CHAPTER 1

INTRODUCTION

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 INTRODUCTION
Man is a social animal. He contributes to society's wellbeing and gets livelihood and protection

from the society in which he lives. Man always seeks protection from risks which in fact compel

him to live in groups. He remained exposed to various types of risks like death, accidents, loss of

health, wealth and property from wild animals, reptiles, floods, fire, earthquakes and other natural

calamities.
Insurance in some form or other has been on answer to his problem of security.
Insurance is a process in which losses of a few are shared by many who are equally exposed to

same risk. One or a few of the whole lot unfortunately suffer the loss and thereby all others share

the loss. Therefore, an individuals share of contribution towards the cost of meeting such loss is

small. As such insurance is a co-operative venture.

MEANING OF INSURANCE

Insurance is such a method which provides security and protection against financial loss upto

same limits. It is a means of shifting the risks to insure in consideration of a nominal cost called

premium.
In other words, we can say that insurance is a contract where one party takes the

responsibilities of risks of the party in exchange of some fixed amount. As per this contract the first

party (insurer) which is taking the responsibility of risk of another party (insured) promises to pay a

fixed amount of money to second party either at the end of fixed period or at the happening of same

events.

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BASIC TERMINOLOGY OF INSURANCE

1. Insurer :-One who does the Insurance i.e. who takes the responsibility of risk in future.
2. Insured :One whose insurance is done i.e., whose responsibility of risk is taken by insurer.
3. Policy :-The printed legal document stating the term of insurance contract that is issued to

the policy holder by the company.

4. Premium:-The sum paid by a policyholder to keep an insurance policy in force. It is

amount paid to secure an insurance policy.

5. Sum Assured: - Sum assured is the amount that an issuer agrees to pay on the occurrence of

an events.
6. Surrender value: - The surrender or cash value is the amount payable to the policyholder

should the policyholder decide to discontinue the policy. However, the insurance protection

provided under the policy will also cease. Not all insurance policies have surrender or cash

values.
7. Riders: - Additional or supplementary benefits that is bought together with a main life

policy on the same life and is combined for the purposes of collecting one premium.
8. Mortality: - The probability of life or group of lives.
9. Maturity date: - The date on which an endowment insurance policys face amount will be

paid to the policy- owner if the life insured is still living.

10. Lapse: - Termination of a life insurance contract because of non- payment of premiums. If

there are non forfeiture values, the policy lapses but may remain effective reduced paid-up

insurance.
11. Endowment:- A type of insurance policy which provides for the face amount stated in the

contract to be payable in a fixed date or on the life insureds earlier death.

12. Claim:- Written request by an insured for the insurance company to cover an incurred loss,

usually submitted on the companys standard form.

INSURANCE INDUSTRY IN INDIA

India is marketing ahead to more prosperous future. The economy is on a high growth path,

domestic saving is growing, exports have risen and inflation has stabilized. Infrastructure rector,

which even today is woefully inadequate to meet the expected increased industrial activities, has

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been accorded top priority by the government. All this should reflect in a growth rate of 7% to 8%

for the next 3-4 years. With this scenario of high economic growth further reforms in the financial

rector are in the common minimum program of the government.

The insurance industry, which still remains a state monopoly, is therefore engaging serious attention

of the Govt. De-regulation of insurance sector has already been recommended and has generally

been welcomed by a dominant body of industry and populace though the employees unions and

same others remain opposed to the idea of introducing competition in the insurance sector.
India is regarded as an under-insured country with insurance penetration at a very low level of 0.6%

of GDP. Insurance, as a rule, has always been given very low priority by corporate India, It is

compulsory, and then only by big industrial houses. Without exception it is always inadequate to

meet the meets of the corporate sector.

OBJECTIVE/ PURPOSE/ NEED OF INSURANCE

1. It provides Security :
The first objective of insurance is to provide the security to the persons against the risks of

uncertain events. Under this the insurance company guarantees the insured person to compensate

the event of loss in consideration of premium paid by insured. Thus the insurance provides the

feeling of security against the evil of uncertain events i.e. risk.

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2. It provides capital:
It provides capital, a score source of production to the industry in various forms. The amount

received on account of premium by various insurance companies is made available for the

industrial development of the country in various financing forms, such as, by providing long term

loans to companies. We can say that insurance makes the company.

3. It increases efficiency:
Insurance is increase the efficiency in business by reducing the risks or fear of losses. Mgt is

relieved from the various risks involved in uncertainties and becomes able to give due attention to

the other functions which effect the total efficiency of the organization, such as, labor force

material mgt. marketing etc. These insured persons can work better for profit maximization.
4. It distributes Risk:
The objective of insurance is based on the low of co-operation. Insurance has describe insurance as

a plan by which large number of people associate themselves and transfer to the shoulders of all

risks that attach to individual. So the distribution the losses of any uncertain events among a large

number of persons covered under the insurance.

5. It Provides Certainty
The main purpose of insurance is to reduce the risk of events. Actually insurance means to

indemnify or compensate the losses caused by the uncertain events. The insured converts his

uncertainties into certainties by paying premium to the insurer.

6. It provides fund to Invest
Insurance companies collects the funds by way of premium and employ or invest it in the country

life insurance corporation along with other insurance companies provides the fund to various

industrial and business concerns.

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7. Encourages Savings
Insurance is considered to be a better source of encouraging the saving. The insurer has to pay a

fixed premium regularly and compulsorily. As such forced saving cards the unnecessary expenses

of the individuals.
8. Expansion of Foreign Trade
Insurance provides security to the international traders, shipper and banking or financing

institutions which are main functionaries to foreign trade. Thus, insurance helps in the expansion of

foreign trade.
9. Self Confidence and Goodwill
Insurance by providing a feeling of security among the insured, also creates self-confidence in

them. Thus, insurance not only provides protection against risks. But also provides capital to the

insured which becomes a source of financial stability and strength. As such, insurance increases self

-confidence reputation and goodwill of the insured.

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 COMPANY PROFILE
BAJAJ ALLIANZ LIFE INSURANCE

A PROFILE
THE PARTNERSHIP:
BAJAJ ALLIANZ first came together for a possible joint venture, to enter the Life Insurance

market, in January 2001. It was clear from the outset that both companies shared similar values and

beliefs and a strong relationship quickly formed. In October 2001 the companies signed a joint

venture agreement.
Around this time Standard Life purchased a 5% stake in BAJAJ ALLIANZ, further strengthening

the relationship.
The next three years were filled with uncertainty, due to changes in government and ongoing delays

in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament.

Despite this both companies remained firmly committed to the venture.

In October 2001, the joint venture agreement was renewed and additional resource made available.

Around this time Standard Life purchased 2% of Infrastructure Development Finance Company

Ltd. (IDFC). Standard Life also started to use the services of the BAJAJ ALLIANZ Treasury

department to advise them upon their investments in India.

Around this time Standard Life purchased a further 5% stake in BAJAJ and a 5% stake in BAJAJ

ALLIANZ.
In a further development Standard Life agreed to participate in the Asset Management Company

promoted by BAJAJ ALLIANZ to enter the mutual fund market. The Mutual Fund was launched

on 20th July 2000.

BAJAJ ALLIANZ have a long and close relationship built upon shared values and trust. The

ambition of BAJAJ ALLIANZ Life is to mirror the success of the parent companies and be the

yardstick by which all other insurance company's in India are measured.

OUR MISSION:

We aim to be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the market, rather it is

a combination of several things like-

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 Customer service of the highest order
Value for money for customers
Professionalism in carrying out business
Innovative products to cater to different needs of different customers
Use of technology to improve service standards
Increasing market share

OUR VALUES:

Security: Providing long term financial security to our policy holders will be our constant

endeavor. We will be do this by offering life insurance and pension

Trust: We appreciate the trust placed by our policy holders in us. Hence, we will aim to

manage their investments very carefully and live up to this trust.

Innovation: Recognizing the different needs of our customers, we will be offering a range

of innovative products to meet these needs. Our mission is to be the best new life insurance

company in India and these are the values that will guide us in this.

PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE

Insurance solutions for individuals

HDFC Standard life Insurance offers a range of innovative, customer- centric products that meet

the needs pf every life stage. Its ten products can be enhanced with upto four riders, to create

customized solutions for each policyholder. Each of us leads a unique life and so has unique needs.

BAJAJ ALLIANZ offers a range of products and invites you to choose the one that suits you best.

Plan Benefits

Savings Plans

New unit gain Life Insurance with Savings

Invest plus Life Insurance & Savings with choice of investment funds

Childrens Plan Financial Security for your child

Fortune plus Financial security for your child with choice of investment funds

Cash gain Life Insurance with Savings

Investment Plans

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New unit gain sp Investment with Life Insurance

Term Assurance Plan Life Insurance at an affordable price

Family care For family member health

Retirement Plans

Swarnavishranti Savings for retirement

Ne unit gain pention plus

Retirement Savings with a choice of investment funds
RP

SAVING PLANS

New unit gain Plan

It is a participating (with profits) insurance plan that offers the following features:
1 Provides financial support to the family by way of a lump sum payment in case of the

unfortunate death of the life assured within the term of the policy.
2 Provides a lump sum payment to the life assured on survival up to maturity.
The lump sum mentioned is the basic sum assured plus any bonus additions.
Invest plus
The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on

maturity or on earlier death. The Unit Linked Endowment Plan also gives the option of additional

protection against the six common critical illnesses, as well as additional protection if death is as

the result of an accident.

Your premiums are invested in units of the investment fund of your choice, based on the prevailing

unit price. On maturity you receive the value of your units. On death (or critical illness, if chosen)

you receive the greater of the value of your units and your selected basic sum assured.
Invest plus
The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on

maturity or on earlier death. The Unit Linked Endowment Plan also gives the option of additional

protection against the six common critical illnesses,as well as additional protection if death is as the

result of an accident.

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Your premiums are invested in units of the investment fund of your choice, based on the prevailing

unit price. On maturity you receive the value of your units. On death (or critical illness, if chosen)

you receive the greater of the value of your units and your selected basic sum assured.
Children's Plan
Childrens Plan is designed to provide a lump sum to the child at maturity. It also provides financial

security to the child in the future, even in case of the insured parents unfortunate death during the

policy term. Childrens Plan receives simple reversionary bonuses, which are usually added

annually. This is a flexible plan with three options for you to choose from, depending on your

requirements.
Fortune Plus
HDFC Unit Linked Young Star Plan is designed to provide a lump sum to the child at maturity. It

also provides financial security to the child in the future, even in case of the insured parent's

unfortunate death during the policy term. The Unit Linked Young Star Plan also gives the option of

additional protection against the six common critical illnesses.

Your premiums are invested in units of the investment funds of your choice, based on the prevailing

unit prices. On maturity the value of the units will be paid. On death (or critical illness, if chosen)

the selected basic sum assured is paid, and the policy continues until maturity. Following a valid

death or critical illness claim, we will pay the future premiums (at the level originally chosen at

inception) into your policy, as and when they would have fallen due.
Cash Gain
It is a participating (with profits) insurance plan that offers the following features:
3 Payment of cash lump sum, each of which is a proportion of the basic sum assured, at 5-year

intervals during the term of the policy. (Please refer to the table given below.)
4 On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions

less the cash lump sums paid earlier is provided.

5 In case of the unfortunate death of the life assured within the term of the policy, the basic sum

assured plus any bonus additions is provided.

INVESTMENT PLAN

New unit gain sp

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Single Premium Whole Of Life Insurance Plan is well suited to meet your long term investment

needs. This participating (with profits) plan offers you the following benefits:
A sound investment:
Your money will be invested in our With Profits fund. The fund aims to provide secure and stable

long term growth. Normally, we will declare a compound reversionary bonus for your policy every

year and add it to your policy on its anniversary. In addition, on death, surrender or on the

guaranteed dates, a terminal bonus might be payable. You pay a single premium and the policy will

pay you a lump sum.

Flexibility of term:
Even after choosing your policy, you can decide on the policy term. For 4 weeksafter any one of the

10th, 15th, 20th and subsequent five-year anniversaries, you can choose to receive the sum assured

plus any attaching bonuses, in full. Once the money has been received, your policy will cease.
Surrender value:
You can terminate the policy any time, after it has been in force for at least 6 months, and receive a

surrender value.
In case of unfortunate death:
Your nominee gets the sum assured secured by your premium, plus any attaching bonuses.
No medical requirements:
We do not require you to undergo any medical test for this plan.

1. RETIREMENT PLANS

Swarna Vishranti
Under this plan, a sum assured is payable in case of death of the life assured during the term of the

contract. One can choose the lumpsum that would replace the income lost to one's family in the

unfortunate event of one's death. Since this non-participating (without profits) plan is a pure risk

cover plan, no benefits are payable on survival to the end of the term of the policy.

2. PENSION PLANS

New unit gain pension plus RP

Before you enter into any financial contract, it is important that you understand what the product is,

how it works, the risks involved and what a decision to buy could mean for you. We recommend

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that you read this document before you purchase a policy from BAJAJ ALLIANZ Insurance

Company.

3. Purpose:

The policy is basically a savings contract, which is designed to provide an income for life from

retirement, with an option to take the lump sum elsewhere to buy the annuity, provided it is

permitted by the prevailing regulations.

Your commitment:
You agree to pay a single premium or level premiums with installments due every quarter, half-year

or year throughout the deferment period of the policy, after which you will start receiving your

pension.
Risk factors:
If you cease to pay premiums we may pay a surrender value. This will be determined at our

discretion. If any of the information which you provide is incorrect, we reserve the right to vary the

benefits which may be payable and, further, if there has been non-disclosure of a material fact then

we may treat your Policy as void. We will not pay out if a claim arises from an excluded cause of

death. Future bonuses are not guaranteed.

They are dependent on our future experience. The principal elements of experience are our

investment performance and expenses.

4. Unit Linked Pension Plan

The unit linked pension plan is basically an insurance contract, which is designed to provide a

retirement income for life. Your premiums are invested in units of the investment fund of your

choice, based on the prevailing unit price. On vesting the value of your units will be used to buy

your retirement benefits.

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CONSUMER BEHAVIOR

In todays challenging & competitive world of fast changing technology, consumer tastes are also

characterized by fast changes. So, to survive in the market, a firm has to be constantly innovating

and understand the latest, consumer trends, tastes and preference. Consumer behavior provides

invaluable dues and guidelines to market on new technological frontiers, which they should

explore. It is realized by studying the buying behavior of consumers that many consumer products

that they felt reflected their own special needs, personalities and lifestyles. To better meet the needs

of specific groups of consumers, most marketers adopted a policy of market segmentation &

successfully market to different segments the marketing manager needs appropriate marketing

strategies, which he can design only when he can understand the factor, which account for these

difference in consumers behavior. The most important reason for studying consumer behavior is the

significant role it plays in our lives. It plays a vital role in decision-making.

As consumer significantly affected certain decision's behavior or expected actions. So, consumer

behavior is said to be an applied discipline. Such applications can exit at two different levels of

analysis. The Micro Perspective & Societal perspective. The micro perspective involves

understanding consumers for the purpose of helping a firm or organization accomplish its

objectives. The societal perspective can provide insight into aggregate economic & social trends

and can perhaps even predict such trends. It may suggest ways to increase the efficiency of the

system & improve the well being of people in society.

Consumers Behavior can be defined as
"The behavior that consumer display in searching for, punching, using, evaluating and disposing of

products & service that they expect will satisfy their needs.
Thus, the importance of consumer behavior lies in the fact that behaviour can be understood &

influenced to ensure a positive purchase decision. So, a round understanding of consumer behavior

is essential to the long run success of any marketing program. In fact, it is seen as a cornerstone of

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the marketing concept. That's why the marketing managers interest lies exactly to ensure that his

strategy result in purchase of the product.

Modeling Behaviour

The study of consumer behaviour is quite complex, because of the many variable involved and their

tendency to interact with and influence each other. So, the most relevant variables and their

influence can be shown by a diagram, which is made up of three major sections.

1. External environment variable influencing behavior.
2. Individual determinants of behavior.
3. The consumer's decision process.

1. External Variable:
The external environment is made up various influences as culture, subculture, social class,

social group, family and personal influences.

I) Culture:
The study of culture encompasses all aspect of a society such as its religion knowledge,

language, laws, customs, tradition, music, art, technology, work pattern, products etc. for the

purpose of CB culture can be defined as the sum total of learned beliefs, value & custom

that serve to guide and direct the consumer behavior of members of a particular society.

Thus, the concept of culture offers many general & specific insights into the behavior of

consumers. So, it is a starting point for the marketer who wishes to better understand a

market.
II) Formal learning:
In which parent an elders teach children the proper way to behave & this behavior influence

his attitude towards the products.

b) Informal learning: In which learning takes place by imitating the behavior of the parents,

friends or by watching TV & film actors in action.

III) Technical Learning: In which instruction are given about the specify method by which

certain things have to be done such as painting, dancing

IV) Subculture: These groups posses beliefs, values and customs that set them apart from

other members of the same society or culture. So, there are subculture of students,

Professors, marketers, & other group. An individual may be member of more than one

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 subculture at the same time, and based upon it consumers behavior like product purchase

Patterns, Shopping behavior &: other Demographic &Psyographic characteristics may

differ. Thus, it .is imperative that marketers understand who constitutes the most relevant

subculture for their particular or service.

V) Social Class Influences: Social class is defined as the division of members of a society

into a hierarchy of distinct status class, so that members of each class have relatively the

same status class, so that members of each class have relatively the same status & members

of all other classes have either more or status. In this complex society, in which financial

wealth dictates status, one's possessions become a substitute indicator of the individual

worth value, wealth & so forth. Members of specific social class differ in terms of what they

consider good taste. So, social class is also an important variable in determining where a

consumer shops. That's why marketers have always catered to give them an edge, whether

real or imagined, over their pears.

IV) Social Group Influences: It can be viewed as a collection of people who have a sense of

relatedness resulting from some form of interaction with one another. There are different

types of reference groups & each group has its own status, norms, role, socialization &

power.

Reference Groups:

It refers to group that serve as trams of reference for individual in their judgment, beliefs, purpose

& consumption behaviour. These reference groups are highly relevant and potent influence in

consumers decision-making. To attract consumers a no of promotional strategies are used & one of

them is Reference group appeal. There are helpful in increasing: brand awareness & serve to reduce

perceived & guide the individual value & behaviour.

1) Family:
The family is a major influence on the consumption behavior of its members; it is also the

prime target market for most product categories. Familiars can be defined as two or more

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 person related by blood, marriage or adoption that reside together. The basic function of a

family is the provision of economic & emotional support; childhood socialization & a

suitable life style for its members of consumers related role of family members include

influences, gatekeeper, deciders, buyers, users, maintainers & disposers. Thus, the family

operates an economic unit, earning & spending money & the family functions directly in the

role of ultimate consumption. Each family member influences the purchase decision.

Family members have individual and collective consumption priorities. Thus, the marketers

need to understand the nature, the family's influence on its members & the way in which the

purchase decision are made by the members. The stages of a family's life cycle also

influence the consumer behavior.

2) Personal factor/influence:
(a) Demographic factor & life cycle stage: The first factor influence a buyer's decision is his

age. There are certain physiological difference between men & women, which result in

there having different consumption needs.

The consumption behavior is also influenced by the specific stage of the family life cycle, which

are as follows-

Single stage (Young unmarried people living away from home)

Young newly married (no children)
Full nest I (Youngest child under 6)
Full nest II (Youngest child over 6)
Empty nest I; older (married couples, no children living at home, house hold head still

working)
Solitary Survivor - In (Labour Force) Solitary Survivor: Retired.

b) Education & Occupation: Education widens a person's horizon, refines his tastes and

makes his outlook more cosmopolitan. An educated person as compared to somebody less

educated is more likely to consume educational facilities, books, magazines and other

knowledge oriented products and services. The occupation also shapes the consumption

needs. Some people require specialized equipment for the purpose of their job.

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c) Income: Income here means the income available for spending (i.e. income after tax,

provident fund and other statuary deduction). The person's attitude towards spending versus

saving and his borrowings power are also important influencing factors.
d) Personality:Personality is defined as those inner psychological characteristics that both

determines and reflect how a person responses to his environmental stimuli. Personality is

enduring and ensures that a persons responses are consistent over time.
e) Life Style: Life styles are the pattern in which people live, as expressed by the manner, in

which they spend money and time on various activities and interests. It is a function of

opinion, social class, demographic factors and personality etc.

f) Other Influences: This is the general category encompassing influences on consumers. The

influence might be the effects of media i.e., whether consumer's behavior is more influenced

by print media or the electronic media. Other influences including physical surroundings,

the interpersonal setting, national events and other situational variables.

2. Individual Determinants Of Behavior:

These variables influence how the consumer proceeds through a decision process regarding

products and services. The various individual determinants are :

a) Consumer needs and motivation: Consumer has different needs and attitudes towards any

good and services and they accept different goods or services with the expectation that they

will satisfy their needs. Motives are the internal factors that energize behavior and provide

guidance to direct the activated behavior.

Involvement describes the personal relevance or importance that consumer perceives in a

given purchase situation.

b) Perception: Perception can be defined as "how we see the world around us;" Perception

helps to explain the phenomenon of why different individual responds definitely to the same

stimulus under same conditions.

c) Learning and Memory: Learning can be viewed as very significant for marketer as it

implies that consumers can be made to learn the desired behavior through an interplay of

motives stimuli, cues, responses and reinforcements. Learning refers to the skill and

knowledge gained from part experience, which one tends to apply to evaluate future

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 decisions learning and memory processes can help to understand that war frequency is

needed to repeat, advertising messages, how visual symbols and other techniques can

facilitate consumers learning and memory regarding products and how consumer develop

habitual purchase pattern for some goods.

d) Beliefs and Attitudes:A belief is a descriptive thought that a person has about something.

The belief may be based on some real facts or it may merely be a notion or opinion that the

person has. Attitude is a person's enduring facing evaluation and tendency towards a

particular idea or object Attitudes strongly influence how consumers will act and react to

products and services and how they will respond to communication that marketers develop

to convince then to purchase their products.

Thus, there were the various factors, which influence the consumer behavior.

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 SWOT ANALYSIS

STRENGTHS
BAJAJ ALLIANZ Insurance has a great goodwill in insurance market.
Sophisticated infrastructure of the company.
Customer satisfaction policy of company is a major factor for expansion of its business.
Advertising is playing an important role in the increasing business of company.

WEAKNESSES
Typical type of paper /document formalities.
New born company in the insurance sector.

OPPORTUNITIES
Payment paid for Insurance gets tax rebate in Income Tax. This is a major factor for

boosting insurance business. So in this scenario, BAJAJ Std. Life Insurance has a big scope

for future endeavour

THREATS
BAJAJ ALLIANZ Life Insurance has major business threat from its competitor Life

Insurance Corporation, who totally dominant over insurance market.

In a democratic country, like India government policies alter with the change of government

in centre.

19
 CHAPTER 2
REVIEW OF
LITERATURRE

20
 REVIEW OF LITERATURE

This chapter presents the review of literature to identify and understand the implication of
different issues related to consumer behaviour and life insurance in India. A comprehensive review
of related past studies helps the researcher to adopt, modify and improve the conceptualisation of
framework and provide a link with past approaches. Based on the review of literature the researcher
has enabled to identify her source for the present study. The available studies are collected from
research articles, committee reports, projects and surveys conducted. There are 97 researches on
Life Insurance. The following is a review of some recent research work done in the field of Life
Insurance:-
Khan M.K. (1978) attempts to know the opportunities and prospectus in the carrier of life
insurance sector. He explains about what a good carrier is and how a good carrier should be selling
of life insurance products. There is no age barrier and it requires to previous occupational
experience but one must be a professional and capable of creating opportunities in building
personality. He also observes that life insurance agent remains, in a sense, permanent server to the
clients.
Rajan Saxena (1986) in his article Life Insurance Services discusses various issues
relating to life insurance. The author insist on the importance of life insurance and discusses on
various strategy of life insurance.
Ashis Deb Roy (1987) in his article entitled We care for our customers has examined the
nature and importance of better customer services to policyholders and has emphasized the need for
quality in services. He has given a detailed note on the various steps to be taken by Life Insurance
Company to improve the customer service such as training programmes conducted by company to
its agent and employees, opening new branches and introduction of computers in branch offices.
Rao, B.S.R. and Appa Rao Mchiraju (1988) in their article entitled Life Insurance and
Emerging trends in financial services market, contends that the agents of Life Insurance should
improve their services to the level of financial expert. The author felt that the change in the
economic scenario would help the corporation in better services field.
Shejwalker,P.C. (1989) in his article Training in Life Insurance discussed the importance
the trained agent forced to develop the Life Insurance businesses. He stressed that present selection
pattern of the agents should be changed. He expressed his opinion that private or independent
institute should be invited to impart training to the agents.
Krirubashni, B. (1991) in her study attempts to know the level of awareness, preference
and influencing factor pertaining to policy holding and to test the relationship between the
influencing factor and policy holding. The study reveals that the majority of the respondents aware

21
of the endowment assurance policy and conceded to rank it as no. 1. The study also revealed that
there was a significant relationship between personal factors and policy holdings.
Seetaramaiah, M. (1992) in his article entitled Fluctuations in New Business identified
the reason for heavy work load on new business during the year ending period. He suggested some
steps to overcome them. They are closing the half yearly accounts in September, giving heavy
discount for the premium received in the first quarter, giving a special rebate of premium in the lean
months, and completing the promotion and posting of officials by the first week of April.
Malhotra, R.N. (1996) a committee on reforms in the insurance sector was formed to
discuss on the medias insurance sector According to his survey, the awareness level of various
policies of both general and Life Insurance Company is quite limited. He is also of the view that a
fair proportion of people are of the opinion that peerless companies are offering only general
insurance.
Shekar Chandra (1998) in his article Future strategies for Life Insurance discussed
various issues relating to Life insurance. He has given a detailed note about new kinds of product
and intimacy with the constant technology adoption for survival as well as for consistent growth.
Shesha Ayyer, V. (1999) in his article entitled New Business Product in the Next Century
expressed his views about new products. The possibility of the aged living too long has become real
because of advancement in medical facilities. Pension schemes have thus become popular though at
a slow pace. Divorce rates are increasing and the insurer can look into the problem and introduce
new schemes to fit them.
Kotler, P.(2000) in this book, mentioned that a company practicing market segmentation
realizes that buyers differ in their needs and wants, purchasing behaviour, demographic
characteristics, product service usage pattern, geographic locations, buying habits and other
characteristics.
Kishore, R.B. (2001) in his article a Holistic view of insurance Reforms and a blue print
for strengthening Life Insurance Company stated that there is an enormous scope for a big
breakthrough and an accelerated growth with keen healthy competition. He forecast that the
industry would generate 8 to 10 Lakhs jobs in the next 5 to 7 years.
Shaoo, S.D.(2002) in his article Rebating in Insurance gave suggestions to overcome
the problem of rebating. LIC is paying 35% as first year commission to its agents. It can be spread
over subsequent years. If a policyholder fails or subsequently defaults in premium payment, the
commission paid to agents should be recovered. To implements this, IRDA has to make amendment
in the IRDA Act 2000.
Shobit and Snjay Shukla (2004) conduct a survey in Lucknow city as well as its adjoining
rural areas to understand the scenario of private insurance players. The sample size of 200 of
which rural accounts for 80 students. The finding revealed that majority of rural population

22
showed high bias towards low premium risk coverage. The study also revealed that in urban areas,
efficient customers services and services provided at doorstep are the two major reasons for market
penetration in the private insurance sectors.
Namasivayam, Ganesan, S. And Rajenderan, S. (2006) examined the socio economic
factors that are responsible for purchase of life insurance policies and the preferences of the
policyholders towards various types of policies of company. From the analysis, it was found that
factors such as age, educational level and sex of the policyholders are insignificant, but income
level, occupation and family size are significant factors for the purchase of LIC products.
Patil, P.B. and Thakur, P.N. (2007) article Impact of disinvestment on Banking and
Insurance sector revealed that a strong competition among the insurance companies has led to
better services being provided by customer satisfaction can be known from the customer retention
ratio. Now most of the companies are customer centric approach, rather than product centric
approach which is leading to customer retention ratio.
A study conducted by Sunayna Khurana (2008) article customer preferences in life
insurance industry in India, revealed that the insurance sector plays a very important role in the
development of any company. It is necessary for the economic and overall development of any
country. In todays competitive economy, the business, finance and insurance sector plays a very
important role. More and more job opportunities are available in these sectors.
Shivanand H. Lengti (2009) in his articles Insurance Disputes in India revealed that the
insurance consumers have the option to select the appropriate authority and forum. It may be the
insurance ombudsman or the consumer council, to settle their dispute.
Selvavinayagan, K. And Mathivanan, R. (2010) article has revealed that the competitive
climate in the Indian insurance market has changed dramatically over the last few years. At the
same time, changes have been taking place in the government regulations and technology. The
expectations of policyholders are also changing. The existing insurance companies have to
introduce many new products in the market, which have competitive advantage over the products
of life insurance companies.

Ramanathan, K.V. (2011) research has resulted in the development of a reliable and valid
instrument for assessing customer perceived service quality, awareness level, and satisfaction level
of customer towards life insurance industry. Here, service quality needs to be measured using the
six dimensional hierarchal structure consisting of assurance, competence, personalised financial
planning, corporate image, tangibles and technology dimensions. This would help the managers to
efficiently allocate resources, by focusing on important dimensions first. There is no right and
wrong in this. The success of marketing insurance depends on understanding social and culture

23
needs of the target population, and matching the market segment with the suitable intermediary
segment.

24
 CHAPTER- 3
RESEARCH METHODLOGY

25
 NEED OF THE STUDY
After liberalization large number of multinational companies has crossed the national
boundary of our country. Increase in competition and the plan for expansion has compelled the
company to analyze the brand image the company in relation to its competitors .As the company
plans to communicate with the customers through various medium. For the purpose the companys
marketing communication objectives should be determined. Bajaj Allianz Life Insurance Company
perception towards their products. Today Insurance Industry is one of the sectors which are fast
growing. Recently there is a shift in the Insurance Industry that is may pvt. Multinational Life
Insurance Companies has entered India. This has increased the competition to a great extend. So the
company wants to know the present demand for Insurance. So that they can adjust their market
performance accordingly.

People take life insurance, because they insure that their family is financially secure and
continue their standard of living after an unexpected death.
People take policy, because perhaps with a policy that pays out a cash lump sum or one that
replaces your income. Policies like this designed to give you financial peace of mind when
you need it most.
To know the customer perception toward the Bajaj Allianz Life Insurance companys
product or schemes.
To know the companys plans to increase its sales in future.
To find out the most dissatisfying factor that should be rectified by the Bajaj Allianz life
insurance company.
To find out the relevance of ethics and transparency in insured.
To find out the awareness of Bajaj Allianz life insurance company.

OBJECTIVES OF THE STUDY

1. To analyse the consumer behavior regarding insurance company.
2. To know about the level of awareness of consumers regarding insurance companies.
3. To know the level of satisfaction of respondents of different insurance companies.
4. To know about the media of advertising who play vital role in increasing the awareness about

the insurance among consumers.

SCOPE OF THE STUDY

The research work entitled, a study on consumer behaviour towards Bajaj Allianz Life

Insurance Company in Dharamshala city would enable the companies to find out the status of their

products. The study covers the people from different parts of Dharamshala. The study is aimed at

26
Analysing the Brand image of Bajaj Allianz Life Insurance Company in relation to other company.

The research finding could be helpful to the actuaries to develop new policies according to the

current needs of the people, do create awareness among the company and policy maker regarding

their responsibility to cater to the security and financial needs of the rural population in the event of

a crisis by going beyond the minimum requirement as stipulated by the IRDA and that they should

cater to the needs of both rural as well as urban masses in a more concrete and effective manner. It

would be helpful to reorient their policies to suit the requirement of the prospectus. The present

study is confined to an analyse of the various elements of market mix employed by the like

insurance company and determents how far they depend upon each one of these element to market

their products. The prominent factors constituting, the market mix are looked into and their related

importance in the total marketing strategy has been examined. The future belongs to those who

believe in the study of their dreams. Bajaj Allianz future gain helps you save systematically and

offers both insurance and market linked return on your investment. BAJAJ ALLIANZ Insurance

has a great goodwill in insurance market. Sophisticated infrastructure of the company. Customer

satisfaction policy of company is a major factor for expansion of its business. Payment paid for

Insurance gets tax rebate in Income Tax. This is a major factor for boosting insurance business. So

in this scenario, BAJAJ Std. Life Insurance has a big scope for future endeavor.

RESEARCH METHODOLOGY

Research is an original contribution to the existing stock of knowledge making for the

advancement. According to Clifford Woody Research comprises defining and redefining

problems, formulating hypothesis or suggested solution, collection, organizing and evaluating data,

making deductions and reaching conclusion and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis. Research in common parlance refers to

27
search for knowledge. One can also define research as a scientific and systematic search for

pertinent information on a specific topic. In fact, research is an art of scientific investigation. The

advanced learner dictionary of current English lays down the meaning of research as a careful

investigation or inquiry especially through search for the new facts in any branch of knowledge.

Some people consider research as a movement, a movement from unknown to known. It is actually

a voyage of discovery. Inquisitiveness is the mother of all knowledge of whatever unknown, can be

termed as research.
Research methodology is a way to systematically solve the research problem. This chapter

describes the research methodology adopted in conduct of this study. It may be understood as a

science of studying how research is done scientifically. In it we study the various steps that are

generally adopted by a researcher in studying his research problem along with the logic behind

them. It is necessary for the research to know not only the research methods/ techniques, but also

the methodology. Every research project conducted systematically has a specified framework for

collection and analysis of data in a manner that aims at combining this frame work is called

research designed involves five steps:

1 Deciding the approach to be used in the design.
2 Deciding the data needed.
3 Identifying probable sources of data.
4 Deciding how the data should be gathered
5 Anticipating the results, their interpretation and presentation.
Research Design
The heart of research is research design. It is over all plans that specify information

needed and specifies how investigation to obtain it will conduct. A complete research deign would

include the following elements:

Statement of the evidence necessary to solve a problem and the basic scheme whereby the
solutions will become revealed or validated.
Specification of the evidence-where and how it will obtain.
Anticipation of how the data will be analyzed to produced answers to the problem.
Guidelines for calculation and approval of feasibility and cost of the project.

28
 Research designs are often classified by the purpose of research and data collection efforts.

The usual classification is exploratory, descriptive and casual.

Exploratory research aims at defining the problem, including the identification of the

relevant variables and of possible alternative solutions. Such study may also be designed to develop

the specific research questions that need to be explored. Descriptive research is the most common

design. The purpose is to describing the phenomena, to describe the consequences of possible

alternative course of action, to describe a potential market in terms of present or future customer

attitude of other characteristics and to describe a product image. For the purpose of my survey, I

decided to follow the conclusive research design under this I selected the descriptive design.
Casual study, aims at predicting or for suggesting causes. Such studies require procedures

that will not only reduce bias and reliability, but will permit drawing inferences about causality.

Such study often takes the form of an experiment.

29
 Data Collection
The investigator must identify the source from which the different items of information are

obtainable and select those that will use. He may use primary data, secondary or both.
Primary data:- are data freshly gathered for a specific purpose or for a specific research

project at hand, directly e.g. -through questionnaire and interviews. When the needed data do not

exist or are dated, inaccurate, incomplete or unreliable, the researcher will have to collect primary

data collection.
Secondary data:- are generally published sources, which have been collected originally for

some other purpose. They are not gathered specifically to achieve the objectives of particular

project at hand, but are already assembled. Such sources are internal company records, government

publication, reports and journals, trade professional and business firms records, university research

organization and library.

In my project I used both primary data as well as secondary data.

Research Instrument
The research instrument used by me in conduct of my survey is questionnaire. The

questionnaire consisted of a set of questions concerning to the subject. In preparing questionnaire, I

carefully choose the questions.

The information received from respondents is not factually corrected though it may appear

to be so. In addition, sometimes information belongs to the secondary namely Belief. The

information received from respondent can be a belief and feeling. It involves depth interviewing.

The information is often sought in opinion of respondents. He is specifically asked what view he

holds on a particular companys product and he is free to opine. Similarly, information on the

respondents attitude on one or more subjects or things is sought. Finally the researcher at times

wants to know the reason for a particular choice or action of respondent. The questionnaire consists

of a number of questions pertaining to the subject. In preparing questionnaire, I carefully choose

questions, wording and sequence in close-ended questions included in this questionnaire. An open-

ended question allowed the respondents to answer in their own words and reveals more about how

people think. These served a useful hand in explanatory stage of research. The close-ended

30
questions specify all possible answers and provide answers that are easier to interpret and tabulate.

Dichotomous questionnaire in my questionnaire offers choices in my questions, I offered my

respondents a numbers of specified alternative form, which they were asked to choose one, or more

through specified information question. The language used for framing question is simple and easy

to understand. For my survey I used personal interview of respondents by asking them a list of

questions from questionnaire prepared by me for collecting the desired information and having

being fulfilling the questionnaire these and then according to information given by each person.

SOURCES OF DATA
The present study is based on both secondary data as well as primary data. Secondary data

were collected from Bajaj Allianz Company Official website, LIC, Wikipedia and Economic

Survey of India and Himachal Pradesh, Directorate of Economics and Statistical, Publication and

Reliance Company, and Primary data are data gathered for a specific purpose or for a specific

research. The secondary data provide a starting point for research and facilitate the comparison of

the research with the existing data.

PRIMARY DATA
Primary data are original in character and are collected for some specific purposes. The

primary data have been collected through the following tools. For the present research study

Kangra District of Himachal Pradesh is selected in general and Dharamshala city of Kangra District

in particular. The primary data has been used to execute Baja Allianz Insurance Companys at

Himachal Pradesh. The Primary data has been collected with help of personal interviews, pilot

survey, personal observations and questionnaire/schedule.

Sample Size
This study is based on primary as well as secondary data. Primary data have collected from

the Dharamshala city of Himachal Pradesh from 100 stakeholder of BAJAJ ALLIANZ Insurance

Company on the basis of snow ball sampling. A sample size is a definite plan for obtaining a

sample from a given population. For the justification of the study various variables of demographic

profile have give due considerations i.e. income, age, gender and the area of the respondents.

31
 TOOLS OF ANALYSIS
The data collected from different sources have been classified and arranged in tables in one

or more forms according to the requirements of analysis. For the analysis of results, the following

techniques have been applied:

1. MATHEMATICAL TOOLS
In the present research work, mathematical tools viz. percentage and simple average is used to

analyze the collected data.

2. TABULAR ANALYSIS
In the present study, tabular analysis was used to support the inferences drawn from the statistical

analysis.
Tools
Analysis will be done by using:

Percentage analysis will be used

Bar diagram and Pie charts - Bar diagram and Pie charts will represent the clear picture in
graphical format.

32
CONCLUSION

Statistical and mathematical listed above tools were applied to analyse the data generated

from both primary and secondary sources. The findings are described in the following chapters.

FORMAT OF REPORTING
The present study has been divided in to five chapters. The first chapter deals with the

introduction and throws upon the conceptual frame work of Bajaj Allianz Life Insurance. In the

second chapter, efforts have been made to review the available literature. Research design, which

deals with need, scope, objectives, sample design, research methodology and limitations of the

study, has been presented in the chapter third. Here a comprehensive discussion has been made

about the need and purpose of the study and the objectives of the present study. Chapter fourth

deals with the socio-economic profile and awareness level of the beneficiaries. In this chapter, an

attempt has been made to analyze the Bajaj Allianz Life insurance in Himachal Pradesh in general

and Dharamshala in particular.

LIMITATIONS OF STUDY

Though I done my study with utmost care, still some limitations are bound to take

place. These are

1 I had little time to do my study. Any new change can take place after my study
2 I had limited resources for my study.
3 I had a selected sample of people not the whole population to investigate.
4 Personal bias from the part of respondents can take place

33
 CHAPTER 4
DATA ANALYSIS &
INTERPRETATION

34
 DATA ANALYSIS AND INTERPRETATION

The chapter present the analysis and interpretation of primary

data and secondary data which is collected with the help of
questionnaire. The study is based on the sample of 100.
Table 3.1: Policies taken by respondents

Response %. of Respondents
Yes 72
No 28
Source: Field Survey

Yes No

28%

72%

Chart 3.1
The above chart shows that out of 100 respondents that I have studied, 72 have

taken any Insurance Policy while the rest 28 have not any insurance policy.

35
 3.2 TABLE Places where respondents wants to take policy

Companies %age of Respondents

HDFC 12
LIC 64
ICICI 16
Others 8
Source: Field Survey

HDFC LIC ICICI Others

8% 12%
16%

64%

Chart 3.2

The above chart depicts that under my study at Dharamshala 64% respondents

have their insurance policies with LIC while ICICI and BABAJ have 16% and 12%

respectively. The rest 8% respondents have their policies with some other companies.

This clearly shows that LIC have a major share in the insurance market at

Dharamshala.

Table 3.3: Respondents Awareness about the insurance company available in

the market

36
 Level of Awareness % of Respondents

Fully aware 16

Less Aware 52

Unaware 32
Source: Field Survey

Fully aware Less Aware Unaware

16%
32%

52%

Chart 3.3

The above chart represents that maximum number (52%) of respondents are

less aware about the insurance company available in the market. Only 16% are fully

aware about these. It is quite interesting that 32% of respondents are totally unaware

about the insurance companies.

Table 3.4: Parameter about the company decided by the respondents

Parameters %. of Respondents
Advertisement 14
Goodwill 28
Brand 54
Other 4
37
 Source: Field Survey

Advertisement Goodwill Brand Other

4% 14%

28%
54%

Chart 3.4
It is clear from the above chart that maximum number of respondents have

'Brand Name' as a parameter for deciding an insurance company, while Goodwill and

Advt. factors are the parameters of 28 and 14 respondents respectively. Rest 4

respondents have some other parameters for deciding a company.

Table 3.5: media of advertisement is playing a vital role in increasing the

awareness about the insurance

Advt. Media %. of Respondents

T.V. 42
Radio 2
Newspapers 9
Magazines 23
Signboards 15
Others 9

38
 Source: Field Survey
T.V. Radio Newspapers Magazines Signboards Others

9%

15%
42%

23%
9% 2%

hart 3.5
It is concluded from the above chart that T.V. plays a vital role in increasing

the awareness about the insurance among the people. It is successive with Signboard,

Newspapers, and Magazines. Other medias have also 14% share in increasing

awareness, while due to boom in electronics & communication, radio have now only

2% role to make aware the people about insurance.

Table 3.6: Satisfaction of Respondents about the insurance company

Satisfaction Level %age of Respondents

Fully satisfied 36
Moderate satisfied 34
Less satisfied 18
Not satisfied 12

Source: Field Survey

39
 Not satisfied Fully satisfied
12% 36%
Less Satisfied
18%

Moderate Satisfied
34%

Chart 3.6
The above chart denotes that a large number of respondents are fully satisfied

or moderate satisfied (36% & 34% respectively) with their insurance companies.

18% of respondents are less satisfied with their insurance companies. However 12%

of respondents have some complaints and they are not satisfied with their respective
Table 3.7: If any company gives respondents the exact solution for the

problem, how many respondents go for that company

Response %. of Respondents
Yes 68
No 32

Source: Field Survey

40
 68
70
60
No. of Respondents

50
32
40
30
20
10
0
Yes No
Responses

Chart 3.7
The above chart clearly shows that 68 respondents out of 100 are ready to with

some other company if that particular insurance company provides them exact

solution of their problem. While only 32 respondents will struck with their respective

company.
Table 3.8: Preferences of respondents about the company

Companies % of Respondents
Government 58
Private 42
Source: Field Survey

41
 Chart 3.8
The above chart shows that the 58% Respondents go for Government companies and

while 42% go for private companies.

42
 Table 3.9: Consideration of respondents about insurance

Insurance as % of Respondents
Security 28
Savings 35
5
Loan
Investment 32
Source: Field Survey

Se cu ri ty
28%
Inve stm e n t
32%

Loan
5%

Savi n gs
35%

Chart 3.9
The above chart shows that 35% Respondents thinks that insurance is a

savings and Investment 32% for Security and Loan is 28% and 5%.

43
 CHAPTER 5
SUMMARY,
FINDINGS,
CONCLUSION AND
SUGGESTION

44
 SUMMARY

The basic concept of my project is CONSUMER BEHAVIOUR TOWARD BAJAJ

ALLIANZ LIFE INSURANCE COMPANY-A CASE STUDY OF DHARANSHALA CITY is to

find the level of awareness of consumers regarding the insurance companies and to know the level

of satisfaction of respondents of different insurance companies.

Man always seeks protection from risks which in fact compel him to live in groups. He

remained exposed to various types of risks like death, accidents, loss of health, wealth and property

from wild animals, reptiles, floods, fire, earthquakes and other natural calamities.

Insurance in some form or other has been on answer to his problem of security. Insurance is

such a method which provides security and protection against financial loss upto same limits. It is a

means of shifting the risks to insure in consideration of a nominal cost called premium.

India is marketing ahead to more prosperous future. The economy is on a high growth path,

domestic saving is growing, exports have risen and inflation has stabilized. Infrastructure rector,

which even today is woefully inadequate to meet the expected increased industrial activities, has

been accorded top priority by the government. All this should reflect in a growth rate of 7% to 8%

for the next 3-4 years. With this scenario of high economic growth further reforms in the financial

rector are in the common minimum program of the government.

BAJAJ ALLIANZ have a long and close relationship built upon shared values and trust. The

ambition of BAJAJ ALLIANZ Life is to mirror the success of the parent companies and be the

yardstick by which all other insurance company's in India are measured.

The unit linked endowment plan is an insurance policy that is designed to pay a lump sum

on maturity or on earlier death. The Unit Linked Endowment Plan also gives the option of

additional protection against the six common critical illnesses, as well as additional protection if

death is as the result of an accident.

Childrens Plan is designed to provide a lump sum to the child at maturity. It also provides

45
financial security to the child in the future, even in case of the insured parents unfortunate death

during the policy term. Childrens Plan receives simple reversionary bonuses, which are usually

added annually. This is a flexible plan with three options for you to choose from, depending on

your requirements.

The unit linked pension plan is basically an insurance contract, which is designed to provide

a retirement income for life. Your premiums are invested in units of the investment fund of your

choice, based on the prevailing unit price. On vesting the value of your units will be used to buy

your retirement benefits.

In todays challenging & competitive world of fast changing technology, consumer tastes

are also characterized by fast changes. So, to survive in the market, a firm has to be constantly

innovating and understand the latest, consumer trends, tastes and preference. Consumer behavior

provides invaluable dues and guidelines to market on new technological frontiers, which they

should explore.

Consumers Behavior can be defined as "The behavior that consumer display in searching

for, punching, using, evaluating and disposing of products & service that they expect will satisfy

their needs.

The study of consumer behaviour is quite complex, because of the many variable involved

and their tendency to interact with and influence each other. So, the most relevant variables and

their influence can be shown by a diagram, which is made up of three major sections: - External

environment variable influencing behavior, Individual determinants of behavior, The consumer's

decision process.

BAJAJ ALLIANZ Insurance has a great goodwill in insurance market. Sophisticated

infrastructure of the company. Customer satisfaction policy of company is a major factor for

expansion of its business. Advertising is playing an important role in the increasing business of

company.

46
 Payment paid for Insurance gets tax rebate in Income Tax. This is a major factor for

boosting insurance business. So in this scenario, BAJAJ Std. Life Insurance has a big scope for

future endeavor.

After liberalization large number of multinational companies has crossed the national

boundary of our country. Increase in competition and the plan for expansion has compelled the

company to analyze the brand image the company in relation to its competitors .As the company

plans to communicate with the customers through various medium. For the purpose the companys

marketing communication objectives should be determined. Bajaj Allianz Life Insurance Company

perception towards their products.

People take policy, because perhaps with a policy that pays out a cash lump sum or one that

replaces your income. Policies like this designed to give you financial peace of mind when you

need it most.

Research methodology is a way to systematically solve the research problem. . It is

necessary for the research to know not only the research methods/ techniques, but also the

methodology. Every research project conducted systematically has a specified framework for

collection and analysis of data.

Research designs are often classified by the purpose of research and data collection efforts.

The usual classification is exploratory, descriptive and casual. Exploratory research aims at

defining the problem, including the identification of the relevant variables and of possible

alternative solutions. Descriptive research is the most common design. Casual study, aims at

predicting or for suggesting causes.

This study only focused on measuring customer satisfaction with service quality. Other

factors are essential factor but not included in the scope of the study.

When the questionnaires were distributed to the respondent, it was difficult to collect the

data in time. Some customer refused to participate in this survey. Moreover, some did not return the

47
questionnaires in time. If the respondents were more willing to offer feedback, the result would

have been useful for improving insurance habits of people.

In research I found that72% respondents have taken any Insurance Policy while the rest

28% have not any insurance policy.64% respondents have their insurance policies with LIC. This

shows that LIC have a major share in the insurance market. Maximum number (52%) of

respondents is less aware about the insurance company available in the market. Only 16% are fully

aware about these. It is quite interesting that 32% of respondents are totally unaware about the

insurance companies

To conclude my study I observed that a great number of populations is still without

insurance. People are less aware of insurance. More efforts are required to educate them. Although

some respondents have insurance policies, but still they are not aware of various insurance

schemes.

As a part of ongoing research, a lot of information was collected through formal and

informal discussion and observation. The objective of this study is to find the level of awareness of

consumers regarding insurance companies and to know the level of satisfaction of respondents of

different insurance companies. The needs of this study that human have shown to be the weakest

dimension of satisfaction. Therefore, insurance companies should arrange special course to improve

effective. They are very valuable as they reflect the sincere and honest opinion of various

respondents. I would like to present a summary of all these information and the inferences drawn

out of such observation.

48
 FINDINGS
During my research work, I find that:
72% respondents have taken any Insurance Policy while the rest 28% have not any

insurance policy.
64% respondents have their insurance policies with LIC. This shows that LIC have a major

share in the insurance market.

Maximum number (52%) of respondents is less aware about the insurance company

available in the market. Only 16% are fully aware about these. It is quite interesting that

32% of respondents are totally unaware about the insurance companies.

Maximum number of respondents have 'Brand Name' as a parameter for deciding an

insurance company, while Goodwill and Advt. factors are the parameters of 28 and 14

respondents respectively.
T.V. plays a vital role in increasing the awareness about the insurance among the people. It

is successive with Signboard, Newspapers, Magazines. Other medias have also 14% share

in increasing awareness.
A large number of respondents are fully satisfied or moderate satisfied (36% & 34%

respectively) with their insurance companies. 18% of respondents are less satisfied with

their insurance companies. However 12% of respondents have some complaints and they

are not satisfied with their respective insurance companies.

I have studied that the 58 % Respondents go for Government companes for insurance while

42% Respondents go for private companies.

I found that 35% Respondents thinks that insurance is a savings and investment 32% for

security and loan is 28% and 5%.

In my study I notice that 48% will take insurance policy in future and 52% Respondents

will not take insurance policy in future.

CONCLUSION

To conclude my study I observed that a great number of populations is still without insurance.

People are less aware of insurance. More efforts are required to educate them. Although some

49
respondents have insurance policies, but still they are not aware of various insurance schemes.

Brand name, Goodwill and advertisement factors are some of the parameters of deciding an

insurance company that is the reason why LIC have a major share in the insurance market at

Dharamshala. To increase their business private insurance companies should have to make some

positive initiatives. In this way, they can promote some new insurance policies. Overall we can say

that still the consumer of various insurance companies are satisfied or moderately satisfied with

their respective insurance companies.

50
 SUGGESTIONS
The detail study of the given topic, I find out that 28% of my respondents have not

any insurance policy. This means that there is a great need to motivate and educate people

regarding the insurance schemes. For this, I have some of the suggestions such as:
1 Advertising through media like T.V., Newspaper, Radio, Magazines should be increased

because media plays a vital role to motivate people regarding their insurance.
2 Door to Door campaigning and Insurance as a Topic of study in school / colleges can also

educate people.
3 Transparency in the various insurance schemes may lead to boost in customers towards

insurance.
4 Reducing in paper formalities may also share its contribution in enhancing the insurance

schemes.
5 Flexibility between various insurance schemes may be a good source to motivate

consumers.

51