2018

“STUDY THE FACTOR

AFFECTING BUYING
BEHAVIOUR OF
CONSUMER TOWARDS
LIFE INSURANCE IN
AHMEDABAD CITY”

KIRAN RAMCHANDANI-(201700620010267)
MOOLRAJ MODHVADIYA-(201700620010257)

IDBI FEDERAL LIFE INSURANCE |

 A Project Report

On

“STUDY THE FACTOR AFFECTING BUYING BEHAVIOUR OF CONSUMER

TOWARDS LIFE INSURANCE IN AHMEDABAD CITY”

At

IDBI FEDERAL LIFE INSURANCE

In partial fulfilment of the requirements of Summer Internship Programme in the Masters of

Business Administration programme at GLS University

Submitted to

Faculty of Management

Under the Guidance of

(Prof.Apeksha Champaneri) (Darshan Shah- Branch Head)

(Professor) (Shanthi Yagyanath- Senior

Branch Manager)

By

Kiran Ramchandani-(201700620010267)

Moolraj Modhvadiya-(201700620010257)

Batch 2017-2019

i
 o Company Certificate

o Institute Certificate

Faculty of Management *
Certificate

This is to certify that Ms. Kiran Ramchandani Enrolment No. 201700620010267, student
of faculty of management has successfully completed his/her Summer Project on “TO STUDY
THE FACTOR AFFECTING BUYING BEHAVIOUR OF CONSUMER TOWARDS
LIFE INSURANCE IN AHMEDABAD CITY” at “IDBI federal life insurance Co Ltd”
in partial fulfilment of the requirements of MBA programme of GLS University. This is his
original work and has not been submitted elsewhere.

_______________ ____________________
Internal Guide Name &
Dean Designation

Date: _________________

Place: _________________

ii
 Faculty of Management
Certificate

This is to certify that Mr. Moolraj Modhvadiya Enrolment No. 201700620010257,

student of faculty of management has successfully completed his/her Summer Project
on “TO STUDY THE FACTOR AFFECTING BUYING BEHAVIOUR OF
CONSUMER TOWARDS LIFE INSURANCE IN AHMEDABAD CITY” at
“IDBI federal life insurance Co Ltd” in partial fulfilment of the requirements of
MBA programme of GLS University. This is his original work and has not been
submitted elsewhere.

_______________ ____________________
Internal Guide Name &
Dean Designation

Date: _________________

Place: _________________

iii
 Declaration

We, Mr. Moolraj Modhvadiya (201700620010257) and Ms. Kiran Ramchandani

(201700620010267) students of Faculty of Management hereby declare that we have
successfully completed this project on TO STUDY THE FACTOR AFFECTING BUYING
BEHAVIOUR OF CONSUMER TOWARDS LIFE INSURANCE IN AHMEDABAD
CITY ‘in the academic year 2017-18.

We declare that this submitted work is done by us and to the best of our knowledge; no such
work has been submitted by any other person for the award of degree or diploma.

We also declare that all the information collected from various secondary and primary sources
has been duly acknowledged in this project report.

Kiran Ramchandani Moolraj Modhvadiya

(enrolment no)

iv
 PREFACE

“An investment in knowledge pays the best interest”

This proverb plays a guiding role in the curriculum of “MBA‟ programme of “GLS
University”. Since, only theoretical knowledge does not impart complete education, it is
necessary that practical exposure should be accompanied to add meaning to education. Projects
hereby play the most important part in providing the practical knowledge.

So as part of the course curriculum as prescribed by the GLS University, for the 1st Year
students of Masters of Business Administration program, We have prepared and submitted a
Summer Internship project report which involves primary data collection and research “TO
STUDY THE FACTOR AFFECTING BUYING BEHAVIOUR OF CONSUMER
TOWARDS LIFE INSURANCE IN AHMEDABAD CITY”

The main objective was to study and analyze the factors considered by the consumers before
buying the life insurance policies. The preparation of this project report is based on facts &
findings noted during the primary data collection i.e. things noted while filling the
questionnaire.

v
 ACKNOWLEDGEMENT

In preparation of this report we feel great pleasure because it gave us extensive practical
knowledge in our career. We got idea about Indian life insurance industry and consumer
perception about insurance by this project. We express our deep sense of gratitude of our
company guide MR. DARSHAN SHAH, branch head and MRS. SHANTHI
YAGYANATH, senior branch head for their valuable guidance during our project work .We
would also like to thank all the staff of IDBI Federal life insurance who guided us directly or
indirectly to complete our training project.

We are thankful to MRS. APEKSHA CHAMPANERI (faculty guide, GLS Institute of

Management, Ahmedabad) for valuable inspiration and guidance provided to us throughout
this project. We would like to take opportunity to express our gratitude towards all of them
who have contributed directly or indirectly in our project work.

At last we would like to extend our deep sense of gratitude to my friends, faculties and each
individual who directly and indirectly help me during the project work.

Thanking you.

Moolraj and Kiran.

vi
 EXECUTIVE SUMMARY

The project “TO STUDY THE FACTOR AFFECTING BUYING BEHAVIOUR OF

CONSUMER TOWARDS LIFE INSURANCE IN AHMEDABAD CITY” is undertaken
under the guidance of Mr. Darshan Shah (branch head) and Mrs. Shanthi Yagyanath
(senior branch head).

Our summer internship helped us a lot to get the feel about the real corporate world. As
a wealthsurance advisor our first task was to understand the basic behaviour of the
consumer in order to manipulate the market according to our target competition. We
also developed a questionnaire and did the survey in AHMEDABAD city.

This training also helped us a lot in understanding the process of building effective
marketing channels for life insurance products by establishing network of life insurance
advisors and also how the life insurance business is run.

The success story of good market share of different market organizations depends upon
the availability of the product and services near to the customer, which can be
distributed through a distribution channel. In Insurance sector, distribution channel
includes only agents/advisors or agency holders of the company. If a company has
adequate agents in the market, they can capture big market as compared to the other
companies.

vii
 INDEX

S.R No. CONTENT Pg. No.

CHAPTER 1 Research Methodology 1

1.1 Literature Review 2

1.2 Objectives of the study 7

1.3 Scope of the study 7

1.4 Research Design 7

1.5 Sampling 8

1.6 Data Collection Sources 9

1.7 Beneficiaries of the Study 9

1.8 Limitations of the Study 9

CHAPTER 2 Industry Profile 10

2.1 Brief History of Insurance 11

2.2 History of Insurance in India 12

2.3 Present Scenario of the Insurance Sector 12

2.4 Importance of Insurance 16

2.5 The Beginnings of Life Insurance 17

2.6 Kind of Life Insurance Policies 19

2.7 Advantages of Life Insurance 21

2.8 PESTLE ANALYSIS 22

CHAPTER 3 Company Profile 26

3.1 History 27

viii
 3.2 SWOT ANALYSIS 31

CHAPTER 4 Introduction to the topic 33

CHAPTER 5 Analysis & Interpretation 44

5.1 Primary analysis 45

5.2 Secondary analysis 61

5.3 One way anova 66

5.4 Hypothesis analysis 68

CHAPTER 6 FINDINGS 72

CHAPTER 7 RECOMMENDATIONS 74

CHAPTER 8 CONCLUSION 76

Bibliography 78

Annexures 81

ix
 Table of Charts

S.R. No. CONTENT Pg. No.

1 WHY LIFE INSURANCE 18

2 What term of investment do you prefer? 45

3 Which is the best form of investment? 46

4 Do you have Life insurance policy? 47

5 For how many years do you have the life 48

insurance policy?
6 What is the reason for not having life insurance 49
policy?
7 Among the following which life insurance 50
company would you prefer to buy/have bought
the policies?
8 At which interval would you prefer to pay the 51
premium?
9 How will you prefer to buy life insurance 52
policy?
10 Which is the most important reason to buy a life 53
insurance policy?
11 What kind of insurance policy/plan you would 54
prefer to purchase?
12 Do you feel private insurance companies are 55
more efficient and responsive then public
companies.
13 Gender 56

14 Age 57

15 Occupation 58

16 Annual Income 59

x
17 Age * What term of investment do you prefer? 61
Cross tabulation
18 Occupation * which is the best form of 62
investment? Cross tabulation
19 Occupation * At which interval would you 64
prefer to pay the premium? Cross tabulation
20 Age * How will you prefer to buy life insurance 65
policy? Cross tabulation
21 One way anova 66

22 HYPOTHESIS ANALYSIS 68

xi
 Table of Graph

S.R. No. CONTENT Pg. No.

1 Market share of Different Companies 15

2 What term of investment do you prefer? 45

3 Which is the best form of investment? 46

4 Do you have Life insurance policy? 47

5 For how many years do you have the life insurance 48

policy?
6 What is the reason for not having life insurance 49
policy?
7 Among the following which life insurance company 50
would you prefer to buy/have bought the policies?
8 At which interval would you prefer to pay the 52
premium?
9 How will you prefer to buy life insurance policy? 53

10 How will you prefer to buy life insurance policy? 54

11 What kind of insurance policy/plan you would prefer 55

to purchase?
12 Do you feel private insurance companies are more 56
efficient and responsive then public companies.
13 Gender 57

14 Age 58

15 Occupation 59

16 Annual Income 60

xii
Chapter 1: Research Methodology

1
1. Literature Review

1) An Empirical Analysis of Life Insurance Industry in India.

(BEDI & SINGH, 2011)The research was conducted in Punjab, India. The objective
was to analyse the overall performance of Life Insurance Industry of India between pre-
and post-economic reform era. There was a tremendous growth in the performance of
Indian Life Insurance industry and LIC due to the policy of LPG. Insurance industry
also improved a lot due to the emergence of Private sector and opening up for foreign
players. It was found that LPG was incorporating a positive influence on LIC of India
and its performance. Total investment of LIC rose from Rs 4587.7 crores in 1979 to Rs.
762891.7 crores in 2009. Proportion of premium collected by LIC out of total premium
collected by life insurance industry was declined from 97% in 2001-02 to 74% in 2007-
08. It indicated the increasing competition from private sector. ICICI prudential was.
Becoming a stronger and stronger player by taking over a lot of business of LIC due to
aggressive and flexible product range.

2) Life Insurance Industries in India: Trends and Patterns

(ARIF, 2015)The research was conducted in Lucknow, India. The study was carried
out to know the trends and pattern of life insurance industry in India. Insurance sector
play a very significant and vibrant role in the process of financial intermediaries. The
research basically talked about the establishment of Oriental Life Insurance
Corporation in Kolkata by Anita Bhavsar in 1818, was the starting point of present form
of life insurance business in India. On the recommendation of Malhotra committee,
Government of India established Insurance Regulatory and Development Authority
(IRDA) in April 2000, to regulate the insurance industry and also allow the entry of
private players in Indian insurance industry. Additionally, the comparison of market
shares of Private and Public sector companies has been compared. In India, still the
majority of the people remained uninsured so in order to tap the untapped market,
customized and innovative products and better facilities has been undertaken.

3) Consumer Satisfaction with Life Insurance: A Benchmarking Survey

(Allen, 1999)The research explored consumer satisfaction relevant to the purchase of
life insurance products and compared satisfaction in a broker or agent assisted
transaction with satisfaction when no broker or agent is used, direct placement. It was

2
 observed that purchasers who use the agent only are more satisfied with their insurance
company than purchasers who use both an agent and the direct purchase approach. The
lowest level of consumer satisfaction was for single premium and limited pay life
insurance. Term insurance, universal life, and whole life insurance have the highest levels
of consumer satisfaction, in that order.

4) Growth of ULIP Policies in Life Insurance Sector - A Comparative Study of

Traditional and ULIP Policies.
(Ravi Akula, 2011)The research was conducted in Nalgonda, India. The main objective
was based on the study of ULIP policies and its comparison to the traditional policies. Unit
Linked Insurance Plan (ULIP) provides for life insurance where the policy value at any
time varies according to the value of the underlying assets at the time. ULIP policies are
different to traditional policies as the investment of policyholders fund is not done in the
traditional policies where as in ULIPs the investments are done by allocating a certain limit
of percentage of policyholders fund in the market. ULIP policies provide the advantages of
life protection, disability, critical illness, death due to accident, additional features,
investment and savings, capital gains, mortality Charges, flexibility, adjustable life cover,
investment options, transparency, liquidity, tax Planning. Policy holders were getting long
term returns in ULIP.
5) Dynamics of Indian Insurance Industry – Role of Public and Private Players.
(R. Sridhar, 2013) The research was conducted in Hyderabad, India. The objective was
to analyse the role of both public and private players in the growth and expansion of
the industry and to identify the significance of these sectors in promoting the insurance
business in India. The share of public sector insurers is very less in number when
compared to that of the private sector. Within a decade after the deregulation of the
insurance sector, private players are able to dominate in the number in both life and
general insurance business. Though the public insurers are less in number when
compared to that of private insurers, still the public sector is dominating the industry
and it is evident from this that the people trust in public sector. In an intensely
competitive insurance market, differentiation through product innovation, servicing,
distribution mechanisms and innovative claims management practices is going to be
the only way for insurers to stand out from the crowd and maintain or improve their
market share and profitability. Only an out-of-the-box thinking by insurers will help
unleash the potential available under the insurance sector.

3
6) Determinants of Insurance Product Performance in India.
(Dr. Dharmendra Mistrya, 2015)The research was conducted in Gandhinagar, India.
The main objective of the research was undertaken with a view to give an insight into
the determining factors of maturity benefits of ULIP insurance products in India. It
investigated the determining factors of maturity benefits of three categories of ULIP
insurance products (i.e. ULIP endowment plans, ULIP wealth plans and ULIP child
plans) in India by finding the relationship between the maturity benefits and allocation
charge, mortality charge, policy admin charge and fund management charge. The
analysis used the data over the period of 5 years i.e. 2008 to 2012 which was obtained
from the published broachers & benefit illustrations of insurance products. The main
implications of the results of the present study were for investors and insurance
companies. Investors may decide about the suitable insurance products in which they
should invest to fulfil their financial needs.

7) Insurance awareness of India.

(Ganesh, 2015)The research was conducted in Shirur (Ka). The main objective was to
make awareness about the insurance in India. The insurance industry of India consists
of 52 insurance companies of which 24 are in life insurance business and 28 are non-
life insurers. It was observed that even among uninsured households, 60 per cent have
heard of life insurance. However, for health insurance, the level of awareness is much
lower since people tend to associate insurance with death. There is a lack of knowledge
to policyholders in terms that they don’t know that their policies could be cancelled
because of non-payment of premium. Though most know when they can claim their
policy amounts, and to some extent the procedure involved in claim settlement, they
have no idea about the time taken for a claim settlement or the amount they would
receive if the policy is surrendered before maturity.

8) An Empirical Study of Life Insurance Product and Services in Rural Areas.

(HARNAM SINGH, 2011) The research was conducted in Lucknow. The main
objective of this research was to examine the opportunities for insurers in the rural
market and what would be new strategies to tap the highly underinsured rural area. It
was found that in post-liberalized-era, government service men of 26-45 age group
population are more aware of buying insurance policy for several purposes. Mostly

4
 urban educated graduates or post graduate people purchase maximum risk cover plans
by insurance companies, as compared to others degree holders. Medium income group
population, who belongs to Rs. 100,000-300,000 income range buying more insurance
products as compared to other income groups in the study area. It was found, although
there were so many insurance distribution channels have grown like banks, financial
institutions, corporate agents etc. but even then insurance agents are dominating in case
of selling and distribution of insurance products. Government should more focus on
rural areas awareness by providing micro insurance products.

9) Lapsation in Life Insurance Policies.

(S. Subashini, 2015) the research was conducted in Tamil Nadu, India. The main
objective to understand the reasons for lapsation of life insurance policies from
policyholder’s perspective. The reason was that there exists miss-selling of the
products, financial burden to the policyholders and the premium rate was high. Policy
holders have to determine their policy and premium based in their income earning
potential. It was observed that lapsed policies have detrimental effect on risk pooling
and sharing. The insured would also be losing the benefits of returns from alternative
investments elsewhere. Even if the policy is surrendered, the insured would be bearing
the loss in the form of surrender charges.

10) Economic Reforms and World Economic Crisis: Changing Indian Life Insurance
market place.
(Jain, 2013)The research was conducted with an objective to analyse the condition of
life insurance industry and to study the impact of post 2008 economic crisis on
insurance industry in India, also an attempt to study the opportunities and challenges
for life Insurance in post liberalization area. In the post liberalization period, the life
insurance industry of India witnessed a marvellous growth but this growth was declined
after economic crisis are some of the major findings of study. It was studied that moving
from unit-linked to non- linked insurance policies is one of the major positive changes
in Indian life insurance sector. Development of insurance products including special
group policies to cater to different categories should be a priority, especially in rural
areas. Life insurers should streamline their grievance redressal machinery for efficient
and effective service. It is important to create trust and confidence among the investors
that private insurance is a safer option for investing.

5
11) Performance Evaluation of Life Insurance Corporation (LIC) of India.
(Nena, 2013)The research was conducted in Rajkot, India. The objective was to know the
growth and performance of LIC. Since four decades, LIC has been the major player with
virtual monopoly in the life insurance sector. Due to Privatization, LIC is now facing cut
throat competition with private players in the industry. After introduction of IRDA
(Insurance Regulatory & Development Authority), LIC has become more conscious for
their products. The components of expenses included Commission paid, Operating
Expenses, Investments 1 (Shareholders’), and Investments (Policyholders’) were being
studied. Among them, the investment (Policy holders’) has this second highest variance,
so investment (policyholders’) also need to reduce. Therefore, after Privatization, LIC need
to control the operating expenses to not to affect its income.

12) A Study of Buying Behaviour of Consumers towards Life Insurance Policies.

(Pandey, 2009)The research was conducted in Gwalior. The main objective was were
to evaluate the factors underlying consumer perception towards investment in life
insurance policies; and to compare the differences in consumer perception of male and
female consumers. The major influential factors were Consumer Loyalty, Service
Quality, Ease of Procedures, Satisfaction Level, Company Image, and Company-Client
Relationship. Therefore, the results found proving that there is no significant difference
between the perception of male and female investors towards investment in life
insurance policies.

13) Satisfaction of the Policy Holders Protection in Insurance Sector.

(Upadhyay, 2013)The research was conducted in Rajasthan, India. The objective was
policy holder’s protection in insurance and risk management sector. Therefore, the
target audience were the policyholders. Although LIC is a giant player in life insurance
business but private insurance companies are moving at a fast pace. Though the income,
size and penetration of private insurance companies is less when compared with LIC
but then also the pace with which they are raising their market share is tremendous.
Private insurance companies with its new innovative products and better customer
services are expanding their business and will certainly going to give a tough
competition to LIC. In order to protect the interest of the policyholders, many benefits

6
 are being explored of investing in insurance such as diversification, tax benefits, capital
growth and safe future to the traditional high interest savings account.

14) A study on the attitude of Consumers and Insurance A study on the attitude of
Consumers and Insurance Agents towards the proposed increase in Foreign
Direct Investment(FDI) in Insurance sector in India.
(Venkataramani.K, 2015)The research was conducted in Chennai, India. The main
objective was focus on the impact of FDI in insurance as perceived by the sample of the
study based on four dimensions namely economic impact, impact on service, benefits and
overall impact on market. The target audience consisted of customers and insurance agents
from selected insurance companies in Chennai. The study perceived that the better service
and more options in the product portfolios are the general expectations from the insurers.
Also, the customers welcome the government decision to increase the FDI cap in insurance.
The main objective was to rise the cap in FDI in insurance sector from 26% to 49%.
Therefore, there is an urgent need to infuse huge amount of capital into insurance by the
foreign insurance collaborators.

2. Objectives of the study

 To study the consumers influencing factors towards purchasing Life Insurance.

3. Scope of the study

The benefits of this study are:

 The reasons of buying the Life Insurance products
 Awareness about the life insurance products

4. Research Design

Descriptive research design would be used in this research. The study would be more
structured and formal in nature. The objective is to provide a comprehensive and detailed
explanation under the study. With descriptive study we would get answers to the questions
who, what, where, when, why and how.
 Observational: - defined as a method of viewing and recording the participants

7
  Case study: - defined as an in-depth study of an individual or group of individuals
 Survey: - defined as a brief interview or discussion with an individual about a
specific topic.

We are using Survey method for descriptive research.

5. Sampling

o Population

Population is entrepreneurs and salaried people of Ahmedabad.

o Sampling unit

Sampling units would be in the age group of 18 to 45 and above years in

Ahmedabad.

o Sample size

A sample of 201 customers is taken for the purpose of study.

o Sampling Method

Convenience Sampling is used for the purpose of the study.

o Research Instrument

Questionnaire (Online forms) is used in collecting the primary data.

o Research/Statistical Tools

SPSS and Excel 2013 software are used for data analysis.

o Hypothesis:

H0:- There is no association between factor considered while purchasing Life

Insurance and Income of the customer.
H1:- There is association between factor considered while purchasing Life
Insurance and Income of the customer.

6. Data Collection Sources

8
  Primary data:

o Online Questionnaires

 Secondary data:

o Journals and magazines.

o Product broachers

o Research papers

o Official website of the company, IRDAI, ibef.

7. Beneficiaries of Study

 Company: - Can know the preferences of the customer and make marketing
strategies according to the preferences of the customer to get better results.
 Investors: - The study would be helpful to the investors to understand the current
market situation and risk factor of investing in various plans.
 Advisors: - The study would be helpful to the Advisors to know more about the
customers’ attitude towards buying of the plans.
 Researcher: - The project will be initially useful to the researcher as fruit of their
study.

8. Limitation Of the study:

 The limitations of this study are:

 Lack of knowledge about the life insurance policies.
 Mind sets of people while filling the questionnaire.
 Less time for this study.
 This study will be done in particularly in Ahmedabad

9
Chapter 2 Industry Profile

10
Insurance is a legal contact that protects people from the financial costs those results from loss
of lift, loss of health, lawsuits, or property damage. Insurance provides a means for individual
and society to cope up with some of the risks faced in everyday life by everybody. People
purchase contracts of insurance, called a policy, from various insurance companies.

Almost every person existing in this world is associated with insurance, directly or indirectly.
Directly, in the sense that he / she has insured his/her life by some kind of insurance policy
from any company. Indirectly, in the sense they must have insured the assets of their won for
example their house, car, or anything else.

2.1 BRIEF HISTORY OF INSURANCE

The business of insurance started with marine business. Traders, who used to gather in the
Lloyd's coffee house in London, agreed to share the losses to their goods while being carried
by ships. The losses used to occur because of pirates who robbed on the high seas of because
of bad weather spoiling the goods or sinking the ships. The first insurance policy was issued in
1583 in England. In India insurance began in 1870 with life

Insurance being transacted by an English company, the European and the Albert. The
first insurance company the Bombay Mutual Assurance Society Ltd. formed in 1870. The
Oriental Life Assurance Co. in 1874 and the Empire of Indian of 1897 followed this.

Later, the Hindustan Cooperative was formed in Calcutta, the United Nations in
Madras, the Bombay Life in Bombay, the National in Calcutta, the New India in Bombay, and
the A Jupiter in Bombay and the Lakshmi in the New Delhi.

These were all Indian companies, started as a result of the Swadeshi movement in the
early 1900's by the year 1956, when the life insurance business was nationalized and the Life
Insurance Corporation of India (LIC) was formed on the Its September 1956, there were 170
companies and 75 provident fund societies transaction life insurance business in India. After
amendments to the relevant law in 1999, the LIC did not have the exclusive privilege of doing
life insurance business in India. By 31-3-2002, 11 new insurers had been registered and had
begun to transact life insurance business in India.

11
2.2 History of Insurance in India
Ancient Indian history has preserved the earliest traces of insurance in the form of
marine rade loans or carriers contracts. These can be found in KaLIClya's Arthashastra,
Yajnyavalkya's Dharmashastra and Manu's Smriti. These works show that the system of credit
and the law of interest were well developed in India. They were based on a clear appreciation
of the hazard involved and the means of safeguarding against it.

The Indian Life Assurance Companies Act, 1972 as the first statutory measure to
regulated life insurance business. Later in 1928, the Indian insurance companies act was
enacted, to enable the govt. To collect statistical information about both life and non-life
insurance business transacted in Indian-by-Indian and foreign insurers, including the provident
insurance society. Comprehensive, arrangements were, however, brought into effect with the
enactment of the insurance act, 1938.

Efforts in this direction continued progressively and Act was amended in 1950, making
for reaching charges, such as requirement of equity capital for companies carrying on life
insurance business, stricter controls on investment of life insurance companies, ceiling on the
expenses of management and agency commission etc.

By 1956, 154 insurers, 16 non-Indian insurers and 75 provident societies were carrying
on life insurance business of India. On 19th January 1956, the management of the entire life
insurance business of 29 Indian insurers and provident insurance societies and the Indian life
insurance business of 16 non-Indian insurance companies then is operating in India. Insurance
Corporation came into existence.

An ordinance was passed in 1968 to amend the insurance Act to regulate/ control non-
life insurance resulting in set up of GIC in 1973. Malhotra committee submitted its report in
1994 and recommended means to reintroduce an element of competition by with drawing the
exclusivity of LIC and GIC. In 1997, Insurance Regulatory Authority (IRA) was established
which was later re-styled as IRDA in 1999.

2.3 PRESENT SCENARIO OF THE INSURANCE SECTOR

Liberalization commitments of the country to help in disciplining future economic policies will
include the insurance reforms. When the world over, insurance, markets have been opened up,

12
India cannot remain in isolation. Globalization is the new economic reality, which is here to
stay, heralding a new era of insurance in India. With the opening of the insurance industry,
India stands to gain the following major advantages:

 Globalization will provide improved opportunities to the customers for better products,
with more reasonable and affordable pricing.
 The customer will get quicker servicing.
 It will enhance the savings rate.
 Long-term funds for infrastructure development will be available to the country.
 It will secure for India larger inflows of foreign capital needed to sustain our GDP
growth.

THE INSURANCE MARKET

The term “market” is simply a term to “describe the facilities for buying and selling

As with any other market that for insurance consist of

 Buyers
 Sellers
 Intermediaries

THE BUYERS
The buyers of the insurance or the insuring public include everyone who requires insurance.
Buyers can be divided into four sections.

 Firstly, there are private individuals who buy life insurance policies, household
insurance on buildings, cars and scooters, personal liability and accident policies.

 Secondly, there are persons who buy industrial life assurance, which appeals to the
wage-earners (as distinct from the salaried class) or the lower income members of the
community.

 Thirdly, there are buyers who seek insurance with Lloyd’s underwriters, through
Lloyd’s brokers.

13
  Finally, the rest of the buyers comprise all persons, association, Firm joint stock
companies, cooperation, societies, clubs, government, and under taking engaged in
industry, trade and every other king of activity.

THE SELLERS

Then there are sellers of insurance who are known as insurers, and have huge overseas
connections besides their home business. Insurers may be divided into several groups,
according to their constitLICon. The principal groups are:

 Proprietary companies (Joint Stock Companies)

 Mutual insurers
 Cooperative Societies
 Lloyd’s underwriters
 Self-insurers
 Collecting friendly societies
 State insurance

INTERMEDIATE

Like any other market, the intermediate bring the buyers& sellers together but it is possible to
approach an insurance company directly & arrange insurance counter, except in case of
Lloyd’s. Generally the business of insurance is sold by agent or middle man to call at the
homes of the would be policy holders.

The principle groups of intermediaries are

 Industrial life assurance agent

 insurance agent
 insurance broker
 Lloyd’s broker

Insurance Regulatory and Development Authority

14
Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament
in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously such to its schedule of framing regulations and registering the private sector
insurance companies.

The other d4ecisoin taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents.

Market Share of Different companies

15
2.4 IMPORTANCE OF INSURANCE

If there is someone who would suffer economic hardship if you died, then the answer is
yes............you need life insurance! Families with young children have a clear need of life
insurance. If both spouses work, the loss of one income will cause the family immediate
economic hardship and make it harder for them to realize future goals, such as paying for the
children's education.

But even if one spouse works 'inside the home' and doesn't being in a formal income, his or her
death will require the surviving spouse to hire child care, housekeepers and other professional
to help run the house hold and that can be a significant new expense.

If you are married without children or single, then you may need life insurance to protect your
partner or surviving family members against the costs associated with your death. Funeral
expenses, probate and administrative fees, outstanding debts, special obligations to charities
and federal and state taxes are costs that all of us must consider. And, they can add up quickly.
Unless you already have sufficient financial resources, your survivors will probably need life
insurance to cover these expenses.

Along with your savings and investment strategy, life insurance should be a part of your long
term financial planning. You may not like to think about it, but your death can be costly to your
loved ones. At the very least, there will be funeral and burial costs.

There may also be estate taxes and outstanding debts to pay, such as medical expenses not
covered by health insurance. If you have dependents, they will have to cope up with these costs
while no longer having your income to rely on. The proceeds from a life insurance policy can
be of tremendous value at this time.

16
2.5 THE BEGINNINGS OF LIFE INSURANCE

Life assurance can be traced back to the sixteenth century, when shot – term assurance were
usually affected as collateral security for loans, indeed, the first life assurance were marine
insurance underwriters; policies often being written on the life of a merchant sailing with his
goods. The first recorded life policy was in 1583, which was subject to an underwriters of
England on June 18, 1583, for “12 months” for $382.6s.8d.

On the life of fine William Gigots. “Through, the policy concluded with the words, “God send
the said William Gibbons health and life”, he died on May 9, 1584. The underwriters contended
that the policy period of “12 months” related to lunar months, which had expired. But the court
ruled out that payment must be made and the underwriter paid the sum assumed. Besides, in
the sixteenth and seventeenth centuries, evidences of the existence of shot – term policies are
available, which cover the risk of death within a limited period only.

They were particularly used for merchants and others on voyages or on the lives of debtors as
security against loan. In the seventeenth and eighteenth centuries mutual assurance the
Amicable Society, the Equitable Life Assurance Society and Westminster Society have and
important place, Subsequently Life Assurance Act. 1774 and Life Assurance Companies Act,
1870 were passed to established the business. In India the first Insurance Act was passed in
1912, which was replaced by a comprehensive Insurance Act of 1938

This Act was amended in 1950. Finally, the Government of India nationalized the entire life
insurance business in the year 1956 by passing the life Insurance corporation Act, 1956. Thus
at present the entire the insurance boniness in being transacted by the Life Insurance
Corporation of India, which is popularly known as LIC.

The Corporation is an autonomous body and run on sound business principles. Its central
offices are located in Bombay and there are Zonal, Divisional, Branch and sub-offices both in
India and aboard. Thus, we see that in last 2 years a large pool of private as well as other

17
financial InstitLICon have come forward to provide this very service of insurance like ICICI
PRUDENTIAL, BIRLA SUN LIFE INSURANCE, SBI LIFE INSURANCE, HDFC
STANDARD LIFE INSURANCE etc. the share of private life insurance players has also
increased marginally.

WHY LIFE INSURANCE?

INSTRUMENT Safety Liquidity Post tax Tax Life

return Efficiency Cover

Provident Fund High Low Good Good None

Shares Low Average Uncertain Low None

KVP’s,NSC’s High Low Average Low None

Bonds,Fixed Average Average Low Low None

Deposits

Insurance Policy Average High Uncertain Average None

Postal Saving High Low Average Average None

Schemes

LIFE HIGH GOOD HIGH YES

Low
INSURANCE

18
2.6 KIND OF LIFE INSURANCE POLICIES

 Whole Life Policy

 Endowment policy
 Term Policy
 Annuity Policy

WHOLE LIFE POLICY

As the name suggests, whole life assurance policy lasts for the whole of the assureds life, the
sum being payable at death only. In other words, whole life insurance is a type of life insurance
contract under which the policyholder is covered for his entire life.

WHOLE LIFE POLICY IS -:

 Ordinary Whole Life Policy

 Limited payment Whole Life Policy
 Single Premium Whole Life Policy
 Special Whole Life Policy
 Convertible Whole Life Policy

ENDOWMENT POLICY

Endowment insurance is a type of life insurance contract, which provides for the sum assured
to be paid wither at death or after a fixed number of years. Whichever comes first? The assured
when affecting a policy selects the number of years.

Thus, under this plan the company promises to pay a stated amount of money to the beneficiary
at one. If the inured dies during the life of the policy (called the endowment period) or to the
insured himself if he survives up to the end of the endowment period. In other words, an
endowment policy provides for the payment of the insured amo9unt either on death or on the
attainment of a certain age, whichever is earlier. Suppose, a man takes an endowment policy
for 20 years or even after a few weeks or days of taking lout the policy, the sum assured

19
becomes payable to his dependents. As against this if he survives this periods, they policy
“matures” and he will himself receive the payment of the sum assured on tehexpiry of 20 years.

THE ENDOWMENT POLICIES ARE:

 Ordinary Endowment policy

 Pure Endowment policy
 Double Endowment policy
 Optional Endowment policy
 Anticipated Endowment policy
 Educational Endowment policy etc.

TERM INSURANCE POLICY

A term insurance policy is the oldest form of the policy. here the insurer makes the payments
only if the insured dies within the the “ term “ of the policy of specified policy. In other words
it is conflicts between the insured & the insurer whereby he company promise pay the face
amount of the policy to a third party if the insured die before a certain or age however if insured
doesn’t die during the specified time the contract expired & is treated a cancelled the insurer
pay nothing on the policy .

thus , this contract run only for a temporary specified period of time & that a little or no cash
value accumulated as saving or emergency fund for the policyholder . The policy may be
written for assured a period of one year & may be issued for; longer period 5, 10, 20 years.
This is plan of special interest to those who need extra protection for a short duration like
businessmen on journey, for as temporary cover to secure as an outstanding debt.

TERM INSURANCE POLICIES ARE

 Ordinary Policy
 Convertible Policy
 Decreasing Policy
 Renewable term Policy
 Yearly Renewable Policy

20
2.7 ADVANTAGES OF LIFE INSURANCE

1. It is superior to an ordinary saving plan:

Unlike other saving plans, if affords full protection against risk of death. In case of death, the
full sum assured is made available under 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.

2. Easy settlement & protection against creditors:

The life assured can name person(s) called Nominee to whom the policy money would be
payable in the event of his death. The proceeds of a life policy can be protected against the
claim of the creditors of the life assured by effecting a valid assignment of the policy.

3. 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 on the sole security of the policy without delay. Further, a life insurance policy
is sometimes acceptable as security for a commercial loan.

4. Tax Relief:

The Indian Income-Tax allows deduction of certain portion of the taxable income, which is
diverted to payment of life insurance premiums from the total income tax liability. When this
tax relief is taken into account, it will be found that the assured is in effect paying a lower
premium for his insurance.

21
2.8 PESTLE ANALYSIS OF LIFE INSURANCE INDUSTRY IN INDIA

A) POLITICAL FACTORS:

1. INCREASED SERVICE TAX ON PREMIUM: The imposition of service

tax on the services provided by the insurers has been increased significantly
over past few years by the government.
2. ENDING OF GOVERNMENT MONOPOLY: A great revolution in the
insurance sector came in the year 1999 when IRDA passed the bill, lifting
all entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership.
3. INCREASE IN FDI LIMIT: The hike in the insurance foreign direct
investment (FDI) limit to 49 per cent from 26 per cent has proved to be very
beneficial for the insurance industry in India. It has encouraged foreign
investors to invest in Indian insurance industry.
4. FAVOURABLE REGULATIONS FOR RURAL INSURANCE: To
encourage insurance sector to increase its spread in rural India, government
has made regulations more favorable for rural people by decreasing the
amount of premiums, introducing new group insurance plans and various
other special plans for farmers.

B) ECONOMIC FACTORS:

1. INCREASE IN GROSS DOMESTIC SAVINGS: The gross domestic savings

of people in India have increased significantly, due to which they are moving
towards new ways of investing money for the future benefits including various
insurance plans. As compared to previous year i.e.2007, the insurance industry
thus expected to grow by about 40% during this fiscal year, i.e.2008.
2. CONTRIBUTION TO COUNTRY’S G.D.P: According to government
sources, the insurance and banking services’ contribution to the country’s gross

22
 domestic product is 7% out of which the gross premium collection by various
insurance companies forms a significant part.
3. ROLE IN GOVT. SECURITIES MARKET: Insurance companies are fest
emerging as one of the most prominent players in the govt. securities market.
The share of insurance companies in overall investment in the G-sec market
has more than doubled to 23% during 2007-08 from 9% during the previous
fiscal year.
4. BIGGEST DOMESTIC PLAYER IN EQUITY MARKETS: According to
RBI’s annual report for 2007-08, the insurance companies invested Rs. 35880
crore in the G-sec market, which is over 173.06% higher than the Rs.13880
crore they invested in 2006-07. Thus insurers have emerged as the biggest
domestic institutional players in the equity markets.

C) SOCIAL FACTORS:

1. LOW INSURANCE COVERAGE: In India insurance is considered as which

is pushed upon the customers to buy. People are unwilling to buy insurance due
to lack of awareness.
2. INCREASE IN LIFE SPAN AND RISE IN ELDERLY POPULATION: In
India life span has increased over past few years due to which the elderly
population in India is rising day by day. To live a happy and independent life,
more no. of educated peoples is moving towards investing in insurance to
ensure a respectful and independent life even in old age.
3. UNCERTAINITY ABOUT LIFE: Due to increasing no. of events of terrorist
attacks in various parts of the country, people have started viewing life as more
uncertain. It has developed a kind of fear factor in the minds of people leaving
them more worried about their family and kids. Due to this reason they are
moving more and more towards buying insurance policies in order to secure
their family’s future.
4. CHANGING INDIAN PERCEPTION: In India earlier people used to view
insurance as a tax saving device or as a method of investment. But, nowadays
a great change in the perception has come. People have started realizing the
importance of getting insured. Now more no. of people is viewing it as a
transfer of risk for a good future.

23
 5. CHANGE IN FAMILY SYSTEM: Since past, joint family system was the
most prevalent in all the stratus of Indian society. At that time, in case of a
man’s death, there were other people in the family to take care of his wife and
kids. But, with the passage of time, a big change in our culture has come. More
no. of people is moving towards nuclear family system. In today’s scenario
there is no one to help a widow and her kids because everyone is busy with
his/her family. In such a situation more no. of people are opting for insurance
to secure their spouse and children’s future.
6. INCREASE IN LIFE STYLE DISEASES: Due to modernization, the life has
become very fast. Many changes have taken place in the life style of people,
due to which a large no. of new life style diseases have made their place in our
country. Thus, more no. of people is opting for health insurance etc to lead a
better and more secured life.

D) TECHNOLOGICAL FACTORS:

1. AUTOMATION OF PROCESSES: Nowadays, with advancement in

technology the whole process of insurance has become automated. Earlier it
used to take 15days to 45days for the issuance of policy documents. But,
nowadays the whole process gets completed within 5 to 7 days.
2. INTERNET DRIVEN INFORMATION ERA: With an increase in internet
usage and its increasing spread, it has become easier for people to get informed
about everything at their home only. Now they don’t have to waste time in
gathering information before taking any financial step. Every information is
now-a-days is available on the net.
3. BUSINESS PROCESS MONITORING: It has become easier fo0r people to
track every event in a business process. It has resulted in more transparency in
every aspect of business processing.
4. E-BANKING FACILITY: More no. of people in urban sector are moving
towards e-banking and credit card facilities etc, which has made payment of
premium much easier, convenient and hassle free for customer.

24
E) LEGAL FACTORS:

1. REGULATORY BODIES: IRDA (Insurance Regulatory Development

Authority) keeps on changing policies related to insurance which makes
difficult for the companies to adopt quickly.
2. RENEWAL OF REGISTRATION: An insurer, who has been granted a
certificate of registration, should have the registration renewed annually with
each year ending on March 31 after the commencement of the IRDA Act.
3. REQUIREMENTS AS TO CAPITAL: The minimum paid up equity capital,
excluding required deposits with the RBI and any preliminary expenses in the
formation of the country, requirement of an insurer would be Rs 100 crore to
carry on life insurance business and Rs 200 crore to exclusively do reinsurance
business as per Section 6.

25
Chapter 3 Company Profile

26
IDBI Federal Life Insurance Co Ltd. is a three way joint-venture of IDBI Bank, an Indian
development and commercial bank; Federal Bank, one of India’s leading[peacock term] private
sector banks and Ageas, a multinational insurance giant based out of Europe.

IDBI Federal distributes its products through a multi-channel network consisting of Insurance
agents, Bancassurance partners (IDBI Bank, Federal Bank) Direct channel, and Insurance
Brokers.

3.1 History

In the year 2006, IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis
Insurance International NV signed a MoU to start a life insurance company in India. The
company received its license from Insurance Regulatory and Development Authority of India
(IRDAI) (Arul jegadeesh one of the trainee in the idbi federal life insurance company in
Madurai) in December 2007.IDBI Fortis Life Insurance Co. Ltd. officially began its operations
in March 2008. In August 2008, the company collected the premium of over Rs.100 crore
within a record time of five months, thus becoming the fastest growing new life insurance
company in the private sector India-Sri Lanka ODI series that took place in October 2009,
found a title sponsor in insurance major IDBI Fortis. The company’s AUM crossed the Rs.
1,000 crore mark for the first time in March 2010.In August 2010, the company was
rechristened as IDBI Federal Life Insurance Company. In 2012-13, it declared its maiden
profits in record 5 years, thus was one of the fastest to do so in the industry. It yet again clocked
Rs. 80 crore profits for the financial year 2013-14 and has maintained its profitable trajectory
from thereon.

The project report titled “STUDY THE FACTOR AFFECTING BUYING BEHAVIOUR OF
CONSUMER TOWARDS LIFE INSURANCE IN AHMEDABAD CITY”
Company Information :
Type Joint Venture
Industry Life insurance
Founded March 2008
Headquarter’s in Mumbai India
Key people Yogesh Agarwal, Chairman G V Nageswara Rao, MD & CEO.

27
 Products Individual Life Insurance, Group Insurance and Pension Plans
Employees 1,000 on-roll employees and 7,500 agents
Website Official Website.

Full name IDBI Federal Life Insurance Co Ltd. Legal Address 1st Floor, Trade view
Building, Oasis Complex, Kamala City, Pandurang Budhkar Marg, Lower Parel ( W );
Mumbai; Maharashtra; 400013

Status: Non-Listed Legal Form: Other non-liability limited Operational Status: Operational
Financial Auditors: Dass Gupta & Associates (2010) Tel: +91 22 2490 8109-10
Product of the Company:
1. BONDSURANCE
Get guaranteed return on your investment with life insurance IDBI Federal Bondsurance Plan
is designed for customers looking for guaranteed returns which will not get affected by
financial market conditions. It offers guaranteed return on investment along with life insurance
cover.
Investment in this Plan is eligible for deduction under Sec 80C of the Income Tax Act and the
maturity amount is tax-free under Sec 10(10D) of the Income Tax Act.

If you are looking for a safe and steady approach to meet your dreams, you need a plan that
will give you steady and assured returns that are not dependant on market conditions. IDBI
Federal Bondsurance Plan is the ideal plan to beat the ups and downs around you.

2. WEALTHSURANCE
Wealthsurance plans combine wealth creation with insurance protection into one powerful
financial solution. Unlike other investment alternatives, it allows you to ensure that your goals
of wealth creation are achieved even in the event of serious illness, accidents, disablement or
death.
Insured Wealth Plans to grow wealth under a protective cover
Wealthsurance offers you Insured Wealth Plans. They allow you to create, build and manage
wealth by giving several choices and great flexibility so that your plan meets your specific
needs. You can decide how you wish to save so that it suits your savings habit. You can choose
how your money is invested so that you can grow wealth as per your investment preferences.

28
What is even better, Wealthsurance protects your wealth plans with life insurance benefits so
that your wealth-building efforts remain unaffected in unforeseen events and your financial
goals can still be achieved.

As a seasoned investor, you recognise the ability of the equity markets to build wealth over the
long term. But you also appreciate the fact that the growth potential of the market comes with
the accompanying risk of volatility…

3. HOMESURANCE
Your new home is the fulfillment of a long-cherished dream. Only you know the careful
planning that went into its choice. And only you understand the hard work that went into
arranging the financing including the home loan. Truly, your home is your best gift to your
family. Just imagine what would happen, if due to an unfortunate event, you were not around.
The entire burden of your home loan would have to be borne by your family. But you can
ensure that they inherit a home and not a home loan. We understand the importance of
protecting your home loan and the powerful IDBI Federal Homesurance Protection Plan can
help you insure your home loan at a reasonable cost.

4. TERMSURANCE
Happiness & security for our family is something all of us strive to achieve. However, there
are times when you ask yourself - What if something were to happen to me? What would
happen to my loved ones? Have I secured my family financially so that they don’t have to face
life’s burdens? Different people have different needs and seek different things from an
insurance plan. Some look for a large cover option at a low cost, while others seek return of
premium on maturity of the policy. There are some who may want their plan to keep in touch
with inflation, while others may seek flexible premium payment options.
5. INCOMESURANCE
Grow your Guaranteed Annual Income each time you pay premium. Some goals cannot be left
to chance. Like educating your child, or planning for her marriage, or providing financial
security to a loved one, or ensuring a comfortable retirement income. Or you may just want to
ensure a future additional income stream.

How can you be confident of achieving these goals?

29
1. You need a plan that allows you to save regularly to reach your objective.
2. You want the plan to give you assured income payments that are not dependent upon vagaries
such as the stock market.
3. You want the plan to work and your goals to be achieved even if anything happens to you.
A cover for all your needs, Independent regular income for your wife, you can also ensure that
no one, including creditors or claimants, can touch that money.

Child's Education:
You can save regularly and get guaranteed payouts to meet your child's education. You can be
rest assured that your goal will be achieved even if anything were to happen to you.

Daughter’s Marriage: You can withdraw your guaranteed income when the time comes for
marriage. You can meet the wedding expenses or give her a regular income. It is the best
present you can give when she is setting up her home.

Get additional income from time to time

Over and above your normal income, IDBI Federal Incomesuranc Endowment & Money Back
Plan can help you get additional income from time to time. You can indulge in a purchase of
your choice, take a vacation or just gift it to your loved ones, the choice is yours. At the same
time, you can also ensure life insurance protection for your family's security.

6. RETIRESURANCE
It is difficult to predict the future but with more of us living longer, the possibility of outliving
our savings could become a harsh reality. In fact, you could easily spend almost 20-25% of
your life in retirement. This is the time in your life when you will face the retirement challenge.
As time goes by, your responsibilities grow as well, increasing your expenses. Also let’s not
forget the effect of inflation. Inflation increases the cost of living. Take the following increases
-in basic amenities over the last 20 years and you can understand what you could be up against
after 20 years.

These are approximate rates based on market sources and are presented for illustrative purposes
only, But when is a good time to start planning for retirement?
The answer is as soon as you can. It is never too early to plan ahead for something as important
as a comfortable retirement. The earlier you start, bigger your corpus or your retirement.

30
 7. LOANSURANCE
Loansurance is a cost-effective way to ensure that the outstanding debt is settled in the
unfortunate event of death of the insured member. This term assurance plan provides cover to
a person directly liable for loan repayment (and the partners, in case of a partnership), as per
the benefit schedule.
Reducing cover under this option, your insurance cover reduces as per your benefit schedule.
The benefit schedule is computed over a period of time, taking into account initial loan interest
rate, the loan term and outstanding loan amount. Level Cover
The level cover option of Loansurance provides a cover for the sum insured as specified by the
insured member and can be to the extent of the full agreed loan amount plus accrued interest
as chosen by the insured member.

3.2 SWOT ANALYSIS:

Strengths:

 The banks major strength is it involves latest cutting edge technologies to support its
core banking operations.
 The bank has network of 943 branches and 1529 ATMs
 The total turnover of the bank is 3, 37,584 crores in the last FY 2010-11, and earned a
net profit of Rs.1650 cr.
 The bank has grown at a rate of 60% compared to previous year
 IDBI has the first mover advantage in opening ‘G-sec portal’. This is a platform for the
retail investors to invest in government securities
 IDBI is one of the largest commercial banks in India which focuses on industrial
infrastructure and development
 IDBI’s product portfolio includes 14 broad classifications, and there are some sub
categories in each. The bank has customized solution faculties for its industrial clients
 The location of its headquarters in Mumbai fosters the growth of the bank.
 IDBI’s subsidiaries are into capital market services, IT services, asset management and
life insurance.

Weaknesses:

31
  IDBI has less penetration into the rural market.
 IDBI has very less number of branches and ATM network compared to other major
players.
 It concentrates mainly on commercial banking services whereas the individual banking
services is where the main revenue lies.
 The customer help desk is not performing efficiently and there are many unresolved
issues of customers.
 The bank has lots of consumer complaints with respect to servicing charges
 The bank lacks in promotional activities.

Opportunities:

 Scope for bagging government schemes are high as IDBI belongs to public sector.
 Global opportunities for IDBI are the rise as the management is keenly focusing on
global expansion in next few years.
 They have a good number of financial expertise to face the emerging industrial and
economic growth in India.
 It is the only bank in public sector which has enabled social media plug-in in its website.
This has increased the brand awareness and better reach to its customers.
 The bank has good opportunities in semi-urban and Tire II cities areas as the industrial
growth is taking very rapidly.

Threats:

 IDBI faces tough competition in terms of new market development due to competition
from both government and private banks.
 FDI in Indian banking has been opened up to 74% by the RBI.
 In private banking HDFC, ICICI and in public sector SBI, Punjab National Bank,
Andhra bank and Allahabad bank are the major competitors.
 The bank has to focus on improving the customer satisfaction in order to sustain the
loyal customers.
 Recent scams and fraudulent activities of bank have gained mistrust from its customers
and investors.

32
Chapter 4: Introduction of the topic

33
Consumer Behaviour

Schiffman and Kanuk (2007:11) defined consumer behaviour as the behaviour that consumers
display in searching for, purchasing, using, evaluating and disposing of products and services
that they expect will satisfy their needs. According to Kumar (2008:2) consumer behaviour can
be define as the behaviour of individuals in regards to acquiring, using, and disposing of
products, services, ideas or experiences. Consumer behaviour focuses on how individuals make
decisions to spend their available resources (time, money, effort) on consumption related items.

A Conceptual Understanding The consumers’ buying behaviour has been always a popular
marketing topic, extensively studied and debated over the last decades while no contemporary
marketing textbook is complete without a chapter dedicated to this subject. The predominant
approach, explaining the fundamentals of consumer behaviour, describes the consumer buying
process as learning, information-processing and decision-making activity divided in several
consequent steps:

(1) Problem identification

(2) Information search

(3) Alternatives evaluation

(4) Purchasing decision and

(5) Post-purchase behaviour

A distinction is frequently made between high and low involvement purchasing, implying that
in practice the actual buying activity can be less or more consistent with this model, depending
on the buyer’s perceived purchasing risks.

High or low degree of involvement is also a question of buyer experience; products purchased
for the first time, in general, require more involvement than frequently purchased products.
Most academics and practitioners agree that demographic, social, economic, cultural,
psychological and other personal factors, largely beyond the control and influence of the
marketer, have a major effect on consumer behaviour and purchasing decisions. Despite their
incapacity to exercise any substantial influence on the above factors, marketers can have some

34
bearing on the outcome of the buying process by engaging different marketing tools, the most
prominent being the 4Ps - product, price, place and promotion - also known as the marketing
mix. While the value and current standing of the mix as marketing toolkit is frequently
disputed. Marketing practitioners nonetheless widely deem the 4Ps as the tools that can
influence the consumer’s behaviour and the final outcome of the buyer-seller interaction. Next
to the personal and external uncontrollable factors influencing the buying behaviour, exposure,
of customers to the company’s marketing can affect the decision-making by providing inputs
for the consumer’s black box where information is processed before the final consumer’s
decision is made. Customer satisfaction has been used as one of the key constructs to predict
consumer behaviour for decades. Customer satisfaction has many benefits - it heightens
customer loyalty and prevents customer churn, lowers customers’ price sensitivity, reduces the
costs of failed marketing and new customer creation, reduces operating costs as customer
number increases. Also the connection between customer satisfaction and customer loyalty is
not always a linear relation, although it constitutes a positive relationship and hence there
should be negative relationship between customer satisfaction and customer churnability.
Customer satisfaction is the result of customers comparing their perception of performance of
the service with their expectations. Customer expectations are beliefs about service delivery
that function as standards or reference points against which the performance is judged.
Customers perceive services in terms of the quality of the service and how satisfied they are
with their expectations. Companies have become increasingly interested in hearing from their
customers. Dissatisfied customers, in particular, are often encouraged to communicate their
complaints to company service representatives over the telephone. Research suggests that in
many cases, companies make good-faith efforts to address the complaints, of these dissatisfied
customers. Many managers, for example, are often prepared to exceed consumer expectations
in striving to address complaints. Given the direct relationship between customer satisfaction
and company profitability, such efforts to resolve customer complaints make good business
sense. Unfortunately, the number of complaints received by a company may not always be a
good measure of customer satisfaction. This is because not all disgruntled consumer’s
complain. Instead of complaining, a dissatisfied customer may terminate the relationship or
“suffer in silence confident that things will get better soon”. The decision not to complain may
be situational. For example, a dissatisfied customer may not have the time to wait for a manager
and decide instead to leave the store. Satisfying the customers is the primary objective of all
the companies nowadays, especially the service sector. There are numerous studies that have
looked at customer satisfaction in the service industry. Satisfaction is equated with the well or

35
better performed function of a business to the expectation of the customer. The literature on
satisfaction indicates that a satisfied customer will create repeat purchase, favourable word of
mouth recommendation, increased loyalty, and therefore, profits to the company. A satisfied
customer is the cheapest method of promotion as there is always hope that they will share with
others their experience of the service, thus promoting the service. Satisfaction from the
customer’s point of view is similar to Gap, the difference between perception and expectation
of the service performed. Satisfaction is beyond the physical, situational and behavioural terms,
to that of a state of mind. This state of mind of the customer is the leading criterion for
determining the quality that is actually delivered to customers through the product/service and
by the accompanying service. The challenge is to offer the right quality of service that is
required by the customer. Hence this study aims at studying the consumer behaviour in the life
insurance industry and also how what the consumers’ preference and perception is with regard
to the life insurance industry in India.

Consumer Buying Decision

Kotler and Keller stated there are four types of buying decision behaviour based on the degree
of buyer involvement and the degree of differences among brands: Complex buying behaviour,
consumers undertake complex buying behaviour when they are highly involved in a purchase
and perceive significant differences among brands. Dissonance-reducing buying behaviour,
this type occurs when consumers are highly involved with an expensive, risky purchase, but
see little differences among brands. Habitual buying behaviour, this type occurs under
conditions of low consumer involvement and little significant brand differences. Variety
seeking buying behaviour, consumers undertake this type in situation characterized by low
consumer involvement but significant perceived brand differences. McDaniel, Lamb & Hair
stated that consumer buying decision generally fall along a continuum of three broad
categories: Routine response behaviour, consumer buying frequently purchase, low cost goods
and services; require little search and decision time. Limited decision making, requires a
moderate amount of time for gathering information and deliberating about an unfamiliar brand
in a familiar product. Extensive decision making, used when buying an unfamiliar, expensive,
or an infrequently bought item.

Life Insurance

36
Life Insurance is a contract for payment of a sum of money to the person assured, or failing
him/her, to the person entitled to receive the same, on the happening of the event insured by
the contract. Life insurance is a financial instrument used for providing support for survivors,
paying estate obligations arising after death, adjusting business losses because of a top
personnel’s death, accumulating funds for retirement, emergencies and other future uses and
also solving income tax problems. The primary purpose of Life Insurance is the protection of
the entire family in case of death. Nowadays, Life insurance also acts as a tool to plan
effectively about one’s future Savings, child’s education needs etc. So apart from covering life,
it is an effective tool to enhance wealth.

Types of insurance

Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give
rise to claims are known as "perils". An insurance policy will set out in detail which perils are
covered by the policy and which are not. Below are (non-exhaustive) lists of the many different
types of insurance that exist.
A single policy may cover risks in one or more of the categories set out below. For example,
auto insurance would typically cover both property risk (covering the risk of theft or damage
to the car) and liability risk (covering legal claims from causing an accident).

A homeowner's insurance policy in the U.S. typically includes property insurance covering
damage to the home and the owner's belongings, liability insurance covering certain legal
claims against the owner, and even a small amount of coverage for medical expenses of guests
who are injured on the owner's property.

Business insurance

Can be any kind of insurance that protects businesses against risks. Some principal subtypes of
business insurance are (a) the various kinds of professional liability insurance, also called
professional indemnity insurance, which are discussed below under that name; and (b) the
business owner's policy (BOP), which bundles into one policy many of the kinds of coverage
that a business owner needs, in a way analogous to how homeowners insurance bundles the
coverage’s that a homeowner needs.

37
Auto Insurance

Auto insurance protects you against financial loss if you have an accident. It is a contract
between you and the insurance company. You agree to pay the premium and the insurance
company agrees to pay your losses as defined in your policy. Auto insurance provides property,
liability and medical coverage:

 Property coverage pays for damage to or theft of your car.

 Liability coverage pays for your legal responsibility to others for bodily injury or
property damage.
 Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes
lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most countries require
you to buy some, but not all, of these coverage’s. If you're financing a car, your lender may
also have requirements.

Most auto policies are for six months to a year. Your insurance company should notify you by
mail when it’s time to renew the policy and to pay your premium.
Home Insurance

Home insurance provides compensation for damage or destruction of a home from disasters.
In some geographical areas, the standard insurances exclude certain types of disasters, such as
flood and earthquakes that require additional coverage. Maintenance-related problems are the
homeowners' responsibility.

The policy may include inventory, or this can be bought as a separate policy, especially for
people who rent housing. In some countries, insurers offer a package which may include
liability and legal responsibility for injuries and property damage caused by members of the
household, including pets.
Health Insurance

38
Health insurance policies by the National Health Service in the United Kingdom (NHS) or
other publicly-funded health programs will cover the cost of medical treatments. Dental
insurance, like medical insurance, is coverage for individuals to protect them against dental
costs. In the U.S., dental insurance is often part of an employer's benefits package, along with
health insurance.

Disability Insurance

 Disability insurance policies provide financial support in the event the policyholder is
unable to work because of disabling illness or injury. It provides monthly support to help pay
such obligations as mortgages and credit cards.
 Disability overhead insurance allows business owners to cover the overhead expenses
of their business while they are unable to work.
 Total permanent disability insurance provides benefits when a person is permanently
disabled and can no longer work in their profession, often taken as an adjunct to life insurance.
 Workers' compensation insurance replaces all or part of a worker's wages lost and
accompanying medical expenses incurred because of a job-related injury.

Casualty Insurance

Casualty insurance insures against accidents, not necessarily tied to any specific property.

 Crime insurance is a form of casualty insurance that covers the policyholder against
losses arising from the third parties. For example, a company can obtain crime
insurance to cover losses arising from theft or embezzlement.

 Political risk insurance is a form of casualty insurance that can be taken out by
businesses with operations in countries in which there is a risk that revolLICon or other
political conditions will result in a loss.

Life Insurance

39
Life insurance provides a monetary benefit to a decedent's family or other designated
beneficiary, and may specifically provide for income to an insured person's family, burial,
funeral and other final expenses. Life insurance policies often allow the option of having the
proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.

Annuities provide a stream of payments and are generally classified as insurance because they
are issued by insurance companies and regulated as insurance and require the same kinds of
actuarial and investment management expertise that life insurance requires.

Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against
the possibility that a retiree will outlive his or her financial resources. In that sense, they are
the complement of life insurance and, from an underwriting perspective, are the mirror image
of life insurance.

Certain life insurance contracts accumulate cash values, which may be taken by the insured if
the policy is surrendered or which may be borrowed against. Some policies, such as annuities
and endowment policies, are financial instruments to accumulate or liquidate wealth when it is
needed.

In many countries, such as the U.S. and the UK, the tax law provides that the interest on this
cash value is not taxable under certain circumstances. This leads to widespread use of life
insurance as a tax-efficient method of saving as well as protection in the event of early death.
In U.S., the tax on interest income on life insurance policies and annuities is generally deferred.

However, in some cases the benefit derived from tax deferral may be offset by a low return.
This depends upon the insuring company, the type of policy and other variables (mortality,
market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth
IRAs) may be better alternatives for value accumulation. A combination of low-cost term life
insurance and a higher-return tax-efficient retirement account may achieve better investment
return.

Property Insurance

40
This tornado damage to an Illinois home would be considered an "Act of God" for insurance
purposes

Property insurance provides protection against risks to property, such as fire, theft or weather
damage. This includes specialized forms of insurance such as fire insurance, flood insurance,
earthquake insurance, home insurance, inland marine insurance or boiler insurance.

Automobile insurance

Known in the UK as motor insurance, is probably the most common form of insurance and
may cover both legal liability claims against the driver and loss of or damage to the insured's
vehicle itself. Throughout the United States an auto insurance policy is required to legally
operate a motor vehicle on public roads. In some jurisdictions, bodily injury compensation for
automobile accident victims has been changed to a no-fault system, which reduces or
eliminates the ability to sue for compensation but provides automatic eligibility for benefits.
Credit card companies insure against damage on rented cars.

Driving School Insurance provides cover for any authorized driver whilst undergoing tuition;
cover also unlike other motor policies provides cover for instructor liability where both the
pupil and driving instructor are equally liable in the event of a claim.

 Aviation insurance insures against hull, spares, deductibles, hull wear and liability
risks.
 Boiler insurance (also known as boiler and machinery insurance or equipment
breakdown insurance) insures against accidental physical damage to equipment or
machinery.
 Builder's risk insurance insures against the risk of physical loss or damage to property
during construction. Builder's risk insurance is typically written on an "all risk" basis
covering damage due to any cause (including the negligence of the insured) not
otherwise expressly excluded.

41
 Crop insurance "Farmers use crop insurance to reduce or manage various risks
associated with growing crops. Such risks include crop loss or damage caused by
weather, hail, drought, frost damage, insects, or disease, for instance."[
 Earthquake insurance is a form of property insurance that pays the policyholder in the
event of an earthquake that causes damage to the property. Most ordinary homeowner’s
insurance policies do not cover earthquake damage. Most earthquake insurance policies
feature a high deductible. Rates depend on location and the probability of an
earthquake, as well as the construction of the home.
 A fidelity bond is a form of casualty insurance that covers policyholders for losses that
they incur as a result of fraudulent acts by specified individuals. It usually insures a
business for losses caused by the dishonest acts of its employees.
 Flood insurance protects against property loss due to flooding. Many insurers in the
U.S. do not provide flood insurance in some portions of the country. In response to this,
the federal government created the National Flood Insurance Program which serves as
the insurer of last resort.
 Home insurance or homeowners' insurance: See "Property insurance".
 Landlord insurance is specifically designed for people who own properties which they
rent out. Most house insurance cover in the U.K will not be valid if the property is
rented out therefore landlords must take out this specialist form of home insurance.
 Marine insurance and marine cargo insurance cover the loss or damage of ships at sea
or on inland waterways, and of the cargo that may be on them. When the owner of the
cargo and the carrier are separate corporations, marine cargo insurance typically
compensates the owner of cargo for losses sustained from fire, shipwreck, etc., but
excludes losses that can be recovered from the carrier or the carrier's insurance. Many
marine insurance underwriters will include "time element" coverage in such policies,
which extends the indemnity to cover loss of profit and other business expenses
attributable to the delay caused by a covered loss.
 Surety bond insurance is a three party insurance guaranteeing the performance of the
principal.
 Terrorism insurance provides protection against any loss or damage caused by terrorist
activities.
 Volcano insurance is an insurance that covers volcano damage in Hawaii.
 Windstorm insurance is an insurance covering the damage that can be caused by
hurricanes and tropical cyclones.

42
Credit Insurance

Credit insurance repays some or all of a loan when certain things happen to the borrower such
as unemployment, disability, or death.

 Mortgage insurance insures the lender against default by the borrower. Mortgage
insurance is a form of credit insurance, although the name credit insurance more often
is used to refer to policies that cover other kinds of debt.

43
Chapter 5: Analysis & Interpretation

44
5.1 Primary analysis:

1. What term of investment do you prefer?

Frequency Percent Valid Cumulative

Percent Percent
Short term 49 24.4 24.4 24.4
Long term 65 32.3 32.3 56.7
Valid
Both 87 43.3 43.3 100.0
Total 201 100.0 100.0

What term of investment do you

prefer?

25%
43% Short term
Long term
32% Both

Data Interpretation:

From the above analysis it can be interpreted that from a total population of 201 responses
collected 24.4% of respondents i.e. 49 respondents prefer short term investment, 32.3%
respondents i.e. 65 people choose to invest in long term investments where as 43.3% i.e. 87
from the total respondents choose to invest in both, long term investment and short term
investment as well. This shows that majority of people are more likely to invest in both the
kind of investments rather than selecting any one.

45
2. Which is the best form of investment?

Frequenc Percent Valid Cumulative

y Percent Percent
Fixed assets 48 23.9 23.9 23.9
Bank deposits 32 15.9 15.9 39.8
Jewellery 23 11.4 11.4 51.2
Valid Securities i.e. bonds,
76 37.8 37.8 89.1
mutual funds etc.
Insurance 22 10.9 10.9 100.0
Total 201 100.0 100.0

Which is the best form of

investment?
Fixed assets

11% Bank deposits

24%
Jewellery
38% 16%
11% Securities i.e. bonds, mutual
funds etc.
Insurance

Data Interpretation:
Considering the best form of investment from the above analysis it can be interpreted that
almost 24% of the respondents i.e. out of 201 respondents, 48 people prefer to invest in fixed
assets almost 16% i.e. 32 respondents prefer to invest in bank as fixed deposits, 11.4% i.e. 23
respondents prefer to invest in jewellery like gold, silver and diamonds 37.8% i.e. 76 people
choose to invest in securities like mutual funds shares and equity, whereas only 11% i.e.22
people choose to invest in insurance. In spite life insurance being an important element of an
individual’s security people are very negligent towards insurance and choose to invest in other
element.

46
3. Do you have Life insurance policy?

Frequenc Percent Valid Cumulative

y Percent Percent
Yes 177 88.1 88.1 88.1
Valid No 24 11.9 11.9 100.0
Total 201 100.0 100.0

Do you have Life insurance policy?

12%

Yes
No
88%

Data Interpretation:
Considering the above pie chart which shows the number of respondents that how many of
them own a life insurance, it shows that 88.1% i.e. 177 out of 201 respondents own a life
insurance policy whereas only 11.9% i.e. only 24 respondents do not own a life insurance
policy. This shows awareness regarding importance of life insurance policy amongst
respondents.

47
4. For how many years do you have the life insurance policy?

Frequenc Percent Valid Cumulative

y Percent Percent
less than 5 years 29 16.4 16.4 16.4
5-10 years 49 27.7 27.7 44.1
10-15 years 45 25.4 25.4 69.5
Valid
more than 15
54 30.5 30.5 100.0
years
Total 177 100.0 100.0

For how many years do you have the

life insurance policy?

16%
31% less than 5 years
5-10 years
28%
10-15 years
25%
more than 15 years

Data Interpretation:
Considering the element that for how long the respondents choose to lock their money or invest
their money for future needs we can analyse that 16.4% of the people from total respondents
i.e. 29 people have invested or have chosen to invest their money for less than 5 years, 27.7%%
i.e. 49 respondents choose to invest their money for a period of just 5-10 years, 25.4% i.e. 45
people choose to invest their money for period of 10-15 years, whereas majority of the
respondents i.e. 30.5% (54) of the respondents choose to lock their money for a period of more
than 15 years.

48
5. What is the reason for not having life insurance policy?

Frequenc Percent Valid Cumulative

y Percent Percent
Lack of awareness 4 16.7 16.7 16.7
Long term
14 58.3 58.3 75.0
investment
Valid
Risk involved 3 12.5 12.5 87.5
Fluctuating returns 3 12.5 12.5 100.0
Total 24 100.0 100.0

What is the reason for not having life

insurance policy?

13% 17%
12% Lack of awareness
Long term investment
Risk involved
58%
Fluctuating returns

Data Interpretation:
From total responses collected 11.9% i.e. 24 people didn’t have insurance policy the reason
being that 16.7% of the population did not have much knowledge or are lacking in awareness
regarding policies, 58.3% of the population do not invest in policies because they consider it
as a long term investment, according to 12.5% of the respondents believe that there is some
sort of risk involved in buying insurance policies & 12.5% of the respondents do not invest in
insurances due to fluctuating returns.

49
6. Among the following which life insurance company would you prefer to
buy/have bought the policies?

Frequ Percent Valid Cumulative

ency Percent Percent
LIC 111 55.2 55.2 55.2
IDBI FEDERAL life
9 4.5 4.5 59.7
insurance
Bharti AXA life insurance 7 3.5 3.5 63.2
Max life insurance 10 5.0 5.0 68.2
SBI life insurance 19 9.5 9.5 77.6
Valid ICICI prudential life
19 9.5 9.5 87.1
insurance
Reliance life insurance 6 3.0 3.0 90.0
HDFC life 9 4.5 4.5 94.5
Kotak life insurance 8 4.0 4.0 98.5
Bajaj Allianz life insurance 3 1.5 1.5 100.0
Total 201 100.0 100.0

Among the following which life

insurance company would you prefer
to buy/have bought the policies?
LIC
IDBI FEDERAL life insurance
2%
4%
3%4% Bharti AXA life insurance
9%
Max life insurance
9% 55%
5% SBI life insurance
4%5%
ICICI prudential life insurance
Reliance life insurance
HDFC life
Kotak life insurance

50
Data Interpretation: -
On collecting the responses from the respondents that in which company they have their policy
and from those who don’t have any policy then of which company would they prefer to buy
policy, we came to know that majority of the population i.e. 111 out of 201 respondents which
is 55.2% people would like to invest in LIC, 4.5% i.e. 9 people would invest in IDBI Federal
life insurance, 3.5% chose to invest in Bharti Axa life insurance, 5% of people selected Max
life insurance, 9.5% population chose to invest in SBI life insurance and ICICI prudential life
insurance each, 3% i.e. 6 people would like to invest in Relaince life insurance, 4.5%
population would like to invest in HDFC life insurance, 4.10% from total 201 respondents
voted for kotak life insurance and only 1.5% population selected Bajaj alliance life insurance.

7. At which interval would you prefer to pay the premium?

Frequenc Percent Valid Cumulative

y Percent Percent
Monthly 36 17.9 17.9 17.9
Quarterly 29 14.4 14.4 32.3
Semi-annualy 31 15.4 15.4 47.8
Valid Annually 98 48.8 48.8 96.5
Single
7 3.5 3.5 100.0
Premium
Total 201 100.0 100.0

51
 At which interval would you prefer to
pay the premium?

4% 18%
Monthly

14% Quarterly
49%
Semi-annualy
15%
Annually
Single Premium

Data Interpretation:
On analysing the data of premium payment interval that respondents prefer we can interpret
that 18% or the respondents i.e. 36 people prefer to pay the premium monthly, 14.4%
respondents prefer to pay the premium quarterly i.e. every 3 months, 15.4% choose to pay
premium semi-annually,48.8% were comfortable by paying premium annually and 3.5%
respondents were such that they chose to pay their entire premium on one go i.e. single
premium

8. How will you prefer to buy life insurance policy?

Frequenc Percent Valid Cumulative

y Percent Percent
Through broker 32 15.9 15.9 15.9
Direct from company 95 47.3 47.3 63.2
Through agents 39 19.4 19.4 82.6
Valid
Through Online
35 17.4 17.4 100.0
methods
Total 201 100.0 100.0

52
 How will you prefer to buy life
insurance policy?

18% 16%
Through broker
19% Direct from company

47% Through agents

Through Online methods

Data Interpretation:
From the above data analysis we can interpret that out of 201 respondent 16% respondent that
is 32 people decided to buy policy through broker, 47.3% of population preferred buying policy
directly from the company, 19.4% preferred buying through agents, where as 17.4% of the total
population preferred buying through online method.

9. Which is the most important reason to buy a life insurance policy?

Frequenc Percent Valid Cumulative

y Percent Percent
For savings 56 27.9 27.9 27.9
For tax benefits 32 15.9 15.9 43.8
Valid A tool to protect
113 56.2 56.2 100.0
future
Total 201 100.0 100.0

53
 Which is the most important reason
to buy a life insurance policy?

28%
For savings
56%
For tax benefits
16%
A tool to protect future

Data Interpretation:
After collecting the responses and analysing it we came to know that 27.9% of the people
invested in the lic policy for saving, 15.9% of the people invested in policy for tax benefits
whereas majority of the people that is 56.2% considered buying policy as tool to protect future.

10. What kind of insurance policy/plan you would prefer to purchase?

Frequenc Percent Valid Cumulative

y Percent Percent
Child plans 7 3.5 3.5 3.5
Money back plans 61 30.3 30.3 33.8
Health plans 19 9.5 9.5 43.3
Term Plans 28 13.9 13.9 57.2
Valid Life insurance cover
51 25.4 25.4 82.6
plans
Unit linked insurance
35 17.4 17.4 100.0
plans(ULIP)
Total 201 100.0 100.0

54
 What kind of insurance policy/plan
you would prefer to purchase?
Child plans

17% 4% Money back plans

30%

25% Health plans

10%
14% Term Plans

Life insurance cover plans

Data Interpretation:
On analysing the above data we can interpret that only 3.5% respondent are interested in child
plans, whereas majority of the respondents30.3% are interested in investing in money back
plans, 9.5% people are interested in investing in health plans, 13.9% people are interested in
term plan, 25.4% people preferred to purchase life insurance cover plans, where as 17.4% of
total population choose to invest in united link insurance.

11. Do you feel private insurance companies are more efficient and
responsive then public companies.

Frequenc Percent Valid Cumulative

y Percent Percent
Strongly agree 33 16.4 16.4 16.4
Agree 32 15.9 15.9 32.3
Neutral 77 38.3 38.3 70.6
Valid Disagree 30 14.9 14.9 85.6
Strongly
29 14.4 14.4 100.0
Disagree
Total 201 100.0 100.0

55
 Do you feel private insurance
companies are more efficient and
responsive then public companies.

15% 16%
Strongly agree
15% Agree
16%
Neutral

38% Disagree
Strongly Disagree

Data Interpretation:
From the above data we can interpret that 16.4% people out of 201 respondent strongly agree
that private insurance company are more efficient and responsive that public company, 15.9%
people only agrees that private insurance company are more efficient and responsive that public
company, 38.3% of people are neutral to the decision that private insurance company are more
efficient and responsive that public company, 14.9% people disagree that private insurance
company are more efficient and responsive that public company, and 14.4% people strongly
disagree that private insurance company are more efficient and responsive that public company.

12. Gender

Frequenc Percent Valid Cumulative

y Percent Percent
Female 77 38.3 38.3 38.3
Valid Male 124 61.7 61.7 100.0
Total 201 100.0 100.0

56
 Gender

38%
Female
62%
Male

Data Interpretation:

Out of 201 responses collected 38.3% i.e. 77 respondent were female and 61.7% i.e 124
respondent were male

13. Age

Frequenc Percent Valid Cumulative

y Percent Percent
18-26 years 71 35.3 35.3 35.3
26-36 years 62 30.8 30.8 66.2
36-45 years 50 24.9 24.9 91.0
Valid
45 years and
18 9.0 9.0 100.0
above
Total 201 100.0 100.0

57
 Age

9%
35%
25%
18-26 years
26-36 years

31% 36-45 years

45 years and above

Data Interpretation:
From the above data of the age of the respondents 35.3% i.e 71 people were between 18-26
yrs, 30.8% i.e. 62 people were of age group between 26-36 yrs, 24.9% i.e 50 people were of
age group of between 36-45 , and only 9% respondents were above 45 yrs

14. Occupation
Frequenc Percent Valid Cumulative
y Percent Percent
Service 89 44.3 44.3 44.3
Business 69 34.3 34.3 78.6
Self
Valid 38 18.9 8.9 97.5
employed
Retired 5 2.5 2.5 100.0
Total 201 100.0 100.0

58
 Occupation

3%
19%
44% Service
Business

34% Self employed

Retired

Data Interpretation:
On studying the occupation of the respondents we can interpret that 44.3% were engaged in
service sector, 34.3% owned their own business, 8.9% were self-employed, and 205% were
retired.

15. Annual Income

Frequenc Percent Valid Cumulative

y Percent Percent
below 3 lacs rs 49 24.4 24.4 24.4
3-5 lacs rs 49 24.4 24.4 48.8
5-7 lacs rs 43 21.4 21.4 70.1
Valid
7-10 lacs rs 30 14.9 14.9 85.1
above 10 lacs rs 30 14.9 14.9 100.0
Total 201 100.0 100.0

59
 Annual Income

15%
24%
below 3 lacs rs
15% 3-5 lacs rs
5-7 lacs rs
24%
22% 7-10 lacs rs
above 10 lacs rs

Data Interpretation:

Considering the annual income of the respondents, 24.4% i.e. 49 from total 201 respondents
fall in the income slab of less than 3 lakhs a year, 14.9% of the respondents i.e. 30 people fall
under the income slab of more than 10 lakhs annually where as 24.4%, 21.4% and 14.9% of
the respondents fall in the income slab of 3-5 lakhs, 5-7 lakhs and 7-10 lakhs respectively.

60
5.2 Secondary Analysis:

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Age * What term of
investment do you 201 100.0% 0 0.0% 201 100.0%
prefer?

1. Age * What term of investment do you prefer? Cross tabulation

Count
What term of investment do you Total
prefer?
Short term Long term Both
18-26 years 20 22 29 71
26-36 years 18 21 23 62
Age 36-45 years 8 19 23 50
45 years and
3 3 12 18
above

Total 49 65 87 201

Data Interpretation:
Considering the combination of two factors i.e. age and what type of investment do respondents
prefer we have analysed that respondents falling in the age group between 18-26 years 20 of
them prefer short term investment, 22 respondents prefer long term investment, 29 of them
tend to choose both, respondents falling in the age group of 26-36 years, 18 respondents of
them prefer short term investment, 21 respondents prefer long term investment, 23 of them

61
 tend to choose both, respondents falling in the age group of 36-45 years, 8 respondents of them
prefer short term investment, 19 respondents prefer long term investment, 23 of them tend to
choose both, and respondents of the age 45 years and above,3 respondents of them prefer short
term investment, 3 respondents prefer long term investment, 12 of them tend to choose both.

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Occupation * Which is
the best form of 201 100.0% 0 0.0% 201 100.0%
investment?

2. Occupation * which is the best form of investment? Cross tabulation

Count
Which is the best form of investment? Total
Fixed assets Bank deposits Jewellery Securities i.e. Insurance
bonds, mutual
funds etc.
Service 24 16 14 26 9 89
Business 12 13 6 29 9 69
Occupation Self
9 3 2 21 3 38
employed
Retired 3 0 1 0 1 5
Total 48 32 23 76 22 201

62
Data Interpretation:
On analyzing the data after combining two factors, occupation and form of investment we have
interpreted that out of total 89 respondents belonging to service sector 24 of them consider
fixed assets as best form of investment, 16 prefer to invest in bank deposits, 14 prefer to choose
jewellery as best form of investment, 26 chose mutual funds and 9 selected insurance as best,
out of total 69 respondents owning their business 12 of them consider fixed assets as best form
of investment, 13 prefer to invest in bank deposits, 6 prefer to choose jewellery as best form of
investment, 29 chose mutual funds and 9 selected insurance as best, out of total 38 respondents
who are self employed 9 of them consider fixed assets as best form of investment, 3 prefer to
invest in bank deposits, 2 prefer to choose jewellery as best form of investment, 21 chose
mutual funds and 3 selected insurance as best, out of total 5 respondents who are retired 3 of
them consider fixed assets as best form of investment, 0 prefer to invest in bank deposits, 1
prefer to choose jewellery as best form of investment, 0 chose mutual funds and 1 selected
insurance as best

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Occupation * At which
interval would you
201 100.0% 0 0.0% 201 100.0%
prefer to pay the
premium?

63
 3. Occupation * At which interval would you prefer to pay the premium? Cross tabulation
Count
At which interval would you prefer to pay the premium? Total
Monthly Quarterl Semi- Annuall Single
y annualy y Premium
Service 20 11 15 41 2 89
Business 9 11 10 37 2 69
Occupatio
Self
n 7 7 5 17 2 38
employed
Retired 0 0 1 3 1 5
Total 36 29 31 98 7 201
Data Interpretation:
Considering the occupation of the respondents and how respondents prefer to pay the premium
at which interval we can interpret that out of 89 respondents belonging to service sector 20
prefer to pay the premium monthly, 11 of them prefer to pay quarterly, 15 pays semi-annually,
41choose to pay annually and 2 select to pay one a go i.e. single premium. Out of 69
respondents owning their business 9 prefer to pay the premium monthly, 11 of them prefer to
pay quarterly, 10 pays semi-annually,37 choose to pay annually and 2 select to pay one a go
i.e..single premium. Out of respondents who are self-employed 7 prefer to pay the premium
monthly, 7 of them prefer to pay quarterly, 5 pays semi-annually,17 choose to pay annually
and 2 select to pay one a go i.e. single premium. Out of 5 respondents who are retired none of
them prefer to pay the premium monthly, no one of them prefer to pay quarterly, 1 pays semi-
annually,3 choose to pay annually and select to pay one a go i.e. single premium
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Age * How will you
prefer to buy life 201 100.0% 0 0.0% 201 100.0%
insurance policy?

64
 4. Age * How will you prefer to buy life insurance policy? Cross tabulation
Count
How will you prefer to buy life insurance policy? Total
Through Direct from Through Through
broker company agents Online
methods
18-26 years 9 35 19 8 71
26-36 years 12 25 10 15 62
Age 36-45 years 8 22 9 11 50
45 years and
3 13 1 1 18
above
Total 32 95 39 35 201

Data Interpretation:

On considering the age factor and preference of the customers as to how will they buy the
policy we have interpreted that from 71 respondents of the age group of 18-26 years, 9 prefer
to buy through broker, 35 direct from the company, 19 through contacting agents and 8 through
online methods. 62 respondents of the age group of 26-36 years, 12 prefer to buy through
broker, 25 direct from the company, 10 through contacting agents and 15 through online
methods. 50 respondents of the age group of 36-45 years, 8 prefer to buy through broker, 22
direct from the company, 9 through contacting agents and 11 through online methods. 18
respondents of the age 45 and above, 3 prefer to buy through broker, 13 direct from the
company, 1 through contacting agents and 1 through online methods.

65
5.3 One-way anova: -

Hypothesis:

H0: - There is no association between factor considered while purchasing Life Insurance and
Income of the customer.

H1:- There is association between factor considered while purchasing Life Insurance and Income of
the customer.

ANOVA

Sum of df Mean F Sig.

Squares Square
Between
8.105 4 2.026 1.311 .267
Groups
Insurance coverage
Within Groups 303.029 196 1.546
Total 311.134 200
Between
22.390 4 5.598 3.616 .007
Groups
Low premium amounts
Within Groups 303.411 196 1.548
Total 325.801 200
Between
18.299 4 4.575 3.085 .017
Groups
Flexible withdrawals
Within Groups 290.606 196 1.483
Total 308.905 200
Between
37.720 4 9.430 8.040 .000
Groups
Risk involved
Within Groups 229.872 196 1.173
Total 267.592 200
Between
12.915 4 3.229 2.486 .045
Brand name of the life Groups
insurance company Within Groups 254.558 196 1.299
Total 267.473 200

66
 Between
9.156 4 2.289 1.649 .163
Groups
Wide range of products
Within Groups 272.048 196 1.388
Total 281.204 200
Between
28.786 4 7.197 5.571 .000
Groups
Security
Within Groups 253.194 196 1.292
Total 281.980 200
Between
18.232 4 4.558 3.915 .004
Groups
Tax benefits
Within Groups 228.166 196 1.164
Total 246.398 200
Between
13.497 4 3.374 2.431 .049
Groups
Saving option
Within Groups 272.006 196 1.388
Total 285.502 200
Between
14.254 4 3.563 2.314 .059
Riders(additional Groups
benefits) Within Groups 301.786 196 1.540
Total 316.040 200
Between
17.651 4 4.413 3.734 .006
Groups
Medical benefits
Within Groups 231.633 196 1.182
Total 249.284 200
Between
9.769 4 2.442 2.040 .090
Groups
Customer services
Within Groups 234.619 196 1.197
Total 244.388 200
Between
13.432 4 3.358 2.882 .024
Groups
Maturity period
Within Groups 228.369 196 1.165
Total 241.801 200

67
5.4 HYPOTHESIS ANALYSIS

Sr. Hypothesis One < Constatnt Result Outcomes

no way or
H0 anova > H0
1 There is no .267 > .05 Accepted There is no
association association
between between
insurance insurance
coverage and coverage and
income of the income of
customer. the customer.

2 There is no .007 < .05 Rejected There is

association association
between low between low
premium and premium and
income of the income of
customer. the customer.

3 There is no .017 < .05 Rejected There is

association association
between between
flexible flexible
withdrawals withdrawals
and income of and income
the customer. of the
customer.

4 There is no .000 < .05 Rejected There is

association association
between risk between risk
involved and involved and

68
 income of the income of
customer. the customer.

5 There is no .045 < .05 Rejected There is

association association
between brand between
name of life brand name
insurance of life
company and insurance
income of the company and
customer. income of
the customer.

6 There is no .163 > .05 Accepted There is no

association association
between wide between
range of wide range
products and of products
income of the and income
customer. of the
customer.

7 There is no .000 < .05 Rejected There is

association association
between between
security and security and
income of the income of
customer. the customer.

8 There is no .004 < .05 Rejected There is

association association
between tax between tax
benefits and benefits and
income of the income of
customer. the customer.

9 There is no .049 < .05 Rejected There is

association association

69
 between saving between
option and saving
income of the option and
customer. income of
the customer.

10 There is no .059 > .05 Accepted There is no

association association
between riders between
(additional riders
benefits) and (additional
income of the benefits) and
customer. income of
the customer.

11 There is no .006 < .05 Rejected There is

association association
between between
medical medical
benefits and benefits and
income of the income of
customer. the customer.

12 There is no .090 > .05 Accepted There is no

association association
between between
customer customer
services and services and
income of the income of
customer. the customer.

13 There is no .024 < .05 Rejected There is

association association
between between
maturity period maturity
and income of period and
the customer.

70
 income of
the customer.

71
Chapter 6: Findings

72
 Among the people not having life insurance the main reason behind it was long term
investment because the gains in this sector were only after the maturity of the policy
or death of the insured.
 Majority of the respondents were preferring long term investment but when it comes
to insurance people were attracted more towards fixed assets and mutual funds.
 More than half of the population were having life insurance for more than 10 years
which shows that that people are well aware of the benefits and have invested in as
security for the family.
 The most preferable company for life insurance is LIC with more than 50% customer
preference.
 Public sector is still dominating the life insurance sector with 70% market share but
its share is gradually decreasing every year as before 15 years public sector was
dominating with 98%.
 According to the survey the service quality, responsiveness of both public and private
sector are quite same as the people choosing private sector over public we same s the
people against it.
 During the client interactions we found out that depending upon the family size, their
income and interest in taking policy, the customers have up to 3 insurance policies in
majority.
 Considering the various factors like premium, policy term, rider benefits, services;
majority of the customers prefer to take policy of 10 to 15 years and also 15 years and
above.
 Out of all these plans, comparatively, Savings and Investments Plans that are
Guaranteed Money Back Plan, ULIP plans, Plan are the highest selling plans and
there is more customers’ preference towards these plans. Because of the better returns
in these plans as Money back plan offers guaranteed share of insured amount at a
fixed interval of time and ULIP being comparative same as mutual funds has flexible
withdrawals after the lock-in period.

73
Chapter 7: Recommendations

74
 The company should focus on its promotional activities so that the awareness of is
spread and trust among the customers is build.
 The company should start focusing on rural areas to expand its customer base.
 Company should focus on plans like Money back plans and ULIP plans as they are
more popular due to their flexible returns.

75
Chapter 8: Conclusion

76
 We have conducted a research report on “STUDY THE FACTOR AFFECTING
BUYING BEHAVIOUR OF CONSUMER TOWARDS LIFE INSURANCE IN
AHMEDABAD CITY” and have done primary data analysis through questionnaire by
doing survey of 201 respondents. And secondary data analysis through cross tabulation
and got hypothesis we have done one way anova between various features of insurance
to the income group of the customer.
 Life insurance is one of the pillars of personal finance, deserving of consideration by
every household. Life insurance does not simply apply a monetary value to someone’s
life. Instead, it helps compensate for the inevitable financial consequences that
accompany the loss of life. Strategically, it helps those left behind cover the costs of
final expenses, outstanding debts and mortgages, planned educational expenses and
lost income. But most importantly, in the aftermath of an unexpected death, life
insurance can lessen financial burdens at a time when surviving family members are
dealing with the loss of a loved one. In addition, life insurance can provide valuable
peace of mind for the policy holder. That is why life insurance is vital for the bread
winner of a single-income household, but still important for a stay-at-home spouse.

77
Bibliography

BEDI, H. S., & SINGH, D. P. (2011). AN EMPIRICAL ANALYSIS OF LIFE INSURANCE

INDUSTRY IN INDIA. International Journal of Multidisciplinary Research, 1(7), 62-73.
Retrieved from

http://zenithresearch.org.in/images/stories/pdf/2011/Nov/5_vol-1_issue-

7%20_%20%20%20%20HARPREET%20SINGH%20BEDI%20An%20emprical%20
%20analysis%20ofLife%20Insurance%20Industy%20in%20India.pdf

ARIF, M. (2015). Life Insurance Industries in India: Trends and Patterns. EUROPEAN
ACADEMIC RESEARCH, 2(11), 105-122. Retrieved from
http://euacademic.org/UploadArticle/1336.pdf

Allen, G. A. (1999). Consumer Satisfaction With Life Insurance: A Benchmarking Survey.

10(2), 35-49. Retrieved from http://www.afcpe.org/assets/pdf/vol1024.pdf

Ravi Akula, T. K. (2011). GROWTH OF ULIP POLICIES IN LIFE INSURANCE

SECTOR- A COMPARATIVE STUDY OF TRADITIONAL AND ULIP POLICIES. Indian
Journal of Commerce & Management Studies, 2(2), 190-199. Retrieved from
http://scholarshub.net/ijcms/vol2/issue2/Paper_20.pdf

R. Sridhar, D. S. (2013). Dynamics of Indian Insurance Industry – Role of Public and Private
Players. GRA - GLOBAL RESEARCH ANALYSIS, 2(7), 120-121. Retrieved from
https://www.worldwidejournals.com/global-journal-for-research-analysis-
GJRA/file.php?val=July_2013_1374044666_3e9ae_45.pdf

Dr. Dharmendra Mistrya, G. S. (2015). Determinants of Insurance Product Performance in

India. University Journal of Research, 1(1), 1-17. Retrieved from

78
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&
uact=8&sqi=2&ved=0ahUKEwiB6vG2pJzUAhUBQpQKHcvQAUIQFghKMAY&ur
l=http%3A%2F%2Fwww.ganpatuniversity.ac.in%2Fsites%2Fdefault%2Ffiles%2FJo
unrnal%2F7.pdf&usg=AFQjCNEoU5JhHxUqdjHNiuQHAvuhGe

Ganesh, A. (2015). Insurance awareness of India. International Journal of Applied Research ,

1(9), 100-103. Retrieved from

http://www.allresearchjournal.com/archives/2015/vol1issue9/PartB/1-8-87.pdf

HARNAM SINGH, D. M. (2011). AN EMPIRICAL STUDY OF LIFE INSURANCE

PRODUCT AND SERVICES IN RURAL AREAS. International Journal of
Multidisciplinary Research, 1(8), 290-305. Retrieved from
http://www.zenithresearch.org.in/images/stories/pdf/2011/Dec/zijmr/23_VOL%201_I
SSUE8_ZEN.pdf

Ganesh, A. (2015). Insurance awareness of India. International Journal of Applied Research ,

1(9), 100-103. Retrieved from

http://www.allresearchjournal.com/archives/2015/vol1issue9/PartB/1-8-87.pdf

S. Subashini, D. R. (2015). Lapsation in Life Insurance Policies. International Journal of

Advance Research in Computer Science and Management Studies, 3(4), 41-45. Retrieved
from http://www.ijarcsms.com/docs/paper/volume3/issue4/V3I4-0010.pdf

Jain, D. Y. (2013). Economic Reforms and World Economic Crisis: Changing Indian Life
Insurance market place. IOSR Journal of Business and Management, 8(1), 106-115.
Retrieved from http://www.iosrjournals.org/iosr-jbm/papers/Vol8-
issue1/O081106115.pdf?id=5235

79
Nena, D. S. (2013). Performance Evaluation of Life Insurance Corporation (LIC) of india.

International Journal of Advance Research in Computer Science and Management

Studies, 1(7), 113-118. Retrieved from

http://www.ijarcsms.com/docs/paper/volume1/issue7/V1I7-0021.pdf

Pandey, V. K. (2009). A STUDY OF BUYING BEHAVIOUR OF CONSUMERS

TOWARDS LIFE. -, 3(4), 1-10. Retrieved from

https://apps.aima.in/ejournal_new/articlespdf/gaurav_jaiswal_nrc3_24080992200933

89294.pdf

Upadhyay, P. (2013). Satisfaction of the Policy Holders Protection in Insurance.

International Journal of Advanced Research in Computer Science and Software

Engineering, 3(2), 32-40. Retrieved from

https://www.ijarcsse.com/docs/papers/Volume_3/2_February2013/V3I2-0109.pdf

Venkataramani.K, D. K. (2015). A study on the attitude of Consumers and Insurance A study

on the attitude of Consumers and Insurance A study on the attitude of Consumers and
Insurance A study on the attitude of Consumers and Insurance Agents towards the proposed
increase in FDI in Ins. International Journal of Scientific and Research Publications, 5(2), 1-
7. Retrieved from http://www.ijsrp.org/research-paper-0215/ijsrp-p38119.pdf

https://www.ibef.org/industry/insurance-sector-india.aspx

80
 Annexures

Dear Respondents,
To complete our MBA, we have proposed a project “TO STUDY THE FACTOR
AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS LIFE INSURANCE IN
AHMEDABAD CITY” Kindly help us by filling this questionnaire which would help us to
complete our Summer Internship Program (SIP). We would be grateful to you if you share
your few minutes answering these questions. Feel free to express, information furnished will
be kept confidential.
Moolraj Modhvadiya
Kiran Ramchandani GLSICT, AHMEDABAD
Name: ____________________________________
Gender:

A) Male

B) Female
Age:

A) 18-25 years
B) 26-35 years
C) 36-45 years
D) 45 and above

Occupation:
A) Service
B) Business
C) Self employed
D) Retired

Income Category:
A) 2 to 3 Lac /p. a
B) 3 to 5 Lac/p. a
C) 5 to 7 Lac/p. a
D) 7 to 10Lac /p. a
E) Above 10Lac /p. a

1. What term of investment do you prefer?

A) Short term

81
B) Long term

C) Both

2. Which is the best form of investment?

a) Fixed Assets
b) Bank deposits
c) Jewellery
d) Securities, i.e. Bonds, MFs
e) Shares
f) Insurance

3. Do you have life insurance policy?

A) Yes

B) No

4. Among the following which life insurance company would you prefer to buy / have bought
the policies?
A) LIC
B) IDBI FEDERAL life insurance
C) Bharti AXA life insurance
D) Max life insurance
E) SBI life insurance
F) ICICI Prudential Life insurance
G) Reliance life insurance
H) HDFC life
I) Kotak life insurance
J) Bajaj Allianz life insurance
K) Other: __________

5. (If yes) for how many years do you have your life insurance policy? (Section2)

A) Less than 5 years

B) 5 to 10 years
C) 10 to 15 years
D) Above 15 years

82
6. (If no) what is the reason for not having life insurance policy?
A) Lack of awareness
B) Long term investment
C) Risk involved
D) Fluctuating returns
E) Other

7) At which interval would you prefer to pay the premium?

A) Monthly
B) Quarterly
C) Semi-annually
D) Annually
E) Single premium

8. What are the features you consider before taking a new life insurance policy?
(1=least important, 2= not so important, 3= important, 4=very important, 5= most important).
1 2 3 4 5
A) Insurance coverage
B) Low premium amounts
C) Flexible withdrawals
D) Risk involved
F) Brand name of the life insurance company
G) Wide range of the products
H) Security
I) Tax benefits
J) Saving options
K) Riders(Additional Benefits)
L)Medical benefits
M) Customer Services
N) Maturity Period

9. What mode do you prefer to buy Life insurance policy?

A) Through broker
B) Direct from company
C) Through agent
D) Through online methods
E) Others

83
10. Which is the most important reason to buy a life insurance policy?

A) For saving purpose

B) For tax benefits
C) A tool to protect future
D) Other _________

11. What kind of insurance policy/plan you would prefer to purchase?

A) Child plans
B) Money back plans
C) Health plans
D) Term plans
e) Life insurance plans
f) Unit Linked Insurance Plans (ULIP)

12. Do you feel private insurance companies are more efficient and responsive than public
companies?
A) Strongly agree
B) Agree
C) Neutral
D) Disagree
E) Strongly disagree

THANK YOU

84