operate due to inadequate financial capabilities, Investment companies help the small

savers get the benefits of investment in high growth corporate securities by pooling their

savings\ and investing the same in a professional way, these investment companies raise

funds through issue of shares and debentures accepting fixed deposits issuing certificates

of cash etc.


1.1 BACKGROUND OF THE STUDY The Life Insurance market in India is an underdeveloped market that was only

tapped by the state owned LIC till the entry of private insurers. The penetration of life

insurance products was 19 percent of the total 400 million of the insurable population.

Being the market leader in the insurance sector the LIC have to satisfy their customer to

remain in the position. The study of customer satisfaction is done to get a picture about

the whether the customer is satisfy with insurance given by the company and to identify

the which age group of people are mostly under taking the insurance policy and what are

there income groups, and what are the other benefits the are looking forward for the

LIC,and they have the brand awareness about the company .

1.2 STATEMENT OF THE PROBLEM

Satisfaction of the customer is very important for any industry or company to

service in the market .the present study is all about “customer satisfaction towards lic

products”. this is an analytical and empirical study about consumer satisfaction survey

towards lic products. this study is made to know various factors, which satisfy and

dissatisfy consumer and to know various problems involved in relating to the insurance

plans, which is faced by the consumer.

1.3 NEED AND IMPORTANCE, SCOPE &LIMITATION OF STUDY

As the study is related to “customer satisfaction towards LIC products “. We

consider LIC policyholders as the customers who belong to the Bangalore city because

those who have the LIC policy can provide a deeper perspective of their experience and


preferences and also the information about the services of the LIC office and the feature

of the policy that they would like for the future services and the policies to have

LIMITATIONS OF STUDY

The customers of LIC policies were selected from Bangalore city and hence the

study is restricted to Bangalore city.

Some customers who were busy were not able to provide me the information

about the problems faced by them.

Responses given by the respondents may be biased sometimes.

The study is biased on certain assumptions like the responses of one-person

probly more peoples views.

Since descriptive research method was used for this project study, the study mightSince descriptive research method was used for this project study, the study might

not hold well over a period of time because of evenot hold well over a period of time because of ever r changing attitudes andchanging attitudes and

behavioral changes of retailers and consumers. behavioral changes of retailers and consumers.

1.4 OBJECTIVES OF THE STUDY To know the satisfaction level of customers.

To suggest LIC Of India regarding customer satisfaction level & help in forming

effective marketing strategies

To identify the present customer for new service

To understand the awareness level of customer regarding various LIC schemes


1.5 COMPANY PROFILE The corporation has been established by an act of parliament, which received the

assent of the president on 18th June 1956. Act came into force on 1july 1956 and the

corporation is having exclusive privilege of carrying on life insurance business in India.

The corporation is an autonomous body and has necessarily to run on sound business

principals.

The corporation which was mainly transiting insurance on individual lives, later

on started doing insurance on group bases under its pension and group schemes portfolio.

The group schemes provide life insurance cover at a very low cost and a large number of

needy people are given life insurance protection under group schemes

In consultation with the central government, LIC has step up a social security

fund out of the funds transferable to central govt after valuation with effect from 15-8-87.

this fun is utilized to provide social security for the weaker and vulnerable sections of

social. Families of 1 crore landless agricultural laborers are now provided free life

insurance cover for Rs 2000/- each under the scheme over crore 1.5 beneficiaries of the

integrated rural development programmes also provided free insurance cover of Rs

5000/- under the scheme which effects from 1-4-88.beside ,the social security fund

subsides 50% of the premium insurance cover of Rs5000/- on handloom

viewers ,rickshaw pullers and drivers and such other socially disadvantageous section of

the society during 1989 , corporation diversified its activities in many directions LIC

mutual funds was setup as a separate trust with a view to providing easy necessability of

the investment area including stock market in the country to one and all, especially small

investors in rural and urban areas . The corporation launched LIC housing finance ltd on

19-6-89, as it ‘s subsidiary along with UTI, IFCI and ICICI with a with a view to

making a greater thrust


in the housing field by providing long –term finance to help realize the objectives of the

national housing policy. An offshore company, LIC international was incorporated in

Bahrain in July 1989 to transact life insurance business amongst non-resident Indian

nationals in Middle East countries.

WHAT IS INSURANCE Insurance is a financial service for collecting the saving of the public and

providing them risk coverage .the risk may be certain events like

death ,retirement ,pension, education ,marriage ,etc, or uncertain events ,like

theft ,accident fire, ill health etc.Marine insurance is one category which covers risk of

sea voyage , of shipping ,cargo, etc.motorcar,scooter,and two-wheeler and three wheelers

are also provided with insurance ,called vehicle insurance ,building insurance from

theft ,etc and crop insurance is the other categories of risk coverage introduced by LIC

WHY INSURANCE IS NEEDED They help providing protection to investors from some certain or uncertain risks.

These are contractual savings, which the investors are forced to provide for this will

constitute voluntary involvement in savings, but turn into compulsory or forced savings

through contractual obligation. These are generally medium and long-term savings and

the investment of this type provide a low return but needed risk coverage of

life,accident,fire etc.GROWTH OF LIFE INSURANCE BUSINESS

As a financial intermediary, we have the interest in the growth of LIC in respect

of its efforts to mobilize savings .the volume of funds at this disposal, and the magnitude

of its total investment.

Today LIC is one of the most important financial intermediaries in India. Savings

of the house-hold sector in type LIC investment media as a percentage of total house-hold

savings in the form of financial assets increased from 5.5% in 1956-57 to 12.3% in 1960-

61 there after, it declined to 8% in 1965 -66 it again increased slightly to 9.8% in 1970-

71 and it was about 7.0% in 1988-89 .from a different angle, the growth of LIC’s

presented in table as fallows:


INVESTMENT PATTERNS

1. Electricity and water drainage

2. Mortgage loans

3. Loans to the policyholders

PROMOTIONAL BENEFITS OF LICON VESTING:

The notional cash option together with reversionary Bonuses and add final

additional Bonuses with or without 25% communication will be compulsory converted

into annuity having following options:

ANNUITY OF LIFE: With guaranteed period of 5 p.a. 15, 20 years joint life and last survivor annuity

to the annuitant and his/her spouse, under which annuity payable to the spouse on death

of the purchase price. Life3 annuity with annuities increasing at simple rate of 3% per

annum. The annuity rate will be that available under the version of the New Jeevan

Akshaya plan current at the rate of vesting. Aggregate of 3% will be available on the

purchase price of the New Jeevan Akshaya policy. Option for the annuity type is to be

exercised at least 6 months before the date of vesting.

DURING DEFERMENT:

A term rider option will be available. On the death of the policy holder who has

opted for the term assurance rider, the term assurance sum assured along with all

premiums paid up to the date of death accumulated at the rate of 5% p.a. compounding or

at a such rates as decided by the corporation from time to time, will be paid too the

nominee. Term rider option will be available only on annual premium plan.

REBATES:


Premium will be payable yearly, quarterly or monthly (including sss) or by

single premium. Mode rebates @ 2.6%, 1.3% and 0.5% of the tabular annual premium

will be available for yearly, half-yearly and quarterly premiums.

PAID UP, GUARANTEED AND SPECIAL SURRENDER VALUE

FOR ANNUAL PREMIUM PLANS:

The guaranteed surrender value will be equal to 90% of all premiums paid

excluding the first year premium, all term assurance premium and extra premium (if any).

This will be allowed after two full years have been completed from the date of

commencement. However, the policy cannot be surrendered after the annuity vests.

FOR SINGLE PREMIUM PLAN:

The guaranteed surrender value will be 90% of the single premium paid.

Surrender will be allowed 2 years after the commencement of the policy.

SERVICES PROVIDED BY LIC

1. GUARANTEED SURRENDER VALUE

2. LOAN

3 ACCIDENT BENEFIT

4 SALARY SAVING SCHEME

5. ALTERATIONS:

6. DUPLICATE POLICY

7. REVIVALS

8. ORDINARY REVIVAL

9. REVIVAL ON NON-MEDICAL BASIS

10. REVIVAL ON MEDICAL BASIS


As it is the most reputed company of India exciting since 1956 and as the times

passes the awareness among the people also increase and started doing there insurance,

now the different policies have came into the market and having the different benefits

providing according to the needs of the customer.

1.6 Respondent’s profile

Respondent of different age group has different perception towards life, so according to

the perception they are doing there insurance. In the survey, I found there there are more

people in the age group between 20 to 30 are more with the average salary of re10000 to

15000and majority of people belongs to the business class and employees who are much

concern about the Insurance Policies

Respondent Profile is as follows –

1 Businessman

2 Employees

3 Housewives’s

4 Students


CHAPTER 2

REVIEW OF LITERATURE


2.1 PURPOSE:

1. The purpose of study is the customer satisfaction towards the company.

2. It is done to get a picture about their commitment towards customer satisfaction,

3.For developing stronger brands and loyalty with ultimate customer and solving their

problems.

2.2 METHODOLOGY: SAMPLE SIZE: A part of the population, which is selected for obtaining the

necessary information. It refers to the number of people surveyed for this topic. In this

case 100 people were contracted and response drawn..

TECHNIQUE: It is the way in which the samples are selected.

Convenience Sampling

Convenience Sample is one in which the only criterion for selecting the sampling units is

the convenience of the sampler.

SOURCES OF DATA COLLECTION:

The required data was collected by using both

1) PRIMARY DATA:

Questionnaire

Structured Direct Interviews

2) SECONDARY DATA:

Journals

Information from company through reports

internet


2.3 REFERENCE OF BOOKS, JOURANLS, MAGAZINE &

PREVIOUS REPORT ON THE SAME TOPIC

1.MARKETING MANAGEMENT: BY PHILIP KOTLER

2.RESEARCH METODOLOGY: BY C.R.KOTARI

3.CONSUMER BEHAVIOUR: LEON SCHIFFMAN

CHAPTER 3

METHODOLOGIES


3.1 Types of Research :

The type of research used in this project is a Descriptive research design. The

major purpose of descriptive research is a description of the state of the affairs, as it

exists at present. Thus a Descriptive study is a fact-finding investigation with adequate

interpretation. It is the simplest type of research. It focuses on particular aspects or

dimensions of the problem studied. It is so designed that it gathers descriptive

information and provides information for formulating more sophisticated studies. There

is a cause effective relationship.

The criteria for selecting this particular design are that, the problem of the

project must be described and not arguable. The data collected is amenable to statistical

analysis and has accuracy and significance. It is possible to develop valid standards of

comparison. It lends itself to the verifiable procedure of collection and analysis of data.

Descriptive study objectives aim at identifying the various characteristics of a

company problem under study. It can reveal potential relationships between variables

with exploratory research.

3.2 SamplingTecquniue :


It is the way in which the samples are selected.

Convenience Sampling

Convenience Sample is one in which the only criterion for selecting the sampling units is

the convenience of the sampler.

3.3 Sample size: A part of the population, which is selected for obtaining the necessary

information. It refers to the number of people surveyed for this topic. In this case 100

people were contracted and response drawn.

3.4 Sample description – A Sampling unit is the basic unit containing the elements of the population

to be sampled. It refers to individuals who are to be surveyed in the study it is the

customer who is having the LIC policy from Bangalore LIC branch office.

3.5 Instrumentation Techniques: The project is a survey and hence the instrumentation techniques used is

mainly questionnaire. The data collected is analyzed and so tabulation technique is used,

and graphs are also prepared for the data tabulated.

3.6 Collection of Data:The required data was collected by using both

1) PRIMARY DATA:

Questionnaire

Structured Direct Interviews

2) SECONDARY DATA:

Journals

Information from company through reports

internet

PRIMARY DATA/ SURVEY DATA:

Survey research is the systematic gathering of information from respondents

for the purpose of understanding and/or predicting some aspect of the behavior of the


population of interest. Primary data was collected by using Questionnaire and Structured

Direct Interviews.

QUESTIONNAIRE:

In survey mode of data collection, questionnaire is a popular means of data

collection instrument. A questionnaire uses a structured, standardized format of data

collection to record verbal responses to questions. Particularly when the population to be

covered is very large and the study wishes to collect data about specific aspects of

sumers’ awareness, attitude, opinions, prior and present behavior, it is recommended to

design a questionnaire. The exact format and sequence of the questionnaire will greatly

depend on the study objective and the method of administration of the questionnaire.

Advantages of questionnaires:

(i) Versatility: The respondents can be probed on a wide diversity of issues by

questioning.

(ii) Speed and Cost: It is usually cheaper and faster than observing.

(iii) Ease of Communication: Since the questions are formulated in advance, all

the required information can be obtained in an orderly and systematic manner.

The exact wording of the questions can be carefully worked out to reduce the

possibility of ambiguity and misunderstandings.

(iv) Control: Since same questions are put before all respondents in the same

order, it offers maximum control on the interviewing process and information

content.

Secondary Data:

Secondary data are data that were developed for some purpose other than helping

to solve the problem at hand.

Advantages:

Secondary data can be gathered quickly and inexpensively, compared to primary

data.

Disadvantages:

Availability: for some marketing problems no secondary data are available.


Relevance: the extent to which the data fit the information needs of the research

problem.

Accuracy: The data available may be inaccurate.

Sufficiency: The data available may not be sufficient for the required research problem.

The sources of secondary Data used are

Journals.

Information from company through reports .

Internet.

CHAPTER 4DATA ANALYSIS & INTERPRETATION


ANALYSIS AND INTERPRETATION OF DATA

The data collected through the questionnaire are put together and classified, after

classifying; the work is done .the following table and graphs are prepared from the

gathered data helps to analyses various aspects and draw interference.

CONCEPT: The concept behind this table is to know the classification of customer

based on age

TABLE NO -1

CLASSIFICATION OF CUSTOMER BASED ON AGE

INSURANC

E AGE

GROUP

NUMBER

OF

RESPONDENT

S

PERCENTAG

E

10 – 20 10 10

20 – 30 30 30

30 – 40 20 20

40 – 50 20 20

50 above 20 20

100 100


ANALYSIS: From the above Table it is clear that

Majorities of respondents belongs to the age group of 20 to 30 i.e.,30% of

respondents

Least number of respondents belongs to the age group of 10 to 20 i.e., 10% of

respondents.

INTERPRETATION: Majority of the business is obtained from the age group of

20 to 30 i.e. 30% of business.

GRAPH-1

PIE CHART SHOWING THE CLASSIFICATION OF

CUSTOMERS BASED ON AGE


CONCEPT: The concept behind this table is to know the family monthly income of respondents

Table No- 2

FAMILY MONTHLY INCOME OF THE RESPONDENTS

INCOME NUMBER OF

RESPONDENTS

PERCENTAGE %


BELOW 5000 22 22

5000 – 10000 26 26

10000 – 15000 32 32

15000 &

ABOVE

20 20

100 100

ANALYSIS: From the above table it is clear that,

A significant 32% of the respondents in the above table earn 10000 to 15000

monthly

20% of the respondents earn above 15000 monthly.

INTERPRETATION: Majority of the business is obtained from the people who

have the income of 10000 to 15000 monthly i.e. 32% of the business.

GRAPH-2


PIE CHART SHOWING FAMILY MONTHLY INCOME OF

RESPONDENTS

CONCEPT: The concept behind this table is to know the occupation of the respondents.

TABLE -3

OCCUPATION OF THE RESPONDENTS


OCCUPATION NUMBER OF

RESPONDENTS

PERCENTAGE %

BUSINESS MAN 20 20

EMPLOYEE 36 36

STUDENTS 18 18

HOUSEWIFE 14 14

OTHERS 12 12

ANALYSIS: From the above it is clear that,

Majorities of the respondents are employees and businessmen , i.e. 36% and 20%

of the respondents

12% of the respondents belongs to the others and retired people

INTERPRETATION: Majority of the business is obtained from the employees and

businessmen i.e. 36% and 20% of the business respectively.

GRAPH-3


PIE CHART SHOWING OCCUPATION OF THE RESPONDENTS

CONCEPT: The concept behind this table is to know the source pf information about the LIC product.

TABLE NO-4

SOURCE OF INFORMATION ABOUT THE LIC PRODUCT


SOURCE OF INFORMATION

NUMBER OF RESPONDENTS

PERCENTAGE %

ADVERTISEMENT 10 10

FRIENDS / RELATIVES

25

25

LIC AGENTS 65 65

100 100

ANALYSIS: This table shows how respondents got the information about the life

insurance policy. From the above table it is clear that,

Majority of the respondents came to know about the product through agents, i.e.

65% of the respondents.

Only 10% of the respondents came to know about the product by advertisement.

Least number of customers came to know about the policies by advertisement.

INTERPRETATION: Majority of the awareness of the product is given from agents

(i.e.65% of the respondents).

GRAPH-4


PIE CHART SHOWING THE SOURCE OF INFORMATION

ABOUT THE LIC PRODUCTS.

CONCEPT: The concept behind this table is to know the consumer awareness about the latest LIC polices .

TABLE NO – 5

CONSUMER AWARENESS ABOUT THE LATEST LIC POLICES


LIC POLICIES NUMBER OF RESPONDENTS

PERCENTAGE %

JEEVAN ANAND 45 45

NEW JEEVAN SHREE

25 25

NEW JEEVAN SURAKSHA

20 20

NEW BIMA NIVESH

10 10

ANALYSIS: From the above table it is clear that, Majority of the respondents know about the policies Jeevan Anand and New

Jeevan Shree

Least number of customers are aware of new Jeevan Suraksha and New Bima

Nivesh.

LIC should create the awareness of the new policies through advertisement.

INTERPRETATION: Majority of the people know about the jeevan anand and new

jeevan shree policies i.e. 45% and 25% of respondents.

GRAPH-5


PIE CHART SHOWING CONSUMER AWARENESS

ABOUT THE LIC –PRODUCTS

CONCEPT: The concept behind this table is to know that is there any variation in expectation due to services.

TABLE – 6IS THERE ANY VARIATION IN EXPECTATION


VARIATION IN SERVICE


PERCENTAGE %

YES 20 20

NO 80 80

100 100

ANALYSIS:From the above table it is clear that,

20 respondents have a variation in expectation due to service.

80 respondents have no variation in expectation due to service.

INTERPRETATION: From this we can say that the service provided by Life

Insurance Corporation of India is good.


GRAPH-6

PIE CHART SHOWING THE VARIATION IN THE

EXPECTATION OF RESPONDENTS

CONCEPT: The concept behind this table is to know the satisfaction of overall performance of the LIC products.

TABLE NO – 7

SATISFACTION OF OVERALL PERFORMANCE OF THE LIC

PRODUCTS


ANALYSIS:From the above table it is clear that,

Majority of the respondents are satisfied with the overall performance of LIC of

India i.e. 92%

Only 8% of the respondents are not satisfied with the premium and services

provided by LIC of India

INTERPRETATION: Majority of the people are satisfied with the overall

performance of LIC of India.

GRAPH-7

M.S.R.C.A.S.C BANGALORE

PERFORMANCE NUMBER OF RESPONDENTS

PERCENTAGE

SATISFIED 92 92

DISSATISFIED 8 8

100 100

38

PIE CHART SHOWING SATISFACTION OF OVERALL

PERFORMANCE OF THE LIC OF INDIA

CONCEPT: The concept behind this table is to know how respondents feel

about the after sales service

TABLE NO -8

HOW DO RESPONDENTS FEEL ABOUT THE SERVICE AFTER

INSURANCE


SERVICE NUMBER OF RESPONDENTS

PERCENTAGE%

GOOD 75 75

AVERAGE 15 15

POOR 10 10

ANALYSIS: This table shows the customer response to that after sales service

provided

by the agents of the LIC office ,from the above table it is clear that,

Majorities of the respondents say that services after Insurance is good

Only 10% of the respondents says that service after Insurance is poor

INTERPRETATION: Service after Insurance provide by LIC is really good.

GRAPH-8


PIE CHART SHOWING HOW DO RESPONDENTS FEEL

ABOUT THE SERVICE AFTER INSURANCE

CONCEPT: The concept behind this table is to know recommendation for

LIC policy by various respondents

TABLE NO -9

RECOMMENDATION FOR LIC POLICY BY VARIOUS

RESPONDENTS


RECOMMENDATION NUMBER OF RESPONDENTS

PERCENTAGE%

YES 98 98

NO 2 2

100 100

ANALYSIS: This table shows the number of respondents recommended for LIC

policy to their friends and relatives from the above table it is clear that,

98% of the respondents will recommend LIC policy to their friends and relatives

Only 2%of the respondents will not recommended LIC policy to their friends and

relatives.

INTERPRETATION: the policyholders give Majority of the awareness of the

product to their friends and relatives

GRAPH-9


PIE CHART SHOWING RECOMMENDATION FOR LIC

POLICY FOR VARIOUS RESPONDENTS

CONCEPT: The concept behind this table is to know are respondents Satisfied with the range of products offered by LIC of India

TABLE NO - 10

ARE RESPONDENTS SATISFIED WITH THE RANGE OF


PRODUCTS OFFERED BY LIC OF INDIA

SATISFACTION NUMBER OF RESPONDENTS

PERCENTAGE

YES 93 93

NO 7 7

100 100

ANALYSIS: From the above it is clear that,

93% of the respondents are satisfied with the range of products offered by LIC

of India.

Only 7% of the respondents are not satisfied with the range of products

offered by LIC of India.

INTERPRETATION: Majority of the respondents are satisfied with the wide

range of products offered by the LIC

GRAPH-10


PIE CHART SHOWING SATISFACTION OF THE

RESPONDENTS WITH THE RANGE OF PRODUCTS

OFFERED BY LIC OF INDIA

CONCEPT: The concept behind this table is to know is any request of the

respondentsis pending with LIC office

TABLE NO-11

IS ANY REQUEST OF THE RESPONDENTS IS PENDING WITH

LIC OFFICE


ANALYSIS: From this table it is clear that

99% of the respondents don’t have any work pending with the LIC office

Only 1% of the respondents are having pending work with the LIC office

INTERPRETATION: the LIC office satisfies all the request of the respondents

GRAPH-11

M.S.R.C.A.S.C BANGALORE

PENDING WORK NUMBER OF RESPONDENTS

PERCENTAGE %

YES 1 1

NO 99 99

100 100

46

PIE CHART SHOWING THE REQUEST OF THE

RESPONDENTS PENDING WITH LIC OFFICE

CONCEPT: The concept behind this table is to know respondents Awareness about the LIC brands

TABLE NO-12

RESPONDENTS AWARENESS ABOUT THE LIC BRANDS


POLICY NAME NUMBER OF RESPONDENTS

PERCENTAGE%

MONEY BACK POLICY

65 65

ENDOWMENT POLICY

20 20

OTHER NEW POLICIES

15 15

100 100


Majorities of the respondents are aware of money back policies.

Least number of respondents is aware of new policies.

INTERPRETATION: Majority of the respondents is aware of money back policies.


GRAPH-12

PIE CHART SHOWING RESPONDENTS AWARENESS

ABOUT THE LIC BRANDS

CONCEPT: The concept behind this table is to know are respondents

Receiving premium notices well in time

TABLE NO -13

ARE RESPONDENTS RECEIVING PREMIUM NOTICES WELL IN TIME


PREMIUM NOTICE


PERCENTAGE%

YES 98 98

NO 2 2

100 100

ANALYSIS: From this table it is clear that

Majorities of the respondents receiving premium notices well in time,

i.e. 98%

Only 2% of the respondents are not receiving their premium notices

With in time

INTERPRETATION: Majority of the policyholders is receiving the premium

notices well in time.

GRAPH-13


ARE RESPONDENTS RECEIVING PREMIUM NOTICES

WELL IN TIME

CONCEPT: The concept behind this table is to know when would the respondent

like to be contracted for the fulfillments of his/her insurance needs

TABLE NO -14

WHEN WOULD THE RESPONDENT LIKE TO BE CONTRACTED

FOR THE FULFILLMENTS OF HIS/HER INSURANCE NEEDS

TIME PERIOD NUMBER OF PERCENTAGE%


RESPONDENTS

IMMEDIATELY 5 5

WITHIN ONE MONTH

65 65

WITH IN THREE MONTH

20 20

LATER 10 10

100 100


Majorities of the respondents would like to be contracted with in one month

Least number of respondents i.e., 5% would like to be contracted immediately.

INTERPRETATION: Majority of the people would like to be contracted for the

fulfillments of insurance needs within one month.

GRAPH-14


WHEN WOULD THE RESPONDENTS LIKE TO BE

CONTACTED FOR THE FULFILLMENT OF HIS / HER

INSURANCE NEEDS

CONCEPT: The concept behind this table is to know do the respondents feel that lic

has provided adequately the following needs

TABLE NO-15DO THE RESPONDENTS FEEL THAT LIC HAS PROVIDED ADEQUATELY THE

FOLLOWING NEEDS

INSURANCE NEEDS


PERCENTAGE%


PROTECTION FOR SPOUSE AND

CHILDREN & FOR PAST-RETRIAL

LIFE

60 60

HOUSING FACILITY TO SUIT

YOUR CONVENIENCES & CRITICAL ILLNESS

COVER

25 25

EDUCATION OF YOUR CHILDREN

& START IN LIFE OF YOUR CHILDREN

15 15

Total100 100


60% of the respondents have the polices for the “protection for spouse and

children” and for their “past-retrial life”

25% of the respondents have the polices for “housing facility” and pr “critical

illness cover”

INTERPRETATION: Majority of the people are interested in going for the policies

related to protection for spouse and children and for past retrial life.


GRAPH-15

DO THE RESPONDENTS FEEL THAT LIC HAS

PROVIDED ADEQUATELY THE FOLLOWING NEEDS

CONCEPT: The concept behind this table is to know would respondent like to

enhance his/her financial security through different plans

Table No -16

Would Respondent Like To Enhance His/Her Financial

Security Through Different Plans


LIC PLANS NUMBER OF RESPONDENTS

PERCENTAGE %

CHILDREN’S PLANS & HOUSING FINANCE

67 67

SAVINGS & RISK ORIENTED PLANS

33 33

100 100


Majorities of the respondents would like to enhance his financial security through

children’s plan and housing finance.

Least number of respondents would like to enhance his financial security through

saving and risk oriented plans.

INTERPRETATION: Majority of the people would like to enhance their financial

security through children’s plan and housing finance plans.

GRAPH-16


WOULD THE RESPONDENTS LIKE TO ENHANCE HIS

/HER FINANCIAL SECURITY THROUGH DIFFERENT

PLANS

CONCEPT: The concept behind this table is to know customer responses To the service and the office atmosphere of LIC.

TABLE NO-17

CUSTOMER RESPONSES TO THE SERVICE AND THE OFFICE ATMOSPHERE OF LIC


ATMOSPHERE NEAT AND CLEAN&

SERVICING IS PROMPT AND COURTEOUS


PERCENTAGE %

YES 96 96

NO 4 4

100 100

ANALYSIS: From the table it is clear that,

96% of the respondents say that the service provided by LIC and the office

atmosphere is good.

4% of the respondents say that the service provided by the LIC and the office

atmosphere is not good.

INTERPRETATION: Service provided by the LIC is good and its office

atmosphere is also good.

GRAPH-17


PIE CHART SHOWING CUSTOMER RESPONDS TO THE

SERVICE AND THE OFFICE ATMOSPHERE OF LIC


CHAPTER 5FINDINGS &

CONCLUSIONS

5.1 FINDINGS

Majorities of respondents having LIC policy belong to age group 20-30.

Majorities of respondents family monthly income are between 10000 to 15000

Majorities of LIC policyholders are employees and businessmen

95% of the respondents satisfied with the overall performance of LIC of India

Information technology is excellent.

Agents give majorities of the awareness of the product.


Majorities of the respondents are satisfied with the wide range of products offered

by the LIC.

Majorities of the policyholders are receiving the premium notices well in time.

Majorities of the respondents having LIC policy would like to enhance their

financial security through children’s plan and housing financial plans.

Service provided by LIC and the office atmosphere is good.

From the serve conducted among the group of people for LIC we finds there are people from age group of 20 to 30 and having an income of Rs. 10000 to 15000 and majority of them are satisfy with the company performance and the range of products and the services they are providing to the customer after Insurance

5.2 SWOT ANALYSIS

Strengths

Good brand name Wide range of products Products are able to meet different needs of customers


Ability to understand requirement of customer by considering different factors Apart from tax saving, products facilitate the investment opportunity & provide

better return The company has good market share

Weaknesses

In spite of having good product line the company is unable to effectively market

the products.

Still company doesn’t concentrate on the customer satisfaction level comparing

with market leader,ICICI in private sector.

Opportunities

Bright future of insurance industry in India.

Huge untapped potential market.

Positive attitude of people toward insurance.

Increasing average income of people would have complementary effect to the

insurance industry.

Threats

Cutthroat competition in the market.

Many potential entrants.

Big difference between market share of the company and the market leader.


Increasing investment options for people.

5.3 CONCLUSION

After having analysis, I have noticed that Life Insurance policies,

Which were taken for survey, have been fulfilling the needs of the customers

Considerably well. From the survey I came to know that the new insurance policies like New jeevan shree, New jeevan Suraksha are not know to the customers so, Life Insurance


Corporation of India should take a step to create awareness of policies In the mind of the customer. Agents should maintain the good communication with the customer; in this case agents should take an active participation to create the awareness of the policies

5.4 SUGGESTIONS AND RECOMMENDATIONS

LIC of India should strive hard to create awareness of the policies

LIC thinks that long-term investment earns maximum profit by which

The customers also satisfy by maximum bonus.


The bonus should increase for new emerging schemes

For example jeevan anand new scheme, which is endowment, plan

Having bonuses, survival benefit and accident benefit.

Majorities of the customer are not aware of the new policies, Life

Insurance Corporation should awareness through advertisement.

Majorities of policyholders belong to the age group of 20-30 so lic should target

these people by creating advertisements targeting these people and agent having

good relationship with these target customers.

Majorities of policy holders are having the family monthly income ranging from

10000-15000 so lic should target these people by creating advertisement that

could attract these target customers

About 25% of respondents are not satisfied with after sales service provided by lic

so lic should work on it by collecting premium in time and sending premium

notice well in time

By the serve conducted for the LIC we suggest them to concentrate more on the rural market and to the income group of 10000 to 15000, because they are the huge market for the company .The customer those who are not satisfy with the company company should concentrate on them. The agents should be given more bonus on the new policies, so that they can remain market leader

QUESTIONNAIREDear sir/madam


I am assigned to carry out study on “Customer satisfaction towards LIC products “. In

this regard I request you to fill this questionnaire.

1. Name:

2. Age:

10 - 20

20 – 30

30 - 40

40 – 50

50 & above

3. Qualification:

Below Graduation

Graduation

Post Graduation

4. Occupation:

Businessman

Employee

House Wife


Student

Others

5. Family Monthly Income:

Below 5000

5000 – 10000

10000 – 15000

Above 15000

6. Do you feel that you have provided adequately for your following?

Needs?

Protection for spouse & children

Education of your children

Start in life/marriage of your children

Housing Facility to suit your conveniences

For your past-retrial life

Critical illness cover

7. Would you like to enhance your financial security through?

Personal loans

Children’s & Risk oriented Plans


Savings & risk oriented plans

Housing finance

8. Is there any variation in service what you expected?

Service Yes

No

9. Are you aware of the following latest plans?

Jeevan Anand

New Jeevan Shree

New Jeevan Suraksha

New Bima Nivesh

10. How did you come to know about Life Insurance Products?

Advertisement

Friends /Relatives

LIC Agents


11. Are you satisfied with the pre – delivery demonstration of the Product given by

the LIC agents?

Satisfied

Dissatisfied

12. Please indicate when you would like to be contracted for the

Fulfillment of your insurance needs?

Immediately

With one month

Within three months

Later

13. Would you recommend Life Insurance Products to any of your

Friends/Relatives/Acquaintances?

Yes

No


14. Are you receiving your premium notice well in time?

Yes

No

15. During your visit of LIC Branch office do you find the

Atmosphere neat and clean

Servicing prompt & courteous

16 .Do you hold an LIC policy on which survival benefit or maturity claim was

Paid to you?

Yes

No

If so, was the payment made in time?

Yes

No

17. Are you satisfied with the overall performance of the LIC of India?

Yes

No

18. Are you satisfied with the “After Sales Service “provided by your Life

Insurance Agents?

Yes

No

Rank the below service provided by LIC agents


Good

Average

Poor

19. Are you satisfied with the range of the products offered by the LIC?

Yes

No

20. Just think of LIC brands which comes to your mind first (please write below)

1. …………………………….

11 ….......................................

21. Is a request of your s is pending with the LIC office?

Yes

No

If, so please give details ……………………………………………..

………………………………………………………………………………


22. Suggestion if any ………………………………………………………

:………………………………………………………………………………

Thank You

BIBILOGRAPHY

MARKETING MANAGEMENT : BY PHILIP KOTLER

RESEARCH METODOLOGY : BY C.R.KOTARI


CONSUMER BEHAVIOUR : LEON SCHIFFMAN

COMPANY REPORT

INTERNET SITES www.licindia.com

WWW.GOOGLE.COM


http://WWW.GOOGLE.COM/

http://www.licindia.com/

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