Shri Vaishnav Institute of Management, Indore

“A study of consumer perception towards insurance

policy”

Submitted in partial fulfillment of the requirements for the award

of degree of

MASTER OF BUSINESS ADMINISTRATION (FULL TIME)

BATCH 2022-24

SUBMITTED TO: SUBMITTED BY:

Dr. Mamta Joshi Yogendra Shukla
Associate Professor MBA (FT)
Semester –II
DX1905194
 CERTIFICATE

This is to certify that Yogendra Shukla, of Shri Vaishnav Institute of Management

has successfully completed the Major Research Project entitled “A study of
consumer perception towards insurance policy” in For Partial Fulfilment of
Award of degree of Master of Business Administration (Full Time) from Devi
Ahilya Vishwavidyalaya. He has prepared this report under my guidance.

Dr. Mamta Joshi

Associate Professor
Signature of guide
 Declaration

I Yogendra Shukla Enrollment Number DX1905194 from MBA (FT) – III

Semester of Shri Vaishnav Institute of Management, Indore hereby declare that
the MRP entitled “A study of consumer perception towards insurance policy”
is an original work and the same has not been submitted to any other institute for
the award of any other degree.

Date: Signature of student

Yogendra Shukla
 Acknowledgement

I would like to express my sincere thanks to my guide Associate Prof. Dr. Mamta
Joshi for her continuous efforts during my research project. I have no words to
express my gratitude for all the suggestions and guidance which I received from
my guide without which it could not have been possible to complete this research
project.
I also thank Dr. Sandeep Malu (Program Coordinator MBA FT) and Dr.
Abhijeet Chatterjee (Head, Department of Management) for their guidance,
motivation and support. Last but not the least, I thank all the respected faculties of
department of management who helped me directly or indirectly to complete my
research project on time.

Yogendra Shukla
MBA FT Sem – III
DX1905194
 INDEX
S.NO. CONTENTS PAGE NO.

1. Chapter – 1

INTRODUCTION

2. Chapter -2

REVIEW OF LITERATURE

3. Chapter – 3

RESEARCH METHODOLOGY

4. Chapter – 4

DATA PRESENTATION, ANALYSIS & DATA

INTERPRETATION

5. Chapter – 5

SUMMARY & CONCLUSION

6. REFERENCES

7. APPENDIX
 Chapter - 1
INTRODUCTION
INTRODUCTION

Insurance is an umbrella to protect from risk. In today’s era everyone wants safety and
protection. Insurance is defined as sharing of the losses of unfortunate among those who are
exposed to the same level of risks, suffering and destruction of damage to their properties
which are likely to be caused by perils like accident, fire, theft and etc. Insurance is the type of
investment which gives the financial security against any uncertainties. Insurance provides
various benefits to individuals, families, organizations and the country as whole. The insurance
sector in India has become an open competitive market where there are many insurance
companies serving different types of insurance products and services. By time insurance has
gain much importance and now people prefer non-life insurance to protect against risk.
Understanding consumer perception towards insurance policies can help insurers tailor their
offerings, improve customer satisfaction, and make informed decisions about product
development and marketing strategies. Introduction

Consumer perception towards insurance policies is a critical factor influencing their purchasing
behavior and the overall performance of the insurance industry. This literature review explores
existing research to understand the various dimensions of consumer perception towards
insurance policies, including factors influencing perceptions, customer attitudes, and
preferences.

The insurance industry in our country is on the threshold of a new era of rapid expansion. A
more competitive environment is emerging with new participants entering the insurance
industry. Risk management has a wide application. It is relevant not only to insurance industry
but also to many other organizations in the fields of business and finance. To understand risk,
measure it and weigh its consequences are an integral part of management. Financial
institutions in the management of the funds placed with them have to reckon with market risk,
credit risk, counter party risk and liquidity risk. To mitigate the impact of various risks is the
essence of risk management. In this paper an attempt has been made to know the difficulties on
sales position of insurance industries and also a detailed study is made to identify the potential
segment of people to market insurance

Insurance is a federal subject in India and has a history dating back to 1818. Life and general
insurance in India is still a growing sector with huge potential for various global players with
the life insurance premiums accounting to 2.5% of the country's GDP while general insurance
premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number
of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened
up the insurance sector by allowing private companies to solicit insurance and also allowing
FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with
every other global insurance company wanting to have a lion's share. Currently, the largest life
insurance company in India is still owned by the government.

The insurance landscape in India is undergoing major changes. Closed to foreign competition
since nationalization in 1956 the life insurance industry had been protected from competitive
pressures. Now, with the re-opening of the sector, as the aftermath of liberalization and
privatization, several new players have entered the scene. The game is old but the rules are new
and still developing.

The insurance industry has indeed awakened to a deregulated environment in which several
private players have partnered with multinational insurance giants. Until recently it was
monopolized by the government players namely, Life Insurance Corporation and General
Insurance Company. With the big private corporate like the AMP Sanmar Assurance Co. Ltd,
ICICI Prudential Life Insurance Co. Ltd, Tata AIG insurance, Bajaj Allianz and HDFC
Standard Life Insurance in the fray now, competition has reached a whole new level.

The insurance industry in our country is on the threshold of a new era of rapid expansion. A
more competitive environment is emerging with new participants entering the insurance
industry. Risk management has a wide application. It is relevant not only to insurance industry
but also to many other organizations in the fields of business and finance. To understand risk,
measure it and weigh its consequences are an integral part of management. Financial
institutions in the management of the funds placed with them have to reckon with market risk,
credit risk, counter party risk and liquidity risk. To mitigate the impact of various risks is the
essence of risk management. Insurance policies are an essential aspect of modern life, offering
financial protection and security against unforeseen events. However, consumer perception
towards insurance policies can vary significantly, influenced by a range of factors such as
awareness, understanding, perceived benefits and risks, and trust in insurance providers. This
essay will explore the factors influencing consumer perception towards insurance policies,
consumer behavior towards insurance policies, and strategies for improving consumer
perception towards insurance policies.

Consumer perception towards insurance policies is shaped by several factors, including

awareness, understanding, perceived benefits and risks, and trust in insurance providers.
Firstly, consumer awareness and understanding of insurance policies play a crucial role in
shaping their perception. Lack of knowledge or understanding of insurance policies can lead to
misconceptions and negative attitudes towards insurance products. Secondly, perceived
benefits and risks of insurance policies can also influence consumer perception. Consumers
may perceive insurance policies as either beneficial or risky, depending on their experiences or
expectations. Finally, trust and credibility of insurance providers can significantly impact
consumer perception. Consumers are more likely to purchase insurance policies from providers
they trust and perceive as credible.

Consumer behavior towards insurance policies is influenced by various factors, including

purchase decisions, loyalty and retention, and responses to marketing and advertising
strategies. Firstly, factors influencing insurance purchase decisions include price, coverage, and
reputation of insurance providers. Consumers may also consider the ease of purchasing
insurance policies and the level of customer service and support offered by providers.
Secondly, consumer loyalty and retention in the insurance industry are crucial for insurers.
Consumers are more likely to remain loyal to insurance providers that offer tailored policies,
competitive prices, and excellent customer service. Finally, consumer responses to marketing
and advertising strategies can also influence their behavior towards insurance policies.
Effective marketing and advertising strategies can attract new customers and retain existing
ones.

To improve consumer perception towards insurance policies, insurers can implement various
strategies, such as improving transparency and communication, enhancing customer service
and support, and tailoring insurance policies to meet the needs and preferences of consumers.
Firstly, insurers can improve transparency and communication by providing clear and concise
information about insurance policies, including coverage, terms, and conditions. Secondly,
insurers can enhance customer service and support by offering multiple channels for
communication, such as phone, email, and chat support. Finally, insurers can tailor insurance
policies to meet the needs and preferences of consumers by offering personalized policies,
flexible payment options, and discounts for loyal customers.

Factors Influencing Consumer Perception:

Numerous studies have identified several factors influencing consumer perception towards
insurance policies. These factors include premium affordability, policy coverage, claims
settlement process, trustworthiness of insurance companies, customer service quality, brand
reputation, and perceived value for money. Understanding these factors is crucial for insurance
companies to design effective marketing strategies and improve customer satisfaction.

Customer Attitudes and Preferences:

Research indicates that consumer attitudes towards insurance policies are shaped by their
experiences, beliefs, and socio-economic factors. Positive experiences with claims settlement,
transparency in policy terms, and personalized services contribute to favorable attitudes,
whereas negative experiences such as claim denials or delays can lead to distrust and
dissatisfaction. Preferences vary among consumers based on factors such as age, income level,
family status, and risk perception. Younger consumers may prioritize affordability and
flexibility, while older consumers may prioritize comprehensive coverage and stability.

Influence of Marketing and Communication:

Effective marketing and communication strategies play a crucial role in shaping consumer
perception towards insurance policies. Studies highlight the importance of clear and transparent
communication of policy terms, benefits, and exclusions. Additionally, personalized marketing
approaches, digital channels, and social media engagement are becoming increasingly
important in reaching and influencing consumers. Building trust and credibility through
informative content, customer testimonials, and expert advice can positively impact consumer
perception.

Regulatory Environment and Consumer Protection:

The regulatory environment also influences consumer perception towards insurance policies.
Regulatory frameworks aimed at consumer protection, fair practices, and transparency enhance
trust and confidence in the insurance industry. Research suggests that consumers are more
likely to perceive insurance policies positively when they perceive regulatory oversight as
stringent and effective in safeguarding their interests.

Future Trends and Recommendations:

Emerging trends such as digitalization, artificial intelligence, and data analytics are reshaping
the insurance landscape and consumer expectations. Insurance companies need to adapt to
these changes by offering innovative products, personalized services, and seamless digital
experiences. Additionally, focusing on financial education initiatives and improving
transparency in policy terms can help enhance consumer understanding and trust.
CONCEPT OF STUDY

Indian insurance sector is growing recurrently year on year, but there is a difference in people’s
perception towards Term insurance across different age groups of people. This study analyses
the perception of different age groups and the factors that affect Term insurance policies. This
study helps in understanding the insurance requirements of different segments of life insurance
marketers. This research typically involves understanding how consumers view factors such as:

Insurance benefits: What policyholders think about the coverage provided, including its
adequacy and relevance to their needs.

Premiums: How consumers perceive the cost of insurance premiums and whether they
consider them reasonable or expensive.

Trustworthiness: Consumer trust in insurance providers and their confidence in the insurer’s
ability to fulfill claims and provide support.

Policy terms and conditions: How consumers understand and interpret the terms, conditions,
and exclusions of insurance policies.

Claims process: The perception of how easy or complicated it is to file and receive insurance
claims.

Customer service: Consumer opinions on the quality of customer service provided by the
insurance company.

OBJECTIVES OF THE STUDY

 To analysis the Demographic Profile of Customers.

 To identify the factors influencing Customer perception towards Insurance.
 Assessing Satisfaction.
 Informing Marketing Strategies.
 Chapter - 2

REVIEW OF LITERATURE
Gangil R, Vishnoi S. et al.., (2020) The competitive climate in the Indian insurance market
has changed dramatically over the last one decade. With the rise in risk and rapidly increasing
in the expenses now a day’s people prefer to take insurance to financial secured themselves
from the uncertainties. After applying the test, it can we conclude that Loyalty, Transparency,
Reliable, Proficiency and convenient services are the factors which affect the Customer
perception towards General Insurance. There is no difference in the perception of the customer
towards general insurance across gender, sector and occupation. The insurance companies
should consider the above factors before taking decision.

Dr. Ashfaque Ahmed (2013) in his study “perception of life insurance policies in rural India”
reveled that there is low level of awareness and understanding of life insurance products. There
are various factors that influence consumer thinking when they are planning to invest in
insurance scheme. Most of the customers show their interest in life insurance having higher
risk coverage and also for good return with safety. The roles played in perception of life
insurance policies in rural market by members of the family varies with knowledge parameters
as well as with the typed of products and sometimes with the company name also. While a
number of psychological variables are useful in obtaining into consumer‟s perception towards
buying life insurance policies in rural areas. The insurance company name also plays an
important role in purchasing.

Basha, Kumar and Rao (2012) studied a policyholders‟ perception towards LIC of India by
conducting a survey in urban and semi-urban centers. Chisquare test was used to test the
hypothesis. It was found that majority of them were influenced by agent‟s opinion of a policy,
significant number felt that premium is high, majority preferred money back policy and the
policyholder expected a return of 11- 15 percent from their investments.

Ghorpade and Deshmukh (2012) analyzed a customer perception, purchase behavior and
consumer awareness regarding the life insurance industry. Primary data was collected from 500
respondents in Pune city that was analyzed through rank correlation and chi-square test. It was
found that only 5.6% purchased the policy as a risk cover, while the remaining for tax purpose
and/or investment purpose. LIC was the preferred insurance company. Among the private
players ICICI Prudential was the most preferred company followed by HDFC Standard Life
and together they accounted for nearly half the share in premium collection. Customer
preference for a particular company was based on returns, premium, awareness campaign by
company, product mix and advertisement. They concluded by laying emphasis on quality,
accessibility and promptness of service.

Sharma (2011) developed the managerial competency framework for the middle level
managers of the general insurance sector in India. For the study survey was conducted among
the 98 middle level managers of both private and public general insurance companies. The
findings revealed communication skills, creativity, analytical skills, ability to delegate,
flexibility, initiative, interpersonal skills, managerial skills, ability to motivate, ability to plan,
job knowledge, team management, managerial skills and decision making were the14
important competencies. Managerial skills and job knowledge were the most important skills.

Sandhu & Bala (2011) analyzed customers’ perception towards life insurance. Data was
collected through questionnaire consist of 34 statements from 337customers of the three cities
of Punjab. The result concluded seven factors i.e. Proficiency, media & presentations, physical
& ethical excellence, service delivery process & purpose, security & dynamic operations,
credibility and functionality. They also investigated the relationship between each identified
factors and customer evaluation for service quality. The findings revealed that Proficiency,
Physical & ethical excellence and Functionality were the significant factors which make
impaction the overall service quality of Life Insurance.

K.V. Ramanathan (2011) in his article “A study on policy holder’s satisfaction with reference
to Life Insurance Corporation of India” identified a reliable and valid instrument for assessing
customer perceived service quality, awareness level, and satisfaction level of customers for life
insurance industry. Here, service quality needs to be measured using a six dimensional
hierarchal structure consisting of assurance, competence, personalized financial planning,
corporate image, tangibles and technology dimensions. This would help the service managers
to efficiently allocate resources, by focusing on important dimensions first.

Selvakumar & Priyan (2010) in their article “A comparative study of public and private life
insurance companies in India” found that insurance companies are increasingly taping the
semi-urban and rural areas to take across the message of protection of life through insurance
cover. Higher level of protection implies that customers are more conscious of the need for
risk mitigation, greater security, and about the future of their dependents. Insurance sector has
been evolving and improving its underwriting and risk management abilities.

Keerthi, R Vijayalakshmi (2009) in their article “A study on the Expectations and perceptions
of the services in private life insurance companies” the policy holders’ expectations are well
met in the case of certain factors like quality. But in the case of other variables, there exists a
significant gap which means that policy holders have experienced low levels of service as
against their expectations. If all the players in the life insurance industry focus on the effective
delivery of services, they can win the hearts of customers and anticipate their increased market
share.

Narayan. H. Jai (2009) in an article has made an emphasis on importance of customer in the
business of insurance. He explained in phase of growing market competition, there is an
intense need to go beyond mere efficiency in designing products. To understand the customer’s
needs and to convey what they have to offer would perhaps bring in higher efficiencies in
customer service. Insurance business revolves around the customer and fair treatment to
customers is need of an hour to win their loyalty and trust. In a service based organizations,
customer service is the most dominating feature that differentiate and gives good return to the
insurers. Proper dealing with customer complaints, effective customer grievances handling
mechanism and fast claim settlement procedure are some of the ways through which
satisfaction level of customers can be increased. Hence to serve the customers promptly and
effectively is the key success of a life insurance business.

Athma P. & Kumar R. (2007) in research paper titled “an explorative study of life insurance
purchase decision making: influence of product and non-product factors". The empirical based
study conducted on 200 sample size comprising of both rural and urban market. The various
product and non-product related factors have been identified and their impact on life insurance
purchase decision-making has been analyzed. Based on the survey analysis; urban market is
more influenced with product based factors like risk coverage, tax benefits, return etc. Whereas
rural population is influenced with non-product related factors such as: credibility of agent,
company’s reputation, trust, customer services. Company goodwill and money back guarantee
attracts many people for life insurance.

Helmut Gründl, Thomas Post, Roman Schulze, (2005) found that demographic risk, i.e., the
risk that life tables change in a nondeterministic way, is a serious threat to the financial stability
of an insurance company having underwritten life insurance and annuity business. The inverse
influence of changes in mortality laws on the market value of life insurance and annuity
liabilities creates natural hedging opportunities.

Amy Wong, (2004) empirically examined the role of emotional satisfaction in service
encounters. Specifically, this study seeks to: investigate the relationship between emotional
satisfaction and key concepts, such as service quality, customer loyalty, and relationship
quality, and clarify the role of emotional satisfaction in predicting customer loyalty and
relationship quality. In doing so, this study used the relationship between emotional
satisfaction, service quality, customer loyalty, and relationship quality as a context, as well as
data from a sample survey of 1,261 Australian retail customers concerning their evaluation of
their shopping experiences to address this issue. The results show that service quality is
positively associated with emotional satisfaction, which is positively associated with both
customer loyalty and relationship quality. Further investigations showed that customers'
feelings of enjoyment serve as the best predictor of customer loyalty, while feelings of
happiness serve as the best predictor of relationship quality. The findings imply the need for a
service firm to strategically leverage on the key antecedents of customer loyalty and
relationship quality in its pursuit of customer retention and longterm profitability.

Stephen Diacon (2004) presents the results of a detailed comparison of the perceptions by
individual consumers and expert financial advisers of the investment risk involved in various
UK personal financial services' products. Factor similarity tests show that there are significant
differences between expert and lay investors in the way financial risks are perceived. Financial
experts are likely to be less loss averse than lay investors, but are prone to affiliation bias
(trusting providers and salesmen more than lay investors do), believe that the products are less
complex, and are less cynical and distrustful about the protection provided by the regulators.
The traditional response to the finding that experts and non-experts have different perceptions
and understandings about risk is to institute risk communication programmes designed to re-
educate consumers. However, this approach is unlikely to be successful in an environment
where individual consumers distrust regulators and other experts
 Chapter – 3

RESEARCH METHODOLOGY
3.1 Research Approach

This study is an analytical and descriptive research. It is related to the analysis of customer
perception towards insurances. In order to conduct this study, customers of various insurance
companies are the respondents of this study. To meet the objective of the study the self-
designed questionnaire for the measure were developed to identify the factors that affect the
mind-set of individuals. This questionnaire included 15 closed-ended questions regarding the
factors on a 5-point Likert scale. The primary data is collected from insurance policy holders.

The study has been conducted using both primary as well as secondary data. The primary data
was obtained from the analysis done through direct questionnaire provided to the respondents.
Information regarding the project was obtained from housewives, retired persons, unemployed
youths, teachers, distributors, advisors and unit-managers. The information was obtained
through the questionnaire and discussions held. The project undertaken was Descriptive in
nature as it was trying to find out the perception and satisfaction level. Questionnaires were
distributed among 100 respondents . The responses received, formed the basis of primary data
required for the study. Data collected was completed, classified and tabulated for analysis.

The following methodology is adopted for the study. Area of the study The study is restricted to
Indore city.

Sample size The technique used for the sampling is random. 100 questionnaires were
distributed to the people of Indore city

3.2 Sampling Method:

The method is used for collecting data is Selective sampling because I have only targeted the
customers who have purchased Term life insurance. 3.3Data collection techniques:

The data collection was done through the means of questionnaire and the data whatever was
collected is primary data.

3.4 Mode of collecting the data

The mode that is being used to collect that of the use of Questionnaire and this questionnaire is
being sent to the customers through the means of link where they would give their responses in
the link and then submit it once they have recorded all the responses.

3.5 Tools used for data analysis

1. The Cronbach alpha reliability method was applied on data collected. To check the reliability
of used measures in the current study so that if the similar study would be conducted in the
near future, so the results of that study would be reliable or repeatable.

2. Exploratory factor analysis was applied to customer perception to identify underlying factors
of measured used in the current study.

Demographic:

 Gender
 Age
 Occupation
 Monthly income
 Chapter – 4
DATA PRESENTATION, ANALYSIS &
DATA INTERPRETATION
Gender

Responses Frequency Percentage

Female 30 33.7%
Male 59 66.3%
Grand Total 89 100%

Interpretation: The distribution of gender among respondents indicates a slight skew towards
male participants, comprising 66.3% of the total respondents, while female participants
constitute 33.7%. This suggests that the survey managed to capture a relatively balanced
representation of both genders, albeit with a higher participation from males. Understanding
the differences in perceptions and attitudes towards insurance policies between genders could
provide valuable insights for insurance companies in their marketing and product development
strategies.
Age

Responses Frequency Percentage

20 - 30 57 63.3%
31 - 40 19 21.1%
41 - 50 12 13.3%
Above 50 2 2.2%
Grand Total 90 100%

Interpretation: The age distribution of respondents reveals that the majority fall within the 20-
30 age bracket, constituting 63.3% of the total respondents. This indicates a significant
representation of younger individuals in the survey sample. The age groups of 31-40 and 41-50
make up 21.1% and 13.3% of respondents, respectively, while individuals above the age of 50
represent a smaller proportion at 2.2%.

The prominence of younger respondents suggests that they may play a crucial role in shaping
the future of the insurance market. Understanding their perceptions towards insurance policies
can provide insights into their preferences, needs, and expectations from insurance providers.
Additionally, the relatively smaller representation of older individuals highlights the
importance of targeting and understanding the preferences of this demographic segment, which
may have different concerns and priorities regarding insurance policies.
Marital Status

Responses Frequency Percentage

Married 40 44.4%
Unmarried 50 55.6%
Grand Total 90 100%

Interpretation: The distribution of marital status among respondents indicates that a slightly
higher proportion, comprising 55.6% of the total respondents, are unmarried, while 44.4% are
married. This suggests a fairly balanced representation of both marital statuses within the
survey sample.

Understanding the differences in perceptions and attitudes towards insurance policies between
married and unmarried individuals could provide valuable insights for insurance companies in
tailoring their products and services to better suit the needs of each demographic group. For
instance, married individuals may prioritize family coverage and long-term financial planning,
while unmarried individuals may focus more on personal coverage and short-term financial
goals.
Educational Qualification

Responses Frequency Percentage

Post Graduate 33 36.7%

Primary 18 20%
Secondary 19 21.1%
Under Graduate 20 22.2%
Grand Total 90 100%

Interpretation: The distribution of educational qualifications among respondents reveals a

diverse range of backgrounds within the survey sample. Among the respondents, the highest
percentage, comprising 36.7%, hold a post-graduate degree. Following this, 22.2% are
undergraduates, 21.1% have completed secondary education, and 20% have a primary level of
education.

This diverse educational background suggests that perceptions towards insurance policies may
be influenced by varying levels of education and awareness. For instance, individuals with
higher levels of education may possess a better understanding of complex insurance products
and may prioritize factors such as coverage options and policy terms. On the other hand,
individuals with lower levels of education may focus more on simplicity and affordability of
insurance plans.
Occupation

Responses Frequency Percentage

Business 22 24.4%
Retired 1 1.1%
Salaried 25 27.8%
Self Employed 42 46.7%
Grand Total 90 100%

Interpretation: The distribution of occupations among respondents illustrates a diverse range

of employment statuses within the survey sample. Among the respondents, the highest
percentage, comprising 46.7%, are self-employed. Following this, 27.8% are salaried
employees, 24.4% are engaged in business activities, and only 1.1% are retired.

This diversity in occupation suggests that consumer perceptions towards insurance policies
may be influenced by factors such as income stability, risk exposure, and employer-provided
benefits. For instance, self-employed individuals may prioritize insurance coverage for
business-related risks and may seek flexible insurance plans that accommodate fluctuations in
income. Salaried employees, on the other hand, may value employer-provided insurance
benefits and seek additional coverage to complement their existing plans.
Annual Income

Responses Frequency Percentage

1 to 3 lakh 42 46.7%
3 to 5 lakh 27 30%
5 to 8 lakh 16 17.8%
above 8 lakh 5 5.6%
Grand Total 90 100%

Interpretation: The distribution of annual income among respondents indicates varying levels
of income within the survey sample. Among the respondents, the highest percentage,
comprising 46.7%, reported an annual income ranging from 1 to 3 lakh. Following this, 30%
reported an annual income between 3 to 5 lakh, 17.8% reported an income between 5 to 8 lakh,
and only 5.6% reported an income above 8 lakh.

Understanding the distribution of income is crucial for insurers as it provides insights into the
purchasing power and financial priorities of different income brackets. Individuals with higher
incomes may prioritize comprehensive insurance coverage and may be willing to invest in
additional benefits and higher premiums. Conversely, individuals with lower incomes may
prioritize affordability and may seek basic insurance coverage that meets their essential needs.
How many insurance policy you have?

Responses Frequency Percentage

2 to 4 19 21.6%
Above 4 9 10.2%
Up to 2 60 68.2%
Grand Total 88 100%

Interpretation: The distribution of the number of insurance policies owned by respondents

indicates that the majority, comprising 68.2%, have up to two insurance policies. Among the
respondents, 21.6% reported owning between 2 to 4 insurance policies, while 10.2% reported
having more than four insurance policies.

This distribution suggests that a significant portion of respondents prefer to maintain a

relatively small number of insurance policies. This preference may be influenced by factors
such as simplicity, affordability, and perceived necessity of coverage. Individuals with fewer
policies may prioritize consolidating their insurance needs into a smaller number of
comprehensive policies, while others may prefer to have multiple specialized policies to
address specific risks or needs.
Which company you prefer?

Responses Frequency Percentage

Private 37 41.6%

Public 52 58.4%

Grand Total 89 100%

Interpretation: The preference for insurance companies among respondents indicates a

relatively balanced distribution between private and public sector insurers. Among the
respondents, 58.4% expressed a preference for public sector insurance companies, while 41.6%
indicated a preference for private sector insurers.

This preference may be influenced by factors such as brand reputation, perceived

trustworthiness, product offerings, and customer service quality associated with each type of
insurer. Public sector insurers may be perceived as more stable and reliable due to their
government backing, while private sector insurers may be perceived as more innovative and
customer-centric.
What is your current preference for investment?

Responses Frequency Percentage

Bank deposit 23 25.6%
Gold 10 11.1%
Life insurance 30 33.3%
Post office saving 11 12.2%
Share market 16 17.8%
Grand Total 90 100%

Interpretation: The survey responses indicate a variety of preferences for investment among
the respondents. Among the options provided, life insurance emerges as the most preferred
investment choice, with 33.3% of respondents expressing a preference for it. This suggests that
a significant portion of respondents view life insurance not only as a risk management tool but
also as an investment vehicle that offers long-term benefits and financial security.

Other popular investment choices include bank deposits, selected by 25.6% of respondents, and
the share market, chosen by 17.8% of respondents. These options represent traditional
investment avenues that offer varying levels of risk and return potential.

Additionally, a notable percentage of respondents, 12.2%, prefer post office savings, which
often appeal to individuals seeking secure and government-backed investment options. Gold,
chosen by 11.1% of respondents, represents a tangible asset that is often viewed as a hedge
against economic uncertainty and inflation.
What scheme of insurance policy you want to take?

Responses Frequency Percentage

Endowment plan 20 22.2%
Money back policy 20 22.2%
Retirement plan 7 7.8%
Term insurance plan 43 47.8%
Grand Total 90 100%

Interpretation: The survey responses indicate varying preferences for different types of
insurance policies among the respondents. Among the options provided, term insurance plans
emerge as the most preferred choice, with 47.8% of respondents expressing a preference for
them. Term insurance plans are typically chosen for their simplicity and affordability, providing
coverage for a specified period without any savings or investment component.

Endowment plans and money-back policies both received an equal share of preference, each
selected by 22.2% of respondents. Endowment plans offer both insurance coverage and a
savings component, providing a lump sum payout at maturity or in the event of the
policyholder's death. Money-back policies offer periodic payouts during the policy term, along
with insurance coverage.

Retirement plans received the least preference, chosen by only 7.8% of respondents. This
suggests that while retirement planning is important, it may not be the primary focus for all
respondents at the time of the survey.
What factor do you consider while selecting a life insurance policy?

Responses Frequency Percentage

Company reputation 40 44.9%
Coverage of risk 28 31.5%
Tax benefit 21 23.6%
Grand Total 89 100%

Interpretation: The survey responses indicate several factors that respondents consider while
selecting a life insurance policy. Among the options provided, company reputation emerges as
the most significant factor, with 44.9% of respondents indicating it as their primary
consideration. This suggests that a considerable portion of respondents prioritize the reputation
and credibility of the insurance company when choosing a life insurance policy, likely seeking
assurance of reliability, financial stability, and quality of service.

Coverage of risk is also a crucial factor for respondents, with 31.5% indicating it as an
important consideration. This highlights the importance of comprehensive coverage that
adequately addresses the policyholder's financial risks and obligations, providing protection
and peace of mind to the insured and their beneficiaries.

Tax benefits are cited by 23.6% of respondents as a factor influencing their choice of a life
insurance policy. This reflects the awareness and importance of tax-saving opportunities
offered by life insurance policies, such as deductions on premiums paid and tax-free payouts on
maturity or death benefits.
What is your level of satisfaction towards investing in insurance policy?

Responses Frequency Percentage

Dissatisfied 7 7.8%
Highly dissatisfied 0 0%
Highly satisfied 27 30%
Neutral 28 31.1%
Satisfied 28 31.10%
Grand Total 90 100%

Interpretation: The survey responses indicate varying levels of satisfaction among

respondents towards investing in insurance policies. A notable portion of respondents,
comprising 30%, expressed a high level of satisfaction with their investment in insurance
policies. This suggests that a significant proportion of respondents find value and fulfillment in
their insurance investments, likely due to factors such as peace of mind, financial security, and
perceived long-term benefits.

Additionally, an equal percentage of respondents, totaling 31.1%, indicated feeling satisfied

and neutral towards their investment in insurance policies. This suggests a mixed sentiment
among respondents, with some feeling content with their investment decisions while others
remaining indifferent or undecided about their level of satisfaction.

A smaller percentage of respondents, 7.8%, expressed dissatisfaction with their investment in

insurance policies. This suggests that while the majority of respondents are either satisfied or
neutral, there are still some individuals who may have concerns or grievances regarding their
insurance investments.
Do you agree insurance is important for managing risk or pre protecting your assets?

Responses Frequency Percentage

No 22 24.4%
Yes 68 75.6%
Grand Total 90 100%

Interpretation: The majority of respondents, comprising 75.6%, agree that insurance is

important for managing risk or protecting assets, while 24.4% disagree. This indicates a strong
recognition among the majority of respondents regarding the significance of insurance in
mitigating financial risks and safeguarding assets against unexpected events.

The acknowledgment of the importance of insurance for risk management and asset protection
underscores the fundamental role that insurance plays in providing financial security and
stability to individuals, families, and businesses. Insurance policies serve as a crucial safety
net, offering coverage against various risks such as property damage, health emergencies,
liability claims, and loss of income.
How insurance offers in terms of peace of mind?

Responses Frequency Percentage

Advanced 21 23.3%
Limited 12 13.3%
Moderate 40 44.4%
Significant 17 18.9%
Grand Total 90 100%

Interpretation: The survey responses reveal varying perceptions among respondents regarding
how insurance offerings contribute to peace of mind. The majority of respondents, comprising
44.4%, perceive insurance as providing a moderate level of peace of mind. This suggests that a
significant portion of respondents view insurance as offering a reasonable degree of comfort
and security, albeit with some reservations or limitations.

Additionally, 18.9% of respondents perceive insurance as providing a significant level of peace

of mind, indicating that they attribute a substantial sense of security and assurance to their
insurance coverage.

On the other hand, 23.3% of respondents perceive insurance offerings as advanced in terms of
providing peace of mind. This suggests that they perceive insurance as offering comprehensive
coverage and a high level of protection against various risks and uncertainties. A smaller
percentage of respondents, comprising 13.3%, perceive insurance offerings as providing
limited peace of mind. This indicates that they may have concerns or doubts about the
adequacy or effectiveness of their insurance coverage in providing the desired level of security
and peace of mind.
Which of the following policies do you have? (Select all that apply)

Responses Count Percentage

Children policy 32 36%
Money back policy 45 50.6%
Pension plan policy 18 20.2%
Mediclaim policy 22 24.7%
Grand Total 117 100%

Interpretation: The data presents the prevalence of various insurance policies among
respondents, offering a glimpse into their insurance coverage preferences. Among the surveyed
individuals, a substantial portion reported owning different types of insurance policies. Money
back policies emerge as the most commonly held, with approximately half of the respondents
(50.6%) indicating ownership. Following closely, mediclaim policies are held by around a
quarter of the respondents (24.7%), underscoring the importance placed on healthcare
coverage. Children policies are also prevalent, with 36% of respondents having them,
indicating a focus on securing the future of their offspring. In contrast, pension plan policies
show comparatively lower ownership, with 20.2% of respondents reporting having such
policies. This distribution reflects a varied landscape of risk management and financial
planning strategies among respondents, potentially influenced by factors such as age, income
level, and personal circumstances. Such insights can be valuable for insurance providers in
tailoring their offerings to better meet the diverse needs and preferences of consumers.
Does your insurance provider has complex formalities or set procedures?

Responses Frequency Percentage

No 31 34.4%
Yes 59 65.6%
Grand Total 90 100%

Interpretation: The survey responses indicate that a majority of respondents, comprising

65.6%, perceive their insurance provider to have complex formalities or set procedures. This
suggests that a significant portion of respondents find the processes and procedures associated
with their insurance provider to be intricate or difficult to navigate.

On the other hand, 34.4% of respondents indicated that their insurance provider does not have
complex formalities or set procedures. This indicates that a minority of respondents perceive
their insurance provider to have streamlined and straightforward processes, which may
contribute to a more positive customer experience.
Are you regularly paying the premium?

Responses Frequency Percentage

No 23 25.6%
Yes 67 74.4%
Grand Total 90 100%

Interpretation: The survey responses indicate that a majority of respondents, comprising

74.4%, regularly pay the premium for their insurance policies. This suggests that a significant
portion of respondents fulfill their financial obligations by making timely premium payments
to maintain their insurance coverage.

However, 25.6% of respondents indicated that they do not regularly pay the premium for their
insurance policies. This minority of respondents may have various reasons for not being able to
maintain regular premium payments, such as financial constraints, changing priorities, or
dissatisfaction with the insurance policy.
How would you like to pay the premium?

Responses Frequency Percentage

Annually 15 16.7%
Monthly 30 33.3%
Quarterly 29 32.2%
Semi annually 16 17.8%
Grand Total 90 100%

Interpretation: The survey responses indicate varying preferences among respondents

regarding the frequency of premium payments for their insurance policies. Among the options
provided, monthly payments emerge as the most preferred choice, with 33.3% of respondents
expressing a preference for this payment frequency. Monthly payments offer convenience and
flexibility, allowing policyholders to spread out their financial obligations over smaller,
manageable instalments.

Quarterly payments are also popular among respondents, chosen by 32.2%. Quarterly
payments strike a balance between the convenience of monthly payments and the less frequent
commitment of annual payments.

Annual payments, although less frequent, were preferred by 16.7% of respondents, likely due
to the convenience of making a single payment for the entire year, potentially resulting in cost
savings with some insurers offering discounts for annual payments.

Semi-annual payments, chosen by 17.8% of respondents, offer a compromise between the

frequency of quarterly and annual payments, providing policyholders with a mid-year option to
manage their premium payments.
How much return you have expected while investing in insurance?

Responses Frequency Percentage

11 to 14 lakh 11 12.2%
15 to 20 lakh 12 13.3%
2 to 6 lakh 37 41.4%
6 to 10 lakh 25 27.8%
Above 20 lakh 5 5.6%
Grand Total 90 100%

Interpretation: The survey responses indicate varying expectations among respondents

regarding the returns they anticipate while investing in insurance. Among the options provided,
the most common expectation falls within the range of 2 to 6 lakh, with 41.4% of respondents
expressing this expectation. This suggests that a significant portion of respondents anticipate
moderate returns from their investment in insurance, likely considering factors such as
premium payments, policy terms, and potential payouts.

Additionally, 27.8% of respondents expect returns between 6 to 10 lakh, indicating a slightly

higher expectation of returns compared to the previous range. This suggests that a substantial
portion of respondents anticipate relatively higher returns from their investment in insurance,
potentially influenced by factors such as the coverage amount, investment component, and
duration of the policy.

A smaller percentage of respondents expect returns in the ranges of 11 to 14 lakh (12.2%), 15

to 20 lakh (13.3%), and above 20 lakh (5.6%). These responses indicate varying degrees of
optimism regarding the potential returns from insurance investments, with some respondents
expecting more substantial returns compared to others.
What is the average term of the policies you have?

Responses Frequency Percentage

11 to 15 years 13 14.6%
6 to 10 years 29 32.6%
Above 15 years 6 6.7%
Up to 5 years 41 46.1%
Grand Total 89 100%

Interpretation: The data provides insights into the average term duration of the insurance
policies held by respondents. Among the surveyed individuals, the majority of policies have
relatively short terms, with 46.1% of respondents indicating policies lasting up to 5 years.
Following this, 32.6% of respondents reported policies with terms ranging from 6 to 10 years,
indicating a significant portion of medium-term policies. Additionally, 14.6% of respondents
stated they have policies with terms spanning 11 to 15 years, reflecting a smaller but notable
proportion of policies with longer durations. Interestingly, only 6.7% of respondents reported
policies with terms exceeding 15 years, indicating a relatively smaller presence of long-term
policies. This distribution suggests that the majority of respondents opt for insurance policies
with shorter durations, possibly influenced by factors such as financial planning goals, risk
perception, and life stage. Understanding the distribution of policy terms can assist insurance
providers in tailoring their product offerings to better align with the varying needs and
preferences of consumers across different duration preferences.
Has any of your policies ever lapsed due to non-payment of premiums?

Responses Frequency Percentage

No 39 43.8%
Yes 50 56.2%
Grand Total 89 100%

Interpretation: The survey responses indicate that a majority of respondents, comprising

56.2%, have experienced lapses in their insurance policies due to non-payment of premiums.
This suggests that a significant portion of respondents have encountered difficulties in
maintaining regular premium payments, resulting in the lapse of their insurance coverage.

On the other hand, 43.8% of respondents indicated that none of their policies have ever lapsed
due to non-payment of premiums. This indicates that a minority of respondents have been
successful in consistently meeting their premium obligations and avoiding lapses in their
insurance coverage.
Are you aware of any insurance bonuses of your policies?

Responses Frequency Percentage

No 30 33.3%
Yes 60 66.7%
Grand Total 90 100%

Interpretation: The survey responses indicate that a majority of respondents, comprising

66.7%, are aware of the insurance bonuses associated with their policies. This suggests that a
significant portion of respondents are informed about the bonuses, which may include various
types such as annual bonuses, terminal bonuses, or loyalty bonuses, offered by their insurance
policies.

On the other hand, 33.3% of respondents indicated that they are not aware of any insurance
bonuses associated with their policies. This indicates that a minority of respondents may lack
information or awareness about the bonuses included in their insurance policies.
Have you ever surrendered any insurance policy?

Responses Frequency Percentage

No 30 33.7%
Yes 59 66.3%
Grand Total 86 100%

Interpretation: The survey responses indicate that a majority of respondents, comprising

66.3%, have surrendered at least one insurance policy at some point. This suggests that a
significant portion of respondents have chosen to terminate their insurance policies before their
maturity or expiry date

On the other hand, 33.7% of respondents indicated that they have never surrendered any
insurance policy. This indicates that a minority of respondents have maintained their insurance
policies without terminating them prematurely.
 Chapter – 5

SUMMARY & CONCLUSION

CONCLUSION

The findings from the survey offer valuable insights into consumer perceptions and behaviors
towards insurance policies. Analyzing demographics such as gender, age, marital status,
educational qualification, occupation, and annual income reveals the diverse factors
influencing individuals' attitudes towards insurance. These insights are crucial for tailoring
insurance products to meet the varied needs of consumers effectively.

Moreover, the survey delves into various aspects of insurance preferences and behaviors,
including the types and number of policies owned, preferences for insurance providers,
investment preferences, and satisfaction levels. These findings provide essential guidance for
insurance companies to design competitive products, improve customer experience, and
address customer needs effectively.

Furthermore, factors such as simplicity, affordability, coverage options, company reputation,

and customer service emerge as critical influencers in consumer decision-making regarding
insurance. Insurance providers can leverage these insights to enhance their offerings,
streamline processes, and build trust with customers.

Additionally, the survey highlights varying levels of awareness, satisfaction, and engagement
among respondents concerning insurance-related matters. This underscores the importance of
continuous education and communication efforts by insurance companies to enhance customer
awareness, satisfaction, and loyalty.

In conclusion, the survey findings offer valuable insights into consumer perceptions,
preferences, and behaviors towards insurance policies. By leveraging these insights, insurance
companies can strengthen their competitive position, drive customer-centric innovation, and
enhance customer satisfaction and loyalty in the dynamic insurance market.
 REFERENCES

o THE INSURANCE TIMES monthly journal on insurance policy in India.

o .Consumer Behaviour Towards Life Insurance Services by “Y.D Nayak and jagannath panda.”
o .Insurance Regulatory and Development Authority of India (IRDAI)- journals.
o Jnaneshwar Pai Maroor and Sunitha (2013), “A Study of the Attitude of the Rural population
towards life Insurance policy”, Poseidon; Journal of Commerce, Management and Social Science,
Vol.2,Issue 2
o Jawarharlal and Seetha Pathi, (2011) “Life Insurance”, Vol-I, Insurance series, ICFAUI
University.
o Keerth P, Vijayalakshmi R.(2009), “A Study on the Expectations and Perceptions of the
Services in Private Life Insurance Companies”, SMART Journals.vol.5:291-309
o Ramanathan (2011) A study on policy holder’s satisfaction with reference to Life Insurance
Corporation of India” Indian Journal of Marketing
o Selvakumar & Priyan (2012), “A Comparative Study of Public and Private Life Insurance
Companies in India” The Indian Journal of Commerce, Vol. 65, No.1.
o Vijaya Kumar, (2004) “Globalization of Indian Insurance Sector Issues and Challenges”,
Journal of Management Accountant, p.195-198.
o B. Reshmi, N. Sreekumaran Nair, KM. Sabu, B. Unnikrishnan, Awareness of Health Insurance
in a South Indian Population-A Community Based Study, Perspectives and Issues 30 (3) (2007)
177-188.
o V.S. Ghorpade, U.M. Deshmukh, A study on consumer preference for life insurance companies
in Pune city, Ethos, 5(2) (2012) 15-21.
o V. Jain, B. Saini, “Indian Consumer Dameanor for Life Insurance”, International Journal of
Research in Finance & Marketing, 2(11) (2021) 29-35.
o S. Singh, N. Sirohi, K. Chaudhary, “A Study of Customer Perception towards Service Quality
of Life Insurance Companies in Delhi NCR Region”, Global Journal Management and Business
Research, 14(7) (2014) 19-32.
o Venkata Ramana Rao, Life Insurance awareness in Rural India: Micro Insurance
lessons to learn and Teach, Bimaquest, 7(1) (2008)
o Fried, B. Robert and Lewis, Staphanie E., (2004) Choosing a Long Term Insurance Policy:
Understanding and Improving the Process.
o Grundel , Helmut ; Post, Thomas; Schulze Roman; (2005); Managing Demographic
Risk in Life Insurance Company
 APPENDIX

QUESTIONNAIRE

1.Gender

 Male
 Female

2.Age

 20-30
 31-40
 41-50
 Above 50

3.Marital Status

 Married
 Unmarried

4.Educational Qualification

 Primary
 Secondary
 Under Graduate
 Post Graduate

5.Occupation

 Self Employed
 Salaried
 Business
 Retired

6.Annual Income

 1 to 3 lakh
 3 to 5 lakh
 5 to 8 lakh
 Above 8 lakh
7.How many insurance policy you have?

 Up to 2
 2 to 4
 Above 4

8.Which company you prefer?

 Public
 private

9.What is your current preference for investment?

 Bank deposits
 Life insurance
 Post office saving
 Share market

10.What scheme of insurance policy you want to take?

 Term insurance plan

 Endowment plan
 Money back plan
 Retirement plan

11.What factor do you consider while selecting a life insurance policy?

 Company reputation
 Tax benefit
 Coverage risk

12.What is your level of satisfaction towards investing in insurance policy?

 Highly satisfied
 Satisified
 Neutral
 Dissatisfied
 Highly dissatisfied
13.Do you agree insurance is important for managing risk or pre protecting your assets?

 Yes
 No

14.How insurance offers in terms of peace of mind?

 Advanced
 Moderate
 Significant
 Limited

15.Which of the following policies do you have? (Select all that apply)

 Children policy
 Money back policy
 Pension plan policy
 Mediclaim policy

16.Does your insurance provider has complex formalities or set procedures?

 Yes
 no

17.Are you regularly paying the premium?

 Yes
 No

18.How would you like to pay the premium?

 Monthly
 Quarterly
 Semi annually
 Annually

19.How much return you have expected while investing in insurance?

 2 to 6 lakh
 6 to 10 lakh
 11 to 14 lakh
  15 to 20 lakh
 Above 20 lakh

20.What is the average term of the policies you have?

 Up to 5 years
 6 to 10 years
 11 to 15 years
 Above 15 years

21.Has any of your policies ever lapsed due to non-payment of premiums?

 Yes
 No

22.Are you aware of any insurance bonuses of your policies?

 Yes
 No

23.Have you ever surrendered any insurance policy?

 Yes
 No