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LIFE INSURANCE
Dinesh Phadtare (92)
Shailesh Ranade (93)
Neha Raswalkar (94)
Jignita Rathod (96)
Ravi Suchak (111)
Introduction
Life Insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitle to receive the same) on the happening of the event insured by the contract.
Insurance Companies In India
Bajaj AllianceBirla Sun Life InsuranceLICAviva Life Insurance, IndiaMetLife India InsuranceICICI Prudential
Why?
Superior to any other savings planEasy settlement & protection against
creditorsReady Marketability & suitability for quick
borrowingsAccidental death benefitsTax Relief
Objective To compare the various current policies
available in market and analyze each policy.
To help the laymen people understand
various policies.
To create importance.
To spread awareness about insurance.
Types of Research
Analytical Research
Descriptive Research
Data collection
Primary Data
Interviewing agents
Collecting information through questionnaire within the age group 18-55 years.
contd.
Secondary Data
• Collecting data through
newspaper
internet
pamphlets of insurance companies
HYPOTHESIS
Comparison of Insurance Policies provided by LIC (public sector company)
and private company like ICICI Life Insurance, Kotak Mahindra,Birla Sun Life
Insurance etc.
Independent Variables
Age of CustomerOccupation of CustomerIncome of CustomerNo. of family membersArea in which the customer lives (Urban,
Semi-Urban, rural) etc.
Dependent Variables
Structure of Insurance Policy
Insurance Agents
Research DesignStep 1:To collect the primary data, through questionnaire.( 20 customers of LIC
and 20 customers of ICICI)
Types of question asked : - Open-ended question - Multiple-choice question
Step 2: Interview the Agents. 5 agents
Step 3: Prepare questionnaire for customer.(Approximately 50 Customers)
Contd…Who is to be surveyed ?
- All people ranging from 18 yrs & above –
- People who have Policy of LIC or ICICI prudential Life Insurance
Step 2: Interview Agents of LIC and ICICI
(5 agents of each LIC and ICICI)
Questions asked are open ended.
Source of Data
Primary Data :
To collect the primary data questionnaire is prepared with open ended and close ended questions including personal details.
Secondary Data :
Secondary data can be used as basis for comparison with primary data.
Data Collection Method : Questionnaire for customers
The questions in questionnaire are
Open ended questions : It is helpful in knowing what is uppermost in the mind of the respondents. It gives complete freedom to the respondent.
Multiple choice questions : In this, the respondent is offered two or more choice.
Data collection :Interviewing the agents
Closed ended questions : It is helpful in knowing the exact factual information.
Target Population : Mumbai City
Sampling Frame : People having polices of LIC or ICICI prudential life Insurance company.
Sampling Method :
Probability - Stratified Sampling supplemented with convenience sampling
Sampling Unit : People aged 18 & Above
Determining Sampling Size : 50 sample size as per convenience and for accurate analysis and interpretation of data.
5 Agents of LIC5 Agents of ICICI20 Customers of LIC20 Customers of ICICI Prudential Life Insurance
QUESTIONNAIRE1.Name of the Policy Holder:
2. Date of birth:
3. Gender: Male Female
4. Occupation:
5. Income p.a.:
6. You have policy of: L.I.C. ICICI
7. Name of the Policy:
8. Maturity period:
9. Premium: Rs. Monthly Quarterly
Yearly Single Installment 10. Tax Benefits: Benefit: Yes No Amount:
11. Interest Rate:
12. Do you have termination facility for your policy? Yes No If yes, Termination is allowed after how many years?
How much amount do you get back?
13. Do you have extension facility for your policy? Yes No
14. Have you purchased policy through your bank or through direct agent?
Bank Agent
15. Do you have purchased any policy for your children?
Yes No
If yes, which policy have you purchased?
16. What are other benefits provided by your policy?
17. What is your purpose of purchasing an insurance policy?
18. How do you know about this policy?
Media Doctor Friends
Agents Others
19. Would you refer this policy to others? Yes No If yes, why?
20) Do you feel the process for applying the insurance policy is tedious?
Yes No What changes do you suggest for your insurance company?
Agents of LIC and ICICI were interviewed through telephone. They were asked open ended questions regarding the policies and services provided by the company.
0
5
10
15
20
LIC
ICICI
PREMIUM PAID
RANGE OF PREMIUM PAID
RANGE NO OF RESPODENTS OF LIC
NO OF RESPODENTS OF ICICI
1000-2000 3 2
2000-3000 4 -
3000-4000 3 -
4000-5000 3 -
5000-6000 4 3
6000-7000 2 2
7000-8000 - 1
8000-9000 - 6
9000-10,000 1 6
10,000 ABOVE
TYPES OF LIC POLICY
P1-ENDOWMENT ASSURANCE
P2-JEEVAM SARAL
P3-MONEY BACK
P4-MARKET PLUS
P5-JEEVAN MITRA
P6-ENDOWMENT
P7-AKSHAY BIMA
YOJNA
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
P1 P2 P3 P4 P5 P6 P7
TYPES OF POLICY
NUM
BER
OF P
EOPL
E
TYPES OF ICICI POLICY
0
1
2
3
4
5
6
7
8
9
10
P1 P2 P3 P4 P5 P6
TYPES OF POLICY
NUM
BER
OF P
EOPL
E
P1-LIFE TIME PENSION
P2- CASH BACK
P3- LIFE TIME PREMIUM
P4-SAVE N PROTECT
P5- INVEST SHEILD
P6- RIDER
FOR LIC
AGE NO. OF PERSONS
20 – 30 1
30 – 40 2
40 – 50 8
50 – 60 3
Greater than 60 1
FOR I.C.I.C.I
AGE NO. OF PERSONS
20 – 30 6
30 – 40 7
40 – 50 1
50 – 60 6
Greater than 60 1
DO YOU SUGGEST LIC POLICY??
YES70%
NO30%
YES
NO
DO YOU SUGGEST ICICI POLICY?
YES85%
NO15%
YES
NO
DO YOUR LIC POLICY HAVE TERMINATION FACILITY ?
YES54%
NO46% YES
NO
DO YOUR ICICI HAVE TERMINATION FACILITY
YES60%
NO40%
YES
NO
DO YOUR LIC POLICY HAVE EXTENSION FACILITY
YES55%
NO45% YES
NO
DO YOUR ICICI POLICY HAVE EXTENSION FACILITY
YES60%
NO40%
YES
NO
Hypothesis Testing
Parameters LIC (X1) ICICI (X2)
Less premium 9 7
More return 8 9
Interest rate 7 9
Attractive schemes 7 6
Better service 6 9
Timely service 6 8
Termination 6 8
Extension 6 8
Total Mean=55/8=6.875 Mean=64/8=8
Z -test
TWO SAMPLE:
Sample size large (n>30)
Sample drawn from same population
Is used when 2 samples are drawn from sample population
Incase is not known,
can be used in its place.
D1=6.875-7.44 = -0.565
D2=8-7.44 = 0.56
n1=20
n2=20
Contd….
Null Hypothesis :- H0 -> µ1 = µ2
benefits provided by LIC & ICICI company are same
.
Alternative Hypothesis:- Ha -> µ1 =/= µ2 or By substituting in above formulas , we getCalculated z =-2.89By comparing this value to tabular value at 5% l.o.s
i.e.- 2.262 < z < 2.262
Contd…
Calculated z > Tabular z Hence hypothesis is rejected i.e.
reject H0 Accept H1
So we can conclude that benefits provided by one company are better than of other.
Major findings of the study
Public prefer private insurance mainly for the reasons such as
- timely service,
- better service,
- friendly approach,
- better communication,
- immediate attention,
- influence of friends and relatives as agents and
- trust worthiness.
- attractive schemes
Contd..
Aged people have more concern for economic factors compared to youngsters while studying the reasoning for private policy preferences.
All other factors like service, human relations, product and comfort do not vary significantly based on age though the reasoning levels are high.
The most important means of creating awareness are agents, friends, relatives and advertisement.
Contd..
Customers are found to be highly satisfied with service facilities, human relations and attractive schemes.
Age and income did not exert any significant level of difference of in the satisfaction level of the customers.
SuggestionsPrivate insurance companies have gained their
momentum by focusing on better service and relationship marketing.
When they plan schemes or different segments the elderly people scheme must focus more on economic factors.
Private insurance companies have attractive schemes to gain the attention of the public, if they could extend more varieties to attract.
Customers opt to buy private insurance policies in the future though all are not prepared to recommend them to others
Conclusion
The insurance industry is facing a healthy competition, which really benefits the public. Government sector should further improve their product varieties and
attractive schemes to compete with the private sector and also change their attitude further towards
service to survive in the market.
THANK YOU