Lic
Content
EXECUTIVE SUMMARY
This report summarizes the results of the project done by Amanjeet Singh
Badesha a student of M.S.Ramaiah college of Arts, Science And Commerce, Bangalore
University supported by Life Insurance Corporation of India Bangalore
Today companies are facing their competition of this decade companies can
comfort their competition better if they can from a product and selling philosophy and
also meeting and satisfying customer needs. Companies need under stand the
determinants of customer value and satisfaction
Customers are satisfied when their expectations are met and delighted when their
expectations are exceeded. Satisfied customer sensitive and talk frequently about the
company. It involves building customer and not just building product.
It is also important to recognize that customer satisfaction is the best sought not
directly but as by product of customer problem solving customer satisfaction like
happiness is achieved by rendering substantial forms of assistance to rather than by direct
pursuit.
Customer satisfaction is central to the marketing concept with evidence of
strategic links between satisfactions and overall firm performs. It is now common to find
mission statements design around the satisfaction achievements in the market place.
Research on satisfaction has been commensurate with growing managerial
importance. Most studies have been conducted with in the overarching comparison
standards paradigms. Which posits that consumers hold pre-consumption product
standards from confirmation of disconfirmation perceptions combine these perspective
other than that of customer satisfaction paradigm, especially as examined through an
econometric of survey lens.
Although satisfaction has been conceptualized in terms of either a single
transaction of a series of interaction with a product over time. Whether the buyer is
satisfied after or before purchase depends on the offers performance in relation to the
buyer’s expectation.
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“Satisfaction is a persons feeling of pleasures or disappointment resulting from
comparing a products perceived performance or out come in relation to his/her
expectation”.
Many companies are aiming for high satisfaction because consumers who are
just satisfied still find it easy to switch when better offer comes along. Those who are
highly satisfied are much less ready to switch.
High satisfaction or delight creates an emotional affinity with the brand, not
just a rational preference. The result is high customer loyalty.
How do buyers form their expectations? Their expectations are influenced by
their past buying experience friend and associates, advice the marketer and competitor’s
expectations and promises if marketer raises expectations to high the buyers likely to be
appointed.
For consumer central companies consumer satisfaction is both a global and a marketing
tool. Companies that achieve high consumer satisfaction rating make sure that their target
market bonus it.
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CHAPTER 1
INTRODUCTION
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INTRODUCTION
With largest number of non-life insurance policies in force in the world,
Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of
15-20 per cent annually and presently is of the order of Rs 450 billion. Together with
banking services, it adds about 7 per cent of the country’s GDP. Gross premium
collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8
per cent of GDP.
Yet, nearly 80 per cent of Indian populations are without life insurance cover,
health insurance and non-life insurance continue to be below international standards. And
this part of the population is also subject to weak social security and pension systems
with hardly any old age income security. This it is an indicator that growth potential for
the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic
development as it provides long-term funds for infrastructure development and at the
same time strengthens the risk taking ability. It is estimated that over the next ten years
India would require investments of the order of one trillion US dollar. The Insurance
sector, to some extent, can enable investments in infrastructure development to sustain
economic growth of the country.
With a large capital outlay and long gestation periods, infrastructure projects
are fraught with a multitude of risks throughout the development, construction and
operation stages. These include risks associated with project implementation, including
geological risks, maintenance, commercial and political risks. Without covering these
risks the financial institutions are not willing to commit funds to the sector, especially
because the financing of most private projects is on a limited or non-recourse basis.
Insurance companies not only provide risk cover to infrastructure projects,
they also contribute long-term funds. In fact, insurance companies are an ideal source of
long-term debt and equity for infrastructure projects? With long-term liability, they get a
good asset-liability match by investing their funds in such projects.
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IRDA regulations insurance companies to invest not less than 15 percent of
their funds in infrastructure and social sectors. International Insurance companies also
invest their funds in such projects.
Insurance is a federal subject in India. There are two legislations that govern the
sector- The Insurance Act- 1938 and the Act- 1999.
PRESENT SCENARIO:
The Government of India liberalized the insurance sector in March 2000 with
the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting
all entry restrictions for private players and allowing foreign players to enter the market
with some limits on direct foreign ownership. Under the current guidelines, there is a
proposal to increase this limit to 49 percent. Premium rates of most general insurance
policies come under the purview of the government appointed Tariff Advisory committee.
The opening up of the sector is likely to lead to greater spread and deepening of
insurance in India and this may also include restructuring and revitalizing of the public
sector companies. A host of private Insurance companies operating in both life and nonlife segments have started selling their insurance policies since 2001.
NON-LIFE INSURANCE MARKET:
In December 2000, the GIC subsidiaries were restructured as independent
insurance companies. At the same time GIC was converted into a national re-insurer. In
July 2002, Parliament passed a bill, de linking the four subsidiaries from GPresently there
are 12 general insurance companies with 4 public sector companies and 8 private
Insurers. Although the public sector companies still dominate the general insurance
business, the private players are slowly gaining a foothold. According to estimates,
private insurance companies have a 10 percent share of the market, up from 4 percent in
2001. In the first half of 2002, the private companies booked premiums worth Rs 6.24
billion. Most of the new entrants reported losses in the first year of their operation in
2001. Insurance costs constitute roughly around 1.2-2 percent of the total project costs.
Under the existing norms, insurance premium payments are treated as part of the fixed
costs. Consequently they are treated as pass-through costs for tariff calculations.
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For Projects costing up to Rs. 1 Billion, the Tariff Advisory Committee sets the
premium rates, for Projects between Rs.1 billion and Rs. 5 billion the rates are set in
keeping with the committee’s guidelines, and projects above Rs15 billion are subjected to
re-insurance pricing. It is the last segment that has a number of additional products and
competitive pricing. Insurance, like project finance, is extended by a consortium normally
one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a
proportionate percentage of the premium. The other companies share the remaining risk
and premium. The policies are renewed usually on an annual basis through the invitation
of bids. Of late, with IPP projects fizzling out, the insurance companies are turning on
again to old hands such as NTPC, NHPC and BSES for business.
RE-INSURANCE BUSINESS:
Insurance companies retain only a part of the risk (less than 10 per cent)
Assumed by them, which can be safely borne from their own funds. The balance risk is
re-insured with other insurers. In effect, therefore, re-insurance is insurer’s insurance. It
forms the backbone of the insurance business. It helps to provide a better spread of risk in
the international market, allows primary insurers to accept risks beyond their capacity
settle accumulated losses arising form catastrophic events and still maintain their
financial stability.
While GIC’s subsidiaries look after, general insurance, GIC itself has been the
major reinsurer. Currently, all insurance companies have to give 20 per cent of their
reinsurance business to GIC. The aim is to ensure that GIC’s role, as the national reinsure
remains unhindered. However, GIC reinsures the amount further with international
companies such as Swiss (Switzerland), Munichre (Germany), and Royal (UK).
Reinsurance premiums have seen and exorbitant increase in recent years, following the
rice in threat perceptions globally.
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LIFE INSURANCE MARKET:
The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of life
insurance products was 19 percent of the total 400 million of the insurable population.
The state owned LIC sold insurance as a tax instrument, not as a product giving
protection. Most customers were under- insured with no flexibility or transparency in the
products. With the entry of the private insurers the rules of the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly
9 percent of the market in terms of premium income. The new business premium of the
12 private players has tripled to Rs. 1000 crore in 2002-03 over last year. Meanwhile,
state owned LIC’s new premium business has fallen.
Innovative products, smart marketing and aggressive distribution. That’s the
triple whammy combination that has enabled fledgling private insurance companies to
sign up Indian customers faster than anyone ever expected. Indians, who have always
seen life insurance as tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer.
The growing popularity of the private insurers shows in other ways. They are
coining money in new niches that they have introduced. The state owned companies still
dominate segments like endowments and money back policies. But in the annuity or
pension products business, the private insurers have already wrested over 33 percent of
the market. And in the popular unit-linked insurance schemes they have a virtual
monopoly, with over 90 percent or the customers.
The private insurers also seem to be scoring big in other ways they are
persuading people to take out bigger policies. For instance, the average size of a life
insurance policy before privatization was around Rs.50, 000 has risen to about Rs.80,
000. But the private insurers are ahead in this game and the average size of their polices
is around Rs 1.1 Lakhs to Rs1.2 Lakhs-way bigger than the industry average.
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STARTING OF INSURANCE INDUSTRY IN INDIA:
Insurance industry has always been a growth-oriented industry globally. On the
Indian scene too, the insurance industry has always recorded noticeable growth vis-à-vis
other Indian industries.
Triton Insurance Co Ltd. was the first general insurance company to be
established in India in 1850, whose shares were mainly held by the British
The first general insurance company to be set up by an Indian was Indian
Mercantile Insurance Co. Ltd., which was established in 1907. There emerged many a
player on the Indian scene thereafter.
The general insurance business was nationalized after the promulgation of
General Insurance Business (Nationalization) Act, 1972. The General Insurance
Corporation of India (GIC) and its 4 subsidiaries undertook the post-nationalization
general insurance business.
Oriental Insurance Company Limited
New India Assurance Company Limited
National Insurance Company and
United India Insurance Company Limited
Towards the end of 2000, the relation ceased to existed and the four Companies
are, at present, operating as independent companies. The Life Insurance Corporation
(LIC) was established on 01.09.1956 and had been the sole corporation to write the life
insurance business in India.
The Indian insurance industry saw a new sun when the Insurance Regulatory &
Development Authority (IRDA) invited the applications for registration as insurers in
August 2000. With the liberalization and opening up of the sector to private players, the
industry has presented promising prospects for the coming future. The transition has also
resulted into introduction of ample opportunities for the professionals including
Chartered Accountants.
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The Indian Insurance industry is featured by the attributes:
Low market penetration;
Ever-growing middle class component in population.
Growth of consumer movement with and increasing demand for better insurance
products;
Inadequate application of information technology for business.
Adequate fillip from the Government in the form of tax incentives to the insured, etc.
The industry formations need to keep vigil on these characteristics of the Indian
market and formulate their strategies to entail maximum contribution to the output of the
sector.
The Indian life and non-life insurance business accounted for merely 0.42
percent of the world’s life and non-life business in 1997. The figures of the basic
parameters of the industry’s performance viz. Insurance Density and Insurance
Penetration also are evident of the hitherto existing low-yield Indian market conditions.
The term “Insurance Penetration” broadly measures the contribution of the
insurance industry in relation to a nation’s entire economic productivity. The figure of
premium vis-à-vis the GDP of 1999 stood at 0.54 percent for non-life insurance business
and 1.39 percent for the life insurance business. The term “Insurance Density” reflects the
Insurance purchasing power. The premium per capital in India amounted to US $ 2.40 for
non-life insurance and US $ 6.10 for life insurance in 1999 but with the deregulation of
the sector, a sea change in the scene is most likely.
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WHAT CAN THE INSURANCE INDUSTRY DO?
Educate policyholders about financial risks associated with global warming.
Support stricter building code enforcement and other measures that minimize the
impact of severe weather.
Promote energy efficiency and renewable to cut greenhouse gases and reduce
losses from natural disasters.
Lead by example as a voluntary member of EPA’s ENERGY STAR® Program
and the Rebuild America Program.
Selecting the right insurance company is an important financial decision. One
important consideration is the financial strength of the insurer, if the company cannot pay
future claims or benefits, other considerations become unimportant.
Financial strength ratings represent an analysis of a wide variety of risks that
could affect an insurer’s long-term survival. Insurance companies can ail or cease to
operate due to inadequate financial capabilities, Investment companies help the small
savers get the benefits of investment in high growth corporate securities by pooling their
savings\ and investing the same in a professional way, these investment companies raise
funds through issue of shares and debentures accepting fixed deposits issuing certificates
of cash etc.
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1.1 BACKGROUND OF THE STUDY
The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of life
insurance products was 19 percent of the total 400 million of the insurable population.
Being the market leader in the insurance sector the LIC have to satisfy their customer to
remain in the position. The study of customer satisfaction is done to get a picture about
the whether the customer is satisfy with insurance given by the company and to identify
the which age group of people are mostly under taking the insurance policy and what are
there income groups, and what are the other benefits the are looking forward for the
LIC,and they have the brand awareness about the company .
1.2 STATEMENT OF THE PROBLEM
Satisfaction of the customer is very important for any industry or company to
service in the market .the present study is all about “customer satisfaction towards lic
products”. this is an analytical and empirical study about consumer satisfaction survey
towards lic products. this study is made to know various factors, which satisfy and
dissatisfy consumer and to know various problems involved in relating to the insurance
plans, which is faced by the consumer.
1.3 NEED AND IMPORTANCE, SCOPE &LIMITATION OF STUDY
As the study is related to “customer satisfaction towards LIC products “. We
consider LIC policyholders as the customers who belong to the Bangalore city because
those who have the LIC policy can provide a deeper perspective of their experience and
preferences and also the information about the services of the LIC office and the feature
of the policy that they would like for the future services and the policies to have
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LIMITATIONS OF STUDY
The customers of LIC policies were selected from Bangalore city and hence the
study is restricted to Bangalore city.
Some customers who were busy were not able to provide me the information
about the problems faced by them.
Responses given by the respondents may be biased sometimes.
The study is biased on certain assumptions like the responses of one-person
probly more peoples views.
Since descriptive research method was used for this project study, the study might
not hold well over a period of time because of eve r changing attitudes and
behavioral changes of retailers and consumers.
1.4 OBJECTIVES OF THE STUDY
To know the satisfaction level of customers.
To suggest LIC Of India regarding customer satisfaction level & help in forming
effective marketing strategies
To identify the present customer for new service
To understand the awareness level of customer regarding various LIC schemes
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1.5 COMPANY PROFILE
The corporation has been established by an act of parliament, which received the
assent of the president on 18th June 1956. Act came into force on 1july 1956 and the
corporation is having exclusive privilege of carrying on life insurance business in India.
The corporation is an autonomous body and has necessarily to run on sound business
principals.
The corporation which was mainly transiting insurance on individual lives, later
on started doing insurance on group bases under its pension and group schemes portfolio.
The group schemes provide life insurance cover at a very low cost and a large number of
needy people are given life insurance protection under group schemes
In consultation with the central government, LIC has step up a social security
fund out of the funds transferable to central govt after valuation with effect from 15-8-87.
this fun is utilized to provide social security for the weaker and vulnerable sections of
social. Families of 1 crore landless agricultural laborers are now provided free life
insurance cover for Rs 2000/- each under the scheme over crore 1.5 beneficiaries of the
integrated rural development programmes also provided free insurance cover of Rs
5000/- under the scheme which effects from 1-4-88.beside ,the social security fund
subsides 50% of the premium insurance cover of Rs5000/- on handloom viewers
,rickshaw pullers and drivers and such other socially disadvantageous section of the
society during 1989 , corporation diversified its activities in many directions LIC mutual
funds was setup as a separate trust with a view to providing easy necessability of the
investment area including stock market in the country to one and all, especially small
investors in rural and urban areas . The corporation launched LIC housing finance ltd on
19-6-89, as it ‘s subsidiary
along with UTI, IFCI and ICICI with a with a view to
making a greater thrust
in the housing field by providing long –term finance to help realize the objectives of the
national housing policy. An offshore company, LIC international was incorporated in
Bahrain in July 1989 to transact life insurance business amongst non-resident Indian
nationals in Middle East countries.
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WHAT IS INSURANCE
Insurance is a financial service for collecting the saving of the public and
providing them risk coverage .the risk may be certain events like death ,retirement
,pension, education ,marriage ,etc, or uncertain events ,like theft ,accident fire, ill health
etc.Marine insurance is one category which covers risk of sea voyage , of shipping ,cargo,
etc.motorcar,scooter,and two-wheeler and three wheelers are also provided with
insurance ,called vehicle insurance ,building insurance from theft ,etc and crop insurance
is the other categories of risk coverage introduced by LIC
WHY INSURANCE IS NEEDED
They help providing protection to investors from some certain or uncertain risks.
These are contractual savings, which the investors are forced to provide for this will
constitute voluntary involvement in savings, but turn into compulsory or forced savings
through contractual obligation. These are generally medium and long-term savings and
the investment of this type provide a low return but needed risk coverage of
life,accident,fire etc.GROWTH OF LIFE INSURANCE BUSINESS
As a financial intermediary, we have the interest in the growth of LIC in respect
of its efforts to mobilize savings .the volume of funds at this disposal, and the magnitude
of its total investment.
Today LIC is one of the most important financial intermediaries in India. Savings
of the house-hold sector in type LIC investment media as a percentage of total house-hold
savings in the form of financial assets increased from 5.5% in 1956-57 to 12.3% in 196061 there after, it declined to 8% in 1965 -66 it again increased slightly to 9.8% in 1970-71
and it was about 7.0% in 1988-89 .from a different angle, the growth of LIC’s presented
in table as fallows:
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INVESTMENT PATTERNS
1. Electricity and water drainage
2. Mortgage loans
3. Loans to the policyholders
PROMOTIONAL BENEFITS OF LIC
ON VESTING:
The notional cash option together with reversionary Bonuses and add final
additional Bonuses with or without 25% communication will be compulsory converted
into annuity having following options:
ANNUITY OF LIFE:
With guaranteed period of 5 p.a. 15, 20 years joint life and last survivor annuity
to the annuitant and his/her spouse, under which annuity payable to the spouse on death
of the purchase price. Life3 annuity with annuities increasing at simple rate of 3% per
annum. The annuity rate will be that available under the version of the New Jeevan
Akshaya plan current at the rate of vesting. Aggregate of 3% will be available on the
purchase price of the New Jeevan Akshaya policy. Option for the annuity type is to be
exercised at least 6 months before the date of vesting.
DURING DEFERMENT:
A term rider option will be available. On the death of the policy holder who has
opted for the term assurance rider, the term assurance sum assured along with all
premiums paid up to the date of death accumulated at the rate of 5% p.a. compounding or
at a such rates as decided by the corporation from time to time, will be paid too the
nominee. Term rider option will be available only on annual premium plan.
REBATES:
Premium will be payable yearly, quarterly or monthly (including sss) or by
single premium. Mode rebates @ 2.6%, 1.3% and 0.5% of the tabular annual premium
will be available for yearly, half-yearly and quarterly premiums.
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PAID UP, GUARANTEED AND SPECIAL SURRENDER VALUE FOR
ANNUAL PREMIUM PLANS:
The guaranteed surrender value will be equal to 90% of all premiums paid
excluding the first year premium, all term assurance premium and extra premium (if any).
This will be allowed after two full years have been completed from the date of
commencement. However, the policy cannot be surrendered after the annuity vests.
FOR SINGLE PREMIUM PLAN:
The guaranteed surrender value will be 90% of the single premium paid.
Surrender will be allowed 2 years after the commencement of the policy.
SERVICES PROVIDED BY LIC
1. GUARANTEED SURRENDER VALUE
2. LOAN
3 ACCIDENT BENEFIT
4 SALARY SAVING SCHEME
5. ALTERATIONS:
6. DUPLICATE POLICY
7. REVIVALS
8. ORDINARY REVIVAL
9. REVIVAL ON NON-MEDICAL BASIS
10. REVIVAL ON MEDICAL BASIS
As it is the most reputed company of India exciting since 1956 and as the times
passes the awareness among the people also increase and started doing there insurance,
now the different policies have came into the market and having the different benefits
providing according to the needs of the customer.
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1.6 Respondent’s profile
Respondent of different age group has different perception towards life, so according to
the perception they are doing there insurance. In the survey, I found there there are more
people in the age group between 20 to 30 are more with the average salary of re10000 to
15000and majority of people belongs to the business class and employees who are much
concern about the Insurance Policies
Respondent Profile is as follows –
1 Businessman
2 Employees
3 Housewives’s
4 Students
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CHAPTER 2
REVIEW OF LITERATURE
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2.1 PURPOSE:
1. The purpose of study is the customer satisfaction towards the company.
2. It is done to get a picture about their commitment towards customer satisfaction,
3.For developing stronger brands and loyalty with ultimate customer and solving their
problems.
2.2 METHODOLOGY:
SAMPLE SIZE: A part of the population, which is selected for obtaining the necessary
information. It refers to the number of people surveyed for this topic. In this case 100
people were contracted and response drawn..
TECHNIQUE: It is the way in which the samples are selected.
Convenience Sampling
Convenience Sample is one in which the only criterion for selecting the sampling units is
the convenience of the sampler.
SOURCES OF DATA COLLECTION:
The required data was collected by using both
1) PRIMARY DATA:
Questionnaire
Structured Direct Interviews
2) SECONDARY DATA:
Journals
Information from company through reports
internet
2.3 REFERENCE OF BOOKS, JOURANLS, MAGAZINE &
PREVIOUS REPORT ON THE SAME TOPIC
1.MARKETING MANAGEMENT: BY PHILIP KOTLER
2.RESEARCH METODOLOGY: BY C.R.KOTARI
3.CONSUMER BEHAVIOUR: LEON SCHIFFMAN
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CHAPTER 3
METHODOLOGIES
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3.1 Types of Research:
The type of research used in this project is a Descriptive research design. The
major purpose of descriptive research is a description of the state of the affairs, as it exists
at present. Thus a Descriptive study is a fact-finding investigation with adequate
interpretation. It is the simplest type of research. It focuses on particular aspects or
dimensions of the problem studied. It is so designed that it gathers descriptive
information and provides information for formulating more sophisticated studies. There
is a cause effective relationship.
The criteria for selecting this particular design are that, the problem of the
project must be described and not arguable. The data collected is amenable to statistical
analysis and has accuracy and significance. It is possible to develop valid standards of
comparison. It lends itself to the verifiable procedure of collection and analysis of data.
Descriptive study objectives aim at identifying the various characteristics of a
company problem under study. It can reveal potential relationships between variables
with exploratory research.
3.2 SamplingTecquniue:
It is the way in which the samples are selected.
Convenience Sampling
Convenience Sample is one in which the only criterion for selecting the sampling units is
the convenience of the sampler.
3.3 Sample size:
A part of the population, which is selected for obtaining the necessary
information. It refers to the number of people surveyed for this topic. In this case 100
people were contracted and response drawn.
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3.4 Sample description –
A Sampling unit is the basic unit containing the elements of the population
to be sampled. It refers to individuals who are to be surveyed in the study it is the
customer who is having the LIC policy from Bangalore LIC branch office.
3.5 Instrumentation Techniques:
The project is a survey and hence the instrumentation techniques used is
mainly questionnaire. The data collected is analyzed and so tabulation technique is used,
and graphs are also prepared for the data tabulated.
3.6 Collection of Data:
The required data was collected by using both
1) PRIMARY DATA:
Questionnaire
Structured Direct Interviews
2) SECONDARY DATA:
Journals
Information from company through reports
internet
PRIMARY DATA/ SURVEY DATA:
Survey research is the systematic gathering of information from respondents
for the purpose of understanding and/or predicting some aspect of the behavior of the
population of interest. Primary data was collected by using Questionnaire and Structured
Direct Interviews.
QUESTIONNAIRE:
In survey mode of data collection, questionnaire is a popular means of data
collection instrument. A questionnaire uses a structured, standardized format of data
collection to record verbal responses to questions. Particularly when the population to be
covered is very large and the study wishes to collect data about specific aspects of
sumers’ awareness, attitude, opinions, prior and present behavior, it is recommended to
design a questionnaire. The exact format and sequence of the questionnaire will greatly
depend on the study objective and the method of administration of the questionnaire.
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Advantages of questionnaires:
(i)
Versatility: The respondents can be probed on a wide diversity of issues by
questioning.
(ii)
Speed and Cost: It is usually cheaper and faster than observing.
(iii)
Ease of Communication: Since the questions are formulated in advance, all
the required information can be obtained in an orderly and systematic manner.
The exact wording of the questions can be carefully worked out to reduce the
possibility of ambiguity and misunderstandings.
(iv)
Control: Since same questions are put before all respondents in the same
order, it offers maximum control on the interviewing process and information
content.
Secondary Data:
Secondary data are data that were developed for some purpose other than helping
to solve the problem at hand.
Advantages:
Secondary data can be gathered quickly and inexpensively, compared to primary
data.
Disadvantages:
Availability: for some marketing problems no secondary data are available.
Relevance: the extent to which the data fit the information needs of the research
problem.
Accuracy: The data available may be inaccurate.
Sufficiency: The data available may not be sufficient for the required research problem.
The sources of secondary Data used are
Journals.
Information from company through reports .
Internet.
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CHAPTER 4
DATA ANALYSIS &
INTERPRETATION
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ANALYSIS AND INTERPRETATION OF DATA
The data collected through the questionnaire are put together and classified, after
classifying; the work is done .the following table and graphs are prepared from the
gathered data helps to analyses various aspects and draw interference.
CONCEPT: The concept behind this table is to know the classification of customer
based on age
TABLE NO -1
CLASSIFICATION OF CUSTOMER BASED ON AGE
INSURANCE
NUMBER
OF
PERCENTAGE
AGE GROUP RESPONDENTS
10 – 20
10
10
20 – 30
30 – 40
40 – 50
30
20
20
30
20
20
50 above
20
20
100
100
ANALYSIS: From the above Table it is clear that
Majorities of respondents belongs to the age group of 20 to 30 i.e.,30% of
respondents
Least number of respondents belongs to the age group of 10 to 20 i.e., 10% of
respondents.
INTERPRETATION: Majority of the business is obtained from the age group of
20 to 30 i.e. 30% of business.
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GRAPH-1
PIE CHART SHOWING THE CLASSIFICATION OF
CUSTOMERS BASED ON AGE
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CONCEPT: The concept behind this table is to know the family monthly income of
respondents
Table No- 2
FAMILY MONTHLY INCOME OF THE RESPONDENTS
INCOME
NUMBER OF
PERCENTAGE %
RESPONDENTS
BELOW 5000
22
22
5000 – 10000
26
26
10000 – 15000
32
15000 &
20
32
20
ABOVE
100
ANALYSIS: From the above table it is clear that,
100
A significant 32% of the respondents in the above table earn 10000 to 15000
monthly
20% of the respondents earn above 15000 monthly.
INTERPRETATION: Majority of the business is obtained from the people who
have the income of 10000 to 15000 monthly i.e. 32% of the business.
M.S.R.C.A.S.C BANGALORE
27
GRAPH-2
PIE CHART SHOWING FAMILY MONTHLY INCOME OF
RESPONDENTS
CONCEPT: The concept behind this table is to know the occupation of the
respondents.
TABLE -3
M.S.R.C.A.S.C BANGALORE
28
OCCUPATION OF THE RESPONDENTS
OCCUPATION
NUMBER OF
PERCENTAGE %
RESPONDENTS
BUSINESS MAN
20
20
EMPLOYEE
36
36
STUDENTS
18
18
HOUSEWIFE
14
14
OTHERS
12
12
ANALYSIS: From the above it is clear that,
Majorities of the respondents are employees and businessmen , i.e. 36% and 20%
of the respondents
12% of the respondents belongs to the others and retired people
INTERPRETATION: Majority of the business is obtained from the employees and
businessmen i.e. 36% and 20% of the business respectively.
M.S.R.C.A.S.C BANGALORE
29
GRAPH-3
PIE CHART SHOWING OCCUPATION OF THE
RESPONDENTS
CONCEPT: The concept behind this table is to know the source pf
information about the LIC product.
M.S.R.C.A.S.C BANGALORE
30
TABLE NO-4
SOURCE OF INFORMATION ABOUT THE LIC PRODUCT
SOURCE OF
INFORMATION
NUMBER OF
RESPONDENTS
PERCENTAGE %
ADVERTISEMENT
10
10
FRIENDS / RELATIVES
25
25
LIC AGENTS
65
65
100
100
ANALYSIS: This table shows how respondents got the information about the life
insurance policy. From the above table it is clear that,
Majority of the respondents came to know about the product through agents, i.e.
65% of the respondents.
Only 10% of the respondents came to know about the product by advertisement.
Least number of customers came to know about the policies by advertisement.
INTERPRETATION: Majority of the awareness of the product is given from agents
(i.e.65% of the respondents).
M.S.R.C.A.S.C BANGALORE
31
GRAPH-4
PIE CHART SHOWING THE SOURCE OF INFORMATION
ABOUT THE LIC PRODUCTS.
CONCEPT: The concept behind this table is to know the consumer
awareness about the latest LIC polices .
TABLE NO – 5
M.S.R.C.A.S.C BANGALORE
32
CONSUMER AWARENESS ABOUT THE LATEST LIC POLICES
LIC POLICIES
NUMBER OF
RESPONDENTS
PERCENTAGE %
JEEVAN ANAND
45
45
NEW JEEVAN
SHREE
25
25
NEW JEEVAN
SURAKSHA
20
20
NEW BIMA NIVESH
10
10
ANALYSIS: From the above table it is clear that,
Majority of the respondents know about the policies Jeevan Anand and New
Jeevan Shree
Least number of customers are aware of new Jeevan Suraksha and New Bima
Nivesh.
LIC should create the awareness of the new policies through advertisement.
INTERPRETATION: Majority of the people know about the jeevan anand and new
jeevan shree policies i.e. 45% and 25% of respondents.
M.S.R.C.A.S.C BANGALORE
33
GRAPH-5
PIE CHART SHOWING CONSUMER AWARENESS
ABOUT THE LIC –PRODUCTS
CONCEPT: The concept behind this table is to know that is there any
variation in expectation due to services.
TABLE – 6
IS THERE ANY VARIATION IN EXPECTATION
M.S.R.C.A.S.C BANGALORE
34
VARIATION IN
SERVICE
NUMBER OF
RESPONDENTS
PERCENTAGE %
YES
20
20
NO
80
80
100
100
ANALYSIS:From the above table it is clear that,
20 respondents have a variation in expectation due to service.
80 respondents have no variation in expectation due to service.
INTERPRETATION: From this we can say that the service provided by Life
Insurance Corporation of India is good.
M.S.R.C.A.S.C BANGALORE
35
GRAPH-6
PIE CHART SHOWING THE VARIATION IN THE
EXPECTATION OF RESPONDENTS
CONCEPT: The concept behind this table is to know the satisfaction of
overall performance of the LIC products.
TABLE NO – 7
M.S.R.C.A.S.C BANGALORE
36
SATISFACTION OF OVERALL PERFORMANCE OF THE LIC
PRODUCTS
PERFORMANCE
NUMBER OF
RESPONDENTS
PERCENTAGE
SATISFIED
92
92
DISSATISFIED
8
8
100
100
ANALYSIS:From the above table it is clear that,
Majority of the respondents are satisfied with the overall performance of LIC of
India i.e. 92%
Only 8% of the respondents are not satisfied with the premium and services
provided by LIC of India
INTERPRETATION: Majority of the people are satisfied with the overall
performance of LIC of India.
M.S.R.C.A.S.C BANGALORE
37
GRAPH-7
PIE CHART SHOWING SATISFACTION OF OVERALL
PERFORMANCE OF THE LIC OF INDIA
CONCEPT: The concept behind this table is to know how respondents feel
about the after sales service
TABLE NO -8
M.S.R.C.A.S.C BANGALORE
38
HOW DO RESPONDENTS FEEL ABOUT THE SERVICE AFTER
INSURANCE
SERVICE
NUMBER OF
RESPONDENTS
PERCENTAGE%
GOOD
75
75
AVERAGE
15
15
POOR
10
10
ANALYSIS: This table shows the customer response to that after sales service
provided
by the agents of the LIC office ,from the above table it is clear that,
Majorities of the respondents say that services after Insurance is good
Only 10% of the respondents says that service after Insurance is poor
INTERPRETATION: Service after Insurance provide by LIC is really good.
M.S.R.C.A.S.C BANGALORE
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GRAPH-8
PIE CHART SHOWING HOW DO RESPONDENTS FEEL
ABOUT THE SERVICE AFTER INSURANCE
CONCEPT: The concept behind this table is to know recommendation for
LIC policy by various respondents
TABLE NO -9
M.S.R.C.A.S.C BANGALORE
40
RECOMMENDATION FOR LIC POLICY BY VARIOUS
RESPONDENTS
RECOMMENDATION
NUMBER OF
PERCENTAGE%
RESPONDENTS
YES
98
98
NO
2
2
100
100
ANALYSIS: This table shows the number of respondents recommended for LIC policy
to their friends and relatives from the above table it is clear that,
98% of the respondents will recommend LIC policy to their friends and relatives
Only 2%of the respondents will not recommended LIC policy to their friends and
relatives.
INTERPRETATION: the policyholders give Majority of the awareness of the
product to their friends and relatives
GRAPH-9
M.S.R.C.A.S.C BANGALORE
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PIE CHART SHOWING RECOMMENDATION FOR LIC
POLICY FOR VARIOUS RESPONDENTS
CONCEPT: The concept behind this table is to know are respondents
Satisfied with the range of products offered by LIC of India
TABLE NO - 10
M.S.R.C.A.S.C BANGALORE
42
ARE RESPONDENTS SATISFIED WITH THE RANGE OF
PRODUCTS OFFERED BY LIC OF INDIA
SATISFACTION
NUMBER OF
RESPONDENTS
PERCENTAGE
YES
93
93
NO
7
7
100
100
ANALYSIS: From the above it is clear that,
93% of the respondents are satisfied with the range of products offered by LIC
of India.
Only 7% of the respondents are not satisfied with the range of products
offered by LIC of India.
INTERPRETATION: Majority of the respondents are satisfied with the wide
range of products offered by the LIC
M.S.R.C.A.S.C BANGALORE
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GRAPH-10
PIE CHART SHOWING SATISFACTION OF THE
RESPONDENTS WITH THE RANGE OF PRODUCTS
OFFERED BY LIC OF INDIA
CONCEPT: The concept behind this table is to know is any request of the
respondentsis pending with LIC office
TABLE NO-11
IS ANY REQUEST OF THE RESPONDENTS IS PENDING WITH
LIC OFFICE
M.S.R.C.A.S.C BANGALORE
44
PENDING WORK
NUMBER OF
RESPONDENTS
PERCENTAGE %
YES
1
1
NO
99
99
100
100
ANALYSIS: From this table it is clear that
99% of the respondents don’t have any work pending with the LIC office
Only 1% of the respondents are having pending work with the LIC office
INTERPRETATION: the LIC office satisfies all the request of the respondents
GRAPH-11
M.S.R.C.A.S.C BANGALORE
45
PIE CHART SHOWING THE REQUEST OF THE
RESPONDENTS PENDING WITH LIC OFFICE
CONCEPT: The concept behind this table is to know respondents
Awareness about the LIC brands
TABLE NO-12
RESPONDENTS AWARENESS ABOUT THE LIC BRANDS
M.S.R.C.A.S.C BANGALORE
46
POLICY NAME
NUMBER OF
RESPONDENTS
PERCENTAGE%
MONEY BACK
POLICY
65
65
ENDOWMENT
POLICY
20
20
OTHER NEW
POLICIES
15
15
100
100
ANALYSIS: From the above table it is clear that,
Majorities of the respondents are aware of money back policies.
Least number of respondents is aware of new policies.
INTERPRETATION: Majority of the respondents is aware of money back policies.
M.S.R.C.A.S.C BANGALORE
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GRAPH-12
PIE CHART SHOWING RESPONDENTS AWARENESS
ABOUT THE LIC BRANDS
CONCEPT: The concept behind this table is to know are respondents
Receiving premium notices well in time
TABLE NO -13
ARE RESPONDENTS RECEIVING PREMIUM NOTICES WELL IN
TIME
M.S.R.C.A.S.C BANGALORE
48
PREMIUM
NOTICE
NUMBER OF
RESPONDENTS
PERCENTAGE%
YES
98
98
NO
2
2
100
100
ANALYSIS: From this table it is clear that
Majorities of the respondents receiving premium notices well in time,
i.e. 98%
Only 2% of the respondents are not receiving their premium notices
With in time
INTERPRETATION: Majority of the policyholders is receiving the premium
notices well in time.
GRAPH-13
M.S.R.C.A.S.C BANGALORE
49
ARE RESPONDENTS RECEIVING PREMIUM NOTICES
WELL IN TIME
CONCEPT: The concept behind this table is to know when would the
respondent
like to be contracted for the fulfillments of his/her insurance needs
TABLE NO -14
WHEN WOULD THE RESPONDENT LIKE TO BE CONTRACTED
FOR THE FULFILLMENTS OF HIS/HER INSURANCE NEEDS
M.S.R.C.A.S.C BANGALORE
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TIME PERIOD
NUMBER OF
RESPONDENTS
PERCENTAGE%
IMMEDIATELY
5
5
WITHIN ONE
MONTH
65
65
WITH IN THREE
MONTH
20
20
LATER
10
10
100
100
ANALYSIS: From the above table it is clear that,
Majorities of the respondents would like to be contracted with in one month
Least number of respondents i.e., 5% would like to be contracted immediately.
INTERPRETATION: Majority of the people would like to be contracted for the
fulfillments of insurance needs within one month.
GRAPH-14
M.S.R.C.A.S.C BANGALORE
51
WHEN WOULD THE RESPONDENTS LIKE TO BE
CONTACTED FOR THE FULFILLMENT OF HIS / HER
INSURANCE NEEDS
CONCEPT: The concept behind this table is to know do the respondents feel that lic
has provided adequately the following needs
TABLE NO-15
DO THE RESPONDENTS FEEL THAT LIC HAS PROVIDED
ADEQUATELY THE FOLLOWING NEEDS
M.S.R.C.A.S.C BANGALORE
52
INSURANCE
NEEDS
NUMBER OF
RESPONDENTS
PERCENTAGE%
PROTECTION FOR
SPOUSE AND
CHILDREN & FOR
PAST-RETRIAL
LIFE
60
60
HOUSING
FACILITY TO SUIT
YOUR
CONVENIENCES &
CRITICAL ILLNESS
COVER
25
25
15
15
100
100
EDUCATION OF
YOUR CHILDREN
&
START IN LIFE OF
YOUR CHILDREN
Total
ANALYSIS: From the above table it is clear that,
60% of the respondents have the polices for the “protection for spouse and
children” and for their “past-retrial life”
25% of the respondents have the polices for “housing facility” and pr “critical
illness cover”
INTERPRETATION: Majority of the people are interested in going for the policies
related to protection for spouse and children and for past retrial life.
M.S.R.C.A.S.C BANGALORE
53
GRAPH-15
DO THE RESPONDENTS FEEL THAT LIC HAS
PROVIDED ADEQUATELY THE FOLLOWING NEEDS
CONCEPT: The concept behind this table is to know would respondent like to
enhance his/her financial security through different plans
Table No -16
Would Respondent Like To Enhance His/Her Financial
Security Through Different Plans
M.S.R.C.A.S.C BANGALORE
54
LIC PLANS
NUMBER OF
RESPONDENTS
PERCENTAGE %
CHILDREN’S
PLANS &
HOUSING
FINANCE
67
67
SAVINGS & RISK
ORIENTED PLANS
33
33
100
100
ANALYSIS: From the above table it is clear that,
Majorities of the respondents would like to enhance his financial security through
children’s plan and housing finance.
Least number of respondents would like to enhance his financial security through
saving and risk oriented plans.
INTERPRETATION: Majority of the people would like to enhance their financial
security through children’s plan and housing finance plans.
GRAPH-16
M.S.R.C.A.S.C BANGALORE
55
WOULD THE RESPONDENTS LIKE TO ENHANCE HIS
/HER FINANCIAL SECURITY THROUGH DIFFERENT
PLANS
33%
Children's plans &
housing finance
67%
Savings & risk oriented
plan
CONCEPT: The concept behind this table is to know customer responses
To the service and the office atmosphere of LIC.
TABLE NO-17
CUSTOMER RESPONSES TO THE SERVICE AND THE OFFICE
ATMOSPHERE OF LIC
M.S.R.C.A.S.C BANGALORE
56
ATMOSPHERE
NEAT AND
CLEAN&
SERVICING IS
PROMPT AND
COURTEOUS
NUMBER OF
RESPONDENTS
PERCENTAGE %
YES
96
96
NO
4
4
100
100
ANALYSIS: From the table it is clear that,
96% of the respondents say that the service provided by LIC and the office
atmosphere is good.
4% of the respondents say that the service provided by the LIC and the office
atmosphere is not good.
INTERPRETATION: Service provided by the LIC is good and its office
atmosphere is also good.
GRAPH-17
M.S.R.C.A.S.C BANGALORE
57
PIE CHART SHOWING CUSTOMER RESPONDS TO THE
SERVICE AND THE OFFICE ATMOSPHERE OF LIC
M.S.R.C.A.S.C BANGALORE
58
CHAPTER 5
FINDINGS &
CONCLUSIONS
5.1 FINDINGS
Majorities of respondents having LIC policy belong to age group 20-30.
Majorities of respondents family monthly income are between 10000 to 15000
Majorities of LIC policyholders are employees and businessmen
95% of the respondents satisfied with the overall performance of LIC of India
Information technology is excellent.
Agents give majorities of the awareness of the product.
M.S.R.C.A.S.C BANGALORE
59
Majorities of the respondents are satisfied with the wide range of products offered
by the LIC.
Majorities of the policyholders are receiving the premium notices well in time.
Majorities of the respondents having LIC policy would like to enhance their
financial security through children’s plan and housing financial plans.
Service provided by LIC and the office atmosphere is good.
From the serve conducted among the group of people for LIC we finds there are people
from age group of 20 to 30 and having an income of Rs. 10000 to 15000 and majority of
them are satisfy with the company performance and the range of products and the
services they are providing to the customer after Insurance
5.2 SWOT ANALYSIS
Strengths
Good brand name
Wide range of products
M.S.R.C.A.S.C BANGALORE
60
Products are able to meet different needs of customers
Ability to understand requirement of customer by considering different factors
Apart from tax saving, products facilitate the investment opportunity & provide
better return
The company has good market share
Weaknesses
In spite of having good product line the company is unable to effectively market
the products.
Still company doesn’t concentrate on the customer satisfaction level comparing
with market leader,ICICI in private sector.
Opportunities
Bright future of insurance industry in India.
Huge untapped potential market.
Positive attitude of people toward insurance.
Increasing average income of people would have complementary effect to the
insurance industry.
Threats
M.S.R.C.A.S.C BANGALORE
61
Cutthroat competition in the market.
Many potential entrants.
Big difference between market share of the company and the market leader.
Increasing investment options for people.
5.3 CONCLUSION
M.S.R.C.A.S.C BANGALORE
62
After having analysis, I have noticed that Life Insurance policies,
Which were taken for survey, have been fulfilling the needs of the customers
Considerably well. From the survey I came to know that the new insurance policies like
New jeevan shree, New jeevan Suraksha are not know to the customers so, Life Insurance
Corporation of India should take a step to create awareness of policies In the mind of the
customer. Agents should maintain the good communication with the customer; in this
case agents should take an active participation to create the awareness of the policies
5.4SUGGESTIONS AND RECOMMENDATIONS
M.S.R.C.A.S.C BANGALORE
63
LIC of India should strive hard to create awareness of the policies
LIC thinks that long-term investment earns maximum profit by which
The customers also satisfy by maximum bonus.
The bonus should increase for new emerging schemes
For example jeevan anand new scheme, which is endowment, plan
Having bonuses, survival benefit and accident benefit.
Majorities of the customer are not aware of the new policies, Life
Insurance Corporation should awareness through advertisement.
Majorities of policyholders belong to the age group of 20-30 so lic should target
these people by creating advertisements targeting these people and agent having
good relationship with these target customers.
Majorities of policy holders are having the family monthly income ranging from
10000-15000 so lic should target these people by creating advertisement that
could attract these target customers
About 25% of respondents are not satisfied with after sales service provided by lic
so lic should work on it by collecting premium in time and sending premium
notice well in time
By the serve conducted for the LIC we suggest them to concentrate more on the rural
market and to the income group of 10000 to 15000, because they are the huge market for
the company .The customer those who are not satisfy with the company company should
concentrate on them. The agents should be given more bonus on the new policies, so that
they can remain market leader
M.S.R.C.A.S.C BANGALORE
64
QUESTIONNAIRE
Dear sir/madam
I am assigned to carry out study on “Customer satisfaction towards LIC products “. In
this regard I request you to fill this questionnaire.
1. Name:
2. Age:
10 - 20
20 – 30
30 - 40
40 – 50
50 & above
3. Qualification:
Below Graduation
Graduation
Post Graduation
4. Occupation:
Businessman
M.S.R.C.A.S.C BANGALORE
65
Employee
House Wife
Student
Others
5. Family Monthly Income:
Below 5000
5000 – 10000
10000 – 15000
Above 15000
6. Do you feel that you have provided adequately for your following?
Needs?
Protection for spouse & children
Education of your children
Start in life/marriage of your children
Housing Facility to suit your conveniences
For your past-retrial life
Critical illness cover
7. Would you like to enhance your financial security through?
M.S.R.C.A.S.C BANGALORE
66
Personal loans
Children’s & Risk oriented Plans
Savings & risk oriented plans
Housing finance
8. Is there any variation in service what you expected?
Service
Yes
No
9. Are you aware of the following latest plans?
Jeevan Anand
New Jeevan Shree
New Jeevan Suraksha
New Bima Nivesh
10. How did you come to know about Life Insurance Products?
M.S.R.C.A.S.C BANGALORE
67
Advertisement
Friends /Relatives
LIC Agents
11. Are you satisfied with the pre – delivery demonstration of the Product given by
the LIC agents?
Satisfied
Dissatisfied
12. Please indicate when you would like to be contracted for the
Fulfillment of your insurance needs?
Immediately
With one month
Within three months
Later
13. Would you recommend Life Insurance Products to any of your
Friends/Relatives/Acquaintances?
M.S.R.C.A.S.C BANGALORE
68
Yes
No
14. Are you receiving your premium notice well in time?
Yes
No
15. During your visit of LIC Branch office do you find the
Atmosphere neat and clean
Servicing prompt & courteous
16 .Do you hold an LIC policy on which survival benefit or maturity claim was
Paid to you?
Yes
No
If so, was the payment made in time?
Yes
No
17. Are you satisfied with the overall performance of the LIC of India?
Yes
No
18. Are you satisfied with the “After Sales Service “provided by your Life
Insurance Agents?
Yes
M.S.R.C.A.S.C BANGALORE
69
No
Rank the below service provided by LIC agents
Good
Average
Poor
19. Are you satisfied with the range of the products offered by the LIC?
Yes
No
20. Just think of LIC brands which comes to your mind first (please write below)
1.
…………………………….
11
….......................................
21. Is a request of your s is pending with the LIC office?
Yes
M.S.R.C.A.S.C BANGALORE
70
No
If, so please give details ……………………………………………..
………………………………………………………………………………
22. Suggestion if any ………………………………………………………
:………………………………………………………………………………
Thank You
BIBILOGRAPHY
M.S.R.C.A.S.C BANGALORE
71
MARKETING MANAGEMENT
:
BY PHILIP KOTLER
RESEARCH METODOLOGY
:
BY C.R.KOTARI
CONSUMER BEHAVIOUR
:
LEON SCHIFFMAN
COMPANY REPORT
INTERNET SITES
www.licindia.com
WWW.GOOGLE.COM
M.S.R.C.A.S.C BANGALORE
72
This report summarizes the results of the project done by Amanjeet Singh
Badesha a student of M.S.Ramaiah college of Arts, Science And Commerce, Bangalore
University supported by Life Insurance Corporation of India Bangalore
Today companies are facing their competition of this decade companies can
comfort their competition better if they can from a product and selling philosophy and
also meeting and satisfying customer needs. Companies need under stand the
determinants of customer value and satisfaction
Customers are satisfied when their expectations are met and delighted when their
expectations are exceeded. Satisfied customer sensitive and talk frequently about the
company. It involves building customer and not just building product.
It is also important to recognize that customer satisfaction is the best sought not
directly but as by product of customer problem solving customer satisfaction like
happiness is achieved by rendering substantial forms of assistance to rather than by direct
pursuit.
Customer satisfaction is central to the marketing concept with evidence of
strategic links between satisfactions and overall firm performs. It is now common to find
mission statements design around the satisfaction achievements in the market place.
Research on satisfaction has been commensurate with growing managerial
importance. Most studies have been conducted with in the overarching comparison
standards paradigms. Which posits that consumers hold pre-consumption product
standards from confirmation of disconfirmation perceptions combine these perspective
other than that of customer satisfaction paradigm, especially as examined through an
econometric of survey lens.
Although satisfaction has been conceptualized in terms of either a single
transaction of a series of interaction with a product over time. Whether the buyer is
satisfied after or before purchase depends on the offers performance in relation to the
buyer’s expectation.
M.S.R.C.A.S.C BANGALORE
1
“Satisfaction is a persons feeling of pleasures or disappointment resulting from
comparing a products perceived performance or out come in relation to his/her
expectation”.
Many companies are aiming for high satisfaction because consumers who are
just satisfied still find it easy to switch when better offer comes along. Those who are
highly satisfied are much less ready to switch.
High satisfaction or delight creates an emotional affinity with the brand, not
just a rational preference. The result is high customer loyalty.
How do buyers form their expectations? Their expectations are influenced by
their past buying experience friend and associates, advice the marketer and competitor’s
expectations and promises if marketer raises expectations to high the buyers likely to be
appointed.
For consumer central companies consumer satisfaction is both a global and a marketing
tool. Companies that achieve high consumer satisfaction rating make sure that their target
market bonus it.
M.S.R.C.A.S.C BANGALORE
2
CHAPTER 1
INTRODUCTION
M.S.R.C.A.S.C BANGALORE
3
INTRODUCTION
With largest number of non-life insurance policies in force in the world,
Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of
15-20 per cent annually and presently is of the order of Rs 450 billion. Together with
banking services, it adds about 7 per cent of the country’s GDP. Gross premium
collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8
per cent of GDP.
Yet, nearly 80 per cent of Indian populations are without life insurance cover,
health insurance and non-life insurance continue to be below international standards. And
this part of the population is also subject to weak social security and pension systems
with hardly any old age income security. This it is an indicator that growth potential for
the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic
development as it provides long-term funds for infrastructure development and at the
same time strengthens the risk taking ability. It is estimated that over the next ten years
India would require investments of the order of one trillion US dollar. The Insurance
sector, to some extent, can enable investments in infrastructure development to sustain
economic growth of the country.
With a large capital outlay and long gestation periods, infrastructure projects
are fraught with a multitude of risks throughout the development, construction and
operation stages. These include risks associated with project implementation, including
geological risks, maintenance, commercial and political risks. Without covering these
risks the financial institutions are not willing to commit funds to the sector, especially
because the financing of most private projects is on a limited or non-recourse basis.
Insurance companies not only provide risk cover to infrastructure projects,
they also contribute long-term funds. In fact, insurance companies are an ideal source of
long-term debt and equity for infrastructure projects? With long-term liability, they get a
good asset-liability match by investing their funds in such projects.
M.S.R.C.A.S.C BANGALORE
4
IRDA regulations insurance companies to invest not less than 15 percent of
their funds in infrastructure and social sectors. International Insurance companies also
invest their funds in such projects.
Insurance is a federal subject in India. There are two legislations that govern the
sector- The Insurance Act- 1938 and the Act- 1999.
PRESENT SCENARIO:
The Government of India liberalized the insurance sector in March 2000 with
the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting
all entry restrictions for private players and allowing foreign players to enter the market
with some limits on direct foreign ownership. Under the current guidelines, there is a
proposal to increase this limit to 49 percent. Premium rates of most general insurance
policies come under the purview of the government appointed Tariff Advisory committee.
The opening up of the sector is likely to lead to greater spread and deepening of
insurance in India and this may also include restructuring and revitalizing of the public
sector companies. A host of private Insurance companies operating in both life and nonlife segments have started selling their insurance policies since 2001.
NON-LIFE INSURANCE MARKET:
In December 2000, the GIC subsidiaries were restructured as independent
insurance companies. At the same time GIC was converted into a national re-insurer. In
July 2002, Parliament passed a bill, de linking the four subsidiaries from GPresently there
are 12 general insurance companies with 4 public sector companies and 8 private
Insurers. Although the public sector companies still dominate the general insurance
business, the private players are slowly gaining a foothold. According to estimates,
private insurance companies have a 10 percent share of the market, up from 4 percent in
2001. In the first half of 2002, the private companies booked premiums worth Rs 6.24
billion. Most of the new entrants reported losses in the first year of their operation in
2001. Insurance costs constitute roughly around 1.2-2 percent of the total project costs.
Under the existing norms, insurance premium payments are treated as part of the fixed
costs. Consequently they are treated as pass-through costs for tariff calculations.
M.S.R.C.A.S.C BANGALORE
5
For Projects costing up to Rs. 1 Billion, the Tariff Advisory Committee sets the
premium rates, for Projects between Rs.1 billion and Rs. 5 billion the rates are set in
keeping with the committee’s guidelines, and projects above Rs15 billion are subjected to
re-insurance pricing. It is the last segment that has a number of additional products and
competitive pricing. Insurance, like project finance, is extended by a consortium normally
one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a
proportionate percentage of the premium. The other companies share the remaining risk
and premium. The policies are renewed usually on an annual basis through the invitation
of bids. Of late, with IPP projects fizzling out, the insurance companies are turning on
again to old hands such as NTPC, NHPC and BSES for business.
RE-INSURANCE BUSINESS:
Insurance companies retain only a part of the risk (less than 10 per cent)
Assumed by them, which can be safely borne from their own funds. The balance risk is
re-insured with other insurers. In effect, therefore, re-insurance is insurer’s insurance. It
forms the backbone of the insurance business. It helps to provide a better spread of risk in
the international market, allows primary insurers to accept risks beyond their capacity
settle accumulated losses arising form catastrophic events and still maintain their
financial stability.
While GIC’s subsidiaries look after, general insurance, GIC itself has been the
major reinsurer. Currently, all insurance companies have to give 20 per cent of their
reinsurance business to GIC. The aim is to ensure that GIC’s role, as the national reinsure
remains unhindered. However, GIC reinsures the amount further with international
companies such as Swiss (Switzerland), Munichre (Germany), and Royal (UK).
Reinsurance premiums have seen and exorbitant increase in recent years, following the
rice in threat perceptions globally.
M.S.R.C.A.S.C BANGALORE
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LIFE INSURANCE MARKET:
The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of life
insurance products was 19 percent of the total 400 million of the insurable population.
The state owned LIC sold insurance as a tax instrument, not as a product giving
protection. Most customers were under- insured with no flexibility or transparency in the
products. With the entry of the private insurers the rules of the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly
9 percent of the market in terms of premium income. The new business premium of the
12 private players has tripled to Rs. 1000 crore in 2002-03 over last year. Meanwhile,
state owned LIC’s new premium business has fallen.
Innovative products, smart marketing and aggressive distribution. That’s the
triple whammy combination that has enabled fledgling private insurance companies to
sign up Indian customers faster than anyone ever expected. Indians, who have always
seen life insurance as tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer.
The growing popularity of the private insurers shows in other ways. They are
coining money in new niches that they have introduced. The state owned companies still
dominate segments like endowments and money back policies. But in the annuity or
pension products business, the private insurers have already wrested over 33 percent of
the market. And in the popular unit-linked insurance schemes they have a virtual
monopoly, with over 90 percent or the customers.
The private insurers also seem to be scoring big in other ways they are
persuading people to take out bigger policies. For instance, the average size of a life
insurance policy before privatization was around Rs.50, 000 has risen to about Rs.80,
000. But the private insurers are ahead in this game and the average size of their polices
is around Rs 1.1 Lakhs to Rs1.2 Lakhs-way bigger than the industry average.
M.S.R.C.A.S.C BANGALORE
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STARTING OF INSURANCE INDUSTRY IN INDIA:
Insurance industry has always been a growth-oriented industry globally. On the
Indian scene too, the insurance industry has always recorded noticeable growth vis-à-vis
other Indian industries.
Triton Insurance Co Ltd. was the first general insurance company to be
established in India in 1850, whose shares were mainly held by the British
The first general insurance company to be set up by an Indian was Indian
Mercantile Insurance Co. Ltd., which was established in 1907. There emerged many a
player on the Indian scene thereafter.
The general insurance business was nationalized after the promulgation of
General Insurance Business (Nationalization) Act, 1972. The General Insurance
Corporation of India (GIC) and its 4 subsidiaries undertook the post-nationalization
general insurance business.
Oriental Insurance Company Limited
New India Assurance Company Limited
National Insurance Company and
United India Insurance Company Limited
Towards the end of 2000, the relation ceased to existed and the four Companies
are, at present, operating as independent companies. The Life Insurance Corporation
(LIC) was established on 01.09.1956 and had been the sole corporation to write the life
insurance business in India.
The Indian insurance industry saw a new sun when the Insurance Regulatory &
Development Authority (IRDA) invited the applications for registration as insurers in
August 2000. With the liberalization and opening up of the sector to private players, the
industry has presented promising prospects for the coming future. The transition has also
resulted into introduction of ample opportunities for the professionals including
Chartered Accountants.
M.S.R.C.A.S.C BANGALORE
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The Indian Insurance industry is featured by the attributes:
Low market penetration;
Ever-growing middle class component in population.
Growth of consumer movement with and increasing demand for better insurance
products;
Inadequate application of information technology for business.
Adequate fillip from the Government in the form of tax incentives to the insured, etc.
The industry formations need to keep vigil on these characteristics of the Indian
market and formulate their strategies to entail maximum contribution to the output of the
sector.
The Indian life and non-life insurance business accounted for merely 0.42
percent of the world’s life and non-life business in 1997. The figures of the basic
parameters of the industry’s performance viz. Insurance Density and Insurance
Penetration also are evident of the hitherto existing low-yield Indian market conditions.
The term “Insurance Penetration” broadly measures the contribution of the
insurance industry in relation to a nation’s entire economic productivity. The figure of
premium vis-à-vis the GDP of 1999 stood at 0.54 percent for non-life insurance business
and 1.39 percent for the life insurance business. The term “Insurance Density” reflects the
Insurance purchasing power. The premium per capital in India amounted to US $ 2.40 for
non-life insurance and US $ 6.10 for life insurance in 1999 but with the deregulation of
the sector, a sea change in the scene is most likely.
M.S.R.C.A.S.C BANGALORE
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WHAT CAN THE INSURANCE INDUSTRY DO?
Educate policyholders about financial risks associated with global warming.
Support stricter building code enforcement and other measures that minimize the
impact of severe weather.
Promote energy efficiency and renewable to cut greenhouse gases and reduce
losses from natural disasters.
Lead by example as a voluntary member of EPA’s ENERGY STAR® Program
and the Rebuild America Program.
Selecting the right insurance company is an important financial decision. One
important consideration is the financial strength of the insurer, if the company cannot pay
future claims or benefits, other considerations become unimportant.
Financial strength ratings represent an analysis of a wide variety of risks that
could affect an insurer’s long-term survival. Insurance companies can ail or cease to
operate due to inadequate financial capabilities, Investment companies help the small
savers get the benefits of investment in high growth corporate securities by pooling their
savings\ and investing the same in a professional way, these investment companies raise
funds through issue of shares and debentures accepting fixed deposits issuing certificates
of cash etc.
M.S.R.C.A.S.C BANGALORE
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1.1 BACKGROUND OF THE STUDY
The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of life
insurance products was 19 percent of the total 400 million of the insurable population.
Being the market leader in the insurance sector the LIC have to satisfy their customer to
remain in the position. The study of customer satisfaction is done to get a picture about
the whether the customer is satisfy with insurance given by the company and to identify
the which age group of people are mostly under taking the insurance policy and what are
there income groups, and what are the other benefits the are looking forward for the
LIC,and they have the brand awareness about the company .
1.2 STATEMENT OF THE PROBLEM
Satisfaction of the customer is very important for any industry or company to
service in the market .the present study is all about “customer satisfaction towards lic
products”. this is an analytical and empirical study about consumer satisfaction survey
towards lic products. this study is made to know various factors, which satisfy and
dissatisfy consumer and to know various problems involved in relating to the insurance
plans, which is faced by the consumer.
1.3 NEED AND IMPORTANCE, SCOPE &LIMITATION OF STUDY
As the study is related to “customer satisfaction towards LIC products “. We
consider LIC policyholders as the customers who belong to the Bangalore city because
those who have the LIC policy can provide a deeper perspective of their experience and
preferences and also the information about the services of the LIC office and the feature
of the policy that they would like for the future services and the policies to have
M.S.R.C.A.S.C BANGALORE
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LIMITATIONS OF STUDY
The customers of LIC policies were selected from Bangalore city and hence the
study is restricted to Bangalore city.
Some customers who were busy were not able to provide me the information
about the problems faced by them.
Responses given by the respondents may be biased sometimes.
The study is biased on certain assumptions like the responses of one-person
probly more peoples views.
Since descriptive research method was used for this project study, the study might
not hold well over a period of time because of eve r changing attitudes and
behavioral changes of retailers and consumers.
1.4 OBJECTIVES OF THE STUDY
To know the satisfaction level of customers.
To suggest LIC Of India regarding customer satisfaction level & help in forming
effective marketing strategies
To identify the present customer for new service
To understand the awareness level of customer regarding various LIC schemes
M.S.R.C.A.S.C BANGALORE
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1.5 COMPANY PROFILE
The corporation has been established by an act of parliament, which received the
assent of the president on 18th June 1956. Act came into force on 1july 1956 and the
corporation is having exclusive privilege of carrying on life insurance business in India.
The corporation is an autonomous body and has necessarily to run on sound business
principals.
The corporation which was mainly transiting insurance on individual lives, later
on started doing insurance on group bases under its pension and group schemes portfolio.
The group schemes provide life insurance cover at a very low cost and a large number of
needy people are given life insurance protection under group schemes
In consultation with the central government, LIC has step up a social security
fund out of the funds transferable to central govt after valuation with effect from 15-8-87.
this fun is utilized to provide social security for the weaker and vulnerable sections of
social. Families of 1 crore landless agricultural laborers are now provided free life
insurance cover for Rs 2000/- each under the scheme over crore 1.5 beneficiaries of the
integrated rural development programmes also provided free insurance cover of Rs
5000/- under the scheme which effects from 1-4-88.beside ,the social security fund
subsides 50% of the premium insurance cover of Rs5000/- on handloom viewers
,rickshaw pullers and drivers and such other socially disadvantageous section of the
society during 1989 , corporation diversified its activities in many directions LIC mutual
funds was setup as a separate trust with a view to providing easy necessability of the
investment area including stock market in the country to one and all, especially small
investors in rural and urban areas . The corporation launched LIC housing finance ltd on
19-6-89, as it ‘s subsidiary
along with UTI, IFCI and ICICI with a with a view to
making a greater thrust
in the housing field by providing long –term finance to help realize the objectives of the
national housing policy. An offshore company, LIC international was incorporated in
Bahrain in July 1989 to transact life insurance business amongst non-resident Indian
nationals in Middle East countries.
M.S.R.C.A.S.C BANGALORE
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WHAT IS INSURANCE
Insurance is a financial service for collecting the saving of the public and
providing them risk coverage .the risk may be certain events like death ,retirement
,pension, education ,marriage ,etc, or uncertain events ,like theft ,accident fire, ill health
etc.Marine insurance is one category which covers risk of sea voyage , of shipping ,cargo,
etc.motorcar,scooter,and two-wheeler and three wheelers are also provided with
insurance ,called vehicle insurance ,building insurance from theft ,etc and crop insurance
is the other categories of risk coverage introduced by LIC
WHY INSURANCE IS NEEDED
They help providing protection to investors from some certain or uncertain risks.
These are contractual savings, which the investors are forced to provide for this will
constitute voluntary involvement in savings, but turn into compulsory or forced savings
through contractual obligation. These are generally medium and long-term savings and
the investment of this type provide a low return but needed risk coverage of
life,accident,fire etc.GROWTH OF LIFE INSURANCE BUSINESS
As a financial intermediary, we have the interest in the growth of LIC in respect
of its efforts to mobilize savings .the volume of funds at this disposal, and the magnitude
of its total investment.
Today LIC is one of the most important financial intermediaries in India. Savings
of the house-hold sector in type LIC investment media as a percentage of total house-hold
savings in the form of financial assets increased from 5.5% in 1956-57 to 12.3% in 196061 there after, it declined to 8% in 1965 -66 it again increased slightly to 9.8% in 1970-71
and it was about 7.0% in 1988-89 .from a different angle, the growth of LIC’s presented
in table as fallows:
M.S.R.C.A.S.C BANGALORE
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INVESTMENT PATTERNS
1. Electricity and water drainage
2. Mortgage loans
3. Loans to the policyholders
PROMOTIONAL BENEFITS OF LIC
ON VESTING:
The notional cash option together with reversionary Bonuses and add final
additional Bonuses with or without 25% communication will be compulsory converted
into annuity having following options:
ANNUITY OF LIFE:
With guaranteed period of 5 p.a. 15, 20 years joint life and last survivor annuity
to the annuitant and his/her spouse, under which annuity payable to the spouse on death
of the purchase price. Life3 annuity with annuities increasing at simple rate of 3% per
annum. The annuity rate will be that available under the version of the New Jeevan
Akshaya plan current at the rate of vesting. Aggregate of 3% will be available on the
purchase price of the New Jeevan Akshaya policy. Option for the annuity type is to be
exercised at least 6 months before the date of vesting.
DURING DEFERMENT:
A term rider option will be available. On the death of the policy holder who has
opted for the term assurance rider, the term assurance sum assured along with all
premiums paid up to the date of death accumulated at the rate of 5% p.a. compounding or
at a such rates as decided by the corporation from time to time, will be paid too the
nominee. Term rider option will be available only on annual premium plan.
REBATES:
Premium will be payable yearly, quarterly or monthly (including sss) or by
single premium. Mode rebates @ 2.6%, 1.3% and 0.5% of the tabular annual premium
will be available for yearly, half-yearly and quarterly premiums.
M.S.R.C.A.S.C BANGALORE
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PAID UP, GUARANTEED AND SPECIAL SURRENDER VALUE FOR
ANNUAL PREMIUM PLANS:
The guaranteed surrender value will be equal to 90% of all premiums paid
excluding the first year premium, all term assurance premium and extra premium (if any).
This will be allowed after two full years have been completed from the date of
commencement. However, the policy cannot be surrendered after the annuity vests.
FOR SINGLE PREMIUM PLAN:
The guaranteed surrender value will be 90% of the single premium paid.
Surrender will be allowed 2 years after the commencement of the policy.
SERVICES PROVIDED BY LIC
1. GUARANTEED SURRENDER VALUE
2. LOAN
3 ACCIDENT BENEFIT
4 SALARY SAVING SCHEME
5. ALTERATIONS:
6. DUPLICATE POLICY
7. REVIVALS
8. ORDINARY REVIVAL
9. REVIVAL ON NON-MEDICAL BASIS
10. REVIVAL ON MEDICAL BASIS
As it is the most reputed company of India exciting since 1956 and as the times
passes the awareness among the people also increase and started doing there insurance,
now the different policies have came into the market and having the different benefits
providing according to the needs of the customer.
M.S.R.C.A.S.C BANGALORE
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1.6 Respondent’s profile
Respondent of different age group has different perception towards life, so according to
the perception they are doing there insurance. In the survey, I found there there are more
people in the age group between 20 to 30 are more with the average salary of re10000 to
15000and majority of people belongs to the business class and employees who are much
concern about the Insurance Policies
Respondent Profile is as follows –
1 Businessman
2 Employees
3 Housewives’s
4 Students
M.S.R.C.A.S.C BANGALORE
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CHAPTER 2
REVIEW OF LITERATURE
M.S.R.C.A.S.C BANGALORE
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2.1 PURPOSE:
1. The purpose of study is the customer satisfaction towards the company.
2. It is done to get a picture about their commitment towards customer satisfaction,
3.For developing stronger brands and loyalty with ultimate customer and solving their
problems.
2.2 METHODOLOGY:
SAMPLE SIZE: A part of the population, which is selected for obtaining the necessary
information. It refers to the number of people surveyed for this topic. In this case 100
people were contracted and response drawn..
TECHNIQUE: It is the way in which the samples are selected.
Convenience Sampling
Convenience Sample is one in which the only criterion for selecting the sampling units is
the convenience of the sampler.
SOURCES OF DATA COLLECTION:
The required data was collected by using both
1) PRIMARY DATA:
Questionnaire
Structured Direct Interviews
2) SECONDARY DATA:
Journals
Information from company through reports
internet
2.3 REFERENCE OF BOOKS, JOURANLS, MAGAZINE &
PREVIOUS REPORT ON THE SAME TOPIC
1.MARKETING MANAGEMENT: BY PHILIP KOTLER
2.RESEARCH METODOLOGY: BY C.R.KOTARI
3.CONSUMER BEHAVIOUR: LEON SCHIFFMAN
M.S.R.C.A.S.C BANGALORE
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CHAPTER 3
METHODOLOGIES
M.S.R.C.A.S.C BANGALORE
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3.1 Types of Research:
The type of research used in this project is a Descriptive research design. The
major purpose of descriptive research is a description of the state of the affairs, as it exists
at present. Thus a Descriptive study is a fact-finding investigation with adequate
interpretation. It is the simplest type of research. It focuses on particular aspects or
dimensions of the problem studied. It is so designed that it gathers descriptive
information and provides information for formulating more sophisticated studies. There
is a cause effective relationship.
The criteria for selecting this particular design are that, the problem of the
project must be described and not arguable. The data collected is amenable to statistical
analysis and has accuracy and significance. It is possible to develop valid standards of
comparison. It lends itself to the verifiable procedure of collection and analysis of data.
Descriptive study objectives aim at identifying the various characteristics of a
company problem under study. It can reveal potential relationships between variables
with exploratory research.
3.2 SamplingTecquniue:
It is the way in which the samples are selected.
Convenience Sampling
Convenience Sample is one in which the only criterion for selecting the sampling units is
the convenience of the sampler.
3.3 Sample size:
A part of the population, which is selected for obtaining the necessary
information. It refers to the number of people surveyed for this topic. In this case 100
people were contracted and response drawn.
M.S.R.C.A.S.C BANGALORE
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3.4 Sample description –
A Sampling unit is the basic unit containing the elements of the population
to be sampled. It refers to individuals who are to be surveyed in the study it is the
customer who is having the LIC policy from Bangalore LIC branch office.
3.5 Instrumentation Techniques:
The project is a survey and hence the instrumentation techniques used is
mainly questionnaire. The data collected is analyzed and so tabulation technique is used,
and graphs are also prepared for the data tabulated.
3.6 Collection of Data:
The required data was collected by using both
1) PRIMARY DATA:
Questionnaire
Structured Direct Interviews
2) SECONDARY DATA:
Journals
Information from company through reports
internet
PRIMARY DATA/ SURVEY DATA:
Survey research is the systematic gathering of information from respondents
for the purpose of understanding and/or predicting some aspect of the behavior of the
population of interest. Primary data was collected by using Questionnaire and Structured
Direct Interviews.
QUESTIONNAIRE:
In survey mode of data collection, questionnaire is a popular means of data
collection instrument. A questionnaire uses a structured, standardized format of data
collection to record verbal responses to questions. Particularly when the population to be
covered is very large and the study wishes to collect data about specific aspects of
sumers’ awareness, attitude, opinions, prior and present behavior, it is recommended to
design a questionnaire. The exact format and sequence of the questionnaire will greatly
depend on the study objective and the method of administration of the questionnaire.
M.S.R.C.A.S.C BANGALORE
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Advantages of questionnaires:
(i)
Versatility: The respondents can be probed on a wide diversity of issues by
questioning.
(ii)
Speed and Cost: It is usually cheaper and faster than observing.
(iii)
Ease of Communication: Since the questions are formulated in advance, all
the required information can be obtained in an orderly and systematic manner.
The exact wording of the questions can be carefully worked out to reduce the
possibility of ambiguity and misunderstandings.
(iv)
Control: Since same questions are put before all respondents in the same
order, it offers maximum control on the interviewing process and information
content.
Secondary Data:
Secondary data are data that were developed for some purpose other than helping
to solve the problem at hand.
Advantages:
Secondary data can be gathered quickly and inexpensively, compared to primary
data.
Disadvantages:
Availability: for some marketing problems no secondary data are available.
Relevance: the extent to which the data fit the information needs of the research
problem.
Accuracy: The data available may be inaccurate.
Sufficiency: The data available may not be sufficient for the required research problem.
The sources of secondary Data used are
Journals.
Information from company through reports .
Internet.
M.S.R.C.A.S.C BANGALORE
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CHAPTER 4
DATA ANALYSIS &
INTERPRETATION
M.S.R.C.A.S.C BANGALORE
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ANALYSIS AND INTERPRETATION OF DATA
The data collected through the questionnaire are put together and classified, after
classifying; the work is done .the following table and graphs are prepared from the
gathered data helps to analyses various aspects and draw interference.
CONCEPT: The concept behind this table is to know the classification of customer
based on age
TABLE NO -1
CLASSIFICATION OF CUSTOMER BASED ON AGE
INSURANCE
NUMBER
OF
PERCENTAGE
AGE GROUP RESPONDENTS
10 – 20
10
10
20 – 30
30 – 40
40 – 50
30
20
20
30
20
20
50 above
20
20
100
100
ANALYSIS: From the above Table it is clear that
Majorities of respondents belongs to the age group of 20 to 30 i.e.,30% of
respondents
Least number of respondents belongs to the age group of 10 to 20 i.e., 10% of
respondents.
INTERPRETATION: Majority of the business is obtained from the age group of
20 to 30 i.e. 30% of business.
M.S.R.C.A.S.C BANGALORE
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GRAPH-1
PIE CHART SHOWING THE CLASSIFICATION OF
CUSTOMERS BASED ON AGE
M.S.R.C.A.S.C BANGALORE
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CONCEPT: The concept behind this table is to know the family monthly income of
respondents
Table No- 2
FAMILY MONTHLY INCOME OF THE RESPONDENTS
INCOME
NUMBER OF
PERCENTAGE %
RESPONDENTS
BELOW 5000
22
22
5000 – 10000
26
26
10000 – 15000
32
15000 &
20
32
20
ABOVE
100
ANALYSIS: From the above table it is clear that,
100
A significant 32% of the respondents in the above table earn 10000 to 15000
monthly
20% of the respondents earn above 15000 monthly.
INTERPRETATION: Majority of the business is obtained from the people who
have the income of 10000 to 15000 monthly i.e. 32% of the business.
M.S.R.C.A.S.C BANGALORE
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GRAPH-2
PIE CHART SHOWING FAMILY MONTHLY INCOME OF
RESPONDENTS
CONCEPT: The concept behind this table is to know the occupation of the
respondents.
TABLE -3
M.S.R.C.A.S.C BANGALORE
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OCCUPATION OF THE RESPONDENTS
OCCUPATION
NUMBER OF
PERCENTAGE %
RESPONDENTS
BUSINESS MAN
20
20
EMPLOYEE
36
36
STUDENTS
18
18
HOUSEWIFE
14
14
OTHERS
12
12
ANALYSIS: From the above it is clear that,
Majorities of the respondents are employees and businessmen , i.e. 36% and 20%
of the respondents
12% of the respondents belongs to the others and retired people
INTERPRETATION: Majority of the business is obtained from the employees and
businessmen i.e. 36% and 20% of the business respectively.
M.S.R.C.A.S.C BANGALORE
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GRAPH-3
PIE CHART SHOWING OCCUPATION OF THE
RESPONDENTS
CONCEPT: The concept behind this table is to know the source pf
information about the LIC product.
M.S.R.C.A.S.C BANGALORE
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TABLE NO-4
SOURCE OF INFORMATION ABOUT THE LIC PRODUCT
SOURCE OF
INFORMATION
NUMBER OF
RESPONDENTS
PERCENTAGE %
ADVERTISEMENT
10
10
FRIENDS / RELATIVES
25
25
LIC AGENTS
65
65
100
100
ANALYSIS: This table shows how respondents got the information about the life
insurance policy. From the above table it is clear that,
Majority of the respondents came to know about the product through agents, i.e.
65% of the respondents.
Only 10% of the respondents came to know about the product by advertisement.
Least number of customers came to know about the policies by advertisement.
INTERPRETATION: Majority of the awareness of the product is given from agents
(i.e.65% of the respondents).
M.S.R.C.A.S.C BANGALORE
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GRAPH-4
PIE CHART SHOWING THE SOURCE OF INFORMATION
ABOUT THE LIC PRODUCTS.
CONCEPT: The concept behind this table is to know the consumer
awareness about the latest LIC polices .
TABLE NO – 5
M.S.R.C.A.S.C BANGALORE
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CONSUMER AWARENESS ABOUT THE LATEST LIC POLICES
LIC POLICIES
NUMBER OF
RESPONDENTS
PERCENTAGE %
JEEVAN ANAND
45
45
NEW JEEVAN
SHREE
25
25
NEW JEEVAN
SURAKSHA
20
20
NEW BIMA NIVESH
10
10
ANALYSIS: From the above table it is clear that,
Majority of the respondents know about the policies Jeevan Anand and New
Jeevan Shree
Least number of customers are aware of new Jeevan Suraksha and New Bima
Nivesh.
LIC should create the awareness of the new policies through advertisement.
INTERPRETATION: Majority of the people know about the jeevan anand and new
jeevan shree policies i.e. 45% and 25% of respondents.
M.S.R.C.A.S.C BANGALORE
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GRAPH-5
PIE CHART SHOWING CONSUMER AWARENESS
ABOUT THE LIC –PRODUCTS
CONCEPT: The concept behind this table is to know that is there any
variation in expectation due to services.
TABLE – 6
IS THERE ANY VARIATION IN EXPECTATION
M.S.R.C.A.S.C BANGALORE
34
VARIATION IN
SERVICE
NUMBER OF
RESPONDENTS
PERCENTAGE %
YES
20
20
NO
80
80
100
100
ANALYSIS:From the above table it is clear that,
20 respondents have a variation in expectation due to service.
80 respondents have no variation in expectation due to service.
INTERPRETATION: From this we can say that the service provided by Life
Insurance Corporation of India is good.
M.S.R.C.A.S.C BANGALORE
35
GRAPH-6
PIE CHART SHOWING THE VARIATION IN THE
EXPECTATION OF RESPONDENTS
CONCEPT: The concept behind this table is to know the satisfaction of
overall performance of the LIC products.
TABLE NO – 7
M.S.R.C.A.S.C BANGALORE
36
SATISFACTION OF OVERALL PERFORMANCE OF THE LIC
PRODUCTS
PERFORMANCE
NUMBER OF
RESPONDENTS
PERCENTAGE
SATISFIED
92
92
DISSATISFIED
8
8
100
100
ANALYSIS:From the above table it is clear that,
Majority of the respondents are satisfied with the overall performance of LIC of
India i.e. 92%
Only 8% of the respondents are not satisfied with the premium and services
provided by LIC of India
INTERPRETATION: Majority of the people are satisfied with the overall
performance of LIC of India.
M.S.R.C.A.S.C BANGALORE
37
GRAPH-7
PIE CHART SHOWING SATISFACTION OF OVERALL
PERFORMANCE OF THE LIC OF INDIA
CONCEPT: The concept behind this table is to know how respondents feel
about the after sales service
TABLE NO -8
M.S.R.C.A.S.C BANGALORE
38
HOW DO RESPONDENTS FEEL ABOUT THE SERVICE AFTER
INSURANCE
SERVICE
NUMBER OF
RESPONDENTS
PERCENTAGE%
GOOD
75
75
AVERAGE
15
15
POOR
10
10
ANALYSIS: This table shows the customer response to that after sales service
provided
by the agents of the LIC office ,from the above table it is clear that,
Majorities of the respondents say that services after Insurance is good
Only 10% of the respondents says that service after Insurance is poor
INTERPRETATION: Service after Insurance provide by LIC is really good.
M.S.R.C.A.S.C BANGALORE
39
GRAPH-8
PIE CHART SHOWING HOW DO RESPONDENTS FEEL
ABOUT THE SERVICE AFTER INSURANCE
CONCEPT: The concept behind this table is to know recommendation for
LIC policy by various respondents
TABLE NO -9
M.S.R.C.A.S.C BANGALORE
40
RECOMMENDATION FOR LIC POLICY BY VARIOUS
RESPONDENTS
RECOMMENDATION
NUMBER OF
PERCENTAGE%
RESPONDENTS
YES
98
98
NO
2
2
100
100
ANALYSIS: This table shows the number of respondents recommended for LIC policy
to their friends and relatives from the above table it is clear that,
98% of the respondents will recommend LIC policy to their friends and relatives
Only 2%of the respondents will not recommended LIC policy to their friends and
relatives.
INTERPRETATION: the policyholders give Majority of the awareness of the
product to their friends and relatives
GRAPH-9
M.S.R.C.A.S.C BANGALORE
41
PIE CHART SHOWING RECOMMENDATION FOR LIC
POLICY FOR VARIOUS RESPONDENTS
CONCEPT: The concept behind this table is to know are respondents
Satisfied with the range of products offered by LIC of India
TABLE NO - 10
M.S.R.C.A.S.C BANGALORE
42
ARE RESPONDENTS SATISFIED WITH THE RANGE OF
PRODUCTS OFFERED BY LIC OF INDIA
SATISFACTION
NUMBER OF
RESPONDENTS
PERCENTAGE
YES
93
93
NO
7
7
100
100
ANALYSIS: From the above it is clear that,
93% of the respondents are satisfied with the range of products offered by LIC
of India.
Only 7% of the respondents are not satisfied with the range of products
offered by LIC of India.
INTERPRETATION: Majority of the respondents are satisfied with the wide
range of products offered by the LIC
M.S.R.C.A.S.C BANGALORE
43
GRAPH-10
PIE CHART SHOWING SATISFACTION OF THE
RESPONDENTS WITH THE RANGE OF PRODUCTS
OFFERED BY LIC OF INDIA
CONCEPT: The concept behind this table is to know is any request of the
respondentsis pending with LIC office
TABLE NO-11
IS ANY REQUEST OF THE RESPONDENTS IS PENDING WITH
LIC OFFICE
M.S.R.C.A.S.C BANGALORE
44
PENDING WORK
NUMBER OF
RESPONDENTS
PERCENTAGE %
YES
1
1
NO
99
99
100
100
ANALYSIS: From this table it is clear that
99% of the respondents don’t have any work pending with the LIC office
Only 1% of the respondents are having pending work with the LIC office
INTERPRETATION: the LIC office satisfies all the request of the respondents
GRAPH-11
M.S.R.C.A.S.C BANGALORE
45
PIE CHART SHOWING THE REQUEST OF THE
RESPONDENTS PENDING WITH LIC OFFICE
CONCEPT: The concept behind this table is to know respondents
Awareness about the LIC brands
TABLE NO-12
RESPONDENTS AWARENESS ABOUT THE LIC BRANDS
M.S.R.C.A.S.C BANGALORE
46
POLICY NAME
NUMBER OF
RESPONDENTS
PERCENTAGE%
MONEY BACK
POLICY
65
65
ENDOWMENT
POLICY
20
20
OTHER NEW
POLICIES
15
15
100
100
ANALYSIS: From the above table it is clear that,
Majorities of the respondents are aware of money back policies.
Least number of respondents is aware of new policies.
INTERPRETATION: Majority of the respondents is aware of money back policies.
M.S.R.C.A.S.C BANGALORE
47
GRAPH-12
PIE CHART SHOWING RESPONDENTS AWARENESS
ABOUT THE LIC BRANDS
CONCEPT: The concept behind this table is to know are respondents
Receiving premium notices well in time
TABLE NO -13
ARE RESPONDENTS RECEIVING PREMIUM NOTICES WELL IN
TIME
M.S.R.C.A.S.C BANGALORE
48
PREMIUM
NOTICE
NUMBER OF
RESPONDENTS
PERCENTAGE%
YES
98
98
NO
2
2
100
100
ANALYSIS: From this table it is clear that
Majorities of the respondents receiving premium notices well in time,
i.e. 98%
Only 2% of the respondents are not receiving their premium notices
With in time
INTERPRETATION: Majority of the policyholders is receiving the premium
notices well in time.
GRAPH-13
M.S.R.C.A.S.C BANGALORE
49
ARE RESPONDENTS RECEIVING PREMIUM NOTICES
WELL IN TIME
CONCEPT: The concept behind this table is to know when would the
respondent
like to be contracted for the fulfillments of his/her insurance needs
TABLE NO -14
WHEN WOULD THE RESPONDENT LIKE TO BE CONTRACTED
FOR THE FULFILLMENTS OF HIS/HER INSURANCE NEEDS
M.S.R.C.A.S.C BANGALORE
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TIME PERIOD
NUMBER OF
RESPONDENTS
PERCENTAGE%
IMMEDIATELY
5
5
WITHIN ONE
MONTH
65
65
WITH IN THREE
MONTH
20
20
LATER
10
10
100
100
ANALYSIS: From the above table it is clear that,
Majorities of the respondents would like to be contracted with in one month
Least number of respondents i.e., 5% would like to be contracted immediately.
INTERPRETATION: Majority of the people would like to be contracted for the
fulfillments of insurance needs within one month.
GRAPH-14
M.S.R.C.A.S.C BANGALORE
51
WHEN WOULD THE RESPONDENTS LIKE TO BE
CONTACTED FOR THE FULFILLMENT OF HIS / HER
INSURANCE NEEDS
CONCEPT: The concept behind this table is to know do the respondents feel that lic
has provided adequately the following needs
TABLE NO-15
DO THE RESPONDENTS FEEL THAT LIC HAS PROVIDED
ADEQUATELY THE FOLLOWING NEEDS
M.S.R.C.A.S.C BANGALORE
52
INSURANCE
NEEDS
NUMBER OF
RESPONDENTS
PERCENTAGE%
PROTECTION FOR
SPOUSE AND
CHILDREN & FOR
PAST-RETRIAL
LIFE
60
60
HOUSING
FACILITY TO SUIT
YOUR
CONVENIENCES &
CRITICAL ILLNESS
COVER
25
25
15
15
100
100
EDUCATION OF
YOUR CHILDREN
&
START IN LIFE OF
YOUR CHILDREN
Total
ANALYSIS: From the above table it is clear that,
60% of the respondents have the polices for the “protection for spouse and
children” and for their “past-retrial life”
25% of the respondents have the polices for “housing facility” and pr “critical
illness cover”
INTERPRETATION: Majority of the people are interested in going for the policies
related to protection for spouse and children and for past retrial life.
M.S.R.C.A.S.C BANGALORE
53
GRAPH-15
DO THE RESPONDENTS FEEL THAT LIC HAS
PROVIDED ADEQUATELY THE FOLLOWING NEEDS
CONCEPT: The concept behind this table is to know would respondent like to
enhance his/her financial security through different plans
Table No -16
Would Respondent Like To Enhance His/Her Financial
Security Through Different Plans
M.S.R.C.A.S.C BANGALORE
54
LIC PLANS
NUMBER OF
RESPONDENTS
PERCENTAGE %
CHILDREN’S
PLANS &
HOUSING
FINANCE
67
67
SAVINGS & RISK
ORIENTED PLANS
33
33
100
100
ANALYSIS: From the above table it is clear that,
Majorities of the respondents would like to enhance his financial security through
children’s plan and housing finance.
Least number of respondents would like to enhance his financial security through
saving and risk oriented plans.
INTERPRETATION: Majority of the people would like to enhance their financial
security through children’s plan and housing finance plans.
GRAPH-16
M.S.R.C.A.S.C BANGALORE
55
WOULD THE RESPONDENTS LIKE TO ENHANCE HIS
/HER FINANCIAL SECURITY THROUGH DIFFERENT
PLANS
33%
Children's plans &
housing finance
67%
Savings & risk oriented
plan
CONCEPT: The concept behind this table is to know customer responses
To the service and the office atmosphere of LIC.
TABLE NO-17
CUSTOMER RESPONSES TO THE SERVICE AND THE OFFICE
ATMOSPHERE OF LIC
M.S.R.C.A.S.C BANGALORE
56
ATMOSPHERE
NEAT AND
CLEAN&
SERVICING IS
PROMPT AND
COURTEOUS
NUMBER OF
RESPONDENTS
PERCENTAGE %
YES
96
96
NO
4
4
100
100
ANALYSIS: From the table it is clear that,
96% of the respondents say that the service provided by LIC and the office
atmosphere is good.
4% of the respondents say that the service provided by the LIC and the office
atmosphere is not good.
INTERPRETATION: Service provided by the LIC is good and its office
atmosphere is also good.
GRAPH-17
M.S.R.C.A.S.C BANGALORE
57
PIE CHART SHOWING CUSTOMER RESPONDS TO THE
SERVICE AND THE OFFICE ATMOSPHERE OF LIC
M.S.R.C.A.S.C BANGALORE
58
CHAPTER 5
FINDINGS &
CONCLUSIONS
5.1 FINDINGS
Majorities of respondents having LIC policy belong to age group 20-30.
Majorities of respondents family monthly income are between 10000 to 15000
Majorities of LIC policyholders are employees and businessmen
95% of the respondents satisfied with the overall performance of LIC of India
Information technology is excellent.
Agents give majorities of the awareness of the product.
M.S.R.C.A.S.C BANGALORE
59
Majorities of the respondents are satisfied with the wide range of products offered
by the LIC.
Majorities of the policyholders are receiving the premium notices well in time.
Majorities of the respondents having LIC policy would like to enhance their
financial security through children’s plan and housing financial plans.
Service provided by LIC and the office atmosphere is good.
From the serve conducted among the group of people for LIC we finds there are people
from age group of 20 to 30 and having an income of Rs. 10000 to 15000 and majority of
them are satisfy with the company performance and the range of products and the
services they are providing to the customer after Insurance
5.2 SWOT ANALYSIS
Strengths
Good brand name
Wide range of products
M.S.R.C.A.S.C BANGALORE
60
Products are able to meet different needs of customers
Ability to understand requirement of customer by considering different factors
Apart from tax saving, products facilitate the investment opportunity & provide
better return
The company has good market share
Weaknesses
In spite of having good product line the company is unable to effectively market
the products.
Still company doesn’t concentrate on the customer satisfaction level comparing
with market leader,ICICI in private sector.
Opportunities
Bright future of insurance industry in India.
Huge untapped potential market.
Positive attitude of people toward insurance.
Increasing average income of people would have complementary effect to the
insurance industry.
Threats
M.S.R.C.A.S.C BANGALORE
61
Cutthroat competition in the market.
Many potential entrants.
Big difference between market share of the company and the market leader.
Increasing investment options for people.
5.3 CONCLUSION
M.S.R.C.A.S.C BANGALORE
62
After having analysis, I have noticed that Life Insurance policies,
Which were taken for survey, have been fulfilling the needs of the customers
Considerably well. From the survey I came to know that the new insurance policies like
New jeevan shree, New jeevan Suraksha are not know to the customers so, Life Insurance
Corporation of India should take a step to create awareness of policies In the mind of the
customer. Agents should maintain the good communication with the customer; in this
case agents should take an active participation to create the awareness of the policies
5.4SUGGESTIONS AND RECOMMENDATIONS
M.S.R.C.A.S.C BANGALORE
63
LIC of India should strive hard to create awareness of the policies
LIC thinks that long-term investment earns maximum profit by which
The customers also satisfy by maximum bonus.
The bonus should increase for new emerging schemes
For example jeevan anand new scheme, which is endowment, plan
Having bonuses, survival benefit and accident benefit.
Majorities of the customer are not aware of the new policies, Life
Insurance Corporation should awareness through advertisement.
Majorities of policyholders belong to the age group of 20-30 so lic should target
these people by creating advertisements targeting these people and agent having
good relationship with these target customers.
Majorities of policy holders are having the family monthly income ranging from
10000-15000 so lic should target these people by creating advertisement that
could attract these target customers
About 25% of respondents are not satisfied with after sales service provided by lic
so lic should work on it by collecting premium in time and sending premium
notice well in time
By the serve conducted for the LIC we suggest them to concentrate more on the rural
market and to the income group of 10000 to 15000, because they are the huge market for
the company .The customer those who are not satisfy with the company company should
concentrate on them. The agents should be given more bonus on the new policies, so that
they can remain market leader
M.S.R.C.A.S.C BANGALORE
64
QUESTIONNAIRE
Dear sir/madam
I am assigned to carry out study on “Customer satisfaction towards LIC products “. In
this regard I request you to fill this questionnaire.
1. Name:
2. Age:
10 - 20
20 – 30
30 - 40
40 – 50
50 & above
3. Qualification:
Below Graduation
Graduation
Post Graduation
4. Occupation:
Businessman
M.S.R.C.A.S.C BANGALORE
65
Employee
House Wife
Student
Others
5. Family Monthly Income:
Below 5000
5000 – 10000
10000 – 15000
Above 15000
6. Do you feel that you have provided adequately for your following?
Needs?
Protection for spouse & children
Education of your children
Start in life/marriage of your children
Housing Facility to suit your conveniences
For your past-retrial life
Critical illness cover
7. Would you like to enhance your financial security through?
M.S.R.C.A.S.C BANGALORE
66
Personal loans
Children’s & Risk oriented Plans
Savings & risk oriented plans
Housing finance
8. Is there any variation in service what you expected?
Service
Yes
No
9. Are you aware of the following latest plans?
Jeevan Anand
New Jeevan Shree
New Jeevan Suraksha
New Bima Nivesh
10. How did you come to know about Life Insurance Products?
M.S.R.C.A.S.C BANGALORE
67
Advertisement
Friends /Relatives
LIC Agents
11. Are you satisfied with the pre – delivery demonstration of the Product given by
the LIC agents?
Satisfied
Dissatisfied
12. Please indicate when you would like to be contracted for the
Fulfillment of your insurance needs?
Immediately
With one month
Within three months
Later
13. Would you recommend Life Insurance Products to any of your
Friends/Relatives/Acquaintances?
M.S.R.C.A.S.C BANGALORE
68
Yes
No
14. Are you receiving your premium notice well in time?
Yes
No
15. During your visit of LIC Branch office do you find the
Atmosphere neat and clean
Servicing prompt & courteous
16 .Do you hold an LIC policy on which survival benefit or maturity claim was
Paid to you?
Yes
No
If so, was the payment made in time?
Yes
No
17. Are you satisfied with the overall performance of the LIC of India?
Yes
No
18. Are you satisfied with the “After Sales Service “provided by your Life
Insurance Agents?
Yes
M.S.R.C.A.S.C BANGALORE
69
No
Rank the below service provided by LIC agents
Good
Average
Poor
19. Are you satisfied with the range of the products offered by the LIC?
Yes
No
20. Just think of LIC brands which comes to your mind first (please write below)
1.
…………………………….
11
….......................................
21. Is a request of your s is pending with the LIC office?
Yes
M.S.R.C.A.S.C BANGALORE
70
No
If, so please give details ……………………………………………..
………………………………………………………………………………
22. Suggestion if any ………………………………………………………
:………………………………………………………………………………
Thank You
BIBILOGRAPHY
M.S.R.C.A.S.C BANGALORE
71
MARKETING MANAGEMENT
:
BY PHILIP KOTLER
RESEARCH METODOLOGY
:
BY C.R.KOTARI
CONSUMER BEHAVIOUR
:
LEON SCHIFFMAN
COMPANY REPORT
INTERNET SITES
www.licindia.com
WWW.GOOGLE.COM
M.S.R.C.A.S.C BANGALORE
72
