REPORT ON

A COMPARATIVE STUDY

ON

“LEVEL OF CUSTOMER PERCEPTION TOWARDS LIFE INSURANCE

COMPANY”

Report Submitted by:

DEBASISH KANUNGO.
MBA 4TH TRIMESTER
REGISTRATION NO.0906205027
(2009-2011)

Submitted To:
Mrs. Archana Mohanty
FACULTY MEMBER
B.I.E.T. – BHADRAK.

DECLARATION
 I DEBASISH KANUNGO pursuing Master of Business
Administration (2009-11) from BHADRAK INSTITUTE OF ENGINEERING
& TECHNOLOGY under BIJU PATNAIK UNIVERSITY OF TECHNOLOGY
bearing the University, Registration No. 0906205027 undertaking the
Summer Internship Report, topic entitled “Level of Customer Perception
towards different Life Insurance Company” hereby declare that this is
the original work of researcher and never been submitted anywhere else or
for any other purpose.

The information given above is true to the best of any

knowledge and belief.

Date: Debasish Kanungo.

Place: Bhadrak

ACKNOWLEDGEMENT
 I do here by express my sincere thanks to Mrs. Prasanna
Kumar Jena ,Principal, B.I.E.T.(M.B.A.), Bhadrak, for providing me this
opportunity to carry my project under the topic.

I am indebted to my mentor, Mrs. Archana Mohanty faculty member

for his valuable guidance and unconditional co-operation to complete this
project report.

I also express my wholehearted thanks and obligations to all the staff

members of BHADRAK INSTITUTE OF ENGINEERING &
TECHNOLOGY, Bhadrak, without whose guidance and assistance this
project report may not have, came into existence at all.

At last, but not the least, I am thankful to my friends.

Date: Debasish Kanungo

Place: Bhadrak

GUIDE CERTIFICATE
 This is to certify that DEBASISH KANUNGO continuing M.B.A. in BHADRAK
INSTITUTE OF ENGINEERING & TECHNOLOGY, BHADRAK under B.P.U.T., bearing
Registration No.0906205027 of the batch (2009-11) successfully accomplished the Summer

Internship Project on the topic entitled “ LEVEL OF CUSTOMER PERCEPTION

TOWARDS LIFE INSURANCE COMPANY “ under my super vision and
guidance. Debasish has put his every effort to extract some thing new through this management
research on the above said topic. To my knowledge and believe the research results are new
and has not been submitted anywhere else rather for the sole purpose of SIP, B.I.E.T.,
Bhadrak .

I wish every success and achievement through out his life and academic endeavour.

Date Prof. Mrs. Archana Mohanty.

Place: Bhubaneswar Faculty Member, B.I.E.T.,Bhadrak.

 CONTENTS
TABLE OF CONTENT:-
1. Acknowledgements

2. Introduction

a) Need for study

b) Industrial Profile

c) Company profile

3. Objective

4. Methodology

a) Data Collection

b) Sample Size

c) Sampling Method

d) Data Interpretation

5. Limitation

6. Data Analysis

7. Finding & Suggestion

8. Conclusion

9. Annexure

a) Questionnaire

b) Bibliography
INTRODUCTION

NEED FOR STUDY:

Customer perceptions are dynamic. First of all, with the developing

relationship between customer and company, his perceptions of the
company and its products or services will change. The more experience the
customer accumulates, the more his perceptions will shift from fact-based
judgments to a more general meaning the whole relationship gains for him.
Over time, he puts a stronger focus on the consequence of the product or
service consumption. Moreover, if the customers’ circumstances change,
their needs and preferences often change too.

Customer perception is an important component of our relationship with our

customers. Given that 90% plus of our orders at some point involve the
phone, how we handle the telephone is essential to creating a perception
for our customer that aligns with a company’s mission of service.

We know from talking to clients that often they feel that they are bothering
us or have a concern that they might be overloading us. It is curious to
know that sometimes these are our best clients that have this concern.
Therefore, anything that might reinforce this is something we want to avoid
(you do not need to send your work to other vendors even though you have
given us a lot of work already, we can handle it). One possible response to
“Are you busy?” is to say, “We are busy, but never too busy to help you -
what can I do for you?” or words to that effect. They are the customers.
They do not want to hear about our situation they want to talk about what
we can do for them.

INDUSTRY PROFILE :-

Brief History of the Insurance Sector in India

Insurance sector in India is one of the booming sectors of the economy and
is growing at the rate of 15-20 per cent annum. Together with banking
services, it contributes to about 7 per cent to the country's GDP. Insurance
is a federal subject in India and Insurance industry in India is governed by
Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General
Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts.

The origin of life insurance in India can be traced back to 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. It was
conceived as a means to provide for English Widows. In those days a
higher premium was charged for Indian lives than the non-Indian lives as
Indian lives were considered riskier for coverage. The Bombay Mutual Life
Insurance Society that started its business in 1870 was the first company to
charge same premium for both Indian and non-Indian lives. In 1912,
insurance regulation formally began with the passing of Life Insurance
Companies Act and the Provident Fund Act.

By 1938, there were 176 insurance companies in India. But a number of

frauds during 1920s and 1930s tainted the image of insurance industry in
India. In 1938, the first comprehensive legislation regarding insurance was
introduced with the passing of Insurance Act of 1938 that provided strict
State Control over insurance business.

Insurance sector in India grew at a faster pace after independence. In

1956, Government of India brought together 245 Indian and foreign
insurers and provident societies under one nationalized monopoly
corporation and formed Life Insurance Corporation (LIC) by an Act of
Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore.

The (non-life) insurance business/general insurance remained with the

private sector till 1972. There were 107 private companies involved in the
business of general operations and their operations were restricted to
organized trade and industry in large cities. The General Insurance
Business (Nationalization) Act, 1972 nationalized the general insurance
business in India with effect from January 1, 1973. The 107 private
insurance companies were amalgamated and grouped into four companies:
National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company. These were
subsidiaries of the General Insurance Company (GIC).

In 1993, the first step towards insurance sector reforms was initiated with
the formation of Malhotra Committee, headed by former Finance Secretary
and RBI Governor R.N. Malhotra. The committee was formed to evaluate
the Indian insurance industry and recommend its future direction with the
objective of complementing the reforms initiated in the financial sector.

Key Recommendations of Malhotra Committee

Structure
 Government stake in the insurance Companies to be brought down to
50%.
 Government should take over the holdings of GIC and its subsidiaries
so that these subsidiaries can act as independent corporations.

 All the insurance companies should be given greater freedom to

operate.

Competition
 Private Companies with a minimum paid up capital of Rs.1billion
should be allowed to enter the industry.
 No Company should deal in both Life and General Insurance through
a single Entity.

 Foreign companies may be allowed to enter the industry in

collaboration with the domestic companies.

 Postal Life Insurance should be allowed to operate in the rural

market.

 Only one State Level Life Insurance Company should be allowed to

operate in each state.

Regulatory Body
 The Insurance Act should be changed.
 An Insurance Regulatory body should be set up.

 Controller of Insurance should be made independent.

Investments
 Mandatory Investments of LIC Life Fund in government securities to
be reduced from 75% to 50%.
 GIC and its subsidiaries are not to hold more than 5% in any
company.

Customer Service
 LIC should pay interest on delays in payments beyond 30 days
 Insurance companies must be encouraged to set up unit linked
pension plans.

 Computerization of operations and updating of technology to be

carried out in the insurance industry.

Malhotra Committee also proposed setting up an independent regulatory

body - The Insurance Regulatory and Development Authority (IRDA) to
provide greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with
economic motives.

Insurance sector in India was liberalized in March 2000 with the passage of
the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all
entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership. There is a 26
percent equity cap for foreign partners in an insurance company. There is a
proposal to increase this limit to 49 percent. The opening up of the
insurance sector has led to rapid growth of the sector. Presently, there are
16 life insurance companies and 15 non-life insurance companies in the
market. The potential for growth of insurance industry in India is immense
as nearly 80 per cent of Indian population is without life insurance cover
while health insurance and non-life insurance continues to be well below
international standards.

Some of the important milestones in the life insurance business in

India are:

185o – 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 company’s 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.
COMPANY PROFILE :-

HDFC Standard Life Insurance and Birla Sun Life Insurance Company
Profiles

ABOUT BIRLA SUN LIFE INSURANCE COMPANY LIMITED:

Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance
Solutions in India
Within 4 years of its launch, BSLI has cemented its position as a leading
player in the Private Life Insurance Industry.

There has been focus on Investment Linked Insurance Products, supported

with protection products to maintain leadership in product innovation.

Multi Distribution Channels- Direct Sales Force, Alternate Channels and

Group offering convenient channels of purchase to customers
Web-enabled IT systems for superior customer services
First to have issued policies over the Internet
Corporate governance and a high degree of transparency in all business
practices and procedures
First to have an operational Business Continuity Plan
Strong fundamentals based on the Aditya Birla group's local insight and
Sun Life financials global expertise
Vision
To create long term value along with market leadership
Mission
To help people mitigate risks of life, accident, health and money at all
stages and under all circumstances

Enhance the financial future of our customers, including enterprises.

Values

Integrity
Commitment
Passion
Seamlessness
Speed

HDFC STANDARD LIFE INSURANCE COMPANY PROFILE

HDFC standard life insurance company ltd. is one of India’s

leading private life insurance companies, which offers a range of individual
and group insurance solutions. it is a joint venture between housing
development finance corporation limited (HDFC ltd.), India’s leading
housing finance institution and one of the subsidiaries of standard life,
leading providers of financial services in the united kingdom. Both the
promoters are well known for their ethical dealings and financial strength
and are thus committed to being a long-term player in the life insurance
industry – all-important factors to consider when choosing your insurer.

HDFC Limited.

 In Financial Year 2007-2008 its assets under management crossed

Rs. 1,20,000, Cr.
  As at March 31, 2008 outstanding deposits stood at Rs. 20,000
crores. The depositor base now stands at around 3.2 million
depositors.

 Rated ‘AAA’ by CRISIL and ICRA for the 14th consecutive year

 Stable and experienced management

 High service standards

Standard Life Group (Standard Life and its subsidiaries)

 The Standard Life group has been looking after the financial needs of
customers for over 180 years
 It currently has a customer base of around 7 million people who rely
on the company for their insurance, pension, investment, banking
and health-care needs

 Its investment manager currently administers £125 billion in assets

 It is a leading pensions provider in the UK, and is rated by Standard &

Poor's as 'strong' with a rating of A+ and as 'good' with a rating of
A1 by Moody's

Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and
2006 at the Money Marketing Awards, and it was voted a 5 star life and
pension’s provider at the Financial Adviser Service Awards for the last 10
years running. The '5 Star' accolade has also been awarded to Standard
Life Investments for the last 10 years, and to Standard Life Bank since its
inception in 1998. Standard Life Bank was awarded the 'Best Flexible
Mortgage Lender' at the Mortgage Magazine Awards in 2008

OBJECTIVES

The main of the present study of is accomplishing the following objective.

 Proper understanding and analysis of life insurance industry.

 To know about brand awareness of HDFC Standard Life Insurance,
Birla Sun Life Insurance and customer’s preference about HDFC
Standard Life Insurance and Birla Sun Life Insurance.
 Conduct market survey on a sample selected from the entire
population and derived opinion on the research.
 According the market survey come know about how much potential of
insurance market in our city.
 And base on analysis of the result thus obtained make a report on
that research.
 Study of marketing strategies of HDFC Standard Life Insurance and
Birla Sun Life insurance
 Customer perception about the various life insurance products
available in India.
 To find the right candidate.

METHODOLOGY

Data collection

There are two types of data collection method use in my project work
report.
-Primary data

-Secondary data.

For my project, I decided on primary data collection method for

observing of company and approaching customers directly in the field,
comparing and references to know their interest in business with company
in my project and also make questionnaire for creating on business class
people is BBSR city for company.

I decided on secondary data collection method was used by referring to

various websites, books, magazines, journals and daily newspapers for
collection information regarding project under study .

SAMPLE SIZE: - The sample size is 150

SAMPLING METHOD: - I used simple random sampling to collect the

data.

LIMMITATION

Some of the difficulties and limitations faced by me during my survey are as

follows:

 Lack of awareness among the people

 Perception of the people towards Insurance sector
 Increased competition
 Lack of awareness about the earning opportunity in the Insurance
sector
\
DATA ANALYSIS

1.Age wise classification:

Age No Of Members

18 – 25 11

26 – 30 22

31 – 45 44

46 – to above 23

No Of Members

50
No Of Customers

40
30
No Of Members
20
10
0
18 – 26 – 31 – 46 – to
25 30 45 above
year

b.Gender wise classification:

 Gender No of Member

Male 66

Female 34

No of Member
No Of Customers

80
60
40 No of Member
20
0
Male Female
year

2. Member Wise classification:

Family member No Of
Member

2–4 40

5–8 48

8 to above 12
 No Of Customers Members

60

40
No Of Member
20

0
2–4 5–8 8 to above
No Of Members

3.Income wise classification:

Income No of
Members

40k – 70k 17

70k – 1 Lake 41

1 Lake to 3 Lakes 28

3 Lacks 14
 No Of Customers Income Wise Classification

50
40
30 No of Members
20
10
0
40k – 70k – 1 Lake 3
70k 1 Lake to 3 Lacks
Lakes
Income (P.A)

Interpretation: - 41% of people have tack insurance and is ranked number

one by that percent of respondent.

4.No of having Insurance:

Insurable Member Uninsurable

members

42% 58%
 No of Having Insurance

No of having
Insurance
Insurable Member

No of having
Insurance
Uninsurable
members

Interpretation: Only 42% people having insurance in Nellore so it is

potential for insurance company to capture to all that market

5.No. Of having Insurance:

Having insurance No of
members

Self 40

Spouse 28

Children 21

Parent 18

All 11
 50
No of Members

40
30
No of members
20
10
0
lf n nt l
se re al
Se ou ild re
Sp Ch Pa

Interpretation: Among that 42% people who having insurance, 6hey have
insurance 40% for self 28% for spouse 21% for children and 18% for their
parents and 11% for all family numbers,
 6.No. Of Having Under/Fully insurable person:

Under insurable Fully insurable

persons person

82% 18%

Fully
insurable
person,
18%
Under insurable
persons
Fully insurable
person
Under
insurable
persons,
82%

Interpretation:

Only 42% people having life insurance but among them82%

of the people have under insurable person and is ranked number once by
that percent of respondent.
7.Market share of different insurance plan:

Insurance plan Market Share

Term plan 39%

Money back Plan 14%

Endowment Plane 15%

Child Plan 8%

Unit Link Plan 24%

Market share of different insurance plan Market

Share

Unit Link
Term plan
Plan, 24% Term plan, Money back Plan
39%
Child Plan, Endowment Plane
8% Child Plan
Endowment Money
Unit Link Plan
Plane, 15% back Plan,
14%

Interpretation: 39% of people have Unit linked Plan and is ranked number
one by that percent of respondent
8.Data give benefits of insurance cover perceived by respondents:

Benefits No. of Respondents Share (%)

Cover future 55 55
uncertainty

Tax deductions 20 20

Future investment 25 25

Total 100 100

55
No. of Respondents

60
50
40
25 No. of
30 20
Respondents
20
10
0
Cover future

investment
deductions
uncertainty

Future
Tax

Interpretation: 55% of the respondents believe that covering future

uncertainty is the biggest benefit of insurance policy

20% & 25% of them believe that other benefits are tax deduction & future
investment
FINDINGS AND SUGGESTIONS

 Almost 80% of respondents have an insurance policy.

 People have more number of life insurance policies as compared to
non life insurance.
 Majority of the respondents preferred/have LIC policy since it was
the only option due to complete government control in insurance
sector.
 Due to increased in consumerism new product is launched every
day. Thus non – life/general insurance business is also going to
have boom period.
 Due to the increasing concern of people towards their health/life the
life insurance business has good prospects.
 According the survey only 42% people are insured in HDFCSLI and
24% Birla Sun Life so remaining other part is potential for insurance
sector
 Among that 42% people who having insurance, 6hey have
insurance 40% for self 28% for spouse 21% for children and 18%
for their parents and 11% for all family numbers, also its very help
full for insurance sector so they should take necessary step for
capture this potential.
 Only 42% people having insurance in HDFC SLI & Birla Sun Life
insurance in that42% these are 82% people are under insured and
other 18% people fully insured according to their income so that is
also plus point for insurance sector to capture the market.
CONCLUSION

I have come to know about the customer perception about the

insurance sector and how it varies with their behaviors’ and cultures
this helps me increase my marketing skills, have more knowledge
about the products and improve my communication skills. I have also
come to know how to talk with different types of customers in different
situations and I am able to solve their queries in a more effective way.

 All the insurance company must advertise more in the market

because not all people know more about life insurance policy.

 Most number of people wants guaranteed returns so company

must focus on this for the customer investment.

 Make insurance policy which can buy any one so we can

insurance them through this type of life insurance policy.
ANNEXURE
QUESTIONNNAIRE

1. How long are you associated with this company?

a) 0 – 4 months b) 4 – 8 months
c) 8-12 months d) 12-16 months
e) above 1year

2. Qualification
a) Non – Graduate b) Graduate c)
Post Graduate
d) Research e) any other (Please specify)
3. Are you employed? (Yes / No)________________________________

4. Do you have insurance policy? (Yes / No) ________________________

5. How did you first hear about our company Names?

a) Television b) Radio c) Newspaper

d) Magazine e) Word-of-mouth f) Internet

g) Other: Please Specify _______________

6. Which of these companies do you like best?

a) HDFC Standard Life Insurance b) Birla Sun Life

Insurance

c) LIC d) ICICI Life

Insurance
7. Which company’s insurance policy you prefer the most? (rank them)

a) HDFC Standard Life Insurance b) Birla Sun Life

Insurance

c) LIC d) ICICI Life

Insurance

8. Which insurance policy do you have?

a) Life b) Non Life

c) Both

9. How many products do you buy in the fast year?

a) 1 b) 2 c) 3
d) 4 above

10. For how many years do you have insurance policy? (please tick)

a) < 5year b) 5 – 10 year

c) 10 – 15 year d) Any other (please specify)

________________________

11. What do you think are the benefit of insurance cover? (Rank them)

a) Cover future uncertainty b) Tax Deduction

c) Future Investment d) Any other (please specify)

________________________

12. You monthly House holds Income?

a) < 10k b) 10k – 20k

c) 20k – 30 k d) 30k – 40k

d) Any other (please specify) _____________________

BIBLIOGRAPHY

In order to obtain more information regarding the present study and to

substantiate it with theoretical proof, the following references were made:-

 Library of College
 Insurance chronicle

Websites visitedd:

 www.google.com
 www.birlasunlife.com
 www.hdfcstandardlifeinsurance.com