BBA PROJECT REPORT - Tanu Siwach
BBA PROJECT REPORT - Tanu Siwach
BBA PROJECT REPORT - Tanu Siwach
On
A STUDY OF
Session : 2020-21
I am Tanu siwach, Roll No. 19/MBA/54 student of MBA programme Faculty of Management &
Commerce, Vaish College of Engineering, Rohtak hereby declare that the present Project Report on
“Consumer Awareness towards insurance products is a original piece of work done by me and has
been not submitted to any organization in any means possible.
The Project Report is not submitted to any other Institute/University for the award of any degree of
MBA.
Signature of Candidate
Tanu siwach
ACKNOWLEDGEMENT
Nobody is born perfect in himself; it is some timely guidance, proper teachings and blessings by
well wishers and seniors around us, who gives me perfection and skills to make myself prepared to
walk on the path of success.
My project work, which is the first step of mine in the fields of professionalism, has been
successfully accomplished, due to co-operative efforts of friends and colleague together.
I would like to pay my sincere gratitude and thanks to those people, who directed me at every step in
the project work.
My sincere thanks go to the Mr. Arjun Gupta, Vaish College of Engineering without her support
this study would not have materialized.
Tanu Siwach
CONTENTS
a Declaration i
b Acknowledgement ii
Chapter – 6 Bibliography
The basic customer need met by life insurance policies are protection and savings. Policies that
provide protection benefit are designed to protect the policy holder or his dependents from the
financial consequences of unwelcome events such as death or long term sickness /disability .policies
that are designed as saving contracts allow the policy holder to build up funds to meet specific
investment objectives such as income in retirement or repayment of loan.
Types of policies
Endowment assurance
Maturity date of the policy in exchange of for a single premium at the start of the policy or a
series of regular premiums through out the term of the policy
If the policy holder dies before the maturity date the usually the same sum assured is paid on
death.
The structure if this policy is same to that of the nonparticipating policy except that initial
sum assured under the policy is expected to be enhanced by payment of bonuses to the policy
holder In the Indian context bonuses usually take the form of additions to the initial sum
assured and become payable in the event of the occurrence of the insured event, i.e. survival
up to maturity date or earlier death.
This is very popular savings cum protection policy because it provides lump sump at periodic
intervals .for exp given an initial sum assured of Rs. 1000 and a term of 20 years, the policy
may provide part payment of the sum assured as follows:-
Basically it provides long term financial protection to the dependents. It is particularly useful as a
means of protecting some of the expected wealth transfer that a parent would be aiming to make
to his/her children when he/she died. Such policy can also be tax efficient way of transferring
wealth at any age depending on legislation.
A unit linked plan is also a investment oriented product. As compared to other investment plan,
the investment portion of the unit linked plan functions like a mutual fund, it is invested in a
portfolio of debt & equity instruments, in conformity with the announced investment policy, and
hence it grows or erodes inline with the performance of that portfolio. Of course through out the
period of investment the policyholder enjoys an insurance cover as stipulated.
Term assurance:-
This is a pure protection policy, which provides the benefit on the death of as individual with in
a specified term.
A popular variant of the term policy is the decreasing term assurance policy under which the sum
assured decreases over the term of the policy. This type of policy can be used to meet two
specific needs firstly; it can be used to repay the balance outstanding under a loan in the event
the death of the policyholder. Secondly it can be used to provide an income for the family of the
deceased from the time of the death up to the end of the policy term.
Immediate annuity:
This type of policy meets the policyholders need for a regular income, for exp after his or her
retirement. The policy can also be structured to provide an income for a limited period, for exp
to pay the school fee of the policy holder’s children
Deferred annuity:
A deferred annuity enables the policyholder to build up a pension that becomes payable on
his/her retirement from gainful employment. At the vesting date of annuity the alternative of
lump sump may be offered in lieu of part or all of the pensions.
Riders:
Riders are add-on to the insurance policies described above. This add-on’s can be purchased
with the base policy on the payment of a small additional payment. The commonly offered riders
in Indian context are:
Early Period:-
Insurance is some from is as old as historical society. So called Bottomry, contracts were
known to merchants of Babylon as early as 4000-3000 BC. Bottomry was also practiced by the
Hindus in 600 BC and was well understood in ancient Greece as the 4th century BC. Under a
bottomry contact, loans were granted to merchants with the provision that if the shipment was
lost at the loan did not have to repay. The interest on the loan covered the insurance risk. Ancient
Roman law recognized the bottomry contract in which an article of agreement was drawn up and
funds were deposited with a money changer. Marine insurance become highly development in
the 15th century. In Rome there were also burial societies that paid funeral costs of their member
out of monthly dues. The insurance contact also development early. It was known in ancient
Greece and among other maritime nations in commercial contact with Greece.
MEDIEVAL PERIOD:
Life insurance in its present from came to India from the United Kingdom with the establishment
of British firm, oriental life insurance company, in Calcutta in1818. This was following but the
formation of Bombay life insurance company in1823, the madras equitable life insurance
company in 1829, and the oriental govt. life insurance company in 1874, the first general
insurance company, the triton insurance.
Company limited was established in Calcutta in 1850. The Indian mercantile insurance company
ltd. which was set up in Bombay in 1907 was the first Indian company to transact all classes of
general insurance business. Even though the first life insurance company was established in
1818, there was no excusive legislation to govern the activities of all insurance companies.
In 1912, the Indian life insurance company act was enacted to control the operation of life
insurance companies. Thus act was modeled on assurance company act, 1909 of UK. In 1928 the
Indian insurance company act was passed. This act amended the 1912 act and provided for
collection of statistics concerning insurance business other than life business. it also covered the
foreign companies operating in India.
MODERN ERA:
In April 1945, a committee under the chairmanship of sir cowasji jehangir was appointed to
enquire in to the undesirable developments in the management of insurance companies and
recommended suitable measures. on the basis of recommendations of this committee, a bill was
introduced in 1950 and passed in the same year as the insurance [Amendment act 1950], the life
insurance corporation of India came in to being on September 1 st 1956 with the compliance of
life insurance corporation of India act 1956, the general insurance business nationalization act
1972 was passed an general insurance business was nationalized with effect from January 1,
1973.
On April 7, 1993 the government appointed as a sequel a committee headed by shri R.N
malhotra to examine the reforms required in the insurance sector. The committee in its report
submitted on January 7, 1994 recommended among other things, the opening up of insurance
sector to player other than the state owned ones. The service standards of Indian insurance
majors, an extend insurance coverage to larger section of the Indian population. These
recommendations were accepted by the government and insurance regulatory and development
authority act 1999
Consequent amendments to the insurance act 1938, life insurance corporation act 1956 and the
general insurance business act 1972 were passed in the year 2000, paving the way for the
opening of the insurance sector. Subsequently, the IRDA brought out many REGULATIONS
FOR CONDUCT OF BUSINESS IN India an opened the window for accepting the application
for licensing of insurance companies with effect from augest, 16, 2000.
Insurance regulatory environment:
after fighting an intense political battle for more than six years, insurance regulatory and
development authority act saw the light of the day at the fag end of 1999, by the en of 2000, the
insurance regulatory and development authority [IRDA] which was given the statuary power by
the IRDA act, acted relentlessly to establish the rule of the law in the newly opened up domestic
insurance industry. the authority has already enunciated regulations on all the vital operational
areas including registration of Indian insurance companies, obligations of insurance to rural
social sector regulations, general insurance and general insurance reinsurance regulations
actuarial report and abstract regulation licensing of insurance agents regulations insurance
advertisement and disclosure regulation, investment regulation and accounting standard
regulation.
Entry of foreign companies:
With the passage of insurance regulatory and development act [IRDA] through Indian parliament in
late 1999, investment in this sector has been opened up to foreign investors. The following are the
salient features of the new foreign investment policy in this sector according to the present
investment policies.
It requires the Indian promoter to invest either wholly in an insurance venture or team up
with a foreign insurer, with a capital of 26 percent of equity for the foreign partner.
The Indian promoter is permitted to invest only after 10 years the Indian public, through a
public of ring of shares, at which the equity structure will provide for equal participation
between the India and foreign partner with a share of 26 percent each in the share capital.
Foreign insurance companies will not have to go to foreign investment promotion board
[FIPB] to get their proposals cleared .clearance from the insurance regulatory and
development authority [IRDA] is adequate. After the IRDA approval, the reserve bank of
India is to be informed.
A capital of 26 percent foreign capital is meant to ensure that the financial interest substantially vests
with the Indian promoter. However this will also permit the foreign co promoter a definite say in
direction and management of the company. [By Indian company law, 26 percent is the minimum
equity to move a resolution or veto a resolution in board of director meeting].
Procedure for registration
A company desirous of entering the insurance sector in India has to make a requisition for
registration addressed to the IRDA; the company has to apply to the IRDA for grant of a certificate
of registration. The application should clearly indicate the category of business.
Evidence of having 100 crores or more paid up equity share capital in case the
registration for the grant of certificate is for life insurance business or general insurance
business.
Evidence of having Rs. 20 crores or more paid up equity share capital in case the
application for the grant of certificate is for re-insurance business.
Registration fee:
A fee of Rs 50 thousand for each class of business has to be made by the application
in favour of the insurance regulatory and development authority payable at New Delhi.
An application granted a certificate of registration has to commence business, for
which he has been not be able to commence the business with in specific period of 12
months it can seek an extension by a proper written application to the authority.
The authority beyond 24 months grants no extension of time from the date of grant of
registration.
Some of the foreign companies have started business in India and other are in process
of launching their products. reliance, Sundaram, alliance, ICICI PRU, HDFC
STANDARD LIFE , max new York, BIRLA SUNLIFE, ING VYASA, OM KOTAK
MAHINDRA,TATA-AIG for life and non-life, IFFCO TOKYO marine for non life have
already receive their license from the IRDA to start their business.
PRODUCTS:
Jeevan chhaya
Jeevan sachay
Jeevan surbhi
Money back policy
Cash back
Hdfc standard life insurance
E. PENSION PLANS
Jeevan suraksha
Market plus
Future plus
F. TERM POLICIES
LIFE INSURANCE CORPORATION
Bima kiran
Bima sandesh
Convertible term assurance plan
Temporary assurance plan
Life guard
Max newyork life insurance
Five year term renewable and convertible
FEATURES:
1. MINIMUM AMOUNT 5000/-INCREASING THERE AFTER IN THE MULTIPLES OF
1000
2. FUNDS AVAILABLE:
a. bond fund
b. income fund
c. balanced fund
d. growth fund
3. IN CASE OF DEATH NOMINEE WILL GET SUM ASSURED+ UNIT VALUE PRICE IN
THE FORM OF REGULAR PENSION
FEATURES:
1. MINIMUM AGE OF ENTRY 18 YEARS COMPLETED
2. RIDERS AVAILABLE
3. DOBLE BENEFIT[ EATH BENIFIT + MATURITY BENIFIT]
4. ANY TIME PREMIUM PAYMENT OPTION
5. PARTIAL SURRENER OPTION
FEATURES:
OUTLOOK REPORT
BAJAJ ALLIANZ FUNDS LAUNCHED INJULY 2004 ARE THE TOP MARKET
PERFORMERS EXIBITING AN ANNUALIZED RETURN SICE INCEPTION ON 48 PERCEN
ON ITS EQUITY PLUS OPTION AND 32 PERCENT ON EQUITY INDEX FUND.
First three premiums should be paid on due date, in case if premium is not paid on due date
insurance cover is lapsed only invested amount is paid there after.
After completion of 3 years any time premium facility is available
Exemption of 2 year is given for non payment of premium after three consecutive years
to maintain insurance cover.
Top up amount will be 25 percent of the premium till paid
3 year lock in period for with drawl of top up amount
BASIC TERMINOLOGY OF INSURANCE
Many people go about buying insurance without being aware of basic terminology
being used and the product being offered. It is not possible to touch upon all products
offered by different insurance companies worldwide as there is too much variety and
as many local products tailored to specific needs. Here I, touch upon the basic
insurance terms and what they mean, so that the person buying the insurance product
is aware of what he is going in for and the implications there of.
The person buying the policy is not necessarily the beneficiary. He is the policy
holder and is insured.
The insurance company selling the policy is the insurer. The person who will get the
money when and if the policy holder dies is the Beneficiary. The beneficiary is
nominated in the policy by the policy holder or insured person. So the beneficiary is
the Nominee.
The premium is the amount of money you pay to the insurer to buy a policy. It can
be a Single Premium Policy (premium paid only once) or an Annual Premium Policy
(premium is paid annually for a fixed tenure).
The Term of the policy is the number of years you bought the policy for. It is the
number of years that the policy will run.
There are primarily two kinds of policies (with minor variations built in, depending
upon a country's laws and product innovations):
Before we proceed further, we must understand that the Sum assured is the
guaranteed amount of payment specified by the insurer (insurance company) in case
of death or in case you outlive the policy ( in case of endowment policies). This may
also be known as Coverage.
Maturity Value is the amount of money the insurance company is bound to pay you
and is an addition of the Sum Assured and any declared Bonuses.
Bonus is the amount the insurer agrees to pay in addition to the sum assured. It may
be a Reversionary bonus and is added to the policy throughout the term of the
policy. It may not be payable immediately but will be given to beneficiary in case of
death or the insured in case, maturity amount is payable.
A Rider is an optional feature that can be added on to a basic policy. You may
want to buy a rider for say critical illnesses or accidents etc. The insurer will normally
charge an additional premium value for every rider you add on.
You may want to discontinue your policy after a specific time on account of various
factors. The amount of money the insurance company pays you when you surrender
this policy before its maturity value is the Surrender Value. Normally the insurance
company will try to limit the payment under this process and the insured is likely to
lose out on bonuses and other accrued additions.
The Paid up Value of the policy is a different concept to the surrender value. If you
stop paying the premium after a number of years before the full payment term of the
policy, the policy is adjusted downwards for the Paid up Value. It will now run
normally without additional payments till maturity but the value of the sum assured
will have been adjusted downwards.
Survival Benefit is the amount of money that will be paid if you survive (live
for) specified terms under the policy. You could be paid money if you survive for say
five years, ten years and so on, till the maturity of the policy. The sum assured is paid
to the beneficiary incase of death, irrespective of any survival benefits paid.
Consideration in choosing a policy
Review your own insurance need and circumstances. Choose the kind of policy that has
benefits that most closely fit your needs. a life insurance agent or a financial advisor can
help you in this task
Be sure that you can handle premium payments. Can you afford the initial premium? If
the premium increases later and you still need insurance, can you still afford it?
Don’t buy life insurance unless you intend to stick with your plan. it may be very costly if
you quit during the early years of your policy terms
If you are thinking of surrending your insurance policy or replacing it with a new one,
you should carefully assess the surrender value and the rights and the benefits of the new
policy.
FUTURE TRENDS:
More expectations from the new players:
Though LIC and GIC were the only insurance companies in India, the penetration level of these
companies have not been very high.
1. Per capita premium in India is quite low compare to developed economies. Per capita
insurance premium in India in 1999, US$823 for Hong Kong and US$144 for Malaysia.
2. while insurance premium as a percentage of GDP was 14% for japan,13% for south Africa
12% for korea,9% for UK and France, it was only around 2% in India[compared to world
average of 7.8% in 1999]
3. While the insurance premium as a percentage of GDS gross domestic saving was 52% for
UK, 35% for other European and American countries, it was only 9% India in 1999.
4. The share of India in the world market in terms of gross insurance premium is again very
small. for instance while Japan has 31%,european union 35%,south Africa 2.3%,canada 1.7%
share of the global insurance premium, it is only 0.3% for India.
hence the opening up of the insurance sector to private insurance has put a great
responsibility on them to ensure fast growth of insurance so that India can come up to the
level of developed countries of the world in offering the insurance cover to citizens. Those
reflect that there is a big scope for new players in the liberalized insurance sector.
Insurance products have a correlation to both lifestyle and level of economic activity. it would be
folly to assume that products, which are marketing success in the west, will be equally success in
India today LIC has more than 60 products and GIC has more than 180 products offer in the market
but many of them are outdated and may not be best suited to the needs of the modern day consumers.
Old as well as new insurance will have to offer innovative products to the consumers.
1. Being agriculture based economy; there are immense opportunities for the new
entrants to provide the liability and risk associated in this sector like weather
insurance, rain fall insurance, cyclone insurance, crop insurance etc.
2. Housing finance, auto finance, credit cards and consumer loans all offer an
opportunity for insurance companies to introduce new products like creditor
insurance etc.
3. the lack of comprehensive social security system combine with a willingness to save
means that India demand for pension products will be large.
4. Service sector is taking a large and growing share of India’s GDP this offers immense
opportunities for expansion opportunities.
There are other segments such as natural disaster insurance or insurance against
terrorism that may provide potential opportunities.
Insurance companies create products and go out to find customers. They do not create
products that the market went factors such as increasing life expectancy, is integration
of the traditional joint family system and the rising cost of healthcare are bound to
make the market claimer for the variety of insurance products. For exp tata AIG
general insurance has launched business guard policies for shopkeepers. Business
guard policy offers a package of insurance that would cover earthquake fire loss of
rent burglary and personal accident cover. There are two versions of the policy-jyoti
and sanjeevni while jyoti targets small shopkeepers with a maximum sum assured of
Rs. 10 lakh sanjeevni is meant for big shopkeepers with a significantly higher sum
insured.
Values can test the unconventional distribution channel like brokers corporate agencies,
financial intermediaries, bank assurance, affinity group and direct marketing through
telesales financial intermediaries. Some channels will be cheaper than others; hence there
will be competition among the channels. The new insurance can leverage by multiple
distribution channels.
Today LIC has around 7, 00,000 agents in the country, and has also create an enviable
brand name, particularly among the rural population of the country. It has around
US$40billion as its life fund and is a strong player in the financial sector. However, on
the qualitative side, it has very little to take pride in and therein lies the potential for
foreign players in Indian insurance sector. in future the LIC urban market share will be
effected by new entrants but LIC can compensate with strong brand equity in rural area
because it would not be easy for them to gain trust of the rural masses.
Application of IT:
Entry of new private players will also bring in updated technology, efficient management
system and a healthy business culture. the new players with state of art technology under
their belt will be in advantageous position.
Untapped potential:
There is no doubt that the potential market for buyers of insurance is significant in India and offers a
great scope of growth. Though a vast population waits to be served a well-defined strategy to reach
out to this population is a must. Much of the demand may not be accessible because of poor
distribution, large distance or high cost relative to returns. Solutions to such problems must come out
clearly from the strategy. Rather than adopting a myopic. Strategy of targeting the business of
existing companies, the new entrants should spell out a strategy to expand its market.
Most of the Indian corporation planning to enter insurance has no prior experience in the insurance
business. But they can bring to the table valuable insights into the psyche of the typical Indian
consumer. Their knowledge of the distribution channel, a key ingredient for the successful delivery
of insurance products, is a substantial value addition to the relationship.
Inefficient asset management and low investment yield are responsible for high premium charged by
Indian insurance companies; private companies would be more proactive in managing their
investment in spite of the restriction on investment by IRDA.
Role of regulator:
Private insurance industry is in very nascent stage. It requires some extra care. Therefore IRDA has
twin roles regulations as well as development. it is said that no game is possible without rules but too
many rules spoil the game. Hence the regulator has to ensure a balance in the enactment of the
regulations.
Although foreign players may be tempted to keep their operation in the big cities for the creamy
layer of the society the real market lies in rural India which accounts for the lions share of LIC’S
present business. The foreign players must learn to adapt to Indian realities. The well publicized
failures of world famous consumer goods companies like Electrolux, whirl-pool, Reebok, Nike etc.
to gauge the Indian psyche and sentiment demonstrate the concept. They failed in the areas of
realistic pricing product promotion and reaching to the consumer. The foreign companies need to
know the “ground realities”. Other companies such as Mc Donald have modified the business
strategy, keeping in view the eating habits, culture and psyche of the local customer.
1. MONOPOLY: - the insurance sector till now enjoyed monopoly so it has total
control over the business.
2. SOCIAL FACTORS: - collapse of joint Hindu family system an advent of nuclear
family system because of better career opportunities at places far away from native
places as result of increasing industrialization caused greater social security. So more
and more people were motivated towards insurance.
3. ECONOMIC FACTORS: - more jobs and better opportunities because of
industrialization improved the standard of living. New products and services change
in the life style of people. So they opted for insurance of recovering the risk of theft
and other mishappening.
Besides other factors like more tension in challenging jobs, tax benefits associated with
insurance instruments greater life expectancy, increased risk to the life of a person because of
rapid changes in the environment also resulted in more persons going for insurance.
Performance of LIC:-
LIC has been growing at annual rate of 15 to 20 % consistently for the last several years. The
claim settlement ratio of LIC is at the order of 97% the malhotra committee report, which looked
in to the performance of this sector, found a fairly high degree of consumer satisfaction. govt of
India invested by way of equity Rs. 5 crores in LIC 1972. Without additional need for investment
in equity LIC has generated enormous surplus and has been paying large dividends and corporate
taxes to the govt. year after year.
The govt. was of the order of Rs. 197.97 crores after paying corporate taxes of Rs. 563.03
crores. Policy holders have in general received good return on their investment. This is
confirmed by increase in bonus rates, which have gone up from Rs. 12.80 per thousand to Rs.
102 per thousand for whole life policies in period 1997-98.
Information given about LIC clearly shows the excellent growth rate of LIC. Today LIC has
become the leading investment institution of India. In order to reach to people in every part of
country it has developed as vast service network, comprising of 7 zonal offices, 100 divisional
offices, and 2048 branches which together employ 124000 persons and 651000 agents. Besides
LIC contributed in social welfare projects like water through life funds, book value of socially
invested increased from Rs. 1218.52 crores in 1974-75 to Rs. 88831 crores in 1998-99 showing
an annual growth of 35.82%.
CHAPTER -2
REVIEW
OF
LITERATURE
Review of literature:-
The union govt. introduced the insurance [amendment] bill 2001 during the monthly
concluded monsoon session of parliament. The draft bill proposes entry of operative in insurance
sector, appointment of brokers as intermediaries, and merchant for insurance through credit
cards. The bill seeks to permit co-operative concerns to enter the underwriter business by setting
up a separate society. It also permits to issue cooperative societies to enter the distribution
business. It recognizes as intermediaries in the insurance business and enables them to receive
brokerage fee. at present cooperative societies can only enter the insurance sector by parliament
they setup and underwriter company under cooperative act.
Liberalization of Indian insurance sector has been the subject of much debate for some years.
The policy makers wanted competition, development and growth of this insurance sector which
is essential for channels the investment into infrastructure sector. At the other end the policy has
the fear the insurance premium which are substantial, would but of the country, and wanted to
have cautious approach for participation in the sector. Though some changes and some active
clauses as regards to the foreign participants were included.
Whether the insurer is old or new, private or public, expanding the market will present
multitude of challenges and opportunities that insurance sector will have still remain under the
realms of the possibilities and speculation. What is the likely impact of opening up India’s
insurance sector?
Conceptualization:-
Insurance is an arrangement to deal with unpleasant contingencies. It is contractual arrangement
which partial or total protection against adverse, typically financial outcomes. While there are many
outcomes of risks which are insurable, there are many more against which there can be no insurance.
Broadly insurance contracts can be divided into life and nonlife insurance. Life insurance in
particulars provides protection to the house holds against the rise of premature death of its income
earning member. In traditional; societies such as India, the joint family system itself provided an
insurance umbrella and successor to surviving family members. in modern times such arrangements
are now increasingly made to the market mechanism by buying insurance. Thus, individual pay a
price called premium to the insurance company for such a contractual arrangement, and the
insurance company in turn provides compensation if specified event occurs or any mishappening.
By making such contractual agreement with a large number of individuals and organizations the
insurance company can spread the risk. This gives insurance its social characteristics, in sense that it
entails pooling of individual risks.
Life insurance in modern times also provide protection against other life relate risks such as risk of
longevity [i.e. risk or outliving other source of income] and risk of disease an richness [health
insurance].
CHAPTER -3
RESEARCH
METHODOLOGY
RESARCH DESIGN:
Research design stands for advance planning of methods to be adopted for
collecting the relevant data and the techniques to be used in their analysis keeping
in the view the objective of research and the availability of time and money. Research
design in fact has a great bearing on reliability of results arrived at.
The research study carried out is descriptive and diagnostic in nature. Descriptive
research includes surveys and fact finding and enquiries of different kinds. The
major purpose of these types of research is description of states of affairs as it
exists at present. The main characteristic of this method is that the researcher has
no control over the variables; he can only report what has happened or what is
happening.
After research design is made, next step is to design a sample and the sample
will made after considering the objectives of research and budgetary constraints.
SAMPLE PROCEDURE
The sample size taken in this research is 50. In our research we have used
probability sampling. Probability sampling are those based on random sampling,
systematic sampling, stratified sampling, area sampling. In our research we have
used stratified sampling. In the study the population from which the sample to be
drawn does not constitute a homogenous group. So, we apply stratified sampling
so as to obtain representative sample. Under this technique, the population is
stratified in to different sub population known as strata and sample items are selected
from each stratum. In our research study, we divide the
population in to 4 strata’s:-
We have divided our population in to 4 strata’s because these 4 group have different
investment portfolio, awareness of financial activities Is also different. Their behavior
pattern was also different. Some were risk averter and some risk gamblers. Items
selected from each stratum is based on random sampling. So, firstly we divide the
population in to different strata’s and then select the items randomly. It is known as
stratified random sampling.
DATA COLLECTION
The data is of two types:-
Primary data
Secondary data
Primary data are those which are collected afresh And for the first time and thus
happens to be original In character . Secondary data are those which have already
been Collected by some one else and which have been Passed through the
statistical process. In our research we have used both types of data
In our research we are using various sources for Collection of published and
unpublished data with the help of fact sheets of various companies, annual reports, news bulletins,
and information brouchers, web sites.
3. To know the investor perception towards investment in insurance Fund as compare with
other investment tools.
It was in the 12th century in which the idea of insurance was first conceptualize. At the time it
was used more as a tool for protection against financial loss of sea fearer in foreign trade. Since
then this concept has undergone several changes. It is basically the unforeseen contingencies of
human life that has given a totally new look to the insurance industry. Gradually as competition
increased the benefits given by the industry to its customers improved by leaps and bound. It was
the breakup of the traditional extended family system that provided a natural umbrella to each an
every member of the family, which give the insurance institution an impetus to excel.
Journey of insurance business in India is very long. There was mushroom growth of
insurance company during the period. In spite of mushrooming of many insurance companies
percapita insurance India was merely Rs. 8 in 1944 as against rs.600 in US and UK respectively.
Even this limited growth is marked by many malpractices, deficiencies and frequent liquidations
of insurance companies shaking public confidence and depriving policyholders of their saving
and security. it is reported that in those days insurance and banking was in the control of big
industry houses in resulting in interlocking of funds between bank and insurance companies.
These irregularities are mainly of two types. Firstly malpractices that had crept into management
of insurance company especially during 1940s such as acquisition of insurance
company by financeries and use of life insurance funds to serve other enterprises in which the
financiers was interested or for speculation ,
Payment of large emolument to nominees of the controlling interests and interlocking of
funds between banks and insurance company. Secondly factors which have operated for year
towards disruption of Indian insurance such as excessive costs, rebating and unsatisfactory
standards of management of business.
Life insurance Corporation in the year 1956 dominated personal insurance sector. General
insurance sector still was in private hands. It was mainly confined to small entrepreneurs and
ancillary units attached to big industrial plants. With the growth in the process of
industrialization in India, because of three wars in decade [1962, 1965, 1971] focus of central
government shifted from industrial sector to defense sector.
The shift caused economic slowdown which resulted in fund shortage faced by industrial
units. All these development has a bad impact on the general insurance sector.
Taking into the account the bad health of private operators and vast funds mobilization
potential in this sector, government of India nationalized the general insurance sector with effect
from 1st January 1973. It formed four subsidries [new India insurance company ltd., the oriental
insurance company ltd., the united India insurance company lt., the national insurance company
ltd.
1. Limited time: There was limited time in which this project has to be completed. Therefore it
was a major limitation of the study.
2. Limited Area : The area covered in this project was only Rohtak, not whole Haryana.
3. Few interaction: There was little interaction with the people as we were only limited with
in area.
4 Communication Problem : The accurate decision can not be taken by the information
collected; people were relucate while giving their personal information
6 Dynamic nature of the environment, what is true and relevant today may not be true and
relevant tomorrow.
CHAPTER -4
DATA ANALYSIS
&
INTERPRETATIONS
The following graph depicts that 64% of the respondents below age 40 and only 6% of the
respondents are of age 50. It indicates that young people are more aware and conscious toward
insurance policies. Category.
EDUCATION LEVEL
Particulars no. of respondents percentage
10th level 10 20
12th level 13 26
Graduates 25 50
Postgraduates 12 24
Total 50 100
The following graph depicts that 20% of the respondents have education till 10th and 26% of the
respondents are 12th pass 50% respondents are graduates,24% are post graduates It indicates that
graduates are much conscious than under graduates.
OCCUPATION
PARTICULARS NO OF RESPONDENTS PERCENTAGE
GOVT 14 28
PRIVATE 21 42
PROFFESIONALS 9 18
SELF EMPLOYED 6 12
TOTAL 50 100
The following figure shows that 42%of the respondents are private employees, 28% are govt.
employees, 18% are professionals and 12% are self employee it means employees are more aware
towards insurance policies.
MARITAL STATUS
PARTICULARS NO.OF RESPONENTS PERCENTAGE
Married 33 66
Single 17 34
TOTAL 50 100
It is observed that from the above table that 33 respondents are married 17 respondents are single
married persons are more aware of insurance.
NO. OF DEPENDENTS
PARTICULARS NO.OF RESPONENTS PERCENTAGE
1 16 32
2 8 16
MORE THAN 2 26 52
TOTAL 50 100
It is observed that from the above table that 26 respondents have more than 2 dependents, 8
respondents have 2 dependents and 16 have 1 dependents
ANNUAL INCOME
PARTICULARS NO OF RESPONDENTS PERCENTAGE
BELOW 50000 9 18
50001-100000 17 34
100001-150000 11 22
ABOVE150000 13 26
TOTAL 50 100
The following graph depicts that 34% of the respondents are in the income level of 50001-
100000 ,26% respondents has got above 100000 income,22% of respondents comes in net annual
income and rest 18% comes under below 50000 category.
INVESTMENT AVENUE
PARTICULARS NO OF RESPONDENTS PERCENTAGE
INSURANCE 12 24
MUTUAL FUNDS 18 36
BANKS 10 20
SHARE MARKET 10 20
TOTAL 50 100
The following graph depicts that 36% of the respondents are interested in mutual funds, 24%
respondents are interested in investing in insurance 20% are interested in banks an rest of the 20%
are interested in share market
It is observed that from the above table that 15 respondents take insurance policy to secure their
future, 8 respondents take insurance to avoid tax and 17 take insurance for investment purpose, 10
respondents observe that it gives good return.
POLICY CHOICE
PARTICULARS NO OF RESPONDENTS PERCENTAGE
TERM PLAN 18 36
MONEY BACK 12 24
RIDERS 10 20
ENDOWMENT PLAN 10 20
TOTAL 50 100
The following figure shows investor attitude towards the policy 18 respondents wants to take term
plan 12 respondents wants to take money back 10 respondents wants to take riders, consumer is
much crazy in taking term policy.
AWARENESS THROUGH
The following graph depicts that 36% of the respondents get knowledge through agents in mutual
funds, 24% respondents get knowledge through friends, and 20% get knowledge from advertisement
and other sources
MACRO ANAYLYSIS
This project is a study related to marketing of insurance in Rohtak assessing the marketing
opportunities. After the survey conducted in Rohtak, it was found that LIC is the backbone of the
insurance sector and no.1 position with respect to its competitors. LIC is the only an only one
company that consists of no. of policy avenues of all age group, but now a days other private
companies are capturing the market.
In the end I would like to say that LIC is the heart of insurance sector in terms of its old age brand
popularity in insurance sector. New private players are coming in the market but still LIC has got its
brand popularity that’s why it is the choice of a novice and experienced investor.
CHAPTER -5
FINDINGS
SUGGESTIONS
FINDINGS:
BASED ON MY ANALYSIS OF DATA COLLECTED DURING MY RESEARCH WORKS ON”
CONSUMER AWARENESS TOWARDS INSURANCE PROUCTS” I HAVE GOT THE
FOLLOWING FINDINGS:
CONCLUSION:
An attempt is made by the respondents to identify the level o awareness among the respondents
towards the new policies offered by companies.
From the study it is observed that because of new companies various schemes and low premium the
investor has a forced attraction to invest in the new companies. The new companies as well
existing company should develop a suitable strategy to attract and retain their customers.
These companies can protect not only the investor’s interest but also the interest of the company at
large.
SUGGESTIONS:
BIBLIOGRAPHY:
Kothari, C.R 2003[research methodology, 2nd edition]
Indian journal of industrial relations vol-37 number 3, january2004 by r. Anand sen gupta, Ashish
sen gupta.
www.insurancemagic.com
www.investor.com/scripts/insucareer.asp
www.moneyguru.com
www.delhischools.com/career/insurance.htm
Questionnaire
1. What is your age?
a. up to 30 b. 31-40
c. 41-50 d. above 50