Consumers Buying Behaviour In Life Insurance 6d1k1y
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PROJECT REPORT ON
“CONSUMERS BUYING BEHAVIOUR” FOR
KOTAK LIFE INSURANCE LTD. SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE MMS COURSE (SEM-2) OF MUMBAI UNIVERSITY
SUBMITTED BY RAJESH SATPUTE
COMPANY GUIDE RAMESH VAISHNAV
COLLEGE GUIDE SWATI MUKHI
DR. G.D POL FOUNDATIONS YMT COLLEGE OF MANAGEMENT, INSTITUTIONAL AREA, KHARGHAR, NAVI MUMBAI – 410210. MUMBAI UNIVERSITY: 2009-11
PROJECT REPORT ON
“CONSUMERS BUYING BEHAVIOUR” FOR
KOTAK LIFE INSURANCE LTD. SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE MMS COURSE (SEM-2) OF MUMBAI UNIVERSITY
SUBMITTED BY RAJESH SATPUTE
COMPANY GUIDE
COLLEGE GUIDE
RAMESH VAISHNAV
SWATI MUKHI
DR. G.D POL FOUNDATIONS YMT COLLEGE OF MANAGEMENT, INSTITUTIONAL AREA, KHARGHAR, NAVI MUMBAI – 410210. MUMBAI UNIVERSITY: 2009-11 2
CERTIFICATE BY COMPANY
3
YMT COLLEGE OF MANAGEMENT [d to Mumbai University]
CERTIFICATE This is to certify that Mr. Rajesh Raghunath Satpute of YMT college of Management has successfully completed the project work titled “A STUDY ON CONSUMERS BUYING BEHAVIOUR” in partial fulfillment of requirement for the completion of MMS course as prescribed by Mumbai University. This project is the record of the authentic work carried out by him under my guidance during the period 20th May, 2010 to 10th July, 2010.
Prof. Swati Mukhi
Dr. C. Babu
Faculty Guide
Director YMT College
PLACE: Navi Mumbai DATE:
4
DECLARATION I hereby declare that all the information contained in the project entitled “A STUDY ON CONSUMERS BUYING BEHAVIOUR” (Conducted on behalf of ‘KOTAK LIFE INSURANCE LTD, THANE) is true to the best of my knowledge.
[RAJESH SATPUTE]
5
ACKNOWLEDGEMENT In preparation of this report by me, I feel great pleasure because it gives me extensive practical knowledge about the corporate world. I got an idea about Indian Life Insurance Industry by this project. I express my deep sense of gratitude to my Company Guide Mr. Pramod Salve (ABM) and Mr. Ramesh Vaishnav (SM) for their valuable guidance during my project work. I would also like to thank all staff of Kotak Life Insurance,Thane who guided me directly or indirectly throughout my training project. I am thankful to my faculty guide Prof. Ms. Swati Mukhi and Prof. Mr. Jayant Banerjee for valuable inspiration and guidance provided me throughout the course of this project. At last I would like to extend my deep sense of gratitude to my friends and colleagues for their in my project work
6
EXECUTIVE SUMMARY
My summer internship helped me a lot to get the feel about the real corporate world. As a project trainee the first task given to me was to understand the basic behavior of the consumer in order to manipulate the market according to our target competition. For this I developed a questionnaire and I did my survey in MUMBAI (SION) city. This training also helped me alot in understanding the process of building effective marketing channels for life insurance products by establishing network of life insurance advisors and also how the life insurance business is run. The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents/advisors or agency holders of the company. If a company like KOTAK LIFE INSURANCE, ICICI PRUDENTIAL, RELIANCE LIFE INSURANCE, TATA AIG, MAX etc has adequate agents in the market, they can capture big market as compared to the other companies.
7
TABLE OF CONTENT
S.No. 1.
Topic
Page no.
INTRODUCTION-
8
•
Company Profile
•
Company Mission & Vision
•
Organization Chart
•
Management
2.
LITERATURE REVIEW
15
3.
PROJECT OBJECTIVE & SCOPE
21
4.
RESEARCH METHODOLOGY
22
•
Sampling Design
•
Data Collection
5.
DATA ANALYSIS
24
6.
FINDING
28
7.
SUGGESTIONS
29
8.
CONCLUSION
30
9.
ANNEXURE
31
10.
BIBLIOGRAPHY
33
11.
WEBLIOGRAPHY
33
8
INTRODUCTION COMPANY PROFILE Kotak Group was established in 1985.Kotak Mahindra Bank is the parent company of the group. Kotak group is one of the leading organization which provides financial services to individual as well as corporates. It serves the nation by its diverse business in financial sectors such as bank, securities, mutual funds, car finance, home loans, banking investments, private equity, reality funds. Kotak Group entered into the life insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a t venture between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old Mutual plc is a world-Class international financial services company. It was established in South Africa before 160 years. OLD MUTUAL is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 6 million life insurance policyholders and employs over 20,000 South Africans in its local operations. In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The company’s US Life business recorded sales of $10 billion at the end of 2009. The company is listed on the London Stock. It is one of the company in the fortune 500 of the world.
9
MISSION “At Kotak Life Insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.”
VISION & VALUES ℘
Our Vision:Kotak Life Insurance has a deep rooted commitment to improve the quality of life of
its customers, employees and stakeholders. We aim at improving the long term value in our relationship by continuous innovation and improvements. We do this by our three-prong effort which strives to make Kotak Life Insurance a corporate with values. Increase Customer Value: Kotak Life Insurance has gone to the heart of its customer's requirements and developed products which are unique and serve the customer needs perfectly. We built a relationship of mutual trust and benefit to serve the Indian customer. At Kotak Life Insurance the customer always comes first. Cohesive Work Environment: We form long-term partnership with our employees by offering them an invigorating work experience. We not only demand loyalty, sincerity and values but also give it back in equal measures. Kotak Life Insurance will like to offer its employees space to grow, innovate and build a long-term career. Work with Honor: Kotak Life Insurance delivers everyday services in the marketplace with the high sense of duty and commitment. Our employees strive to build the long-term value for all those come in with Kotak Life Insurance. Our consumers, distributors, employees, shareholders and the nation have our commitment that we will uphold the values of trust, integrity and a Sense of Honor in every thought, act and deed in order to positively contribute to individual, society and nation growth. 10
℘
Our values:Every member of the Kotak Group team is committed to 5 core values: Integrity,
Customer First, Boundary less, Ownership, and ion. These values shine forth in all we do, and have become the keystones of our success
ORGANISATION CHART
MANAGEMENT 11
We at Kotak Life Insurance work as a team and have a flat management structure. Our top management has many years of experience which has helped guide the company into a position of leadership.
12
KOTAK MAHINDRA
OLD MUTAL PLC
BANK ( 74% )
KOTAK LIFE INSURANCE
( 26% )
13
( 100% )
EXISTING COMPETITORS
14
POLICIES BY KOTAK 15
Kotak Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Protection Plan
Savings & Investments
Helping you to grow and protect
Manage today for a better
your wealth.
tomorrow.
Retirement
Child
The road to retirement, Make it
Plan a good future for your
easy
child.
Protection Plan: •
Kotak Loan Protection Plan
•
Kotak Term/Preferred Plan
•
Kotak Eternal Life Plan
Savings & Investments: •
Kotak Safe Investment Plan
•
Kotak Capital Multiplier Plan
•
Kotak Easy Growth Plan
•
Kotak Endowment Plan
•
Kotak Money Back Plan
•
Kotak Sukhi Jeevan Plan
•
Kotak return Plan
Retirement & Child Plans: •
Kotak Guaranteed Pension Builder
•
Kotak Second Innings Plan
•
Kotak Headstart Child Plan
•
Kotak Child Advantage Plan
LITERATURE REVIEW 16
Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's s are current. With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management –which is the need to mange uncertainty on of exposure to loss, injury, disadvantage or destruction. The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefit from it. The benefit may be an income or in some other form.
Classification of insurance: 1) Life insurance. 2) Non-life (general) insurance.
1) Life insurance:Life insurance can be defined as “life insurance provides a sum of money if the person who is insured dies while the policy is in effect”. In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870. The life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened
17
the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%.
Benefits of life insurance: ℘
Life insurance encourages saving and forces thrift.
℘
It is superior to a traditional savings vehicle.
℘
It helps to achieve the purpose of life assured.
℘
It can be enchased and facilitates quick borrowing.
℘
It provides valuable tax relief.
Fundamental principles of life insurance contract:1) Principle of almost good faith: “A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being proposed whether requested or not”. 2) Principle of insurable interest: “Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person”.
2) Non-life (general) Insurance:Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907. There emerged many a player on the Indian scene thereafter. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.
History of life insurance business in India
18
•
1850
Non life insurance debuts with triton insurance company. 1870 Bombay
mutual life assurance society is the first Indian owned life insurer •
1912
The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business. •
1928
The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses. •
1938
Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public. •
1956
245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: •
1907
The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business. •
1957
General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices. •
1968
The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up. •
1972
The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies’ viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. •
1993
Malhotra Committee, headed by former Finance Secretary and RBI Governor
R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently 19
underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms” In 1994, the committee submitted the report and some of the key recommendations included. •
1997
Insurance regulator IRDA set up
•
2000
IRDA starts giving licenses to private insurers: Kotak Life Insurance, ICICI
prudential and HDFC Standard Life insurance first private insurers to sell a policy •
2001
Royal Sundaram Alliance first non life insurer to sell a policy 2002
Banks
allowed selling insurance plans.
The Insurance Regulatory and Development Authority (IRDA) The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies. But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation. The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business). The act extends to the whole of India and will come into force on such date as the Central Government may, by notification in the Official Gazette specify. Different dates may be appointed for different provisions of this Act.
20
A new definition of "Indian Insurance Company" has been inserted. "Indian insurance company" means any insurer being a company (a)
Which
is
formed
and
ed
under
the
Companies
Act,
1956
(b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six percent, Paid up capital in such Indian insurance company (c) Whose sole purpose is to carry on life insurance business, general insurance business or re-insurance business?
WORKING OF LIFE INSURANCE INDUSTRY Profit = Earned + Investment Income – Incurred Loss – Underwriting expenses Insurers make money in two ways: 1. Through Underwriting, the processes by which insurers select the risks to insure and decide how much in s to charge for accepting those risks, and 2. By investing the s they collect from insured. •
Revenue =
•
Expenses = (Sum of Claims + Commission payable on procurement of business + Operating expenses)
•
Operating Surplus = (Revenue – Expenses) Net investment income includes income from trading in and holding stock market
securities including government securities, special deposits with the central government, loans to several public utilities and service providers in state government. Insurance collected is converted in a pool of fund then divided in to four expenses: •
To pay the expenses of the management
•
To pay agency commission
•
To pay for the claims
•
Surplus money will be invested in govt. securities
21
BASIC POLICIES •
Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy.
•
Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive.
•
Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible cost.
•
Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.
•
Whole life insurance policies: This type of policy runs as long as the policyholder is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder.
•
t life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but t life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.
•
Pension plan: a pension plan or annuity is an investment over a certain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period.
•
Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as well as return on paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).
22
OBJECTIVES: Proper understanding & analysis of life insurance industry.
To undergo IRDA’s training for becoming a life advisor
To conduct market surveys on a sample selected from the entire population and study the consumers buying behavior.
SCOPE: As large insurance market is still untapped so based on the survey the potential of the Indian market can be evaluated.
New distribution channel and marketing strategies can be evaluated based on the awareness among the masses regarding Kotak Life Insurance.
Life advisor license to be used part time basis to generate revenue for the company & income for self
23
RESEARCH METHODOLOGY Research always starts with a question or a problem. Its purpose is to question through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is the function which links the consumer, customer and public to the marketer through informationinformation used to identify and define marketing opportunities and problems generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing performance and improve understanding of market as a process. The data for this research project has been collected through self iration. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of questions has been used.
SAMPLING DESIGN Since it is not possible to study whole population, it is necessary to obtain representative samples from the population to understand its characteristics.
Sampling Area: Sion (Mumbai)
Sampling Unit: Individuals respondents for studying consumer buying behavior selected randomly from different parts of Sion locality of Mumbai
Sampling technique: Random sampling
Sample size: 100 respondents through different parts of Sion locality
Research instrument: Structured Questionnaire
method: Direct Interview
DATA COLLECTION There are two types of data collection method use in my project report. –
Primary data
–
Secondary data.
24
For my project, I decided on primary data collection method for observing the working of company and approaching customers directly in the field with the help of questionnaire prepared. I decided on Secondary data collection method by referring to various websites, books, magazines, journals and daily newspapers for collecting information regarding project under study.
LIMITATIONS Some of the difficulties and limitations faced during my training are as follows:
Lack of awareness among the people – This is the biggest limitation
found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life.
Perception of the people towards Insurance sector – People still
consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year.
Insurance does not give good returns – Still today people think that
Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% returns. Nowadays most of the modern Unit Linked Insurance Plans gives returns which are many times more than that of bank Fixed deposits, National saving certificate, and PPF.
Lack of awareness about the earning opportunity in the Insurance
sector – People still today are not aware about the earning opportunity that the Insurance sector gives. Companies in order to beat the competition and to increase their Insurance Advisors and increase their reach to the customers are giving very high commission but people are not aware of that.
Increased competition – Today the competition in the Insurance sector
has became very stiff. Currently there are more than 20 Life Insurance companies working in India. Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created 25
a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very very difficult.
DATA ANALYSIS
Figure 1 shows that the Indian market has lot of potential for the life insurance industry as more than 50% are still not insured.
26
Figure 2 clearly explains that LIC is still the most recalled brand in the mind of the Indian consumers.
Figure 3 shows that people are willing to buy policies for 10-20 years. This is due to the fact that many wants insurance to be a investment tool.
27
Figure 4 makes it clear that people prefer insurance as a comprehensive investment and risk coverage
Figure 5 says that people wants larger risk coverage as well as they prefer money back gurantee
28
Figure 6 makes it clear that agents & life advisors are the main source for company to bring business.
Figure 7 states the percentage of policy holders satisfaction level to their company. Many are not satisfied because of service after sales or during claims.
29
Figure 8 states that majority of people don’t consider their age while buying an insurance policy. These shows that people don’t plan their policies they just buy at whatever age.
OTHER LEARNINGS Attended three day special workshop for life advisor conducted by the Kotak Life Insurance, Thane. Gain basic knowledge about various Kotak life plans. Learned about arranging, approaching and closing an appointment with the clients. Also learned many insurance jargon such as DAB(Double accident benefit), Riders, Sum assured, Ombudsman, etc. Also learned how to approach a stranger during the survey.
FINDINGS Based on the survey, it was found that more than 50% of the people still are not insured. LIC tops the list when it comes to brand recall. Most of the people prefer policies for short term i.e for 10-15 years only. 30
Many people believe that policies helps to save tax but majority of the policyholders perceive it as a tool to avoid uncertainty in the future. More than 50% had bought the policies from life advisor’s rather than approaching directly to the company. Although there are plans for different age groups of the society but majority of people prefer buying insurance at any age. Insurance also gives advantage to grow your money at a rate greater than FD’s and other securities so people prefer investing in money back policies. Last but not the least is that the level of satisfaction is quite good among the policyholders
SUGGESTIONS As LIC is still the most recalled brand among the masses so more ment needs to be done via television, radio, hoardings, CSR activites, promotional events etc.
More than 50% of the market is untapped so networking via life advisors, corporate firms, other agencies should be done to tap the untapped market.
Group insurance should be provided to schools. colleges. societies & different organizations .
As majority of the population lives in rural areas so they should be targeted simple and affordable plans for them.
Life Advisor are the one which brings majority of the business for the company. So more and more advisors should be recruited and paid good commission for their work. 31
In today’s corporate world customer satisfaction is the key element to earn profit and run the business. So the best service should be given before and after the commencement of the policy.
Better service quality should include-issuing policy on time, providing claims on time, proper communication via mail or courier on timely basis to aware customer about the policy status.
CONCLUSION During the survey, it has been found that people have great awareness about various companies but a lot more has to be done, especially by smaller companies like Kotak Life Insurance to establish their market presence.
People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money.
People in general have been influenced by the marketing activities of insurance companies. A high penetration of print, radio and TV ad campaigns over the years is beginning to have its impact now.
Another important trend was in of people viewing insurance as a tax saving and investment instrument as much as protective one.
32
The general satisfaction levels among public with regards to policy and agents still requires improvement. Here lies the opportunity for a relatively new comer like Kotak Life Insurance. LIC has never been known for prompt service or customer oriented methods but Kotak Life Insurance can build its reputation based on these factors.
ANNEXURE QUESTIONNAIRE Respondent’s Profile (Optional): •
NAME:
•
AGE:
•
GENDER:
•
EDUCATIONAL QUALIFICATION:
•
PROFESSION:
•
ANNUAL HOUSEHOLD INCOME (<2 lakhs,
(Business,
Professional, Service,
2-5 lakhs,
5-10 lakhs,
Q 1) Do you have any life insurance policy? a) YES
b) NO
33
Any Other)
>10 lakhs)
Q 2) Are you aware about the Life Insurance products or will prefer to purchase the Life Insurance products of (mark √): • LIC •
ICICI Prudential Life Insurance
•
HDFC Standard Life Insurance
•
SBI Life Insurance
•
Kotak Life Insurance
•
TATA AIG Life Insurance
•
Reliance Life Insurance
Q3) Which company’s insurance policy do you have? ___________________________________________________________________ Q4) Term of your insurance policy? a) < 5 years
b) 5 – 10 years
c) 10 – 20 years
d)anyother_______________
Q5) What do you think are the benefits of Life Insurance? a) Covers future uncertainty b) Tax Savings c) Investments d) Comprehensive investment and risk coverage instrument Q6) Which feature of Life Insurance policy will you consider while buying? a) Money Back Guarantee b) Larger Risk Coverage c) Low d) Company’s Credibility e) Easy Access to Agents Q7) How have you bought / would buy a Life Insurance policy? a) Customer approaching insurance company / agent b) Insurance company / agent approaching the customer Q8) Are you satisfied with your Life Insurance policy? a) Highly Satisfied 34
b) Satisfied
c) Not So Satisfied
d) Not Responding
Q9) According to you, what is the right age to buy insurance? a) < 25 years c) 35- 45 years e) Anytime
b) 25 – 35 years d) > 45 years
THANK YOU
BIBLIOGRAPHY IC-33 Life Insurance Kotak Life Insurance Brochures Research Methodology – C.R. Kothari
WEBLIOGRAPHY www.kotaklifeinsurance.com www.kotak.com www.google.com www.lifeinsuranceindia.com
35
www.idoub.com www.irda.com
36
“CONSUMERS BUYING BEHAVIOUR” FOR
KOTAK LIFE INSURANCE LTD. SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE MMS COURSE (SEM-2) OF MUMBAI UNIVERSITY
SUBMITTED BY RAJESH SATPUTE
COMPANY GUIDE RAMESH VAISHNAV
COLLEGE GUIDE SWATI MUKHI
DR. G.D POL FOUNDATIONS YMT COLLEGE OF MANAGEMENT, INSTITUTIONAL AREA, KHARGHAR, NAVI MUMBAI – 410210. MUMBAI UNIVERSITY: 2009-11
PROJECT REPORT ON
“CONSUMERS BUYING BEHAVIOUR” FOR
KOTAK LIFE INSURANCE LTD. SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE MMS COURSE (SEM-2) OF MUMBAI UNIVERSITY
SUBMITTED BY RAJESH SATPUTE
COMPANY GUIDE
COLLEGE GUIDE
RAMESH VAISHNAV
SWATI MUKHI
DR. G.D POL FOUNDATIONS YMT COLLEGE OF MANAGEMENT, INSTITUTIONAL AREA, KHARGHAR, NAVI MUMBAI – 410210. MUMBAI UNIVERSITY: 2009-11 2
CERTIFICATE BY COMPANY
3
YMT COLLEGE OF MANAGEMENT [d to Mumbai University]
CERTIFICATE This is to certify that Mr. Rajesh Raghunath Satpute of YMT college of Management has successfully completed the project work titled “A STUDY ON CONSUMERS BUYING BEHAVIOUR” in partial fulfillment of requirement for the completion of MMS course as prescribed by Mumbai University. This project is the record of the authentic work carried out by him under my guidance during the period 20th May, 2010 to 10th July, 2010.
Prof. Swati Mukhi
Dr. C. Babu
Faculty Guide
Director YMT College
PLACE: Navi Mumbai DATE:
4
DECLARATION I hereby declare that all the information contained in the project entitled “A STUDY ON CONSUMERS BUYING BEHAVIOUR” (Conducted on behalf of ‘KOTAK LIFE INSURANCE LTD, THANE) is true to the best of my knowledge.
[RAJESH SATPUTE]
5
ACKNOWLEDGEMENT In preparation of this report by me, I feel great pleasure because it gives me extensive practical knowledge about the corporate world. I got an idea about Indian Life Insurance Industry by this project. I express my deep sense of gratitude to my Company Guide Mr. Pramod Salve (ABM) and Mr. Ramesh Vaishnav (SM) for their valuable guidance during my project work. I would also like to thank all staff of Kotak Life Insurance,Thane who guided me directly or indirectly throughout my training project. I am thankful to my faculty guide Prof. Ms. Swati Mukhi and Prof. Mr. Jayant Banerjee for valuable inspiration and guidance provided me throughout the course of this project. At last I would like to extend my deep sense of gratitude to my friends and colleagues for their in my project work
6
EXECUTIVE SUMMARY
My summer internship helped me a lot to get the feel about the real corporate world. As a project trainee the first task given to me was to understand the basic behavior of the consumer in order to manipulate the market according to our target competition. For this I developed a questionnaire and I did my survey in MUMBAI (SION) city. This training also helped me alot in understanding the process of building effective marketing channels for life insurance products by establishing network of life insurance advisors and also how the life insurance business is run. The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents/advisors or agency holders of the company. If a company like KOTAK LIFE INSURANCE, ICICI PRUDENTIAL, RELIANCE LIFE INSURANCE, TATA AIG, MAX etc has adequate agents in the market, they can capture big market as compared to the other companies.
7
TABLE OF CONTENT
S.No. 1.
Topic
Page no.
INTRODUCTION-
8
•
Company Profile
•
Company Mission & Vision
•
Organization Chart
•
Management
2.
LITERATURE REVIEW
15
3.
PROJECT OBJECTIVE & SCOPE
21
4.
RESEARCH METHODOLOGY
22
•
Sampling Design
•
Data Collection
5.
DATA ANALYSIS
24
6.
FINDING
28
7.
SUGGESTIONS
29
8.
CONCLUSION
30
9.
ANNEXURE
31
10.
BIBLIOGRAPHY
33
11.
WEBLIOGRAPHY
33
8
INTRODUCTION COMPANY PROFILE Kotak Group was established in 1985.Kotak Mahindra Bank is the parent company of the group. Kotak group is one of the leading organization which provides financial services to individual as well as corporates. It serves the nation by its diverse business in financial sectors such as bank, securities, mutual funds, car finance, home loans, banking investments, private equity, reality funds. Kotak Group entered into the life insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a t venture between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old Mutual plc is a world-Class international financial services company. It was established in South Africa before 160 years. OLD MUTUAL is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 6 million life insurance policyholders and employs over 20,000 South Africans in its local operations. In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The company’s US Life business recorded sales of $10 billion at the end of 2009. The company is listed on the London Stock. It is one of the company in the fortune 500 of the world.
9
MISSION “At Kotak Life Insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.”
VISION & VALUES ℘
Our Vision:Kotak Life Insurance has a deep rooted commitment to improve the quality of life of
its customers, employees and stakeholders. We aim at improving the long term value in our relationship by continuous innovation and improvements. We do this by our three-prong effort which strives to make Kotak Life Insurance a corporate with values. Increase Customer Value: Kotak Life Insurance has gone to the heart of its customer's requirements and developed products which are unique and serve the customer needs perfectly. We built a relationship of mutual trust and benefit to serve the Indian customer. At Kotak Life Insurance the customer always comes first. Cohesive Work Environment: We form long-term partnership with our employees by offering them an invigorating work experience. We not only demand loyalty, sincerity and values but also give it back in equal measures. Kotak Life Insurance will like to offer its employees space to grow, innovate and build a long-term career. Work with Honor: Kotak Life Insurance delivers everyday services in the marketplace with the high sense of duty and commitment. Our employees strive to build the long-term value for all those come in with Kotak Life Insurance. Our consumers, distributors, employees, shareholders and the nation have our commitment that we will uphold the values of trust, integrity and a Sense of Honor in every thought, act and deed in order to positively contribute to individual, society and nation growth. 10
℘
Our values:Every member of the Kotak Group team is committed to 5 core values: Integrity,
Customer First, Boundary less, Ownership, and ion. These values shine forth in all we do, and have become the keystones of our success
ORGANISATION CHART
MANAGEMENT 11
We at Kotak Life Insurance work as a team and have a flat management structure. Our top management has many years of experience which has helped guide the company into a position of leadership.
12
KOTAK MAHINDRA
OLD MUTAL PLC
BANK ( 74% )
KOTAK LIFE INSURANCE
( 26% )
13
( 100% )
EXISTING COMPETITORS
14
POLICIES BY KOTAK 15
Kotak Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Protection Plan
Savings & Investments
Helping you to grow and protect
Manage today for a better
your wealth.
tomorrow.
Retirement
Child
The road to retirement, Make it
Plan a good future for your
easy
child.
Protection Plan: •
Kotak Loan Protection Plan
•
Kotak Term/Preferred Plan
•
Kotak Eternal Life Plan
Savings & Investments: •
Kotak Safe Investment Plan
•
Kotak Capital Multiplier Plan
•
Kotak Easy Growth Plan
•
Kotak Endowment Plan
•
Kotak Money Back Plan
•
Kotak Sukhi Jeevan Plan
•
Kotak return Plan
Retirement & Child Plans: •
Kotak Guaranteed Pension Builder
•
Kotak Second Innings Plan
•
Kotak Headstart Child Plan
•
Kotak Child Advantage Plan
LITERATURE REVIEW 16
Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's s are current. With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management –which is the need to mange uncertainty on of exposure to loss, injury, disadvantage or destruction. The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefit from it. The benefit may be an income or in some other form.
Classification of insurance: 1) Life insurance. 2) Non-life (general) insurance.
1) Life insurance:Life insurance can be defined as “life insurance provides a sum of money if the person who is insured dies while the policy is in effect”. In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870. The life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened
17
the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%.
Benefits of life insurance: ℘
Life insurance encourages saving and forces thrift.
℘
It is superior to a traditional savings vehicle.
℘
It helps to achieve the purpose of life assured.
℘
It can be enchased and facilitates quick borrowing.
℘
It provides valuable tax relief.
Fundamental principles of life insurance contract:1) Principle of almost good faith: “A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being proposed whether requested or not”. 2) Principle of insurable interest: “Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person”.
2) Non-life (general) Insurance:Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907. There emerged many a player on the Indian scene thereafter. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.
History of life insurance business in India
18
•
1850
Non life insurance debuts with triton insurance company. 1870 Bombay
mutual life assurance society is the first Indian owned life insurer •
1912
The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business. •
1928
The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses. •
1938
Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public. •
1956
245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: •
1907
The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business. •
1957
General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices. •
1968
The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up. •
1972
The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies’ viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. •
1993
Malhotra Committee, headed by former Finance Secretary and RBI Governor
R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently 19
underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms” In 1994, the committee submitted the report and some of the key recommendations included. •
1997
Insurance regulator IRDA set up
•
2000
IRDA starts giving licenses to private insurers: Kotak Life Insurance, ICICI
prudential and HDFC Standard Life insurance first private insurers to sell a policy •
2001
Royal Sundaram Alliance first non life insurer to sell a policy 2002
Banks
allowed selling insurance plans.
The Insurance Regulatory and Development Authority (IRDA) The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies. But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation. The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business). The act extends to the whole of India and will come into force on such date as the Central Government may, by notification in the Official Gazette specify. Different dates may be appointed for different provisions of this Act.
20
A new definition of "Indian Insurance Company" has been inserted. "Indian insurance company" means any insurer being a company (a)
Which
is
formed
and
ed
under
the
Companies
Act,
1956
(b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six percent, Paid up capital in such Indian insurance company (c) Whose sole purpose is to carry on life insurance business, general insurance business or re-insurance business?
WORKING OF LIFE INSURANCE INDUSTRY Profit = Earned + Investment Income – Incurred Loss – Underwriting expenses Insurers make money in two ways: 1. Through Underwriting, the processes by which insurers select the risks to insure and decide how much in s to charge for accepting those risks, and 2. By investing the s they collect from insured. •
Revenue =
•
Expenses = (Sum of Claims + Commission payable on procurement of business + Operating expenses)
•
Operating Surplus = (Revenue – Expenses) Net investment income includes income from trading in and holding stock market
securities including government securities, special deposits with the central government, loans to several public utilities and service providers in state government. Insurance collected is converted in a pool of fund then divided in to four expenses: •
To pay the expenses of the management
•
To pay agency commission
•
To pay for the claims
•
Surplus money will be invested in govt. securities
21
BASIC POLICIES •
Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy.
•
Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive.
•
Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible cost.
•
Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.
•
Whole life insurance policies: This type of policy runs as long as the policyholder is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder.
•
t life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but t life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.
•
Pension plan: a pension plan or annuity is an investment over a certain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period.
•
Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as well as return on paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).
22
OBJECTIVES: Proper understanding & analysis of life insurance industry.
To undergo IRDA’s training for becoming a life advisor
To conduct market surveys on a sample selected from the entire population and study the consumers buying behavior.
SCOPE: As large insurance market is still untapped so based on the survey the potential of the Indian market can be evaluated.
New distribution channel and marketing strategies can be evaluated based on the awareness among the masses regarding Kotak Life Insurance.
Life advisor license to be used part time basis to generate revenue for the company & income for self
23
RESEARCH METHODOLOGY Research always starts with a question or a problem. Its purpose is to question through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is the function which links the consumer, customer and public to the marketer through informationinformation used to identify and define marketing opportunities and problems generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing performance and improve understanding of market as a process. The data for this research project has been collected through self iration. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of questions has been used.
SAMPLING DESIGN Since it is not possible to study whole population, it is necessary to obtain representative samples from the population to understand its characteristics.
Sampling Area: Sion (Mumbai)
Sampling Unit: Individuals respondents for studying consumer buying behavior selected randomly from different parts of Sion locality of Mumbai
Sampling technique: Random sampling
Sample size: 100 respondents through different parts of Sion locality
Research instrument: Structured Questionnaire
method: Direct Interview
DATA COLLECTION There are two types of data collection method use in my project report. –
Primary data
–
Secondary data.
24
For my project, I decided on primary data collection method for observing the working of company and approaching customers directly in the field with the help of questionnaire prepared. I decided on Secondary data collection method by referring to various websites, books, magazines, journals and daily newspapers for collecting information regarding project under study.
LIMITATIONS Some of the difficulties and limitations faced during my training are as follows:
Lack of awareness among the people – This is the biggest limitation
found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life.
Perception of the people towards Insurance sector – People still
consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year.
Insurance does not give good returns – Still today people think that
Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% returns. Nowadays most of the modern Unit Linked Insurance Plans gives returns which are many times more than that of bank Fixed deposits, National saving certificate, and PPF.
Lack of awareness about the earning opportunity in the Insurance
sector – People still today are not aware about the earning opportunity that the Insurance sector gives. Companies in order to beat the competition and to increase their Insurance Advisors and increase their reach to the customers are giving very high commission but people are not aware of that.
Increased competition – Today the competition in the Insurance sector
has became very stiff. Currently there are more than 20 Life Insurance companies working in India. Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created 25
a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very very difficult.
DATA ANALYSIS
Figure 1 shows that the Indian market has lot of potential for the life insurance industry as more than 50% are still not insured.
26
Figure 2 clearly explains that LIC is still the most recalled brand in the mind of the Indian consumers.
Figure 3 shows that people are willing to buy policies for 10-20 years. This is due to the fact that many wants insurance to be a investment tool.
27
Figure 4 makes it clear that people prefer insurance as a comprehensive investment and risk coverage
Figure 5 says that people wants larger risk coverage as well as they prefer money back gurantee
28
Figure 6 makes it clear that agents & life advisors are the main source for company to bring business.
Figure 7 states the percentage of policy holders satisfaction level to their company. Many are not satisfied because of service after sales or during claims.
29
Figure 8 states that majority of people don’t consider their age while buying an insurance policy. These shows that people don’t plan their policies they just buy at whatever age.
OTHER LEARNINGS Attended three day special workshop for life advisor conducted by the Kotak Life Insurance, Thane. Gain basic knowledge about various Kotak life plans. Learned about arranging, approaching and closing an appointment with the clients. Also learned many insurance jargon such as DAB(Double accident benefit), Riders, Sum assured, Ombudsman, etc. Also learned how to approach a stranger during the survey.
FINDINGS Based on the survey, it was found that more than 50% of the people still are not insured. LIC tops the list when it comes to brand recall. Most of the people prefer policies for short term i.e for 10-15 years only. 30
Many people believe that policies helps to save tax but majority of the policyholders perceive it as a tool to avoid uncertainty in the future. More than 50% had bought the policies from life advisor’s rather than approaching directly to the company. Although there are plans for different age groups of the society but majority of people prefer buying insurance at any age. Insurance also gives advantage to grow your money at a rate greater than FD’s and other securities so people prefer investing in money back policies. Last but not the least is that the level of satisfaction is quite good among the policyholders
SUGGESTIONS As LIC is still the most recalled brand among the masses so more ment needs to be done via television, radio, hoardings, CSR activites, promotional events etc.
More than 50% of the market is untapped so networking via life advisors, corporate firms, other agencies should be done to tap the untapped market.
Group insurance should be provided to schools. colleges. societies & different organizations .
As majority of the population lives in rural areas so they should be targeted simple and affordable plans for them.
Life Advisor are the one which brings majority of the business for the company. So more and more advisors should be recruited and paid good commission for their work. 31
In today’s corporate world customer satisfaction is the key element to earn profit and run the business. So the best service should be given before and after the commencement of the policy.
Better service quality should include-issuing policy on time, providing claims on time, proper communication via mail or courier on timely basis to aware customer about the policy status.
CONCLUSION During the survey, it has been found that people have great awareness about various companies but a lot more has to be done, especially by smaller companies like Kotak Life Insurance to establish their market presence.
People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money.
People in general have been influenced by the marketing activities of insurance companies. A high penetration of print, radio and TV ad campaigns over the years is beginning to have its impact now.
Another important trend was in of people viewing insurance as a tax saving and investment instrument as much as protective one.
32
The general satisfaction levels among public with regards to policy and agents still requires improvement. Here lies the opportunity for a relatively new comer like Kotak Life Insurance. LIC has never been known for prompt service or customer oriented methods but Kotak Life Insurance can build its reputation based on these factors.
ANNEXURE QUESTIONNAIRE Respondent’s Profile (Optional): •
NAME:
•
AGE:
•
GENDER:
•
EDUCATIONAL QUALIFICATION:
•
PROFESSION:
•
ANNUAL HOUSEHOLD INCOME (<2 lakhs,
(Business,
Professional, Service,
2-5 lakhs,
5-10 lakhs,
Q 1) Do you have any life insurance policy? a) YES
b) NO
33
Any Other)
>10 lakhs)
Q 2) Are you aware about the Life Insurance products or will prefer to purchase the Life Insurance products of (mark √): • LIC •
ICICI Prudential Life Insurance
•
HDFC Standard Life Insurance
•
SBI Life Insurance
•
Kotak Life Insurance
•
TATA AIG Life Insurance
•
Reliance Life Insurance
Q3) Which company’s insurance policy do you have? ___________________________________________________________________ Q4) Term of your insurance policy? a) < 5 years
b) 5 – 10 years
c) 10 – 20 years
d)anyother_______________
Q5) What do you think are the benefits of Life Insurance? a) Covers future uncertainty b) Tax Savings c) Investments d) Comprehensive investment and risk coverage instrument Q6) Which feature of Life Insurance policy will you consider while buying? a) Money Back Guarantee b) Larger Risk Coverage c) Low d) Company’s Credibility e) Easy Access to Agents Q7) How have you bought / would buy a Life Insurance policy? a) Customer approaching insurance company / agent b) Insurance company / agent approaching the customer Q8) Are you satisfied with your Life Insurance policy? a) Highly Satisfied 34
b) Satisfied
c) Not So Satisfied
d) Not Responding
Q9) According to you, what is the right age to buy insurance? a) < 25 years c) 35- 45 years e) Anytime
b) 25 – 35 years d) > 45 years
THANK YOU
BIBLIOGRAPHY IC-33 Life Insurance Kotak Life Insurance Brochures Research Methodology – C.R. Kothari
WEBLIOGRAPHY www.kotaklifeinsurance.com www.kotak.com www.google.com www.lifeinsuranceindia.com
35
www.idoub.com www.irda.com
36
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