LIFE INSURANCE

Dinesh Phadtare (92)

Shailesh Ranade (93)
Neha Raswalkar (94)
Jignita Rathod (96)
Ravi Suchak (111)
 Introduction
Life Insurance is a contract for payment of
a sum of money to the person assured (or
failing him/her, to the person entitle to
receive the same) on the happening of the
event insured by the contract.
 Insurance Companies In India
Bajaj Alliance
Birla Sun Life Insurance
LIC
Aviva Life Insurance, India
MetLife India Insurance
ICICI Prudential
 Why?
Superior to any other savings plan
Easy settlement & protection against
creditors
Ready Marketability & suitability for quick
borrowings
Accidental death benefits
Tax Relief
 Objective
To compare the various current policies
available in market and analyze each policy.

To help the laymen people understand

various policies.

To create importance.

To spread awareness about insurance.

 Types of Research

 Analytical Research

Descriptive Research
 Data collection
Primary Data

Interviewing agents

Collecting information through

questionnaire within the age group 18-55
years.
 contd.

Secondary Data

• Collecting data through

newspaper
internet
pamphlets of insurance companies
 HYPOTHESIS

Comparison of Insurance Policies

provided by LIC (public sector company)
and private company like ICICI Life
Insurance, Kotak Mahindra,Birla Sun Life
Insurance etc.
Independent Variables

Age of Customer
Occupation of Customer
Income of Customer
No. of family members
Area in which the customer lives (Urban,
Semi-Urban, rural) etc.
Dependent Variables
Structure of Insurance Policy

Insurance Agents
Research Design
 Step 1:To collect the primary data, through questionnaire.( 20 customers of LIC and 20
customers of ICICI)

 Types of question asked :

 - Open-ended question
 - Multiple-choice question

Step 2: Interview the Agents. 5 agents

Step 3: Prepare questionnaire for customer.(Approximately 50

Customers)
 Contd…
 Who is to be surveyed ?
- All people ranging from 18 yrs & above –
- People who have Policy of LIC or ICICI prudential Life
Insurance

 Step 2: Interview Agents of LIC and ICICI

(5 agents of each LIC and ICICI)
Questions asked are open ended.
Source of Data

 Primary Data :

To collect the primary data questionnaire is prepared with open

ended and close ended questions including personal details.

 Secondary Data :

Secondary data can be used as basis for comparison with

primary data.
 Data Collection Method : Questionnaire for customers

 The questions in questionnaire are

Open ended questions : It is helpful in knowing what is

uppermost in the mind of the respondents. It gives
complete freedom to the respondent.

Multiple choice questions : In this, the respondent is

offered two or more choice.
Data collection :Interviewing the agents

Closed ended questions : It is helpful in knowing the

exact factual information.
 Target Population : Mumbai City

 Sampling Frame : People having polices of LIC or ICICI

prudential life Insurance company.

 Sampling Method :
Probability - Stratified Sampling supplemented with
convenience sampling
 Sampling Unit : People aged 18 & Above

 Determining Sampling Size : 50 sample size as per

convenience and for accurate analysis and interpretation of
data.
 5 Agents of LIC
 5 Agents of ICICI
 20 Customers of LIC
 20 Customers of ICICI Prudential Life Insurance
QUESTIONNAIRE
1.Name of the Policy Holder:

2. Date of birth:

3. Gender: Male Female

4. Occupation:

5. Income p.a.:

6. You have policy of: L.I.C. ICICI

7. Name of the Policy:

8. Maturity period:
9. Premium: Rs.
Monthly Quarterly

Yearly Single Installment

10. Tax Benefits:

Benefit: Yes No
Amount:

11. Interest Rate:

12. Do you have termination facility for your policy?

Yes No
If yes,
Termination is allowed after how many years?

How much amount do you get back?

13. Do you have extension facility for your policy?

Yes No
14. Have you purchased policy through your bank or through direct agent?
Bank Agent

15. Do you have purchased any policy for your children?

Yes No
If yes, which policy have you purchased?

16. What are other benefits provided by your policy?

17. What is your purpose of purchasing an insurance policy?

18. How do you know about this policy?

Media Doctor Friends

Agents Others
19. Would you refer this policy to others?
Yes No
If yes, why?

20) Do you feel the process for applying the insurance policy is
tedious?
Yes No

What changes do you suggest for your insurance company?

Agents of LIC and ICICI were interviewed through telephone.

They were asked open ended questions regarding the policies
and services provided by the company.
 PREMIUM PAID

20

15
LIC
10
ICIC
5

0
Y
Y

E
L
L

L
E
H

G
T
T

A
R

IN
N

E
A
O

S
Y
U
M

Q
 RANGE OF PREMIUM PAID
RANGE NO OF RESPODENTS NO OF RESPODENTS
OF LIC OF ICICI

1000-2000 3 2
2000-3000 4 -
3000-4000 3 -
4000-5000 3 -
5000-6000 4 3
6000-7000 2 2
7000-8000 - 1
8000-9000 - 6
9000-10,000 1 6
10,000 ABOVE
TYPES OF LIC POLICY

P1-ENDOWMENT
ASSURANCE
4.5
P2-JEEVAM SARAL
4
3.5 P3-MONEY BACK
3
P4-MARKET PLUS
NUMBER OF PEOPLE

2.5
2
P5-JEEVAN MITRA
1.5
1 P6-ENDOWMENT
0.5
0 P7-AKSHAY BIMA
P1 P2 P3 P4 P5 P6 P7
YOJNA
T YP ES O F P O L IC Y
TYPES OF ICICI POLICY

P1-LIFE TIME PENSION

10
9 P2- CASH BACK
8 P3- LIFE TIME PREMIUM
7
NUMBER OF PEOPLE

6 P4-SAVE N PROTECT
5
P5- INVEST SHEILD
4
3 P6- RIDER
2
1
0
P1 P2 P3 P4 P5 P6
T YP ES O F P O L IC Y
 FOR LIC

AGE NO. OF PERSONS

20 – 30 1

30 – 40 2

40 – 50 8

50 – 60 3

Greater than 60 1
 FOR I.C.I.C.I

AGE NO. OF PERSONS

20 – 30 6

30 – 40 7

40 – 50 1

50 – 60 6

Greater than 60 1
DO YOU SUGGEST LIC POLICY??

NO
30%

YES
NO

YES
70%
DO YOU SUGGEST ICICI POLICY?

NO
15%

YES
NO

YES
85%
DO YOUR LIC POLICY HAVE
TERMINATION FACILITY ?

NO
46% YES
YE S
NO
54%
DO YOUR ICICI HAVE TERMINATION
FACILITY

NO
40%
YES
NO
YES
60%
DO YOUR LIC POLICY HAVE
EXTENSION FACILITY

NO
45% YES
YES NO
55%
DO YOUR ICICI POLICY HAVE
EXTENSION FACILITY

NO
40%
YES
NO
YES
60%
 Hypothesis Testing
Parameters LIC (X1) ICICI (X2)
Less premium 9 7
More return 8 9
Interest rate 7 9
Attractive schemes 7 6
Better service 6 9
Timely service 6 8
Termination 6 8
Extension 6 8
Total Mean=55/8=6.875 Mean=64/8=8
 Z -test
TWO SAMPLE:
Sample size large (n>30)
Sample drawn from same population

Is used when 2 samples are

drawn from sample
population
Incase is not known,

can be used in its place.

D1=6.875-7.44 = -0.565
D2=8-7.44 = 0.56
n1=20
n2=20
 Contd….

Null Hypothesis :- H0 -> µ1 = µ2

benefits provided by LIC & ICICI company are same

Alternative Hypothesis:- Ha -> µ1 =/= µ2 or

By substituting in above formulas , we get

Calculated z =-2.89
By comparing this value to tabular value at 5% l.o.s
i.e.- 2.262 < z < 2.262
Contd…

Calculated z > Tabular z

Hence hypothesis is rejected i.e.
reject H0 Accept H1

 So we can conclude that benefits

provided by one company are better
than of other.
 Major findings of the study
 Public prefer private insurance mainly for the reasons such
as
- timely service,
- better service,
- friendly approach,
- better communication,
- immediate attention,
- influence of friends and relatives as agents and
- trust worthiness.
- attractive schemes
Contd..
 Aged people have more concern for economic factors
compared to youngsters while studying the reasoning for
private policy preferences.

 All other factors like service, human relations, product

and comfort do not vary significantly based on age
though the reasoning levels are high.

 The most important means of creating awareness are

agents, friends, relatives and advertisement.
Contd..

 Customers are found to be highly satisfied with service

facilities, human relations and attractive schemes.

 Age and income did not exert any significant level of

difference of in the satisfaction level of the customers.
 Suggestions
 Private insurance companies have gained their
momentum by focusing on better service and relationship
marketing.

 When they plan schemes or different segments the elderly

people scheme must focus more on economic factors.

 Private insurance companies have attractive schemes to

gain the attention of the public, if they could extend more
varieties to attract.

 Customers opt to buy private insurance policies in the

future though all are not prepared to recommend them to
others
 Conclusion

The insurance industry is facing a healthy competition,

which really benefits the public. Government sector
should further improve their product varieties and
attractive schemes to compete with the private
sector and also change their attitude further towards
service to survive in the market.
THANK YOU