A REPORT ON

CUSTOMER AWARENESS AND PERCEPTION

TOWARDS
LIFE INSURANCE CORPORATION
 CONTENTS

CHAPTER NO TITLE PAGE NO.

LIST OF TABLES 19-40

LIST OF FIGURE 19-40

I INTRODUCTION 1-6

II REVIEW OF LITERATURE 8-17

III DATA ANALYSIS AND

INTERPRETATION 18-40

IV CONCLUSION 41

BIBLOGRAPHY

ANNEXURE
 LIST OF TABLES

TABLE : NO TITLE PAGE : NO

3.1 Gender 19

3.2 Age 20

3.3 OCCUPATION 21

3.4 Educational Qualification 22

3.5 Income 23

3.6 Periodicity of the policy 24

3.7 Number if policies 25

purchased
3.8 Term of policy 26

3.9 Type of policy 27

3.10 Preference of Expectation 28

on investment
3.11 Factors considered at the 29
time of buying policy
3.12 Advertisement relating to 30
LIC
3.13 Technology to serve 31
customer is effective in
computerisation
3.14 LIC have complex 32
formalities
3.15 LIC agents provide correct 33
information
3.16 Preference of purchasing 34
new policy in future inLIC.
3.17 Like riders of LIC 35

3.18 Satisfaction with life policy 36

3.19 Satisfaction with pension 37

policy
3.20 Perception about LIC 38

3.21 Grevience redressal 39

mechanism
3.22 Satisfaction level on LIC 40
 LIST OF FIGURES

TABLE : NO TITLE PAGE : NO

3.1 Gender 19

3.2 Age 20

3.3 OCCUPATION 21

3.4 Educational Qualification 22

3.5 Income 23

3.6 Periodicity of the policy 24

3.7 Number if policies 25

purchased
3.8 Term of policy 26

3.9 Type of policy 27

3.10 Expectation on investment 28

3.11 Factors at the time of 29

buying policy
3.12 Advertisement relating to 30
LIC
3.13 Technology to serve 31
customer is effective in
computerisation
3.14 LIC have complex 32
formalities
3.15 LIC agents provide correct 33
information
3.16 IF you buy new policy will 34
you prefer LIC.
3.17 Like riders of LIC 35

3.18 Satisfaction with life policy 36

3.19 Satisfaction with pension 37

policy
3.20 Perception about LIC 38

3.21 Grevience redressal 39

mechanism
3.22 Satisfaction level on LIC 40
 CHAPTER – I

AN OVERVIEW:
Insurance is a tool by which fatalities of a small number are compensated out of funds
(premium payment) collected from plenteous. Insurance is a safeguard against uncertain
events that may occur in the future. It is an arrangement where the losses experienced by a
few are extended over several who are exposed to similar risks. It is a protection against
financial loss arising on the happening of an unexpected event. Insurance companies collect
premium to provide security for the purpose. Loss is paid out of the premium collected from
people and the insurance companies act as trustees to the amount so collected. These
companies have proposal forms which are filled to give details of insurance required.
Depending upon the answers in the proposal from insurance companies assess the risk and
decide on the premium. Insurance companies are risk bearers. They underwrite the risk in
return for an insurance premium. The function of insurance is to provide protection, prevent
losses, capital formation etc. Hence insurance can be defined as a tool in which a sum of
money as a premium is paid by the insured in consideration of the insurer’s bearing the risk
of paying a large sum. It may also be defined as a contract wherein one party (insurer) agrees
to pay the other party (insured) or his beneficiary, a certain sum upon a given contingency
against which insurance is required.
Life insurance companies deal with human life values. The risk in life insurance is measured
in terms of monetary value. Man, within himself, represents great worth that creates all utility
in tangible property. After nature, everything we have in this universe springs from man. Life
value, therefore, is the basic value. There is so much financial value on the human life. Ideas
and energy make money in our life and both come from man himself. Man is endowed with
highly intellectual ability and he makes untiring efforts for the betterment and advancement
of his life, which gives him the highest happiness and comfort, also benefiting in that process
all those who depend on him for economic security. Insurance is an effective device which
promotes stability, prosperity and happiness to the individual and the society at large. The
money paid by the insured public by way of premium does not remain idle in the coffer.
World over, it is used for promoting industries, business, commerce and developmental
programs, particularly in Developing countries like India.
Indirectly, the insured community contributes for a noble cause – nation building activity.
It can, therefore, be said that insurance is a multi faceted tool in the hands of Mankind for a
number of purposes. Developed countries come from insurance premium (in India it is a
little over 4%). Insurance as a business activity is a driver of economic development.
Insurance is an effective device which promotes stability, prosperity and happiness to the
Individual and the society at large. Development and insurance are also Complementary to
each other. Prudent men will realize the importance of insurance and will accept it as an
integral part of the way of financial planning in life.

Insurance industry commands massive funds through sales of insurance products to large
number of clients. Insurers also create liabilities and commit themselves to compensate for
losses occurring to the policyholders on future date. It also plays an important role in process
of capital formation.

The customer perception towards life insurance policy is positive in neutral. it develop the
positive mind set of the people on their investment pattern, in insurance policies. Still some
action is needed to for developing the insurance market , the major factors playing the role in
developing customer perception towards life insurance policies are customer loyalty, quality,
ease of procedures, satisfaction level, company image, and client relationship.
Insurance Industry is improving themselves . a lot of opportunities are still waiting this
research will help in developing the customer awareness and perception on LIC.

IMPORTANCE OF THE STUDY

The settlement is easy in case of death. The heirs can collect the money quicker, because of
the facility of nomination and assignment. The facility of nomination is now available for all
bank accounts. There is a certain amount of compulsion to go through the plan of savings. In
other forms, if one changes the original plan of savings, there is no loss. They can be
protected against the attachments by court.

There are tax benefits, both in income tax and in capital gains. Marketability and liquidity
are better. A life insurance policy is property and can be transferred or mortgaged. Loans can
be raised against the policy. The faith will enhance their determination to sell and their
perseverance.

Life insurance is only the best possible way for family protection. There is no other way.
Insurance is the only way to safeguard against the unpredictable risks of the future. It is
unavoidable. The terms of life are hard. The terms of insurance are easy.

The value of human life is far greater than the value of property. Only insurance can
preserve it. Life insurance is not surpassed by many other savings or investment instrument,
in terms of security, marketability, stability of value or liquidity.

Life insurance is essential for the conservation of many businesses, just as it is in the
preservation of homes. Life insurance enhances the existing standards of living. Life
insurance helps the people live financially insolvent in their life. Life insurance perpetuates
life, liberty and the pursuit of happiness. Life insurance is a way of life.

NEED FOR THE STUDY

The deeper the company understands of consumer’s needs and perception, the earlier the
product is introduced ahead of competition, the greater the expected contribution margin.
Hence the study is very important. Consumer markets and consumer buying behaviour can be
understood before sound product and marketing plans are developed.

This study will help companies to customize the service and product, according to the
consumer’s need. This study will also help the companies to understand the experience and
expectations of the existing customers. Apart from creating, manufacturing and distribution
capabilities for life insurance products, and in depth study of the consumers, their preferences
and demand for their product is very necessary for setting up an efficient marketing network

BENEFITS THAT OCCUR FROM THE STUDY

 It is superior to an ordinary saving plan
Comparing to other saving plans, it affords full protection against
risk of death. In case of death, the full sum assured is made availableunder a life assurance
policy; whereas under saving scheme the total accumulated saving alone will be available.
The later will be considerable less than the sum assured, if death occurs during early years.
  Ready marketability & suitability for quick borrowing:
After an initial period, if the policyholder finds him unable to continue payment of
premiums, he can surrender the policy for a cash sum. Alternatively, he can tide over
a temporary difficulty by taking loan s ol e S e cu ri t y o f t h e pol i c y wi t h out
del a y.
 Tax Relief: -
The Indian Income-Tax allows deduction of certain portion of the taxableincome, which
is diverted to payment of life insurance premiums from the total income taxliability. When this tax
relief is taken into account, it will be found that the assured is ineffect paying a lower
premium for his insurance.
 To provide cash to meet various routine expenses of the family on or immediately after
the death of the income earner of the family.
 To preserve the family’s accustomed standard of living ever after the death of
the breadwinner.
 To provide continuous flow of funds for the living spouse.
 To allocate income funds for the children’s education.
 To provide a retirement income throughout old age.
 To provide a reliable savings plan for the future.
 To s u ppl em en t i nc o m e wh e n e ar ni n g po we r i s r ed u c ed o r er od ed b Y
i l l n es s , accident or any handicap.
 To furnish surplus earnings for the investors should disaster strike

LIMITATIONS OF THE STUDY

This study is restricted to the urban population only. Insurance Companies, both
private and public were unwilling to disclose any information apart from those available on
the websites. It was very difficult to get information regarding details of policies and
financial statements of public sector LIC. The respondents restricted to limited area so it may
not shoe the accurate information to the study. The sample size chosen for the questionnaire
was only 100 and that may not represent the true picture of the consumer perception about the
Life Insurance sector. The sample was on the basis of convenient random sampling.
OBJECTIVES OF THE STUDY
 To examine the perception of the customer.
 To know the satisfaction level of customer.
 To study the needs of the customer.
SCOPE OF THE STUDY
The result of this research would help the Life insurance company to have a better
understanding about the consumer’s Awareness and perception towards life insurance
products offered by LIC of India. The study helps the LIC of India to focus the consumer’s
preferences and expectations on the product which they offer.
METHODOLOGY
Descriptive research is used in this study in order to identify, the customer awareness
and perception in insurance industry. It is essential on investigation according and an analysis
of evidence for purpose of gaining knowledge. In this methodology the source of data, tools
collection, research design, sampling, period of study and limitations are analysed and
interpreted in a wide manner.
RESEARCH DESIGN
 This study is an empirical study it is based on the primary and secondary data.
 The primary data relating to the level of perception and awareness to the
customer on insurance about the service offered by were collected from persons
are policy holders in LIC by the researcher with the help of an interview schedule.
 Secondary data were obtained from different brochures of insurance industry,
website of insurance industries, magazines and journals.
SAMPLE SIZE
 Taking in to consideration the limited period given to conduct the research the
samples taken for the study is restricted to 100. The respondents are the
customers of LIC.

SAMPLING TECHNIQUE
The sampling technique is used for the purpose of data collection is convenient
sampling. A convenient sample is one of the main types of non-probability
 sampling methods. A convenient sample is made up of people who are easy to
reach.

SOURCE OF DATA
The data has been collected by the means of both the primary and secondary data .
as an objective of the study is to learn about the customer awareness and perception towards
insurance industry. Primary data was considered a necessity and this has been collected fresh
for the first time. The secondary data for the study is obtained from various books
,magazines, journals and websites etc.
COLLECTION OF PRIMARY DATA
Structured questionnaire for the customer is prepared .questionnaire has open ended
questions.
TOOLS USED FOR DATA COLLECTION
Collection of data is important stage in research. In fact the quality of data collected
will also determine the quality of research. The data was collected through questionnaire.
QUESTIONNAIRE
A Questionnaire is containing relating to certain specific aspects, regarding which the
researcher collects the data. All 100 questionnaire were issued to respondents and have been
collected . the questionnaire is prepared in such a way that choose the comprehensive
objective of the study.
PERCENTAGE ANALYSIS
As the data were presented in large numbers it is easy to interpret to make interpretation
easy the interpretation is used.
CHAPTERIZATION

CHAPTER-1: It deals with the introduction of the insurance industry under the concept of
customer awareness and perception towards LIC. This chapter shows it consists of
importance, scope, needs, limitations and objectives of the study and methodology of the
study with the reference to customer awareness and perception towards LIC.

CHAPTER-2 : It deals with the review of literature relating to the concept of customer’s
perception and awareness on LIC.

CHAPTER-3: It deals with the analysis and interpretation under the head of awareness and
perception of customer on LIC regarding demographic data and other collected data’s with
the help of LIC customers.

CHAPTER-4 It deals with the Suggestion, Findings and Conclusion and also consists of
bibliographies and websites which helps us to collect information regarding the awareness
and perception of customer towards LIC.
 CHAPTER-II

INTRODUCTION

This chapter presents the review of literature relating to the study undertaken. A brief review
of literature would be of immense help to the researcher in gaining an insight into the selected
problem. It would help in gaining good knowledge of the area under study. This study is the
first of its category in the way as it attempts to compile the views given by expert
commissions, research bodies and individual researchers with reference to private life
insurance, level of awareness, policyholders’ level of satisfaction with Life Insurance
Corporation of India and Private Life Insurance companies. The reviews presented below are
based on internet search, perusal of related literature available in libraries and from various
publications of books, newspapers, journals, magazines and research studies made on this
topic.
REVIEWS RELATED TO LIFE INSURANCE POLICYHOLDERS AWARENESS
Chaudhary (2017) explained that today India is one of the fastest growing economies of the
world. The Insurance Industry contributes to the financial sector of an economy and also
provides social security to the people of a country. The income earning capacity and
increasing rate of literacy are the key factors of the growth of the Insurance industry. This
sector provides for the long term contractual savings and security in both good return and life
risk coverage. This analysis is based on sample of 120 individuals from general public. This
study is conducted in Panipat city to check the awareness and satisfaction level of insurance
buyers/ consumers. To achieve these objectives, a questionnaire is designed to collect the
data of buyers of insurance. The awareness among the people moderate and satisfaction of
customers are compromisable.
Jain and Goyal (2017) the level of awareness towards the rights and duties regarding
insurance are negligible. The study tries to understand the awareness of the people towards
the rights and duties towards life insurance products after the privatization of the insurance
sector. To actually understand this, a primary research was conducted to find out the level of
awareness towards the rights and duties of the policy holders across demographic profiles and
about the level of awareness towards life insurance policies prevailing in the market. The
analysis is based on a sample of 117 individuals from randomly selected general public.

Prakash (2016) observed that consumer awareness is the knowledge that a consumer should
have about his/her legal rights and duties. It is must for a consumer to follow these rights. It is
implemented for the protection of the consumer, so that the consumer is not exploited by the
seller of the products. Consumer awareness is making the consumer aware of His/ Her rights.
This article is based on 95 individuals out of 100 in general sample research. The marketing
term ‘Consumer awareness’ means that consumers note or aware of products or services. The
article has found that customer is not much aware of the legal right of insurance and get
satisfied through their protection level.
Dar (2016) carried out a community-based cross-sectional study towards the awareness of
life insurance in the population of Andhra. A total number of 242 respondents from 242
households were interviewed by using a pretested questionnaire after obtaining informed
consent from the participants. The awareness of life insurance was found to be 64.0 per cent.
Around 45.0 per cent of the respondents came to know about life insurance from the media
which played an important role in the dissemination of information. The mean premium
amount agreeable to be paid by the respondents for life insurance was found to be
Rs.1804.00; even the low socio-economic group of people was also willing to part with a
reasonable amount of Rs. 697.00 annually for life insurance. The middle and low socio-
economic groups favoured government life insurance compared to private life insurance as
they have more faith on Government Company. The findings indicate that government should
come out with a policy, where the public can be made to contribute to a life insurance scheme
to ensure unnecessary events and also better utilization of life insurance facilities.
Choudhuri (2016) analysed that the customers are very much conscious about their needs
and requirements towards insurance. Based on the several factors, customers are now
selecting different kinds of products in their life where their awareness about the several
existing life insurance products varies situation wise, culture wise, nation wise, sector wise,
industry wise and obviously over times. On the other hand, like any other company, Life
Insurance Corporation of India (LICI) is adopting various strategies to develop customers’
awareness about the various products as well as involving in the fulfilment of various needs
and requirements of the customers through their selection of different life insurance policies
available in the market. In this study, accepted 221 usable responses were considered as the
sample size and statistical package SPSS 16 was used to perform the analyses. Observing
present scenario of the LICI customers’ product awareness and their current transactional life
insurance policies are very much satisfiable and 45% of the people are aware of insurance.

Choudhuri (2016) explained that as a social being customers are not only relationally
attached with the different kinds of people in their daily life but also directly related with
their service providers in different ways. Empirical studies indicated that in the modern age
of the society, the technology savvy customers‟ awareness about the several existing life
insurance products depends on a number of factors where over times these factors varies
situation wise, culture wise, nation wise, sector wise as well as industry wise. Considering
awareness scenario of the customers of Life Insurance Corporation of India . the researcher in
this study conducted a survey with 155 respondents out of 200 to indentify the significant
factors that play a noteworthy role in customers‟ mind to make them aware about the
different products of the LICI. So this article finds that the insurance company has to use
innovative strategies to attract them and make them aware and satisfiable.
Narendar and Sampath (2016) observed that the level of awareness towards the rights and
duties regarding insurance is negligible. The study tries to understand the awareness of the
people towards the rights and duties towards life insurance products after the privatization of
the insurance sector with special reference to Indian insurance sector. To understand this the
study conducted a research in Mumbai 300 respondents . The study totally concentrates on
the perception and awareness and also crating the awareness regarding their contribution on
Indian insurance sector. This article finds the attitude, behaviour of the customer and provide
them a protection through insurance and make them satisfy.
Yusuf et al., (2015) described the awareness towards the insurance institution. The attitudes,
most often negative are mirrored through low patronage of insurance services. It discusses
such social-cultural factors that account for these attitudes and what role marketing strategies
can play to change such negative tide. Drawing from theoretical foundation, an empirical
survey was conducted among 392 members of the public-insuring and non-insuring-to gauge
their awareness level and general attitudes towards insurance companies and their operations.
The findings present different demographical factors and their attitudes towards insurance
companies and their services. the research on this topic provides a positive response with 135
general public out of 200. The findings from such survey would constitute vital input for
insurers in designing marketing strategies that would further stimulate and boost patronage
and perception of insurance services.

Kothari, et al., (2015) stated that the life insurance is one of the most important social
security measures undertaken in the country. Based on primary data generated through direct
contacts, this study attempts to identify determinants of life insurance ownership in the
country. This resulted into finding out what factors play very important role in life insurance
policies purchase. Total 100 respondents were there used in this study. Item to total
correlation was applied to check the consistency of the questionnaire. The measures were
standardized through computation of reliability and validity tests. Factor analysis was applied
to identify the underlying factors. The findings of this study provide the individual perception
about the insurance policies.
Rajeswari and Kartheeswari (2015)determined that the customer satisfaction as the
perception of customers on the service whether that service has met his needs and
expectations. Service quality, personal factors, perception of equity and fairness, price,
product quality, situational factors and attributions for service success or failure are the
factors that influence the customer satisfaction. However, the perceptions, awareness and
expectations of the policyholders who have taken the policies from Life Insurance Companies
vary from person to person. This study finds the perceptions of the policyholders about the
service rendered by the LIC of India and intends to promote a better theoretical understanding
and recognition of the complexities to service quality and its measurement with respect to life
insurance. The study is based on 380 policyholders from District situated in South Tamil
Nadu.
Sandhu and Bala (2015) inferred that the service quality has become a highly instrumental
co-efficient in the aggressive competitive marketing. For success and survival in today’s
competitive environment, delivering quality service is of paramount importance for any
economic enterprise. Life Insurance Corporation of India, The present study aims to measure
customers’ perception towards life insurance service quality by applying a framework
developed by them. An advocated procedure has been used to develop, refine and validate a
scale. Data has been collected from 337 customers from the three cities of Punjab (a
progressive State of India). The findings of the study demonstrate that five-factor structure
has been refined to seven factor construct (consisting of 34 items) representing Proficiency;
Media and presentations; Physical and ethical excellence; Service delivery process and
purpose; Security and dynamic operations; Credibility; and Functionality. Besides, the study
also investigates the relationship between each of the generated service quality dimensions
and customers overall evaluation of life insurance service quality.
Gautam and Kumar (2015) stated that the attitudes of Indian consumers towards the
insurance services. The study has been made by collecting the responses of consumers
through structured questionnaire on five point Likert scale. A total 377 responses were
collected to assess the level of awareness about the life insurance and their attitude towards
insurance significant impact on consumers’ attitudes towards insurance services in Indian
scenario. The findings of the present study may act as input for the insurance companies in
Indian market to frame marketing strategies based on socio demographic and economic
variables. This helps to make them aware of life insurance.
Kavitha (2015) examined that the customer awareness towards the General Insurance. A
study has been conducted at Erode district with the sample of 750 respondents to find out the
satisfaction level of the policyholders in the study area. In this context, the respondents’
opinion on the various related statements were collected with a 5 point scaling. Factor
analysis, an important multivariate technique has used to reduce the large number of factors
in a small group of factors. Among the 25 statements given it has been condensed into 6
factors which are to be the different type of policy holders conscious. This study helps to find
out the various customers which are having different expectations from the Insurance
Companies in the study area and make them satisfied up to their satisfaction level.
Dash (2015) This study tries to compare the perceptions of both the buyers and the sellers in
life insurance regarding this valuable element of 7P's and its impact on the customers' policy
buying decisions. It has possess the similar perceptions about the impact of 'people' on the
customers' willingness to buy a policy. This element involves some parameters concerned
with both the buyers and the sellers outlined as: Employees, Customers, Training, Incentives,
Various statistical tools were used to find out any possible differences in the perceptions
among the various categories of respondent. About 240 respondents out of 300. It was found
that there was a major difference between the customers and the executives cutting across all
the categories of the company or the locality. This study helps the life insurers to understand
its customers and their needs better to provide them protection and satisfied. And with the
help of existing customer satisfaction they can get more new customer. this helps to improve
their business.

Mushtaq (2015) defines the effect of services provided by the insurers and its role in
building customer awareness. Every business these days of cut throat competition need to
focus on their customer to maintain themselves in the market. Moreover their competence
depends more on the attribute that how they treat their customers, their needs, demands and
attitudes. The current study is conducted in the state concerning about 150 respondents all of
which are the insurance customers. This study found the attitudes of the customers regarding
the services especially after sale services provided by their insurers and also tries to give
satisfaction.
Subban (2015) explained that the life insurance business in India has witnessed rapid
transformation since 1999, when this sector was thrown open to the private sector when the
Government allowed private players and FDI up to 26%. Today, 23 life insurance companies
(1 public sector & 22 private sectors) engaged in this business, many of which are joint
ventures involving foreign firms. There is a dramatic change in the numbers and variety of
insurance products on offer, and the ways in which they are marketed and distributed. Today,
people were very aware about the insurance companies and their products. In India 20
percent of the people invested in the life insurance companies. A universal truth about life
insurance is that People do not buy life insurance, it is sold to them. And especially in India
this is unfortunate and true. This study found the awareness and attitude of the life insurance
investors’ with reference to the District of Tamil Nadu. This study is based on the primary
data for 800 respondents are taken for convenient sampling.
Rao (2014) observed that insurance occupies an important position in the financial sector of
an economy. In a period of half a century, the insurance sector in a country has come in a full
circle from being an open competitive market to competed nationalization and then back to a
liberalized market. The entry of private player’s in the Indian insurance market has change
the nature of competition. But LIC (Life Insurance Corporation of India) continuous to be the
dominant life insurer even in the liberalized scenario of Indian insurance and it moving fact
on a new growth trajectory surpassing its own past records. Customer loyalty depends on
satisfaction of his multiple needs. The Life Insurance Corporation of India has devised
several life policies to satisfy these diversified needs of the customers. The main objective of
this research is to study the policyholders’ perceptions on LIC in india hence majority of the
Indian population cannot understand its meaning. After history of more than two hundred
years of life insurance sector history in India it is still under penetrated with 27 percent.
Almost all the insurers knows that it is not bought and it has to be sold, even still there are lot
of misconceptions in the minds of Indians towards the concept of insurance hence it caused
complications in marketing its products. In reality making the uneducated rural and
economically backward people to understand the insurance concept is a challenging task.
This research is based on survey conducted in north tamilnadu only with150 respondents out
of 400. This article found to create awareness among rural and economically backward
people.
Venkaiah and Sudhir (2014) explained that the decade of 90s, saw the emergence of
liberalization. Liberalization means lifting governmental restrictions and allowing
competition to play free role in the economy. With respect to insurance business,
liberalization means allowing private enterprises to operate in this particular sector. The main
private insurance companies which are challenging the monopoly position of LIC are TATA-
AIG, SBI Life, Reliance, ICICI Prudential, ING Vysya, Max New York life etc. Prakasam
district is well known for its cultivation and people are well educated. The survey attempted
to secure the opinion of Insurance policy holders towards private Insurance companies in
Ongole town. The data was collected from a sample of 200 policy holders with the help of a
structured questionnaire. Convenience sampling technique was adopted. The major findings
of the study include that very few policies are better alternative for LIC policies, the private
insurance companies should try to increase the age limit and to reduce the hidden cost,
confidence on private Insurance companies because of the supervision of IRDA. Majority of
respondents have awareness about medical policies. The study founds responsibility of the
private Insurance companies should design better Insurance policies, augment the age limit
and reduce hidden cost to cope up the competition with lic.
Vinoth (2014) stated that the life insurance is an excellent way of providing retirement
savings and also protecting families from financial hardship. For women, life insurance is
often a more effective way of saving for retirement. The research study is entitled “Attitude
of Working Women in Private Banks towards investing in Life Insurance with special
reference with the objectives of to study and analyze the preference of Life Insurance, To
analyze the kind of policy mostly preferred by the private bank working women’s, the reason
for investing in Life Insurance and to find the satisfaction of working women on the quality
of service of the Insurance Companies. The analysis has been done with 300 samples. The
article found that majority of the Private Bank Working Women’s were prefer Life Insurance
Corporation of India for investing in Life Insurance Policies, Money Back insurance policy is
the most familiar kind of policy among the private bank working women’s and savings and
tax benefit are most common reason for investing in Life Insurance Policies.
Muthukumar and Rajesh (2014) identified that the life insurance plays a significant role,
For the individuals, life insurance is a life saver since it offers protection and extends a hand
of protection to those who feel depressed and are left without any support due to the sudden,
unexpected demise of the breadwinner of the family. It has an element of saving for
investment in future. It offers a safe and secured future, by providing financial assistance at
times of need that is for meeting the educational expenses of the children or marriage and so
on. It provides loan facilities which improve the credit worthiness of the policy holder. A life
insurance policy may be used to avail loan facility, directly from the life insurance company
or can be given as a collateral security for obtaining financial assistance from banks and other
financial institutions. In case of death, life insurance provides security for the family and
provides guaranteed payment when there is reduction in the earning power, due to old age,
sickness, accident and so on. This whole study is based on applied statistics of survey with
200 respondents. This study found that now days most of the people are aware of life
insurance and they had a very good perception which provides them a protection and
financial assistance when people are in need. So customer are satisfied with the insurance
company .
Venugopa (2013) presented that life insurance is intangible in its nature hence majority of
the Indian population cannot understand its meaning. After history of more than two hundred
years of life insurance sector history in India it is still under penetrated with 27 to 27 percent.
Almost all the insurers knows that it is not bought and it has to be sold, even still there are lot
of misconceptions in the minds of Indians towards the concept of insurance hence it caused
complications in marketing its products. In reality making the uneducated, rural and
economically backward people to understand the insurance concept is a challenging task.
Insurers may succeed if they know the attitude of uninsured and develop separate strategies
for them. Marketing activities of life insurance companies is all about to inform, bringing
awareness, develop belief, to form positive attitude, to reinforce trust etc. in the minds of the
consumers by using tools such as advertising, public relations, displays, word of mouth, sales
promotion, personal selling etc. This research has been analysed with 250 respondents. So the
Insurers may form positive attitude or may cause negative attitude so knowing the feelings of
respondents found essential. Today customers are more informed with number of options;
even still majority of the population in India is still uninsured or in some cases trusts only
LIC. hence the article founds that the duty of all insurers is to study the attitudes of people
towards life insurance to reinforce trust and to change the attitude in the customers.
Upadhyay (2013) identified that the present era is paving its way through the fast emerging
competitive scenario in the investment in insurance sector. And finance industry and its
rapidly progressing towards the universal policy holder, i.e., protection based. The study is
based on 250 samples. This study is presented in policyholder’s protection in insurance and
risk management sector. It highlights the policyholders’ protection in insurance sector and
finance society. And policyholders’ perception regarding the insurance sector and the
problem being has been faced by them. This study found an effort is made to remove the
wrong perceptions. The overall analysis is the whole protection of the every policy holder
which is invests in the insurance. bonus facilities and attractive services.this helps to satisfy
the customers.
Ahmed and Kwatra (2013) investigated that aims at evaluating the quality of insurance
services in India through customers’ assessment, with the objective of finding how this can
be used to boost the demand for insurance which is presently low in India. This study is based
on 100 samples. Questionnaire was administered to wide spectrum of insurance customers
who had insurance policies in India, in order to gather information related to their perception
of quality. Descriptive analysis such as percentage and table presentations was used to
analyze the collected data. The study revealed among other things that prompt claim
settlements is the most important factor considered by the customers of insurance companies
in India in their evaluation and measurement of quality of the policies they are holding. The
study found that the culture of delay in premium payment should be reduced so, customer can
be satisfied and business can be well improved.
Khan (2013) observed that consumer satisfaction is always a question mark in minds of
sellers as it is very difficult to find that what exactly consumer want from the seller.
Customer satisfaction is one of the most important issues in marketing field from beginning
and its play a crucial role in firm profit maximization. Study collect data from 150 policy
holders of different insurance companies of india on systematic random sampling method. A
structured questionnaire used to collect data from the respondents. This study founds the
satisfaction and perception of the customer.

Sridevi (2012) stated that to study the buyer perception regarding life insurance policies in
the rural area of Perambalur district. Perambalur, being one of the agricultural districts in
Tamil Nadu was chosen for the study. The results of the study are based on a field survey of
150 respondents by using purposive sampling technique. India is a country where the average
selling of life insurance policies is still lower than many western and Asian countries; with
the second largest population in world the Indian insurance market is looking very
prospective to many multinational and Indian insurance companies for expanding their
business and market share. Before the opening of Indian market for Multinational Insurance
Companies, Life Insurance Corporation (LIC) was the only company which dealt in Life
Insurance and after opening of this sector to other private companies, all the world leaders of
life insurance has started their operation in India. With their world market experience and
network, these companies have offered many good schemes to lure all type of Indian
consumers but unfortunately failed to get the major share of market. Still the LIC is the
biggest player in the life insurance market with approx 65% market share. The study found
the factors which plays a major role in buying perception of consumers towards life insurance
policies in Perambalur area.
CONCLUSION
The review of literature shows that customer awareness and perception towards LIC
Plays major role in the insurance industry. This study helps the Company to improve their
needs and satisfaction of the customer. The overall analysis is the whole protection of the
every policy holder which is invests in the insurance. Questionnaire was administered to wide
spectrum of insurance customers who had insurance policies in LIC. The next chapter deals
with the analysis and interpretation with the help of percentage analysis.
ANALYSIS AND INTERPRETATION

Insurance is a customer oriented service industry and Insurance industry find that the
business depends on policy holder service perception and their satisfaction of the customer.
This insists them to increase customer awareness and build better perception from the point
of customers. The study among LIC industry, aimed at identifying customer awareness and
perception which lead to relationship between and developing a conceptual framework of
relationship marketing practice of insurance by capturing the perspectives of customer with
the respect to their satisfaction the various services. It is also sought to identify whether
demographics have a role to play in a customer awareness and perception which brings
customer satisfaction. This chapter III comprises of analysis and interpretation of data
collected through primary data with a properly designed questionnaire on customer
awareness and perception towards LIC. Analysis means the critical examination of assembled
and grouped data for studying the characteristics of object understudy and for determining the
pattern of customer awareness and perception.

A structured questionnaire was distributed to the policy holders of LIC . the questionnaire
consists of demographic factors, expectation on investment alternatives, schemes, awareness,
formalities, perception about LIC, technological capability, advertisement, and overall
satisfaction with insurance policies

The procedure for data analysis is essential to interpret the result obtained .The questionnaire
covered many question including demographic character gender, period of age, various other
aspects of customer awareness and perception towards LIC. In total 100 were collected and
an analysis was done on the same. The analysis shows the chapter with the charts and tables.

Data being collected was scrutinized with the help of excel sheet and percentage method and
diagrammatic representation was made by the way of pie diagram and multiple bar diagram
.through the analysis and the findings made through the study, suggestions were given in
order to improve customer awareness and perception on LIC.
TABLE 3.1: DISTRIBUTION OF RESPONDENTS BASED ON
GENDER.

PARTICULARS FREQUENCY PERCENTAGE %

Male 60 60
Female 40 40
Total 100 100

FIGURE 3.1

Male Female

40%

60%

SOURCE : PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.1 given above indicates that 60% were
males and 40% were females.
TABLE 3.2: DISTRIBUTION OF RESPONDENTS BASED ON AGE.

AGE NO.OF. RESPONDENTS PERCENTAGE

%
Below30 61 61
31-40 Years 9 9
42-50 Years 9 9
51-60 Years 14 14
Above 60 years 7 7

FIGURE 3.2

AGE
7%

14% Below30
31-40 Years
42-50 Years
9%
51-60 Years
61% Above 60 years
9%

SOURCE : PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.2 61% were below 30 years of age,9%
were between 31-40 years of age,9% were 42-50 years of age,14% were 51-60
years of age, and 7% were above 60 years, which describes that LIC policies
have got maximum faith among youth.
TABLE 3.3: DISTRIBUTION OF RESPONDENTS BASED ON
OCCUPATION

PARTICULAR FREQUENCY PERCENTAGE %

Student 34 34
Self employed 12 12
Service 40 40
Others 14 14
Total 100 100

FIGURE 3.3

OCCUPATION
14%

34%
Student
Self employed
Service
Others
40%
12%

SOURCE : PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.3, 34 % were students, 40% were from
service class, 12% were self employed and 14 % were from other category,
which clearly indicates the liking of the service class people in LIC policies and
services.
TABLE 3.4: DISTRIBUTION OF RESPONDENTS BASED ON
QUALIFICATION
PARTICULARS FREQUENCY PERCENTAGE %
Under graduate 41 41
Post graduate 25 25
Graduate 28 28
Doctorate 6 6
Total 100 100

FIGURE 3.4

EDUCATION QUALIFICATION

6%

Under graduate
28% 41%
Post graduate
graduate
Doctorate
25%

SOURCE : PRIMARY DATA

INTERPRETATION:

According to the Table and figure 3.4, 41% were undergraduate, 28% were
graduate, 25% were post graduate and 6 % were doctorate, which clearly
indicates the liking of the educated sectors towards LIC policies.
TABLE 3.5: DISTRIBUTION OF RESPONDENTS BASED ON INCOME

PARTICULAR FREQUENCY PERCENTAGE %

Below 1lacs 15 15
1-5 lacs 9 9
5-10 lacs 52 52
Above 10 lacs 24 24
Total 100 100

FIGURE 3.5

INCOME
15%
24%

9% BELOW 1 LAKHS
1-5 LAKHS
5-10 LAKHS
ABOVE 10 LAKHS

52%

SOURCE : PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.5 , 15% were having income below 1 lacs,
9% were having income between 1-5 lacs, 52% had income range of 5-10 Lac
and 24% were having income above 10 lacs, which clearly defines the hold of
LIC among the largest segment i.e. average middle class
TABLE 3.6: DISTRIBUTION OF RESPONDENTS BASED ON
PERIODICITY OF POLICY.

PARTICULAR FREQUENCY PERCENTAGE %

5 years 20 20
5-15 years 40 40
15-25 years 30 30
Above 25 years 10 10
Total 100 100

FIGURE 3.6

PERIODICITY OF THE POLICY

10%
20%
5 years
5-15 years
30%
15-25 years
Above 25 years
40%

SOURCE : PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.6, 20% like policy of 5 years, 40% liked
policies ranging from 5-15 years, 30% liked in the range of 15-25 years and rest
10% liked policies of above 25 years.
 TABLE 3.7: NUMBER OF POLICIES PURCHASED

PARTICULAR FREQUENCY PERCENTAGE %

One 72 72
Two 19 19
More than two 9 9
Total 100 100

FIGURE 3.7

NUMBER OF POLICIES BOUGHT

72

19
9

One two More than one

SOURCE : PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.7, 72% were having one policy of LIC,
19% had two policies and 9 % more than two, which clearly defines the faith of
the people towards LIC policies.
TABLE 3.8: TERM OF PAYMENT.

PARTICULAR FREQUENCY PERCENTAGE %

Monthly 46 46
Half yearly 26 26
Quarterly 13 13
Yearly 15 15
Total 100 100

FIGURE 3.8

TERM OF POLICY

46

26
13 15

MONTHLY QUARTERLY HALF YEARLY YEARLY

SOURCE :PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.8, 46% have opted for monthly payments,
13% opted for quarterly payment, 26% opted for half-yearly payment and 15%
opted for yearly payments of the premium.
 TABLE 3.9:TYPE OF POLICY.

PARTICULAR FREQUENCY PERCENTAGE%

Whole life 29 29
Endowment 11 11
Money back 35 35
Pension fund 25 25
ULIP 0 0
Total 100 100

FIGURE 3.9

TYPE OF POLICY

35
29
25

11

0
Whole life Endowment Money back Pension fund ULIP

SOURCE : PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.9, 29% have invested in Whole life, 11%
in endowment plus, 35% in Money back, 25% in Pension fund and no one
invested in unit linked insurance policies. Its an alarming signal for LIC to
concentrate on policies and make more lucrative for customers, which comes
under ULIP .
TABLE 3.10: PREFERENCE OF EXPECTATION ON INVESTMENT.

PARTICULAR Highly Important Neutral Least Not important

important important
SAFETY 40 25 25 10 0
Capital growth 35 29 24 12 0
Liquidity 15 46 29 7 3
Return 20 35 42 3 0
Tax benefit 44 23 19 12 2
Brand name 29 32 15 14 10
SOURCE: PRIMARY DATA

INTERPRETATION :

From the above Table and Figure 3.10 one can say 65% of respondents states that expect
safety is important for investing in life insurance policy, while 10% of respondents were least
important about the safety as factor for investment and 25% were in a dilemma situation to
answer this question.

The above table depicts that 64% of respondents states that CAPITAL GROWTH is
important for investing in life insurance policy, were as 12% of respondents were least
important about the capital growth as factor and 24% of respondents are in dilemma situation
between other two alternatives.

With the reference to above out of 100respondents 61% states that LIQUIDITY is important
while investing in life insurance policy were as 10% of respondents are not considering the
tax benefit as a important factor and 29% were in a dilemma situation to answer the question.

The above table represents that out of 100respondents 55% states that RETURN is important
for investing in life policies were only 3% of respondents is least important towards return as
factor and 29% of respondents are neutral .so LIC has to concentrate on the return.

The above table shows 67% of respondents states that TAX BENEFIT is important factor to
invest in life policies were as 14% of respondents are not considering tax benefit as important
factor and 19% are in dilemma situation to answer this question. The above table express
61% of respondent states that BRAND NAME is important to in life insurance policies while
24% of respondents says brand name is not important and 15% of respondents are neutral.
TABLE 3.11 :FACTORS CONSIDERED AT THE TIME OF BUYING POLICY.

Particulars highly important neutral least not important

important important
Premium 64 15 13 8 0
Charges 25 23 42 4 6
Policy term 34 25 21 15 5
Rider benefit 54 25 17 4 0
Bonus and 60 22 15 3 0
interest
SOURCE : PRIMARY DATA

INTERPRETATION:

The above Table 3.11 depicts that 69% of respondents states that PREMIUM is important
while purchasing life policies, were as 8% of respondents are not important towards the
premium and 13% are in dilemma situation.

From the above table one can say 48% of respondents states CHARGES is important were as
10% of respondents are not important about charges in life policies and 42% are neutral.

With reference to the above table 59% of respondents states POLICY TERM is important
while purchasing life policy were as 20% of respondents are not important to policy term and
20% is neutral.

The above table exhibits that 79% of respondents states that RIDER BENEFIT is important
while acquiring life policy were as 4% are not important with the rider benefit and 17% is
neutral about this purchase.

The above table represent that 82% of respondents states that BONUS AND INTEREST is
important while purchasing the life insurance products while 3% is not important to the bonus
and interest and 15% is neutral.
3.12: ADVERTISEMENT RELATING TO LIFE INSURANCE
CORPORATION .

Particulars Strongly Agree Neutral Disagree Strongly

agree disagree
Understandable 60 30 10 0 0
Informative 50 20 10 20 0
Attractive 30 40 30 0 0

SOURCE: PRIMARY DATA

INTERPRETATION:

The above Table 3.12 depicts that out of 100 respondents 90% agree with advertisement
relating to LIC is understandable but no respondents disagree the understandable statement
relating to advertisement and 10% of respondents are in dilemma situation to answer this
question.

With the reference to above table 70% of respondents states that advertisement relating to
LIC is informative were as 20% disagree towards the information relating to LIC and 10% of
respondents are in dilemma situation.

The above table shows 70% of respondents agree with the attraction towards advertisement
relating to LIC were as no respondents disagree with this statement but 30% of respondents
are in a dilemma situation between two alternatives.
 TABLE 3.13: TECHNOLOGY TO SERVE CUSTOMER IS EFFECTIVE IN
COMPUTERISATION

Particulars Frequency Percentage

Strongly agree 35 35
Agree 15 15
Neutral 20 20
Disagree 20 20
Strongly disagree 10 10
Total 100 100

FIGURE 3.13

EFFECTIVE IN COMPUTERISATION

35

20 20
15
10

Strongly Agree Neutral Disagree Strongly

agree disagree

SOURCE: PRIMARY DATA.

INTERPRETATION:

According to the Table and Figure 3.13, 35% strongly agreed, 15% agreed, 20% were
neutral, 20% disagree and 10 % strongly disagree that the LIC agents/employees provides
information/details about services and innovation on regular basis with the help of
computerisation.
 TABLE 3.14:LIFE INSURANCE CORPORATION HAVE COMPLEX
FORMALITIES.

PARTICULAR FREQUENCY PERCENTAGE

%
Strongly agree 20 20
Agree 15 15
Neutral 30 30
Disagree 25 25
Strongly 10 10
disagree
Total 100 100

FIGURE 3.14

LIC HAVE COMPLEX FORMALITIES

30
25
20
15
10

Strongly agree Agree Neutral Disagree Strongly

disagree

SOURCE: PRIMARY DATA.

INTERPRETATION:

According to the Table and Figure 3.14, 35% were satisfied by the grievance redressal
mechanism of LIC, whereas 30% were neither agree nor disagree with the redressal
mechanism and 35% were not at all satisfied.
 TABLE 3.15:LIC AGENTS PROVIDE CORRECT INFORMATION.

PARTICULARS FREQUENCY PERCENTAGE

Strongly agree 11 11
Agree 71 71
Neutral 18 18
Disagree 0 0
Strongly disagree 0 0
Total 100 100

FIGURE 3.15

AGENTS PROVIDE CORRECT INFORMATION

71

18
11
0 0
Strongly Agree Neutral Disagree Strongly
agree disagree

SOURCE: PRIMARY DATA.

INTERPRETATION:

According to the Table and Figure 3.15, 82% said that the agents provides the correct
information regarding the policies and services offered by LIC where as 18% said no as they
were not given clear information by the agents. LIC should impart training regarding Ethics
and moral value which agents have to follow.
 Table 3.16 : PREFERENCE OF PURCHASING NEW POLCY IN FUTURE IN LIC

PARTICULARS FREQUENCY PERCENTAGE %

Strongly agree 23 23
Agree 64 64
Neutral 9 9
Disagree 4 4
Strongly disagree 0 0
Total 100 100

FIGURE 3.16

PREFERENCE OF LIC TO BUY IN FUTURE

64

23

9
4
0

Strongly Agree Neutral Disagree Strongly

agree disagree

SOURCE : PRIMARY DATA.

INTERPRETATION:

According to the Table and Figure 3.16, 87% said that if they will buy new policy they will
definitely go with LIC only 4% said no regarding further investment with LIC. And 9% are in
a dilemma situation whether to buy a new policy in future.
TABLE 3.17 WOULD YOU LIKE RIDERS OF LIFE INSURANCE CORPORATION.

PARTICULARS FREQUENCY PERCENTAGE %

Strongly agree 15 15
Agree 45 45
Neutral 22 22
Disagree 17 17
Strongly disagree 0 0
Total 100 100

FIGURE 3.17

LIKE RIDERS OF LIC

45

22
15 17

0
Strongly Agree Neutral Disagree Strongly
agree disagree

SOURCE : PRIMARY DATA.

INTERPRETATION:

According to the Table and Figure 3.17, 60% were agreed and satisfied with the riders of
LIC.22% neither agree nor disagree with the riders, and 17% of respondents are not agree
with these riders.
 TABLE 3.18 SATISFACTION WITH LIFE POLICY.

PARTICULARS FREQUENCY PERCENTAGE %

Strongly agree 54 54
Agree 35 35
Neutral 11 11
Disagree 0 0
Strongly disagree 0 0
Total 100 100

FIGURE 3.18

SATISFACTION WITH LIFE POLICY

60
50
40
30
20
10
0
Strongly Agree Neutral Disagree Strongly
agree disagree
satisfaction level

SOURCE : PRIMARY DATA.

INTERPRETATION:

According to the Table and Figure 3.18,89% respondents agree with the life policies, while
11% respondents were in dilemma situation whether to agree or disagree the life policies.
 TABLE 3.19 SATISFACTION WITH PENSION POLICY.

PARTICULARS FREQUENCY PERCENTAGE

Strongly agree 39 39
Agree 25 25
Neutral 28 28
Disagree 8 8
Strongly disagree 0 0
Total 100 100

FIGURE 3.19

SATISFACTION WITH PENSION POLICY

39
28
25

8
0
Strongly Agree Neutral Disagree Strongly
agree disagree

SOURCE :PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.19,64% respondents agree with the pension

policy, 28% neither agree nor disagree with the pension policy and 8% not agree

with this policy. This shows insurance industry should concentrate on these policies.
 TABLE 3.20 PERCEPTION ABOUT LIFE INSURANCE CORPORATION.

PARTICULARS FREQUENCY PERCENTAGE %

Strongly agree 42 42
Agree 54 54
Neutral 4 4
Disagree 0 0
Strongly disagree 0 0
Total 100 100

FIGURE : 3.20

PERCEPTION ABOUT LIC

54
42

4
0
0
Strongly
Agree
agree Neutral
Disagree
Strongly
disagree

SOURCE :PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.20, 96% agree about the good perception on LIC and
none of the respondents disagree about perception on LIC while 4% of the respondents are in
a dilemma situation to answer the question.
 TABLE 3.21 GREVIENCE REDRESSAL MECHANISM.

PARTICULARS FREQUENCY PERCENTAGE %

Strongly agree 23 23
Agree 59 59
Neutral 10 10
Disagree 8 8
Strongly disagree 0 0
Total 100 100
.

FIGURE :3.21

GREVIENCE REDRESSAL MECHANISM

59

23
10 8
0
Strongly agree Agree Neutral Disagree Strongly
disagree

SOURCE :PRIMARY DATA

INTERPRETATION:

According to the Table and Figure 3.21, 82% were agree with the grievance redressal
mechanism of LIC, whereas 10% were neutral and 8% were not at all agree with the
redressal mechanism.
 TABLE 3.22 SATISFACTION LEVEL OF LIFE INSURANCE CORPORATION.

PARTICULARS FREQUENCY PERCENTAGE

Strongly agree 22 22
Agree 65 65
Neutral 13 13
Disagree 0 0
Strongly disagree 0 0
Total 100 100

Figure 3.22

SATISFACTION
65
LEVEL ON LIC

22
13

0 0

Strongly Agree Neutral Disagree Strongly

agree disagree

SOURCE : PRIMARY DATA.

INTERPRETATION

According to the Table and Figure 3.22, 87 % were agreed by the LIC policies and services
rest 13 % were neither agree nor disagree with satisfaction Level of LIC.
Life insurance companies deal with human life values. The risk in life insurance is measured
in terms of monetary value. Insurance is defined as a contract wherein one party (insurer)
agrees to pay the other party (insured) or his beneficiary, a certain sum upon a given
contingency against which insurance is required. Hence insurance can be defined as a tool in
which a sum of money as a premium is paid by the insured in consideration of the insurer’s
bearing the risk of paying a large sum.

The importance of Insurance industry is to command on massive funds through sales of

insurance products to large number of clients. In case of death the settlement is easy. As
there is a nomination facility, the heirs can collect the money immediately. The tax benefit is
available for the customer. Life insurance perpetuates life, liberty and the pursuit of
happiness. The present study aims to measure customers’ perception towards life insurance
service quality by applying a framework developed by them.

As the research done by various scholars it revealed that government should come out with a
policy, where the public can be made to contribute to a life insurance scheme to ensure
unnecessary events and also better utilization of life insurance facilities. It is founded that
LIC has been involved in adopting various strategies to develop the customer awareness
about the products as well as the need and requirements of the customers in the selection of
different life insurance policies.

The present study has been undertaken to analyse the customer awareness and perception
towards LIC. The study is primarily based on the primary data. The required primary data
were collected from the customers of LIC by distributing questionnaire with sample size of
100.

This study is restricted to the urban population only. Insurance Companies, both private and
public were unwilling to disclose any information apart from those available on the websites.
It was very difficult to get information regarding details of policies and financial statements
of public sector LIC . Due to high migration of employees of private sector Life Insurance
Companies from one company to the other they are reluctant to divulge details of company’s
policies and programmes. The sample size chosen for the questionnaire was only 100 and that
may not represent the true picture of the consumer perception about the Life Insurance sector.
The sample was on the basis of convenient random sampling.
To examine the perception of the customer, To know the satisfaction level of customer.
To study the needs of the customer. The result of this research would help the Life insurance
company to have a better understanding about the consumer’s Awareness and perception
towards life insurance products offered by LIC of India. The study helps the LIC of India to
focus the consumer’s preferences and expectations on the product which they offer.
The study reveals the perception, the needs and satisfaction of the LIC customer. Over the
years the awareness level of the customers increased and they feel that it provides security
and safety for their investment. The study also shows that customers’ interest for LIC
products is satisfactory.
Data being collected was scrutinized with the help of excel sheet and percentage method and
diagrammatic representation was made by the way of pie diagram and multiple bar diagram
.through the analysis and the findings made through the study, suggestions were given in
order to improve customer awareness and perception on LIC.

FINDINGS
 The study shows that majority of 60% respondents are male, as majority
Of respondents are male.
 Age of respondents plays a major role in customer awareness and perception in
insurance industry the study shows that majority of 61% of respondents belongs to
below 30 years.
 The study presents majority 40% of respondents are in service industry.
 Study reveals majority 41% of respondents is undergraduate policy holders
 The Study depicts majority of 52%respondents under the income of 5-10 lacs
 Study exhibits majority of 40% respondents are 5-15 years periodicity of the policy.
 Study identify majority of 72% of respondents acquired one policy.
 The study represents majority of 46% respondents have opted monthly payments.
 The study visualize majority of 35% of respondents acquire money back policy.
 The study gives majority of 65% of respondents expects safety while investing, were
as 55% of respondents says return is important and 67% of respondents says tax
benefit is important and 61% says brand name is important.
 The study portray majority of 69% of respondents says while purchasing the life
policy premium is important were as 48% of respondents says charges is important
 while 59% of respondents says policy term is important were as 79% of respondents
says rider benefit is important at the time of purchasing life insurance policy.
 The study envision that majority of 90% of respondents agree with the advertisement
relating to LIC were as 70% of respondents agree with the advertisement relating to
LIC is informative, and 70% of respondent agree with the attraction towards LIC.
 The study shows majority of 50% of respondents agree with the computerisation in
technology.
 The study exhibits majority of 65% of respondents are not agreed with the statement
that LIC has complex formalities.
 The study says that 82% of respondents says LIC provides correct information.
 The study reveals 87% of respondents prefer to buy LIC products in further.
 The study identify 60% of respondents agree with the LIC’s riders.
 The study visualizes 46% of respondents satisfied with the LIC policy.
 The study envision 64% of respondents satisfied with the LIC’S pension policy.
 The study represent 96% of respondents perception is good towards LIC.
 The study give that 92% of respondents agree with the redressal mechanism of LIC.

SUGGESSIONS

 Customers are expected the insurance prospect in order to know LIC’S procedure.
 Customer queries should opened in order to avoid mistake.
 The LIC should provide good environment to customer with branches and sub-
branches for their convenience.
 LIC should provide effective communication through network.
 LIC’s premium rate and interest should be informed to the customer through mobile.
 LIC has to increase the level of insurance penetration LIC may focus on bringing
products that suit to the rural customers.
 LIC should keep a check that its agents equally promote all its products.
 People becoming more aware and demanding so there is scope for a whole lot
of innovative products.
CONCLUSION

Insurance is a tool by which fatalities of a small number are compensated out of funds
collected from plenteous. Insurance is a safeguard against uncertain events that may occur in
the future. Company image is the highly important criteria that consumers consider before
taking up a life insurance. This is mainly because people expect safety and secure for their
money which they invest, followed by the factor Premium which we pay to the insurer and
then Bonus and Interest paid by the company, services etc

LIC dominates the Indian insurance industry. In today’s competitive world, customer
satisfaction has become an important aspect to retain the customers, not only to grow but also
to serve. Increased competition, wide range of product offerings and multiple distribution
channels cause companies to value satisfied and highly profitable customers. Customer
service is the critical success factor in a company and providing top notch customer service
differentiates great customer service from indifferent customer service.

The entry of private sector insurance companies into the Indian insurance sector triggered off
a series of changes in the industry. Even with the stiff competition in the market place, it is
evident from the study that products offered by the LIC are creative, innovative and of the
liking of the customers, moreover they are satisfied by the true knowledge provided by the
company or agents and they are easily accessible, Flexible payment schemes with no hidden
cost, there is no undue delay in claims settlement, customers are highly satisfied by the
grievance redressal mechanism, and in the near future if they will go for the policy they will
stuck to LIC of India, which shows the great faith and positive perception of the customers
towards LIC of India.
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 DR. J. ARULSURESH. EMPIRICAL STUDY ON SATISFACTION OF THE

POLICYHOLDERS TOWARDS THE SERVICES PROVIDED BY LIC OF INDIA I

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 WEBSITES

 www.licindia.com
 www.google.co.in/indian insurance industry
 www.irdaindia.org
 www.towerwatson.com
 www.citehr.com
 www.scribd.com
 www.google.com
 Data on Indian Insurance from http://www.irdaindia.org