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CHAPTER 1
INTRODUCTION
1.1 INSURANCE INDUSTRY
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, in the expectation that, either through the income generated there from or
some other output, some of his needs would be met. However, if the assets get lost
earlier, being destroyed or made non-functional, through an accident or other unfortunate
event, the owner and those deriving benefits there from suffer. Insurance is a mechanism
that helps to reduce such adverse consequences.
1.1.1. Definition of Insurance
A contract of insurance can be defined as a co-operative device to spread the
loss caused by a particular risk over a number of persons who are exposed to it and who
agree to ensure themselves against the risk. Risk is the uncertainty of financial loss.
Every risk involves the loss of one kind or other. Though the risk cannot be averted yet
the loss occurring due to a certain risk can be distributed among the agreed persons.
Life insurance is a written contract between the insured and the insurer,
which provides for the payment of the insured sum on the date of the maturity of the
contract or on the unfortunate death of the insured, whichever occurs earlier.
1
1.1.2 Insurance History
At most 4500 years ago in the ancient land of Babylonia, traders used to bear
risk of the caravan trade by giving loans that had to be latter repaid with interest when
goods arrived safely. In 2100 b c, the code of Hammurabi granted legal status to the
practice, that perhaps was how insurance made its beginning.
LIFE INSURANCE on the other hand has its origin in ancient Rome, where
citizen formed burial clubs that would meet the funeral expenses of its members as well
as help survivors as we know if today owes its existence to 17th century England.
1.1.3 Importance of Insurance
Assets are insured, because they are likely to be destroyed or made non -
functional through an accident occurrence. Such possible occurrences are called Perils.
Fire, floods, breakdowns, lighting, earthquakes, etc., are perils. The damage that these
perils cause to the asset is the risk that the asset is exposed to.
The risk only means that there is a possibility of loss or damage. It may or
may not happen. There has to be an uncertainty about the risk. Insurance is done against
the contingency that it may happen. Insurance is relevant only if there are uncertainties.
If there is no uncertainty about occurrence of an event, it cannot be insured against.
2
1.1.4 Principle of Insurance
People facing common risks come together and make their small
contributions to a common fund. The contribution to be made by each person is
determined on assumption and past experience. The business of insurance done by
insurance companies called Insurers is to bring together persons with common insurance
interests (sharing the same risk) collecting the share or contribution (called premium)
from all of them and paying out compensations (called claims) to those who suffer.
Premium is determined base of various factors like age, amount of cover, period of cover
with some additions made for the expenses of administration.
The insurer is in the position of a trustee as it is managing the common fund
for and on behalf of the community. It has to ensure that nobody is allowed to take undue
advantage of the arrangement. That is to say that the management of the business
requires care to prevent entry onto the group of people whose risks are not of the same
kinds as well as paying claims on losses that are not accidental. The decision to allow
entry is the process of underwriting of risk. Both underwriting and claim settlement have
to done with great care.
1.1.5 Market and Features of Insurance
Insurance market is a mechanism through which life and general insurance
policies are bought and sold through which large parts of losses to individuals and
business community are met. Insurance is thus bought and sold in a market just as a trade
is carried on in material goods.
3
Insurance may be dividing into several separate and distinct branches. It can
be classified according to subject- matter or event insured or by the main classes of
business to their subject matter; it can be dividing into four categories.
1. Insurance of the property of the policyholders like marine insurance to ships, Fire
insurance on Buildings or goods etc.
2. Insurance of the persons, which include all types of Life Insurance as well as
insurance granting benefits for accidental death or disablement.
3. Insurance for the liability of the policyholder where he may be liable at law for
the death.
4. Insurance of the rights financial interest of the policyholders like fidelity
insurance, credit insurance etc.
1.1.6 Life Insurance in India
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360-degree turn witnessed over a
period of almost two centuries. A brief history of the Insurance sector: The business of
life insurance in India in its existing form started in India in the year1818 with the
establishment of the Oriental Life Insurance Company in Calcutta.
With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20
per cent annually and presently is of the order of Rs 450 billion. Together with banking
services, it adds about 7 per cent to the country’s GDP. Gross premium collection is
4
nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of
GDP.
Nearly 80 per cent of Indian population is without life insurance cover, health
insurance and non-life insurance continue to be below international standards. And this
part of the population is also subject to weak social security and pension systems with
hardly any old age income security. This itself is an indicator that growth potential for
the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic
development as it provides long-term funds for infrastructure development and at the
same time strengthens the risk taking ability. It is estimated that over the next ten years
India would require investments of the order of one trillion US dollar. The Insurance
sector, to some extent, can enable investments in infrastructure development to sustain
economic growth of the country. There are two legislations that govern the sector- The
Insurance Act- 1938 and the IRDA Act- 1999.
India is primarily a savings oriented country. Premium payments have been
long regarded as a tax savings option and hence the need to take a Life insurance policy.
The insurance industry witnessed a lot of activity during the year 2004.
Although not many changes took place in terms of the basic structure of the industry, the
industry grew by leaps and bounds. Sales of Unit Linked Insurance Plans (ULIP s) took a
giant leap. To put things in perspective, ULIP sales accounted for a sizable amount of
new business generated .The last few years have been a watershed for assured return
plans.
5
As the insurance sector has developed, there's been a growing acceptance by
most policyholders that the assured return era is a thing of the past. This in fact has also
been one of the reasons why many investors have shifted to market linked plans. Another
positive change has been the increasing level of people buying term plans. This is good
from a policyholder's perspective as a term plan offers a higher sum assured at a minimal
cost. This was not the case till a couple of years ago.
In the private sector 13 life insurance and 6 general insurance companies
have been registered. The opening up of the sector is likely to lead to greater spread and
deepening of insurance in India and this may also include restructuring and revitalizing
of the public sector companies. A host of private Insurance companies operating in both
life and non-life segments have started selling their insurance policies since 2001.
The consumer mega trend in the early years for the Indian consumer will be
marked by major social and economic shifts that will change the way consumers behave.
Both new and existing players must explore new distribution and marketing channels.
The increasing importance of knowledge in the Indian insurance industry is
likely to make employability a critical factor for retention of qualified managerial
manpower in the future. To create such a milieu, insurance companies need to have a
critical mass of management that encourages a knowledge-based culture.
1.1.7 Insurance Regulatory and Development Authority
The mission of IRDA is “To protect the interests of the policyholders, to
regulate, promote and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto.”
6
1.1.8 Life Insurers
S. NoRegistration
NumberDate of Reg. Name Of The Company
1 101 23.0.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000ICIC Prudential Life Insurance Company
Ltd.
4 107 10.01.2001 OM Kotak Mahindra Life Insurance Co. Ltd
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited
8 114 02.08.2001ING VYSA Life Insurance company Private
Limited.
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Ltd
10 117 06.08.2001 MetLife India Insurance Company Pvt Ltd
11 121 03.01.2002 AMP SANMAR Assurance Company Ltd
12 122 14.05.2002 Aviva Life Insurance Co India Pvt Ltd
Source: WWW.IRDA.ORG
7
1.2 COMPANY PROFILE
1.2.1 Vision
To make ICICI Prudential the dominant Life and Pensions player built on
trust by world – class people and service. This they hope to achieve by:
Understanding the needs of customers and offering the superior products and
service.
Leveraging technology to service customers quickly, efficiently and conveniently.
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders.
Providing an enabling environment to foster growth and learning for our
employees.
And above all, building transparency in all their dealings.
The success of the company will be founded in its unflinching commitment
to 5 core values -- integrity, Customer First, Boundary less, Ownership and Passion,.
Each of the values describes what the company stands for, the qualities of people and
the way they work.
1.2.2 Partners
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset
Management Company, which has today emerged as one of the leading mutual funds in
India. The two companies bring together two of the strongest financial service brands
in Asia, known for their professionalism, excellent quality of service and long term
commitment. Riding on the success of this relationship, the two companies joined hands
8
once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to
provide leading –edge life insurance solutions. ICICI bank has 74% stake in the company,
and prudential plc has 26%.
1.2.3 Best Life Insurer Award
Outlook Money: March 15, 2004
Winner: ICICI Prudential
In the short span since the insurance sector was opened up, ICICI prudential
Life Insurance has literally dictated the market’s evolution. Catering to all age and
income segments, the company started out with the traditional insurance policies that
were easy to understand. The idea was to entice customers used to LIC’s style of
functioning.
Soon, ICICI Prudential began exploring new areas. It introduced modern
products, like the market - linked product where returns are linked to the market
performance of the underlying assets.
ICICI Prudential leads in virtually all parameters: size of agent force, number
of policies sold, total sum assured, premium income and productivity of agents. It has set
exacting standards for its range of products, riders offered, quality of information in
promotional material and even in the insurance awareness events organized.
What has been in favour of ICICI Prudential is its range of products in
each segment of life insurance –traditional , unit-linked and single –premium options, be
9
they for retirement plants or child plans, with such a comprehensive bouquet it caters
goals of a customers.
ICICI Prudential also has a strong sales network and tie-ups with banks to
offer banc assurance products. Its supplementary marketing channels contribute close to
30 per cent of its premium income. The company is now reaching out to new and
untapped markets. ICICI Prudential works closely with NGOs and micro-finance
institutions to spread awareness about the concept of insurance in rural areas.
The gap between ICICI Prudential and the second-in-line private insurer is
vast. In fact, this hiatus has led some analysts to wonder if the company isn’t a trifle too
aggressive. But others say this has more to do with the company’s customer-centric focus,
its pan-India presence and superior risk management and investment strategies. ICICI
Prudential is not, however, resting on its laurels. The company will continue to innovate
and set the standards.
10
1.3 ADVISORSHIP
1.3.1 Insurance Agent
An insurance agent is an agent licensed section 42 of the Insurance Act 1938.
He receives payment by way of commission or other remuneration for procuring
insurance business. He is also responsible for business relating to the continuance,
renewal or revival of policies of insurance.
The agent cannot be an employee of an insurance company and the insurance
ACT IRDA and the Indian Contract Act govern his role as an agent.
1.3.2 Types of Agents
Absorbed Agent an insurance agent licensed on or before the date of
notification of the insurance Agents Regulations, 2000, under the provisions of section
42 of the Insurance Act 1938.
Composite Insurance Agent means an insurance agent who holds both life
insurance agency license and general insurance agency license. Corporate Agent could be
a company or a firm.
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1.3.3 Function of the Agent
The primary function of the agent is to procure business for the insurance
company , prior to offering the policy, the agent has to check out on the insurability of
the proposer based on the principles of insurable of the interest and almost god faith.
The relevant information can be:
a) Paying capacity
b) Health and habits
c) Age
Once the insurance contract has been put in to force, the agent is supposed to
ensure continuance of policy through regular payment of renewal premiums. In case of a
claim the agent should help the insured or his family in proper settlement of claims.
1.3.4 Agents Qualification
In order to discharge the above duties to the satisfaction to the consumer, it is
required that a person making an application for a license to act as an insurance agent or
as a composite insurance agent,
a) Is at least 18 years of age as on the date of application.
b) Has not been found to be a person of unsound mind by a Court of competent.
jurisdiction:
c) Has not been found guilty of any kind of criminal conduct. In case of an
offence
d) At least five years should have elapsed since the completion of sentence
Imposed.
12
e) Possesses the minimum educational qualification of a pass in 12th standard or
Equivalent examination conducted by any recognized Board/Institute of
Education.
f) Possesses a Certificate in Insurance salesmanship issued by an Examination
Body or any other institution by the Authority (IRDA) in this behalf.
g) For the purposed of this clause the Authority has presently recognized the
Insurance Institute of India. Mumbai as the examination body.
1.3.5 Appointment of Agents
All insurer or the designated person acting on behalf of the insurer may
appoint a person as an insurance agent. Provided that such agent holds a valid license at
the time of appointment.
1.3.6 Restriction on appointment
All insurance agent who holds a valid certificate of license and who has been
appointed by an insurance company, shall for all intents and purposes, be an Insurance
agent for that insurance company only. A life insurer or his designated person cannot
appoint at personas an insurance agent who has been working as an insurance agent for
another life insurer. A general insurer or his designated person cannot appoint a personas
an insurance agent who has been working as an insurance agent for another general
insurer.
13
1.3.7 Training of Insurance Agent
Every person appointed as an insurance agent the appointed day by an insurer
shall undergo training organized by an independent Institute or by an insurer’s institution,
to be accredited by the Authority, for a minimum period of for weeks once in every three
years. Where a person is a composite insurance agent, such training will be for a period of
six weeks.
1.3.8 Termination of Agency
The licence of any insurance agent including an absorbed agent may be
terminated by the Authority, if such agent suffers, at any time during the currency of the
licence, from any of the said disqualification mentioned is subsection 42 of the Act, s the
case may be.
1.3.9 Issue of duplicate license
An insurance agent shall make an application to the issuing authority through
the designed person for issue of a duplicate license with a fee of rupees fifty.
1.3.10 Return to be submitted to the Authority
Every insurer shall annually or at such shorter periods as may be prescribed
by the Authority, submit a statement to the Authority showing the particulars mentioned
in section 43 of the Act.
14
1.3.11 Power to issue instructions or directions.
The Authority may, from time to time such instructions or directions to the
insurance agents designated persons and the insurers, for the proper conduct of insurance
business and furtherance of the provisions of the Act, and the Insurance Regulatory and
Development Authority Act 1999.
1.3.12 Remuneration to Agents
The only way in which the company remunerates the agent is through
commissions received on sales made. Commission to agents is specified as a percentage
of the premium paid. Agents are entitled to term insurance and gratuity benefits. An agent
will be eligible for gratuity if he has worked continuously for fifteen years or more
without agency termination. IRDA has given the upper limit of remuneration to agents as
40% of premium.
Some companies offer reimbursement of telephone charges and other office
administration expenses to agents. With the de-regulation of the Insurance Industry there
would be a lot of promotional effort by the various companies In light of the above the
following code of conduct needs to be adhered to while advertising> All advertisement
should be:
Decent – a level of decency in visuals and words needs to be adhered to
Preparent with a sense of responsibility towards the consumer and the society.
Conforming to the principles of fair competition – derogatory targeting of
competition is not considered fair.
Honest and truthful – claims made by advertisement, should be delivered to
the customer.
15
Protected from coping by the Copyright Act.
Ethical – advertising should not target sections of the society which may be
unable to take a logical decision.
Moreover the IRDA (Insurance advertisement and disclosure) Regulations
2000 further states the regulations laid down for advertising which need to be adhered by
the Insurance companies and by the agents.
1.3.13 Who can be an Agent?
An Individual
A firm
A company formed under the Companies Act, 1956(I if 1956), and includes a
banking company as defined as clauses (4A) of section 2 of the Act.
1.3.14 Practical Training
Practical training includes orientation, particularly in the area of insurance
sales, service and marketing, through training modules as approved by the authority.
First time applicant
(Life/Non-Life) - 100 hours
Composite - 150 hours
If applicant has following qualifications:
an Associate/Fellow of the Insurance Institute of India, Mumbai,
16
an Associate/Fellow of the Institute of Chartered Accounts of India,
New Delhi;
an Associate/Fellow of the Institute of costs and Works Accountant of
India, Calcutta;
an Associate/Fellow of the Institute of company Secretaries of India,
New Delhi;
a Master of Business Administration of any Institute/University
recognized by any State Government or the Central Government; or
possessing any professional qualification in marketing from any
Institute / University recognized by any State Government or the
central Government-
Life/Non-life – 50 hours
Composite - 70 hours
Renewal of License
Life-Non Life - 25 hours
Composite - 50 hours
1.3.15 Examination
To be conducted by Insurance Institute of India. Mumbai or any other
examination body recognized by the Authority
Maximum 50% marks
Duration of Examination – 7 hrs.
Format of Examination – Objective type with 10% of question as numerical.
17
CHAPTER 2
OBJECTIVES, NEED AND LIMITATIONS
2.1 Objectives
2.1.1 Primary objective
To Analyse the Customers’ Attitude, Preferences and Satisfaction Level
towards Investment in ICICI Prudential Life Insurance Company Ltd, Adyar, Chennai.
2.1.2 Secondary objectives
To understand the general profile and saving pattern of the investor.
To determine the reason for the investment made.
To determine the sector of insurance company preferred by investors
To analyze the factors influencing the investor in investing in insurance.
To analyze the relationship between the various investment avenues.
To determine the satisfaction level of policy holders of ICICI Prudential Life
Insurance Company.
To determine the position of ICICI Prudential Life Insurance Company among
various Life Insurance Companies.
18
2.2 Need For The Study
The last few years have been a watershed for assured return plans. As the
insurance sector has developed, there's been a growing acceptance by most policyholders
that the assured return era is a thing of the past. The private insurance companies are
focusing on the Market Linked Plans.
This study undertaken for ICICI Prudential Life Insurance Company Ltd
aims to analyse the customers’ attitude, preferences and satisfaction level towards
investment in the insurance industry and with special reference to ICICI Prudential Life
Insurance Company Ltd, Adyar, Chennai.
This has been done by preparing the questionnaire which contains questions
put forth to the respondents which would help in analyzing the profile and investing
habits of the investor, factor influencing the investor in investing in insurance and their
attitude and perception investment in insurance companies.
This study would help in determining the future preference of the investors.
All this would help in giving suggestions to ICICI Prudential Life Insurance Company
Ltd, in strengthening their marketing efforts, in tapping private insurance companies’
schemes and expand their business.
19
2.3 Limitations of The Study
The area of study is limited to Adyar, Chennai City only; hence the results may
not be true for other geographical areas.
Validity & Reliability of the data are obtained depends on the responses from the
customer.
Structured questionnaire are base for collecting the data, it may have
disadvantages of not being to probe deep into the respondents thoughts.
The time at the disposal of the researcher is limited.
The size of the sample comparing to the population is very less and hence it will
not represent the whole population.
20
CHAPTER 3
RESEARCH METHODOLOGY
Research is an intensive study in a particular field to achieve at a better
conclusion of a problem. Research Methodology is a systematic way of solving the
problem. The methodologies followed for this study are as follows.
3.1 Research Design
The research design is the basic framework or a plan for a study that guides
the collection of data and analysis of data. In this market survey the design used is used
Descriptive Research Design. It includes surveys and fact-finding enquiries of different
kinds. The major purpose of descriptive research is description of state of affairs, as it
exists at present.
The information are collected from the individuals and analyzed with the
help of different statistical tools, for describing the relationship between various
variables, pertaining to investment in life insurance. Moreover cross table analysis has
been done for processing the data and information is derived to attain the objectives of
the study.
21
3.2 Sampling Design
3.2.1 Population
Since the population of Adyar is large in number, researcher was unable to
collect information from all individuals due to limitation of time. So part of the
population is taken for analyzing and generating the findings, which is applicable for
total market. The Adyar area is mainly divided according to ward wise. Adyar area has
totally 12 wards. From each ward 15 samples were picked on random basics and data
were collected from each sample. But only 10 sample data has been used.
3.2.2 Sampling Technique
Simple Random Sampling Method is used to collect data. The Adyar area
is mainly divided according to ward wise. Adyar area has totally 12 wards. From each
ward 15 samples were picked on random basics and data were collected from each
sample. But only 10 sample data has been used.
3.2.3 Sample Size
The size of the sample is 120, and factors to be considered are time, cost and
effectiveness etc. The study was conducted during the period January 2006.
22
3.2.4 Sample Unit
The respondents of the study are part of population of Adyar, Chennai city.
Each family is considered to be the sampling unit
3.2.5 Data Collection
The collection of data is considered to be one of the most important aspects
in the research methodology. Both primary and secondary data is used in this study in
order to meet the requirements of the purpose.
3.2.5.1 Primary Data
Under this study primary data was collected by using Structured
Questionnaire. The structured questionnaire consists of both open-ended and closed-
ended questions. The primary data has been collected through the questionnaire by means
of personal interview. The questionnaire consists of number of questions printed in a
definite order on a form. The primary data was collected from individuals residing in
Adyar, Chennai City, with the help of questionnaire, which was prepared after getting
inputs from experts and executives in ICICI Prudential.
3.2.5.2 Secondary Data
23
The secondary data are sourced from various Life Insurance Companies
websites, Magazines, Books, Pamphlets, Periodical Surveys and Websites etc.
3.2.6 Tools Used
The collected data were analyzed with the help of Simple Percentage
analysis, Weighted Average Method, Sign Test and Chi- Square Test.
24
CHAPTER 4 - ANALYSIS AND INTERPRETATION
TABLE 4.1 – TABLE SHOWING THE GENERAL PROFILE OF RESPONDENT
GENDERMARTIAL STATUS
AGE INCOME EMPLOYEE PROFESSIONAL BUSINESS OTHERSGRAND TOTAL
26-35 NONE 5 5
MARRIED 36-45 NONE 4 3 7ABOVE
45NONE
2 2
FEMALEMARRIED
TOTAL 4 10 14
18-25 < 1 LAKH 3 3
UNMARRIED NONE 3 3
26-35 < 1 LAKH 3 3
UNMARRIED TOTAL 3 3 3 9
FEMALE TOTAL 3 7 13 23
26-35 < 1 LAKH 2 2
1-5 LAKH 4 4
36-45 1-5 LAKH 8 7 15
MARRIED 5-10 LAKH 2 2ABOVE
451-5 LAKH
2 25-10 LAKH 2 6 7 15
> 10 LAKH 1 1
MALEMARRIED
TOTAL 16 13 12 41
18-25 < 1 LAKH 2 2
5-10 LAKH 3 3
NONE 15 15
UNMARRIED 26-35 < 1 LAKH 5 5
1-5 LAKH 19 2 21
5-10 LAKH 4 1 5
NONE 2 2
36-45 > 10 LAKH 3 3
UNMARRIED TOTAL 26 7 6 17 56
MALE Total 42 20 18 17 97
GRAND TOTAL 45 27 18 30 120
CHART 4.1 - CHART SHOWING THE GENERAL PROFILE OF
RESPONDENTS
25
0
5
10
15
20
25
30
35
40
45
50
GENERAL PROFILE
NO
. OF
RE
SP
ON
DE
NT
S
EMPLOYEE PROFESSIONAL BUSINESS OTHERS
INFERENCE
From the above table and chart it can be viewed that,
Most of the Respondents are Male,
Most of the male respondents are in the age group of 26-35 and unmarried and
Female respondents in the age group of 36-45 and married,
Most of the respondents are working as employees.
TABLE 4.2 – TABLE SHOWING THE PERCENTAGE OF SAVINGS OF
RESPONDENTS
26
S.NoPERCENTAGE OF
SAVINGS
NO OF
RESPONDENTSPERCENTAGE
1 LESS THAN 5% 24 20%
2 5-10 % 56 47%
3 10-15 % 6 5%
4 MORE THAN 15% 0 0%
5 NOT APPLICABLE 34 28%
TOTAL 120 100%
INFERENCE
From the above table it can be viewed that,
47 % of the Respondents do 5-10 % Savings from their Income,
20 % of the Respondents do < 5 % Savings from their Income,
5 % of the Respondents do 10-15 % Savings from their Income,
None of the Respondents do > 15% Savings from their Income and
28 % of the Respondents are coming under the not applicable category.
CHART 4.2 – CHART SHOWING THE PERCENTAGE OF SAVINGS OF
RESPONDENTS
27
20%
47%
5%
0%
28%
LESS THAN 5% 5-10 % 10-15 % MORE THAN15%
NOTAPPLICABLE
PERCENTAGE OF SAVINGS
NO
OF
RE
SPO
ND
EN
TS
IN P
ER
CE
NT
AG
E
TABLE 4.3 – TABLE SHOWING THE REASON FOR INVESTMENT
28
S.No REASON
RESPONDENTS
PREFERENCE TOTAL
PERCENTAGE
OF
RESPONDENTS
PREFERENCE
TOTAL
PERCENTAGE
YES NO YES NO
1 LIFE COVER 35 85 120 29% 71% 100%
2 RETURNS 97 23 120 81% 19% 100%
3CAPITAL
APPRECIATION25 95 120 21% 79% 100%
4 TAX SAVINGS 34 86 120 28% 72% 100%
5 OTHERS 44 76 120 37% 63% 100%
INFERENCE
From the above table it can be viewed that,
81 % of the Respondents says yes for Returns as reason of Investment,
29 % of the Respondents says yes for Life Cover as reason of Investment,
28 % of the Respondents says yes for Tax Savings as reason of Investment,
21 % of the Respondents says yes for Capital Appreciation as reason of
Investment,
37 % of the Respondents says yes for Others as reason of Investment.
CHART 4.3 – CHART SHOWING THE REASON FOR INVESTMENT
29
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
LIFE COVER RETURNS CAPITALAPPRECIATION
TAX SAVINGS OTHERS
REASON FOR INVESTMENT
RE
SPO
ND
EN
TS
IN P
ER
CE
NT
AG
EYES NO
TABLE 4.4 - TABLE SHOWING THE INSURANCE SECTOR PREFERRED BY
THE RESPONDENTS
30
S.No SECTOR NO OF RESPONDENTS PERCENTAGE
1 PUBLIC 95 79%
2 PRIVATE 25 21%
TOTAL 120 100%
INFERENCE
From the above table it can be viewed that,
79 % of the Respondents prefer only Public Sector Insurance Companies,
21 % of the Respondents prefer only Private Sector Insurance Companies.
CHART 4.4 - CHART SHOWING THE INSURANCE SECTOR PREFERRED BY
THE RESPONDENTS
31
PUBLIC79%
PRIVATE21%
TABLE 4.5 - TABLE SHOWING THE NO. OF RESPONDENTS HAVING LIFE
INSURANCE POLICY
32
S.NoLIFE INSURANCE
POLICY
NO OF
RESPONDENTSPERCENTAGE
1 YES 98 82%
2 NO 22 18%
TOTAL 120 100%
INFERENCE
From the above table it can be viewed that,
82 % of the Respondents are having Life Insurance Policy,
18 % of the Respondents are having Life Insurance Policy.
CHART 4.5 - CHART SHOWING THE NO. OF RESPONDENTS HAVING LIFE
INSURANCE POLICY
33
YES82%
NO18%
TABLE 4.6 – TABLE SHOWING THE POLICY HOLDINGS OF THE
RESPONDENTS
34
S.No COMPANY
RESPONDENTS
PREFERENCE TOTAL
PERCENTAGE
OF
RESPONDENTS
PREFERENCE
TOTAL
PERCENTAGE
YES NO YES NO
1 LIC 94 4 98 96% 4% 100%
2 ICICI Pru 45 53 98 46% 54% 100%
3 HDFC 17 81 98 17% 83% 100%
4 OTHERS 4 94 98 4% 96% 100%
INFERENCE
From the above table it can be viewed that, among the 98 Respondents,
Most of the Respondents are having policy of LIC,
ICICI Pru gets the second place,
HDFC comes the third and other company policy holders are very less.
35
CHART 4.6 – CHART SHOWING THE POLICY HOLDINGS OF THE
RESPONDENTS
96%
46%
17%
4%4%
54%
83%
96%
0%
20%
40%
60%
80%
100%
120%
LIC ICICI Pru HDFC OTHERS
COMPANY
PE
RC
EN
TA
GE
OF
RE
SP
ON
DE
NT
S
YES NO
36
TABLE 4.7 – TABLE SHOWING THE FACTORS THAT INFLUENCE FOR
CHOOSING THE ABOVE SAID COMPANY
S.No FACTORS
RESPONDENTS
PREFERENCETOTAL
PERCENTAGE
OF
RESPONDENTS
PREFERENCE
TOTAL
PERCENTAGE
YES NO YES NO
1SUM
ASSURED49 49 98 50% 50% 100%
2 PREMIUM 89 9 98 91% 9% 100%
3TAX
BENEFITS45 53 98 46% 54% 100%
4 RETURNS 73 25 98 74% 26% 100%
INFERENCE
From the above table it can be viewed that, among the 98 Respondents,
91 % of the Respondents says yes for premium as the major factor,
74 % of the Respondents says yes for returns as a factor,
50 % of the Respondents says yes for sum assured as a factor,
46 % of the Respondents says yes for tax benefits as a factor.
37
CHART 4.7 – CHART SHOWING THE FACTORS THAT INFLUENCE FOR
CHOOSING THE ABOVE SAID COMPANY
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SUM ASSURED PREMIUM TAX BENEFITS RETURNS
FACTORS
PER
CEN
TAG
E O
F R
ESPO
ND
ENTS
YES NO
38
TABLE 4.8 – TABLE SHOWING THE POTENTIAL POLICY HOLDERS
PREFERENCES
S.No FACTORS
RESPONDENTS
PREFERENCETOTAL
PERCENTAGE
OF
RESPONDENTS
PREFERENCE
TOTAL
PERCENTAGE
YES NO YES NO
1 LIC 18 0 18 100% 0% 100%
2 ICICI Pru 0 18 18 0% 100% 100%
3 HDFC 0 18 18 0% 100% 100%
4 OTHERS 0 18 18 0% 100% 100%
INFERENCE
From the above table it can be viewed that, among the 18 Respondents,
100 % of the Respondents are willing to take policy in LIC,
Other companies’ policy are not that much liked by the respondents.
39
CHART 4.8 – CHART SHOWING THE POTENTIAL POLICY HOLDERS
PREFERENCES
100%
0% 0% 0%0%
100% 100% 100%
0%
20%
40%
60%
80%
100%
120%
LIC ICICI Pru HDFC OTHERS
COMPANY
PER
CEN
TAG
E O
F R
ESPO
ND
ENTS
YES NO
40
TABLE 4.9 – TABLE SHOWING THE FACTOR INFLUENCING THE
POTENTIAL POLICY HOLDERS PREFERENCES
S.No FACTORS
RESPONDENTS
PREFERENCETOTAL
PERCENTAGE
OF
RESPONDENTS
PREFERENCE
TOTAL
PERCENTAGE
YES NO YES NO
1SUM
ASSURED2 16 18 11% 89% 100%
2 PREMIUM 18 0 18 100% 0% 100%
3TAX
BENEFITS0 18 18 0% 100% 100%
4 RETURNS 6 12 18 33% 67% 100%
INFERENCE
From the above table it can be viewed that, among the 18 Respondents,
100 % of the Respondents says yes for premium as the major factor,
33 % of the Respondents says yes for returns as a factor,
11 % of the Respondents says yes for sum assured as a factor,
None of the Respondents says yes for tax benefits as a factor.
41
CHART 4.9 – CHART SHOWING THE FACTOR INFLUENCING THE
POTENTIAL POLICY HOLDERS PREFERENCES
0%
20%
40%
60%
80%
100%
120%
SUM ASSURED PREMIUM TAX BENEFITS RETURNS
FACTORS
PE
RC
EN
TA
GE
OF
RE
SP
ON
DE
NT
S
YES NO
42
TABLE 4.10 – TABLE SHOWING THE PLANS PREFERRED BY THE POLICY
HOLDERS
S.NoNAME OF
THE PLAN
RESPONDENTS
PREFERENCE TOTAL
PERCENTAGE
OF
RESPONDENTS
PREFERENCE
TOTAL
PERCENTAGE
YES NO YES NO
1RETIREMENT
PLAN46 52 98 47% 53% 100%
2 CHILD PLAN 10 88 98 10% 90% 100%
3INVESTMENT
PLAN68 30 98 69% 31% 100%
4SAVINGS
PLAN77 21 98 79% 21% 100%
INFERENCE
From the above table it can be viewed that, among the 98 Respondents,
79 % of the Respondents have chosen savings plan,
69 % of the Respondents have chosen investment plan,
47 % of the Respondents have chosen retirement plan,
10 % of the Respondents have chosen child plan.
43
CHART 4.10 – CHART SHOWING THE PLANS PREFERRED BY THE POLICY
HOLDERS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
RETIREMENT PLAN CHILD PLAN INVESTMENT PLAN SAVINGS PLAN
VARIOUS PLAN
PE
RC
EN
TA
GE
OF
RE
SP
ON
DE
NT
S
YES NO
44
TABLE 4.11 – TABLE SHOWING THE FUTURE PLAN OF RESPONDENTS OF
TAKING POLICY IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY
S.No OPINION NO OF RESPONDENT PERCENTAGE
1 YES 45 37.5%
2 NO 75 62.5%
TOTAL 120 100%
INFERENCE
From the above table it can be viewed that,
Only 37.5 % of the Respondents are willing to take policy in ICICI Prudential,
62.5 % of the Respondents are not willing to take policy in ICICI Prudential.
45
CHART 4.11 – CHART SHOWING THE FUTURE PLAN OF RESPONDENTS
OF TAKING POLICY IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY
YES38%
NO62%
46
TABLE 4.12 – TABLE SHOWING THE ICICI PRUDENTIAL LIFE INSURANCE
COMPANY PLANS PREFERRED BY THE RESPONDENTS
S.NoNAME OF
THE PLAN
RESPONDENTS
PREFERENCE TOTAL
PERCENTAGE
OF
RESPONDENTS
PREFERENCE
TOTAL
PERCENTAGE
YES NO YES NO
1RETIREMENT
PLAN8 37 45 18% 82% 100%
2 CHILD PLAN 1 44 45 2% 98% 100%
3INVESTMENT
PLAN28 17 45 62% 38% 100%
4SAVINGS
PLAN8 37 45 18% 82% 100%
5 OTHERS 1 44 45 2% 98% 100%
INFERENCE
From the above table it can be viewed that, among the 45 Respondents,
62 % of the Respondents are willing to choose investment plan,
18 % of the Respondents are willing to choose savings plan and retirement plan,
Only 2 % of the Respondents are willing to choose child plan and other plans.
47
CHART 4.12 – CHART SHOWING THE ICICI PRUDENTIAL LIFE
INSURANCE COMPANY PLANS PREFERRED BY THE RESPONDENTS
0%
20%
40%
60%
80%
100%
120%
RETIREMENTPLAN
CHILD PLAN INVESTMENTPLAN
SAVINGS PLAN OTHERS
VARIOUS PLANS
PERC
ENTA
GE
OF
RESP
ON
DEN
TS
YES NO
48
49
TABLE 4.13 – TABLE SHOWING THE RANKING OF VARIOUS LIFE
INSURANCE COMPANIES
RANKS 1 2 3 4 5 6 7 8 9 10 11 12 13 14TOT* WA** RANKWEIGHT
(Y)14 13 12 11 10 9 8 7 6 5 4 3 2 1
LIC(X1) 90 25 0 0 0 0 0 0 0 0 0 0 0 0 11513.78 1
X1*Y 1260 325 0 0 0 0 0 0 0 0 0 0 0 0 1585
HDFC(X2) 0 22 35 28 5 2 2 0 0 0 0 0 0 0 9411.68 3
X2*Y 0 286 420 308 50 18 16 0 0 0 0 0 0 0 1098
MAX(X3) 0 0 6 7 0 9 18 6 1 0 0 0 0 0 478.98 6
X3*Y 0 0 72 77 0 81 144 42 6 0 0 0 0 0 422
ICICI(X4) 18 65 11 0 2 3 0 0 0 0 0 0 0 0 9912.89 2
X4*Y 252 845 132 0 20 27 0 0 0 0 0 0 0 0 1276
KOTAK(X5)
5 0 0 0 0 0 0 0 0 10 4 2 0 0 216.76 11
X5*Y 70 0 0 0 0 0 0 0 0 50 16 6 0 0 142
BIRLA(X6)
0 0 0 0 0 0 0 0 4 0 15 0 4 2 253.76 13
X6*Y 0 0 0 0 0 0 0 0 24 0 60 0 8 2 94
TATA(X7) 0 0 2 0 0 1 0 0 0 0 4 12 0 3 224.00 12
X7*Y 0 0 24 0 0 9 0 0 0 0 16 36 0 3 88
SBI(X8) 2 0 0 13 12 4 4 18 4 0 0 0 5 0 628.37 7
X8*Y 28 0 0 143 120 36 32 126 24 0 0 0 10 0 519
ING(X9) 0 0 0 0 12 7 2 7 14 1 2 0 0 0 457.67 10
X9*Y 0 0 0 0 120 63 16 49 84 5 8 0 0 0 345
BAJAJ(X10)
0 5 48 27 10 8 0 0 0 0 0 0 0 0 9811.33 4
X10*Y 0 65 576 297 100 72 0 0 0 0 0 0 0 0 1110
AVIVA(X11)
0 0 3 7 16 12 6 3 7 0 0 0 0 0 549.11 5
X11*Y 0 0 36 77 160 108 48 21 42 0 0 0 0 0 492
METLIFE(X12)
0 0 0 0 17 6 11 13 1 0 0 0 5 0 537.91 9
X12*Y 0 0 0 0 170 54 88 91 6 0 0 0 10 0 419
AMP(X13) 0 0 2 10 10 11 5 1 9 11 0 3 0 0 628.03 8
X13*Y 0 0 24 110 100 99 40 7 54 55 0 9 0 0 498
SAHARA(X14)
0 0 0 0 0 0 0 0 0 4 0 0 3 14 211.90 14
X14*Y 0 0 0 0 0 0 0 0 0 20 0 0 6 14 40
*TOT – TOTAL; **WA – WEIGHTED AVERAGE
INFERENCE
From the above table,
Life Insurance Corporation of India, ICICI Prudential Life Insurance
Company and HDFC Standard Life Insurance Company are the leading Life
Insurance Companies in this sector.
Max New York Life Insurance Company, SBI Life Insurance Company and
AMP Sanmar Life Insurance Company are the companies which have started
to set path in the Life Insurance sector.
The Respondents were not much aware of the following Life Insurance
Companies. Kotak Mahindra Old Mutual Life Insurance Company, TATA
AIG Life Insurance Company, Birla Sun Life Insurance Company and
Sahara India Insurance Company.
50
51
TABLE 4.14 – TABLE SHOWING THE ICICI PRUDENTIAL POLICY
HOLDERS SATISFACTION LEVEL AMONG THE VARIOUS FACTORS
FACTORSHIGHLY
SATISFIEDSATISFIED NEUTRAL
DIS-SATISFIED
HIGHLY DISSATISFIED TOTAL WA* RANK
WEIGHT(Y) 5 4 3 2 1
RETURNS(X1) 20 17 9 0 0 464.24 4
X1*Y 100 68 27 0 0 195
CLAIM SETTLEMENT
(X2)1 29 16 0 0 46
3.67 6
X2*Y 5 116 48 0 0 169
BONUS(X3) 0 3 34 9 0 462.87 8
X3*Y 0 12 102 18 0 132
GUARANTEED ASSURANCE
(X4)0 20 26 0 0 46
3.43 7
X4*Y 0 80 78 0 0 158
LOAN AVAILING(X5)
2 1 25 18 0 462.72 9
X5*Y 10 4 75 36 0 125
PREMIUM AMOUNT(X6)
7 35 4 0 0 46
4.07 5X6*Y 35 140 12 0 0 187
PREMIUM PAYMENT MODE(X7)
24 22 0 0 0 46
4.52 2
X7*Y 120 88 0 0 0 208
PREMIUM PAYMENT WAYS(X8)
38 8 0 0 0 46
4.83 1
X8*Y 190 32 0 0 0 222
LIFE COVER(X9)
16 28 2 0 0 46
4.30 3X9*Y 80 112 6 0 0 198
*WA – WEIGHTED AVERAGE
INFERENCE:
From the above table,
The Respondents have ranked the factor Premium Payment Ways as First
among the various factors.
The Respondents have ranked the factor Premium Payment Mode as Second
among the various factors.
The Respondents have ranked the factor Life Cover as Third among the various
factors.
The Respondents have ranked the factor Return as Fourth among the various
factors.
The Respondents have ranked the factor Premium Amount as Fifth among the
various factors.
The Respondents have ranked the factor Claim Settlement as Sixth among the
various factors.
The Respondents have ranked the factor Guaranteed Assurance as Seventh
among the various factors.
The Respondents have ranked the factor Bonus as Eighth among the various
factors.
The Respondents have ranked the factor Loan Availing as Ninth among the
various factors.
52
SIGN TEST
Sign test is one of the non-parametric tests. Its name comes from the fact that
it is based on the direction of a pair of observations, not on their numerical magnitude. It
is used to test the hypothesis concerning no difference among two or more variables. The
sign test has important applications in the problems where we deal with paired data. In
such problem each pair of values can be replaced with positive sign if the value of the
first sample is greater than value of the second sample and negative signs if the value of
the first sample is less than value of the second sample. In case the two values are equal,
the pair will be discarded.
Test statistics
p – P
Z = σ p
where,
n : is the sample size (total no. of +ve and – ve sign excluding zero)
no. of +ve signp : is the proportion of successes and calculated as, p =
n P : is the hypothesized proportion and P = 0.5
σ p : is the standard error of the proportion
(p*q)and calculated as σ p =
√ n both p and q has the value 0.5
Level of Significance
The Level of Significance for the sign test is 5% and corresponding
table value Zα is 1.96
53
TABLE 4.15 – FINDING THE RELATIONSHIP BETWEEN THE INVESTMENT
AVENUE SHARES AND BONDS
Null Hypothesis (H0) : There is no significant difference between the Investment avenue
of Shares and Bonds
Alternate Hypothesis (H1) : There is a significant difference between the Investment
avenue of Shares and Bonds
SHARES 1 2 5 2 2 1 5 3 3 5 1 1 1 1 2 2 1 2 5 1 2 4 4 1 2
BONDS 8 6 6 3 8 5 7 4 4 7 2 8 4 3 3 3 3 8 6 6 3 5 5 6 3
SIGN - - - - - - - - - - - - - - - - - - - - - - - - -
SHARES 1 5 2 2 1 2 1 2 2 1 3 2 1 2 1 1 1 1 3 2 1 2 1 2 2
BONDS 6 7 6 3 6 6 3 5 5 2 6 5 6 3 5 2 4 4 6 5 2 5 6 6 3
SIGN - - - - - - - - - - - - - - - - - - - - - - - - -
SHARES 1 2 1 2 1 2 2 1 1 1 1 1 5 1 2 2
BONDS 6 3 3 3 6 3 8 3 8 4 3 4 6 8 6 3
SIGN - - - - - - - - - - - - - - - -
54
From the above table,
No. of + ve sign = 0
No. of – ve sign = 66
No. of zero’s = 0
Sample size n = 66
p = (0 / 66) = 0
σ p = √ ((0.5 * 0.5) / 66) = 0.0615
Z = ((0 - 0.5) / 0.0615) = -8.13
Z = 8.13
Zα = 1.96
INTERPRETATION
Calculated Z value is more than the table value of Z, so reject Null
Hypothesis. So, There is a significant difference between the investment avenue of
Shares and Bonds.
55
56
Similarly Sign Test was conducted, the following tables were formed and
interpretations were concluded.
TABLE 4.16 – TABLE SHOWING THE CONSOLIDATED SIGN TEST FOR
THE VARIOUS INVESTMENT AVENUES
S.NoNULL HYPOTHESIS
(H0)
ALTERNATE
HYPOTHESIS (H1) ZINTERPRETATION
1
There is no significant
difference between the
Investment avenue of
Shares and Mutual
Fund
There is a significant
difference between the
Investment avenue of
Shares and Mutual
Fund
1.02 Accept H0
2
There is no significant
difference between the
Investment avenue of
Shares and Life
Insurance
There is a significant
difference between the
Investment avenue of
Shares and Life
Insurance
4.65 Reject H0
3
There is no significant
difference between the
Investment avenue of
Shares and Fixed
Deposit
There is a significant
difference between the
Investment avenue of
Shares and Fixed
Deposit
3.98 Reject H0
Table value of Z, i.e., Zα = 1.96
57
S.NoNULL HYPOTHESIS
(H0)
ALTERNATE
HYPOTHESIS (H1) Z INTERPRETATION
4
There is no significant
difference between the
Investment avenue of
Shares and Post Office
Scheme
There is a significant
difference between the
Investment avenue of
Shares and Post Office
Scheme
3.80 Reject H0
5
There is no significant
difference between the
Investment avenue of
Shares and Real Estate
There is a significant
difference between the
Investment avenue of
Shares and Real Estate
7.79 Reject H0
6
There is no significant
difference between the
Investment avenue of
Shares and Gold
There is a significant
difference between the
Investment avenue of
Shares and Gold
7.83 Reject H0
7
There is no significant
difference between the
Investment avenue of
Bonds and Mutual
Funds
There is a significant
difference between the
Investment avenue of
Bonds and Mutual
Funds
6.65 Reject H0
8
There is no significant
difference between the
Investment avenue of
Bonds and Life
Insurance
There is a significant
difference between the
Investment avenue of
Bonds and Life
Insurance
0.98 Accept H0
Table value of Z, i.e., Zα = 1.96
58
S.NoNULL HYPOTHESIS
(H0)
ALTERNATE
HYPOTHESIS (H1) Z INTERPRETATION
9
There is no significant
difference between the
Investment avenue of
Bonds and Fixed
Deposit
There is a significant
difference between the
Investment avenue of
Bonds and Fixed
Deposit
4.25 Reject H0
10
There is no significant
difference between the
Investment avenue of
Bonds and Post Office
Schemes
There is a significant
difference between the
Investment avenue of
Bonds and Post Office
Schemes
4.06 Reject H0
11
There is no significant
difference between the
Investment avenue of
Bonds and Real Estate
There is a significant
difference between the
Investment avenue of
Bonds and Real Estate
0.25 Accept H0
12
There is no significant
difference between the
Investment avenue of
Bonds and Gold
There is a significant
difference between the
Investment avenue of
Bonds and Gold
0.51 Accept H0
13
There is no significant
difference between the
Investment avenue of
Mutual Funds and Life
Insurance
There is a significant
difference between the
Investment avenue of
Mutual Funds and Life
Insurance
3.88 Reject H0
Table value of Z, i.e., Zα = 1.96
59
S.NoNULL HYPOTHESIS
(H0)
ALTERNATE
HYPOTHESIS (H1) Z INTERPRETATION
14
There is no significant
difference between the
Investment avenue of
Mutual Funds and
Fixed Deposit
There is a significant
difference between the
Investment avenue of
Mutual Funds and
Fixed Deposit
4.96 Reject H0
15
There is no significant
difference between the
Investment avenue of
Mutual Funds and Post
Office Schemes
There is a significant
difference between the
Investment avenue of
Mutual Funds and Post
Office Schemes
4.8 Reject H0
16
There is no significant
difference between the
Investment avenue of
Mutual Funds and Real
Estate
There is a significant
difference between the
Investment avenue of
Mutual Funds and Real
Estate
7.47 Reject H0
17
There is no significant
difference between the
Investment avenue of
Mutual Funds and Gold
There is a significant
difference between the
Investment avenue of
Mutual Funds and Gold
7.82 Reject H0
Table value of Z, i.e., Zα = 1.96
60
S.NoNULL HYPOTHESIS
(H0)
ALTERNATE
HYPOTHESIS (H1) Z INTERPRETATION
18
There is no significant
difference between the
Investment avenue of
Life Insurance and
Fixed Deposit
There is a significant
difference between the
Investment avenue of
Life Insurance and
Fixed Deposit
4.53 Reject H0
19
There is no significant
difference between the
Investment avenue of
Life Insurance and Post
Office Schemes
There is a significant
difference between the
Investment avenue of
Life Insurance and Post
Office Schemes
4.36 Reject H0
20
There is no significant
difference between the
Investment avenue of
Life Insurance and Real
Estate
There is a significant
difference between the
Investment avenue of
Life Insurance and Real
Estate
0.35 Accept H0
21
There is no significant
difference between the
Investment avenue of
Life Insurance and
Gold
There is a significant
difference between the
Investment avenue of
Life Insurance and
Gold
1.11 Accept H0
Table value of Z, i.e., Zα = 1.96
61
S.NoNULL HYPOTHESIS
(H0)
ALTERNATE
HYPOTHESIS (H1) Z INTERPRETATION
22
There is no significant
difference between the
Investment avenue of
Fixed Deposit and Post
Office Schemes
There is a significant
difference between the
Investment avenue of
Fixed Deposit and Post
Office Schemes
6.12 Reject H0
23
There is no significant
difference between the
Investment avenue of
Fixed Deposit and Real
Estate
There is a significant
difference between the
Investment avenue of
Fixed Deposit and Real
Estate
4.76 Reject H0
24
There is no significant
difference between the
Investment avenue of
Fixed Deposit and Gold
There is a significant
difference between the
Investment avenue of
Fixed Deposit and Gold
3.81 Reject H0
24
There is no significant
difference between the
Investment avenue of
Post Office Schemes
and Real Estate
There is a significant
difference between the
Investment avenue of
Post Office Schemes
and Real Estate
4.76 Reject H0
Table value of Z, i.e., Zα = 1.96
62
S.NoNULL HYPOTHESIS
(H0)
ALTERNATE
HYPOTHESIS (H1) Z INTERPRETATION
26
There is no significant
difference between the
Investment avenue of
Post Office Schemes
and Gold
There is a significant
difference between the
Investment avenue of
Post Office Schemes
and Gold
3.81 Reject H0
27
There is no significant
difference between the
Investment avenue of
Real Estate and Gold
There is a significant
difference between the
Investment avenue of
Real Estate and Gold
8.3 Reject H0
Table value of Z, i.e., Zα = 1.96
CHI – SQUARE TEST METHOD
The Chi – square test is an important test amongst the several tests of
significance developed by statisticians. As a non-parametric test, “It can be used to
determine if categorical data shows dependency or the two classifications are
independent. It can also be used to make comparisons between theoretical populations
and actual data when categories are used.” The following are some of the conditions to
be satisfied,
Observations recorded and used are collected on random basis.
All the items in the sample must be independent.
No group should contain very few items, say less than 10.
The overall number of items must also be reasonably large.
Test Statistics
( Oi – Ei )2
Chi – Square ( 2א ) = Ei
Where,
Oi = Observed Frequency
Ei = Expected Frequency
N = Number of Respondents
Degrees Of Freedom
Degrees of freedom = (N-1)
Level of Significance
The Level of Significance for the test is 5%
63
TABLE 4.17 – FINDING THE RELATIONSHIP BETWEEN THE VARIOUS
FACTORS INFLUENCING THE INVESTMENT
Null Hypothesis (H0) : There is no significant difference between the various Investment
factors.
Alternate Hypothesis (H1) : There is a significant difference between the various
Investment factors.
FACTORS
PREFERENCE FOR THE SELECTION OF
COMPANY
OBSERVED EXPECTED
SUM ASSURED 49 64
PREMIUM 89 64
TAX BENEFITS 45 64
RETURNS 73 64
TOTAL 256 256
Calculated Chi- Square ( 2א ) Value = 20.1874
Level Of Significance = 0.05
Degrees Of Freedom (N-1) = 3
Table Value = 7.81
INTERPRETATION
Calculated 2א Value is greater than the Table Value, so Null Hypothesis (H0)
is rejected. Therefore, there is a significant difference between the various investment
factors.
64
TABLE 4.18 – FINDING THE RELATIONSHIP BETWEEN THE VARIOUS
PLANS IN WHICH THE RESPONDENTS HAVE INVESTED
Null Hypothesis (H0) : There is no significant difference between the various plans in
which the respondents have Invested.
Alternate Hypothesis (H1) : There is a significant difference between the various plans
in which the respondents have Invested.
NAME OF THE PLANRESPONDENTS PREFERENCE
OBSERVED EXPECTED
RETIREMENT PLAN 46 50.25
CHILD PLAN 10 50.25
INVESTMENT PLAN 68 50.25
SAVINGS PLAN 77 50.25
TOTAL 201 201
Calculated Chi- Square ( 2א ) Value = 53.1093
Level Of Significance = 0.05
Degrees Of Freedom (N-1) = 3
Table Value = 7.81
INTERPRETATION
Calculated 2א Value is greater than the Table Value, so Null Hypothesis (H0)
is rejected. Therefore, there is a significant difference between the various plans in which
the respondents have invested.
65
CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 FINDINGS
Most of the respondents are male and belongs to working category.
47% of the respondents are saving 5-10 % of their annual income.
81% of the respondents prefer returns as the reason of the investment.
79% of the respondents prefer public sector insurance company i.e., Life
Insurance Corporation of India.
Only 82% of the respondents are having Life Insurance Policies and the
remaining percentage of the respondents are willing to take policy in LIC.
94% of the respondents are having policies in LIC and next to it 46% of the
respondents are having policy in ICICI Prudential.
In future mostly all the respondents are willing to take policy in LIC.
Premium and Return are the major factor that influence in choosing the
companies and moreover the various investment factors like Sum Assured,
Premium, Tax Benefits and Returns are having a significant difference among
them. The order in which the factors influence are Premium, Returns, Sum
Assured and Tax Benefits.
66
Most of the respondents are interested to take policies of Savings Plan and
Investment Plan and moreover the various plans like Retirement Plan, Child Plan,
Investment Plan and Savings Plan are having a significant difference in which the
respondents have invested. The order in which the respondents prefer the plans
are Savings Plan, Investment Plan, Retirement Plan and Child Plan.
With regard to ICICI Prudential, Investment Plans are more attractive than other
plans.
With regard to ICICI Prudential, the respondents are very much satisfied with
Premium Collection Mode and Premium Payment Mode, but not satisfied with
Bonus provided and loan availing facility.
The preference of various pairs of investment avenues which has no significant
difference,
o with Shares is Mutual Fund (other avenues like Bonds, Life Insurance,
Fixed Deposit, Post Office Scheme, Real Estate and Gold has a significant
difference).
o with Bonds are Life Insurance, Real Estate and Gold (other avenues like
Mutual Fund, Fixed Deposit and Post Office Scheme has a significant
difference)
o with Life Insurance are Real Estate and Gold (Fixed Deposit and Post
Office Scheme has a significant difference)
LIC has got first rank among the various Life Insurance Companies and ICICI
Prudential has got second rank in the Life Insurance Sector.
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5.2 SUGGESTIONS
The income group 1 to 5 lakh are more interested in investment in insurance. It is
suggested that while marketing this segment be considered.
Since Return is the main expectation of investors, it is recommended that this
aspect be reinforced while wooing prospective investors to ICICI Prudential.
Only few Respondents have planned to go for private life insurance, so the
schemes and advantage of ICICI Prudential must be promoted greatly.
The awareness of LIC is most and other private insurance companies remains
untapped. It is suggested that an attempt be made to bring out the advantages of
other ICICI Prudential schemes.
The respondents were only partially aware of Market Linked schemes. Since most
of the respondents prefer return as their investment option steps should be taken
to explain about the advantages of Market linked plans of ICICI Prudential.
Since most of the respondents prefer only certain schemes, all the other schemes
available in ICICI Prudential should be promoted and the insurers must be
updated on the highlights of the schemes.
With regard to ICICI Prudential the factors Bonus provided and Loan Availing
facility are not satisfactory to the customers. So it is recommended that to the
company that they have pay more attention to these factors.
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5.3 CONCLUSION
The conclusion is arrived through the analysis and interpretation. The Study
undertaken for ICICI Prudential Life Insurance Company Limited has been successful in
analysis of the customers Attitude, Perception and Satisfaction Level towards Investment
in ICICI Prudential.
It has been found that the salaried person is more interested in having
insurance as an investment avenue for various reasons. LIC is the well known company
in the Insurance sector and Savings Plan is the well known scheme. The private insurance
companies are accepted to certain extent only and it has to be tapped to greater extent.
It has also found that the Investment Plan of ICICI Prudential is gaining more
advantage than other schemes. This is because that Returns has a major effect on
investment made by investors.
Based on the findings of the study a few suggestions have been given by the
researcher if considered would give strength to the marketing strategy of ICICI
Prudential in tapping investment in the field of insurance.
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APPENDIX – I
Questionnaire
1. Name:
Address
Gender: (a) Male (b) Female
Age: (a) 18-25 (b) 26-35 (c) 36-45 (d) Above 45
Martial Status: (a) Married (b) Unmarried
2. Nature of employment(a) Employee (b) Professional (c) Business (d) Agriculture (e) Others
3. Annual income(a) Less than 1 lakh (b) 1-5 lakh (c) 5-10 lakh (d) More than 10 lakhs
4. How much will you save?(a) Less than 5% (b) 5-10% (c) 10-15% (d) More than 15%
5. Your preference for investment (Rank them)
SharesBonds Mutual Fund Life insuranceFixed Deposit Post Office Scheme Real EstateGoldOthers
6. Reason for your investment(a) Life Cover (b) Returns (c) Capital Appreciation (d) Tax Savings (e) Others
7. Which sector of insurance you prefer?(a) Public (b) Private
8. Do you have Life Insurance Policy?Yes / No
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9. If yes, in which company do you have the policy(a) LIC (b) ICICI Pru (c) HDFC (d) Others…………………
10. Reason for your preference for the above said company(a) Sum Assured (b) Premium (c) Tax Benefits (d) Return (e) Others
11. In which plan have you invested? (a) Retirement Plan (b) Child Plan (c) Investment Plan (d) Savings Plan (e)Others …………………..
12. If no (Q.No. 8), do you have an idea to take life insurance policy?Yes / No
13. Which company do you prefer to take policy?(a) LIC (b) ICICI Pru (c) HDFC (d) Others …………………
14. Reason for your preference for the above said company(a) Sum Assured (b) Premium (c) Tax Benefits (d) Return (e) Others
15. Rank the following Insurance Company
Life Insurance Corporation of IndiaHDFC Standard Life Insurance Company Ltd.Max New York Life Insurance Co. Ltd.ICICI Prudential Life Insurance Company Ltd.Kotak Mahindra Old Mutual Life Company LimitedBirla Sun Life Insurance Company Ltd.Tata AIG Life Insurance Company Ltd.SBI Life Insurance Company Limited.ING Vysya Life Insurance Company Private LimitedBajaj Allianz Life Insurance Company LimitedAviva Life Insurance Company Pvt. Ltd.MetLife India Insurance Company Pvt. Ltd.AMP Sanmar Life Insurance company LtdSahara India Insurance Company Ltd
16. Do you have an idea to take a policy in ICICI PruYes / No
17. In which plan do you like to invest? (a) Retirement Plan (b) Child Plan (c) Investment Plan (d) Savings Plan (e)Others …………………..
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18. What is your satisfaction level towards ICICI Prudential products with regards to the following factors?
Particulars Highly Satisfied
Satisfied Neutral Dissatisfied Highly Dissatisfied
Returns
Claim Settlement
Bonus
Guaranteed Assurance
Loan availing
Premium Amount
Premium payment mode
Premium payment ways
Life cover
19. Do you need any advisors from ICICI Prudential to explain about the products?Yes / No
20. If yes through what means,(a) Calls (b) Meet (c) Mail
21. Any Suggestion
THANK YOU
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REFERENCES
1 Kothari. C.R (2004): ‘Research Methodology Methods & Techniques’, New Age
International Publishers, New Delhi, 2nd Edition.
2 Richard I. Levin, David S. Rubin (2004): ‘Statistics for Management’, Prentice Hall
of India Private Limited, New Delhi, 7th Edition.
3 Insurance: Principles and Practices- by Mathew.
4 Life Insurance Agent’s Licensing Course; Centre for Management Development,
New Delhi.
Websites
www.irda.com
www.licindia.com
www.iciciprulife.com
www.prudential.co.uk
www.insuremagic.com
www.google.com
Magazines
Business Today.
Business World.
Industrial Economist
The Hindu Business Line.
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