“A STUDY ON THE AWARENESS AND USAGE OF MICRO-INSURANCE PRODUCTS WITH SPECIAL REFERENCE TO IDBI FEDERAL LIFE

INSURANCE COMPANY IN BANDARSINDRI AND BADASOLI AREAS NEAR TO AJMER”

SUBMITTED BYRASMITA MANJARI GARANAYAK

PGDM-RM

CORPORATE GUIDE: FACULTY GUIDE:MR. ANAND BANSAL PROF. ULLAS P. RAMAKRISHNAN ASSISTANT BRANCH HEAD FMS-IRM, JAIPURIDBI FEDERAL LIFE INSURANCE, JAIPUR

INTRODUCTION

Micro insurance is defined as insurance provided for low-income people by a variety of insurers, run in accordance with generally accepted insurance principles, and funded by premiums.

Risk protection

Low premiums and low coverage limit

It helps them to protect the gains in the event of any unfortunate events.

Common products of microinsurance are term plan,endowment plan, crop insurance etc.

A micro-insurance policy is:A general or life insurance policy with a sum assured of Rs. 50,000 or less

COMPANY PROFILE

•IDBI Federal Life Insurance is one of India’s growing life insurance companies.

•IDBI Federal Life Insurance Company is established in March 2008, a joint venture between three major companies- IDBI Bank- India’s premiere industrial bank, Federal bank – private sector bank and Ageas - international insurance company operating in Europe. IDBI Bank holds 48% equity whereas Federal and Ageas hold 26% of equity each.

•IDBI Federal distributes its products through a multi-channel network consisting of Insurance agents, Bancassurance partners (IDBI Bank, Federal Bank) Direct channel, and Insurance Brokers.

Products provided by the Company:

Microinsurance Group plan

OBJECTIVES OF THE STUDY:

•To know the awareness of microinsurance.

•Identifying the major issues of adoption of microinsurance products.

•To suggest improvement on how to increase sale of micro-insurance products.

RESEARCH METHODOLOGY:

Universe: Bandarsindri and Badasoli

Sample size: 105

Sampling Method: Convenience Sampling

Research Design: Descriptive

Data Collection Method: Primary data(Interview schedule) Secondary data(Company documents, websites, journals )

.

ANALYSIS AND INERPRETAIONS

Frequency Percent

Valid Percent

Cumulative Percent

Valid Yes 17 16.2 16.2 16.2

No 88 83.8 83.8 100.0

Total 105 100.0 100.0

Table No-1 Awareness of microinsurance

Fig.1

Respondents have seen the advertisement of different companies

LIC(100%) ICICI Bajaj Allianz IDBI Federal Birla Sun Life SBI Life0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fig.2

Fig.3

Respondents who have taken microin-surance products

yes(41.18%)

No(58.82%)

Respondents have taken different products of microinsurance

Fig.4

Crop(0%) Health(5.88%) Livestock(0%) Life(35.29%) Asset(0%) Disability(0%)0%

5%

10%

15%

20%

25%

30%

35%

40%

Respondents prefer the payment mode of premium for microinsurance products

Mon

thly

(28.5

7%)

Quarte

rly(1

4.29%

)

Half ye

arly

(57.1

4%)

Annua

lly(0

%)

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Fig:-5

Reasons for investing in microinsurance products

To sec

ure f

amily

(35.2

9%)

To sec

ure c

rop(

0%)

To sec

ure a

sset(0

%)

To sec

ure l

ive-

stock

(0%

)

For he

alth(

5.88%

)0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%

Fig:6

Major issues faced by respondents

Unawar

enes

s of m

icro

insu

ranc

e(57

.14%

)

Prem

ium

is n

on-re

fund

able(1

4.29

%)

Don't

trus

t priv

ate in

sura

nce Co.

(28.

57%

)0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Fig:7

From where did respondents come to about microinsurance

agen

ts of c

ompan

y(58.8

2%)

News p

aper(

0%)

Road sh

ows(11.7

6%)

Fairs a

nd festi

vals(2

9.41%

)0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Fig:8

FINDINGS:

•16.2% of respondents are aware and 83.8% are not aware of microinsurance.

•Major issues faced by respondents 57.14% -unawareness of microinsurance 14.29%-premium is non-refundable 28.57%-Don’t trust private insurance companies

•82.35% respondents came to know about microinsurance with the help of agents of insurance company.

LIMITATIONS:

•Time period is short.•Awareness of microinsurance is very low in areas of survey.•Language barrier.

SUGGETIONS

•The company should focus more on the agents as well as local festivals.

•IDBI Federal Life Insurance Company should focus on the rural areas for promotional so that people can aware of products of micro-insurance.