8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
1/55
A
Project Report
On
THE STUDY ON CONSUMER PERCEPTION REGARDING INSURANCE
For
SHARE KHAN Pvt.Ltd.
Pune
Submitted toUNIVERSITY OF PUNE
Submitted By:
Project Guide
SINHGAD INSTITUTE OF MANAGEMENT & COMPUTER
APPLICATION
(SIMCA)
Share Khan Pvt. Ltd. Pune1
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
2/55
Pune-411041
.
TABLE OF CONTENTS
Share Khan Pvt. Ltd. Pune2
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
3/55
Share Khan Pvt. Ltd. Pune
Sr.
No. Title Page No.
1 EXECUTIVE SUMMERY 4
2 INTRODUCTION 6
3 COMPANY PROFILE 18
4 OBJECTIVES OF THE STUDY 24
5 RESEARCH METHODOLOGY 26
6 OBSERVATION & ANALYSIS 28
7 LIMITATIONS 42
8 SUGGESTIONS 44
9 BIBLIOGRAPHY 46
10 ANNEXURE 48
3
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
4/55
Share Khan Pvt. Ltd. Pune4
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
5/55
EXECUTIVE SUMMERY
The project title THE STUDY ON CONSUMER PERCEPTION REGARDING
INSURANCE being carried out forSHARE KHAN LTD.
The evaluation of insurance has been increased through a decade which is best
customer rise. Now a days investment of saving has assumed great importance.
This project is represents an information regarding companys brand awareness and
customer perceptions about the various services which the organization provide. Main
Share Khan Pvt. Ltd. Pune5
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
6/55
objective of the project is to understand the customer investment preferences effectively and
efficiently. For execution of the project methodology adopted collection of data through
questionnaire, processing and analyzing the data.
I hope SHARE KHAN, Pune will recognize this, as well as they take more refer from
the project report. The main objective of the project is to know about perception of customer
towards insurance and, also to know the investing pattern of people in different financial
reports.
IT sector has been given more emphasis for the study of the project because it is the
sector where all the type of Age group, Income class and different level of people represented.
The idea behind the project is to find the customer perception towards the insurance
thats available in market.
Share Khan Pvt. Ltd. Pune6
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
7/55
INTRODUCTION
Insurance in India.
Origin of life insurance.
Role of life insurance.
Need for life insurance.
Share Khan Pvt. Ltd. Pune7
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
8/55
Insurance in India
The insurance industry in India emerged about 200 years ago. In India the insurance was
on track without any rule or any guidelines in the Nineteenth Century. The first insurance
company was life insurance which started its operations on 1818, there after the first general
insurance company was set-up in 1850. Both the industry established very quickly in both
sectors with a rapid growth. After the independence, the insurance market took a dramatic
turn. Until 1956, there were 154 Indian insurers and 16 non-Indian insurers companies were
already on their moves in the life sector.
Share Khan Pvt. Ltd. Pune8
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
9/55
India, with a population of 1 Billion offers great potential and opportunity for the
insurance industry. Currently, two state-owned monoliths - Life Insurance Corporation and
General Insurance Corporation (GIC), run the insurance industry. The General InsuranceCorporation commands the general insurance sector along with four of its fully owned
subsidiaries viz. National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company.
Malhotra Committee, appointed by the Government of India for conducting a study on
insurance, in its report in 1994 stated that only 22% of the Indian population is insured. The
poor reach of insurance in the country and the sheer numbers make India a market with
tremendous potential. The following facts show how under-developed the Indian insurance
business is due to state monopoly and lack of aggressive marketing of insurance policies:
Per capita insurance premium in India is a mere US$ 6, one of the lowest in the world. In
South Korea, the corresponding figure is US$1,338, in USA it is $ 2250 and in UK it is $1589.
Insurance premium in India accounts for a mere 2 per cent of GDP compared to the
world average of 7.8 per cent and G-7 average of 9.2 per cent.
Insurance premium as a percentage of savings is barely 5.95 per cent in India compared
to 52.5 per cent in the UK.
Nationalized insurance companies have not been able to target niche markets that are
currently served poorly or not at all. Life insurance products provide a good example. They
compete with investment and savings options like mutual funds. It is imperative that they
should offer comparable returns and flexibility. For instance, pure protection products like
term assurance account for up to 20 per cent of policies sold in developed countries. In India,
the figure is less than one percent because policies are inflexible. Besides, no Indian life
assurance product is linked to non-traditional investment avenues such as stock market
indices. Therefore, returns are lower than those on other savings instruments.
Share Khan Pvt. Ltd. Pune9
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
10/55
Retail segment or personal lines insurance, especially in general insurance is another
area unexplored. Currently personal insurance, including health, householders, shopkeepers,
personal accident, travel insurance and professional indemnity covers constitute only 12 percent of Indian general insurance premium. This poor figure is largely due to the lack of
adequate distribution channels rather than a lack of products. By tapping such under-served
niches, new entrants can expand the market substantially. Since service and speed will be
valued, a price premium is also possible.
Premium rates are at present set most unscientifically with very little attempt to fine
tune the risk attached to different categories of businesses. The result is that they penalize the
low risk category, which is in majority. This can be seen in the failure to differentiate between
smokers and non-smokers in fixing premium for life and personal accident covers or between
flood-prone areas and dry lands for fire and allied perils cover. This results in a great deal of
cross-subsidization. Low premium rates in one area necessitate higher premium elsewhere.
Mortality tables are not revised for ages and no effort is made at all to re-evaluate the rating of
other classes based on recent loss experiences. Indias insurance industry, private and public,
has its roots in the 19th century. The British Government set up state-run social protection
schemes for its colonial officials, many of which evolved into today is schemes. The first
private insurance company was the Oriental Life Insurance Company, which started in
Calcutta in 1818. Under British rule, many insurers Operated in India. In 1938, the British
passed the Insurance Act, comprehensive insurance Legislation, which remains the
cornerstone of the insurance industry today.
Regulated insurers are divided into two categories: life and general insurance. Life insurance
Includes products like endowments policies and retirement annuities. General insurance
covers all other types of insurance. In 1956, the Indian government nationalized the life
Insurance industry. The reasons given at the time were high levels of fraud in the industry and
a desire to spread insurance more widely, as NEHRU noted at time in parliament, We require
Life insurance to spread rapidly all over the country and to bring a measure of security to our
people. The government combined 154 insurance providers and formed the Life Insurance
Corporation (LIC) of India.
Share Khan Pvt. Ltd. Pune10
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
11/55
General insurance remained in private hands until 1973 when it too was nationalized.
Prior to Nationalization, 68 Indian and 45 non-Indian entities sold insurance. All of these were
absorbed into one giant corporation, the General Insurance Corporation (GIC) with its foursubsidiaries:
Oriental Insurance Company Limited,
New India Assurance Company Limited,
National Insurance Company Limited
United India Insurance Company Limited.
Despite Nehrus desires, in the decades following nationalization, insurance products
were designed primarily for those with regular income streams, i.e., those in formal
employment.
These were overwhelmingly men in urban areas. The poor, working mostly in
agriculture, were largely overlooked by these new companies.
When the ideological winds of change blew in the early the early 1990s, the Indian
government set about liberalizing its insurance markets. It set up a commission of enquiry
under the chairmanship of R N Malhotra. The central outcome of the commission was the
establishment of the Insurance Regulatory and Development Authority (IRDA) that in turn
laid the framework for the entry of private (including foreign) insurance companies. At the
beginning of 2005, there were 14 life and 14 non-life insurers operating in India.
Indias insurance penetration (premiums as a percent of gross domestic product) in
2003 is Low at 2.9 percent, and ranks 54th in the world. In premium collection, the record is
better, at 19th position collecting US$17 billion in 2003. The 2003 ratio of premiums collected
per Capita (insurance density) is 16.4. Compared with a world average of 469.6, Indias
insurance Industry is still at a very nascent stage. Of the US$16.4 per capita expenditure on
insurance, a Mere US$3.5 is spent on general insurance. This is primarily because in India,
non-life Insurance is not considered important and people perceive it as an unnecessary
expenditure.
Share Khan Pvt. Ltd. Pune11
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
12/55
Origin of Insurance in India
Insurance activity in India is going on for more than 150 years. In India, life insurance
in its modern form was brought for the first time by the British. The Oriental Life Insurance
Company started in 1818 in Calcutta was the first to be founded in India by Europeans to help
the widows of their community. The general insurance business in India, on the other hand,
can trace its roots to him Triton Insurance Company Ltd, the first general insurance company
established in the year 1850 in Kolkata by the British. The year 1870, saw the birth of first
Indian Insurance Company namely, Bombay Mutual Life Assurance Society. The basic aim of
Share Khan Pvt. Ltd. Pune12
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
13/55
this company was to insure Indian lives at normal rates since in the earlier period. Indian lives
were treated as subnormal and loaded with an extra premium of fifteen to twenty per cent.
However, right up to the end of 19
th
century, the foreign insurance companies in India had anupper hand in matters of Insurance business. Insuring Indian lives with 10 percent of extra
premium was a common practice prevalent in those times. The Indian Life Assurance
Companies were the first to regulate the life insurance business in 1912. In 1928, the Indian
Insurance companies act enabled the government to collect statistical information about both
life and non life insurance business. Later, the insurance Act of 1938 was passed and
department of insurance under authority of superintendent of insurance was established for the
administration of the Act. Up to 1939, 199 companies were working in India. However, the
period 1939-55 was marked by:
World War II resulting in hasty premium adjustments by Indian companies.
Series of amendments to the insurance Act, 1938.
Appointment of a committee under the Chairmanship of Sir Cowasji Jehanger
to enquire into and to recommend measures to check certain trends and undesirable
features in the management of insurance companies.
The findings of the sub committee on insurance under the National Planning
Commission headed by Pt. Jawaharlal Nehru.
Partition of India.
De-valuation of rupee on September 18, 1949.
The insurance Amendment Act.
Interest yield sagging to the lowest lend of three percent and remaining at that
level over 1947-1949.
The rate war and cut throat competition between insurance companies.
The recommendation of the ruling political party, the Indian National Congress,
to the government that the life sector insurance be nationalized, and
Share Khan Pvt. Ltd. Pune13
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
14/55
The founding of the Jiwanlal Chimanlal Setawad Memorial--The Federation of
Insurance Institutes.
The study of insurance companies of that time clearly reveal that concept of trust ship
which should be cornerstone of life business seemed entirely lacking and most of the
managements had no appreciation of the clear and vital distinction that exists between trust
monies and those that belong to joint stock companies owned by shareholders. So the
nationalization of life insurance business became necessary with a view to-
Provide cent percent security to policy holder,
Ensure the use of life insurance funds for nation building activities,
Avoid wasteful efforts in competition,
Save the dividends paid to shareholder of insurance companies,
Avoid certain undesirable practices adopted by some of the insurance
companies management, and
Spread the gospel of life insurance into the neglected rural areas.
245 Indian and foreign insurance and provident societies taken over by the central
Government and nationalized. In 1956, the Government of India nationalized the life
insurance business. Since then the entire life insurance business is being transacted by the
Life insurance Corporation of India for more than four decades, the LIC has been enjoying
monopoly status enjoying supernormal profits at the expense of consumers in life business in
the country. The LIC by this time has grown manifold. At present it has a network of 7 zones,
100 divisions and over 2000 branches. The annual premium income was US $21 million in
1956. Current business investment in LIC is over US $29 billion. Life insurance funds
constitute approximately 11 percent of gross household saving in financial assets in India, and
a little over 1 percent of gross domestic product. Life insurance Corporation of India, despite
its best efforts, has not penetrated more than 15 percent of the insurance population, which
itself is more than 300 million. Insurance penetration as a measure of percentage of GDP is
very low for India and countries like South Korea are much higher than India. With
Share Khan Pvt. Ltd. Pune14
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
15/55
approximately $7 billion of premium collected annually, India is the 23 rd largest market in the
world. The General insurance business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from January 1, 1973. 107 insures amalgamated andgrouped into four companies, via the national insurance company Ltd., the New India
Assurance Company Ltd., the Oriental Fire and general insurance company Ltd., and the
United India insurance company Le., General insurance company (GIC) was incorporated as a
company. The four constituents of the GIC were to operate on a competitive basis and be
governed by the guidelines structured by the Government of India. Recognizing the need for
reforms in the financial and insurance sector, the government appointed the Malhotra
Committee to seek and identify the measures required for the reform process in the insurance
sector.
The Insurance Regulatory and Development Authority (IRDA)
Background
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority
(IRDA, which was constituted by an act of parliament) specify the composition of Authority
The Authority is a ten member team consisting of
Share Khan Pvt. Ltd. Pune15
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
16/55
a) a Chairman;
b) Five whole-time members;
c) Four part-time members,
(all appointed by the Government of India)
Insurance business is divided into four classes:
I) Life Insurance,
II) Fire Insurance,
III) Marine Insurance and
IV) Miscellaneous Insurance:
Life Insurers transact life insurance business. General Insurers transact the rest. No
composites are permitted as per law.
The Indian insurance industry has today two types of players:
1. Public insurers:
Life insurers: e.g. Life Insurance Corporation of India (LIC)
Non-life insurers: e.g. General Insurance Corporation of India (GIC)
2. Private insurers
Life insurers: e.g. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD
Non-life insurers: e.g. Reliance General Insurance Company Ltd
ROLE OF INSURANCE INDUSTRY IN INDIA
Insurance would ensure less volatility and risk of failure in business and
thus provide for greater financial and societal stability.
Government plans disaster management, arrangement of funds and provides for
social security programs, NGOs and public institutions assist with fund raising and
Share Khan Pvt. Ltd. Pune16
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
17/55
relief assistance. There is considerable impact upon government in these respects.
Insurance substantially steps in to provide these services. The effect would be to
reduce the strain on the taxpayer and assist in efficient allocation of societalresources.
Facilities trade, business and commerce by flexible adaptation to changing risk
needs particularly of the burgeoning service sector.
Insurance sector generates savings and directs the same to deserving
Investments. A sector with potential for business as is the case with Indian insurance
provides incentives to develop it all the more faster.
It enables risk to be managed more efficiently through risk pricing and risk
transfers and this is an area which provides unlimited opportunities in the Indian
context for consulting, broking and education is the post-privatization phase with
newer employment opportunities.
The basis interest of an insurance industry being loss minimization, its
expertise in understanding losses assists it to share the experience across the
economy. Thus enabling better loss control and preservation of national assets. In the
risk pricing and investment decisions the Insurance industry sets the tone for
investment by others in the economy. Informed assessment by the insurance
companies thus signals allocation of resources by others contributing to efficiency in
allocation.
In India visibility of LIC and GIC have been dwarfed by actions of government
and other high profile institutions like ICICI, IDBI, and UTI. Of late AIG is visible
in the media and institutional investors in India are following its investment
announcements keenly. ING Savings Trust and Zurich are in asset management and
are being keenly followed by retail investors.
Share Khan Pvt. Ltd. Pune17
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
18/55
India has reasonably well developed accounting, legal and supervisory
institutions. These support the requirements of the insurance market very well. Othersupport services are expected to readily adapt to the new conditions of the emerging
market.
Private Players in India
The new insurance companies used all channels of advertising from newspapers and
the television to insurance agents and direct mailers. The new companies focused their
campaigns primarily on building an image of trustworthiness and reliability for themselves.
Their advertisement focused on insurance as an investment option and not a mere tax saving
tool. Most of these advertisements carried messages like the familys happiness. It has been
Share Khan Pvt. Ltd. Pune18
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
19/55
more than 5 years since private insurance companies lunched operations in India, which is
depicted in the Table given below.
Company Indian Partner Foreign Insurer Area
Birla Sun life Aditya Birla Group Sun life, Canada Life
Om Kotak Kotak Mahindra Fin.
Old Mutual,
South Africa Life
HDFC-Stand Life HDFC
Standard Life
UK Life
Royal Sundaram Sundaram Finance Roya Sun, U.K.
Life &
Non life
ICICI-Prudential ICICI Prudential, U.K. Life
Max New York Life Max India
New York Life
U.S.A. Life
Tata-AIG Tata group AIG USA
Life &
non Life
ING Vysya Vysya Bank
ING Ins.,
Netherlands Life
Aviva Dabur CGU life, UK Life
Met Life India J & K Bank Met Life, USA Life
Bajaj Allianz Bajaj Auto Allianz
Life &
non Life
Reliance life Ins. A.D.A.G. Genins Life
SBI Life Ins. SBI Cardiff, France Life
Need For Insurance
To provide cash to meet various routine expenses of the family on or
immediately after the death of the income earner of the family.
To preserve the familys accustomed standard of living ever after the death of the
breadwinner.
Share Khan Pvt. Ltd. Pune19
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
20/55
To provide continuous flow of funds for the living spouse.
To allocate income funds for the childrens education.
To provide a retirement income throughout old age.
To provide a reliable savings plan for the future.
To supplement income when earning power is reduced or eroded by illness,
accident or any handicap.
To furnish surplus earnings for the investors should disaster strike.
Share Khan Pvt. Ltd. Pune20
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
21/55
COMPANY PROFILE
Share khan Limited is a retail financial services provider with a focus on equities,derivatives and commodities brokerage execution on the National Stock Exchange of India
Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National Commodity and Derivatives
Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX). Share khan
provides trade execution services through multiple channels - an Internet platform, telephone
Share Khan Pvt. Ltd. Pune21
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
22/55
and retail outlets and is present in 225 cities through a network of 615 locations. The company
was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer Vote.
Share khans equity related services include trade execution on BSE, NSE,
Derivatives, commodities, depository services, online trading and investment advice. Trading
is available in BSE and NSE. Along with Sharekhan.com website, Share Khan has around 510
offices (share shops) in 170 cities around the country
Share khan has one of the best states of art web portal providing fundamental and
statistical information across equity, mutual funds and IPOs. You can surf across 5,500companies for in-depth information, details about more than 1,500 mutual fund schemes and
IPO data. You can also access other market related details such as board meetings, result
announcements, FII transactions, buying/selling by mutual funds and much more.
Share khan Limited is a retail financial services provider with a focus on equities,
derivatives and Commodities brokerage execution on the National Stock Exchange of India
Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National Commodity and Derivatives
Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX). Share khan
provides trade execution services through multiple channels - an Internet platform, telephone
and retail outlets and is present in 225 cities through A network of 615 locations. The
company was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer
Vote.
Service Offer by Share Khan
Technical services
Equity and Derivatives Trading
Depository Services
Share Khan Pvt. Ltd. Pune22
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
23/55
Fundamental Research
Online services
Share Shops
Commodity Trading
Portfolio Management
Dial-N-Trade
ICICI Prudential Company
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial services
group headquartered in the United Kingdom.
Share Khan Pvt. Ltd. Pune23
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
24/55
ICICI was established in 1955 to lend money for industrial development. Today, it has
diversified into retail banking and is the largest private bank in the country. Prudential plc was
established in 1848 and is presently the largest life insurance company in the UK.ICICI Prudential is currently the No. 1 private life insurer in the country.It was one of
the first players to commence operations when the insurance industry was opened to the
private sector in 2000. The company has a network of over 583 branches and over 234,000
advisors;
ICICI Prudential Life Insurance recorded a total new business premium of Rs. 51.6
billion during fiscal 2007 as compared to Rs.26.0 billion during fiscal 2006, a growth of
98.4%. ICICI Prudential Life Insurance was the largest player in the retail segment of the
private sector life insurance market with a market share of about 28% during fiscal 2007 (on
weighted received premium basis).
Registered Office:
ICICI Towers
9th floor, Bandra-Kurla Complex
Mumbai - 400 051.
Tel: 494 3232
ICICI Prudential life insurance tie up with Share khan
ICICI Prudential Life Insurance Company Ltd today said it has entered into a strategic
distribution tie-up with Share khan for distribution of ICICI Prudential Life's protection,
wealth creation, retirement solution and health insurance products to customers across the
country.
Share Khan Pvt. Ltd. Pune24
http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=200706288/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
25/55
The partnership has been established under the corporate agency model. Share khan, a
leading retail brokerage house, can now offer life insurance solutions from ICICI Prudential
Life with this partnership. The tie-up will also substantially strengthen ICICI Prudential Life'spresence in the country.
''Our philosophy is to partner with a limited number of organizations and build
distribution capabilities, around the partner's area of strength,'' said ICICI Prudential Life
Insurance Company Chief (Alternate Channels and Group Sales) Tarun Chugh.
ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life), the leading
private life insurer in India, has announced a strategic distribution tie-up with Share khan, oneof India's leading retail brokerage houses. The partnership has been established under the
corporate agency model and will enable Share khan to distribute ICICI Prudential Life's
protection, wealth creation, retirement solution and health insurance products to their
customers across the country.
Over the years, Share khan has established itself as a financial advisor and a retail
broker and has a large customer base that trusts it for knowledge and expertise in financial
services. With this partnership, they can now offer their customers the added benefit of life
insurance solutions from ICICI Prudential Life. The tie-up will also substantially strengthen
ICICI Prudential Life's presence in the country.
Mr. Tarun Chugh, Chief- Alternate Channels & Group Sales, ICICI Prudential Life
Insurance Company said, "Our philosophy is to partner with a limited number of organizations
which have strong brands and long-lasting, trust-based relationships with their customers and
build distribution capabilities, around the partner's area of strength. Share khan, with its
expertise in the area, is an ideal partner for us. We are sure this partnership will help Share
khan's customers reach us through a channel they already trust."
Mr. Jaydeep Arora, Director, Share khan said, ''Our customers are always looking at
investing in innovative products and this initiative will help us provide world-class products
Share Khan Pvt. Ltd. Pune25
http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=20070628http://news.webindia123.com/news/ar_showdetails.asp?id=706280529&cat=&n_date=200706288/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
26/55
from India's leading private life insurer, besides offering excellent service levels. The products
of ICICI Prudential Life are customer centric and its service levels are excellent and we look
forward to offering them to our customers."
ICICI Prudential Life has a multi-channel distribution strategy to reach customers. In
addition to the advisor channel, the company has distribution arrangements with established
banks and large retail finance distributors.
SCOPE OF THE WORKWhen it comes to investing for the future most people miss the boat simply because the
put off doing the essentials to get started.
Share Khan Pvt. Ltd. Pune26
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
27/55
They procrastinate, usually because they think that investing is too hard, or for some
other reason it really is not possible for them, and/or because theyre intimidated by the
financial works.
To create a financially secure future, it is imperative to start with a can do attitude.
Become a good investor you will also need to acquire knowledge of the financial world and
the various types of investments that are out there. To create lasting wealth, you invest your
money in solid investments that will compound on themselves, and grow your investment
capital year after year.
Share khan is available in more than 170 cities in all over India. Thus, it has access to
India, India Economy rising & here consumer can invest more money in financial instruments.
An average income per house hold is rising. People can invest much more money. Also it tries
to understand customer perception about their services better than the competitors.
The aim of this study is to provide enough information and strategies to help you
decide which investments may suit you.
Share Khan Pvt. Ltd. Pune27
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
28/55
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
29/55
In which plan did customer want to invest.
For whom the customer want to buy the product (Bank, Customers, Advisor, Others)
As far as investment is concerned, how they rank ICICI prudential.
Whether customers are satisfied with fund charges by the company.
To know whether company is able to satisfied the customers queries.
Whether customers are satisfied with ICICI Prudential schemes.
Are the customers satisfied with the ROI charges by the company?
To know whether customer will go for Share khan Ltd. in future.
Share Khan Pvt. Ltd. Pune29
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
30/55
RESEARCH METHODOLOGY
SAMPLING UNITS
Sampling units consist of:-
Retail Investors
Share Khan Pvt. Ltd. Pune30
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
31/55
Corporate Investors.
Total of 25 units constitute the sample for study.
SAMPLING APPROACH
Quantitative approach
Method of primary data collection
Questionnaire
SAMPLING DESIGN
Probability method.
SAMPLE SIZE
Sample size: - 25 Respondents
Sample Type: - Due care was taken that all the 25 respondents included in the study were
homogeneous in all respects. In other words non investors were not included in the sample.
Efforts were also made to include investors who had varying levels of investments frequency
and invested amount.
Share Khan Pvt. Ltd. Pune31
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
32/55
OBSERVATION and ANALYSIS
From the data collection during the survey following information is found:-
Out of total customers surveyed 76% are employees and 24% are businessman.
Share Khan Pvt. Ltd. Pune32
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
33/55
It can thus be inferred that ICICI generates its maximum business from the employees.
Most of the customers have LIFE TIME SUPER PLAN. After that they have PENSIONPLAN after that SMART KID PLAN.
Share Khan Pvt. Ltd. Pune
Life Time Super 16
Pension Plan 6
Smart Kid Plan 3
33
Occupation
24
76
0
10
20
30
40
50
60
70
80
Businessman Serviceman
Types
%Businessm
Servicema
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
34/55
52% rank ICICI Prudential better than others, while 28% ranked good.
Rank %
Share Khan Pvt. Ltd. Pune34
ICICI's Plan
Life Time Super64%
Pension Plan
24%
Smart Kid Plan
12%
Life Time Su
Pension Plan
Smart Kid Pl
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
35/55
better 52
good 28
bad 20
Most of the customers have their sum assured in the range of 100,000 to 300,000 and300,000 to 5,00,000.
0-1,00,000 8
Share Khan Pvt. Ltd. Pune35
Rank of ICICI Pru.
52
28
20
0
10
20
30
40
50
60
better good bad
Ranks
%
bett
goo
bad
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
36/55
1,00,000-3,00,000 40
3,00,000-5,00,000 44
5,00,000+ 8
The customers prefer Yearly (56%) mode of premium payment. 20% of customers prefermonthly payment of premium.
Share Khan Pvt. Ltd. Pune36
Income
8
40
44
8
0
5
10
15
20
25
30
35
40
45
50
0-1,00,000 1,00,000-
3,00,000
3,00,000-
5,00,000
5,00,000+
%
0-1,00,000
1,00,000-3
3,00,000-5
5,00,000+
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
37/55
Most of the ICICI Prudentials customer prefer 0-15 years of policy maturing period.
Share Khan Pvt. Ltd. Pune37
Mode Of Payment
56
24
20
0
10
20
30
40
50
60
Yearly Half Yearly Monthly
T es
%
Yearly
Half Ye
Monthly
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
38/55
44% customers of ICICI prudential are Satisfied with Return of investment (ROI). But36% are not satisfied with Return of investment.
Share Khan Pvt. Ltd. Pune38
Maturing Period
0
10
20
30
40
50
60
70
80
0-15 Year 15+ Years
Period
%0-15 Ye
15+ Ye
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
39/55
16% of the existing customers are ready to invest again in insurance while 36% in mutualfund, 20% in share market and 20% in fixed deposit.
Share Khan Pvt. Ltd. Pune39
44
36
12
8
0
5
10
15
2025
30
35
40
45
%
Satisfied Dissatisfied Very
Satisfied
Delight
Types
ROI
Satisfied
Dissatisfie
Very Satisfi
Delight
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
40/55
Mostly customers (60%) take the insurance for themselves. Only 28% customers take
insurance for their wife.
Share Khan Pvt. Ltd. Pune40
16
36
20 20
8
0
5
10
15
20
25
30
35
40
%
1
Sources
Re Investment
Insuran
MutualFund
Share
Market
Fixed
Deposit
Others
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
41/55
Share Khan Pvt. Ltd. Pune41
Whom You get the Product
Yourself, 60
Wife, 28
Child, 12
0
10
20
30
40
50
60
70
1
T es
%
Your
Wife
Child
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
42/55
48% customer purchase policy from Agent Companies. After that 24% purchase fromadvisors.
Share Khan Pvt. Ltd. Pune42
Purchase
16
48
24
12
0
10
20
30
40
50
60
1
from Whom
%
Bank
Agent Compan
Advisors
Others
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
43/55
48% customers are satisfied with Fund Charges Of ICICI Prudential Company. But 32%customers are not satisfied.
Share Khan Pvt. Ltd. Pune43
Satisfaction With Fund Charges
Satisfied, 48
Dissatisfied, 32
Very Satisfied,
12
Delight, 8
0
10
20
30
40
50
60
1
%
Satisfied
Dissatisfie
Very Satisfi
Delight
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
44/55
32% customer gets the information of ICICI Prudential by Hoardings. After that 28% getfrom Newspaper.
Contribution of Major Market Player in India.
Share Khan Pvt. Ltd. Pune44
Advertisement of ICICI Pru.
T.V., 16
News Paper, 28
Hoardings, 32
Website, 24
0
5
10
15
20
25
30
35
1
Types
%
T.V.
News Pa
Hoarding
Website
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
45/55
Market Player
0%
5%
10%
15%
20%
25%
Birla
Sun
life
HDFC
-StandLife
ICICI-P
rudential
Max
New
YorkLife
Bajaj
Allia
nz
Reliancelife
Ins.
SBILife
Ins.
Name of Companies
Pe
rcentages
Share Khan Pvt. Ltd. Pune
Birla Sun life 12%
HDFC-Stand Life 21%
ICICI-Prudential 18%
Max New York Life 13%
Bajaj Allianz 17%
Reliance life Ins. 11%
SBI Life Ins. 8%
45
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
46/55
LIMITATIONS
Share Khan Pvt. Ltd. Pune46
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
47/55
As I have concentrated on only one branch of Share khan may other branch have some
other result?
As sample size is so small that we cant think all customers have same view.
As time allotted so small that one cant do it well.
Very less time interacted with customer during filling up of questionnaire.
It also depend on the mood of researcher whether he is devoted to project or not.
Unawareness among people about policy.
Lack of after sells services.
High premiums as compared to the LIC policies as it are providing ICICI Prudentials
policies.
There are many hidden charges that can not be shown to the customers.
Share Khan Pvt. Ltd. Pune47
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
48/55
SUGGESTIONS
Share Khan Pvt. Ltd. Pune48
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
49/55
o People are satisfied with value added service like through message, telephone
customer told about new product and they have to do next payment of policy moreservice should provided to them on screen alert for new product.
o Generally people of services doesnt go for investment but at year end they go for big
investment to save taxes let makes them aware from starting of year to save moretax.
o Well service people have good idea about the product but business people dont have
as they are not aware about so there should some type of meeting to held on holidayon which they given information in those.
o People should give those which can fulfill by company only.
o As we see that most of investor are from service as want to save tax so better product
can be offer to them in get good return.
o As people are more interested to invest in life time super plan as it give good return
so new product should launched taking basis of it.
o As we can see people are satisfy with relationship manager as they suggest good plan
to invest so that they should provide better advice to them.
o People are dissatisfied with the fund charges as they dont know how charges made
so there should be transparency so that they can know it.
o They have to make it more transparent.
o They have to publish their portfolio more frequently.
o More collaboration with banks.
o Personnel assistance to client.
Share Khan Pvt. Ltd. Pune49
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
50/55
BIBLIOGRAPHY
Share Khan Pvt. Ltd. Pune50
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
51/55
www.iciciprulife.com
www.sharekhan,com
www.thehindubusinessline.com
www.moneycontrol.com
www.irdaindia.org
Share Khan Pvt. Ltd. Pune51
http://www.iciciprulife.com/http://www.thehindubusinessline.com/http://www.moneycontrol.com/http://www.irdaindia.org/http://www.iciciprulife.com/http://www.thehindubusinessline.com/http://www.moneycontrol.com/http://www.irdaindia.org/8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
52/55
QUESTIONNAIRE
Name: - Gender:-
Share Khan Pvt. Ltd. Pune52
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
53/55
Address:-
Occupation: - Contact No.:-
Industry: - Designation: -
1. Pleases tell me the Names of the Insurance Companies You Are Aware Of?
2. Do you have a life insurance policy? Yes / no
If yes, which company
3. What are the reasons for choosing an insurance company / policy?
Score them on a scale of 1 to 10
Reliability
Rate of return
Number of Schemes available
Insurance agent
Transparency
Reputation
Easy documentation
Tax saving
4. Which plan do you have?
a) Life time superb) Smart kid
Share Khan Pvt. Ltd. Pune53
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
54/55
c) Pension Plan
5. For whom you get this product?a) yourself b) wifec) childd) others
6. How you rank ICICI PRU?
a) badb) goodc) better
7. From whom you like to purchase?
a) bank b) agent companiesc) advisorsd) other
8. Are you satisfied with fund charges?
a) Dissatisfiedb) Satisfiedc) Very satisfiedd) Delight
9. Are you satisfied with ROI you get?
a) Dissatisfiedb) Satisfiedc) Very satisfiedd) Delight
10. Do you recall seeing any advertisement for ICICI Prudential? If yes where?
a) TV Commercial
Share Khan Pvt. Ltd. Pune54
8/7/2019 22355906 a Project Report on the Study on Consumer Perception Regarding Insurance
55/55
b) Magazines/ News paper
c) Billboards/ Hoardings
d) WebsiteOthers................................
11. Which kinds of payment do you prefer most?
a) Monthly Quarterly
b) Half yearly Yearly
12. What is maturing period of any policy do you take?
a) 0-15 Years
b) 15+ Years
13. What is your annual Income?
a) 0-1,00,000
b) 1,00,000-3,00,000
c) 3,00,000-5,00,000
d) 5,00,000 above
14. Where you Re-invest your money?
a) Insurance
b) Mutual Fund
c) Share Market
d) Fixed Deposit
e) Others
Date: - Name of Respondent
Top Related