icici pru project qc

8/2/2019 Icici Pru Project Qc

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A Final Report

On

Customer Perception towards public and private life insurancecompanies

Submitted to

Punjab Technical University

Jalandhar

In partial fulfillment of the

Requirement for the award of degree

Of

Master of Business Administration (MBA)

Submitted to: Submitted by:

Ms.Nitika Sehgal QuincyKarwal (3249)

Assistant Professor Chandni (3229)

Michelle (3271)

MBA II C

Session: (2011-13)

APEEJAY INSTITUTE OF MANAGEMENT


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CERTIFICATE

This is to certify that the project report entitled Customer Perception towards Public and Private

Life Insurance Companies submitted by Quincy Karwal, Michelle and Chandni is a bonafide

piece of work conducted under my direct supervision and guidance. No part of this work has beensubmitted for any other degree of any other university. The data sources have been duly

acknowledged. It may be considered for evaluation in partial fulfillment of the requirement for the

award of degree of Master of Business Administration.

Ms. Nitika Sehgal

Asst. Professor of Management

Apeejay Institute of Management

Jalandhar.


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PREFACE

We feel delighted and honored to present our project report on Customer Perception towards

Public and Private Insurance Companies the first task for us was to know about the concept on

which our project is based. Then we have to set criteria, on the basis of which the above concept was

valued. The factors, on the basis of which the research has been done, analyzed, evaluated and then

presented.

Someone has rightly said that practical experience is far better and closer to the real world than mere

theoretical exposure. The practical experience helps the students to view the real business world

closely, which in turn widely influences their perceptions and arguments their understanding of the

real situation.

This project requires an in depth study of Public and Private Insurance Companies. Today the

awareness of insurance has been increasing day by day as it is not only the matter of better returns but

also is a matter of risk coverage for various respondents.


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ACKNOWLEDGEMENT

Nothing concrete can be achieved without an optimal combination of inspiration and perspiration.

With all humility, we would like to thank God, the almighty, and the compassionate that bestowed us

with health and encourage enough to through this crucial juncture.

We express our sincere thanks, great respect, and deep sense of gratitude and obligation to our

distinguished advisor Ms. Nitika Sehgal (Asst. Professor in Management), without the support and

inspiration of whom we would not be able to undergo my project. The sense of gratitude through

words would hardly suffice our feelings for our worthy mentor for providing intellectual stimulation

and enlightening guidance through the course of present investigation. We are highly indebted for her

scholarly suggestions, constructive criticism and consistent and constant encouragement to complete

this project.

And a sincere thanks to all the concerned teachers, faculty and those individuals who guided me

throughout this work.

And last, but not the least we would like to convey our regards to our parents for providing our

support during our project.

Needless to say errors and omission are ours.

Quincy Karwal

Chandni

Michelle


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TABLE OF CONTENTS

Certificate i

Preface ii

Acknowledgements iii

Chapter No. Chapter Title Page No.

1 Introduction 7-40

2 Review of Literature 41-43

3 Need, Scope and Objectives of the study 44-45

4 Research Methodology 46-49

5 Data Analysis and Interpretation 50-59

6 Findings and Recommendations 60-61

7 Conclusion 62-63

Annexure I Reference 64-65

Annexure IIQuestionnaire 66-69


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LIST OF FIGURES & TABLES

FIGURE NO. FIGURE TITLE PAGE NO.

5.1 Employed category do you belong to 51

5.2 Annual Income 52

5.3 Any Life insurance policy 53

5.4 Life insurance policy from which sector 54

5.5Awareness about public and private sector 55

5.6 Do you support privatization of insurance sector 56

5.7 Do you think private companies provide better services 57

5.8 Like to shift over to private insurance companies 58

5.9 Which factor is better in public and private insurance 59


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CHAPTER-1

INTRODUCTION


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ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized

capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500 Million. The Company

is a joint venture between ICICI bank (74%), a premier financial power house and prudential plc

(26%), a leading international financial services group headquartered in United Kingdom. The

Company was granted Certificate of Registration for carrying out Life Insurance business, by the

Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial

operations on December 12, 2000, becoming one of the first few private sector players to enter the

liberalized arena. The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata,

Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut,

Mangalore and Ludhiana. Till March 31, 2002 the Company has issued 100,000 polices translating

into a Premium Income of around Rs. 1,200 Million. ICICI was established in 1955 by the World

Bank, the Government of India and the Indian Industry, to promote industrial development of India

by providing project and corporate finance to Indian industry. Since inception, ICICI has grown from

a development bank to a financial conglomerate and has become one of the largest public financial

institutions in India. ICICI has financed all major sectors of the economy, covering 6,848 companies

and 16,851 projects. In the fiscal year 2000-2001, ICICI had disbursed a total of Rs 319.65 billion.

Today, it has diversified into retail banking and is the largest private bank in the country.

ICICI is listed on the Indian Stock Exchanges and on the New York Stock Exchange (NYSE).

On September 22, 1999, it became the first Indian company to be listed on the NYSE (symbol: ICand IC.D). This has been followed by the listing of ICICI Bank on NYSE (symbol: IBN) on March

28, 2000.

ICICI has now developed a whole range of activities to become a Universal Bank.

Some of ICICI's spectrum of activities include:

*Commercial Banking - ICICI Bank, India's first internet bank.

* Information Technology - ICICI InfoTech, transaction processing, software development

* Investment Banking - ICICI Securities, one of the key players in the Indian Capital Markets

* Mutual Fund - Prudential ICICI AMC, leading private sector mutual fund player in India

* Venture Capital - ICICI Venture, leading private equity investor with focus on IT and

HealthCare


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* Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset Products

* Distribution - ICICI Capital, Distribution and Servicing of Retail Liability Products

Prudential plc was established in 1848 and is presently the largest life insurance company in

the UK. Since then it has grown to become one of the largest providers of a wide range of savings

products for the individual including life insurance, pensions, annuities, unit trusts and personal

banking. It has a presence in over 15 countries, and caters to the financial needs of over 10 million

customers. It manages assets of over Rupees 11, 39,600 crores approx. as of December 31, 1999.

Prudential plc. has had its presence in Asia for the past 75 years catering to over 1 million customers

across 11 Asian countries.

ICICI PRUDENTIAL LIFE INSURANCE COMPANY

PROFILE

Company Name ICICI Prudential Life Insurance Co.

Ltd.

Indian Partner ICICI Bank

Foreign Partner Prudential Plc

Date of Commencement 19-12-2000

First Branch Mumbai

Sector Private


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Registered Office ICICI Tower 9th

Floor

Bandra-Kurla Complex,

Mumbai-400051

Head Office ICICI Prulife Tower,1089

Appasaheb Marathe Marg,

Prabhadevi,

Mumbai-400025

Branches of company 800

Ms. Chanda Kochhar Chairperson

Mr. Sandeep Bakhshi Managing Director and CEO

Mr. Puneet Nanda

Mr. Madhivanan

Balakrishnan

Executive Director


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Mr. N.S. Kannan

Mr. K. Ram Kumar

Mr. Rajiv Sabharwal

Mr. Barry Stowe

Mr. Adrian OConnor

Director

Mr. Keki Dadiseth

Prof. Marti G. Subrahmanyam

Ms. Rama Bijapurkar

Mr. Vinod Kumar Dhall

Mr. Sridar Iyengar

Independent Director

Banc assurance Partners ICICI Bank,

Federal Bank,

Bank of India,

South Indian Bank, Lord Krishna Bank,

Goa State Co-operative Bank, Jalgaon

Peoples Co-operative Bank,

Punjab & Maharashtra Co-operative

Bank.


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LIC PROFILE

The corporation has been established by as act of parliament which received the assent of the

president on 18th June 1956. The act came into force on 1st July 1956 and the corporation began to

function on 1st September 1956. Since that day the corporation is having the privilege of carrying onlife insurance business in India.

The nationalization of life insurance aims at widening the channels of public savings and is a

important step towards mobilizing these savings more effectively. Nationalized insurance is designed

to bring complete security of funds collected by the way of premiums and to utilize profitability such

funds for nation building activities. The corporations central office is located at Mumbai there are 7

zonal offices, one each at Chennai, Delhi, Ahmedabad, Bangalore, Kolkata, Pune and Hyderabad. At

present the corporation has about 100 divisional offices and over 2100 branch office in India. In

addition there are branch offices outside India.

Information Technology and LIC

LIC has been one of the pioneering organizations in India who introduced use of information

technology in their business. Data pertaining to almost 10 crore Policies are being held on computers

in LIC. With a view to enhancing customer responsiveness and services, in July 1995, LIC started a

drive of online service to policyholders and agents through computers. A metropolitan area network,

connecting 75 branches in Mumbai was commissioned in November, 1997, enabling policyholders in

Mumbai pay their premium or get their status report, surrender value quotations, loan quotations etc.

from any branch in the city. More than 10000 transactions are carried out over this network on any

given working day.

HISTORY OF LIFE INSURANCE

Insurance is probably as old as civilization. The same instinct that prompts the modern businessman

to secure himself against loss and disaster existed in primitive man also. He too, sought to avert the

evil consequences of fire, flood and loss of life and was willing to make same sort of sacrifice in

order to achieved security. Through the concept of insurance is largely a development of the recent

past particularly the industrial era (past few centuries) yet its beginning dates back almost 6000 years.

In the words of Winston Churchill, If I had my way I would wrote the word insurance upon the door


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of every cottage and upon the inconceivably small, families and estates can be protected against

catastrophes which would blotting book of every publman, because I am convinced for sacrifice

which are otherwise smash them up forever. It is our duty to arrest the ghastly waste not merely of

human happiness but of national health and strength which follows when through death of the bread

winner the frail best in which the families are embraced founders and women women and children

and estates are left to struggle in the dark waters of a friendless world.According to Benjamin

Franklin, It is a strange that man should be careful to insure their houses, their ships, and their

merchandise and yet neglect to insure their lives, surely the most important of all their families and

more subject to loss.

FIRST LIFE POLICY

The earliest available record of Life Insurance Policy is on the life of one William Gybbons, a citizen

and Salter of London, affected on the 18th June, 1583. The Policy was procured by Richard Martin

citizen & alderman of London and it was underwritten by 16 individuals. The amount of the policy

was 383-13-4. The brief text of the policy began with the translated Italian Phrase In the name of

God, Amen and continued If it happens (as God defined) the said William Gybbons to die or

disease out of this present world by any ways or means whatsoever before the full end of the said XII

months be expired. At the end was a prayer phrase, God send the said William Gybbons health and

long life.Despite the prayer, William Gybbons died on May 29, 1584. Obviously this was written the

one year from the date of insurance of the policy. Richard Martin sought payment arising out of the

claim, which was disputed on the grounds that the insured had survived 12 lunar months of 28 days

each. The court ordered that it was the intent of the policy to insurance Gybbons life for the year and

it ordered the payment of the claim. The above policy is popularly believed to be the first life policy

over issued. It can be said with certainly that this is the first known case taken to a court of law for

settlement. It is also interesting to note that in the text of the policy the same was declared to be of as

much force, strength and effect as the best and most surest policy which hath ever been here to before

caused to be made and still it was disputed when the claim arose!.

Life Insurance business did not acquire its scientific character till the beginning of the 19th

century. The Amicable society for perpetual assurance (1705) granted fluctuating sums on death. This

practice continued till the society had accumulated sufficient funds to grant a fixed sum on death


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(1757). The development of mortality tables was a landmark to the history of life insurance. For the

first time in 1807 life insurance was transacted on modern lines in England.

EMERGENCE IN INDIA

In India the 1st company known as Sun Insurance Office Ltd. was set up in Calcutta in year 1710.

During the early years of 19th century, a large no of life insurance companies were formed in India.

Some of these companies preferred to amalgamate their business with other companies and a good

number failed to function effectively. In order to stabilize and strengthen the insurance business, life

insurance act 1923 was passed and later amended in 1946, 1958, 1967.Post 1947, India had a great

challenge of out of the dark into an era of where many countries were happily progressing on the way

of advancement. Besides the infrastructure required for developing the nations industry, young nation

also had to build security at all levels among the citizens of the nation, who had recently witnessedthe partition.

The best way was socialistic pattern of government was adopted thus government

nationalized a no of operation that were important for the development of the economy and the social

health of the nation. Insurance was one such industry that saw industrialization in year 1956. Prior to

this the Indian sector had some 246 companies in the insurance sector. Then, Life Corporation of

India was formed and all the other life insurance companies gave their business to the corporation.

The basic intention was to take the concept of life insurance to the grass root level of the Indian.


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THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill n Parliament in

December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously

stuck to its schedule of framing regulations and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the insurance sectorand in particular the life insurance companies were the launch of the IRDAs online service for issue

and renewal of licenses to agents. The approval of institutions for imparting training to agents has

also ensured that the insurance companies would have a trained workforce of insurance agents in

place to sell their products, which are expected to be introduced by early next year. Since being set up

as an independent statutory body the IRDA has put in a framework of globally compatible

regulations. In the private sector 12 life insurance and 6 general insurance companies have been

registered.

INDIAN INSURANCE INDUSTRY

Insurers

Insurance industry comprised mainly two players:


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Life Insurers:

Life Insurance Corporation of India

General Insurers:

General Insurance Corporation of India (GIC):- (with effect from Dec'2000, a national Reinsures)

GIC had four subsidiary companies, namely ( with effect from Dec'2000, these subsidiaries have

been de-linked from the parent company and subsidiary company made as independent insurance

Companies).

1 The Oriental Insurance Company Limited

2 The New India Assurance Company Limited,

INSURANCEINTRODUCTION


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BRIEF HISTORY OF INSURANCE

The story of insurance is probably as old as the story of mankind. The same instinct that prompts

modern businessmen today to secure themselves against loss and disaster existed in primitive men

also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing

to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely

a development of the recent past, particularly after the industrial era past few centuries yet its

beginnings date back almost 6000 years. 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


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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 the disadvantage. The first two

decades of the twentieth century saw lot of the 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 crores 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. 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


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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-organization 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-organization 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. LICs 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. LICs ECS and ATM premium payment facility is an

addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been

commissioned at Mumbai, Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune

and many other cities. With a vision of providing easy access to its policyholders, LIC has launched

its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the

customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many

other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized

scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past

records. LIC has issued over one crore policies during the current year. It has crossed the milestone of

issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the

corresponding period of the previous year. From then to now, LIC has crossed many milestones and

has set unprecedented performance records in various aspects of life insurance business. The same

motives which inspired our forefathers to bring insurance into existence in this country inspire us at

LIC to take this message of protection to light the lamps of security in as many homes as possible and

to help the people in providing security to their families.

Some of the important milestones in the life insurance business are as:-

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started

functioning.


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1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its

business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical

information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital

contribution of Rs. 5 crore from the Government of India. The General insurance business in India,

on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance

company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of

conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and

the Tariff Advisory Committee set up.

1972: 107 insurers amalgamated and grouped into four companies viz+ the National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and

the United India Insurance Company Ltd. GIC incorporated as a company.


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INSURANCE SECTOR REFORMS


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In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.

Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the

financial sector. There forms were aimed at creating a more efficient and competitive financial

system suitable for the requirements of the economy keeping in mind the structural changes currently

underway and recognizing that insurance is an important part of the overall financial system where it

was necessary to addressthe need for similar reforms In 1994, the committee submitted the report

and some of the key recommendations included.

i) Structure

Government stake in the insurance Companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries

can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

ii) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the

industry.

No Company should deal in both Life and General Insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the domestic

companies.

Postal Life Insurance should be allowed to operate in the rural market.

Only one State Level Life Insurance Company should be allowed to operate in each state.

iii) Regulatory Body

The Insurance Act should be changed.

An Insurance Regulatory body should be set up.

Controller of Insurance (Currently a part from the Finance Ministry) should be made

independent.

iv) Investments


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Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to

50%.

GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings

to be brought down to this level over a period of time).

v) Customer Service

LIC should pay interest on delays in payments beyond 30 days.

Insurance companies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in the insurance

industry.

The committee emphasized that in order to improve the customer services and increase the

coverage of the insurance industry should be opened up competition. But at the same time, the

committee felt the need to exercise caution as any failure on the part of new players could ruin the

public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital

requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance

companies in order to improve their performance and enable them to act as independent companies

with economic motives. For this purpose, it had proposed setting up an independent regulatory body.


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LIFE

POLICIES

WHAT IS LIFE INSURANCE?


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Life Insurance is a contract for payment of a sum of money to the person assured of his/her nominee

entitled to receive the same on the happening of certain event. A family is generally dependent for its

food, clothing and shelter on the income brought in at regular intervals by the breadwinner of the

family. So long as he lives and the income is received steadily that family is secure, but should death

suddenly intervene the family may be left in a very difficult situation and sometimes, in stark poverty.

Uncertainty that is risk, which gives rise to the necessity for some form of protection against the

financial lose arising from death. Insurance substitutes this uncertainty by certainty.

Findings of Study:

Plans for IndividualsLIC has a variety of insurance plans to choose from. These plans cater to all categories of people and

to their diverse needs. The plans are simply unmatched in reliability, benefits and in providing

happiness and security. So, take a Life Insurance Policy today. By becoming a policyholder,

participate in national development, as LIC funds a number of socio-economic projects in the

country. LIC's plans other tax advantages too. The maturity amount is exempt from Income tax in the

year of receipt under section 10(10) D the Income Tax Act.

Children's policies - The nominee receives a guaranteed amount of money at a pre-determined

time and not immediately on death of the insured. On survival the insured receives money at thesame pre-determined time. These policies are best suited for planning children's future education

and marriage costs.

ICICI Pru Smart Kid Jeevan Kishore

Suitability

It is a plan that provides guaranteed

educational benefits to the child along

with life insurance cover and hence is

suitable for parents (between 20-60

years) with children in the age group of

0-12 years.

Suitability

This is an improved version of the New

Children's Deferred Assurance plan.

Parents or legal guardians can propose

the policy for children between ages 1

and 12 years, with risk commencing at

an early age


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Salient Features

It is a money back plan where in sum

assured is paid at regular intervals. The

policy can be so designed that it

provides money at important

milestones of the child's education like

secondary education, higher secondary,

and graduation and post graduation.

On death of the life assured with in the

term, full sum assured is paid

immediately and all future premiums

are waived. Death benefits are in

additions to the benefits that child is

likely to get in the normal course of the

policy i.e., child will be eligible for

amounts at important milestones of

education, irrespective of death of the

life assured.

One has the flexibility to choose the

exact age of the child (between 22 to 25

years), at which the policy is to mature.

The term of the policy is determined by

Age of the child on maturity - Age of

the child on the date of proposal.

Policyholder has the option to avail

additional benefits such as Income

benefit rider, Accident Disability

benefit rider by paying additional

premium

Salient Features

Children between ages 1 and 12 years

are eligible

Parents can propose the childs life

The Plan is basically endowment

type.i.e.Sum assured is payable either

on survival to the term or on death

happening within the term


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Interpretation

Under this category ICICI smart kid is better than LIC Jivan Kishore, as in smart kid, the parent of

the kid is insured and not the kid. And if in some mishappenning the parents with in the term, full

sum assured is paid immediately and all future premiums are waived. And these death benefits are in

addition to the benefit that child is likely to get in normal course of policy, i.e. at important milestone

of education, irrespective of death of the life assured.

On the other hand in case of LICs Jivan Kishore the child is insured and a sum assured is

payable either on survival to term or on death happening of child within the term and in case the

parent happen to die during the defrayment period, the policy has to be continued by regular payment

of premiums.

Endowment policies- Cover the insured for a specific period. The insured receives money on

survival of the term and is not covered thereafter.

Save 'n' Protect (ICICI PRU Life) New Janaraksha

Suitability

It is an ideal plan for persons who wish to

accumulate savings on a regular basis, while

having insurance protection.

Suitability

This plan is similar to an

Endowment Assurance plan

except that it has a special

additional feature of a 3 year free

risk coverage, even if premiums

are defaulted. It also comes with

a built-in accident benefit.

This policy is most suitable for

persons who are not sure of a

regular income every year and

who expect their income position

to improve after a short while.

For example, farmers who


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experience crop failure at

intervals would find this plan

beneficial.

The additional premium payable

when compared to an ordinary

Endowment Assurance plan is

marginal. For example, under an

Ordinary Endowment Assurance

plan, for Age 30 and a term of 25

years, per Rs 1000 sum assured,

the premium payable is 42.05

(inclusive of accident benefit).

For the New Jana Raksha plan,

premium for the same policy is

Rs 42.90 i.e. only Rs. 0.85 more,

for the additional benefits.

Salient Features

It is basically an Endowment Assurance Plan

with deferred participation in profits andextended life cover.

It is a fixed term plan - combination of both

savings & life cover.

Salient Features

Sum assured is payable either on

survival to the term or on death

happening within the term.

If two years premiums are paid

under the policy, the policy will

automatically extend for 3 more

years even if further premiums

are defaulted. This facility is

available for any number of

times.

Built in accident benefit.

Bonus for the full term is payable

on the date of maturity or in the


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event of death, whichever is

earlier.

Premiums cease at death or on

expiry of term whichever is

earlier.

Benefits

On death occurring within theterm.

1. Full SA plus GA & vested bonuses

are payable

On survival

1. Full SA plus GA plus vested

bonuses during the full term

2. Additionally, one gets a free life

cover for 5 years, from date of

maturity, for 50% of original sum

assured. No Evidence of health is

required and no premium need to be

paid for this.

Riders available

Accident & disability benefit

1. Waiver of future premiums

2. 10% of SA each year for 10 years.

3. Additional SA, if death is due to an

accident while travelling as a

passenger in train or bus

Critical illness benefit

9 medical conditions are covered. On admission of a

claim, full SA + GA + VB is paid and policy contract

terminates with all riders ceased. Claim under this

Benefits

On Survival

Basic Sum Assured + bonus

under the With-profit plan

On Death:



Additional Benefits

If 2 years premiums are paid

under the policy, the policy is

continued uninterrupted for 3

years even if premiums are

defaulted. This facility is


times. The life assured can pay

the defaulted instalments within

three years with interest and

thus get the cover extended. No

evidence of health needs to be

produced. The policy also

comes with a built-in accident

benefit.


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rider is not admissible during first six months of the

policy.

Major Surgical Assistance

43 surgical procedures are covered

1. Major Surgical Procedure - 50% of

SA

2. Intermediate Surgical Procedure -

30% of SA

3. Minor Surgical Procedure - 20% of

SA

Claims can be made for more than one surgicalprocedure, subject to a maximum of 50% of SA,

claim under this rider is not allowed during first 6months of the policy

Level Term Insurance

Additional cover in the event of death happeningwithin the term.

When one avails extend life cover, no riders areavailable

Benefits

On death occurring within the term.

2. Full SA plus GA & vested bonuses

are payable

On survival

3. Full SA plus GA plus vested

bonuses during the full term

4. Additionally, one gets a free life

cover for 5 years, from date of

maturity, for 50% of original sum

assured. No Evidence of health is

required and no premium need to be

Benefits

On Survival



On Death:

Basic Sum Assured + bonusunder the With-profit plan

Additional Benefits

If 2 years premiums are paid

under the policy, the policy is

continued uninterrupted for 3

years even if premiums are


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paid for this.

Riders available


4. Waiver of future premiums5. 10% of SA each year for 10 years.



passenger in train or bus

Critical illness benefit

9 medical conditions are covered. On admission

of a claim, full SA + GA + VB is paid and policy

contract terminates with all riders ceased. Claim

under this rider is not admissible during first six

months of the policy.

Major Surgical Assistance

43 surgical procedures are covered

1. Major Surgical Procedure - 50% of

SA2. Intermediate Surgical Procedure -

30% of SA

3. Minor Surgical Procedure - 20% of

SA

Claims can be made for more than one surgical

procedure, subject to a maximum of 50% of SA,

claim under this rider is not allowed during first 6

months of the policy

Level Term Insurance

Additional cover in the event of death happeningwithin the term.

defaulted. This facility is


times. The life assured can pay

the defaulted instalments within

three years with interest and

thus get the cover extended. No

evidence of health needs to be

produced. The policy also

comes with a built-in accident

benefit.


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When one avails extend life cover, no riders are

available

Other Conditions

Minimum age 15

Maximum age 60

Maximum Maturity age 70

Minimum SA Rs.20,000/-

Minimum Term 10 years

Loans can be availed under the policy and

loan interest is chargeable.

Other Conditions

Minimum Sum Assured :

Rs.30,000

Maximum Sum Assured :

Rs.5,00,000

Minimum premium must be

Rs.800 per annum

Maximum term : 30 yrs

Minimum age at entry : 18 yrs

Maximum age at entry : 50 yrs

Interpretation

Among these endowment plans Save n Protect of ICICI prudential life and new Janaraksha both plans

are same and there is not much difference among them except that in ICICI we get additional free life

cover for 5 years from date of maturity for 50% of original sum assured. On the other hand in LIC we

dont get this benefit but in LIC, if 2 years premium are paid under the policy, the policy is continueduninterrupted for 3 years even if premium are defaulted. The life assured can pay the defaulted

installment within 3 years with interest and get the course extended.

Whole life policies- Cover the insured for life. The insured does not receive money while he is

alive; the nominee receives the sum assured plus bonus upon death of the insured.

ICICI Pru Life Guard Whole Life Plan

Suitability

Maximum thrust is on family

protection. This policy is suitable for

people who wish to provide large

sums for the benefit of their family at

Suitability

People who wish to provide for their

dependants huge sums at

comparatively low contribution as

premium can take this policy. Under


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an economical cost. this plan an individual gets life

coverage for almost whole of his life.

Salient Features

It is a pure risk or term insurance plan.

The policy is offered in three variants:

1. ICICI Pru LifeGuard Level Term

Assurance

2. ICICI Pru LifeGuard Level Term

Assurance with Return of Premium

3. ICICI Pru LifeGuard Single Premium

Under each of the above variants, full

sum assured is payable on death.

On survival to maturity nothing is

payable except under ICICI Pru

LifeGuard Level Term Assurance with

Return of Premium, where in premiums

paid are returned without any interest.

Riders enhance the benefits under the

policy, which can be availed by paying

marginal additional premium. One can

avail Accident and Disability rider

under all the above variants except

ICICI Pru LifeGuard Single Premium

All the premiums paid under the policy

are eligible for tax rebate under section

88 of IT Act.

Salient Features

Sum assured is payable only on the

death of the life assured.

Premiums have to be paid for 35 years

or till age 80 years whichever is more.

Premiums cease on death of the life

assured.

Benefits

On Survival

Benefits

On Death


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On survival to maturity nothing is

payable except under ICICI Pru

LifeGuard Level Term Assurance

with Return of Premium, where in

premiums paid are returned without

any interest.

On Death

Under each of the above variants, full

sum assured is payable on death.

Sum assured + vested bonuses are

payable to nominees/beneficiaries on

death of life assured only.

Other conditions

Age at entry: 18 years

Maximum age at entry: 50 years.

Maximum age at exit : 65

Minimum term: 5 years

Maximum term : 25 years( For ICICI

Pru LifeGuard Level Term Assurance

& ICICI Pru LifeGuard Level Term

Assurance with Return of Premium)

Maximum term : 15 years(For ICICI

Pru LifeGuard Single Premium)

Minimum premium - Rs. 2400 per

annum. ( For ICICI Pru LifeGuard

Level Term Assurance & ICICI Pru

LifeGuard Level Term Assurance

with Return of Premium) Minimum Sum assured : Rs.

2,00,000(For ICICI Pru LifeGuard

Single Premium)

Other Conditions

Minimum sum assured : Rs 20000.

Minimum premium must be Rs.800

per annum

Minimum age at entry : 18 years.

Maximum age at entry : 60 years.


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Interpretation

Among these plans the ICICI prudential life guard is better than LICs whole life plan as in these type

of plan no survival benefits are there and we get the sum assured only on the death of the life assured.

But ICICIs life guard gives us an option in which premium paid are return but without any interest

which is not there in the LICs whole life plan.

Money back policies - The nominee receives money immediately on death of the insured. On

survival the insured receives money at regular intervals during the term. These policies cost more

than endowment with profit policies.

ICICI Pru Cash Back (ICICI PRU Life) Money Back Policy

Suitability Policy is suitable for people who

wish to have combined benefit of

savings and liquidity all the while

having insurance protections. Policy

provides for the periodic financial

requirements of an individual with

the added benefit of insurance

protection.

Suitability This plan is suitable for people who

require lump sum amounts in future to

meet specific expenses such as children's

education or marriage. At the same time,

the policy provides insurance protection

for the family as well as old age

provision.

Salient Features

It a money back plan where in the

lump sum amounts are payable to life

assured at regular periodic intervals.

Premiums are payable through out the

term of the policy or till earlier death Guaranteed additions and bonus are

payable under the policy

In case of death of the life assured

within the term, the total sum insured

Salient Features

A policy where lump sum amounts are

paid to the life assured at periodic intervals

on survival

In case of death of the life assured within

the term, the total sum insured is paid tothe nominee, irrespective of earlier

survival benefits

Bonus is payable under this scheme

Premiums are to be paid regularly to get


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along with guaranteed additions and

bonus are paid to the nominee,

irrespective of earlier survival

benefits

Period of the policy can be 15 or 20

years.

Policy holder can opt for the rider at

the time of taking the policy at a

marginally additional premium.

Riders available are

1. Accident & Disability benefit

2. Critical Illness Benefit

3. Major Surgical Assistance and

4. Level Term Insurance

survival benefits

Premiums cease at death or on expiry of

term whichever is earlier

This plan can be availed of for terms 20 or

25 years

Benefits

On Survival

Policy

TermAt the end of

Survival Payment as a % of basic

sum assured

15 years

3 10%

6 15%

9 20%

12 25%

15(Maturity)

50% plus guaranteed additions plus

vested bonuses.

20 years

4 10% of sum assured

8 15%

12 20%

Benefits

On Survival

TermAt the end

of

Amount of

money back

For Example, on a Rs.

1,00,000 policy

20

years

5th

year20% of sum

assuredRs. 20000

10th

year 20% " Rs. 20000

15th

year 20% " Rs. 20000

20th

year 40% " Rs. 40000

25

years

5th

year15% of sum

assuredRs. 15000

10th

year 15% " Rs. 15000

15th

year 15% " Rs. 15000


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16 25%

20 (Maturity)50% plus guaranteed additions plus

vested bonuses.

On Death:

In case of death of the life assured

within the term, the total sum insured

along with guaranteed additions and

bonus is paid to the nominee,

irrespective of earlier survival

benefits

Riders available


1. Waiver of future premiums

2. 10% of SA each year for 10 years.



passenger in train or bus.

Critical illness benefit.

9 medical conditions are covered. On

admission of a claim, full SA + GA + VB are

paid and policy contract terminates with all

riders ceased. Claim under this rider is not

admissible during first six months of the

policy. Major Surgical Assistance

43 surgical procedures are covered.

Major Surgical Procedure - 50% of

SA

20th

year 15% " Rs. 15000

25th

year 40% " Rs. 40000

On Death:

Full sum assured is payable in the event of

the death of the life assured within the term,

without any deduction of earlier survival

benefits.

For example, suppose a person takes a

Rs. 1,00,000 policy for 20 years. At the

end of the 5th and 10th year he receives

Rs. 20,000 each as survival benefit. If he

happens to die in the 12h year, the

nominee of the life assured will receive

full 1,00, 000,irrespective of the earlier

benefits of Rs. 40,000.


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2. Intermediate Surgical

Procedure - 30% of SA

3. Minor Surgical Procedure -

20% of SA

Claims can be made for more than one

surgical procedure, subject to a

maximum of 50% of SA, claim under

this rider is not allowed during first 6

months of the policy

Level Term InsuranceAdditional cover in the event of deathhappening within the term.

Other Conditions

Minimum amount of Sum Insured -Rs. 50,000

Minimum age at entry 16 yearsMaximum age at entry 55 years

Other Conditions

Minimum amount of Sum Insured - Rs.40,000

Minimum premium must be Rs.800 perannum

Minimum age at entry-13 years

Maximum age at entry :1. 20 year policy - 50 years2. 25 year policy - 45 years

Bonus additions to the policy are calculatedfor full sum assured. They are payable only

along with final maturity benefit on date of

maturity or on death, whichever is earlier

No loan will be granted under these policies

Interpretation

Among these plans ICICIs Cash Back is a step ahead of LICs Money Back policy. On the basis that

as where on survival of term in LIC we get 100% of basic sum assured plus vested bonus, we get

120% of basic sum assured in ICICIs Cash Back plus guaranteed addition and vested bonus. So here

we get 20% extra or additional benefit than LICs Money Back policy.


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Pension schemesPension schemes are policies that provide benefits to the insured only upon

retirement. If the insured dies during the term of the policy, his nominee would receive the benefits

either as a lump sum or as a pension every month. Since a single policy cannot meet all the insurance

objectives, one should have a portfolio of policies covering all the needs.

ICICI Pru Forever Life (Deferred Pension) New Jeevan Suraksha 1

Suitability

The plan is suitable for people who are not

in any pension schemes and wish to

provide regular income for life after a

stipulated date. The amount you receive

depends on the premium you pay till the

stipulated date and the option you choose.

It also offers life cover during the

deferment (i.e., premium paying) phase.

Suitability

This is a unique plan designed to

provide pension from a chosen

retirement date. The plan can be

taken by anyone who wishes to set

apart an amount as pension.

Other Conditions

Regular Premium Single Premium Policy

Minimum age to apply 18 32

Maximum age to apply 60 62

Minimum sum assured Rs. 50,000/- Rs. 50,000/-

Minimum term is 5 Years3 years to max 15

years

Vesting age 45 to 65 years 45 to 65 years

Other Conditions

For the basic plan:

Minimum age at entry: 18 years.

Maximum age at entry: 65 years.

Minimum vesting age: 50 years.

Maximum vesting age: 79 years.

Minimum deferment period: 2 years.

Maximum deferment period: 35years.

Minimum Notional cash option for

regular premium policies :Rs.50000

Minimum premium: Rs.2500 p.a. for


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regular premium

of Rs.10000 for single premium

policies.

For Term Assurance Option:

Maximum Term Assurance Sum

Assured would be equal to twice the

Notional Cash Option subject to a

maximum of Rs. 25,00,000 (overall

limit on riders on all plans).

Minimum Term Assurance Sum

Assured: Rs.1,00,000 If monthlymode is opted: Rs.150.

Maximum age at entry 50.

Minimum Term 10 years.

Maximum Term 35 years.

Term Assurance Rider cover ceases

at age 60 years.

InterpretationAmong the pension plans of ICICIprudential (Forever Life) and LICs New Jeevan Suraksha, ICICIs plan

is step ahead as it gives you the option to postpone the vesting age up to a maximum of 65 years. Secondly

the policy holder is at an option to opt pension from any other insurance company. Thirdly he has having

an option to terminate his policy after 3 years premium are paid and a guaranteed surrender value is

payable.

LIFE TIME PENSION: A regular premium deferred pension plan, this gives a lot of

flexibilities to the policyholders both in the accumulation & deaccumulation phase. It provides

various investments options during the accumulation phase with the flexibility of changing the annual

contribution and also choosing a life insuranceCover.

Death Benefit:Death benefit in this product is the higher of the sum assured chosen and the value

of investments at the time of the death.


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Value of units:Value of units in the policy would be the total sum of all the value of units held by

the policyholders in the various investment options at particular point of time.

Commutation Benefit: At the time of retirement, the policyholder would have the options of

taking up to 33 1/3% of the purchase price as lump sum and use the rest for buying the annuity.

Open Market Option Benefit: The policyholder at the time of retirement would have the

option of taking the annuity from any other annuity player of his choice at the time of retirement

additionally the policyholders would have the option of using the OMO at the time of each of the

annuity resets.

CHAPTER-2


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REVIEW

OF

LITERATURE

Press and his colleagues (1997):- They noted that the issues most highly linked to overall

satisfaction involve complaint management. Efficiently handling problems, being attentive to

concerns, and being capable to resolve troubles over the telephone emerged as critically vital to

insurance customer satisfaction.

Beckettetal (2000):- He illustrate tentative conclusions as to why consumers emerge to stay loyal

to the similar insurance provider, even though in many instances they hold less favorable views


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toward these service providers. For instance, many consumers emerge to perceive small

differentiation between insurance providers, making any change essentially worthless.

Duborvski (2001):- Hedescribed a multi-phases model of consumers buying decision and the

task of customer satisfaction in achieving business excellence. The writer indicated that existing

studies confirm important connection between satisfaction levels, on one side, and repeated buying,

greater brand loyalty and spreading a positive view of the product, on the other side.

Jamal and Naser (2002):- He proposes that customer satisfaction is based not only on the

decision of customers towards the reliability of the delivered service, but also on customers

experiences with the service delivery method.

Deemas (2002):- Hestudied the satisfaction levels of a sample of customers of the insurance. The

primary part asked the respondents to provide universal background information (e.g., gender, age

category, nationality and so on). The next part listed the 21 attributes and asked respondents to

specify their satisfactions with each attribute using a 5-point Likert-type scale. The outcomes indicate

that UAE nationals and Arabs are the most predominant in their contributions to overall satisfaction

whereas non- Arabs are the lowest. In addition, the outcomes show no difference in the levels of

customer satisfaction between men and women respondents.

Dove and Robinsons (2002):- His study indicated that insurance customers have much

superior satisfaction levels when they believe their troubles with the insurance company have been

resolved.

Chienetal. (2003):- He is also paying attention on measuring customer satisfaction. Measuring

factors are: perceived quality and value, customer expectation, satisfaction and loyalty. etc., and they

all influence customer satisfaction.

J.Dsouza (2004):- The writer indicated that existing studies confirm important connection

between satisfaction levels, on one side, and repeated buying, greater brand loyalty and spreading a

positive view of the product, on the other side.


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Dr. Rajarajan (2006):- He interpreted in his study that customers expect low insurance premium

that too with better opportunities, services and brand loyalty.


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CHAPTER-3

NEED, SCOPE

&

OBJECTIVES

Need of the Study:-

To analyze the customer perception towards the public and private life insurance companies.

To study the level of satisfaction among customers.

To study the overall functioning of life insurance companies.


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Scope of Study:-

The study is limited only to Phagwara city due to shortage of time.

Objectives of Study: - The objectives of the study are explained as follows:

To analyze whether private companies provide better services than public insurance companies.

To analyze the awareness of customers about various private and public insurance

companies.

To analyze the market acceptability of products of public and private insurance companies.


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CHAPTER-4

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. Advanced learners

dictionary of current English lays down the meaning of research as `` A careful investigation or

inquiry especially through search for new facts in any branch of knowledge. Research is thus an

original contribution to an existing stock of knowledge making for its advancement. It involves


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systematic collection, analysis and reporting of data and finding relevant solution to a specific

situation or problem.

4.1 Research Design

Research design specifies the methods and procedure for conducting a particular study. It is a series

of advance decisions that taken together comprise a master plan or model for the conduct of an

investigation. So research design provides a framework of plan for study which guides the collection,

measurement, analysis and interpretation of data. The researcher should select the research design

which is appropriate in achieving the objective of the study.

The Research design was descriptive in nature.

4.2 Sampling Design

Sample size of the study: For the current study sample size was 100 respondents.

Sample unit: Various Plans of Insurance are taken for comparison in Phagwara.

Sample procedure: The sample procedure used was convenience sampling.

4.3 Data collection & analysis

The data collection was the process of forming an inventory of the required information and finally

sorting the information, so that only desirable information is left with us. The sources of data may be

either primary or secondary.

Primary sources: The primary data was that which was collected a fresh and for the first time for

the problem at hand, Method of collecting primary data may include observation, survey by means of

questionnaire, interviews etc

Primary data in this project was collected by way of structured questionnaire containing both the open

ended and close ended questions.

Secondary sources: The Secondary data which has been collected by someone else and may be

used by some other person. Secondary sources of data include use of Books, Journals, and internet

services. The data was collected for this project through book and internet services.


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Analysis of data and interpretation :

After collecting the data the analysis of data had been done through various statistical tools andtechniques. The analysis of data requires a number of closely related operations such as establishment

of categories, the applications of these categories to raw data through tabulation. Thus it helps to

classify the raw data into some purposeful and usable categories. After analysis interpretations are

done i.e. to explain the findings on the basis of analysis.

Tools Used:

Questionnaire (Unstructured)

The questionnaire is designed in such a fashion so that the maximum should be obtained from the

market without any biasedness. Convenience sampling was used for data collection because of

shortage of time.

Methodology

Location : Phagwara, Distt. Kapurthala

PUNJAB.

Sample Type : Non probability (Convenience Sampling)

Sample Size : 100

Limitations of Study:-

Every research work does have some limitations and so this research work is also having its

limitations. The following are the limitations of this research study.


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There may be possibility of biasness on the part of some respondents but very much care has

been taken to make this report unbiased.

Some respondents might not given the correct information due to their lack of interest and shortage

of time.

In order to keep their views secret some of the respondents might have provided wrong

information.

Lack of time availability i.e. one month only.

Small sample size and lack of resources.


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CHAPTER-5

DATA ANALYSIS

&

INTERPRETATION

Q1Which employed category do you belong to?


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INTERPRETATION

From the above data, we can analyze that after the research of 100 odd people, 32% people belongs to

government category, 36%belongs to private category, 30% belongs to self employed category and

remaining 2%people belongs to other category.

Q2. Your annual income?

0%

5%

10%

15%

20%

25%

30%

35%

40%

Govt.

Private

Self employed

Any others

Govt. 32%

Private 36%

Self employed 30%

Any others 2%


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INTERPRETATION

From the above data, we can analyze that after the research of 100 odd people, 35% people have

annual income less than 1 lacs, 29%have 1-2 lacs, 32% have 2-3 lacs and remaining 4% people have

annual income of 3 lacs and above.

Q3.Do you have any life insurance policy?

0%

5%

10%

15%

20%

25%

30%

35%

Less than 1 lac

1 -2 lac

2-3 lac

3 and above

Less than 1 lacs 35%

1 -2 lacs 29%

2-3 lacs 32%

3 and above 4%


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INTERPRETATION

From the above pie chart, it is clear that out of 100 respondents, 57% have life insurance policy and

43% do not have any life insurance policy.

Q4. From which sector do you have Insurance Policy?

43%

57%

Yes 57%

No 43%


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INTERPRETATION

From the above graph, we can analyze that 37% of respondents have the insurance policy from public

sector insurance companies, 10% have the insurance policy from private sector insurance companies,

10% have from both the companies while 43% do not have the life insurance policy.

Q5. Which of the following public and private Insurance

companies are you aware of?

Public sector Insurance companies 37%

Private sector Insurance companies 10%

Both 10%

None 43%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Public sectorInsurance companies

Private sector

Insurance companies

Both

None


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LIC 95%

ICICI Prudential 18%

TATA AIG 1%

HDFC Standard 8%

Bajaj Allianz 9%

Kotak Mahindra 2%

Max New York 7%

Any others 5%

INTERPRETATION

From the above graph, we can analyze that 95% of the respondents are aware of LIC Insurance

companies, 18% are aware of ICICI Prudential companies 1% are aware of TATA AIG companies,8% of HDFC standard, 9& of Bajaj Allianz 2% of Kotak Mahindra, 7% are aware of Max New York

and 5% respondents are aware of any other insurance companies.

Q6. Do you support privatization of Insurance sector?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

LIC

ICICI Prudential

TATA AIG

HDFC Standard

Bajaj Allianz

Kotak Mahihdra

Max New York

Any others


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Yes 62%

No 38%

INTERPRETATION

From the above pie chart, we can analyze that 62% of the respondents supports Privatization of

insurance sector while the rest of the 38% respondents dont support the privatization of insurance

sector.

Q7.Do you think that Pvt. Companies provide better services than Govt.

Insurance companies?

62%

38%


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Yes 64

No 24

Cant say 12

INTERPRETATION

From the above pie chart, it is clear that 64% of the respondents think that private companies provide

better services than the govt. insurance companies whereas 24% of the respondents dont think so and

12% of the respondents cant say anything about it.

Q8. Do you like to shift over to private insurance companies?

64

24

12

Yes

No

Can't Say


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Yes 49%

No 32%

Cant say 19%

INTERPRETATION

From the above pie chart, we can analyze that out of 100, 49% of the respondents would like to shift

over to private insurance companies,32% of the respondents would not like to do so whereas 19% of

the respondents cant say anything about it

49%

32%

19%

Yes

No

Can't Say


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Q9. Which factor is better in public and private insurance companies from your

point of view?

INTERPRETATION

From the above graph, it is very clear that reliability, service, cost and easy claim process are better

factors for public insurance companies as compared to the private insurance companies.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Public Insurance Private Insurance

Reliability

Service

Cost

Easy ClaimProcess

Factor Public Insurance PrivateInsurance

Reliability 79% 21%

Service 64% 36%

Cost 30% 70%

Easy Claim Process 63% 37%


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CHAPTER-6

FINDINGS

&

SUGGESTIONS


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Findings of Study

Private companies are providing better services than public companies as 64% respondents

are satisfied with their services.

People are aware more of the public sector insurance as it is there in the market for more than

50 years.

Market acceptability of the public sector insurance is more than that of private sector

insurance because of its reliability and low cost.

Suggestions of Study

So first of all ICICI Prudential should try to bring its premium a little down to tap the market.

ICICI Prudential should try to concentrate on low-income group also. Where as it is only

targeting the middle and high-income group from where it can fetch large premium in one

shot.

It should try to flout variety of plans in market as per the actual needs of the customer.

It should try to build faith about the creditworthiness of the company in general public and try

to clear the myths that being a private company it can run away or it can go insolvent at any

point in future.


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CONCLUSION


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CONCLUSION

In the end we would like to conclude in a way that although ICICI products are better

than LIC But LIC is there in the market for more than 50 years and it is the King who

is having a large number of products that too with low premiums.


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REFERENCE


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Beckettetal (2000):- He illustrate tentative conclusions as to why consumers emerge to stay loyal

to the similar insurance provider, even though in many instances they hold less favorable views

toward these service providers. For instance, many consumers emerge to perceive small

differentiation between insurance providers, making any change essentially worthless.

Duborvski (2001):- Hedescribed a multi-phases model of consumers buying decision and the

task of customer satisfaction in achieving business excellence. The writer indicated that existing

studies confirm important connection between satisfaction levels, on one side, and repeated buying,

greater brand loyalty and spreading a positive view of the product, on the other side.

Chienetal. (2003):- He is also paying attention on measuring customer satisfaction. Measuring

factors are: perceived quality and value, customer expectation, satisfaction and loyalty. etc., and they

all influence customer satisfaction.


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ANNEXURE


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QUESTIONNAIRE

Dear Sir/Madam,

We Quincy Karwal, Michelle, and Chandni the students of APJ Institute of Management,

conducting a research on Customer Perception towards Public and Private Life InsuranceCompanies. I request you to fill this questionnaire & I assure that this data will be used only for

study purpose & it will be kept confidential.

1 Name _________________________________

2. Age

a) Less than 25 c). 35-45

b) 2535 d.) 45 and above

3. Which employed category do you belong to?

a). Government c). Private

b) Self employed d). Any other

4. Your annual income?

a). Less than 1 lakh c). 2 lakh to 3 lakh

b). 1 lakh to 2 lakh d.) 3 lakh & above5. Do you have any life insurance policy?

a) Yes b) No

6. From which sector do you have life insurance policy?

a. Public Sector

b. Private Sector

c. Bothd. None


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7. Which of the following Public and Private companies are you aware of ?

a. LIC

b. ICICI Prudential

c. TATA AIG

d HDFC Standard

e Bajaj Allianz

f Kotak Mahindra

g Max New York

8. Do you support Privatization of insurance sector?

a) Yes b) No

9. Do you think that Pvt. Companies provide better services than Govt. Insurance Companies?

a) Yes

b) No

c) Cant Say

10. Do you like to shift over to Pvt. Insurance Companies?

a) Yes b) No

11. Which factor is better in Public and Private Insurance Companies from your point of

view?

Factor Public Insurance Private Insurance

Reliability

Service


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Cost

Easy Claim Process

12. Any suggestion for ICICI Prudential Life Insurance

______________________________________________________

______________________________________________________

Thank you for sparing your valuable time

icici pru project qc

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