CHAPTER-1 INTRODUCTION

1.1 INTRODUCTION OF CUSTOMER PERCEPTION: : The process by which people translate sensory impressions into a coherent and unified view of the world around them. Though necessarily based on incomplete and unverified (or unreliable) information, perception is equated with reality for most practical purposes and guides human behavior in general. Consumers can evaluate a product along several levels. Its basic characteristics are inherent to the generic version of the product and are defined as the fundamental advantages it can offer to a customer. Generic products can be made distinct by adding value through extra features, such as quality or performance enhancements. The final level of consumer perception involves augmented properties, which offer less tangible benefits, such as customer assistance, maintenance services, training, or appealing payment options. In terms of competition with other products and companies, consumers greatly value these added benefits when making a purchasing decision, making it important for manufacturers to understand the notion of a total package when marketing to their customers. For example, when manufacturing automotive parts, a high-performing product will provide the customer base with basic benefits, while adding spare parts, technical assistance, and skill training will offer enhanced properties to create a total package with increased appeal to consumers. It is important to underscore the word perception. Perception is the act of discerning, realizing, and becoming aware of through the senses. The customers perception is what counts, not what we think it is.

The first quadrant has value, but includes obvious blind-spots. Some of us score higher in self objectivity than do others. The second quadrant is the one that counts most and the goal of assessing customer perception is to develop as accurate a picture of the customers view as possible. The third quadrant is a companys perception of how its customers perceive it. Bias creeps into this quadrant as well. The fourth quadrant is an amalgam of 1 3 and deals with a philosophical discussion similar to, If a tree falls in the forest . In practice, our profile of customer perception resides in the third quadrant because our ability to vision, listen, and interpret is in itself a perception which carries filters. A quick review of concepts related to perception helps attain higher degrees of accuracy when assessing customer

perception because it is wise to remember that beauty is in the eyes of the beholder and in this case the beholder writes the check. Methods for assessing customer perception: Before considering any methods for assessing customer perception, clear cut goals should be established. The following question needs answering prior to conducting an assessment, When we have completed the assessment activity, what information about how our customers perceive us do we want to ensure that we obtain? One question or a variation thereof, which should be mandatory is, What would our company have to accomplish in order for you to do more business with us (presuming we do not do all of the work today)?

1.2. OBJECTIVES OF THE STUDY:

Primary Objective: To Study the level of customer perception towards IDBI FEDARAL Life incomesurance. Secondary Objectives: To analyse the affordability and comfort ability of IDBI incomesurance. To find out the rate the satisfaction level of incomesurance benefits.
To find the satisfaction level of customer service offered

1.3 SCOPE OF THE STUDY

The study is to find out the level of customer perception towards IDBI Incomesurance plans. It is helpful in identifying the major purpose of insurance. By this study we are able to identify the level of customer willingness to take risk. From this study it is also able to find the satisfaction level of customers in terms of services provided by IDBIFEDARAL life insurance plan. This in turn helps the organization to implement the changes in product strategies. The organization can sell the product IDBI incumsurance in high numbers.

1.4 Industry Profile

The accurate account of the history of life insurance is very difficult to give but various available references regarding this, show the presence of some type of protection nearly similar to present life insurance system since ages. In England the concept of insurance emerged in 16 th century. Richard mortin issued the first policy on William gybbons life in the year 1536. The W. Gybbons policy gave great publicity for life insurance. Later two companies by the names Hand in Hand Society and The Mercers company came into existence in the 1696 and 1698 respectively. Then in 1721, parliament passed an act which allowed the promotion of companies with the object of life insurance business. So many big companies came up in Britain after that act. In Europe, there was a slow speed of development in this sector. In France, life insurance was prohibited till 19th century. In Germany, The first company in life insurance business came up in 1806 but later closed down its operations due to internal wars. In India, the historical beginning of insurance is not exactly known. But the modern concept of insurance came into being with the advent of East India Company in 18th century. So many insurance companies from Britain started coming ti India to insure the English residents. They used to charge very high rate of premium due to high mortality rate in India. But in 19th century, when Indians were recruited to jobs in various offices, then they started seeking protection with insurance companies. The first foreign company which started the business of insurance in India was oriental company in the year 1818. It liquidated very early and again promoted as the New Oriental. In 1823, a company named Bombay Life started giving insurance policies for two-three year terms. Then Madras Equitable Company came into existence in 1829. These companies failed due to improper and wrong policies in regard to valuation, management and depreciation norms etc. After that so many developments took place. Many European Companies tried to establish business in India but failed to survive due to unethical business practices. The British parliament passed an insurance act in 1870 and then a few organized efforts were made in the life insurance sector in India. The First World War gave a boost to Indian business of life insurance. So many companies were formed to do the business of insurance. The period between First and Second World War was very bad and depressing for the economy. The industrialists started their own insurance
6

companies. One comprehensive legislation was pass on insurance by Government for the first time in 1928. During the Second World War so many new insurance companies came up. But they resorted to heavy speculation and great financial irregularities were seen in them. Industrialists started banks and insurance companies and interlocked the investment. The government passed the act in 1950 to stop interlocking. The government took many constructive steps to regulate the business of life insurance and ultimately nationalized the business of life insurance in 1956 and set up life insurance corporation (LIC) of India. But now in present, Government has permitted the private sector to enter in this field. A number of private firms entered with life insurance business in India. Need For Insurance Growing individualistic ideas are fast penetrating the Indian minds and the joint- family and the caste systems are fast cracking. Insurance has benefits in store for them. It saves their families from misery, chaos, and destitution. Insurance lays the foundation on which the economic structure of life can be gradually and safely built up and sustained to the end. Uncertainties to the individual are made certainties for the group. SCOPE OF INSURANCE: The opening up of the insurance sector to private companies has made available more products and world class service to Indian customer. To quote [Link], chairman, IRDA all these years the nationalized insurance has been bleeding us. The future for a liberalized insurance sector looks bright with a monitoring agency committed to promoting the interests of the customer. According to the business world. The sheer size and potential of Indian insurance market has attracted many new players. Even going by government estimates, though there are about 312 million middle class customer with financial resources to purchase insurance products, only 2.5% of this covered by any from of insurance.

LIFE INSURANCE OF INDIA

Life is very fragile and death is a certainty. We cannot control the uncertainties of life. But, we can cover the risks surrounding us. Life insurance, simply put, is the cover for the risks that we run during our lives. It protects us from the contingencies that could affect us. Life insurance is not for the person who passes away, it for those who survive.

It is the responsibility of every bread earner to guard against the events that could affect the family in the unfortunate circumstance of his / her demise. Thus, having a life insurance policy is very vital. Before going for a life insurance policy it is imperative that you know about various types of life insurance policies. Major among them are:

INSURANCE COMPANIES IN INDIA

Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. These companies have come up with innovative and flexible insurance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the Lic to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer. Major Life insurance Companies in India are: 1. LIC 2. Bajaj Allianz 3. ICICI Prudential 4. Aviva Life Insurance 5. Birla Sun Life Insurance 6. HDFC Standard Life Insurance 7. ING Vysya 8. Kotak Mahindra 9. Max New York Life Insurance 10. Metlife India Insurance 11. Reliance Life Insurance 12. SBI Life Insurance 13. Shriram Life Insurance 14. Tata AIG Life Insurance

1.5COMPANY PROFILE:
IDBI FEDARAL Life Insurance Co Ltd is a joint venture between three leading financial conglomerates Indias premier development and commercial bank, IDBI, Indias leading private sector bank, Federal Bank and Europes premier Bancassurer, FEDARAL, each of which enjoys a significant status in their respective business segments. In this venture, IDBI owns 48% equity while Federal Bank and FEDARAL own 26% equity each.

IDBI FEDARAL launched its first set of products across India in March 2008, after receiving the requisite approvals from the Insurance Regulatory Development Authority (IRDA). Today, we offer our services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. IDBI FEDARAL launched its first set of products across India in March 2008, after receiving the requisite approvals from the Insurance Regulatory Development Authority (IRDA). Today, we offer our services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners.

About the Promoters IDBI Bank Ltd. continues to be, since its inception, Indias premier industrial development bank. Created in 1956 to support Indias industrial backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongst Indias foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from over 620 branches and more than 1050 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in Indias financial sector such as the Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd.
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Federal Bank is one of Indias leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 640 branches and 670 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. The Bank operates on the core banking platform and is RTGS/ NEFT enabled through which it offers state-of-the-art technology enabled products and services. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, and Any Where Banking, debit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations.

FEDARAL is an international insurance group composed of AG Insurance, the overall market leader in life and non-life insurance in Belgium, distributing its insurance products through the network of BNP Paribas FEDARAL Bank and independent insurance brokers, and FEDARAL Insurance International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Nonlife), Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg (Life), Portugal, China, Malaysia, Thailand and India Incomesurance plans distinguishes itself through the multiple benefits it provides to the customer the plan is a one stop solution providing 1. Life protection 2. Investment and savings 3. Flexibility 4. Transparency 5. Liquidity 6. Tax free return In a falling interest rate scenario and boom experienced in the equity markets, insurance policies are becoming popular and favored by market savy and high networth individuals. Competition has spued the usage of technology in the insurance industry. While earlier obtaining the status of life insurance policy was a time consuming process, customers can now
10

get their policy status and other information through call centers, interactive voice response systems and through the internet. The creation of the insurance Regulatory and Development Authority (IRDA) has helped customers vastly as the authority now specifies time limits for documentation and settlement of claims. The regulator has also made it mandatory for insurers to have a premium calculator on their website, which makes it easier for the customer to compare products across companies. In the last three years of liberalization, promoters of private insurance companies have demonstrated their long-term commitment to the Indian market in the best way. more than investments by promoters in any other segment of the financial sector. The total investment in private life insurance companies is now over Rs.3, 000 crore, which is much

The insurance industry has also played a significant role in mobilizing the savings of the individuals, providing cover against unforeseen contingencies and is investing these funds for economic development of the country. With only one fourth of the insurable population been provided insurance protection there is vast scope of growth for all the private companies in the future, as untapped potential is still very large.

IDBI FEDARAL LTD. is the no 1 company among the private players. apart from other companies have come out with the latest version of insurance products available in international market, which are quiet different from other conventional plans. These plans have become very popular because of the transparency and the flexibility it offers to the client. In today's times, incomesurance plan of IDBI FEDARAL LTD. provides solutions for all the needs of a client like insurance planning, financial needs, financial planning for children's future and retirement plan. Despite having so many advantages the customer's perception towards these plans has been different. The company wants to find out how the customer feels about their incomesurance plans and also about the service provided by them. The company also wants to find out the customer's perception towards the other companies in this industry.

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VISION AND VALUES:

VISION To be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.

MISSION To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner. To be transparent in the way we deal with our customers and to act with integrity. To invest in and build quality human capital in order to achieve our mission.

VALUES

Transparency: crystal clear communication to our partners and stakeholders Value to customers: A product and service offering in which customers perceive value Rock solid and Delivery on promise: This translates into being financially strong. Operationally robust and having clarity in claims. Customer friendly: Advice and support in working with customers and partners.

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Profit to stakeholder: Balance the interests of customers, partners, employees, shareholders and the community at the large.

Logo:

Chairman Mr. Yogesh Agarwal

MD & CEO Mr. G.V. Nageswara Rao

Branches: 35 branches all over India and still in the process of opening few more branches.

[Link] of the Study:

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 The time constraint had restricted the researcher from an in depth study. The number of respondents who respond to the survey being limited so that there are chances for bias in the output of the survey.
The survey is confined to opinion survey about IDBIFEDARAL incomesurance

Plans in Royapettah, Chennai [Link] respondents have little awareness over the private companies. So, it is difficult to find out the opinion about the incomesurance plans of the company.

Most of the respondents are not interested to give their suggestions for the survey.

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CHAPTER 2 REVIEW OF LITERATURE

4.1. REVIEW OF LITERATURE

15

In this section, the literature has been reviewed with especially a view to the customer's perception and how to keep business with customers.

Customer Perception: This truth is no different from raising a small child. Once a child understands (Perceives) that negative actions swiftly result in negative consequences, the child will change his (or) her behaviour. And once a child understands (perceives) that positive actions will earn positive rewards he will want to continue to behave appropriately in order to be rewarded. The same concept applies to customers perception. "It is not who you are, its who people think you are" Your companies success can be measured in only one way. The perceived value to your customer. Everything else is [Link] provides you with a way to accurately measure how customers think of your company, products & services. According to Zaltman (P6) "ability to grasp or understand the mind of the market represent the next source of competitive advantages for the marketers" it therefore behooves readers to over come six key areas so as to recognize that. 1. In general consumer display both reason and emotion functioning simultaneously. 2. Unconscious thinking reflects forces that operate below the level of awareness or beyond the power of articulations. 3. Mind, Brains, Bodies & culture interact in a dynamic, open complex adoptive system. 4. Memories are constructed from metaphors, myths and other aspects of social discourse. 5. Verbal languages represent only as small portion of largely non verbal thought. 6. Consumer's actively form a range of memories feelings & experiences. Such recognition suggests the importance of unconscious forces (including feeling images, sensation & experience) that guides the consumer as a complex system. These forces require that we distinguish knowing that from why consumer prefer one offering to another, the surface level quantity of data gathered from the deeper level quantity of the meanings extracted mere buying from the fill consumption experience includes all relevant emotion & meanings involved.

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A review of the literature indicates a wide variance in the definitions of satisfaction. The lack of a consensus definition limits the contribution of consumer satisfaction research. Without a uniform definition of satisfaction, researchers are unable to select an appropriate definition for a given context; develop valid measures of satisfaction; and/or compare and interpret empirical results. Consumer satisfaction researchers have contended that these problems are pervasive and important (Gardial, Clemons, Woodruff, Schumann, and Burns 1994; Peterson and Wilson 1992; Yi 1990). This research will: 1. Suggest a definitional of consumer satisfaction based on commonalities in the literature and the views of consumers. 2. Discuss how this can be used to develop a definition of satisfaction to accommodate different contextual settings. 3. Ensure that our definitions of satisfaction are consistent with consumers' views. This is critical since, ultimately, we must understand consumers meanings of satisfaction and consumers must understand what we mean when we use the term, satisfaction. The Literature and Consumer Views of Satisfaction - While the literature contains significant differences in the definition of satisfaction, all the definitions share some common elements. When examined as a whole, three general components can be identified: 1) consumer satisfaction is a response (emotional or cognitive); 2) the response pertains to a particular focus (expectations, product, consumption experience, etc.); and 3) the response occurs at a particular time (after consumption, after choice, based on accumulated experience, etc). Consumer responses followed a general pattern similar to the literature. Satisfaction was comprised of three basic components, a response pertaining to a particular focus determined at a particular time.

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CHAPTER 3 RESEARCH METHODOLOGY

3.1 RESEARCH METHODOLOGY

18

Research definition: Research is careful inquiry or examination to discover new information and relationship and to expand and to verify exiting knowledge, Research always starts with questions or a problem. Its purpose is to find answer to questions through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studies. Research Methodology: Research methodology is a way to systematically solve the research problem in the process of conducting the study; the researcher has followed the following methodology to collect and analyze the necessary data and to draw useful inference. Research design Research design is the plan, structure and strategy of investigation conceived so as to obtain answer to research question and to control variance. From definition it is evident that research design is more or less a blue print of research. At the outset may be noted that there are several ways of Studying and tackling a problem. There is no signal perfect design. Descriptive Research method is used in this study because it includes surveys, facts, and findings, enquire of different kind. The main purpose of this study is to find description of the state of affairs as it exists at present. The researchers can only report that has happened, and what is happening. Sample: A sample is a selection of units from the entire group called the population or universe of interest. Sampling technique:The sample technique adopted for the study is Convenient Sampling method, because under this method of sampling, the researcher selects items for the sample deliberately according to his choice. If suppose the population elements are selects for inclusion in the sample based on the ease of access, it can be called as convenience sampling. Sample size:19

A total of 85 employees were selected for the study. Sources of Data Both primary data is collected through a well designed structured questionnaire for the purpose of the study. Primary data:The primary data is collected through a well designed structured questionnaire from the employees. Secondary data:The secondary data are extracted from web site, books and records maintained the organization. Data Collection Method: Researcher instruments is the tool by which the researcher can do research on specific problems or objective. The most popular researcher instrument for collection data is Questionnaire for a particular investigation. It is simple for a moiled set of questions presented to respondents for their answers. Due to this flexibility, it is most common instrument used to collect the primary data.

STATISTICAL TOOLS: The data has been mainly analyzed by using the following methods and tests. 1. Chi- Square test 2. Correlation. Chi-Square Analysis: Chi-Square is a non-parametric test of statistical significance for bivariate tabular analysis. It is one of the simplest and most widely used non-parametric tests in statistical work. The Chi-Square method is the application of testing the significant difference between observed and expected values.
20

Procedure: Step-1: Null Hypothesis (Ho): There is no relationship between two variables. Step-2: Alternative Hypothesis (H1): There is relationship between two variables. Step-3: Level of significance = 0.05 Step-4: Calculate the expected frequency Row total X Column total E= -----------------------------------------Grand total Step-5: Chi-Square test () =
(O E ) E

Where, O= Observed frequency E= Expected frequency Step-6: Degrees of freedom= (r-1)(c-1) Where, r= Number of rows C= Number of columns. Step-7: Find the table value of at given level of significance with (r-1)(c-1) degrees of freedom. Step-8: Compare the calculated value with tabulated value of Step-9: If the calculated value of is less than the tabulated value accepts Ho, otherwise reject it. CORRELATION:

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Correlation analysis is the statistical tool used to measure the degree to which two variables are linearly related to each other. Correlation measures the degree of association between two [Link] co-efficient of correlation between X and Y is defined as r (X,Y)= Cov (X,Y) / = = Cov (X,Y) / z y E[(X |X|)(Y - |Y|)] / E[X |X]2E[Y - |Y|]2
)

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CHAPTER - 4 ANALYSIS & INTERPRETATION

TABLE 4.1.1
23

CLASSIFICATION BASED ON AGE OF RESPONDENTS

SNO 1 2 3 4 5

OPTION 20 25 26 30 31 35 36- 40 above 41 TOTAL

[Link] RESPONDENTS 3 17 26 22 17 85

PERCENTAGE % 4 20 31 25 20 100

INFERENCE: It is inferred that 4% of the respondents are between the age 20-25 years ,20% of respondents are between the age 26 -30 years, 31% of the respondents are between 31-35 years, 25% of the respondents are between the age 36-40 and 20% of respondents are above the age 41 years.

CHART 4.1.1 CLASSIFICATION BASED ON AGE OF RESPONDENTS

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25

TABLE 4.1.2 CLASSIFICATION BASED ON GENDER

S NO 1 2

OPTION Female Male TOTAL

[Link] RESPONDENTS 54 31 85

PERCENTAGE % 64 36 100

INFERENCE: It is inferred that 64% of the respondents are female,36% of respondents are male.

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TABLE 4.1.3 CLASSIFICATION BASED ON QUALIFICATION OF THE RESPONDENTS

27

SNO 1 2 3 4 5

OPTION Illiterate Elementary higher secondary Graduation post graduation TOTAL

[Link] RESPONDENTS 16 23 25 11 10 85

PERCENTAGE % 19 27 29 13 12 100

INFERENCE: It is inferred that 19% of the respondents are illiterate,27% of respondents are elementary, 29% of the respondents are higher secondary , 13% of the respondents are graduation, and 12% of respondents are post graduation.

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TABLE 4.1.4 CLASSIFICATION BASED ON EMPLOYMENNT

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SNO 1 2 3 4 5

OPTION Self employee government employee Private house wife Retried TOTAL

[Link] RESPONDENTS 27 28 32 11 14 85

PERCENTAGE % 25 26 29 8 12 100

INFERENCE: It is inferred that 25% of the respondents are self employee,26% of respondents are government employee, 29% of the respondents areprivate,8% of the respondents house wife, and 12% of respondents are retried.

30

31

TABLE 4.1. 5 CLASSIFICATION BASED ON ANNUAL INCOME SNO 1 2 3 4 5 OPTION Below 1 lakhs 1-2 lakhs 2-5 lakhs 5- 10 lakhs Above 10 lakhs TOTAL [Link]. RESPONDENTS 20 46 11 5 3 85 PERCENTAGE % 23 53 12 8 4 100

INFERENCE: It is inferred that23% of the respondents below 1 lakhs,53% of respondents are1-2 lakhs,12% of the respondents are 2-5 lakhs, 8% of the respondents are 5-10 lakhs, and 4% of respondents are above 10 lakhs.

32

33

TABLE 4.1.6 CLASSIFICATION BASED ON AWARENESS OF IDBI FEDARAL INCOMESURANCE PLAN

SNO 1 2 3 4 5

OPTION Newspaper Television Advisors

Fedaral executive

[Link]. RESPONDENTS PERCENTAGE % 45 53 19 5 1 15 85 22 6 1 18 100

Friends TOTAL

INFERENCE: It is inferred that 53% of the respondents are news paper ,22% of respondents are television, 6% of the respondents are advisors, 1% of the respondents are fedaral executive, and 18% of respondents are friends.

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TABLE 4.1.7 CLASSIFICATION BASED ON PURPOSE OF INSURANCE

35

SNO 1 2 3 4 5

OPTION Life coverage Returns Liquidity Investment Others TOTAL

[Link]. RESPONDENT PERCENTAGE % 76 63 5 1 14 2 85 6 1 15 2 100

INFERENCE: It is inferred that 76% of the respondents are life coverage,6% of respondents are returns, 1% of the respondents are liquidity, 15% of the respondents are investmentand 2% of respondents are others.

36

TABLE 4.1.8 CLASSIFICATION BASED ON RELIABILITY OF POLICY RULES AND PROCEDURE

37

SNO 1. 2 3 4 5

OPTION Strongly agree Agree Neutral Disagree Strongly disagree TOTAL

[Link]. RESPONDENTS PERCENTAGE % 9 11 31 21 18 6 85 36 25 21 7 100

INFERENCE: It is inferred that 11% of the respondents are strongly agree ,36% of respondents are agree, 25% of the respondents are neutral, 21% of the respondents are disagree and 7% of respondents are strongly disagree.

38

TABLE 4.1.9 CLASSIFICATION BASED ON AFFORDABLITY AND COMFORTABLITY TERMS AND CONDITION OF IDBI INCOMESUANCE

39

SNO 1 2 3 4 5

OPTION Strongly agree Agree Neutral Disagree Strongly disagree TOTAL

[Link]. RESPONDENTS PERCENTAGE % 18 21 40 9 11 7 85 47 16 13 8 100

INFERENCE: It is inferred that 21% of the respondents are strongly agree ,47% of respondents are agree, 16% of the respondents are neutral, 13% of the respondents are disagree and 8% of respondents are strongly disagree.

40

TABLE 4.1.10 CLASSIFICATION BASED ON POLICYS ROLE ON GOAL ACGIEVEMENT

41

SNO 1 2 3 4 5

OPTION Strongly agree Agree Neutral Disagree Strongly disagree TOTAL

[Link] RESPONDE NTS PERCENTAGE % 25 29 38 11 9 2 85 45 13 11 2 100

INFERENCE: It is inferred that 29% of the respondents are strongly agree ,45% of respondents are agree, 13% of the respondents are neutral, 11% of the respondents are disagree and 2% of respondents are strongly disagree.

42

TABLE 4.1.11 CLASSIFICATION BASED ON FLEXIBILITY OFPREMIUM PAYOUT

43

SNO 1 2 3 4 5

OPTION Strongly agree Agree Neutral Disagree Strongly disagree TOTAL

[Link] 16 14 36 12 7 85

PERCENTAGE % 19 16 42 15 8 100

INFERENCE: It is inferred that 19% of the respondents are strongly agree ,16% of respondents are agree, 42% of the respondents are neutral, 15% of the respondents are disagree and 8% of respondents are strongly disagree.

44

TABLE 4.1.12 CLASSIFICATION BASED ON TIMELY PAYMENT WITHDRAWEL

45

SNO 1 2 3 4 5

OPTION Strongly agree Agree Neutral Disagree Strongly disagree TOTAL

[Link] 34 21 12 10 8 85

PERCENTAGE % 40 25 14 12 9 100

INFERENCE: It is inferred that 40% of the respondents are strongly agree ,25% of respondents are agree, 14% of the respondents are neutral, 12% of the respondents are disagree and 9% of respondents are strongly disagree.

46

TABLE 4.1.13 CLASSIFICATION BASED ON SATISFACTION LEVEL OF THE WAIVER PROVIDER

47

[Link] OPTION

Number Respondents

of Percentage

1
2

Strongly agree

10 27 35 12 1 85

12 32 42 14 1 100

Agree Neutral Disagree Strongly disagree Total

3 4 5

INFERENCE: It is inferred that 12% of the respondents are strongly agree ,32% of respondents are agree, 42% of the respondents are neutral, 14% of the respondents are disagree and 1% of respondents are strongly disagree.

48

TABLE 4.1.14 CLASSIFICATION BASED ON INCOMESURANCE RETURNS

49

[Link]

OPTION

NO OF RESPONENT

PERCENTAGE %

1 2 3 4 5

Very good

21 18
22

25 21 26 15 13 100

Good Fair Poor Very poor

TOTAL

13 11 85

INFERENCE: It is inferred that 25% of the respondents are very good ,21% of respondents are good, 26% of the respondents are fair, 15% of the respondents are poor and 13% of respondents

50

TABLE 4.1.15 CLASSIFICATION BASED ON LEVEL OF RISK

51

S NO 1 2 3 4 5

OPTION Very high risk High risk Neutral Low risk Very low risk Total

NO OF RESPONENT 11 11 7 31 24 85

PERCENTAGE % 13 13 8 35 29 100

INFERENCE: It is inferred that 13% of the respondents are very low risk ,13% of respondents are high risk, 8% of the respondents are neutral, 35% of the respondents are low risk and 29% of respondents are very low risk.

52

TABLE 4.1.16 SATISFICATION LEVEL OF IDBI CUSTOMER SERVICE

53

S NO 1 2 3 4 5

OPTION
Strongly agree Agree

Number of Respondents 21 33
13 16 2

Percentage % 25 39
15 19 2

Neutral
Disagree Strongly disagree

Total

85

100

INFERENCE: It is inferred that 25% of the respondents are strongly agree ,39% of respondents are agree, 15% of the respondents are neutral, 19% of the respondents are disagree and 2% of respondents are strongly disagree.

54

55

4.3 CORRELATION AIM:

To find out the relationship between terms and condition of incomesurance and payment withdrawal flexibility.

CALCULATION:

Symmetric Measures Asymp. Std. Value Interval by Interval Ordinal by Ordinal N of Valid Cases . Pearson's R Spearman Correlation .024 .026 85 Errora .109 .109 Approx. Tb .217 .236 Approx. Sig. .829c .814c

INFERENCE:
There is no significant relationship terms and condition of incomesurance and payment withdrawal flexibility.

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4.3 CHI-SQUARE AIM:

To measure the Satisfaction level of incomesurance benefits using chi-square test.

HYPOTHESIS STATEMENT:
To test whether respondents are satisfied with the incomsurance benefis.

NULL HYPOTHESIS (H0):

The respondents are highly satisfied with the incomsurance benefis.

ALTERNATIVE HYPOTHESIS (H1):

The respondents are not highly satisfied with the incomsurance benefis.

CALCULATION:
Crosstabs
[DataSet2] C:\Users\personal\Desktop\[Link]
Case Processing Summary Case Processing Summary Cases Valid N factor * level 425 Percent 83.2% N 86 Missing Percent 16.8% N 511 Total Percent 100.0%

57

Count Level hs factor db lump tax annual 5.00 Total 21 14 12 10 12 69 s 20 27 21 20 15 103 N 21 18 30 25 22 116 d 15 19 14 20 23 91 hd 8 7 8 10 13 46 Total 85 85 85 85 85 425

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases Symmetric Measures Value Nominal by Nominal Phi Cramer's V N of Valid Cases .205 .103 425 Approx. Sig. .331 .331 17.887
a

df 16 16 1

sided) .331 .366 .004

17.309 8.351 425

Calculated value Tabulated value

= =

17.668 26.296

(Table value @ 5% sig. level) ACCEPT H0

INFERENCE:
Since the calculated value is lesser than tabulated value, we accept null hypothesis & reject alternative hypothesis. The respondents are highly satisfied with the incomsurance benefis.

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4.4 CHI-SQUARE AIM:

To find out the relationship between age and customer service provided by the IDBI incomesurance.

HYPOTHESIS STATEMENT:
To test whether the relationship between age and customer service provided by the IDBI incomesurance.

NULL HYPOTHESIS (H0):

There is a significant relationship between age and customer service provided by the IDBI incomesurance.

ALTERNATIVE HYPOTHESIS (H1):

There is no significant relationship between age and customer service provided by the IDBI incomesurance.

CALCULATION:
Crosstabs
[DataSet0]

Case Processing Summary Cases Valid N age * service 85 Percent 100.0% N 0 Missing Percent .0% N 85 Total Percent 100.0%

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age * service Crosstabulation Count Service Highly Highly satisfied age 20-25 26-30 31-35 36-40 above 40 Total 6 6 4 4 4 24 Satisfied 5 5 6 3 3 22 Neutral 3 2 3 4 5 17 Dissatisfied 1 2 2 3 2 10 dissatisfied 2 2 2 3 3 12 Total 17 17 17 17 17 85

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 5.666a 5.731 2.241 85 df 16 16 1 sided) .991 .991 .134

CHI-SQUARE TABLE INFERENCE:

Calculated value Tabulated value = = 5.666 16.919

(Table value @ 5% sig. level) ACCEPT H0

INFERENCE:
Since the calculated value is lesser than tabulated value, we accept null hypothesis & reject alternative hypothesis. There is a significant relationship between age and customer service provided by the IDBI incomesurance.

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SUMMARY

5.1. FINDINGS:
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 It is found that 36% of the respondents are male and 64% of the respondents are female.
It is found that 29% of the respondents are higher secondary 27% are elementary 19%

of respondents are illiterate and 13% of respondents are from graduation.

It is found that 29% of the respondents are private 26% are government employee 25%

of respondents are self employee and 12% of respondents are retired. 36% of respondents believe that IDBI incomsurance policies and procedures are highly reliable. 42% of respondents have said that waivers provided by IDBI incomsurance are not in satisfactory level. 26% of respondents feels that the returns provided are not satisfactory. 35% of respondents have said that risk involved is low. There is no significant relationship terms and condition of incomesurance and payment withdrawal flexibility. The respondents are highly satisfied with the incomsurance benefis. There is a significant relationship between age and customer service provided by the IDBI incomesurance.

5.2. SUGGESTIONS:
The investor should be educated about the equity and debt market.

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1. 2. 3. 4. 5. 6.

Customer service. How o increase the returns Waivers must be increased for loyal customers. How to increase the comfortability and flexibility Advertisement solutions

CONCLUSION Life is uncertain and life insurance makes this uncertainity as [Link] though the breadwinner of the family dies, the family will not suffer and they can enjoy the life insurance
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cover. Life insurance will protect the family and make them happy in [Link] make their investment in market link plans for life coverage as well as for returns but they have to take high riskThough there is a lot of action and excitement in the market by advertisements and sales promotions by IDBIFEDARAL still there lingers a doubt among the common people of how safe it is to go for private insurance [Link] insurance is a long-term investment, many investors are worried whether the private companies will be exits around after 20 years when the policy matures. Such apprehensions however are not wrong.

But to safeguard the investors, all the insurance companies are playing under IRDA standard frameworks. So through the research study, the researcher found the positive level of customer awareness towards insurance linkage plans. But the private sector insurance companies should give confidence to the investors towards the linkage [Link] companies have to conduct seminars contact Programmes, Counselling sessions to the investors for develop their insurance knowledge. Insurance companies so far have concentrated only on 10% of the total population. They have to concentrate on remaining 90% of the people.

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APPENDIX

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A STUDY ON CUSTOMER PERCEPTION TOWARDS IDBI INCOMESURANCE, WITH RESPECT TO IDBI FEDERAL LIFE INSURNCE CO-LTD CHENNAI

1. Name: 2. Age: 20-25 36-40 3. Gender: M 4. Qualification: Illiterate Graduation 5. Employment: Self employee House Wife 6 . Annual Income: Below 1lakh 5-10 lakhs 1-2 lakhs above 10 lakhs 2-5 lakhs Government Employee Retired Private Elementary Post graduation Higher secondary F M 26-30 Above 40 31-35

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7. How you came to know about the IDBI FEDARAL incomesurance plan? Newspapers Television Advisors

FEDARAL Executive

Friends

8. What is the purpose of insurance according to you? Life Coverage Investment 9. The policy rules and procedure are true and reliable Highly agree Disagree Agree Highly disagree Neutral Returns Others Liquidity

10. The term and conditions of IDBI incomesurance are affordable and comfortable. Highly agree Disagree Agree Highly disagree Neutral

11. IDBI incomesurance helps you to get your goals step by step? Highly agree Disagree Agree Highly disagree Neutral

12. Premium payout option in incomesurance is very flexible in nature. Strongly Agree Disagree Agree Strongly disagree Neutral

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13. Incomesurance deals with greater flexibility to withdraw payout when you really need? Strongly agree Agree Neutral

Disagree

Strongly disagree

14. Are you satisfy with the waiver provided by the incomsurance? Highly satisfied Dissatisfied Satisfied Highly dissatisfied Neutral

15. The returns which you avail from the incomesurance plan are Very Good Poor Good Very Poor Fair

16. Kindly rate the satisfaction level of the following incomesurance benefits. Option/parame Highly ter Death benefits Lumpsomecover benefits Tax benefits Annual payout benefits satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

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Surrender value benefits

17. According to you, state the level of risk while investing in incomesurance?

Very High Risk Low Risk

High Risk Very low risk

Neutral

18. Are you satisfied with the customer service offered by the IDBI? Highly satisfied Dissatisfied 19. Suggestions, if any ________________________________________________________ Satisfied Highly dissatisfied Neutral

BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS :

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1. HISTORY OF INSURANCE, DR.S. GUPTA, SECOND EDITION, SULTAN CHAND & SONS, NEW DELHI. 2. MARKETING MANAGEMENT , AN INDIAN PERSPECTIVE , DR. [Link] & [Link], SULTA CHAND & SONS, NEWDELHI 3. GUPTA, STATISTICAL METHODS, TURNERY SECOND EDITION, SULTAN CHAND & SONS, NEW DELHI

WEBSITES:

[Link] [Link] [Link] [Link] [Link]

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