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1 CHAPTER 1

INTRODUCTION

1.1 INSURANCE INDUSTRY

The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. However, if the assets get lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer. Insurance is a mechanism that helps to reduce such adverse consequences.

1.1.1. Definition of Insurance

A contract of insurance can be defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against the risk. Risk is the uncertainty of financial loss. Every risk involves the loss of one kind or other. Though the risk cannot be averted yet the loss occurring due to a certain risk can be distributed among the agreed persons.

Life insurance is a written contract between the insured and the insurer, which provides for the payment of the insured sum on the date of the maturity of the contract or on the unfortunate death of the insured, whichever occurs earlier.

2 1.1.2 Insurance History

At most 4500 years ago in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be latter repaid with interest when goods arrived safely. In 2100 b c, the code of Hammurabi granted legal status to the practice, that perhaps was how insurance made its beginning.

LIFE INSURANCE on the other hand has its origin in ancient Rome, where citizen formed burial clubs that would meet the funeral expenses of its members as well as help survivors as we know if today owes its existence to 17th century England.

1.1.3

Importance of Insurance

Assets are insured, because they are likely to be destroyed or made non functional through an accident occurrence. Such possible occurrences are called Perils. Fire, floods, breakdowns, lighting, earthquakes, etc., are perils. The damage that these perils cause to the asset is the risk that the asset is exposed to.

The risk only means that there is a possibility of loss or damage. It may or may not happen. There has to be an uncertainty about the risk. Insurance is done against the contingency that it may happen. Insurance is relevant only if there are uncertainties. If there is no uncertainty about occurrence of an event, it cannot be insured against.

3 1.1.4 Principle of Insurance

People facing common risks come together and make their small contributions to a common fund. The contribution to be made by each person is determined on assumption and past experience. The business of insurance done by insurance companies called Insurers is to bring together persons with common insurance interests (sharing the same risk) collecting the share or contribution (called premium) from all of them and paying out compensations (called claims) to those who suffer. Premium is determined base of various factors like age, amount of cover, period of cover with some additions made for the expenses of administration.

The insurer is in the position of a trustee as it is managing the common fund for and on behalf of the community. It has to ensure that nobody is allowed to take undue advantage of the arrangement. That is to say that the management of the business requires care to prevent entry onto the group of people whose risks are not of the same kinds as well as paying claims on losses that are not accidental. The decision to allow entry is the process of underwriting of risk. Both underwriting and claim settlement have to done with great care.

1.1.5

Market and Features of Insurance

Insurance market is a mechanism through which life and general insurance policies are bought and sold through which large parts of losses to individuals and business community are met. Insurance is thus bought and sold in a market just as a trade is carried on in material goods.

4 Insurance may be dividing into several separate and distinct branches. It can be classified according to subject- matter or event insured or by the main classes of business to their subject matter; it can be dividing into four categories.

1. Insurance of the property of the policyholders like marine insurance to ships, Fire insurance on Buildings or goods etc. 2. Insurance of the persons, which include all types of Life Insurance as well as insurance granting benefits for accidental death or disablement. 3. Insurance for the liability of the policyholder where he may be liable at law for the death. 4. Insurance of the rights financial interest of the policyholders like fidelity insurance, credit insurance etc.

1.1.6

Life Insurance in India

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. A brief history of the Insurance sector: The business of life insurance in India in its existing form started in India in the year1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the countrys GDP. Gross premium collection is

5 nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP.

Nearly 80 per cent of Indian population is without life insurance cover, health insurance and non-life insurance continue to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. There are two legislations that govern the sector - The Insurance Act- 1938 and the IRDA Act- 1999.

India is primarily a savings oriented country. Premium payments have been long regarded as a tax savings option and hence the need to take a Life insurance policy.

The insurance industry witnessed a lot of activity during the year 2004. Although not many changes took place in terms of the basic structure of the industry, the industry grew by leaps and bounds. Sales of Unit Linked Insurance Plans (ULIP s) took a giant leap. To put things in perspective, ULIP sales accounted for a sizable amount of new business generated .The last few years have been a watershed for assured return plans.

6 As the insurance sector has developed, there's been a growing acceptance by most policyholders that the assured return era is a thing of the past. This in fact has also been one of the reasons why many investors have shifted to market linked plans. Another positive change has been the increasing level of people buying term plans. This is good from a policyholder's perspective as a term plan offers a higher sum assured at a minimal cost. This was not the case till a couple of years ago.

In the private sector 13 life insurance and 6 general insurance companies have been registered. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001.

The consumer mega trend in the early years for the Indian consumer will be marked by major social and economic shifts that will change the way consumers behave. Both new and existing players must explore new distribution and marketing channels.

The increasing importance of knowledge in the Indian insurance industry is likely to make employability a critical factor for retention of qualified managerial manpower in the future. To create such a milieu, insurance companies need to have a critical mass of management that encourages a knowledge-based culture.

1.1.7

Insurance Regulatory and Development Authority

The mission of IRDA is To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

7 1.1.8 Life Insurers

S. No

Registration Number 101 104 105 107 109 110 111 114 116 117 121 122

Date of Reg.

Name Of The Company

1 2 3 4 5 6 7 8 9 10 11 12

23.0.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 03.01.2002 14.05.2002

HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICIC Prudential Life Insurance Company Ltd. OM Kotak Mahindra Life Insurance Co. Ltd Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited ING VYSA Life Insurance company Private Limited. Bajaj Allianz Life Insurance Company Ltd MetLife India Insurance Company Pvt Ltd AMP SANMAR Assurance Company Ltd Aviva Life Insurance Co India Pvt Ltd

Source: WWW.IRDA.ORG

8 1.2 COMPANY PROFILE

1.2.1

Vision

To make ICICI Prudential the dominant Life and Pensions player built on trust by world class people and service. This they hope to achieve by: Understanding the needs of customers and offering the superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders. Providing an enabling environment to foster growth and learning for our employees. And above all, building transparency in all their dealings. The success of the company will be founded in its unflinching commitment to 5 core values -- integrity, Customer First, Boundary less, Ownership and Passion,. Each of the values describes what the company stands for, the qualities of people and the way they work.

1.2.2

Partners

ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company, which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term

9 commitment. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading edge life insurance solutions. ICICI bank has 74% stake in the company, and prudential plc has 26%.

1.2.3

Best Life Insurer Award

Outlook Money: March 15, 2004 Winner: ICICI Prudential In the short span since the insurance sector was opened up, ICICI prudential Life Insurance has literally dictated the markets evolution. Catering to all age and income segments, the company started out with functioning. the traditional insurance policies that were easy to understand. The idea was to entice customers used to LICs style of

Soon, ICICI Prudential began exploring new areas. It introduced modern products, like the market - linked product where returns are linked to the market performance of the underlying assets.

ICICI Prudential leads in virtually all parameters: size of agent force, number of policies sold, total sum assured, premium income and productivity of agents. It has set exacting standards for its range of products, riders offered, quality of information in promotional material and even in the insurance awareness events organized.

What has been in favour of ICICI Prudential is its range of products in each segment of life insurance traditional , unit-linked and single premium options, be

10 they for retirement plants or child plans, with such a comprehensive bouquet it caters goals of a customers.

ICICI Prudential also has a strong sales network and tie-ups with banks to offer banc assurance products. Its supplementary marketing channels contribute close to 30 per cent of its premium income. The company is now reaching out to new and untapped markets. ICICI Prudential works closely with NGOs and micro-finance institutions to spread awareness about the concept of insurance in rural areas.

The gap between ICICI Prudential and the second-in-line private insurer is vast. In fact, this hiatus has led some analysts to wonder if the company isnt a trifle too aggressive. But others say this has more to do with the companys customer-centric focus, its pan-India presence and superior risk management and investment strategies. ICICI Prudential is not, however, resting on its laurels. The company will continue to innovate and set the standards.

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1.3

ADVISORSHIP

1.3.1

Insurance Agent

An insurance agent is an agent licensed section 42 of the Insurance Act 1938. He receives payment by way of commission or other remuneration for procuring insurance business. He is also responsible for business relating to the continuance, renewal or revival of policies of insurance.

The agent cannot be an employee of an insurance company and the insurance ACT IRDA and the Indian Contract Act govern his role as an agent.

1.3.2

Types of Agents

Absorbed Agent an insurance agent licensed on or before the date of notification of the insurance Agents Regulations, 2000, under the provisions of section 42 of the Insurance Act 1938.

Composite Insurance Agent means an insurance agent who holds both life insurance agency license and general insurance agency license. Corporate Agent could be a company or a firm.

12 1.3.3 Function of the Agent

The primary function of the agent is to procure business for the insurance company , prior to offering the policy, the agent has to check out on the insurability of the proposer based on the principles of insurable of the interest The relevant information can be: a) Paying capacity b) Health and habits c) Age Once the insurance contract has been put in to force, the agent is supposed to ensure continuance of policy through regular payment of renewal premiums. In case of a claim the agent should help the insured or his family in proper settlement of claims. and almost god faith.

1.3.4

Agents Qualification

In order to discharge the above duties to the satisfaction to the consumer, it is required that a person making an application for a license to act as an insurance agent or as a composite insurance agent, a) Is at least 18 years of age as on the date of application. b) Has not been found to be a person of unsound mind by a Court of competent. jurisdiction: c) Has not been found guilty of any kind of criminal conduct. In case of an offence d) At least five years should have elapsed since the completion of sentence Imposed.

13 e) Possesses the minimum educational qualification of a pass in 12th standard or Equivalent examination conducted by any recognized Board/Institute of Education. f) Possesses a Certificate in Insurance salesmanship issued by an Examination Body or any other institution by the Authority (IRDA) in this behalf. g) For the purposed of this clause the Authority has presently recognized the Insurance Institute of India. Mumbai as the examination body.

1.3.5

Appointment of Agents

All insurer or the designated person acting on behalf of the insurer may appoint a person as an insurance agent. Provided that such agent holds a valid license at the time of appointment.

1.3.6

Restriction on appointment

All insurance agent who holds a valid certificate of license and who has been appointed by an insurance company, shall for all intents and purposes, be an Insurance agent for that insurance company only. A life insurer or his designated person cannot appoint at personas an insurance agent who has been working as an insurance agent for another life insurer. A general insurer or his designated person cannot appoint a personas an insurance agent who has been working as an insurance agent for another general insurer.

14 1.3.7 Training of Insurance Agent

Every person appointed as an insurance agent the appointed day by an insurer shall undergo training organized by an independent Institute or by an insurers institution, to be accredited by the Authority, for a minimum period of for weeks once in every three years. Where a person is a composite insurance agent, such training will be for a period of six weeks.

1.3.8

Termination of Agency

The licence of any insurance agent including an absorbed agent may be terminated by the Authority, if such agent suffers, at any time during the currency of the licence, from any of the said disqualification mentioned is subsection 42 of the Act, s the case may be.

1.3.9

Issue of duplicate license

An insurance agent shall make an application to the issuing authority through the designed person for issue of a duplicate license with a fee of rupees fifty.

1.3.10

Return to be submitted to the Authority

Every insurer shall annually or at such shorter periods as may be prescribed by the Authority, submit a statement to the Authority showing the particulars mentioned in section 43 of the Act.

15 1.3.11 Power to issue instructions or directions.

The Authority may, from time to time such instructions or directions to the insurance agents designated persons and the insurers, for the proper conduct of insurance business and furtherance of the provisions of the Act, and the Insurance Regulatory and Development Authority Act 1999.

1.3.12

Remuneration to Agents

The only way in which the company remunerates the agent is through commissions received on sales made. Commission to agents is specified as a percentage of the premium paid. Agents are entitled to term insurance and gratuity benefits. An agent will be eligible for gratuity if he has worked continuously for fifteen years or more without agency termination. IRDA has given the upper limit of remuneration to agents as 40% of premium.

Some companies offer reimbursement of telephone charges and other office administration expenses to agents. With the de-regulation of the Insurance Industry there would be a lot of promotional effort by the various companies In light of the above the following code of conduct needs to be adhered to while advertising> All advertisement should be: Decent a level of decency in visuals and words needs to be adhered to Preparent with a sense of responsibility towards the consumer and the society. Conforming to the principles of fair competition derogatory targeting of competition is not considered fair.

16 Honest and truthful claims made by advertisement, should be delivered to the customer. Protected from coping by the Copyright Act. Ethical advertising should not target sections of the society which may be unable to take a logical decision.

Moreover the IRDA (Insurance advertisement and disclosure) Regulations 2000 further states the regulations laid down for advertising which need to be adhered by the Insurance companies and by the agents.

1.3.13

Who can be an Agent?

An Individual A firm A company formed under the Companies Act, 1956(I if 1956), and includes a banking company as defined as clauses (4A) of section 2 of the Act.

1.3.14

Practical Training

Practical training includes orientation, particularly in the area of insurance sales, service and marketing, through training modules as approved by the authority. First time applicant (Life/Non-Life) - 100 hours Composite - 150 hours

17 If applicant has following qualifications: an Associate/Fellow of the Insurance Institute of India, Mumbai, an Associate/Fellow of the Institute of Chartered Accounts of India, New Delhi; an Associate/Fellow of the Institute of costs and Works Accountant of India, Calcutta; an Associate/Fellow of the Institute of company Secretaries of India, New Delhi; a Master of Business Administration of any Institute/University recognized by any State Government or the Central Government; or possessing any professional qualification in marketing from any Institute / University recognized by any State Government or the central Government Life/Non-life 50 hours Composite - 70 hours

Renewal of License Life-Non Life Composite - 25 hours - 50 hours

1.3.15

Examination To be conducted by Insurance Institute of India. Mumbai or any other examination body recognized by the Authority Maximum 50% marks Duration of Examination 7 hrs. Format of Examination Objective type with 10% of question as numerical.

18 CHAPTER 2

OBJECTIVES, NEEDS AND LIMITATIONS

2.1

Objectives

2.1.1

Primary objective

To Analyse the Customers Attitude, Preferences and Satisfaction Level towards Investment in ICICI Prudential Life Insurance Company Ltd, Adyar, Chennai.

2.1.2

Secondary objectives

To understand the general profile and saving pattern of the investor. To determine the reason for the investment made. To determine the sector of insurance company preferred by investors To analyze the factors influencing the investor in investing in insurance. To analyze the relationship between the various investment avenues. To determine the satisfaction level of policy holders of ICICI Prudential Life Insurance Company. To determine the position of ICICI Prudential Life Insurance Company among various Life Insurance Companies.

19 2.2 Need For The Study

The last few years have been a watershed for assured return plans. As the insurance sector has developed, there's been a growing acceptance by most policyholders that the assured return era is a thing of the past. The private insurance companies are focusing on the Market Linked Plans.

This study undertaken for ICICI Prudential Life Insurance Company Ltd aims to analyse the customers attitude, preferences and satisfaction level towards investment in the insurance industry and with special reference to ICICI Prudential Life Insurance Company Ltd, Adyar, Chennai.

This has been done by preparing the questionnaire which contains questions put forth to the respondents which would help in analyzing the profile and investing habits of the investor, factor influencing the investor in investing in insurance and their attitude and perception investment in insurance companies.

This study would help in determining the future preference of the investors. All this would help in giving suggestions to ICICI Prudential Life Insurance Company Ltd, in strengthening their marketing efforts, in tapping private insurance companies schemes and expand their business.

20 2.3 Limitations of The Study

The area of study is limited to Adyar, Chennai City only; hence the results may not be true for other geographical areas. Validity & Reliability of the data are obtained depends on the responses from the customer. Structured questionnaire are base for collecting the data, it may have disadvantages of not being to probe deep into the respondents thoughts. The time at the disposal of the researcher is limited. The size of the sample comparing to the population is very less and hence it will not represent the whole population.

21 CHAPTER 3

RESEARCH METHODOLOGY

Research is an intensive study in a particular field to achieve at a better conclusion of a problem. Research Methodology is a systematic way of solving the problem. The methodologies followed for this study are as follows.

3.1

Research Design

The research design is the basic framework or a plan for a study that guides the collection of data and analysis of data. In this market survey the design used is used Descriptive Research Design. It includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of state of affairs, as it exists at present.

The information are collected from the individuals and analyzed with the help of different statistical tools, for describing the relationship between various variables, pertaining to investment in life insurance. Moreover cross table analysis has been done for processing the data and information is derived to attain the objectives of the study.

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3.2

Sampling Design

3.2.1

Population

Since the population of Adyar is large in number, researcher was unable to collect information from all individuals due to limitation of time. So part of the population is taken for analyzing and generating the findings, which is applicable for total market. The Adyar area is mainly divided according to ward wise. Adyar area has totally 12 wards. From each ward 15 samples were picked on random basics and data were collected from each sample. But only 10 sample data has been used.

3.2.2

Sampling Technique

Simple Random Sampling Method is used to collect data. The Adyar area is mainly divided according to ward wise. Adyar area has totally 12 wards. From each ward 15 samples were picked on random basics and data were collected from each sample. But only 10 sample data has been used.

3.2.3

Sample Size

The size of the sample is 120, and factors to be considered are time, cost and effectiveness etc. The study was conducted during the period January 2006.

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3.2.4

Sample Unit

The respondents of the study are part of population of Adyar, Chennai city. Each family is considered to be the sampling unit

3.2.5

Data Collection

The collection of data is considered to be one of the most important aspects in the research methodology. Both primary and secondary data is used in this study in order to meet the requirements of the purpose.

3.2.5.1

Primary Data

Under this study primary data was collected by using Structured Questionnaire. The structured questionnaire consists of both open-ended and closedended questions. The primary data has been collected through the questionnaire by means of personal interview. The questionnaire consists of number of questions printed in a definite order on a form. The primary data was collected from individuals residing in Adyar, Chennai City, with the help of questionnaire, which was prepared after getting inputs from experts and executives in ICICI Prudential.

3.2.5.2

Secondary Data

24 The secondary data are sourced from various Life Insurance Companies websites, Magazines, Books, Pamphlets, Periodical Surveys and Websites etc. 3.2.6 Tools Used

The collected data were analyzed with the help of Simple Percentage analysis, Weighted Average Method, Sign Test and Chi- Square Test.

25 CHAPTER 4 - ANALYSIS AND INTERPRETATION TABLE 4.1 TABLE SHOWING THE GENERAL PROFILE OF RESPONDENT
GENDER MARTIAL STATUS AGE 26-35 MARRIED 36-45 ABOVE 45 FEMALE MARRIED TOTAL 18-25 UNMARRIED 26-35 UNMARRIED TOTAL FEMALE TOTAL 26-35 < 1 LAKH 1-5 LAKH 36-45 MARRIED ABOVE 45 1-5 LAKH 5-10 LAKH 1-5 LAKH 5-10 LAKH > 10 LAKH MALE MARRIED TOTAL 18-25 < 1 LAKH 5-10 LAKH NONE UNMARRIED 26-35 < 1 LAKH 1-5 LAKH 5-10 LAKH NONE 36-45 UNMARRIED TOTAL MALE Total GRAND TOTAL > 10 LAKH 26 42 45 7 20 27 3 6 18 18 17 17 30 5 19 4 2 1 2 16 2 3 15 13 2 6 < 1 LAKH NONE < 1 LAKH 3 3 2 4 8 7 2 2 7 1 12 3 3 7 3 13 3 3 INCOME NONE NONE NONE 4 4 EMPLOYEE PROFESSIONAL BUSINESS OTHERS 5 3 2 10 GRAND TOTAL 5 7 2 14 3 3 3 9 23 2 4 15 2 2 15 1 41 2 3 15 5 21 5 2 3 56 97 120

CHART 4.1 - CHART SHOWING THE GENERAL PROFILE OF RESPONDENTS

26

EMPLOYEE 50 45 40 NO. OF RESPONDENTS 35 30 25 20 15 10 5 0

PROFESSIONAL

BUSINESS

OTHERS

GENERAL PROFILE

INFERENCE From the above table and chart it can be viewed that, Most of the Respondents are Male, Most of the male respondents are in the age group of 26-35 and unmarried and Female respondents in the age group of 36-45 and married, Most of the respondents are working as employees. TABLE 4.2 TABLE SHOWING THE PERCENTAGE OF SAVINGS OF RESPONDENTS

27

S.No 1 2 3 4 5

PERCENTAGE OF SAVINGS LESS THAN 5% 5-10 % 10-15 % MORE THAN 15% NOT APPLICABLE TOTAL

NO OF RESPONDENTS 24 56 6 0 34 120

PERCENTAGE 20% 47% 5% 0% 28% 100%

INFERENCE

From the above table it can be viewed that, 47 % of the Respondents do 5-10 % Savings from their Income, 20 % of the Respondents do < 5 % Savings from their Income, 5 % of the Respondents do 10-15 % Savings from their Income, None of the Respondents do > 15% Savings from their Income and 28 % of the Respondents are coming under the not applicable category.

CHART 4.2 CHART SHOWING THE PERCENTAGE OF SAVINGS OF RESPONDENTS

28

47%

NO OF RESPONDENTS IN PERCENTAGE

28%

20%

5% 0% LESS THAN 5% 5-10 % 10-15 % MORE THAN 15% NOT APPLICABLE

PERCENTAGE OF SAVINGS

TABLE 4.3 TABLE SHOWING THE REASON FOR INVESTMENT

29

RESPONDENTS PREFERENCE S.No REASON YES 1 2 3 4 5 LIFE COVER RETURNS CAPITAL APPRECIATION TAX SAVINGS OTHERS 35 97 25 34 44 NO 85 23 95 86 76 120 120 120 120 120

PERCENTAGE OF TOTAL TOTAL RESPONDENTS PREFERENCE PERCENTAGE YES 29% 81% 21% 28% 37% NO 71% 19% 79% 72% 63% 100% 100% 100% 100% 100%

INFERENCE

From the above table it can be viewed that, 81 % of the Respondents says yes for Returns as reason of Investment, 29 % of the Respondents says yes for Life Cover as reason of Investment, 28 % of the Respondents says yes for Tax Savings as reason of Investment, 21 % of the Respondents says yes for Capital Appreciation as reason of Investment, 37 % of the Respondents says yes for Others as reason of Investment. CHART 4.3 CHART SHOWING THE REASON FOR INVESTMENT

30

YES
90% 80% 70%

NO

RESPONDENTS IN PERCENTAGE

60% 50% 40% 30% 20% 10% 0%


LIFE COVER RETURNS CAPITAL APPRECIATION TAX SAVINGS OTHERS

REASON FOR INVESTMENT

TABLE 4.4 - TABLE SHOWING THE INSURANCE SECTOR PREFERRED BY THE RESPONDENTS

31

INFERENCE

S.No 1 2

SECTOR PUBLIC PRIVATE TOTAL

NO OF RESPONDENTS 95 25 120

PERCENTAGE 79% 21% 100%

From the above table it can be viewed that, 79 % of the Respondents prefer only Public Sector Insurance Companies, 21 % of the Respondents prefer only Private Sector Insurance Companies.

CHART 4.4 - CHART SHOWING THE INSURANCE SECTOR PREFERRED BY THE RESPONDENTS

32

PRIVATE 21%

PUBLIC 79%

TABLE 4.5 - TABLE SHOWING THE NO. OF RESPONDENTS HAVING LIFE INSURANCE POLICY

33 LIFE INSURANCE POLICY YES NO TOTAL NO OF RESPONDENTS 98 22 120

S.No 1 2

PERCENTAGE 82% 18% 100%

INFERENCE

From the above table it can be viewed that, 82 % of the Respondents are having Life Insurance Policy, 18 % of the Respondents are having Life Insurance Policy.

CHART 4.5 - CHART SHOWING THE NO. OF RESPONDENTS HAVING LIFE INSURANCE POLICY

34

NO 18%

YES 82%

TABLE 4.6 TABLE SHOWING THE POLICY HOLDINGS OF THE RESPONDENTS

35

PERCENTAGE RESPONDENTS S.No COMPANY PREFERENCE TOTAL OF RESPONDENTS PREFERENCE YES 1 2 3 4 LIC ICICI Pru HDFC OTHERS 94 45 17 4 NO 4 53 81 94 98 98 98 98 YES 96% 46% 17% 4% NO 4% 54% 83% 96% 100% 100% 100% 100% TOTAL PERCENTAGE

INFERENCE

From the above table it can be viewed that, among the 98 Respondents, Most of the Respondents are having policy of LIC, ICICI Pru gets the second place, HDFC comes the third and other company policy holders are very less.

36 CHART 4.6 CHART SHOWING THE POLICY HOLDINGS OF THE RESPONDENTS

YES 120%

NO

100%

96%

96%

PERCENTAGE OF RESPONDENTS

83% 80%

60%

54% 46%

40%

20%

17%

4% 0% LIC ICICI Pru HDFC

4%

OTHERS

COMPANY

37 TABLE 4.7 TABLE SHOWING THE FACTORS THAT INFLUENCE FOR CHOOSING THE ABOVE SAID COMPANY

PERCENTAGE RESPONDENTS S.No FACTORS PREFERENCE TOTAL OF RESPONDENTS PREFERENCE YES 98 98 98 98 50% 91% 46% 74% NO 50% 9% 54% 26% 100% 100% 100% 100% TOTAL PERCENTAGE

YES 1 2 3 4 SUM ASSURED PREMIUM TAX BENEFITS RETURNS 49 89 45 73

NO 49 9 53 25

INFERENCE

From the above table it can be viewed that, among the 98 Respondents, 91 % of the Respondents says yes for premium as the major factor, 74 % of the Respondents says yes for returns as a factor, 50 % of the Respondents says yes for sum assured as a factor, 46 % of the Respondents says yes for tax benefits as a factor.

38 CHART 4.7 CHART SHOWING THE FACTORS THAT INFLUENCE FOR CHOOSING THE ABOVE SAID COMPANY

YES 100% 90% 80%

NO

PERCENTAGE OF RESPONDENTS

70% 60% 50% 40% 30% 20% 10% 0% SUM ASSURED PREMIUM TAX BENEFITS RETURNS

FACTORS

39 TABLE 4.8 TABLE SHOWING THE POTENTIAL POLICY HOLDERS PREFERENCES

PERCENTAGE RESPONDENTS S.No FACTORS PREFERENCE TOTAL OF RESPONDENTS PREFERENCE YES 1 2 3 4 LIC ICICI Pru HDFC OTHERS 18 0 0 0 NO 0 18 18 18 18 18 18 18 YES 100% 0% 0% 0% NO 0% 100% 100% 100% 100% 100% 100% 100% TOTAL PERCENTAGE

INFERENCE

From the above table it can be viewed that, among the 18 Respondents, 100 % of the Respondents are willing to take policy in LIC, Other companies policy are not that much liked by the respondents.

40 CHART 4.8 CHART SHOWING THE POTENTIAL POLICY HOLDERS PREFERENCES

YES 120%

NO

100%

100%

100%

100%

100%

PERCENTAGE OF RESPONDENTS

80%

60%

40%

20%

0%

0% LIC

0% ICICI Pru

0% HDFC

0% OTHERS

COMPANY

41 TABLE 4.9 TABLE SHOWING THE FACTOR INFLUENCING THE POTENTIAL POLICY HOLDERS PREFERENCES

PERCENTAGE RESPONDENTS S.No FACTORS PREFERENCE TOTAL YES 1 2 3 4 SUM ASSURED PREMIUM TAX BENEFITS RETURNS 2 18 0 6 NO 16 0 18 12 18 18 18 18 OF RESPONDENTS PREFERENCE YES 11% 100% 0% 33% NO 89% 0% 100% 67% 100% 100% 100% 100% TOTAL PERCENTAGE

INFERENCE

From the above table it can be viewed that, among the 18 Respondents, 100 % of the Respondents says yes for premium as the major factor, 33 % of the Respondents says yes for returns as a factor, 11 % of the Respondents says yes for sum assured as a factor, None of the Respondents says yes for tax benefits as a factor.

42 CHART 4.9 CHART SHOWING THE FACTOR INFLUENCING THE POTENTIAL POLICY HOLDERS PREFERENCES

YES 120%

NO

100%

PERCENTAGE OF RESPONDENTS

80%

60%

40%

20%

0% SUM ASSURED PREMIUM TAX BENEFITS RETURNS

FACTORS

43 TABLE 4.10 TABLE SHOWING THE PLANS PREFERRED BY THE POLICY HOLDERS

PERCENTAGE RESPONDENTS S.No NAME OF THE PLAN YES 1 2 3 4 RETIREMENT PLAN CHILD PLAN INVESTMENT PLAN SAVINGS PLAN 46 10 68 77 NO 52 88 30 21 98 98 98 98 PREFERENCE OF TOTAL TOTAL RESPONDENTS PERCENTAGE PREFERENCE YES 47% 10% 69% 79% NO 53% 90% 31% 21% 100% 100% 100% 100%

INFERENCE

From the above table it can be viewed that, among the 98 Respondents, 79 % of the Respondents have chosen savings plan, 69 % of the Respondents have chosen investment plan, 47 % of the Respondents have chosen retirement plan, 10 % of the Respondents have chosen child plan.

44 CHART 4.10 CHART SHOWING THE PLANS PREFERRED BY THE POLICY HOLDERS

YES 100%

NO

90%

80%

PERCENTAGE OF RESPONDENTS

70%

60%

50%

40%

30%

20%

10%

0% RETIREMENT PLAN CHILD PLAN INVESTMENT PLAN SAVINGS PLAN

VARIOUS PLAN

45 TABLE 4.11 TABLE SHOWING THE FUTURE PLAN OF RESPONDENTS OF TAKING POLICY IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY

S.No 1 2

OPINION YES NO TOTAL

NO OF RESPONDENT 45 75 120

PERCENTAGE 37.5% 62.5% 100%

INFERENCE

From the above table it can be viewed that, Only 37.5 % of the Respondents are willing to take policy in ICICI Prudential, 62.5 % of the Respondents are not willing to take policy in ICICI Prudential.

46 CHART 4.11 CHART SHOWING THE FUTURE PLAN OF RESPONDENTS OF TAKING POLICY IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY

YES 38%

NO 62%

47 TABLE 4.12 TABLE SHOWING THE ICICI PRUDENTIAL LIFE INSURANCE COMPANY PLANS PREFERRED BY THE RESPONDENTS

PERCENTAGE RESPONDENTS S.No NAME OF THE PLAN YES 1 2 3 4 5 RETIREMENT PLAN CHILD PLAN INVESTMENT PLAN SAVINGS PLAN OTHERS 8 1 28 8 1 NO 37 44 17 37 44 45 45 45 45 45 PREFERENCE OF TOTAL TOTAL RESPONDENTS PREFERENCE PERCENTAGE YES 18% 2% 62% 18% 2% NO 82% 98% 38% 82% 98% 100% 100% 100% 100% 100%

INFERENCE

From the above table it can be viewed that, among the 45 Respondents, 62 % of the Respondents are willing to choose investment plan, 18 % of the Respondents are willing to choose savings plan and retirement plan, Only 2 % of the Respondents are willing to choose child plan and other plans. CHART 4.12 CHART SHOWING THE ICICI PRUDENTIAL LIFE INSURANCE COMPANY PLANS PREFERRED BY THE RESPONDENTS

48

YES 120%

NO

100%

PERCENTAGE OF RESPONDENTS

80%

60%

40%

20%

0% RETIREMENT PLAN CHILD PLAN INVESTMENT PLAN SAVINGS PLAN OTHERS

VARIOUS PLANS

49

TABLE 4.13 TABLE SHOWING THE RANKING OF VARIOUS LIFE INSURANCE COMPANIES
RANKS WEIGHT (Y) LIC(X1) X1*Y HDFC(X2) X2*Y MAX(X3) X3*Y ICICI(X4) X4*Y KOTAK (X5) X5*Y BIRLA (X6) X6*Y TATA(X7) X7*Y SBI(X8) X8*Y ING(X9) X9*Y BAJAJ (X10) X10*Y AVIVA (X11) X11*Y METLIFE (X12) X12*Y AMP(X13) X13*Y SAHARA (X14) X14*Y 1 14 90 126 0 0 0 0 0 18 252 5 70 0 0 0 0 2 28 0 0 0 0 0 0 0 0 0 0 0 0 2 13 25 32 5 22 28 6 0 0 65 84 5 0 0 0 0 0 0 0 0 0 0 5 65 0 0 0 0 0 0 0 0 3 12 0 0 35 420 6 72 11 132 0 0 0 0 2 24 0 0 0 0 48 576 3 36 0 0 2 24 0 0 4 11 0 0 28 308 7 77 0 0 0 0 0 0 0 0 13 143 0 0 27 297 7 77 0 0 10 110 0 0 5 10 0 0 5 50 0 0 2 20 0 0 0 0 0 0 12 120 12 120 10 100 16 160 17 170 10 100 0 0 6 9 0 0 2 18 9 81 3 27 0 0 0 0 1 9 4 36 7 63 8 72 12 10 8 6 54 11 99 0 0 7 8 0 0 2 16 18 14 4 0 0 0 0 0 0 0 0 4 32 2 16 0 0 6 48 11 88 5 40 0 0 8 7 0 0 0 0 6 42 0 0 0 0 0 0 0 0 18 12 6 7 49 0 0 3 21 13 91 1 7 0 0 9 6 0 0 0 0 1 6 0 0 0 0 4 24 0 0 4 24 14 84 0 0 7 42 1 6 9 54 0 0 10 5 0 0 0 0 0 0 0 0 10 50 0 0 0 0 0 0 1 5 0 0 0 0 0 0 11 55 4 20 11 4 0 0 0 0 0 0 0 0 4 16 15 60 4 16 0 0 2 8 0 0 0 0 0 0 0 0 0 0 12 3 0 0 0 0 0 0 0 0 2 6 0 0 12 36 0 0 0 0 0 0 0 0 0 0 3 9 0 0 13 2 0 0 0 0 0 0 0 0 0 0 4 8 0 0 5 10 0 0 0 0 0 0 5 10 0 0 3 6 14 1 0 0 0 0 0 0 0 0 0 0 2 2 3 3 0 0 0 0 0 0 0 0 0 0 0 0 14 14 TOT* 115 1585 94 1098 47 422 99 1276 21 142 25 94 22 88 62 519 45 345 98 1110 54 9.11 492 53 419 62 498 21 40 8.03 8 7.91 9 5 8.37 7 4.00 12 3.76 13 8.98 12.8 9 6.76 6
WA**
RANK

13.7 8 11.6 8

11

7.67 11.3 3

10

1.90

14

*TOT TOTAL; **WA WEIGHTED AVERAGE

50

INFERENCE

From the above table, Life Insurance Corporation of India, ICICI Prudential Life Insurance Company and HDFC Standard Life Insurance Company are the leading Life Insurance Companies in this sector. Max New York Life Insurance Company, SBI Life Insurance Company and AMP Sanmar Life Insurance Company are the companies which have started to set path in the Life Insurance sector. The Respondents were not much aware of the following Life Insurance Companies. Kotak Mahindra Old Mutual Life Insurance Company, TATA AIG Life Insurance Company, Birla Sun Life Insurance Company and Sahara India Insurance Company.

51 TABLE 4.14 TABLE SHOWING THE ICICI PRUDENTIAL POLICY HOLDERS SATISFACTION LEVEL AMONG THE VARIOUS FACTORS
HIGHLY SATISFIED 5 20 100 1 5 0 0 0 0 2 10 7 35 DISSATISFIED 2 0 0 0 0 9 18 0 0 18 36 0 0 HIGHLY DISSATISFIED 1 0 0 0 0 0 0 0 0 0 0 0 0 46 195 46 169 46 132 46 158 46 125 46 4.07 140 12 187 5 2.72 9 2.87 8 4.24 4

FACTORS WEIGHT(Y) RETURNS(X1) X1*Y CLAIM SETTLEMENT (X2) X2*Y BONUS(X3) X3*Y GUARANTEED ASSURANCE (X4) X4*Y LOAN AVAILING(X5) X5*Y PREMIUM AMOUNT(X6) X6*Y

SATISFIED 4 17 68 29 116 3 12 20 80 1 4 35

NEUTRAL 3 9 27 16 48 34 102 26 78 25 75 4

TOTAL

WA*

RANK

3.67

3.43

PREMIUM PAYMENT MODE(X7)

24

22

46 4.52 2

X7*Y

120

88

208

PREMIUM PAYMENT WAYS(X8)

38

46 4.83 1

X8*Y LIFE COVER(X9) X9*Y

190 16 80

32 28 112

0 2 6

0 0 0

0 0 0

222 46 4.30 198 3

INFERENCE:

*WA WEIGHTED AVERAGE

52

From the above table, The Respondents have ranked the factor Premium Payment Ways as First among the various factors. The Respondents have ranked the factor Premium Payment Mode as Second among the various factors. The Respondents have ranked the factor Life Cover as Third among the various factors. The Respondents have ranked the factor Return as Fourth among the various factors. The Respondents have ranked the factor Premium Amount as Fifth among the various factors. The Respondents have ranked the factor Claim Settlement as Sixth among the various factors. The Respondents have ranked the factor Guaranteed Assurance as Seventh among the various factors. The Respondents have ranked the factor Bonus as Eighth among the various factors. The Respondents have ranked the factor Loan Availing as Ninth among the various factors.

53 SIGN TEST

Sign test is one of the non-parametric tests. Its name comes from the fact that it is based on the direction of a pair of observations, not on their numerical magnitude. It is used to test the hypothesis concerning no difference among two or more variables. The sign test has important applications in the problems where we deal with paired data. In such problem each pair of values can be replaced with positive sign if the value of the first sample is greater than value of the second sample and negative signs if the value of the first sample is less than value of the second sample. In case the two values are equal, the pair will be discarded. Test statistics pP Z= p where, n : is the sample size (total no. of +ve and ve sign excluding zero) no. of +ve sign p : is the proportion of successes and calculated as, p = n P : is the hypothesized proportion and P = 0.5 p : is the standard error of the proportion (p*q) and calculated as p = both p and q has the value 0.5 Level of Significance The Level of Significance for the sign test is 5% and corresponding table value Z is 1.96 n

54 TABLE 4.15 FINDING THE RELATIONSHIP BETWEEN THE INVESTMENT AVENUE SHARES AND BONDS

Null Hypothesis (H0) : There is no significant difference between the Investment avenue of Shares and Bonds Alternate Hypothesis (H1) : There is a significant difference between the Investment avenue of Shares and Bonds

SHARES 1 2 5 2 2 1 5 3 3 5 1 1 1 1 2 2 1 2 5 1 2 4 4 1 2 BONDS SIGN 8 6 6 3 8 5 7 4 4 7 2 8 4 3 3 3 3 8 6 6 3 5 5 6 3 -

SHARES 1 5 2 2 1 2 1 2 2 1 3 2 1 2 1 1 1 1 3 2 1 2 1 2 2 BONDS SIGN 6 7 6 3 6 6 3 5 5 2 6 5 6 3 5 2 4 4 6 5 2 5 6 6 3 -

SHARES 1 2 1 2 1 2 2 1 1 1 1 1 5 1 2 2 BONDS SIGN 6 3 3 3 6 3 8 3 8 4 3 4 6 8 6 3 -

55 From the above table, No. of + ve sign = 0 No. of ve sign = 66 No. of zeros = 0 Sample size n = 66 p = (0 / 66) = 0 p = ((0.5 * 0.5) / 66) Z = 8.13 Z = 1.96 = 0.0615 Z = ((0 - 0.5) / 0.0615) = -8.13

INTERPRETATION

Calculated Z value is more than the table value of Z, so reject Null Hypothesis. So, There is a significant difference between the investment avenue of Shares and Bonds.

56 Similarly Sign Test was conducted, the following tables were formed and interpretations were concluded.

TABLE 4.16 TABLE SHOWING THE CONSOLIDATED SIGN TEST FOR THE VARIOUS INVESTMENT AVENUES

S.No

NULL HYPOTHESIS (H0) There is no significant difference between the

ALTERNATE HYPOTHESIS (H1) There is a significant difference between the Investment avenue of Shares and Mutual Fund 1.02 Z

INTERPRETATION

Investment avenue of Shares and Mutual Fund

Accept H0

There is no significant difference between the 2 Investment avenue of Shares and Life Insurance

There is a significant difference between the Investment avenue of Shares and Life Insurance 4.65 Reject H0

There is no significant difference between the 3 Investment avenue of Shares and Fixed Deposit

There is a significant difference between the Investment avenue of Shares and Fixed Deposit 3.98 Reject H0

Table value of Z, i.e., Z = 1.96

57

S.No

NULL HYPOTHESIS (H0) There is no significant difference between the

ALTERNATE HYPOTHESIS (H1) There is a significant difference between the Investment avenue of Shares and Post Office Scheme 3.80 Z

INTERPRETATION

Investment avenue of Shares and Post Office Scheme

Reject H0

There is no significant 5 difference between the Investment avenue of Shares and Real Estate

There is a significant difference between the Investment avenue of Shares and Real Estate 7.79 Reject H0

There is no significant 6 difference between the Investment avenue of Shares and Gold There is no significant difference between the 7 Investment avenue of Bonds and Mutual Funds There is no significant difference between the 8 Investment avenue of Bonds and Life Insurance

There is a significant difference between the Investment avenue of Shares and Gold There is a significant difference between the Investment avenue of Bonds and Mutual Funds There is a significant difference between the Investment avenue of Bonds and Life Insurance 0.98 Accept H0 6.65 Reject H0 7.83 Reject H0

Table value of Z, i.e., Z = 1.96

58

S.No

NULL HYPOTHESIS (H0) There is no significant difference between the

ALTERNATE HYPOTHESIS (H1) There is a significant difference between the Investment avenue of Bonds and Fixed Deposit There is a significant difference between the Investment avenue of Bonds and Post Office Schemes There is a significant difference between the Investment avenue of Bonds and Real Estate There is a significant difference between the Investment avenue of Bonds and Gold There is a significant difference between the Investment avenue of Mutual Funds and Life Insurance 3.88 0.51 0.25 4.06 4.25 Z

INTERPRETATION

Investment avenue of Bonds and Fixed Deposit There is no significant difference between the

Reject H0

10

Investment avenue of Bonds and Post Office Schemes There is no significant

Reject H0

11

difference between the Investment avenue of Bonds and Real Estate There is no significant

Accept H0

12

difference between the Investment avenue of Bonds and Gold There is no significant difference between the

Accept H0

13

Investment avenue of Mutual Funds and Life Insurance

Reject H0

Table value of Z, i.e., Z = 1.96

59

S.No

NULL HYPOTHESIS (H0) There is no significant difference between the

ALTERNATE HYPOTHESIS (H1) There is a significant difference between the Investment avenue of Mutual Funds and Fixed Deposit 4.96 Z

INTERPRETATION

14

Investment avenue of Mutual Funds and Fixed Deposit

Reject H0

There is no significant difference between the 15 Investment avenue of Mutual Funds and Post Office Schemes

There is a significant difference between the Investment avenue of Mutual Funds and Post Office Schemes 4.8 Reject H0

There is no significant difference between the 16 Investment avenue of Mutual Funds and Real Estate

There is a significant difference between the Investment avenue of Mutual Funds and Real Estate 7.47 Reject H0

There is no significant 17 difference between the Investment avenue of

There is a significant difference between the Investment avenue of 7.82 Reject H0

Mutual Funds and Gold Mutual Funds and Gold

Table value of Z, i.e., Z = 1.96

60

S.No

NULL HYPOTHESIS (H0)

ALTERNATE HYPOTHESIS (H1) Z

INTERPRETATION

There is no significant difference between the 18 Investment avenue of Life Insurance and Fixed Deposit

There is a significant difference between the Investment avenue of Life Insurance and Fixed Deposit 4.53 Reject H0

There is no significant difference between the 19 Investment avenue of Life Insurance and Post Office Schemes

There is a significant difference between the Investment avenue of Life Insurance and Post Office Schemes 4.36 Reject H0

There is no significant difference between the 20 Investment avenue of Estate

There is a significant difference between the Investment avenue of Estate 0.35 Accept H0

Life Insurance and Real Life Insurance and Real

There is no significant difference between the 21 Investment avenue of Life Insurance and Gold

There is a significant difference between the Investment avenue of Life Insurance and Gold 1.11 Accept H0

Table value of Z, i.e., Z = 1.96

61

S.No

NULL HYPOTHESIS (H0)

ALTERNATE HYPOTHESIS (H1) Z

INTERPRETATION

There is no significant difference between the 22 Investment avenue of Fixed Deposit and Post Office Schemes

There is a significant difference between the Investment avenue of Fixed Deposit and Post Office Schemes 6.12 Reject H0

There is no significant difference between the 23 Investment avenue of Fixed Deposit and Real Estate

There is a significant difference between the Investment avenue of Fixed Deposit and Real Estate 4.76 Reject H0

There is no significant 24 difference between the Investment avenue of

There is a significant difference between the Investment avenue of 3.81 Reject H0

Fixed Deposit and Gold Fixed Deposit and Gold

There is no significant difference between the 24 Investment avenue of Post Office Schemes and Real Estate

There is a significant difference between the Investment avenue of Post Office Schemes and Real Estate 4.76 Reject H0

Table value of Z, i.e., Z = 1.96

62

S.No

NULL HYPOTHESIS (H0) There is no significant difference between the

ALTERNATE HYPOTHESIS (H1) There is a significant difference between the Investment avenue of Post Office Schemes and Gold There is a significant difference between the Investment avenue of Real Estate and Gold 8.3 3.81 Z

INTERPRETATION

26

Investment avenue of Post Office Schemes and Gold There is no significant

Reject H0

27

difference between the Investment avenue of Real Estate and Gold

Reject H0

Table value of Z, i.e., Z = 1.96

63

CHI SQUARE TEST METHOD

The Chi square test is an important test amongst the several tests of significance developed by statisticians. As a non-parametric test, It can be used to determine if categorical data shows dependency or the two classifications are independent. It can also be used to make comparisons between theoretical populations and actual data when categories are used. The following are some of the conditions to be satisfied, Observations recorded and used are collected on random basis. All the items in the sample must be independent. No group should contain very few items, say less than 10. The overall number of items must also be reasonably large. Test Statistics ( Oi Ei )2 Ei Where, Oi = Observed Frequency Ei = Expected Frequency N = Number of Respondents Degrees Of Freedom Degrees of freedom = (N-1) Level of Significance The Level of Significance for the test is 5%

Chi Square ( = )
2

64 TABLE 4.17 FINDING THE RELATIONSHIP BETWEEN THE VARIOUS FACTORS INFLUENCING THE INVESTMENT

Null Hypothesis (H0) : There is no significant difference between the various Investment factors. Alternate Hypothesis (H1) : There is a significant difference between the various Investment factors. PREFERENCE FOR THE SELECTION OF FACTORS OBSERVED SUM ASSURED PREMIUM TAX BENEFITS RETURNS TOTAL Calculated Chi- Square (2 )Value Level Of Significance Degrees Of Freedom (N-1) Table Value INTERPRETATION Calculated 2 Value is greater than the Table Value, so Null Hypothesis (H0) is rejected. Therefore, there is a significant difference between the various investment factors. 49 89 45 73 256 = 20.1874 = 0.05 = 3 = 7.81 COMPANY EXPECTED 64 64 64 64 256

65 TABLE 4.18 FINDING THE RELATIONSHIP BETWEEN THE VARIOUS PLANS IN WHICH THE RESPONDENTS HAVE INVESTED

Null Hypothesis (H0) : There is no significant difference between the various plans in which the respondents have Invested. Alternate Hypothesis (H1) : There is a significant difference between the various plans in which the respondents have Invested.

NAME OF THE PLAN RETIREMENT PLAN CHILD PLAN INVESTMENT PLAN SAVINGS PLAN TOTAL

RESPONDENTS PREFERENCE OBSERVED 46 10 68 77 201 EXPECTED 50.25 50.25 50.25 50.25 201

Calculated Chi- Square (2 )Value Level Of Significance Degrees Of Freedom (N-1) Table Value INTERPRETATION

= 53.1093 = 0.05 = 3 = 7.81

Calculated 2 Value is greater than the Table Value, so Null Hypothesis (H0) is rejected. Therefore, there is a significant difference between the various plans in which the respondents have invested.

66 CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS

Most of the respondents are male and belongs to working category. 47% of the respondents are saving 5-10 % of their annual income. 81% of the respondents prefer returns as the reason of the investment. 79% of the respondents prefer public sector insurance company i.e., Life Insurance Corporation of India. Only 82% of the respondents are having Life Insurance Policies and the remaining percentage of the respondents are willing to take policy in LIC. 94% of the respondents are having policies in LIC and next to it 46% of the respondents are having policy in ICICI Prudential. In future mostly all the respondents are willing to take policy in LIC. Premium and Return are the major factor that influence in choosing the companies and moreover the various investment factors like Sum Assured, Premium, Tax Benefits and Returns are having a significant difference among them. The order in which the factors influence are Premium, Returns, Sum Assured and Tax Benefits.

67 Most of the respondents are interested to take policies of Savings Plan and Investment Plan and moreover the various plans like Retirement Plan, Child Plan, Investment Plan and Savings Plan are having a significant difference in which the respondents have invested. The order in which the respondents prefer the plans are Savings Plan, Investment Plan, Retirement Plan and Child Plan. With regard to ICICI Prudential, Investment Plans are more attractive than other plans. With regard to ICICI Prudential, the respondents are very much satisfied with Premium Collection Mode and Premium Payment Mode, but not satisfied with Bonus provided and loan availing facility. The preference of various pairs of investment avenues which has no significant difference, o with Shares is Mutual Fund (other avenues like Bonds, Life Insurance, Fixed Deposit, Post Office Scheme, Real Estate and Gold has a significant difference). o with Bonds are Life Insurance, Real Estate and Gold (other avenues like Mutual Fund, Fixed Deposit and Post Office Scheme has a significant difference) o with Life Insurance are Real Estate and Gold (Fixed Deposit and Post Office Scheme has a significant difference) LIC has got first rank among the various Life Insurance Companies and ICICI Prudential has got second rank in the Life Insurance Sector.

68 5.2 SUGGESTIONS

The income group 1 to 5 lakh are more interested in investment in insurance. It is suggested that while marketing this segment be considered. Since Return is the main expectation of investors, it is recommended that this aspect be reinforced while wooing prospective investors to ICICI Prudential. Only few Respondents have planned to go for private life insurance, so the schemes and advantage of ICICI Prudential must be promoted greatly. The awareness of LIC is most and other private insurance companies remains untapped. It is suggested that an attempt be made to bring out the advantages of other ICICI Prudential schemes. The respondents were only partially aware of Market Linked schemes. Since most of the respondents prefer return as their investment option steps should be taken to explain about the advantages of Market linked plans of ICICI Prudential. Since most of the respondents prefer only certain schemes, all the other schemes available in ICICI Prudential should be promoted and the insurers must be updated on the highlights of the schemes. With regard to ICICI Prudential the factors Bonus provided and Loan Availing facility are not satisfactory to the customers. So it is recommended that to the company that they have pay more attention to these factors.

69

5.3 CONCLUSION

The conclusion is arrived through the analysis and interpretation. The Study undertaken for ICICI Prudential Life Insurance Company Limited has been successful in analysis of the customers Attitude, Perception and Satisfaction Level towards Investment in ICICI Prudential.

It has been found that the salaried person is more interested in having insurance as an investment avenue for various reasons. LIC is the well known company in the Insurance sector and Savings Plan is the well known scheme. The private insurance companies are accepted to certain extent only and it has to be tapped to greater extent.

It has also found that the Investment Plan of ICICI Prudential is gaining more advantage than other schemes. This is because that Returns has a major effect on investment made by investors.

Based on the findings of the study a few suggestions have been given by the researcher, if it is considered, it would give strength to the marketing strategy of ICICI Prudential in tapping investment in the field of insurance.

70 APPENDIX I

Questionnaire
1. Name: Address Gender: (a) Male (b) Female Age: (a) 18-25 (b) 26-35 (c) 36-45 (d) Above 45 Martial Status: (a) Married (b) Unmarried 2. Nature of employment (a) Employee (b) Professional (c) Business (d) Agriculture (e) Others 3. Annual income (a) Less than 1 lakh (b) 1-5 lakh (c) 5-10 lakh (d) More than 10 lakhs 4. How much will you save? (a) Less than 5% (b) 5-10% (c) 10-15% (d) More than 15% 5. Your preference for investment (Rank them) Shares Bonds Mutual Fund Life insurance Fixed Deposit Post Office Scheme Real Estate Gold Others 6. Reason for your investment (a) Life Cover (b) Returns (c) Capital Appreciation (d) Tax Savings (e) Others 7. Which sector of insurance you prefer? (a) Public (b) Private 8. Do you have Life Insurance Policy? Yes / No

71 9. If yes, in which company do you have the policy (a) LIC (b) ICICI Pru (c) HDFC (d) Others 10. Reason for your preference for the above said company (a) Sum Assured (b) Premium (c) Tax Benefits (d) Return (e) Others 11. In which plan have you invested? (a) Retirement Plan (b) Child Plan (c) Investment Plan (d) Savings Plan (e)Others .. 12. If no (Q.No. 8), do you have an idea to take life insurance policy? Yes / No 13. Which company do you prefer to take policy? (a) LIC (b) ICICI Pru (c) HDFC (d) Others 14. Reason for your preference for the above said company (a) Sum Assured (b) Premium (c) Tax Benefits (d) Return (e) Others 15. Rank the following Insurance Company Life Insurance Corporation of India HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Company Limited Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited. ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Aviva Life Insurance Company Pvt. Ltd. MetLife India Insurance Company Pvt. Ltd. AMP Sanmar Life Insurance company Ltd Sahara India Insurance Company Ltd

16. Do you have an idea to take a policy in ICICI Pru Yes / No 17. In which plan do you like to invest? (a) Retirement Plan (b) Child Plan (c) Investment Plan (d) Savings Plan (e)Others ..

72 18. What is your satisfaction level towards ICICI Prudential products with regards to the following factors? Particulars Returns Claim Settlement Bonus Guaranteed Assurance Loan availing Premium Amount Premium payment mode Premium payment ways Life cover Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

19. Do you need any advisors from ICICI Prudential to explain about the products? Yes / No 20. If yes through what means, (a) Calls (b) Meet (c) Mail 21. Any Suggestion

THANK YOU

73 REFERENCES

1 2 3 4

Kothari. C.R (2004): Research Methodology Methods & Techniques, New Age International Publishers, New Delhi, 2nd Edition. Richard I. Levin, David S. Rubin (2004): Statistics for Management, Prentice Hall of India Private Limited, New Delhi, 7th Edition. Insurance: Principles and Practices- by Mathew. Life Insurance Agents Licensing Course; Centre for Management Development, New Delhi.

Websites www.irda.com www.licindia.com www.iciciprulife.com www.prudential.co.uk www.google.com

Magazines

Business World. The Hindu Business Line. The Economic Times