A MAJOR PROJECT REPORT

ON
STUDYING THE PURCHASE BEHAVIOR OF
CUSTOMERS TOWARDS LIFE INSURANCE
PRODUCTS

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE
DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION 2016-19

UNDER THE GUIDANCE OF

Mrs. Shweta Rastogi

SUBMITTED BY:MANAV
Roll no.-06061101716
Batch No.-2016-19
BBA SEM-V1 Section-B

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University, Delhi
PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086

1
 TABLE OF CONTENT

Student Declaration I

Certificate from guide II

Acknowledgment II

S.NO. TOPIC PAGE

NO.

1. CHAPTER 1- INTRODUCTION
6-7

2. CHAPTER 2-RESEARCH METHODOLOGY 8-12

CHAPTER 3- DATA ANALYSIS AND

3.
INTERPRETATION 13-29

CHAPTER4
-FINDINGS,CONCLUSION,SUGGESTIONS&
4. 30-
RECOMMENDATIONS

28
BIBLIOGRAPHY

ANNEXURE 29-31

2
 STUDENT DECLARATION

This is to certify that I have completed the Project titled “STUDYING THE PURCHASE
BEHAVIOR OF CUSTOMERS TOWARDS LIFE INSURANCE PRODUCTS”

under the guidance of “Mrs. Shweta Rastogi” in partial fulfillment of the requirement for the
award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of
Management Studies, Delhi. This is an original piece of work & I have not submitted it
earlier elsewhere.

Manav
(06061101716)

3
 CERTIFICATE

This is to certify that Project Report entitled, “STUDYING THE PURCHASE BEHAVIOR
OF CUSTOMERS TOWARDS LIFE INSURANCE PRODUCTS” which is submitted by
Manav in partial fulfillment of the requirement for the award of degree of Bachelors of
Business Administration to Maharaja Agrasen Institute of Management Studies (affiliated to
GGSIP University, Delhi) is a record of candidate’s own work carried out by him/her under
my supervision. The matter embodied in this report is bonafide and has not been submitted
for the award of any other degree.

Mrs. Shweta malik

4
 ACKNOWLEDGEMENT

It is a matter of great satisfaction and pleasure to present this project on “STUDYING THE
PURCHASE BEHAVIOR OF CUSTOMERS TOWARDS LIFE INSURANCE
PRODUCTS”, on the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards all the personages who have helped me in this endeavour. Without their
active guidance, help, cooperation & encouragement, I would not have made headway in the
project. I express my gratitude to all those who have directly or indirectly helped me to make
this project.

I would like to thank our project guide, Mrs.Shweta rastogi, for sparing his precious time in
putting together all the bits and pieces I brought in as raw data to him, his contribution
towards the success of this project is unmatched.

5
 CHAPTER-1

INTRODUCTION

6
Introduction

As a human being every person have the risk from one or other source. At the same time,
being individual he has the responsibilities to discharge. Indian consumers are influenced by
emotional factors. But the same time their purchase behaviour is influenced by rational
factors. A Typical Indian believes in future and try to have better and secured life for his
family in future. A rupee earned by the person will be spent towards leading the family in
present and for the better life in future. Life insurance covers both the components viz., risk
coverage and saving. As the economy comprises of people in which majority of them are
middle classed and salaried, Insurance has emerging as the best option for saving and risk
coverage. But in India insurance is frequently well thought-out as a tax saving tool instead of
its additional implied long term financial benefits. Indian people are predisposed to invest in
property and gold followed by bank deposits. They selectively invest in shares also but the
percentage is extremely small.

Need for the Study

The study that was taken was to take a survey in the market, various life insurance
policyholders with an aim to analyze what the customers has in mind for taking the particular
insurance policy. For a reason from a particular company, this study aims in identifying the
influencing factors to take insurance policies, awareness of various promotional packages,
policies offered by the insurance companies. Since many people will consider insurance as a
savings option, given this apprehension in this minds of customers about the insurance
policies and different insurance companies, the present study was undertaken. The current
Insurance Industry in India, taking benefits of optimistic conditions in the economy, has seen
a remarkable expansion by leveraging LPG policy (Liberalization, privatization,
Globalization). It has endured a major face-lift and surfaces with conspicuous developments.
A gigantic bang has been perceived in life insurance industry in recent stretches. A Large
number of new players have entered the market and are vying to expand market share in this
swiftly improving marketplace. The study is conducted in the city of Vishakhapatnam and
deal with the factors touching a person for going for a life insurance. The study then goes on
to estimate and analyze the findings so as to present a clear picture of trends in the life
insurance sector with respect behavior of benefits of life insurance policies in the mind of the
people.

7
Literature review

Antony Beckett, Paul Hewer and Barry Howcraft (2000) [1] found that new technology have
created highly competitive market conditions which have huge impact on consumer behavior
in financial services. The researchers have stressed that the service providers need to
understand the buying behavior of customers. A model was proposed to understand the
concept of consumer behaviour towards financial products. Kyoko Fukakawa (2012) [2]
based on the data collected form 72 UK customers explored the possible occurrence ethically
questionable consumer behavior. Sandeep Chaudary (2016) [3] has extracted six factors that
influencing consumer behavior namely customized and timely services, better company
reputation, customer convenience, better service quality, tangible benefits and effective
customer relationship management. This study revealed that new and innovative products
will enhance better customer relationship management basing on sample study of 100
respondents. S.Narender and L. Sampath (2014) [4] have stated that though insurance
industry is old, the awareness on rules, regulations and rights is very negligible. Through the
empirical study conducted among the respondents, it was concluded that major financial need
for the customer during coming future will be children’s education and marriage expenses.
Harinam Singh (2014) attempted to identify the overview of customers on various life
insurance companies of Uttar Pradesh. The authors revealed that insurance is the mainstay of
any market economy which has a scope to pool large financial sources FPR longer periods of
time. The study suggested that insurance companies International Journal of Commerce and
Management Research 2 should provide customized solutions for the customers in a
customized manner by understanding the needs of customers. Dipin Madhr and Ashish
Tripathi (2014) [6] have studied 29 factors out of literature that influence choice of customer
in choosing an insurance company among 120 sample in Ajmeer city. From the study, the
researchers found that there are 9 key factors among 29 which contains clubbing variables
that highly influencing the choice of customers in choosing insurance companies. M.Vijaya
Raghu Nadhan (2016) [5], in his study on consumer behaviour towards life insurance
companies with reference to two private insurance companies revealed that consumer
behavior and customer purchase service attempts are depends on factors like Search,
experience and credence factors. The study concluded that customers will give preference to
wealth insurance schemes.

8
 CHAPTER-2
RESEARCH
METHODOLOGY

9
2.1Research Methodology of the study

Research Methodology decides the territory of proposed study and gives information to the
readers about adopted process of analysis for the respective study. This includes aims for
which the study is undertaken. This also clarifies time, scope, data sources etc. of proposed
study. Another significant aspect is tools and techniques which are used for the study. In brief
this chapter helps to the researcher to decide his path of research work.A Research
Methodology defines the purpose of the research, how it proceeds, how to measure progress
and what constitute success with respect to the objectives determined for carrying out the
research study. The appropriate research design formulated is detailed below.

2.1.1 Research design:

A research design is the detailed blue print used to guide a research study towards its
objective. It helps to collect, measure and analysis of data. It is the specification of method
and procedure for accruing the information needed.
The present study is a descriptive research study based on analytical research design. The
secondary data from the annual reports of relevant banks for a period of 5 years (2008-2012)
have been taken.

2.2 Methodology of the project

For present study a structured questionnaire was designed and canvassed among the sample
respondents. A simple random sample method was chosen in collecting the required data
from the respondents. A sample of 150 was considered for the study from a huge population
of various policy holders of life Insurance. The collected data was analyzed and interpreted
through tables and graphs and findings are reported and suggestions made accordingly.

2.2.1 Objectives of the Study

The present study was performed with the following objectives:

1. To study insurance industry in general to identify the underlying facts.

2. To identify and analyze the factors affecting the choice of investors in choosing a life
insurance policy

10
 3. To offer suggestions based on the study, to improve the marketing strategies to design
policies in accordance with customer behaviour.

METHODOLOGY

Exploratory research: this kind of research has the primary objective of development of
insights into the problem. It studies the main area where the problem lies and also tries to
evaluate some appropriate courses of action. The research methodology for the present study
has been adopted to reflect these realties and help reach the logical conclusion in an objective
and scientific manner. The present study contemplated an exploratory research

NATURE OF DATA

PRIMARY DATA: Data which is collected through direct interviews and by raising
questionnaires.

SECONDARY DATA: Secondary data that is already available and published .it could be
internal and external source of data. Internal source: which originates from the specific field
or area where research is carried out e.g. publish broachers, official reports etc. External
source: This originates outside the field of study like books, periodicals, journals, newspapers
and the Internet.

DATA COLLECTION

Primary Data:

To be collected through structured questionnaires, personal interviews/ discussions with focus

on his/ her choice before availing for the service.

11
SAMPLE DESIGN

Sampling unit: (a) Insurance Agents

(b) Executives

(c) Consumers

Sample size: 100

Research Location: New Delhi, India

Research Period: Three months

2.2.2 DATA COLLECTION TOOLS:

This research study is based on secondary data. Secondary data has been used for the study of
Financial performance of selected Public Sector Banks. To collect the data I have referred –
Company annual report, annual magazine, last 5 year balance sheet, and cash flow
statements.

SECONDARY DATA SOURCES

Internal sourcesExternal sources

Annual Reports Other Reports Reference books World wide web

12
 CHAPTER-3
DATA ANALYSIS
AND INTERPRETATION

13
 PRIMARY DATA ANALYSIS

PERSONAL PROFILE

1. 58 percent of the officials belong to the age group of 35 and 50.

2. 22 percent of the officials belong to the age group of 25 to 34.
3. percent of the officials belong to the age group of above 50.
4. 69 percent are male officials.
5. 31 percent are female officials.
6. 72 percent are graduates and above.
7. 12 percent are those who are having technical and professional qualifications
8. 16 percent are undergraduates.
9. 55 percent are those who are associated with the field
10. 25 percent are those who are in the managerial and administrative posts.
11. 20 percent belongs to the others category.

14
 DATA ANALYSIS
1. How do you see the present scenario with regard to the insurance sector in India,
from the consumers’ point of view?
 Very conducive for investment ------------------------ 21 per cent
 Conducive for development -------------------------- 34 per cent
 Not conducive for investment --------------------------- 27 per cent
 Do not know/ Can not say ---------------------------------- 19 per cent

35%

30%

25%

20%

15%

10%

5%

Very conducive for investment Conducive for development

0% Not conducive for investment Do not know/ Can not say

The above response suggests that the insurance scenario of the country at the present is very
challenging. The investment factor may be more to do with the traditional base of the
insurance industry but in order to make the industry vibrant the sector needs to attract the
customers and to maintain them.

15
2. In the event of liberalization, the insurance sector is has been opened to the private
operationalisation. In this context, how do you see the public sector insurance
companies will be affected?
 The public sector has been made more competitive ---------- 18 per cent
 Public sector has been adversely affected ------------------ 56 per cent
 Public Sector has not been affected by this phenomenon------------- 12 per cent
 Do not know/ Can not say ------------------------------ 14 per cent

60%

50%

40%

30%

20%

10% The public sector has been made more competitive

Public sector has been adversely affected
Public Sector has not been affected by this phenomenon
0% Do not know/ Can not say

The above response suggests that with the increasing participation of the private sector
insurance companies post liberalization, the profitability and trhe performance of the public
sector insurance companies have been adversely affected. Despite the tall claims of the PSU
insurance companies, the competitive character of these companies is not significant if we go
with the response of our respondents.

16
3. The traditional base of the insurance companies ( PSU companies) have been
remained intact. Do you agree with this proposition?
 Yes ------------------------------------------- 48 per cent
 No --------------------------------------------- 42 per cent
 Do not know/ Can not say --------------- 10 per cent

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0% Yes No Do not know/ Can not say

The response indicates that the traditional base of the public sector insurance companies has
been more or less remained intact. 48 per cent of the respondents have agreed to the
proposition against the 42 per cent of the respondents who think otherwise.

17
4. Do you think that in the life insurance sector LIC is still the dominant partner
enjoying monopoly in the market?
 Yes ------------------------------------------ 76 per cent
 No -------------------------------------------- 14 per cent
 Do not know/ Can not say ----------------- 10 per cent

80%

70%

60%

50%

40%

30%

20%

10%

0% Yes No Do not know/ Can not say

An analysis of the above response suggests that despite the growing presence of the private
insurance players in India, LIC still enjoys the monopoly in the insurance market, particularly
in the life insurance sector.

18
5. Do you agree that the above monopolistic position is due to the large traditional
rural base of the insurance base of LIC?
 Yes ---------------------------------------- 67 per cent
 No ------------------------------------------ 15 per cent
 Do not know/ can not say ---------------- 18 per cent

70%

60%

50%

40%

30%

20%

10%

0% Yes No Do not know/ Can not say

The large rural base of LIC contributes to its monopolistic attribute in the life insurance
market in India.

19
6. Do you agree that being the dominant and major player in the life insurance sector, LIC enjoys
in not providing adequate service to its customers?
 Agree -------------------------------------- 53 per cent
 Disagree ------------------------------------ 29 per cent
 Do not know/ can not say ---------------- 18 per cent

60%

50%

40%

30%

20%

10%

0% Yes No Do not know/ Can not say

The non-responsive character of LIC in response to understanding the customers needs has to
do with its market dynamics and market penetration in which it thinks itself as the sole life
insurance provider to a large section of population in India.

20
7. Do you agree that LIC fulfils its customers’ needs satisfactorily?
 Yes -------------------------------------------- 37 per cent
 No ---------------------------------------------- 40 per cent
 Do not know/ can’t say --------------------- 23 per cent

40%

35%

30%

25%

20%

15%

10%

5%

0% Yes No Do not know/ Can not say

There exists certain gap between the expectations of the customers and the services offered
by the corporation. But the gap is very marginal and can be effectively filled up with strategic
marketing and HR practices.

21
8. Do you think that the customer satisfaction is more in private sector insurance than
in the public sector insurance?
 Yes --------------------------------------------------- 75 per cent
 No -------------------------------------------------------- 18 per cent
 Do not know/ Can not say -------------------------- 07 per cent

80%

70%

60%

50%

40%

30%

20%

10%

0% Yes No Do not know/ Can not say

The above response has clearly indicated that the degree of customer satisfaction has been
more for the customers in the private sector insurance than in the public sector insurance like
LIC. The factors that may be attributed are the technological use of the private sector
insurance companies and their dealing with the customers. They link profit with customer
satisfaction whereas in the public sector insurance companies do not attach so much vital
importance to this theory.

22
9. How do you see the foreign insurance companies operating in the Indian market?
 Have made the domestic insurance companies more competitive ---------- 43 per cent
 Have eroded the customer base of the Indian insurance companies -------- 28 per cent
 Have not affected the functioning of the Indian insurance companies ------ 10 per cent
 Do not know/ Can not say ------------------------------------- 19 per cent

45%

40%

35%

30%

25%

20%

15%

10%
Have made the domestic insurance companies more competitive

5% Have eroded the customer base of the Indian insurance companies

Have not affected the functioning of the Indian insurance companies
0% Do not know/ Can not say

The entry of the foreign insurance companies has made the Indian insurance companies more
competitive and this proposition holds more for the private insurance companies than the
private insurance companies.

23
10. Which are the policies of the company that are favorite among the customers?
Please give the reasons as you think.
 45 percent --------- Endowment policies
 32 percent---------Money back policies particularly Child growth, education and
career oriented policies.
 23 percent -------------- others

45%

40%

35%

30%

25%

20%

15%

10%

5% Endowment policies
Money back policies particularly Child growth, education and career oriented
policies.
0% others

Endowment and money back policies both are preferred by the Indian investors. But it is the
endowment policy which is more preferred than the money back policy.

24
11. What measures the company is taking to make its policies attractive and competitive
in the market?
 Professional management
 Wide publicity
 Attractive packaging
 Market research

40%

35%

30%

25%

20%

15%

10%

5%
Professional management Wide publicity
0% Attractive packaging Market research

25
12. How do you see the prospect of private insurance companies in India?
 63 percent ----------------very good
 22 percent -------------------good
 10 percent ------------------- not so good
 5 percent ------------------ do not know / can not say

70%

60%

50%

40%

30%

20%

10%

0% very good good not so good do not know / can not say

NHFHJ

26
13. What marketing strategies the company is adopting to promote its products and
services?
 77 percent ------------------------ target oriented aggressive marketing
 8 percent ------------------------ As per the market demand
 12 percent --------------------- Following the company policies and principles.
 3 percent ---------------------------- Do not know / Can not say

80%

70%

60%

50%

40%

30%

20%

target oriented aggressive marketing

10%
As per the market demand
Following the company policies and principles.
0% Do not know / Can not say

27
14. What are the emerging trends in the insurance industry in terms of product
innovations?
Several private players have ventured into the insurance industry since last four years and the
growth of the industry has been averaging around 15%. In the first year it was 100% but now
it has gradually tapered down to 15%. On an average it is around 10% to 15% per annum.
The life insurance industry has led the growth in the insurance sector. There the growth is
mainly due to unit linked products which are very akin to mutual funds product. They are
looked upon as investment returns. So, they involve a very small element of risk coverage.
Perhaps that is the reason they have picked up fast. In General insurance growth has come in
the form of personalized business like health insurance and the motor insurance. More
innovations have come in segments like overseas travel insurance policies. The procedures
have been simplified. Similarly in health several products have come up and many
modifications have been introduced. Some companies have packaged some of the policies
and they are giving extended coverage. The main bottleneck to innovation is that even today
70% of the market is tarrified. So you cannot issue a policy other than what is specified in the
tariff. More innovations will come once the entire market is detariffed. Only then different
products can be introduced. For example, more innovative health insurance products can be
introduced to suit the common people and different age groups.

15. The past 5-6 years have seen a boom in the number of insurance companies in the private
sector. How has the competition affected the prospects of LIC? Has the increase in the
number of companies affected the insurance penetration in India?

It has certainly affected the existing PSU insurance companies and our market share has
come down. The private companies have taken about 26% of the market share. All the PSU’s
put together have already lost around 74% of the market share. This means that the cake has
not expanded as expected. But the existing cake is being shared and the companies are eating
into existing fellows’ market share which is not a welcome step. Except for health insurance,
the market has hardly expanded about 5%. But the companies are very young; only about
four years old. Hopefully, the market will expand with increasing experience. Owing to
absolute freedom to price and devise own product, detariffed market is set to expand. LIC is
the oldest and the most experienced player in the market. How have the new players affected
LIC or how has LIC affected the new players? As per data the growth of LIC has been quite
substantial in the past year -- around 48% despite the presence of new players. But one
worrying factor was that the number of policies sold and the number of lives covered has

28
come down compared to the previous years. LIC has a very big advantage of being the leader
of the insurance sector. It has huge investment and financial strength. Owing to its bigger size
it has the best advantage of pricing as well as getting the better investment returns which can
subsidise its original insurance product. Therefore, like SBI continues to be the market leader
despite of so many private banks coming, LIC will continue to play a very big role and it is
not easy to destabilize it. It has lakhs of agents and has an enormous size and is less likely to
be affected. But of course it is being challenged and has been put on its toes.

29
 CHAPTER-4
FINDINGS
&CONCLUSION

30
FINDINGS

The study on consumer buying behaviour towards life insurance has depicted several facts. It
was found that majority of the customers towards life insurance are male in number when
compared with females. The age group which prefers to invest more in Insurance are
below30years age group and 31-40 years age group. These two groups have income potential
to invest in Insurance companies. Post graduates and graduates are showing more interest in
taking insurance policies as they have more awareness levels. As salaried employees are more
towards saving, majority of the people prefers to save 11% to 20% of their salary towards
savings. From the study it was found that majority of the people likes to invest in short term
policies than long term policies. It was found that family, advisors and self-interest are major
drivers in investing in insurance. The study shows that tax benefits, risk coverage and growth.
The study shows that majority of the customers of life insurance know up to 3 insurance
companies only and LIC is being one among them. Majority of the customers tries to seek
insurance policies from insurance advisors and they prefer to take insurance for
himself/herself and for his children. Form the study. It was found that maximum number of
the respondents prefers to take Insurance form Public sector insurance companies than private
sector insurance companies. The periodicity of investment lies from 5years to 20years basing
on the nature of the policy. Majority of the respondents are interested to invest in low risk and
safe return policies than high risk and high return policies. It was found that a customer of life
insurance likes to pay premium half yearly and annually than monthly and quarterly. The
study presents an interesting fact that majority of the customers have awareness on details of
the policy they buy. Overall, the study on consumer buying behaviour towards insurance
policy in Visakhapatnam city have given us the scope to understand the facts that are
influencing a typical Indian insurance customer to take an Insurance policy.

31
CONCLUSION

With a population of 1.1 billion, India is a perfect market for insurance and can generate
sufficient long-term funds for development of infrastructure sector. Insurance is also
important as it leads to capital formation. Countries with strong insurance industries have
strong infrastructure and strong capital formation. It generates long term capital to build super
highways, mortgages for buildings, at the same time it protects families and businesses in
case somebody dies. For exponential growth of insurance, the agents need proper education.
If they feel good about their job, feel that they are doing a social good and they are really
contributing to the welfare of the society, then there will be more of them.

The insurance business is at a critical stage in India. Over the next couple of decades we are
likely to witness high growth in the insurance sector for two reasons. Financial deregulation
always speeds up the development of the insurance sector. Growth in per capita GDP also
helps the insurance business to grow. It seems unlikely that the LIC and the GIC will shrivel
up and die within the next decade or two. The IRDA has taken a "slowly slowly" approach. It
has been very cautious in granting licenses. It has set up fairly strict standards for all aspects
of the insurance business (with the probable exception of the disclosure requirements). The
regulators always walk a fine line. Too many regulations kill the incentive for the newcomers;
too relaxed regulations may induce failure and fraud that led to nationalization in the first
place. India is not unique among the developing countries where the insurance business has
been opened up to foreign competitors. We observe that the openness of the market did not
mean a takeover by foreign companies even in a decade. Thus, it is unlikely that the same
will happen in India, especially when the foreign insurers cannot have a majority
shareholding in any company.

The traditional life insurance business for the LIC has been a little more than a savings
policy. Term life (where the insurance company pays a predetermined amount if the
policyholder dies within a given time but it pays nothing if the policyholder does not die) has
accounted for less than 2% of the insurance premium of the LIC. For the new life insurance
companies, term life policies would be the main line of business. The leadership lies not in
getting the maximum policy sold but in understanding the demography of the customer and
targeting them in their way. It has been found that LIC is market leader in insurance sector
and market of insurance is still open for heavy competition

32
BIBLIOGRAPHY/REFERENCES:

1. Berman, Peter. "Rethinking Health Care Systems: Private Health Care Provision in
India." Harvard School of Public Health Working Paper, November 1996.
2. Business Today. "The Monitory Group Study on Insurance I and II." March 22 and April
7, 2000.
3. Dasgupta, Samik. "RSA, Iffco-Tokio yet to appoint actuaries," Economic Times, January
23, 2001.
4. Kumari, Vaswati, "India Insurers Seek Perfect Partners." National Underwriters, March 5,
2001, 38-39.
5. Mitra, Sumit and Nayak, Shilpa. "Coming to Life." India Today, May 7, 2001.
6. Patel, Freny. "Centre wants GIC to merge unviable outfits before recast." Business
Standard, April 13, 2001.
7. Roy, Abhijit. "Pension fund business in India." The Hindu, July 16, 1997, p. 25.
8. Roy, Samit. "Insurance Sector: India." Industry Sector Analysis, National Trade and
Development Board, US Department of State, Washington, DC, December 1999.
9. Sigma. "World Insurance in 1999." No. 9/2000. Published by SwissRe. Available at
www.swissre.com.

WEBSITE LINKS:

www.google.com

33
 ANNEXURE

QUESTIONNAIRE:

1. How do you see the present scenario with regard to the insurance sector in India,
from the consumers’ point of view?
A. Very conducive for investment ------------------------ 21 per cent
B. Conducive for development -------------------------- 34 per cent
C. Not conducive for investment --------------------------- 27 per cent
D. Do not know/ Can’t say ---------------------------------- 19 per cent

2. In the event of liberalization, the insurance sector is has been opened to the private
operationalisation. In this context, how do you see the public sector insurance
companies will be affected?
A. The public sector has been made more competitive ---------- 18 per cent
B. Public sector has been adversely affected ------------------ 56 per cent
C. Public Sector has not been affected by this phenomenon------------- 12 per cent
D. Do not know/ Can’t say ------------------------------ 14 per cent

3. The traditional base of the insurance companies (PSU companies) has been
remained intact. Do you agree with this proposition?
A. Yes ------------------------------------------- 48 per cent
B. No --------------------------------------------- 42 per cent
C. Do not know/ Can’t say --------------- 10 per cent
D.
4. Do you think that in the life insurance sector LIC is still the dominant partner
enjoying monopoly in the market?
A. Yes ------------------------------------------ 76 per cent
B. No -------------------------------------------- 14 per cent
C. Do not know/ Can’t say ----------------- 10 per cent

5. Do you agree that the above monopolistic position is due to the large traditional
rural base of the insurance base of LIC?

34
 A. Yes ---------------------------------------- 67 per cent
B. No ------------------------------------------ 15 per cent
C. Do not know/ can’t say ---------------- 18 per cent

6. Do you agree that being the dominant and major player in the life insurance sector,
LIC enjoys in not providing adequate service to its customers?
A. Agree -------------------------------------- 53 per cent
B. Disagree ------------------------------------ 29 per cent
C. Do not know/ can’t say ---------------- 18 per cent

7. Do you agree that LIC fulfills its customer’s needs satisfactorily?

A. Yes -------------------------------------------- 37 per cent
B. No ---------------------------------------------- 40 per cent
C. Do not know/ can’t say --------------------- 23 per cent

8. Do you think that the customer satisfaction is more in private sector insurance than
in the public sector insurance?
A. Yes --------------------------------------------------- 75 per cent
B. No -------------------------------------------------------- 18 per cent
C. Do not know/ Can’t say -------------------------- 07 per cent

9. How do you see the foreign insurance companies operating in the Indian market?
A. Have made the domestic insurance companies more competitive ------- 43 per cent
B. Have eroded the customer base of the Indian insurance companies ------ 28 per cent
C. Have not affected the functioning of the Indian insurance companies ----- 10 per cent
D. Do not know/ Can’t say ------------------------------------- 19 per cent

10. Which are the policies of the company that are favorite among the customers?
Please give the reasons as you think.
A. 45 percent --------- Endowment policies

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 B. 32 percent---------Money back policies particularly Child growth, education and
career oriented policies.
C. 23 percent -------------- others

11. What measures the company is taking to make its policies attractive and competitive
in the market?
A. Professional management
B. Wide publicity
C. Attractive packaging
D. Market research

12. How do you see the prospect of private insurance companies in India?
A. 63 percent ----------------very good
B. 22 percent -------------------good
C. 10 percent ------------------- not so good
D. 5 percent ------------------ do not know / can’t say

13. What marketing strategies the company is adopting to promote its products and
services?
A. 77 percent ------------------------ target oriented aggressive marketing
B. 8 percent ------------------------ As per the market demand
C. 12 percent --------------------- Following the company policies and principles.
D. 3 percent ---------------------------- Do not know / Can’t say

14. What are the emerging trends in the insurance industry in terms of product
innovations?

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