CHAPTER II

REVIEW OF LITERATURE
 CHAPTER II
REVIEW OF LITERATURE

INTRODUCTION
In this chapter, the researcher has reviewed the existing literature in relation to the objective of
the study.

REVIEW OF LITERATURE
Chaudhary (2016) conducted research on “ Consumer Perception Regarding Life Insurance
Policies: A Factor Analytical Approach ” This study reported that various factors that
influence consumer perception of life insurance found that there are six factors i.e. Customized
and timely service, better company reputation, effective service quality, customer convenience,
tangible benefits, and a healthy customer client relationship that influence the consumer.

Ghosh Amlan (2011) conducted research on “The impact of reforms on Indian life
insurance” This research inferred the relationship between life insurance sector reforms in India
and the growth of life businesses in post reform period. It shows that the relationship between the
insurance sector reforms and development of life insurance sector in India is bi-directional. It is
due to huge potentiality of life insurance market.

M Selva kumar and J Vimal Priyan (2012) conducted research on “ A comparative study of
public and private life Insurance Companies in India ” The study concluded that LIC
continues to dominate insurance sector. Private sector insurance companies also tried to increase
their market share. Life insurance has today become a mainstay of any market economy since it
offers plenty of scope for garnering large sums of money for long period of time. The study
compared premium, policies and market shares of various insurance companies.

Kalani, Salunkhe and Ahirrao (2013) conducted research on “ Comparative study of claim
settlement ratio of LIC with other insurance companies in India ” The study compared the
LIC's claim settlement ratio to that of other Indian insurance providers. It was noted that there
have been instances of claim settlement fraud that may have occurred, but if the policyholder
takes the necessary precautions, they can prevent themselves from fraud. LIC of India provides
better corporate services for settlement.
Yadav and Mohania (2013) conducted research on “Claim settlement of life insurance
policies in insurance services with special references of Life Insurance Corporation of
India” The study entitled claim settlement of life insurance policies in insurance services with
special reference of Life Insurance Corporation of India. The management framework of LIC for
settlement, the impact of claim settlement on the sale of life insurance policies by LIC of India,
the claim settlement procedure used by LIC of India, customer awareness of claim settlement,
and an analysis of the quality of service offered by LIC of India for claim settlement have all
been the focus of the study.

Piyali Chandra Khan and Mitra D (2014) conducted research on “ Liquidity risk assessment
of Life Insurance Corporation of India ” This research analysed that LICI’s overall situation
was favourable because the profit after tax increased by 270% over the previous 12 years. It held
a healthy amount of cash. The company’s current assets were adequate to cover its current
liabilities. This suggests that LICI is well able to generate a higher return in a such competitive
environment.

Antonio Coviello and Giovanni Di Trapani conducted research on “ The Customer

Satisfaction in the Insurance Industry ” This study reported that the company’s performance
and long-term competitiveness are frequently viewed as being dependent on how well its
customers are satisfied with its services. In terms of customer satisfaction, the insurance sector is
receiving a lot of focus. Customer satisfaction is frequently seen as a key factor in determining
customer retention in the framework of relationship marketing. Customer satisfaction is a crucial
indicator for insurance companies to track in order to identify the customer service areas that are
effective and those that require development in order to maintain or grow their membership base.

Dr. Tausif Mistry conducted research on “ A Study on Consumer Behavior, Awareness and
Perception in Working Professionals towards Term Life Insurance ” This study analysed
that there is a financial or economic consequence to the risk, and insurance shields against these
consequences. The government’s policy of insuring the uninsured has gradually pushed
insurance penetration in our country and the proliferation of insurance schemes. The awareness
about insurance as a product and its importance remain a cause of concern. Assessing awareness
levels in the working class and understanding their perspective is a key to expanse the insurance
industry.
Sinha and Tapen (2005) conducted research on “ The Indian Insurance Industry:
Challenges and Prospects ” This research reported that India is one of the most promising
emerging insurance markets in the world. However, out of the total insurance premium market
in India particularly life insurance premium market presently accounts for 80% of premiums on
the Indian insurance market as a whole.

Gayathri H, M.C. Vinaya and K. Lakshmisha (2005) conducted research on “ Insurance

Service Quality : A Study of Quality Dimensions ” The study stated that the insurance
companies in India to quantitatively study the levels of the dimensions of service quality and its
relation to the level of customer satisfaction. LIC, Vysya, TATA and HDFC were the four
insurance companies plays a pivotal role in insurance sector. The other insurance companies
have to focus on service quality in order to differentiate themselves and to create a competitive
advantage in the insurance market.

Barkur G, Varambally , K.V.M., Rodrigues, L.L.R., (2007) conducted a research on

“ Insurance sector dynamics : towards transforming into learning organization” The study
has investigated how five important variables affect the level of service in the insurance industry.
This study have analysed the selling movement in insurance industry is hugely relied upon
individual selling capacity. Operators of insurance contracts plan a variety of strategies to win
the customer both immediately and in the long term. It has tried to recognize the variables that
essentially help the protection operator in achieving deals.

Akhter , W., Pappas, V., Ullah, K.S., (2020) conducted research on “ Insurance demand in
emerging Asian and OECD Countries : A comparative perspective ” The goal of this study is
to evaluate the demand for insurance in a number of OECD and Asian nations during the
financial crisis. During the time of the global financial crisis, they gathered information from 55
rising Asian and OECD nations. The outcome demonstrates that the global financial crisis has a
negative impact on the market for general insurance in high income areas. Higher reliance rates
in Asia will generally reduce insurance demand, but a crisis in Asia will significantly affect
insurance demand which shows that higher proficiency rates can be helpful in attracting the
anticipated customers.
Lina George (2014) conducted a research on “ A Study on the Customer’s Perception
towards Insurance with reference to Bangalore City ” This study states the difficulties on
sales position of insurance industries and a detailed study is made to identify the potential
segment of people to market the insurance products. The insurance industry in our country is on
the threshold of a new era of rapid expansion. A competitive environment is emerging with new
participation entering the insurance industry.

K.V. Ramanathan (2011) conducted a research on “ A Study on policyholder’s satisfaction to

Life Insurance Corporation of India ” The study found a valid and reliable tool for measuring
customer perceptions of service quality, customer awareness, and customer satisfaction in the life
insurance business. A six dimensional hierarchical structure made up of assurance, competence,
personalized financial planning, corporate image, tangibles, and technology aspects must be used
to assess service quality in this case. This would aid service managers in allocating resources
effectively by focusing on important dimensions first.

Selvakumar & Priyan (2010) conducted a research on “ A Comparative study of public and
private life insurance companies in India ” According to the study, insurance firms are
reaching out to semi-urban and rural areas more frequently to spread the message that life is
protected by insurance coverage. Customers who choose a higher degree of protection are likely
to be more aware of the need for risk mitigation, increased security, and consideration for their
dependents’ future. The insurance industry has been developing and improving its underwriting
and risk management skills.

Keerthi , R Vijayalakshmi (2009) conducted a research on “ A Study on the Expectations and

perceptions of the services in private life insurance companies ” This study states the
policyholders’ expectations are generally satisfied when it comes to things like quality.
However, there is a slight gap in other factors, which means that the policyholders have received
lower levels of service than they had anticipated. The players in the life insurance industry focus
on the effective delivery of services, they can win the hearts of customers and anticipate their
increased market share.
S Sai Surya , Balanji Reddy Mora (2022) conducted a research on “ A Comparative Study of
Public and Private Life Insurance Companies in India ” This study analysed the performance
of public and private life insurance companies in India. There are 24 private life insurance
companies are available. The competition LIC started facing from these companies were
threatening to the existence of LIC. Since the liberalization of the industry, the insurance
industry has never looked back and today stand as the one of the most competitive and exploring
industry in India.

Dr. Sunita Srivastava and Om Prakash (2016) conducted a research on “ A Comparative

Study Between Public and Private Insurance Company in India ” In the study, an analysis
of India’s public and private life insurance companies’ performance was made. Researchers
came to the conclusion that as private players enter the market, the rivalry is getting fiercer.
Every business strives to implement new inventions and innovative product features to draw
customers in order to meet the needs of the market.

Dr. H.S. Sandhu and Neetu Bala (2011) conducted a research on “ Analysis of Factors
Influencing Agents’ Perception Towards Life Insurance Corporation of India ” The study
examined that the seven factors i.e., proficiency, media & presentation, physical & ethical
excellence, service delivery process & purpose, security & dynamic operations, credibility and
functionality. They also investigated the relationship between each identified factors and
customer evaluation for service quality. The findings revealed that Proficiency, Physical &
ethical excellence and Functionality were the significant factors which make impaction the
overall service quality of Life Insurance.

Ritu Gangil , Swati Vishnoi (2020) conducted a research on “ Consumer perception towards
general insurance: A factor analysis approach ” The study depicts that the competitive
climate in the Indian insurance market has changed dramatically over the last one decade. With
the rise in risk and rapidly increasing in the expenses, nowadays people prefer to take insurance
to financial secured themselves from the uncertainities. There is no difference in the perception
of the customer towards general insurance across gender, sector, occupation. The insurance
companies should consider the above factors before taking decision.
Dr. D.Y. Patil, Dr. Kamini Khanna, Veena Kotle conducted a research on “ A Study of
Factors Influencing Consumer Perception towards Health Insurance Policies during
Covid – 19 Pandemic ” The study depicts the importance of health insurance policy amidst the
global covid pandemic. There is a rising need for health insurance in current scenario, because of
the higher rate of inflation in medical expenses. The purpose of this study was to understand the
consumer behavior towards health insurance during COVID-19. The factors influencing the
customer perception towards health insurance were Compatibility, Awareness, Transparency,
Tax Benefit, Accuracy clarity and Availability of Information, claim settlement ratio and number
of network hospital. Through the study it was found that, awareness of health insurance products
was observed in majority of the respondents. Awareness campaigns on importance of health
insurance and its services may help to increase the sale of health insurance.

Swati Jain (2021) conducted a research on “ A Study on Consumer’s Perception towards

Insurance as a Financial Planning Tool ” The study explored various alternative of investment
mostly preferred by the consumers and found the consumers’ insights towards life insurance
policies. The study found that there were four factors which affect the perception of consumers.
Safety, high returns, liquidity and risk evaluation are those significant factors which helps the
consumer in taking decision of buying an insurance. The investment in insurance can be the
optimum utilization of Savings.

Siddhartha and Sumanth (2017) conducted a research on “ Consumer buying behavior

Towards Life Insurance : An Analytical Study ” This study examined the elements that affect
a customer’s decision to choose a specific insurance provider when purchasing an insurance
policy. Customers had a generally favourable outlook towards life insurance. In contrast to the
actual goal of insurance, which is risk coverage, it was found in the study that the majority of
investors in insurance plans invested primarily with the intention of reducing their tax liability
and making a return. The results of the research also revealed that customer relationships and the
company’s reputation are the two main elements that affect consumers’ decisions about which
insurance provider to use.

Nair S (2019) conducted a research on “ A Comparative study of the satisfaction level of

health insurance claimants of public and private Sector general insurance companies ” The
study compared the degree to which insurance companies in the private and public sectors were
satisfied with the resolution of insurance claims. The Author discovered that the public sector
insurance companies have a higher claim settlement percentage than private sector insurance
companies. The study revealed the various expectations that the customers have from the
insurance company.
Amit Kumar (2013) conducted a research on “ A Study on Consumer Perception Towards
Insurance Sector ” The study stated that the Indian Insurance Market is likely to change in few
years significantly largely due to regulatory changes. In addition, premium growth is being
driven by other factors such as the growing consumer class, increased foreign direct investment,
infrastructure development, and an increased awareness of catastrophe exposure.