PROJECT REPORT

ON

CONSUMER BUYING BEHAVIOUR OF INSURANCE

AT INSPLORE TLS CONSULTANCY, NEW DELHI

FOR THE PARTIAL FULFILLMENT OF TWO YEARS FULL TIME

POST GRADUATION DIPLOMA IN MANAGEMENT

BY
ABHISHEK SINHA
ROLL NO: 22006
BATCH 2022- 2024

DR. D. Y. PATIL B-SCHOOL

SR.NO. 87-88, BENGALURU-MUMBAI EXPRESSWAY, TATHAWADE,
PUNE, MAHARASHTRA 411033

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 STUDENT DECLARATION

I, Abhishek Sinha, hereby declare that the presented Summer Internship project
report titled “Consumer Buying Behavior of Insurance at INSPLORE TLS
CONSULTANCY “is uniquely prepared by me after the completion of work 15 th
May 2023 to 15th July 2023 at INSPLORE TLS CONSULTANCY, NEW-
DELHI.

I also confirm that the report is only prepared for my academic requirements and not
for any other purpose. It might not be used with the interest of the opposite party of
the corporation.

Abhishek Sinha
Roll no.: 22006
PGDM Batch 2022-2024
Dr. D. Y. Patil B-School, Pune

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 COMPANY CERTIFICATE

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 B-SCHOOL CERTIFICATE

4
 ACKNOWLEDGEMENT

I would like to express my deepest gratitude to all those who have supported me throughout my
summer internship project during my summer internship project. This internship has been a
significant learning experience, and I am immensely grateful for the guidance and encouragement
I have received.

First and foremost, I would like to thank INSPLORE TLS CONSULTANCY for providing me
with the opportunity to undertake this internship. I am thankful for the trust and confidence they
placed in me, allowing me to contribute to the organization's objectives. I am indebted to my
internship supervisor, MR. SHASHANK RAO, for their valuable guidance and mentorship. Their
expertise and willingness to share knowledge have been instrumental in shaping my understanding
of the industry and improving my skills. Their constant support and constructive feedback have
contributed significantly to the success of my project. I would like to express my gratitude to my
faculty mentor, DR. SHITAL DAREKAR, for their continuous support and guidance. Their
wisdom and expertise have been crucial in shaping the direction of my project. I am also grateful
to the faculty members and staff of Dr. D. Y. Patil B-School for their encouragement and support
during my summer internship program.

Lastly, I would like to thank my family and friends for their unwavering support and
understanding. Their encouragement has been a constant source of motivation throughout this
internship. In conclusion, this summer internship project has provided me with practical insights
into the world of business management. I am thankful to everyone who has played a part in making
this internship a valuable and enriching experience. The knowledge and skills acquired during this
internship will undoubtedly shape my professional journey, and I am eager to apply them in my
future endeavors.

Sincerely,
Abhishek Sinha
Roll no: 22006
PGDM (Batch 2022-24)

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 List Of Abbreviations

The insurance sector in India, like any other industry, has its own set of abbreviations and
acronyms that are commonly used. Here is a list of some of the frequently used abbreviations and
acronyms in the Indian insurance sector:

IRDAI: Insurance Regulatory and Development Authority of India

ULIP: Unit Linked Insurance Plan
LIC: Life Insurance Corporation of India
NPS: National Pension System
HDFC: Housing Development Finance Corporation
ICICI: Industrial Credit and Investment Corporation of India
BIRDS: Bancassurance Insurance Repository Data System
TPA: Third-Party Administrator
PA: Personal Accident
MEDICLAIM: Medical Insurance
OIC: Oriental Insurance Company
GIC: General Insurance Corporation of India
FMC: Fund Management Charges
RBI: Reserve Bank of India
GWP: Gross Written Premium
NRI: Non-Resident Indian
FDI: Foreign Direct Investment
OD: Own Damage (Motor Insurance)
TP: Third-Party (Motor Insurance)
COI: Certificate of Insurance
NCB: No Claim Bonus
TPPD: Third-Party Property Damage (Motor Insurance)
TPBI: Third-Party Bodily Injury (Motor Insurance)

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 TABLE OF CONTENTS

Sr. No. Chapter Page No

1 Introduction to Study 1-8

2 Conceptual framework/Review of Literature 9-15

3.1. Industry Analysis 17-27

3
3.2. Company Profile

Research Methodology
4.1. Collection of data
4.2 Primary data
4.3. Secondary data 29-44
4.4. Tools for data collection
4 4.5. The method used for collecting the data
4.6. Sampling technique
4.7. Sample size
4.8. Methods of reporting / presenting data
4.9. Statistical analysis of data
4.10. Limitations of the Study

5 Data Analysis and Interpretation 46-51

6 Findings, Conclusion and Recommendations 53-55

7 Bibliography/References 57

8 Annexures/Appendix 59-60

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 EXECUTIVE SUMMARY

“Insuring Dreams”, this is exactly what we at Insplore TLS Consultancy do. Insplore TLS
Consultancy has emerged out of a parent company whose philosophy revolves around the Aam
Aadmi (common man), not in papers, but in actuality. With a sole motivation to serve the
marginalized section, every single member of the Insplore TLS Consultancy family strives towards
creating a better world, for himself/herself and for those around him/her.
For a world, where business means profits and self-centric service, our work-values might sound
a bit farfetched. Understandably, the doubt is genuine and undeniable. So here, let us have a glance
into the background of Insplore TLS Consultancy. Commencing business in 2017, Insplore TLS
Consultancy life was incorporated in the year of 2018.
We work with the primary intention of bringing a positive change in the lives of our fellow beings
while adhering to high service standards at the same time.
The philosophy of putting the common man first is apparent in the way the Insplore TLS
Consultancy functions. Its humble environment with no monumental expenditure on luxury is in
sync with its working culture. Acknowledging our efforts, many accolades have been bestowed
upon us.
With the same unwavering commitment and equal enthusiasm, Insplore TLS Consultancy is
stepping into the online world, making the process of buying insurance even simpler and customer-
centric.
Under the impactful leadership and visionary approach of Mr. Inder Sharma & Himalaya Sethi,
the family of Insplore TLS Consultancy is working towards making insurance buying simpler,
faster and easier and to help customers in the better management of their funds and in increasing
their funds through the beneficial and suitable life insurance plans.
Life of human is a completely essential asset and existence insurance is very essential as it insures
the life of human i.e. Offers protection to an individual and his circle of relatives when uncertainty
arises. Life Insurance is not only a protection it is also a savings. In Splore TLS Consultancy plays
a very critical position in the person welfare by way of offering coverage to thousands and
thousands of people while the human life is at hazard or at uncertainty time. The study at present
has been selected with an objective of examining the consumer behavior and various factors
affecting the buying behavior of Life insurance in Insplore TLS Consultancy. The data collected
for the study is a primary data and the sample size is 50 respondents. Insurance policy should
spread awareness about their policy, returns, premium, goodwill etc. and also, they should have
innovative products where this information was provided by the previous research papers.
Insurance is not only for tax saving but also for financial security, risks, uncertainty etc.

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 CHAPTER 1
INTRODUCTION OF INDUSTRY

INDUSTRY PROFILE
1.1 WHAT IS INSURANCE
Insurance may be described as a social device to reduce or eliminate risk of loss to life and
property. Insurance is a collective bearing of risk. Insurance spreads the risks and losses
of few people among a large number of people as people prefer small fixed liability instead
of big uncertain and changing liability. Insurance is a scheme of economic cooperation by
which members of the community share the unavoidable risks. Insurance can be defined
as a legal contract between two parties whereby one party called Insurer undertakes to pay
a fixed amount of money on the happening of a particular event, which may be certain or
uncertain. The other party called Insure or Insurant pays in exchange a fixed sum known
as premium. The insurer and the insurant are also known as Assurer or Underwriter and
Assurant, respectively. The document which embodies the contract is called the policy.

1.2 ORIGIN OF INSURANCE

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk
of the caravan trade by giving loans that had to be later repaid with interest when
the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status
to the practice that, perhaps, was how insurance made its beginning. Life insurance
had its origins in ancient Rome, where citizens formed burial clubs that would meet
the funeral expenses of its members as well as help survivors by making some
payments. As European civilization progressed, its social institutions and welfare
practices also got more and more refined. With the discovery of new lands, sea
routes and the consequent growth in trade, medieval guilds took it upon themselves
to protect their member traders from loss on account of fire, shipwrecks and the
like. Since most of the trade took place by sea, there was also the fear of pirates.
So, these guilds even offered ransom for members held captive by pirates. Burial
expenses and support in times of sickness and poverty were other services offered.
Essentially, all these revolved around the concept of insurance or risk coverage.
That's how old these concepts are, really. 10 In 1347, in Genoa, European maritime
nations entered into the earliest known insurance contract and decided to accept
marine insurance as a practice.

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 THE FIRST STEP
Insurance as we know it today owes its existence to 17th century England. In fact,
it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee
House in London, where merchants, ship-owners and underwriters met to discuss
and transact business. By the end of the 18th century, Lloyd's had brewed enough
business to become one of the first modern insurance companies.

ENTER COMPANIES
The first stock companies to get into the business of insurance were chartered in
England in 1720. The year 1735 saw the birth of the first insurance company in the
American colonies in Charleston, SC. In 1759, the Presbyterian Synod of
Philadelphia sponsored the first life insurance corporation in America for the
benefit of ministers and their dependents. However, it was after 1840 that life
insurance really took off in a big way. The trigger: reducing opposition from
religious groups.

THE GROWING YEARS

The 19th century saw huge developments in the field of insurance, with newer
products being devised to meet the growing needs of urbanization and
industrialization. In 1835, the infamous New York fire drew people's attention to
the need to provide for sudden and large losses. Two years later, Massachusetts
became the first state to require companies by law to maintain such reserves. The
great Chicago fire of 1871 further emphasized how fires can cause huge losses in
densely populated modern cities. The practice of reinsurance, wherein the risks are
spread among several companies, was devised specifically for such situations.
There were more offshoots of the process of industrialization. In 1897, the British
government passed the Workmen's Compensation Act, which made it mandatory
for a company to insure its employees against industrial accidents. With the advent
of the automobile, public liability insurance, which first made its appearance in the
1880s, gained importance and acceptance?
In the 19th century, many societies were founded to ensure the life and health of
their members, while fraternal orders provided low-cost, members-only insurance.
Even today, such fraternal orders continue to provide insurance coverage to
members as do most labor organizations. Many employers sponsor group insurance
policies for their employees, providing not just life insurance, but sickness and
accident benefits and old-age pensions. Employees contribute a certain percentage
of the premium for these policies.

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 IN INDIA

Insurance in India can be traced back to the Vedas. For instance, Yoga Shema, the
name of Life Insurance Corporation of India's corporate headquarters, is derived
from the Rig Veda. The term suggests that a form of "community insurance" was
prevalent around 1000 BC and practiced by the Aryans. Burial societies of the kind
found in ancient Rome were formed in the Buddhist period to help families build
houses, protect widows and children. Bombay Mutual Assurance Society, the first
Indian life assurance society, was formed in 1870. Other companies like Oriental,
Bharat and Empire of India were also set up in the 1870- 90s. It was during the
Swadeshi movement in the early 20th century that insurance witnessed a big boom
in India with several more companies being set up. As these companies grew, the
government began to exercise control on them. The Insurance Act was passed in
1912, followed by a detailed and amended Insurance Act of 1938 that looked into
investments, expenditure and management of these companies' funds. By the mid-
1950s, there were around 170 insurance companies and 80 provident fund societies
in the country's life insurance scene. However, in the absence of regulatory
systems, scams and irregularities were almost a way of life at most of these
companies. As a result, the governments decided nationalize the life assurance
business in India. The Life Insurance Corporation of India was set up in 1956 to
take over around 250 life companies. For years thereafter, insurance remained a
monopoly of the public sector. It was only after seven years of deliberation and
debate – after the RN Malhotra Committee report of 1994 became the first serious
document calling for the re-opening up of the insurance sector to private players
that the sector was finally opened up to private players in 2001. The Insurance
Regulatory & Development Authority, an autonomous insurance regulator set up
in 2000, has extensive powers to oversee the insurance business and regulate in a
manner that will safeguard the interests of the insured.

1.3 TYPES OF INSURANCE

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 1.4 LIFE INSURANCE

Life Insurance is defined as a contract between the policy holder and the insurance
company, where the life insurance company pays a specific sum to the insured
individual's family upon his death. The life insurance sum is paid in exchange for
a specific amount of premium. Life is beautiful, but also uncertain. Whatever you
do, however smart and hard you work, and you are never sure what life has in store
for you. It is therefore important that you do not leave anything to chance,
especially ‘life insurance’. As death is the only certain thing in life, apart from
taxes, it pays to insure it well in advance.

1.5 BENEFITS OF LIFE INSURANCE

Life insurance is designed to minimize the impact of the financial loss your family
may incur upon your demise. The benefits of such plans are fourfold, aptly
contained within the acronym “LIFE”:

1.6 TYPES OF LIFE INSURANCE POLCIIES

❖ Term Life Insurance: - Term life insurance lasts for a set number of years before
it expires. If you die before the term is up, a set amount of money, known as the
death benefit, is paid to your designated beneficiary. Term life is considered the
simplest, most accessible insurance policy. When you make your payments (known
as your premium), you’re paying for the death benefit that goes to your
beneficiaries in the event of your death. The death benefit can be paid out as a lump
sum, a monthly payment, or an annuity. Most people elect to receive their death
benefit as a lump sum.

❖ Universal Life Insurance: - Universal life insurance has a cash value, just like a
whole life insurance policy. Your premiums go toward both the cash value and the
death benefit. But there’s a twist: You can change the premium and death benefit
amounts without getting a new policy. Basically, although you have a minimum
premium to keep the policy in force, you can use the cash value to pay that
premium. That means if you have enough money in the cash value, you can use
that to skip premium payments entirely, letting the accrued interest do the work.

❖ Variable Life Insurance: - Variable life insurance is similar to whole life

insurance in that they both have a cash value, but the functions of the cash values
are quite different. With a whole life insurance policy, the cash value component
is a savings account. That’s why, although the growth might be small compared to
other investment options, there is a guaranteed minimum rate. It also includes
dividend payments from the life insurance company.

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 ❖Simplified Issue Life Insurance: - Typically when you apply for life insurance,
you go through a paramedical exam as part of the underwriting process so the
insurer can find out how risky you are to insure. The exam helps them set your
premium rate.

With simplified issue life insurance, you can skip the medical exam. That’s the “simplified" part
of this policy type. This is also known as a "no exam policy.” You’re not out of the woods
completely, though. You don’t need to go through the medical exam, but you do need to fill out a
health questionnaire, answering questions like if you smoke, have been diagnosed with serious
illnesses, and so on.

❖Guaranteed Issue Life Insurance: - Guaranteed issue life insurance takes the concept of
simplified issue life insurance — forgoing the health exam — a step further in that you
don’t have to answer any questions about your health, either. As long as you can pay the
premium, the insurer will cover you, needing only your age, sex, and state of residence.
❖Endowment Plan: It is a life insurance policy which is payable to the insured if he/she is
alive till the policy maturity date. These endowment plans also offer benefits like bonus
monthly, which is paid in maturity or else to the nominee under the death benefit. It is also
known as traditional insurance and the risk involved is lower.
❖ULIP: In this, the part of insurance plan will go towards the mutual fund investments and
remaining will be going to the death benefit purpose. An individual also can invest in
different funds offered by the company depending on his risk management or involved.
❖Whole Life Insurance: It is not for a specified term; instead, it covers the whole life of an
individual in this. The sum assured is decided when the policy is being purchased and is
paid to the nominee when the insured person will die. In this, withdrawal can also be done
after the premium payment period.
❖Child’s Policy: It provides financial protection to the children throughout their lives by
Investment + insurance policies. It helps to secure the child’s future for their education and
marriages. During the policy term, if the insured child’s parent dies then the payment is
done immediately by the insurance company.
❖ Money-Back: After the payment of policy, it provides certain percentage on sum assured
which is also known as survival benefit. They are also eligible to receive.

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 1.7 LIST OF LIFE INSURANCE COMPANIES

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7
 1.8 REGULATORY BODY – IRDAI

IRDA is the supervisory body in India that regulates and commands all the
insurance companies in the country, both Life Insurances and General Insurance
companies. IRDA is the head organization that sets rules and guidelines to run the
Indian Insurance Industry. While monitoring the activities of the insurance
companies, IRDA also regulates and sees the development of these industries. The
whole and sole responsibility of the autonomous body IRDA is to regulate fair
practices in the insurance market to impede the loss of customers. The way the
banking system of the nation works as per the guidelines set by the RBI, leaving
no scope for the monopoly to take over, IRDA on the same lines of industrial
practice plays an important role to control the insurance sector. Major
responsibilities of IRDA are as follows:
❖ Foster righteousness and fair dealings in the market.
❖ Expedite the claim settlement and overcome the disputes
❖ Keep a check on scams and frauds by setting standards and conduct
vigilance.

The scope of work for IRDA is wide and it abides by its limitations without
favoring any particular insurance company. To keep up the growth, the work and
acts of IRDA are as mentioned below:

❖ IRDA monitors that no insurance company can deny the claim on their
free will unless it falls beyond the scope of the cover. Thus, protecting
the interest of policyholders at the time of issuance of the policy claims,
and cancellation of the policy.

❖ IRDA clearly states the code of conduct for all insurance companies,
loss assessors and surveyors. Thus, players come together to work on a
single tune and compete with each other simply on the basis of
discounts.

❖ IRDA conducts investigations, calls for both annual and need-based

audit so as to prevent any misdeed.

❖ To bring equality for customers IRDA, regulates the terms and rates
offered by the insurance companies.

❖ IRDA provides a resolution in case of any disputes emerged between

the insurer and the policyholder.

❖ IRDA prevents insurers from quoting rates as per their convenience and
hence it limits the major risks to the Tariff Advisory Committee.

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 CHAPTER 2
CONCEPTUAL FRAMEWORK
REVIEW OF LITERATURE

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Conceptual Framework:

The conceptual framework of the insurance industry in India encompasses various key elements
and principles that govern its functioning. Here's an overview of the fundamental components of
the insurance industry in India:

1. Regulatory Framework:

❖ The Insurance Regulatory and Development Authority of India (IRDAI) is the apex
regulatory body overseeing the insurance industry in India.
❖ IRDAI formulates policies, regulations, and guidelines to ensure the stability and growth
of the industry.
❖ It also monitors insurance companies, intermediaries, and products to protect the interests
of policyholders.

2. Participants:

❖ Insurance companies: These are entities that offer various insurance products to the public.
They can be life insurance companies, general insurance companies, or reinsurance
companies.
❖ Policyholders: Individuals or businesses that purchase insurance policies to transfer or
mitigate risks.
❖ Insurance intermediaries: Agents, brokers, and insurance aggregators facilitate the sale of
insurance products.
❖ Regulators: IRDAI and other government bodies play a crucial role in overseeing and
regulating the industry.

3. Types of Insurance:

❖ Life Insurance: Provides financial protection and savings benefits in the event of the
policyholder's death or maturity.
❖ General Insurance: Covers a wide range of non-life risks, including health, motor, property,
liability, and more.
❖ Reinsurance: Insurance companies often reinsure part of their risk with reinsurance
companies to manage their exposure.

4. Products and Services:

The insurance industry offers a diverse range of products, including term insurance, endowment
policies, health insurance, motor insurance, home insurance, travel insurance, and more.
Insurance services include underwriting, claims settlement, policy issuance, and risk assessment.

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 5. Distribution Channels:

Insurance products are distributed through various channels, including insurance agents, brokers,
bancassurance (selling through banks), and online platforms.
6. Risk Management:

Insurance companies employ actuaries and risk management experts to assess and price risks
accurately.
Reinsurance helps insurers manage their exposure to large and catastrophic risks.

7. Financial Stability:

Insurance companies are required to maintain adequate capital reserves to ensure financial stability
and meet their obligations to policyholders.

8. Market Dynamics:

The Indian insurance market is competitive, with both public and private sector players.
Foreign direct investment (FDI) limits in insurance have been periodically revised to attract foreign
investments.

9. Customer Protection:

The regulatory framework emphasizes customer protection, ensuring that policyholders receive
fair treatment and transparent information.
Grievance redressal mechanisms are in place to address customer complaints.

10. Technology and Innovation:

Digitalization has become increasingly prevalent in the insurance industry, with online sales,
claims processing, and customer service.
Insurtech companies have emerged to disrupt traditional insurance practices.

11. Social Initiatives:

The insurance industry in India also participates in social initiatives such as microinsurance and
government-led schemes to extend coverage to underserved populations.

12. Long-term Perspective:

Insurance is viewed as a long-term financial planning tool in India, with policies often used for
wealth creation, retirement planning, and protection.
This conceptual framework forms the basis for the functioning of the insurance industry in India,
with the aim of providing financial security and risk management solutions to individuals and
businesses while adhering to regulatory guidelines and promoting industry growth.

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The review of literature has been made to find out the research gap and to identify the relevant
issues on the topic. It is important for a researcher to review the related literature in order to have
a clear knowledge about the topic and understand the research gap in order to draw the scope for
the study.

Review Of Literature:

Ashma. P and Kumar. R (2007):

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

Girish Kumar and Eldhose (2008):

Published in insurance chronicle icfai monthly magazine august 2008 in their paper titled
"customer perception on life insurance services: a comparative study of public and private sectors",
well explained the importance of quality services and its significance in raising customer
satisfaction level. A comparative study of public and private sectors help in understanding the
customer perception, satisfaction and awareness on various life insurance services.

Sheetal, (2009):

Conducted a survey on 150 respondents to determine the attributes affecting buying behavior of
consumers, investment pattern in life insurance services and compare the differences in consumer
perception of male and female consumers. In their study they found that there 6 factors which
affect the buying behavior while purchasing life insurance policies namely consumer loyalty,
service quality, ease of procedures, satisfaction level, company image and company client
relationship. There is no difference between the perception of male and female preferences.

Yadav and Tiwari (2012):

The study area is limited to Jabalpur district, of Madhya Pradesh and sample size of 150
policyholders is taken and the sample has been selected through satisfied and purposive sampling
method. The study has been conducted to find out factors influencing customer investment
decision, impact of various demographic factors, preferences of customers while taking the
decision, and ranking of factors responsible for the selection life insurance as an investment option.
The study was conducted on 150 respondents in their study on factors affecting customer
investment in life insurance policies and found the age, gender and income level. Out of 150
samples 54.6% of policy holders have invested in LIC followed by SBI life insurance amongst
private players. The features that policyholders consider while making a purchase can be ranked

12
as follows: company reputation, money back guarantee, risk coverage, low premium and easy
access to agent’s as1st, 2nd, 3rd, 4th and 5th respectively. Thus it could be concluded that goodwill
of the company is the most influencing factor while policy buying decision. It was found that
majority of respondents preferred money back policy. While studying the reason for purchase of
insurance policy was most (54.6%) of the respondent’s have opted for LIC policies because of
safety and rest of the respondent’s opted for private players for higher returns. The study area is
limited to Jabalpur district, of Madhya Pradesh and sample size is 150
Policyholders of LIC and different private life insurers have been selected through a stratified and
purposive sampling method.

Singh (2014):

Conducted a sample survey on 255 respondents of Uttar-Pradesh to analyze life insurance

consumer behavior. Main purpose for which the study was conducted was to assess the socio-
economic status of respondents and to examine the impact of status on insurance purchasing
capacity. The study shows that maximum people invest for the purpose of tax rebates and family
safety. He found that major insurance products be child plan and pension plan. He even found that
maximum people like to get insurance product directly from insurance agents followed by banks,
financial institutions, and brokers. It was found that government servicemen of 26-45 years of age
buy more insurance products and middle-income group 100000-300000 people buy more
insurance policies.

Sandeep Chaudhary (2016):

Has extracted six factors that influencing consumer behavior namely customized and timely
services, better company reputation, customer convenience, better service quality, tangible
benefits and effective customer relationship management. This study revealed that new and
innovative products will enhance better customer relationship management basing on sample study
of 100 respondents.

N. Natasegara, S. Ganesan and S. Rajendran (2006):

Study titled “Socioeconomic factors influencing the decision in taking life insurance policies”. The
objective of the study was to analyze the socioeconomic factors that are responsible for taking life
insurance policies and to examine the preference of the policyholders towards various types of
policies of LIC. From the analysis it was found that factors such as age, educational level and sex
of the policy holders are insignificant but income level occupation and family size are significant
while deciding on taking an insurance policy. From the analysis, it is inferred that respondents
belonging to the age group between 31 to 40 years are very much interested in taking a life
insurance policy.

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Kirubashiniv (1991):

Study was undertaken to know the level of awareness, preference and factors influencing the policy
holdings and to know the relationship between policy holdings and influencing factor. The study
found that majority of the respondents were aware of the endowment policy and they preferred it
as their choice. The study also revealed that there is relationship between individual factors like
age, gender, income and policy holdings.

Kutty Shashidharan (2012):

In his article entitled "Finance- The Vital Blood Stream of a Life Office" discussed an overview
of financial management including financial decisions, profit testing and allocation of capital,
liability management, assets management, solvency and financial soundness and risk management.
It gives a brief idea about the financial management of life insurance business.

Kirti and Vijay (2011):

Pointed out the relevance of micro insurance for the upliftment of rural poor and also focused on
the initiatives taken by private and public insurance companies in the growth of rural India. They
stated that micro insurance is a usually accepted important strategy to improve sustainable
economic development and alleviate poverty. It made financial systems more comprehensive by
improving access to savings, credit and insurance.

Karthiga and Vadivalagan (2000):

Analyzed the influence of gender and age factors in the purchase decision of policy holders in
Dharmapuri District. They found that gender and age factors influenced the purchase decision of
the policyholders. There was no significant difference between the factors motivating customers
in favor of an insurance product across different age categories of respondents. Brand loyalty rated
lowest among customers while selecting and purchasing insurance product.

Festus (2011):

Evaluated the factors underlying consumer perception towards investment in life insurance. The
customers considered most important factor was company loyalty and the last was company-client
relationship. The recommendations were that the insurance companies should concentrate on
consumers‟ loyalty, service quality, ease of procedures, satisfaction level, company’s image and
company-client relationship.

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Alero and Shuaibu (2011):

Identified that the acceptability and coverage of micro- insurance in rural areas. The factors
affected to the policyholders‟ decision like peoples‟ level of income, availability of infrastructural
facilities in rural areas, level of education and property ownership of the rural dwellers. The study
suggested that micro insurance providers should start with such schemes which focus on the major
occupation of the rural inhabitants, which was farming.

15
 CHAPTER 3

INDUSTRY ANALYSIS

AND

COMPANY PROFILE

16
3.1 INDUSTRY ANALYSIS:
India’s Insurance industry is one of the premium sectors experiencing upward growth. This upward
growth of the insurance industry can be attributed to growing incomes and increasing awareness
in the industry. India is the fifth largest life insurance market in the world's emerging insurance
markets, growing at a rate of 32-34% each year. In recent years the industry has been experiencing
fierce competition among its peers which has led to new and innovative products within the
industry. Foreign Direct Investment (FDI) in the industry under the automatic method is allowed
up to 26% and licensing of the industry is monitored by the insurance regulator the Insurance
Regulatory and Development Authority of India (IRDAI).
MARKET SIZE:
The insurance industry of India has 57 insurance companies - 24 are in the life insurance business,
while 34 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the
sole public sector company. There are six public sector insurers in the non-life insurance segment.
In addition to these, there is a sole national re-insurer, namely General Insurance Corporation of
India (GIC Re). Other stakeholders in the Indian Insurance market include agents (individual and
corporate), brokers, surveyors and third-party administrators servicing health insurance claims.
The insurance industry has undergone numerous transformations in terms of new developments,
modified regulations, proposals for amendments and growth in 2022. These developments have
opened new avenues of growth for the industry while ensuring that insurers stay relevant with
changing times and the latest digital disruptions
The Insurance Regulatory and Development Authority India (IRDA) are vigilant and progressive
and is determined to achieve its mission of ‘Insurance for all by 2047’, with aggressive plans to
address the industry’s challenges.
The growth of the insurance market is being supported by important government initiatives, strong
democratic factors, conducive regulatory environment, increased partnerships, product
innovations, and vibrant distribution channels.
Insurance Industry was largely dominated by offline channels like corporate agents, offline brokers
or banks. Today, rapid digitization, product innovation and progressive regulation policies have
made it possible for consumers to buy insurance through multiple distribution channels with the
click of a button. The instability of the covid-19 pandemic highlighted the necessity for consumers
to invest in products that would increase financial security, one of them being life insurance.

The insurance industry in India has witnessed an impressive growth rate over the last two decades
driven by the greater private sector participation and an improvement in distribution capabilities,
along with substantial improvements in operational efficiencies.

Private players have seen decent growth in individual single premium, group single premium, and
individual non-single premium. Private Life Insurers are expected to grow their retail APE at a
CAGR of over 17% between 2021-23, and new retail term premiums are expected to double in 5
years. The Private Non-Life insurance segment is forecasted to grow at 14% in FY23.

17
According to the latest data released by the insurance regulator – the Insurance Regulatory and
Development Authority of India - LIC improved its market share by 67.72% as of October, a gain
of 447 basis points (bps). At the end of 2021-22, private players had 36.75% share of the life
insurance market, while LIC had 63.25%.

As of November 2022, life insurers’ have reported a 34.71% year-on-year (YoY) increase in
premiums to Rs 2.06 trillion (US$ 25 billion), with LIC’s premium witnessing 42% growth and
private insurers growing 21.48% YoY. LIC’s group single premium was up 53% YoY during this
period and individual non-single premium up 14.6%.

The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023.
India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at 3.2%
and non-life insurance penetration at 1.0%. In terms of insurance density, India’s overall density
stood at US$ 78 in FY21.

Premiums from India’s life insurance industry is expected to reach Rs. 24 lakh crore (US$ 317.98
billion) by FY31. In FY23 (Until October 2022), premiums from new businesses of life insurance
companies in India stood at US$ 25.3 billion. In October 2022, life insurers’ new business
premiums grew to Rs. 15,920.13 crore (US$ 1.94 billion), according to Life Insurance Council
data. The gross first-year premium of life insurers increased by 12.93% in 2021-22 to Rs.
314,262.42 crore (US$ 40.06 billion).

Between April 2021-March 2022, gross premiums written off by non-life insurers reached Rs.
220,772.07 crore (US$ 28.14 billion), an increase of 11.1% over the same period in FY21. In May
2022, the total premium earned by the non-life insurance segment stood at Rs. 36,680.73 crore
(US$ 4.61 billion), a 24.15% increase as compared to the same period in the previous year. The
market share of private sector companies in the general and health insurance market increased
from 48.03% in FY20 to 49.31% in FY21. Six standalone private sector health insurance
companies registered a jump of 66.6% in their gross premium at Rs 1,406.64 crore (US$ 191.84
million) in May 2021, as against Rs. 844.13 crore (US$ 115.12 million) earlier.

According to S&P Global Market Intelligence data, India is the second-largest insurance
technology market in Asia-Pacific, accounting for 35% of the US$ 3.66 billion insurtech-focused
venture investments made in the country.

18
 According to S&P Global Market Intelligence data, India is the second-largest insurance
technology market in Asia-Pacific, accounting for 35% of the US$ 3.66 billion insurrect-focused
venture investments made in the country.

INVESTMENTS & RECENT DEVELOPMENTS:

The following are some of the major investments and developments in the Indian insurance sector.

• With the introduction of new private sector companies, the insurance sector in India gained
momentum in the year 2000.

• India allowed private companies in insurance sector in 2000, setting a limit on FDI to 26%, which
was increased to 49% in 2014 and further increased to 74% in the Union Budget (Feb’21).

• The market share of private sector companies in the non-life insurance market rose from 15% in
FY2004 to 49.3% in FY2021.

• Private insurers like HDFC, ICICI and SBI have been some tough competitors for providing life
as well as non-life products to the insurance sector in India.

• The IPO of Life Insurance Corporation (LIC) of India was the largest IPO ever in India and the
sixth biggest IPO globally of 2022. As of November 2022, listing of LIC accounted for more than
a third of resources mobilized in the primary equity market until November 2022.

• Insurance market in India is expected reach US$ 222 billion by 2026.

19
• Robotic Process Automation (RPA) and AI will occupy center stage in insurance, driven by newer
data channels, better data processing capabilities and advancements in AI algorithms.

• Bots will become main stream in both the front and back-office to automate policy servicing and
claims management for faster and more personalized customer service.

• Insurers can now launch new health insurance products without IRDAI’s nod. Earlier the
flexibility was given for group insurance products but now retail products have also come under
the new norms.

• The insurance industry is expected to use this opportunity for introduction of customized and
innovative products, expansion of the choices available to the policyholders in order to address the
dynamic needs of the market, which will further help in enhancing the insurance penetration in
India.

• Bajaj Allianz Life Insurance, a private life insurer, has entered into a strategic partnership with
City Union Bank, one of the oldest private sector banks in India. This partnership will help the
private life insurer offer a wide array of life insurance solutions to the bank’s existing and future
customers, across their 727 branches.

• In October 2022, Policy bazaar’s PB Partners launches its mobile app to facilitate the ease of
insurance business for its advisors digitize their insurance business.

• Canara HSBC Life Insurance launched its ‘Canara HSBC Life Insurance App’ on the 75th
Independence Day of India. The app, available on android, iOS devices and web portal, offers
access to policy details, the option to receive timely alerts, pay the premium, and track fund value
among others.

• ICICI Lombard and Airtel Payments bank have entered into a partnership for providing cyber
insurance in February 2022.

• Probus Insurance receives US$ 6.7 million in funding from a Swiss impact fund in December
2021.

• Companies are trying to leverage strategic partnership to offer various services as follows:

• In November 2021, ICICI Lombard collaborated with Vega to provide a personal accident
insurance cover with every online Vega helmet purchase to increase road safety awareness among
customers.

• In November 2021, ICICI Prudential Life Insurance partnered with NPCI Bharat Bill Pay, a
subsidiary of National Payments Corporation of India (NPCI), to offer Click Pay feature to its
customers.

• In November 2021, the Competition Commission of India (CCI) approved HDFC Life Insurance’s
acquisition of 100% shareholding in Exide Life Insurance. The move is expected to strengthen
HDFC Life’s position in South India.

20
• In November 2021, Willis Towers Watson acquired the remaining 51% shares in WTW India,
taking the company’s holding in WTW India to 100%.

GOVERNMENT INITIATIVES

The Government of India has taken number of initiatives to boost the insurance industry. Some of
them are as follows:

• The Union Budget 2023-24 has proposed to limit the income tax exemption on the proceeds of
high value life insurance policies. Mooted as part of an emphasis on better targeting of tax
concessions and exemptions, the proposal means that income from life insurance policies with an
aggregate premium up to Rs. 5 lakh (US$ 6,075) will be exempt from taxation.

• The government’s flagship initiative for crop insurance, Pradhan Mantri Fasal Bima Yojana
(PMFBY), has led to significant growth in the premium income for crop insurance.

• In 2022, the Indian government plans to sell a 7% stake in LIC for Rs. 50,000 crore (US$ 6.62
billion). This is the largest initial public offering (IPO) in India.

• In November 2021, the Indian government signed an agreement with the World Bank for a US$
40 million project to advance the qualities of health services in Meghalaya, including the state’s
health insurance programme.

• In June 2021, the government extended a Rs. 50 lakh (US$ 66.85 thousand) insurance coverage
scheme for healthcare workers across India until the next one year.

• In February 2021, the Finance Ministry announced to infuse Rs. 3,000 crore (US$ 413.13 million)
into state-owned general insurance companies to improve the overall financial health of
companies.

• Under Union Budget 2021, fund of Rs. 16,000 crore (US$ 2.20 billion) has been allocated for crop
insurance scheme.

3.2 ETOP Analysis of Insurance:

An ETOP (Environmental Threats and Opportunities Profile) analysis of the insurance sector in
India involves assessing the external factors that can affect the industry's performance. These
factors can be categorized into threats and opportunities. Here's an ETOP analysis of the insurance
sector in India:

❖ Environmental Threats:

Regulatory Changes: Frequent changes in regulations and policies by the Insurance Regulatory
and Development Authority of India (IRDAI) can pose a threat. Sudden changes may require
insurers to adapt quickly, impacting profitability.

21
Economic Downturn: Economic recessions or downturns can lead to a decrease in disposable
income, which may result in reduced demand for insurance products, especially non-essential ones
like life insurance policies with high premiums.

Competition: Intense competition among private and public insurance companies can lead to price
wars, reduced profit margins, and a struggle to gain market share.

Cybersecurity Risks: With the increasing digitization of insurance processes and data, the sector
is susceptible to cyberattacks, data breaches, and fraud, which can undermine customer trust.

Natural Disasters: India is prone to natural disasters like earthquakes and floods. Insurance
companies may face a surge in claims during such events, which can strain their financial
resources.

Healthcare Inflation: Rising healthcare costs can increase the premiums of health insurance
policies, potentially making them less affordable for the average consumer.

Environmental Opportunities:

Growing Middle Class: The expanding middle-class population in India represents an

opportunity for insurance companies to tap into a larger customer base, especially for life insurance
and health insurance products.

Digital Transformation: The adoption of digital technology and online distribution channels
presents opportunities for insurers to reach a wider audience, streamline operations, and enhance
customer experience.

Government Initiatives: Government-led schemes like Pradhan Mantri Jan Dhan Yojana,
Ayushman Bharat, and crop insurance programs create avenues for insurers to collaborate and
provide coverage to underserved segments.

Investment Opportunities: Insurance companies can generate significant income through

prudent investment strategies, leveraging India's growing financial markets.

Innovative Products: The development of new insurance products catering to emerging risks,
such as cyber insurance and pandemic insurance, can open up new markets and revenue streams.

Cross-Selling and Bancassurance: Collaborations with banks for bancassurance and cross-
selling opportunities can help insurers reach a broader customer base.

Rural and Microinsurance: Expanding into rural areas and offering microinsurance products can
address the needs of the underserved and boost premium income.

Long-Term Planning: The emphasis on long-term financial planning in India can encourage the
sale of life insurance and retirement products.

22
Global Expansion: Indian insurance companies can explore international markets through
partnerships and acquisitions, diversifying their revenue streams.

In conclusion, the insurance sector in India faces a combination of threats and opportunities. It
must adapt to changing regulations, leverage technology, and innovate to remain competitive and
meet the evolving needs of consumers. The sector's growth potential is substantial, given India's
demographic trends and government initiatives, but it also requires prudent risk management to
navigate external challenges effectively.

3.3 COMPANY PROFILE: (INSPLORE TLS CONSULTANCY):

INSPLORE is the choice of Multinationals and leading Indian Businesses because it is the
preferred talent acquisition partner for them. Our Experts are helping the talent seeker and the Job
Seeker to find each other: We Inspire, You Explore.
We, as an expert in financial advisory, realize the need of every customer who is looking for
financial independence and help them to reach that level of financial freedom. We understand how
the perception regarding the value of money changes as per different individuals’ desires. We
extend a helping hand to customers by assisting them in making crucial financial decisions and
managing their wealth effectively to ensure that our customers stay stress free and get rid of their
financial worries.
We believe in timely adaptation with the dynamic environment in order to deal with any challenges
ahead with utmost enthusiasm because we understand the importance of taking the right action at
the right time to cope with the dynamic environment.
INSPLORE is an expert in financial advisory, realize the need of every customer who is looking
for financial independence and help them to reach that level of financial freedom. It understands
how the perception regarding the value of money changes as per different individuals’ desires. We
extend a helping hand to customers by assisting them in making crucial financial decisions and
managing their wealth effectively to ensure that our customers stay stress free and get rid of their
financial worries. It is also a preferred talent acquisition partner, for Multinationals and leading
Indian Businesses. It provides recruitment and talent acquisition services to both large and small
organizations. The Experts are helping the talent seeker and the Job Seeker to find each other: ‘We
Inspire, You Explore’

Identity

Insplore is dedicated to empower with relevant Jobs & Growth Opportunities. We are a successful
Conglomerate with the experts of Financial Advisors on our panel. Have a Team of Professionals
working every day to provide HR as well as Financial Solutions to the Companies/ Clients.

Mission

Thrive to provide best wealth management advice through honest financial solutions as well as
inspire the candidates to explore job opportunities across various industrial sectors.

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Vision

Our vision is to become the most trusted financial advisor as well as most valuable recruitment
service provider.

Department profile:
Life insurance product company info – Headquartered in Mumbai, India First Life Insurance
Company Limited (India First Life), with a paid-up share capital of INR 663 crore, is one of the
country's youngest life insurance companies. Our key differentiators are our simple, easy to-
understand products that are fairly-priced and efficiently serviced.
It started as a joint venture of between two of India’s – Bank of Baroda (44%) and Andhra Bank
(30%), and UK’s financial and investment company Legal & General (26%).
‘Traditional Money Savings Plan: For the modern you who values tradition!’
India First Maha Jeevan Plan and India First Maha Jeevan Plus Plan is a participating, non-linked
endowment plan that offers an assured maturity amount plus a revisionary bonus declared by the
company every financial year end and terminal bonus, if any.
Other important Points:
Collaborations: N.A.
International Certificates: N.A.
Company Turnover: Under 1 Crore
Number Employees: 8-12 Employees

Role in company-
- We are in the sales and marketing department.
- India First Maha Jeevan plan and India First Maha Jeevan plus plan is the product which is
assigned to us.
- Along with it we are engaged in creating the promotional strategies for the company.
- Worked together with corporate sales manager. - Guide the new intern about the product and
market scenario.
- Work is done alongside with mentor - We were taught about different investment policies & how
to compute taxes.
- Daily sharing the market update and the motivational quotes to mentor. - Daily reporting for the
data sheets of prospective client.

24
- Presenting a power point presentation about the bank & insurance industry and explaining about
different companies, their market share and all the relevant information
- Working on tax calculation on different policy and scheme with mentor.

SWOT Analysis-
Consulting firms provide professional services to businesses. There is a lot of competition among
consulting firms to secure and maintain clients, and many factors that lead a client to select one
consulting firm over another. As such, it is helpful for consulting firms to regularly assess the
marketplace and their competitiveness in the market. One tool for analyzing a firm’s competitive
market position is the SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities
and Threats. This tool utilizes data to provide a realistic overview of the market and
competitiveness. The SWOT analysis of a firm can provide a snapshot of current conditions for
business.
Strength –
- Strong compliance
- Have the existing loyal customer
- Working with companies’ products which have excellent reputation.
- Strong and motivated team
- Quality and effective performance - Working with high standards and privacy.

Weakness –
- Slow process due to paper work
- Working with Limited product and services
- Available in limited location (Physical presence)

Threats –
- Changing laws and regulations
- Less demands for certain projects’ product and services
- Large Competitors products or services

25
Research Problem –
In India still many people don’t have the life insurance policy which is very important from safety
point. People are not aware about well policies from different companies. The factor what the
consumer analyses before buying the policy and their current position can provide useful insights
to companies. The preference about the companies will also provide insights about their buying
Behavior. The research paper will discuss all the points. The inference would also be very useful
for the companies to understand the buying behavior and will provide the base to management for
making better strategies according to customer behavior and preferences.

Research Objectives –
The research will study the buying behavior of insurance policy and the factor they majorly
considered while buying a policy. The research will also aim to understand the consumer
preference and their current position.
Primary –
-To understand the buying behavior of consumer
-Understanding the relation between the household income and insurance policy.
Secondary –
-Consumer preference for IFLI Company
-Impact of advertisement.

Research Hypothesis
Hypothesis 1
Null Hypothesis: There is no significant impact of Interest rate with respect to buying behaviour
of consumer.
Alternate Hypothesis: There is a significant impact of Interest rate with respect to buying behavior
of consumer.
Hypothesis 2
Null Hypothesis: There is no significant impact of household income with respect to insurance
policy.
Alternate Hypothesis: There is a significant impact of household income with respect to insurance
policy.

26
Hypothesis 3
Null Hypothesis: The entire factor is not differed in their level of importance.
Alternate Hypothesis: All the factor are differed in their level of importance.

27
 CHAPTER 4
RESEARCH METHODOLOGY

28
Research type-
It is descriptive research under conclusive research design.

Sample size-
In this particular study a sample is collected from 104 respondents and 96 responses are used to
apply the various statistical tools. The secondary data is collected from internet and companies’
documents.

Sampling method-
Convenience sampling is used while selecting the sample for the study. As the name suggests itself
when population elements are selected for inclusion in the sample based on the ease of access, it
can be called convenience sampling.

Nature of data-
Primary data is used to find the answers to the objectives and Secondary data was collected from
Internet and company’s documents for all information.

Data collection method-

A structured questionnaire was framed and distributed to the respondents through direct interview
method and it contains two parts. Primary data was collected through filling up the Google form
and Questionnaire by direct personal & Telephonic interview. The Secondary data was collected
from Internet & companies documents.

IBM SPSS 22 version software was used for analysis and statistical tools like frequency
distribution, percentage analysis, Crosstab and Chi Square test was used to interpret the data and
Microsoft excel is used for charts and tables.

29
30
31
32
33
34
35
36
37
Hypothesis 1
H0: There is no significant impact of Interest rate with respect to buying behavior of consumer.
H1: There is a significant impact of Interest rate with respect to buying behavior of consumer.
Independent factor: Interest rate, Dependent factor: Buying behavior
Test – Regression Model

38
Hypothesis 2

H0: There is no significant impact of household annual income with respect to insurance policy.
H1: There is significant impact of household annual income with respect to insurance policy.
Independent factor: Household annual income, Dependent factor: insurance policy.

39
40
41
Hypothesis 3
H0: All the factor are not differed in their level of importance.
H1: All the factor are differed in their level of importance.
Independent factor: Interest rate/ Return, Safety, Tax benefit, Liquidity,
Settlement ratio, Flexibility, Facility to Track policy over App/ website
Test applied - Friedman Test

42
Findings –
➢ 60.4% of respondents gave importance to go through advertisement before buying an
insurance policy. For consumers the advertise is effective tool to know about company in
buying decision.

➢ 69.8% chosen Interest rate/ return factor as important and above in scale. Consumer give
importance to return of investment while purchasing the policy.

43
 ➢ Tax benefit is most important factor chosen by respondents while buying policy i.e., 82.3%.
Consumer give importance to the tax factor which they save by claim.

➢ 54.2 % very strongly preferred IFLI Company policy. More than half also prefer the India
first Life insurance in buying the insurance.

➢ The Buying behavior of respondents are positive i.e.,51% and very positive i.e., 39.6%.
Consumer is overall having the positive behavior towards buying the insurance.

➢ The consumer would have the positive behavior if there is a higher interest rate / return.
Return on investment is important factor by which consumer have positive behavior toward
buying policy.

➢ 74.07% respondents with household annual income in a range of Rs.10,00,000 and above
already have the insurance policy. High income group are currently the major market for
insurance companies.

➢ There is a significant impact of Interest rate with respect to buying behavior of consumer.
This has been proved by accepting the alternative hypothesis.

44
 CHAPTER 5
DATA ANALYSIS AND INTERPRETATION

45
46
47
 ➢
48
 ➢
49
50
k

51
,km

CHAPTER 6
FINDINGS, CONCLUSION & RECOMMENDATIONS

52
Findings –

❖ 60.4% of respondents gave importance to go through advertisement before buying an

insurance policy. For consumers the advertise is effective tool to know about company in
buying decision.

❖ 69.8% chosen Interest rate/ return factor as important and above in scale. Consumer give
importance to return of investment while purchasing the policy.

❖ Tax benefit is most important factor chosen by respondents while buying policy i.e., 82.3%.
Consumer give importance to the tax factor which they save by claim.

❖ 54.2 % very strongly preferred IFLI Company policy. More than half also prefer the India
first Life insurance in buying the insurance.

❖ The Buying behavior of respondents are positive i.e.,51% and very positive i.e., 39.6%.
Consumer is overall having the positive behavior towards buying the insurance.

❖ The consumer would have the positive behavior if there is a higher interest rate / return.
Return on investment is important factor by which consumer have positive behavior
toward buying policy.

❖ 74.07% respondents with household annual income in a range of Rs.10,00,000 and above
already have the insurance policy. High income group are currently the major market for
insurance companies.

❖ There is a significant impact of Interest rate with respect to buying behavior of consumer.
This has been proved by accepting the alternative hypothesis.

❖ There is significant impact of household annual income with respect to insurance policy.

❖ This has been proved by accepting the alternative hypothesis.

53
Conclusion

The study conclude that consumer buy the insurance policy by giving importance to various
factor such as tax benefits, flexibility, liquidity, website /app and interest rate/return. Different
factor has different importance level and tax rate is most important factor which the consumer is
going to claim under section 80 (c) in the income tax act 1961. The higher income group are
currently the major market for insurance companies. The consumer also goes through the
advertisement before buying the policy. The consumer preferred LIC and IFLI companies for
buying insurance policy. Overall, the consumer is satisfied towards buying insurance policy. So,
the companies can plan for the policy keeping the competitors i.e., consumer preferred
companies and other buying factor which consumer consider before buying. It will help the
company to create better strategy.

Recommendation –

✓ The company can focus more focus on advertisement as consumer goes for advertisement
before buying a policy. Companies can use different marketing strategies for the same.
Company can also create the modified version if policy for middle and lower segment
income group as these group currently did not have the policy. Companies can consider
this factor i.e., tax benefits, flexibility, liquidity, website /app and interest rate/return as
important because these factors may provide the opportunity to company for better market
and provide the edge over competitors.

✓ Promotion strategy- The company can go for different promotion strategy which would
help to increase the awareness level and knowledge of consumer. Hashtag marketing,
different digital marketing are the new trends of marketing which company can adopt and
get the edge over the competitors.

✓ Target market-
✓ The company can also target the middle and lower segment by modifying the exciting
policy which would be suitable for middle and lower segment.

54
Future Scope of Study
There was a limitation in accessing the data and large sample size, Obtaining the large number of
potential consumers can provide the better insights. While going through different data we also
find about the insurance policies of different companies. In different insurance companies’
customer have different buying Behavior. So, there is a future scope of study on consumer
buying behavior with respect to individual companies. Further the researcher can also study the
experience of consumer from the particular company. Many of consumers are planning to
safeguard their life in future coming days mostly for their retirement period. Accordingly, for
this Insurance has become a vital need nowadays.

55
 CHAPTER 7
BIBLOGRAPHY AND REFERENCES

56
 1. (Chaudhary, 2016) Chaudhary, S. (2016). Consumer Perception Regarding Life
Insurance Policies: A Factor Analytical Approach. International Journal of Information
Movement, I Issue III (6), 30–40.

2. Uma Maheswari, D. (2018). An Empirical Investigation on Understanding the Factors

Influencing Consumer Buying Behavior towards Life Insurance. 9(March), 71–79.

3. (Deshmukh & Jadhav, 2018) Deshmukh, S., & Jadhav, R. (2018). “Customers perception
for taking life insurance: A critical analysis of life insurance sector in Nagpur.” SAARJ
Journal on Banking & Insurance Research, 7(3), 4. https://doi.org/10.5958/2319-
1422.2018.00009.7

4. S. EZILARASI, Dr. M. Kavitha (2020) A STUDY ON FACTORS AFFECTING

CUSTOMERS INVESTMENT TOWARDS LIFE INSURANCE POLICIES IN
CHENNAI CITY. Journal of Critical Reviews, 7 (9), 3317-3322.
doi:10.31838/jcr.07.09.506

5. (Singh & Bansal, 2020) Singh, R., & Bansal, R. (2020). Customer Preferences in Life
Insurance Industry — A Case Study of Bareilly, Uttar Pradesh. December.

6. (Muthusamy & Yuvarani, 2021) Muthusamy, A., & Yuvarani, R. (2021). A Study on the
Customer’ s Perception Regarding Insurance Policies with Reference To Salem District
of Tamil Nadu. 9(6), 293–299.

7. (Gajula & Bhagavatam, 2019) Gajula, S., & Bhagavanth, P. (2019). Exploration on
Consumer’s Perception and Buying Behavior of Health Insurance Policies in Hyderabad
City.

8. (Ragunathan, 2016) Ragunathan, V. M. (2016). A study on consumer behavior towards

life insurance products with refence to Idi Fortis Company Limited, Din Digul District.
Indian Journal of Applied Research, 6(8), 182–185.
file:///C:/Users/marxn/Downloads/10916- 54592-1-PB.pdf

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 CHAPTER 8
APPENDIX

58
 Annexure 1
Appendix QUESTIONNAIRE:

1. Age –
* Less than 24 years old
*25-34 years old o 35-44 years old
*45 and above

2. Gender –
*Male
*Female

3. Location –
* Madhya Pradesh
* Maharashtra

4. Household annual income –

* Up to 5,00,000
* 5,00,000 – 10,00,000
* 10,00,000 and above

5. Highest degree you have completed –

* non-matriculate
* High School (Matriculation/ 12th)
*Bachelor’s Degree
* Professional/Master’s Degree o Doctorate Degree

6. Marital and Family Status –

*Single
*Married without children
*Family with dependent children o Family with independent children

7. Do you have life insurance policy –

*Yes
* No

59
 8. Which of the company life insurance policy are you aware of –
*Life Insurance Corporation of India Company
*SBI Life insurance company
*Max life insurance company

60