CHAPTER-1

EXECUTIVE SUMMARY

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 1.EXECUTIVE SUMMARY

Insurance plays an important role in the welfare of human well- being by providing
protection to millions of people against life risks such as uncertain death or accident.
Even the life insurance is fastest growing service sector in India after privatisation and
increase in FDI. Thus it has become essential to study the buying pattern of the life
insurance policies. The current study examines the various factors that affect the
consumer perception towards life insurance policy. Data was collected with the help of
structured questionnaire. The sample constituted of 100 respondents from Mumbai. The
statistical technique used for the analysis are descriptive and factor analysis. The main
finding of study reflected that there are six factors i.e., customised and timely services,
better company reputation, effective service quality, customer convenience, tangible
benefits and healthy customer client relationship that influence the consumer perception
towards life insurance policy.

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 CHAPTER 2

INTRODUCTION

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 2. INTRODUCTION
"The Business of Insurance is related to the protection of the economic values of the
assets". Every human being has the tendency to save to protect him from risks or events
of future. Insurance is one form of savings where in people try to assure themselves
against risks or uncertainties of future. It is assurance against risks or events or losses.
People can save their earnings either in the form gold, fixed assets like property or in
banking and insurance. All the savings of people of a country account for gross
domestic savings. In India, although savings rate is high but people prefer to invest
either in gold or fixed assets so that they can make money out of it. Hence insurance
sector is still untapped in India.

What is Insurance?

Insurance is a tool through which people are compensated due to some

casualty out of the funds (premium) collected from numerous people. Insurance is a
safeguard against uncertain events that may occur in the future.

It is an arrangement where the losses experienced by a few are extended over

several who are exposed to similar risks. It is a protection against financial loss arising
on the happening of an unexpected event. Insurance companies collect premium to
provide security for the purpose. Loss is paid out of the premium collected from people
and the insurance companies act as trustees to the amount so collected. These
companies have proposal forms which are filled to give details of insurance required.
Depending upon the answers in the proposal form insurance companies assess the risk
and decide on the premium.

Insurance companies are risk bearers. They underwrite the risk in return for
an insurance premium. the function of insurance is to provide protection, prevent losses,
capital formation etc. hence insurance can be defined as a tool in which a sum of money
as a premium is paid by the insured in consideration of the insurer's bearing the risk of
paying a large sum it may also be defined as a contract wherein one party insurer) agrees
to pay the other party insured) or his beneficiary, a certain sum upon a given
contingency against which insurance is required.

Insurance industry commands massive funds through sales of insurance

products to large number of clients. Insurers also create liabilities and commit

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themselves to compensate for losses occurring to the policyholders on future date. It
also plays an important role in process of capital formation.

Nature of Insurance

a) Risk sharing and risk transfer: Insurance is used share the financial losses that might
occur to an individual or his family on the happening of specified events. The loss
arising from such events are shared by all the insured in the form of premium Example:
suppose in a village, there are 250 houses, each valued at Rs.200000. Every year one
house gets burnt, resulting into a total loss of Rs 200000.1f all the 250 owners come
together and contribute Rs.800 cash, the common fund would be Rs 200000.This is
enough to pay to the owner whose house gets burnt. Thus, the risk of one owner is
spread over 250 house owners of the village.

b) Risk assessment in advance Insurance companies are risk bearers. They assess the
risk before insuring to charge the amount of premium.

c) It’s not gambling or charity: The uncertainty is changed to certainty by insuring

property and life because the insurer promises to pay a definite sum at damage or death
Insurance is antithesis of gambling Failure of insurance amounts to gambling because
the uncertainty of loss is always looming. Moreover, insurance is not possible without
premium. So, it is different from charity because charity is given without consideration.

d) huge number of insured people: It is essential to insure large number of people or

property to make cost of insurance less consequently premium would also be less.

e) Assists in capital formation: Insurance provides capital to society. Accumulative

funds are invested in productive channels.

Semantics

1. Risk: It is defined as an uncertainty of a financial loss. It is the unintentional decline

in or disappearance of value arising from contingency

2. Policy: It is the document which embodies the insurance contract

3. Whole life policy: It is the policy under which the amount of policy will be paid only
on death of the insured. Premiums may be payable throughout the life or for a limited
period. 4. Endowment policy: Endowment policies entitle the insured to receive the

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amount of the policy on his reaching a certain age and premiums also stops. If death
occurs earlier, amount of the policy will be paid at that time and payment of premium
will also stop at that time.

5. Claim: It is the amount which an insurer must pay against a policy.

6. Reinsurance: It refers to placing a part of the risk by an insurer with another insurer.
The object is to reduce the possible loss to be borne by the original insurer, who pays
premiums at the ordinary rates to the insurers. Insurer must pay commission to the
original insurer.

7. Premium: A periodic payment made on an insurance policy.

8. Insurance penetration: It is defined as insurance premium as a share of gross domestic

product.

9. Insurance density: Insurance density is defined as per capita expenditure on insurance

premium i.e., premium per capita

10. Actuary: The actuary is a specialist who combines an understanding of risks and
mathematical technique to develop financial products to manage these risks, price
financial risk of the company which it takes while selling an insurance policy.

Types of Insurance

Insurance is broadly divided in two segments, based on the nature of insurance, those
are:

1. Life Insurance &

2. Non-life Insurance or General Insurance. It can be again subdivided into the
following categories:
a) Fire Insurance c) Social Insurance &
b) Marine Insurance d) Miscellaneous Insurance. (Health insurance,
Liability insurance etc…)

What is life insurance

Life insurance is a contract between an insurer and a policy owner. A life

insurance policy guarantees the insurer pays a sum of money to named beneficiaries

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when the insured dies in exchange for the premiums paid by the policyholder during
their lifetime.

The life insurance application must accurately disclose the insured’s past
and current health conditions and high-risk activities to enforce the contract.

• Life insurance is a legally binding contract that pays a death benefit to the
policy owner when the insured dies.
• For a life insurance policy to remain in force, the policyholder must pay a single
premium upfront or pay regular premiums over time.
• When the insured dies, the policy’s named beneficiaries will receive the
policy’s face value, or death benefit.
• Term life insurance policies expire after a certain number of years. Permanent
life insurance policies remain active until the insured dies, stops paying
premiums, or surrenders the policy.
• A life insurance policy is only as good as the financial strength of the company
that issues it. State guaranty funds may pay claims if the issuer can’t.

Types of life insurance

Term life insurance

Term life insurance lasts a certain number of years, then ends. You choose the term
when you take out the policy. Common terms are 10, 20, or 30 years. The best term
life insurance policies balance affordability with long-term financial strength.

• Decreasing term life insurance is renewable term life insurance with coverage
decreasing over the life of the policy at a predetermined rate.
• Convertible term life insurance allows policyholders to convert a term policy
to permanent insurance.
• Renewable term life insurance provides a quote for the year the policy is
purchased. Premiums increase annually and are usually the least expensive
term insurance in the beginning.

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Permanent Life Insurance

Permanent life insurance stays in force for the insured’s entire life unless the
policyholder stops paying the premiums or surrenders the policy. It’s typically more
expensive than term.

• Whole life insurance is a type of permanent life insurance that accumulates

cash value. Cash-value life insurance allows the policyholder to use the cash
value for many purposes, such as a source of loans or cash or to pay policy
premiums.
• Universal Life (UL) is a type of permanent life insurance with a cash value
component that earns interest. Universal life features flexible premiums.
Unlike term and whole life, the premiums can be adjusted over time and
designed with a level death benefit or an increasing death benefit.
• Indexed universal (IUL) is a type of universal life insurance that lets the
policyholder earn a fixed or equity-indexed rate of return on the cash value
component.
• Variable universal life insurance allows the policyholder to invest the policy’s
cash value in an available separate account. It also has flexible premiums and
can be designed with a level death benefit or an increasing death benefit.

History of insurance global

For now, we know the meaning of insurance, different types of insurance.

Now let us know the history and reasons for and behind different types of insurance.

Insurance has existed for thousands of years. The first ever type of insurance
was Property Insurance. It became popular about 3000 BC in China. It all started when
Chinese merchants, as well as their investors, wanted to ensure that they would see a
profit from their goods that they shipped overseas. If a ship was lost at sea. An insurance
partner would reimburse the owners of the ship and goods. To pay for the loss the
merchant would be sold into slavery to the insurer until the debt was repaid. This was
so because, a merchant could not afford to pay for the lost goods or even to buy a ship
unless someone invested.

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 Property insurance was also seen in Babylon as well. In Babylon, merchants
and investors entered a contract, in which the supplier of money for a trade agreed to
cancel the loan if the trader was robbed of his goods. The trader who borrowed the
money paid an extra amount for this protection in addition to the usual interest. As for
the lender, collecting these premiums from many traders made it possible for him to
absorb the losses of the few. Later this contract was extended to include provisions for
a family's home and even the death of the insured, where life insurance came into
existence. Slowly this concept started to spread across other places like Greek, Roman.

Since ancient times, communities have pooled some of their resources to

help individuals who suffer loss. Like, about 3500 years ago. Moses instructed the
nation of Israel to contribute a portion of their produce periodically for the alien resident
and the fatherless boy and the widow."

Later the origin of credit insurance, which was included in the Code of
Hammurabi, a collection of Babylonian laws said to predate the Law of Moses, Credit
insurance means, in ancient times the ship owners obtained loans from investors to
finance their trading expeditions. In case, if a ship was lost, the owners were not
responsible to pay hack the loans to the investors. The risk to the lenders was covered
by the interest paid by numerous ship owners, since many ships returned safely.

By the middle of the 14th century, marine insurance was one of the most
popular types of insurance among nations of Europe. Things changed dramatically in
the 17th century in Europe. In 1666, the Great Fire of London bought the need for fire
insurance The Great Fire of London burned for four days and nights. It destroyed 436
acres, 13,200 houses, 89 churches (including Saint Paul's Cathedral), the Custom
House, the Royal Exchange and dozens of other public buildings. Only six people were
victims in the flames, but hundreds died from shock and exposure.

By 1688, Edward Lloyd was running a coffee house in London. Where.

London merchants and bankers met informally to do business. There are financiers who
offered insurance contracts to seafarers wrote their names under the specific amount of
risk that they would accept in exchange for a certain payment called premium. These
insurers came to be known as underwriters. Finally, in 1769, Lloyd's became a formal
group of underwriters that in time grew as an insurance company.

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 The concept of insurance developed at a fast pace with the growth of British
commerce in the 17 and 18* century. The first stock companies to engage in insurance
were chartered in England in the year 1720.

In 1735, the first insurance company in the American colonies was founded
at Charleston. Later in the year 1787, fire insurance corporations were formed in New
York. Then later in the year 1759, the life insurance corporation was started in
Philadelphia, America.

The New York fire which occurred in the year 1835 was the main reason to
draw attention to create reserves to meet unexpected losses. In the year 1837.
Massachusetts first state to require companies by law to maintain such reserves. After
1840, life insurance entered a boom period.

The Workmen's Compensation Act of 1897 in Britain required employers

to insure their employees against industrial accidents. Public liability insurance,
fostered by legislation, made its appearance in the 1880s.it attained major importance
with the advent of the automobile.

Until the 1950s, most insurance companies in the United States were
restricted to provide only one type of insurance, but then legislation was passed to
permit fire and casualty companies to underwrite several classes of insurance. Many
films have since expanded and also were responsible for many mergers.

From this brief accounting of history, we can see how insurance came into
existence. Fortunately for us we no longer must sell ourselves into slavery if our car is
stolen nor we have to be scared of losses due to absence of reserves.

History of Insurance in India

The insurance industry in India over the past century has gone through big
changes. In India this industry reveals the 360 degrees turn. 360 degrees turn means
that it started in India from being an open competitive market to nationalization and
back to a liberalized market again.

Insurance industry in India started as a fully private system with no

restriction on foreign participation in the Nineteenth Century. Before independence, a
few British insurance companies dominated the Market. Life insurance was first set up

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in India through a British company called the Oriental Life Insurance Company in 1818,
followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life
Insurance Society in 1829 All of these companies operated in India but did not insure
the lives of Indians. They were there insuring the lives of Europeans living in India.
Some of the companies that started later did provide insurance for Indians. But they
were treated as "substandard" and therefore had to pay an extra premium of 20% or
more. The first company that had policies that could be bought by Indians with "fair
value" was the Bombay Mutual Life Assurance Society starting in 1871.

The first general insurance company. Triton insurance Company Ltd.,

established in 1850. It was owned and operated by the British. The first general
insurance company was the Indian Mercantile Insurance Company Limited set up in
Bombay in 1907.By 1938; the insurance market in India had nearly 176 companies
(both life and non-life).

After the independence, the industry went to the other extreme. It became
a state-owned monopoly. The industry started to witness a problem like fraud. Hence
many regulations were put in place to reduce and control the problems in the industry.
After which Insurance was nationalized. In 1956, the then finance minister S. D.
Deshmukh announced nationalization of the life insurance business and then the general
insurance business was nationalized in 1972. Only in 1999 private insurance companies
have been allowed back into the business of insurance with a maximum 26% of foreign
holding.

Benefits of Life Insurance

There are many benefits to having life insurance. Below are some of the most
important features and protections offered by life insurance policies. Most people use
life insurance to provide money to beneficiaries who would suffer a financial hardship
upon the insured’s death. However, for wealthy individuals, the tax advantages of life
insurance, including the tax-deferred growth of cash value, tax-free dividends, and tax-
free death benefits, can provide additional strategic opportunities.

Avoiding Taxes

The death benefit of a life insurance policy is usually tax-free. Wealthy individuals
sometimes buy permanent life insurance within a trust to help pay the estate taxes that

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will be due upon their death. This strategy helps to preserve the value of the estate for
their heirs.

Tax avoidance is a law-abiding strategy for minimizing one’s tax liability and should
not be confused with tax evasion, which is illegal.

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 CHAPTER 3

INDUSTRY OVERVIEW

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 3.INDUSTRY OVERVIEW

3.1 Life Insurance

The insurance industry of India has 57 insurance companies - 24 are in the life insurance
business, while 34 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. There are six public sector
insurers in the non-life insurance segment. In addition to these, there is a sole national
re-insurer, namely General Insurance Corporation of India (GIC Re). Other
stakeholders in the Indian Insurance market include agents (individual and corporate),
brokers, surveyors and third-party administrators servicing health insurance claims.
The insurance sector is made up of companies that offer risk management in the form
of insurance contracts. The basic concept of insurance is that one party, the insurer, will
guarantee payment for an uncertain future event. Meanwhile, another party, the insured
or the policyholder, pays a smaller premium to the insurer in exchange for that
protection on that uncertain future occurrence.

As an industry, insurance is regarded as a slow-growing, safe sector for investors. This

perception is not as strong as it was in the 1970s and 1980s, but it is still generally true
when compared to other financial sectors.

Market size

The life insurance industry is expected to increase at a CAGR of 5.3% between 2019
and 2023. India’s insurance penetration was pegged at 4.2% in FY21, with life
insurance penetration at 3.2% and non-life insurance penetration at 1.0%. In terms of
insurance density, India’s overall density stood at US$ 78 in FY21.

Premiums from India’s life insurance industry is expected to reach Rs. 24 lakh crore
(US$ 317.98 billion) by FY31.

In the first half of FY22, the life insurance industry recorded growth rate of 5.8%
compared with 0.8% in the same period last year.

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The gross first year premium of Life insurers increased by 6.94% in 2021-22 (until
January 2022) to Rs. 2,27,188 crore (US$ 29.54 billion).

Between April 2021 and January 2022, gross premiums written off by non-life insurers
reached Rs. 227,188.89 crore (US$ 21.24 billion), an increase of 6.94% over the same
period in FY21. In January 2022, total premium earned by the non-life insurance
segment stood at Rs. 21,957.03 crore (US$ 2.85 billion), as compared to the Rs.
21389.70 crore (US$ 2.77 billion) recorded in January 2021.

The market share of private sector companies in the general and health insurance market
increased from 48.03% in FY20 to 49.31% in FY21.

Premiums from new businesses of life insurance firms in India totalled US$ 81.7 billion
in FY21, representing a 2.8% increase over FY20.

Six standalone private sector health insurance companies registered a jump of 66.6% in
their gross premium at Rs 1,406.64 crore (US$ 191.84 million) in May 2021, as against
Rs. 844.13 crore (US$ 115.12 million) earlier.

In March 2021, health insurance companies in the non-life insurance sector increased
by 41%, driven by rising demand for health insurance products amid COVID-19 surge.

In July 2021, non-life insurers’ premium, which include general, standalone and
specialised public-sector, recorded 19.46% YoY growth and reached Rs. 20,171.15
crore (US$ 2.71 billion) against Rs. 16,885 crore (US$ 2.27 billion) in the same month
last year.

According to S&P Global Market Intelligence data, India is the second-largest

insurance technology market in Asia-Pacific, accounting for 35% of the US$ 3.66
billion insurtech-focused venture investments made in the country.

Governments initiatives

The Government of India has taken number of initiatives to boost the insurance
industry. Some of them are as follows:

•In 2022, the Indian government plans to sell a 7% stake in LIC for Rs. 50,000 crore
(US$ 6.62 billion). This is the largest initial public offering (IPO) in India.

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•In November 2021, the Indian government signed an agreement with the World Bank
for a US$ 40 million project to advance the qualities of health services in Meghalaya,
including the state’s health insurance programme.

•In September 2021, the Union Cabinet approved an investment of Rs. 6,000 crore (US$
804.71 million) into entities, offering export insurance cover to facilitate additional
exports worth Rs. 5.6 lakh crore (US$ 75.11 billion) over the next five years.

•In August 2021, the Parliament passed the General Insurance Business
(Nationalisation) Amendment Bill. The bill aims to allow privatisation of state-run
general insurance companies.

•Union Budget 2021 increased FDI limit in insurance from 49% to 74%. India's
Insurance Regulatory and Development Authority (IRDAI) has announced the
issuance, through Digilocker, of digital insurance policies by insurance firms.

•Under the Union Budget 2021, Finance Minister Ms. Nirmala Sitharaman announced
that the initial public offering (IPO) of LIC will be implemented in FY22, as part of the
consolidation in the banking and insurance sector. Though no formal market valuation
has been undertaken, LIC’s IPO has the potential to raise Rs. 1 lakh crore (US$ 13.62
billion).

•In June 2021, the government extended a Rs. 50 lakh (US$ 66.85 thousand) insurance
coverage scheme for healthcare workers across India until the next one year.

•In February 2021, the Finance Ministry announced to infuse Rs. 3,000 crore (US$
413.13 million) into state-owned general insurance companies to improve the overall
financial health of companies.

•Under Union Budget 2021, fund of Rs. 16,000 crore (US$ 2.20 billion) has been
allocated for crop insurance scheme.

Types of Insurance Companies

Not all insurance companies offer the same products or cater to the same customer base.
Among the largest categories of insurance companies are accident and health insurers;
property and casualty insurers; and financial guarantors. The most common types of
personal insurance policies are auto, health, homeowners, and life. Most individuals in
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the United States have at least one of these types of insurance, and car insurance is
required by law.

Accident and health companies are probably the most well-known. These include
companies such as UnitedHealth Group, Anthem, Aetna and AFLAC, which are
designed to help people who have been physically harmed.

Life insurance companies mainly issue policies that pay a death benefit as a lump sum
upon the death of the insured to their beneficiaries. Life insurance policies may be sold
as term life, which is less expensive and expires at the end of the term or permanent
(typically whole life or universal life), which is more expensive but lasts a lifetime and
carries a cash accumulation component. Life insurers may also sell long-term disability
policies that replace the insured's income if they become sick or disabled. Well-known
life insurers include North-western Mutual, Guardian, Prudential, and William Penn.

Property and casualty companies insure against accidents of non-physical harm. This
can include lawsuits, damage to personal assets, car crashes and more. Large property
and casualty insurers include State Farm, Nationwide and Allstate.

Businesses require special types of insurance policies that insure against specific types
of risks faced by a particular business. For example, a fast-food restaurant needs a
policy that covers damage or injury that occurs as a result of cooking with a deep fryer.
An auto dealer is not subject to this type of risk but does require coverage for damage
or injury that could occur during test drives.

There are also insurance policies available for very specific needs, such as kidnap and
ransom (K&R), medical malpractice, and professional liability insurance, also known
as errors and omissions insurance.

Some companies engage in reinsurance to reduce risk. Reinsurance is insurance that

insurance companies buy to protect themselves from excessive losses due to high
exposure. Reinsurance is an integral component of insurance companies' efforts to keep
themselves solvent and to avoid default due to pay-outs, and regulators mandate it for
companies of a certain size and type.

For example, an insurance company may write too much hurricane insurance, based on
models that show low chances of a hurricane inflicting a geographic area. If the
inconceivable did happen with a hurricane hitting that region, considerable losses for

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the insurance company could ensue. Without reinsurance taking some of the risks off
the table, insurance companies could go out of business whenever a natural disaster
hits.

Mutual vs. Stock Insurance Companies

Insurance companies are classified as either stock or mutual depending on the

ownership structure of the organization. There are also some exceptions, such as Blue
Cross Blue Shield and fraternal groups which have yet a different structure. Still, stock
and mutual companies are by far the most prevalent ways that insurance companies
organize themselves.

Worldwide, mutual insurance companies accounted for 26.7% of the market share in
2017. In the U.S., 39.9% of the market belonged to mutual insurers.

A stock insurance company is a corporation owned by its stockholders or shareholders,

and its objective is to make a profit for them. Policyholders do not directly share in the
profits or losses of the company. To operate as a stock corporation, an insurer must
have a minimum of capital and surplus on hand before receiving approval from state
regulators. Other requirements must also be met if the company's shares are publicly
traded. Some well-known American stock insurers include Allstate, MetLife, and
Prudential.

A mutual insurance company is a corporation owned exclusively by the policyholders

who are "contractual creditors" with a right to vote on the board of directors. Generally,
companies are managed and assets (insurance reserves, surplus, contingency funds,
dividends) are held for the benefit and protection of the policyholders and their
beneficiaries.

Management and the board of directors determine what amount of operating income is
paid out each year as a dividend to the policyholders. While not guaranteed, there are
companies that have paid a dividend every year, even in difficult economic times. Large
mutual insurers in the U.S. include North-western Mutual, Guardian, Penn Mutual, and
Mutual of Omaha.

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3.1 Growth drivers

• Favourable Demographics

Younger working population proportion & rise in nuclear family structures is driving
insurance coverage

• Government Programs

Govt. initiatives such as PM-JAY, PMFBY, PMJJBY, PMSBY etc. are increasing
insurance penetration

• Motor Industry

Strong outlook for motor vehicles market driven by personal mobility needs to further
drive motor insurance penetration

• Growing Household Savings

Increase in formalization of household savings and awareness towards financial

products

3.2 Insurance Sector in India

Insurance industry in India has seen a major growth in the last decade along with an
introduction of a huge number of advanced products. This has led to a tough
competition with a positive and healthy outcome.

Insurance sector in India plays a dynamic role in the wellbeing of its economy. It
substantially increases the opportunities for savings amongst the individuals,
safeguards their future and helps the insurance sector form a massive pool of funds.

With the help of these funds, the insurance sector highly contributes to the capital
markets, thereby increasing large infrastructure developments in India.

The Indian Insurance Sector is basically divided into two categories – Life Insurance
and Non-life Insurance. The Non-life Insurance sector is also termed as General
Insurance. Both the Life Insurance and the Non-life Insurance is governed by the
IRDAI (Insurance Regulatory and Development Authority of India).

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The role of IRDA is to thoroughly monitor the entire insurance sector in India and also
act like a custodian of all the insurance consumer rights. This is the reason all the
insurers have to abide by the rules and regulations of the IRDAI.

The Insurance sector in India consists of total 57 insurance companies. Out of which
24 companies are the life insurance providers and the remaining 33 are non-life
insurers. Out which there are seven public sector companies.

Life insurance companies offer coverage to the life of the individuals, whereas the non-
life insurance companies offer coverage with our day-to-day living like travel, health
insurance, our car and bikes, and home insurance. Not only this, but the non-life
insurance companies provide coverage for our industrial equipment’s as well. Crop
insurance for our farmers, gadget insurance for mobiles, pet insurance etc. are some
more insurance products being made available by the general insurance companies in
India.

The life insurance companies have gained an investment prospectus in the recent times
with an idea of providing insurance along with a growth of your savings. But the general
insurance companies remain reluctant to offer pure risk cover to the individuals.

The Present of Insurance Sector in India

So far as the industry goes, LIC, New India, National Insurance, United insurance and
Oriental are the only government ruled entity that stands high both in the market share
as well as their contribution to the Insurance sector in India. There are two specialized
insurers – Agriculture Insurance Company Ltd catering to Crop Insurance and Export
Credit Guarantee of India catering to Credit Insurance. Whereas others are the private
insurers (both life and general) who have done a joint venture with foreign insurance
companies to start their insurance businesses in India.

3.3 Life Insurance Companies:

Private Sector Companies

• Aegon Life Insurance Co. Ltd.

• Aviva Life Insurance Co. India Ltd.

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• Bajaj Allianz Life Insurance Co. Ltd.

• Bharti AXA Life Insurance Co. Ltd.

• Birla Sun Life Insurance Co. Ltd.

• Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

• DHFL Pramerica Life Insurance Co. Ltd.

• Edelweiss Tokio Life Insurance Co. Ltd

• Exide Life Insurance Co. Ltd.

• Future Generali India Life Insurance Co. Ltd.

• HDFC Standard Life Insurance Co. Ltd.

• ICICI Prudential Life Insurance Co. Ltd.

• IDBI Federal Life Insurance Co. Ltd.

• IndiaFirst Life Insurance Co. Ltd

• Kotak Mahindra Old Mutual Life Insurance Ltd.

• Max Life Insurance Co. Ltd.

• PNB MetLife India Insurance Co. Ltd.

• Reliance Life Insurance Co. Ltd.

• Sahara India Life Insurance Co. Ltd.

• SBI Life Insurance Co. Ltd.

• Shriram Life Insurance Co. Ltd.

• Star Union Dai-Ichi Life Insurance Co. Ltd.

• Tata AIA Life Insurance Co. Ltd.

3.4General Insurance Companies:

Private Sector Companies

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• Aditya Birla Health Insurance Co. Ltd.

• Bajaj Allianz General Insurance Co. Ltd.

• Bharti AXA General Insurance Co.Ltd.

• Cholamandalam General Insurance Co. Ltd.

• Future Generali India Insurance Co.Ltd.

• HDFC ERGO General Insurance Co. Ltd.

• ICICI Lombard General Insurance Co. Ltd.

• IFFCO-Tokio General Insurance Co. Ltd.

• Kotak General Insurance Co. Ltd.

• L&T General Insurance Co. Ltd.

• Liberty Videocon General Insurance Co. Ltd.

• Magma HDI General Insurance Co. Ltd.

• Raheja QBE General Insurance Co. Ltd.

• Reliance General Insurance Co. Ltd.

• Royal Sundaram Alliance Insurance Co. Ltd

• SBI General Insurance Co. Ltd.

• Shriram General Insurance Co. Ltd.

• TATA AIG General Insurance Co. Ltd.

• Universal Sompo General Insurance Co.Ltd.

3.4 Health Insurance Companies

• Apollo Munich Health Insurance Co.Ltd.

• Star Health Allied Insurance Co. Ltd.

• Max Bupa Health Insurance Co. Ltd.

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• Religare Health Insurance Co. Ltd.

• Cigna TTK Health Insurance Co. Ltd.

This collaboration with the foreign markets has made the Insurance Sector in India only
grow tremendously with a high current market share. India allowed private companies
in insurance sector in 2000, setting a limit on FDI to 26%, which was increased to 49%
in 2014. IRDAI states – Insurance Laws (Amendment) Act, 2015 provides for
enhancement of the Foreign Investment Cap in an Indian Insurance Company from 26%
to an Explicitly Composite Limit of 49% with the safeguard of Indian Ownership and
Control.

Private insurers like HDFC, ICICI and SBI have been some tough competitors for
providing life as well as non-life products to the insurance sector in India.

The Future of Insurance Sector In India

Though LIC continues to dominate the Insurance sector in India, the introduction of the
new private insurers will see a vibrant expansion and growth of both life and non-life
sectors in 2017. The demands for new insurance policies with pocket-friendly
premiums are sky high. Since the domestic economy cannot grow drastically, the
insurance sector in India is controlled for a strong growth.

With the increase in income and exponential growth of purchasing power as well as
household savings, the insurance sector in India would introduce emerging trends like
product innovation, multi-distribution, better claims management and regulatory trends
in the Indian market.

The government also strives hard to provide insurance to individuals in a below poverty
line by introducing schemes like the

• Pradhan Mantri Suraksha Bima Yojana (PMSBY),

• Rashtriya Swasthya Bima Yojana (RSBY) and

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Introduction of these schemes would help the lower and lower-middle income
categories to utilize the new policies with lower premiums in India.

23
With several regulatory changes in the insurance sector in India, the future looks pretty
awesome and promising for the life insurance industry. This would further lead to a
change in the way insurers take care of the business and engage proactively with its
genuine buyers.

Some demographic factors like the growing insurance awareness of the insurance,
retirement planning, growing middle class and young insurable crowd will substantially
increase the growth of the Insurance sector in India.

24
 CHAPTER-4

COMPANY OVERVIEW

25
 4.COMPANY OVERVIEW

Company’s Address

Vibgyor Advisors

202, Shivai Industrial Estate,

Saki Naka, Andheri, Mumbai, Maharashtra 400072.

Tel No: 022 4012 2167

Email id: vibgyoradvisors@gmail.com

4.1 Company Profile

Vibgyor Advisors Pvt Ltd.

Type-Private Company

Industry-Financial Service Industry

Founded-2016

Headquarter-Mumbai, Maharashtra, India

Key People-Sachin Neema (Founder)

26
4.2 Nature of Organization

Vibgyor Advisors is a financial services-focused first-generation firm. It works in a

variety of financial services industries and offers a comprehensive range of services to
its valued clients. With a client centric approach, it advises both individuals and
businesses on their diverse needs. It aspires to be the best at all they do. Vibgyor
Advisors has a penchant for delivering solutions that are both valuable and long-lasting
and sustainable. It's a first-generation advisory firm that specializes in wealth
management and corporate consulting.

4.3 Founder of Vibgyor Advisors:

Vibgyor Advisors was started by Mr. Sachin Neema. He is a management graduate

from JBIMS, Mumbai and a mechanical engineer from VITI, Mumbai. He has about
22 years of experience in equity markets and has worked as Analyst, Head of research,
Fund manager and has been instrumental in running business segments for some of the
leading companies in the industry like HDFC , IIFL and Tata

4.4 Brief History of the company:

•The company was incorporated on 5th December 2016.

•But the main work was stared in 2019. The period from date of incorporation to 2019
was planning period.

•Later when in 2019 the owner bought an office in Ghatkopar, is when he hired 20
interns to go on the field work.

•So basically, what these 20 interns use to do is that they use to click pictures of big
vehicles and there is app where if you put the vehicle registration number, we get to
know the due date when the vehicles insurance.

•The interns use to do the research work and then call the vehicles owner to convince
to buy insurance through our company.

27
•Till 2019 due to his experience in this field, the founder Sachin Neema had used
networking and made tie ups with many banks and insurance company.

4.5 Banks that Vibgyor Advisors has tie ups with:

1) Bank of Baroda 8) ICICI bank 15) Induslnd Bank

2) Bank of India 9) UCO bank 16) Syndicate Bank

3) Canara bank 10) Bank of Maharashtra 17) Union bank of India

4) State bank of India 11) Kotak Mahindra bank 18) IDBI Bank

5) Punjab national bank 12) Federal bank 19) Central bank of India

6) HDFC bank 13) Karnataka bank 20) Yes Bank

7) Axis bank 14) Karur Vysya bank

4.6 Value of the company

Vibgyor Advisors with its client's centric approach doing valuable quality work in the
field that it operates, is a preferred partner of choice for its clients looking for excellence
values.

It focuses on 5 major factors:

Integrity:

• We are fair and honest in our conduct.

• We deal all our duties utmost ethically.

• We conduct all deals transparently thus aiming to provide better service to our
customers.

Dedication:

• Our passion for work helps us to put consistent efforts.

• Our dedicated efforts will surely bring out the best solution.

28
Client Centric Approach:

• We believe in putting our clients as out topmost priority in every situation

Trust:

• Our loyalty towards our clients are paramount.

• We affirm that our honesty and dedication know no bounds.

Solution Based Approach:

• We understand our client's requirement and direct our efforts in fulfilling them.
We assure to give our best to find the proper solution.

Creativity:

• We create an environment where employees can think big and have fun.

• We work with our minds afresh that brings out new and innovative solutions.

4.7 Services Provided by Vibgyor Advisors:

1) Wealth Management Service

• Equity Advisory Services

• Option Strategies

• Trading Portfolios

• Portfolio Construction and Evaluation

• Research and Industry Analysis

• Start-up Investments

• Real Estate

• Debt Investments and Lending

• Project Investments

29
2) Investment Banking

• Investment Banking

• Start Ups

• Fund Raising

• Corporate Advisory

• Asset Sale

• Brand Acquisition

• Project Advisory

Trading and Proprietary Investment

• Direct and Client Investments

• Agency Business

• Special Projects

Real Estate

• Project Funding

• Direct and Client Investments

• Agency Business

• Special Projects

Investor Relations

• Corporate Advisory

• Investor Relations

• Assignment based projects

30
Distribution of Financial Service

• Mutual Funds

• Equity Broking

• Structured Products

• PMS

• Life & Vehicle Insurance

• Personal & Business Loans

31
 CHAPTER-5

PROJECT DETAILS

32
 5.PROJECT DETAILS

5.1 Objectives of project:

• To know about the various Investment alternatives that is mostly preferred by the
people.

• To find out the important criteria that people think about before investing in a life
insurance policy.

• To find out whether gender bias involved in investing life insurance or not.

5.2 Research Methodology:

Methodology is a systematic way of solving problem it includes the research methods

for solving a problem it includes the research methods for solving the problem.

Type of Research - Descriptive Research

Data Source - Primary and Secondary Data

Data Collection Method - Interview and Survey

Data Collection Tools -Questionnaires

Sampling Source - Mumbai

Sample Size – 100

Sample design the target population of the study consists of various respondents of
various places. This survey was done by collecting the data from the respondents.

Sample size After due consultation with the company supervisor as well as with the
college guide, also keeping in mind the requirements of the company for the research,
the sample size that was found to be appropriate for the study was 100.

33
Sampling technique the sampling technique that adapted to conduct the survey was
Convenient Random Sampling and the area of the research was concentrated in the city
of Erode only. The survey was conducted by visiting different places like colleges,
corporate offices, respondent's home etc.

size that was found to be appropriate for the study was 100

5.3 Limitation of the project

The following limitations can be pointed out from the research that I conducted

a) The sample size chosen for the questionnaire was only 100 and that may not
represent the true picture of the consumer perception about the Life Insurance sector.

b) The research got continued to the city of Mumbai. The respondent belonged only to
Mumbai and not others who were out of Mumbai.

c) Nearly 98% of the respondent belonged to the age group of 20-50 years and only 2%
were above 50 years. So, the responses and the opinions of the experienced and aged
were not available. So, the findings may not be correct when we think about the opinion
of the elderly people about the life insurance.

d) The selection of people for the questionnaire was done based on convenient random
sampling, so, there were certain cases in which the people selected did not have any life
insurance policy, so they could not give any positive feedback regarding the important
criteria to be considered before taking a life insurance policy. So, this further reduced
the actual number of respondents to 76 from 100.

e) The product offered by different companies had different options and names in them,
so at the time of comparison it became very difficult. The parameters for comparison
were also different in the selected companies.

f) One of the important criteria that was selected by the respondents which they consider
before taking an insurance policy was “Company Image”, but there was no parameter
to compare criteria like this between the competitors.

34
 CHAPTER 6

DATA ANALYSIS AND INTERPRETATION

35
6.1 Global scenario of the Insurance industry
If we see the table-6.1 in terms of both the premium value and the total market share of
some of the leading countries operating in the Insurance sector, the following picture
emerges in front of us.

Table 6.1

Country Total Life Market

Premium (in Share in
$bn) percentage
USA 593 28.29
Japan 334 8.49
China 313 11.07
UK 235 6.48
France 165 4.97
Italy 125 3.28
Taiwan 102 2.35
Germany 96 4.65
India 55 1.92
Others 804 28.5

The above table shows that US is still the leader in Life Insurance sector, closely
followed by Japan, India’s share in the global market has doubled since 2006
() to 2019 (1.92%). The growth of China is the maximum from 3.07% in 2006
to 8.48% in 2019. The total premium received in life insurance sector of the
year 2019 was 2,822 billion in the year 2019.

36
Chart - 6.1

Shares of different countries in Life Insurance

TOTAL LIFE PREMIUM

21%

29%

Japan
India
12%

4% UK
China
Germany Italy 8%
11%
3% 4%
6%

Table – 6.2

Market share of LIC and Private Players

Market Market share
Players In Percentage
Private 34.2
Players
LIC 65.8
Total 100

Interpretation:

LIC market share continued to decline in the period from 2007 to 2019, it
declined to 65.8% from 71.56%. On the other hand, the market share of
the private player is continuously growing up, it increased to 34.2% from
28.44% in terms of insurance premium.

37
 Chart – 6.2

Market share of LIC and Private Players

MARKET SHARE OF LIC AND PRIVATE

PLAYERS UPTO JUNE 2021

Player
34%

LIC
Table - 6.3
Various Investment alternatives available to consumers

Let us see what are the various investment alternatives that are available to the
people and among that which are the most preferred one. Now, from the data
collected from the 100 respondents which were surveyed through the
questionnaire, the following representation can be made:
INVESTMENT TOTAL RANK
ALTERNATIV SCORE
ES
Bank Deposits 6.75 I
Insurance 6.46 II
Post Office 5.57 III
Gold & Silver 5.33 IV
Real Estate 5.07 V
Mutual Funds 4.83 VI
Equity Shares 3.84 VII
Public 3.78 VIII
Provident
Fund (PPF)
Bond & 1.74 IX
Debentures

38
Interpretation:

From the above table-6.3 ranks for theses investment alternatives

were analyzed by weighted average method. From this analyze we found
Bank Deposits is the most preferred investment alternative among the
people with the average of 6.75, secondly Insurance with the average of
6.46, followed by other investment alternatives like Post Office (5:57).
Gold and Silver (5.33), Real Estate (5.07), Mutual Fund (4.83), Equity
(3.84), PPF (3.78) and least preferred alternative is that Bond and
Debenture (1.74), we understood from this analyze that people prefer the
safe and secure investment alternatives like bank

deposit, insurance, real estate, then risky investment alternatives like

bonds, equities etc.

The reason that can be attributed for the liking of people towards
bank deposit that people expect safety for their money they deposit even
though there is less appreciation on their deposit. Secondly insurance, may
be because that insurance provides both life cover as well as security to the
holder of the policy and to the family members of the insurance holders.
Now a days insurance is also providing option to invest in the markets
through plans like ULIP, which gives the holder both the life cover as well
as an opportunity to earn income at the market rate. Then recently real
estate is the major investment alternative among the people particularly
among Erode, this is mainly due to the increase in land value and also good
long term investment preference. Gold and silver also good investment
alternative among people due to the frequent appreciation in the values of
gold, next is that mutual fund which is also the preferable investment
alternative due to low risk on their investment, and other alternatives
which are not much preferred were equities, bonds etc. mainly due to the
risk involved in it.

39
 Chart – 6.3 Various investment alternatives available to consumer.

Investment Alternative Preferred by People

8
6.75
7 6.46
6 5.57 5.33 5.07 4.83
5
3.84 3.78
4

3
1.74
2

0 Investment Alternatives

Bank Deposits Insurance Post Office

Gold & Silver Real Estate Mutual Fund

Equity Shares PPF Bond & Debentures

Segmentation of the respondents on the basis of certain important

criteria: Now, let us turn our attention towards the respondent who were
covered under this study, these respondents can be categorized on the
basis of certain important criteria like age group, annual income, life
insurance policy holders and awareness of ICICI Prudential Life
Insurance in the following way

Table - 6.4 Age Group

AGE GROUP No. of PERCETAGE
RESPONDENT
Below 30 Years 50 50
31-40 Years 32 32
41-50 Years 16 16
`51-60 Years 2 2
Above 60 Years 0 0
Total 100 100

40
From this table-6.4 we can see that 50% of the respondent belonged to the age
group of below 30 years, followed by 32% who belonged to the age group
between 31-40 years, then 16% of respondents belong to 41-50 years and only
2% from the respondents belong to 51-60 years but there is no respondent from
the age group above 60.

Chart – 6.4

Age Group

2
16
Below 30 Years
31-40 Years
50 41-50 Years
51-60 Years
32 Above 60 Years

Table – 6.5
ANNUAL INCOME No. of PERCENTAGE
LEVEL RESPONDENTS
Below 1 Lakh 33 33
1.01-3 Lakh 60 60
3.01-5 Lakh 4 4
Above 5 Lakh 3 3
Total 100 100

Annual Income Level

Interpretation: From the above table-6.5 we can see that 33% of the respondents
belonged to a group which has an annual income of below 1 lakh, followed by highly
60% who belonged to the group of annual income

41
between 1-3 lakh, then 4% who have an annual income between 3-5 lakh and
3% of respondent who have an annual income above 5 lakhs.
Chart – 6.5

4 3

33

60

Below 1 Lakh 1.01-3 Lakh 3.01-5 Lakh Above 5 Lakh

Table 6.6

Hold of life insurance

HOLD LIFE No. of PERCENTA
INSURANCE RESPONDE GE
POLICY NTS
Yes 76 76

No 24 24
TOTAL 100 100

Interpretation:

Among the 100 respondents that were taken as a sample size. 76 of them had
life insurance policy that was either taken by him/herself or it was taken by
their parents on their name, while 24 of them did not have any kind of Life
insurance policy from any company.

42
 Chart – 6.6
Hold Life Insurance

HOLD LIFE INSURANCE POLICY

24%

76%

YES NO

6.7 Important criteria before taking life insurance on the basis of

insurance policy-

Now, let us see what criteria people consider most important before taking a
life insurance policy (the criteria for the study have been mentioned before).
Here, the highly important criterion as perceived by the people is rated as 5, if
people perceived that is only important it is rated 4, if people perceive that it
can be only neutrally important is rated as 3, then the least important criterion
is being rated as 2 and if perceived that it is not important it is rated as 1(as
there are 8 criteria that have been suggested under the research study). Here
the number of respondents is only 76, because those 24 people who do not
have any life insurance policy have been excluded from the purview of the
study

43
Table – 6.7.

Premium
RATING No. of PERCENTAGE
RESPONDENTS
5 39 51.4
4 31 40.8
3 3 3.9
2 3 3.9
1 - -

Total Insurance 76 100

Holders
Total Non-Users 24
TOTAL 100

Interpretation:

Now if we consider one of the criteria, we can see that 51.4% of the respondent
has rated premium as the highly important thing that they consider before
taking any insurance policy from any company, and nobody has rated it as the
not important criterion. So, it can be clearly interpreted that premium that the
policy holder must pay to continue his/her policy plays a very important role
before selecting the terms and conditions of the policy and also the company
from which the policy is to be taken.

44
 Chart 6.7.1.

Premium

Premium

3 3

39
31

1 2 3 4

Table – 6.7.2

Charges
RATING No. of PERCENTA
RESPONDE GE
NTS
5 17 22.4
4 46 60.5
3 12 15.8
2 1 1.3
1 - -

Total Insurance 76 100

Holders
Total Non-Users 24
TOTAL 100

Interpretation-
Now if we consider the charges the customer has to pay to the insurance
company like Fund Management charges, administration charges are. most of
the people nearly 61% respondent consider

45
it as an important criterion which can dictate the terms before deciding on
whether to take the policy or not. But a few people (only 22.4% of the total
respondents), consider it to be the highly important criterion before taking the
decision on life insurance policy.

Chart 6.7.2
Charges

Charges
1

12 17

46

1 2 3 4

Table – 6.7.3

Policy Term

RATING No. of PERCENTA

RESPONDE GE
NTS
5 29 38.1
4 36 47.4
3 10 13.2
2 1 1.3
1 - -

Total Insurance 76 100

Holders
Total Non-Users 24
TOTAL 100

46
Interpretation:
The tenure of the policy that is the policy term depends on the policy holder
but sometimes the insurer can also influence the policy term by giving some
additional benefits on policies taken for a longer period of time or vice versa.
In the study that was conducted by us, we found out that nearly 48% of the
respondents think that policy term offered by the company is the important
thing that one should consider before taking any life insurance policy while
38.1% of the respondents think that it is the highly important thing that one
should consider before taking any life insurance policy.
Chart 6.7.3

policy term
50 47.4
45
40 38.1
36
35
29
30
25
20
13.2
15 10
10
5 1 1.3 0 0
0
5 4 3 2 1

No. of RESPONDENTS PERCENTAGE

Table – 6.7.4 Bonus and Interest Paid

RATING No. of PERCENTAGE
RESPONDENTS
5 40 52.6
4 24 31.6
3 8 10.6
2 2 2.6
1 2 2.6
Total Insurance 76 100
Holders
Total Non-Users 24
TOTAL 100

47
Interpretation:
Bonus and interest are paid by the companies to the policy holder for the policies
which are with profit policy i.e. if a person takes a with profit policy, he/she also
becomes liable to get a certain percentage of the profit that the company makes
in a certain financial year. 53% of the respondents consider it as the highly
important criterion before taking a life insurance policy and only 2.6% of
respondents considered it to not important

Chart 6.7. Bonus and interest paid

Bonus and Interest paid

60 52.6
50
40
40 31.6
30 24
20
8 10.6
10 2 2.6 2 2.6
0
5 4 3 2 1

No. of RESPONDENTS PERCENTAGE

Table – 6.7.5 Services (Pre and Post Sales)

RATING No. of PERCENTA
RESPONDE GE
NTS
5 26 34.3
4 35 46.0
3 11 14.5
2 2 2.6
1 2 2.6

Total Insurance 76 100

Holders
Total Non-Users 24
TOTAL 100

48
Interpretation:
While conducting the study we have met many respondents who think that
many of the companies provide them satisfactory services only till the policy
is being taken by the respondent, but after that if there is any requirement from
the point of view of the customer, the company does not pay the same attention
to them as they had paid earlier So, nearly 34% of the respondents feel that
services (both pre and post sales) provided by the company is highly important
to consider before undertaking any kind of life insurance policy.

Chart – 6.7.5 Services (Pre and Post Sales)

Services
50 46

40 34.3 35

30 26

20 14.5
11
10
2 2.6 2 2.6
0
5 4 3 2 1

No. of RESPONDENTS PERCENTAGE

Table 6.7.6 Accessibility

RATING No. of PERCENTA
RESPONDE GE
NTS
5 21 27.6
4 47 61.8
3 4 8.0
2 2 2.6
1 2 2

Total Insurance 76 100

Holders
Total Non-Users 24
TOTAL 100

49
Interpretation:
The term accessibility here refers to the easy availability of the facilities that
the company provides to its customers. The facilities may be regarding
information about the company and the various products offered by them, it
can be made available through internet and other media. According to the
study nearly 62% of the respondents think it is highly important, while 2.6%
of them feel that it is the least important and no respondent considers that it
is not important that one may consider before taking any life insurance
policy.
Chart 6.7.6

Accessibility
70
61.8
60

50 47

40
27.6
30
21
20
8
10 4 2 2.6 2 2
0
5 4 3 2 1

No. of RESPONDENTS PERCENTAGE

50
 Table – 6.7.7 Company Image

RATING No. of PERCENTA

RESPONDE GE
NTS
5 41 54
4 24 31.6
3 10 13.1
2 1 1.3
1 - -

Total Insurance 76 100

Holders
Total Non-Users 24
TOTAL 100

Interpretation:
Company image also plays a very important role in influencing the decision of
a prospective customer while taking the final decision. From the study it has
been found out that nearly 54% and 32% of the people feel that it is the highly
and most important thing, which has higher influence than any other criterion
that influences one's decision regarding taking of life insurance policy, while
for 1.3% of people it does not provide any significant importance in their
decision making.
Chart 6.7.7- Company Image

Company Image
60 54
50
41
40
31.6
30 24
20 13.1
10
10
1 1.3 0 0
0
5 4 3 2 1

No. of RESPONDENTS PERCENTAGE

51
 CHAPTER-7

RECOMMENDATIONS AND FINDINGS

52
7.1Findings-

The findings that can be drawn from the survey conducted by us can be summarized in
the following way:

a) Bank Deposits are the most preferred investment alternative

which is available to people followed by alternatives such as
Insurance, Real Estate, Gold and Silver, Mutual etc.

b) It was found that 61 respondents were willing to take a life

insurance under LIC and 33 respondents under Aditya Birla Sun Life
Insurance.

c) Among the 76 insurance holders 63 have policy of LIC whereas only

11 respondents have policy of Aditya Birla Sun Life Insurance.

d) The scheme mostly preferred by insurance holders was life protection

schemes like death benefits followed by money growth plans like wealth
creation and high return plans.

e) It was found that nearly 50% of the respondents usually save less
than 15% and kind of investment mostly preferred by the
respondents were both long and short term.

f) According to the survey safety is the most important criterion which is

expected among all the respondents towards their investment alternatives
followed by Return. Brand Name, Tax Benefits, Liquidity and Capital
Growth.

g) According to the study company image is to be the highly important

criteria which we consider before taking up a life insurance this is mainly
because people expect safety and security for their money which they
invest, followed by the factor Premium which we pay to the insurer and
then Bonus and Interest paid by the company, services etc.

h) People who belong to different age groups have different

perception regarding the most important criteria before taking the
decision on a life insurance policy.

53
7.2 Recommendations –

1. Consumer should be aware of company’s profile and returns associated with

insurance.

2. The Financial advisor should be right enough to serve the consumers.

The consumer should also be aware of the advisor or others who is looking
after their investments.

3. Company should publish their performance by comparing it with their

competitors.

4. Company should adopt strategies to explore that private insurance

companies are safe and secure than public insurance company like LIC.

5. Middle income people suggest that premium can be collected on monthly basis
instead of twice a year.

6. Company’s reputation is more important because bad impression on

image or brand name is considered while decision making among
consumers.

54
 CHAPTER -8

KEY LEARNIGS

55
 KEY LEARNIGS

8.1 specific

• Analyzed and learnt about functioning of Vibgyor Advisors Pvt.Ltd.

• Studied the impact of lockdown on this sector.
• Learnt the business process of vibgyor advisors Pvt.Ltd. to convert potential
client into channel partner.
• Studied the challenges faced by the company and channel partners.
• Learnt about various aspects of the company.

8.2 general

• Leadership quality
• Time management
• Teamwork
• Professional communication and management

56
 CHAPTER-9

CONCLUSION

57
 CONCLUSIONS-

Insurance is a tool by which fatalities of a small number are

compensated out of funds collected from plenteous. Insurance is a
safeguard against uncertain events that may occur in the future

Thus the study also comprise company image is the highly

important criteria that consumers consider before taking up a life
insurance. This is mainly because people expect safety and secure for
their money which they invest, followed by the factor Premium which
we pay to the insurer and then Bonus and Interest paid by the company,
services etc.

58
 CHAPTER-10

BIBLIOGRAPHY

59
 10. Bibliography

https://www.acko.com/articles/general-info/insurance-sector-india/

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

https://www.investopedia.com/ask/answers/051915/how-does-insurance-sector-
work.asp

https://www.investindia.gov.in/sector/bfsi-insurance

60
CHAPTER-11
ANNEXURE

61
12. ANNEXURE

A Study of Consumer’s Perception to Consumer’s Perception towards

Insurance and Investment Alternatives Preferred by People

Questionnaire

Dear Respondent,

This questionnaire is aimed at understanding your perception about life insurance. Your
response will be dealt with strict confidentiality and it will be used only for academic
purpose. Thank you for spending your valuable time to fill this questionnaire.

1. Name Gender: Male- female-

Contact No.

2. Age Group
Below 30 31-40 41- 51-60 Above 60
50

3. Educational Qualification

Under Post Graduate Diploma Other (Specify)

Graduate
………………………………

4. Occupation

Student Employed Self- Other (Specify)

Employed
…………………………

62
5. Annual Income

Below 1 lakh 1.01 – 3 Lakh 3.01- 5 Lakh Above 5

Lakh

6. What percentage of your salary do you usually save?

Less than 15% 15- 20% 20-25% Greater that

25%

7. What kind of Investment do you prefer?

Short Term Long Term Both

8.Rank these various investment alternatives according to your preferences.

Sr. Investment Alternative Rank

No.
1 Bonds & Debentures
2 Equity/ Shares
3 Mutual Funds
4 Public Provident Fund
(PPF)
5 Post Office
6 Insurance
7 Bank Deposits
8 Real Estate
9 Gold & Silver
10 Other
(Specif
y)

63
 ……………………………………………………
…………………………….

9.State your expectation on investment alternatives by ticking according to its

importance.

Expectations Highly Important Neutral Least Not

on Importa Importa Importa
Investment nt nt nt
Safety
Capital Growth
Liquidity
Return
Tax Benefit
Company Profile
& Brand Name

10. Do you have a Life Insurance Policy? (If ‘NO’ then please go to question no.
14)

YES NO

11. If ‘YES’ Which Insurance Company Policy, do you have?

BAJAJ ADITYA ICICI HDFC Others (Specify)

LIC ALLIANZ BIRLA SUN PRUDEN STAND
LIFE TIAL ARD ……………………………

12. What scheme of Insurance Policy have you taken?

64
 Life Educati Retireme Healt Mone Others (Specify)
Protectio on nt h y
n Plan Plan Plan Grow ………………………………
Plan th …………………….
Pla
n

13. What parameters do you investigate before you take up a

Life Insurance Policy? And tich the following parameters
according to your importance.

Parameters Highly Important Neutral Least Not

considered Importa Importa Importa
before nt nt nt
Insurance Policy
Premium
Charges
Policy Term
Rider Benefits
Bonus &
Interest
Services (Pre &
Post Sales)
Accessibility
Company
Image

14.are you aware about the joint venture between Aditya Birla and
Sun Life of Canada to form a private sector Insurance Company
called Aditya Birla Sun Life Insurance?

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 YES NO

15.Would you like to invest in Aditya Birla Sun Life Insurance?

YES NO

16.If ‘YES’ what will you invest in Aditya Birla Sun Life Insurance?

Bran Diversit Growt Transparenc Utmost Others (Specify)

d y h y Good
Imag Potenti Faith ……………………………
e al ………………………….

17.Among the following Life Insurance Companies in which company you will be
willing to take a Life Insurance?

Aditya Birla Sun Life Bajaj Allianz HDFC Life

SBI Life ICICI Prudential TATA
AIA
Reliance Max Life Max New
York
LIC Sahara ING Vysya
Bharti AXA Pramerica Life Exide Life
Life

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 CHAPTER 12

PROJECT PROGRESS REPORT

67
 PROJECT PROGRESS REPORT

Name Of the Student: Payal p. Raghorte Class &

Roll No.: Mms-B 91
Project Guide: Prof. Dr. Sameer Phanse

Project Title: Consumer’s Perception towards life insurance and investment

alternatives preferred by people

Vibgyor Advisors Pvt. Ltd. Services

Sr. No. Date Topic Next Student Project

Discussed Meeting Signature Guide
Date Signature
1. DISCUSSION
ABOUT THE
PROJECT
TOPIC

2. TOPIC
APPROVAL
3. SYNOPSIS
APPROVAL
4. PROJECT
RELATED
DISCUSSION
5. SUBMISSION
OF FIRST
DRAFT

68
 CHAPTER 13

PROJECT SYNOPSIS

69
 SUMMER INTERNSHIP PROJECT SYNOPSIS

Student Name: Payal Pundlik Raghorte Class &

Roll No.: MMS, B-91

Specialization: Finance

1. PROJECT TITLE:
“CONSUMER PERCEPTION TOWARDS LIFE INSURANCE AND
INVESTMENT ALTERNATIVES PREFERED BY PEOPLE”
2. OBJECTIVES OF THE PROJECT:
1.To know about the various Investment alternatives that is mostly preferred by
the people.

2.To find out the important criteria that people think about before investing in a
life insurance policy.

3. LIMITATIONS OF THE PROJECT:

a) The sample size chosen for the questionnaire was only 100 and
that may not represent the true picture of the consumer perception
about the Life Insurance sector.

b) The research got continued to the city of Nagpur. The respondent

belonged only to Nagpur and not others who were out of Nagpur.

c) Nearly 98% of the respondent belonged to the age group of 20-50

years and only 2% were above 50 years. So, the responses and the
opinions of the experienced and aged were not available. So, the
findings may not be correct when we think about the opinion of the
elderly people about the life insurance.

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4. METHODOLOGY TO BE USED:

• Sampling type: convenience sampling

• Sample size: 100 respondents
• Measurement Tool: Questionnaire

5. SOURCES OF DATA

• Primary Data: Questionnaire

• Secondary Data: Newspaper, websites

6. PRIMARY DATA COLLECTION INSTRUMENT:

• Google Form

Date: 18 June 2022

Project Guide: Prof. Dr. Sameer Phanse

Signature: __________________

71