A COMPARATIVE STUDY ON THE PERFORMANCE

OF MAX LIFE ALLIANCE INSURANCE COMPANY

WITH IT’S INDUSTRIAL COMPETITORS

By
Anas Saifi
Roll no:2222010066
Enroll No:2200220194

A PROJECT REPORT
Submitted to:
Prof. Rakhi Sharma & Prof. Priti Sharma

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment of the requirements for the award of the
degree Of
MASTER OF BUSINESS ADMINISTRATION
GLA,
Mathura 2022-
2024

TABLE OF CONTENTS

[Link] CHAPTERS PAGE. NO.

Abstract I
List of tables II
List of figures IV
 CHAPTER – 1: INTRODUCTION

1.1 Industry Profile 1

1.2 Company Profile 7
1.3 Product Profile 9

CHAPTER – 2: DEVELOPMENT OF MAIN THEME

2.1 Need of the study 13

2.2 Objectives of the study 14
2.3 Scope of the study 15
2.4 Limitations of the study 16
2.5 Review of Literature 17

CHAPTER – 3: ANALYSIS & INTERPRETATION

3.1 Research Methodology 21

3.2 Analysis & Interpretation 26
3.3 Findings 72
3.4 Suggestions 76
3.5 Conclusion 77

APPENDIX

Questionnaire I
Bibliography V

ABSTRACT
This project titled as “A Comparative Study on the Performance of MAX LIFE
Alliance Insurance Company with its Industrial Competitors” focuses on some
of the key issues like competitive position that MAX LIFE holds, the strengths and
weaknesses of the company’s insurance schemes, consumer’s awareness,
customer’s perception etc.

The sample size for this study is 120. The research design carried out for this study
is descriptive research. Primary data are collected from the clients of various
insurance companies through a structured undisguised questionnaire. Secondary
data are gathered from the websites of MAX LIFE and other companies for the
purpose of making a comparative analysis. Statistical tools like graphs, interval
estimation, chi-square test, H-test, and correlation have been used for the purpose
of analysis.

The findings of the study were arrived at based on the analysis conducted. Some
of the major findings of the study relate to increased necessity of having a general
insurance cover, higher reputation enjoyed by MAX LIFE and priority to have
auto/car and health insurance cover by majority of the respondents. Some of the
suggestions of the study are to make amendments in the premium rates, to
maintain the promptness in the claim settlement procedure, to introduce additional
insurance covers and create more awareness about the products.

The study is been concluded that the performance of MAX LIFE is excellent in
comparison with its industrial competitors and that the company has high growth
prospects in future years to come.
 LIST OF TABLES

TABLE NO. TITLE OF TABLE PAGE NO

26
3.2.1 Age of respondents

27
3.2.2 Gender of respondents

28
3.2.3 Occupation of respondents

29
3.2.4 Number of members in a family

30
3.2.5 Annual income of respondents

31
3.2.6 Necessity of having a general insurance cover

32
3.2.7 No. of general insurance policies held by respondents

33
3.2.8 Are the general insurance policies taken from the same
company

35
3.2.9 No. of companies in which respondent is a policy
holder

36
3.2.10 Companies enjoying higher reputation amidst
customers

38
3.2.11 Awareness among the MAX LIFE customers towards
insurance schemes offered by MAX LIFE
3.2.12 Respondent’s opinion towards customer-centric 40
products offered by MAX LIFE

3.2.13 Respondent’s comment on the service rendered by 41

MAX LIFE

3.2.14 Sources by which the respondent’s became familiar of 42

MAX LIFE

3.2.15 Period of insurance cover held by respondents 43

3.2.16 Amount of yearly insurance premium paid by 44

respondents.

3.2.17 Respondent’s comment on the yearly insurance 47

premium paid
3.2.18 Satisfactory level of respondents towards the policy 52
taken

3.2.19 No. of respondent’s having insurance agents 57

3.2.20 Respondent’s comment on the service rendered by 59

insurance agents

3.2.21 Claims rejected by insurance companies 61

3.2.22 Factors that influences customers to choose a particular 62

company in buying an insurance policy

3.2.23 Respondent’s satisfactory level towards various features 64

 of general insurance policy taken

3.2.24 Sources most preferred by respondents to know about 68

an insurance company and its products

3.2.25 General Insurance cover that is most favored by 69

respondents
 LIST OF CHARTS

CHART NO. TITLE OF CHART PAGE

NO

26
3.2.1 Age of respondents

27
3.2.2 Gender of respondents

28
3.2.3 Occupation of respondents

29
3.2.4 Number of members in a family

30
3.2.5 Annual income of respondents

31
3.2.6 Necessity of having a general insurance cover

32
3.2.7 No. of general insurance policies held by respondents

33
3.2.8 Are the general insurance policies taken from the same
company

35
3.2.9 No. of companies in which respondent is a policy holder
3.2.10 Companies enjoying higher reputation amidst customers 37

3.2.11 Awareness among the MAX LIFE customers towards 38

insurance schemes offered by MAX LIFE

3.2.12 Respondent’s opinion towards customer-centric products 40

offered by MAX LIFE

3.2.13 Respondent’s comment on the service rendered by MAX 41

LIFE

3.2.14 Sources by which the respondent’s became familiar of 42

MAX LIFE

3.2.15 Period of insurance cover held by respondents 43

3.2.16 Amount of yearly insurance premium paid by respondents. 44

3.2.17 Respondent’s comment on the yearly insurance premium 48

paid

3.2.18 Satisfactory level of respondents towards the policy taken

53
3.2.19 No. of respondent’s having insurance agents
57
3.2.20 Respondent’s comment on the service rendered by
insurance agents 60

3.2.21 Claims rejected by insurance companies

61
3.2.22 Factors that influences customers to choose a particular
company in buying an insurance policy 63

3.2.23 Respondent’s satisfactory level towards various features of

general insurance policy taken 65

3.2.24 Sources most preferred by respondents to know about an

insurance company and its products 68

3.2.25 General Insurance cover that is most favored by

respondents 71
 1.1 INDUSTRY PROFILE

Introduction

The outlook for the general insurance industry in India is stable as per the financial
forecast that has been made. Over the medium and long term, India’s insurance
market will continue to experience major changes as its operating environment
increasingly deregulates. On the one hand, a mix of new products, new delivery
system and a greater awareness of risk will generate growth. On the other hand,
the competition is expected to remain intense as private sector insurers and those
about to enter India seek to win market share from the more established public
sector entities.

In 2006-07, India’s general insurance market witnessed a variety of changes as

deregulation continued at a hectic pace. With the removal of pricing controls on
fire and engineering lies in 2007, insurers have since discounted their rates by 50%
or more in their quest to retain or win market share. Furthermore, the number of
private insurers is expected to grow as various foreign companies have announced
intentions to establish joint ventures.

History of Insurance industry

In some sense we can say that insurance appeared simultaneously with appearance
of human society. In earlier economies, we can see insurance in the form of people
helping each other. For example, if a house is burnt, the members of the
community help build a new one. Should the same thing happen to one’s
neighbour, the other neighbors must come to help? Otherwise, neighbors will not
receive help in the future.

Insurance in the modern sense, started as a methods of transferring or distributing

risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and
2nd millennia BC, respectively. Chinese merchants traveling treacherous river
rapids would redistribute their cargo across many vessels to limit the loss due to
any single vessel’s capsizing. The Babylonians developed a system which was
recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early
Mediterranean sailing merchants. If a merchant received a loan to fund his
shipment, he would pay the lender an additional sum in exchange for the lender’s
guarantee to cancel the loan should the shipment be stolen.

Greek monarchs were the first to insure their people and made it official by
registering the insuring process in governmental notary offices. They invented the
concept of the ‘general average’. Merchants whose goods were being shipped
together would pay a proportionally divided premium which would be used to
reimburse any merchant whose goods were jettisoned during storm or sinking of
the vessel in the sea.

The Greeks and Romans introduced the origins of health and life insurance c. 600
AD when they organized guilds called “benevolent societies” which cared for the
families and paid funeral expenses of members upon death. Guilds in the middle
Ages served a similar purpose. Before insurance was established in the late 17th
century, “friendly societies” existed in England, in which people donated amounts
of money to a general sum that could be used for emergencies.

Separate insurance contracts (i.e., insurance policies not bundled with loans or
other kinds of contracts) were invented in Greeks rulers in the 14th century, as
were insurance pools backed by pledges of landed estates. These new insurance
contracts allowed insurance to be separated from investment, a separation of roles
that first proved useful in marine insurance. Insurance became far more
sophisticated in post-Renaissance Europe, and specialized varieties developed.
Insurance as we know it today can be traced to the Great Fire of London, which in
1666 A.D devoured 13,200 houses. In the aftermath of this disaster, Nicholas
Barbon opened an office to insure buildings. In 1680, he established England’s
first fire insurance company, “The Fire Office,” to insure brick and frame homes.

The first insurance company in the United States underwrote fire insurance and
was formed in Charles Town (modern-day Charleston), South Carolina, in 1732.

Evolution of insurance industry in India –Important milestones

In India, insurance has a deep-rooted history. It finds mention in the writings of

Manu (Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra
). The writings talk in terms of pooling of resources that could be re-distributed in
times of calamities such as fire, floods, epidemics and famine. This was probably a
pre-cursor to modern day insurance. Ancient Indian history has preserved the
earliest traces of insurance in the form of marine trade loans and carriers’
contracts. Insurance in India has evolved over time heavily drawing from other
countries, England in particular

Year Event
1818 The advent of life insurance business in India with the establishment of the
Oriental Life Insurance Company in Calcutta.
1834 Oriental Life Insurance Failure

1850 The advent of General Insurance in India with the establishment of Triton
Insurance Company Ltd in Calcutta
1870 The enactment of the British Insurance Act

1907 The Indian Mercantile Insurance Ltd was set up

1912 The Indian Life Assurance Companies Act, 1912 was the first statutory
measure to regulate life business.
1928 The Indian Insurance Companies Act was enacted.

1956 Nationalization of Life Insurance Sector and Life Insurance Corporation .The
LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident
societies.
1971 The General Insurance Corporation of India was incorporated as a company

1973  General insurance business was nationalized with effect from 1st January
1973.
 107 insurers were amalgamated and grouped into four companies namely:
1) National Insurance Company Ltd.,
2) The New India Assurance Company Ltd.,
3) The Oriental Insurance Company Ltd
4) The United India Insurance Company Ltd.
1993 The Government set up a committee under the chairmanship of RN Malhotra
former Governor of RBI to propose recommendations for reforms in the
insurance sector
2000  The IRDA was incorporated as a statutory body in April 2000.
 Foreign companies were allowed ownership of up to 26%.
2000-01 Insurance Industry had 16 new entrants, 10 in Life and 6 in General Insurance
2001-03 Insurance Industry had 5 new entrants, 2 in Life and 3 in General

2003-04 Insurance Industry had 1new entrant, Sahara India Insurance Company Ltd.
In Life Insurance category
2004-05 Insurance Industry had 1new entrant, Shri Ram Insurance company Ltd. In
Life Insurance category
2005-06 Bharti Axa Life insurance company was granted Certification of Registration
 in July
2006 Bharti Axa Life insurance company commenced its operations the newest
player in the insurance sector.

Evolution of Non-Life insurance in India:

The boycott of British goods and British institutions, which occurred because of
the nationalist movement, encouraged formation of Indian-owned commercial and
business houses. By 1907, the Indian mercantile the first of the long lasting
general insurance companies to be established with Indian capital, had started
functioning five offices, the New India, Vulcan, Jupiter, British India General and
the Universal, were established in 1919 almost simultaneously for transacting
general insurance business.

In 1928, prominent insurance men of Bombay met and formed the Indian
insurance companies association to protect the interest of Indian insurers. Leaders
of the insurance industry began to organize conferences, educate public on the
benefit of insurance, focus attention on the annual remove of national wealth
through invisible export’s, and arise public interest in favour of Indian insurance.

In 1950, the planning commission was set up to formulate plans for successive
five years. This five year plan brought about large scale economic development
and increased insurance consciousness among the people. As insurance business
increased the number of claims for compensation against losses also naturally
increased. Settlement of too many large claims meant a severe demand on the
funds of insurance companies. So to prevent this situation the practice of
‘Reinsurance’ was adopted according to which insurers themselves reinsured
portions of the insurances they had undertaken. So Indian insurance companies
with their expanding business wanted to reinsure for which they had to seek
foreign reinsurance markets.
Since the need for conserving foreign exchange was felt in India all the insurers in
India as well as foreigners operating in India formed the India Reinsurance
Corporation in 1956. This corporation provided reinsurance facilities. It was
compulsory for insurers in India to reinsure a fixed percentage of their insurances
with the corporation.
The Insurance Amendment Act 1950 imposed certain limitations on expenses of
management. The general insurance council constituted what was called the tariff
committee to control and regulate terms and conditions of business.

In 1972, the General Insurance Business (Nationalization) Act 1972 was passed
under the provisions of this act. The general insurance corporation of India was
established for the purpose of directing, controlling and caring on the general
insurance business and all the 106 insurers were merged and grouped into four
subsidiaries of the general insurance corporation of India namely:
 National Insurance Company Ltd., with its head office at Calcutta.
 The New India Assurance Company Ltd., with its head office at Bombay.
 The Oriental Insurance company Ltd., with its head office at Delhi.
 The United India Insurance Company Ltd., with its head office at Madras.

Three Phases of De-Tariffing

India’s general insurance industry has undergone de-tariffing in three phases:
 1994 -- marine cargo, personal accident, health, banker liability and aviation
 2005-06 -- marine hull segment
 2007 -- Fire, engineering and motor own damage (OD). However, the de-
tariffing did not
immediately allow for free pricing. Instead, insurers were required to follow
the “file and use” method, whereby they were expected to file a charter of
proposed rates, which was then approved by IRDA.
The only segment that remains under a tariff regime is the third party motor
business, although there has been a large upward revision in this area’s premium
rates by regulators in recent times. Moreover, commercial third party motor
business, which has traditionally contributed to adverse claims ratios, has been
moved to a common pool, resulting in loss sharing.

Insurance sector – moving quickly

The Indian insurance sector is rapidly moving towards international standards of
free (risk-based) market pricing and new/innovative product offerings. Big
changes have occurred over the last seven years, during which the sector was
opened to private participation, but with foreign direct investment (FDI) capped at
26%. With the regulator possibly lifting the ceiling on foreign ownership to 49%,
the capacities of domestic partners would no longer constrain capital levels for
joint ventures.

In the private sector, there were nine players with Future Generali the latest entrant
as of September 2007. A number of potential new entrants await the necessary
approvals. Most private players have tie-ups with international companies to
compensate for their lack of experience in insurance. Within the private sector,
ICICI Lombard (IL) leads with 12.4% market share for the period April-December
2007. Recently, Reliance General Insurance (RGI) as emerged as the fastest
growing player, recording a 150% rise year-on-year in gross direct premium in the
first nine months of 2007-08
 1.2. COMPANY PROFILE

Founded in 1954, MAX LIFE is one of India's leading finance companies. Quality
in lending, transparency in transactions, outstanding customer care and an
unyielding commitment to being the best, has made MAX LIFE one of the most
respected finance companies in India. MAX LIFE is part of the [RESPECTIVE
COMPANY NAME] Group of companies founded by TV [RESPECTIVE
COMPANY NAME] Iyengar in the early part of last century. In the 1950s, the
[RESPECTIVE COMPANY NAME] group diversified into general insurance
with the Madras Motor and General Insurance Company (MMGI).

MAX LIFE Limited was started as a subsidiary of MMGI to provide customers

with a range of finance and hire-purchase options for Light, Medium & Heavy
Commercial Vehicles, Cars, Jeeps, Machinery and Equipment. It has over 50 years
of experience in operation, and is recognized as one of the most trusted and
respected NBFC's in India. The company continues to enjoy highest credit rating
of AAA from leading rating agencies in the country. MAX LIFE has a Nation-
wide presence with over 167 branches, 650,000 depositors and nearly 100,000
commercial vehicle and car finance customers.

MAX LIFE is one of the most well known and oldest insurance companies in the
world, having begun its operations in 1710. With an almost 300 year heritage,
RSA is one of the world’s leading multinational quoted insurance groups. It has
the capability to write business in over 130 countries and with major operations in
the UK, Scandinavia,
Canada, Ireland, Asia and the Middle East and Latin America. Focusing on
general insurance, it has around 22,000 employees and in 2007, its net written
premium were £5.8bn
MAX LIFE is a joint venture between MAX LIFE and Royal & Sun Alliance and
in April 2000, a letter of undertaking was signed to establish a joint venture
insurance company. On 28th August 2000 the license application was submitted to
the IRDA and the license was granted to MAX LIFE on 23rd of October 2000 by
the IRDA, making it the first private insurer to obtain a license for conducting in
the Non-Life segment.

MAX LIFE was formally launched as a company on 12th March 2001. Since then
the company have been innovating constantly for its customers. Like being the
first to offer cashless hospitalisation, the first to offer segment specific business
solutions, first to offer co-branded credit cards, first to introduce industry-specific
proposition. Their product range is designed to provide extra cover to a varied
range of customers starting from the common man to corporate conglomerates.
The company is now in the eighth year of operation. The shareholders of MAX
LIFE are as follows:
 MAX LIFE and Associates 74%
 MAX LIFE London 26%

Working from a corporate office in Chennai, MAX LIFE has been carrying out its
business in over 150 cities with four fully operational Regional Centers in
Chennai, Mumbai, Guargon and Kolkata supported by a network of 35 Branch
Offices. Each of these Regional Offices is staffed by a team of insurance
professionals responsible for Customer Servicing, Business Development,
Underwriting, Operations and Claims Management.

Royal brings the golden heritage and reliability of MAX LIFE (AAA), one of
the most respected non-banking financial institution in India, and RSA, one of
the oldest and the second largest general insurer in the UK.
 The coming together of these two financial giants allows them to offer its
customers the best global practices in insurance industry, innovation in terms of
products and services, and unmatched, personalized customer service.

1.3. PRODUCT PROFILE

Marine Insurance
MAX LIFE brings to India a wide range of marine cargo products from various
international markets. Their products considerably widen the scope of coverage
presently enjoyed by the insured population without necessarily involving a high
premium.

Burglary insurance
Burglary Insurance for machinery, stock in trade, furniture, fixtures & fittings and
for goods held in trust or on commission for the insured is responsible. Burglary
Insurance covers burglary or housebreaking accompanied by either forcible or
violent entry into/exit from the premises and hold-up.

Engineering Insurance:

 Erection All Risks Insurance

The Erection All Risks policy is a comprehensive insurance, which provides
complete protection against all types of risks associated with erection, testing,
commissioning of machinery, plant and equipment during constructional stage.

 Boiler & Pressure Plant Insurance

It covers the risk of explosion and collapse of any boiler or other pressure plant in
the course of ordinary working.

 Contractor's All Risks Insurance

All types of civil engineering works, ranging from small buildings to massive
dams are exposed to damage from a wide range of causes such as fire, lightning,
flood, inundation, storm, cyclone and other accidental damages. It is a
comprehensive insurance which provides complete protection against all types of
civil construction risks.

 Machinery Breakdown Insurance

MAX LIFE extend its hand offering Machinery Breakdown Insurance Cover ably
supported by most capable technocrats to throw more light about the mechanical
side of all machines.

 Marine-Cum-Erection Insurance
It is developed as a comprehensive product to manage the risk and insurance needs
in course of erection as well as during transit. It is a combination of Erection-All-
Risks and Marine Insurance to cater to the needs of the client where
Marine/Transit insurance is connected with Erection All Risks Insurance of any
project.

 Contractor's Plant & Machinery

Contractor's Plant & Machinery is an exclusive all risks policy covering the plant
& machinery used by the contractors at the site for various projects. It covers the
property whether they are at work or at rest or being dismantled for the purpose of
cleaning or overhauling, or in the course of operations or when being shifted
within the premises or during subsequent re-erection, but in any case only after
successful commissioning.

Liability Insurance:

 Product Liability Insurance

Liability arises from a civil wrong or breach of personal duty imposed by law on a
person and owed to his/her fellow citizens. In some countries legal rights and
duties are framed in a Civil Code. In others they are not codified but drawn from
the precedent of decisions handed down in the courts over the centuries; this is
known as "Common Law".

 Workmen's Compensation Insurance

It provides Insurance against occupational accident or disease to an employee
whilst in course of his employment.

 Public Liability Act

It provides indemnity against the Insured's liability at law to the public in general
(excluding employees) for bodily injury and loss of or damage to property due to
the business activities carried on in insured's premises.

Business solutions:

 Industrial All Risks Policy

It’s a wide and comprehensive cover for the large sized business where the assets
at all locations of the insured exceed Rs.100 Corers. It is an All Risks Policy
covering a wide range of perils such as fire and allied perils, burglary, accidental
damage, breakdown as well as business interruption.

 Office Shield
A flexible policy specifically designed to meet the insurance needs of your modern
office, irrespective of the number of locations.

 Hotel Shield
Tailor-made cover designed to suit the specific needs of the Hotel Industry.

 Enterprise Shield.
It is a newly devised package providing total insurance solutions for industries.
You do not need to analyze and evaluate a large number of insurance policies to
insure your business completely.

 Education Shield
Tailor-made cover designed to suit the specific needs of Education Industry.

 Traders Shield
It is an attractive policy that provides shopkeepers with a basic insurance package
and a further range of optional covers.

 All Risks Policy for Portable Equipments

It offers an overall solution to cover portable items like laptops, mobiles, cameras
and projectors.

 Standard Fire and Special Perils Policy

It offers cover against fire and allied perils and the perils of nature. The policy can
cover building (including plinth and foundation), plant and machinery, stocks,
furniture, fixtures and fittings and other contents.
 Consequential Loss (Fire) Insurance
It provides protection against loss of profits in business due to an interruption in
business consequent upon an insured peril covered under the material damage
policy.

Employee solutions:

 Group Personal Accident Policy

It is a worldwide cover providing protection for the employees against any
accidental injuries sustained by the individuals resulting in death and disablement.

 Group Health
Health Premium Platinum is a comprehensive health insurance package, designed
for the employees of company and their family members.

 Workmen's Compensation
Workmen's Compensation provides cover to target clients as required by law in
support to project insurances or property insurances.

2.1 NEED OF THE STUDY

This study helps the company to identify its competitive position among its
industrial competitors by which the company can further improve its performance
to enjoy high reputation among clients.
This study also helps in making necessary changes in the attributes of the
insurance cover offered by the company so that the customers can enjoy the
benefits of the insurance cover.

The need for the study also arises to identify and offer additional insurance
products according to the expectations of the customers.
2.2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

 To compare the performance of MAX LIFE with other competitors in the

general insurance industry.

SECONDARY OBJECTIVES

 To identify the position MAX LIFE holds among other private players.

 To find out the strengths and weaknesses of the company’s

insurance schemes

 To study consumer’s awareness towards insurance products

 To identify the customer’s perception about the company and its

products.
 2.3 SCOPE OF THE STUDY

This study has a wider scope among the insurance sector. The study which
focuses on various aspects such as competitive position of MAX LIFE ,
strengths and weaknesses of insurance covers, customer’s perception, etc also
holds good for other companies in the life and non-life insurance segment.

The outcome of the study, which are based on the above aspects can be
utilized by the marketing department of both life and non-life insurance
companies.
 2.4 LIMITATIONS OF THE STUDY

13
2.5 REVIEW OF LITERATURE

According to the recent report of Lloyd, the Indian insurance market is likely to
change in the next 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.

Despite significant positive changes, the insurance market must still face the
challenge of poor customer perceptions and the danger that the pace of reform will
slow. Several significant structural changes are expected in the insurance market
that will influence the country’s development in the medium to long term

So far, the entry of a large number of Indian and foreign private companies has led
to greater choice in terms of products and services for Indian consumers. A
growing realisation of the benefits and importance of sophisticated insurance and
reinsurance tools has broadened the pool of potential buyers of insurance. Given
this backdrop, the Indian insurance market has experienced considerable growth
since its liberalisation in 2000. Over the next three years, the Indian insurance
market is likely to see its process of maturation accelerate. Regulatory changes in
the four areas– products, market players, distribution and reinsurance – will drive
change in the Indian insurance market in the medium term.

• Price competition has already begun to increase and is likely to continue to do so

for the next 18 to 24months.
• The practice of cross-subsidisation is likely to be phased out as risk-based
pricing is used increasingly for all products.

• As Indian insurers build a profitable portfolio, they are likely to have increased
access to the international reinsurance markets.

• Finally, rising demand for insurance is likely to be met by increased capacity as

foreign insurers look to access this growing market.

As per the recent research by Moody’s – ICRA Global Insurance, the following
facts relating to the performance of both private and public sector general
insurance companies were made.

Private Sector’s Growing Influence

The private sector has been steadily growing market share despite the fact that
public sector companies have been around for a lot longer. The private insurers
enjoy considerable operational flexibility, whereas the public sector companies
have been constrained by their traditions and inability to innovate.

Market Share – Redistribution

Due to the effectiveness of private marketing strategies, the market share of public
insurers has consistently declined. Given a faster growth rate, the market share of
the private sector is catching that of the public sector and the two will likely
converge over the medium term.

The private sector share of third party motor business was much lower in the past
than that for public firms as the former did not pursue this market because of its
negative underwriting margins. However, with the formation of the common third
party motor pool, the situation has changed. The losses related to this segment
now get shared among all the players, leaving little incentive to avoid this
segment.

Fire and engineering now broadly contribute a similar proportion of overall

business for the private and public sectors. In terms of overall business, the focus
has shifted towards the retail segments of motor and health, where good growth is
expected.

Operational Flexibility
The public entities lack the operational flexibility enjoyed by the private players.
Their limited capacity to innovate has impacted their ability to tailor and
aggressively price products for large corporations. The private players by contrast
have focused on account-level profitability for large corporations and have
expanded their shares by cross-subsidizing tariffed products.

Client Servicing
The public insurers have also been hampered in claims servicing by their process
oriented approach and limited operational flexibility. They have been unable to
expedite claim settlements through out-of-court negotiations since a large
proportion of their claims pertain to the third party motor segment, which is
subject to adjudication by the Motor Accident Claim Tribunal. The result is a
time-consuming and involved process.

Strong Infrastructure and Systems

Private players are not hindered by their charters or legacy systems and have
constructed technologically advanced infrastructure. They started with large
investments in technology, which helped them to build robust data management
systems. This characteristic enables in turn quick and effective decision-making
for pricing and claims settlements, attributes vital to building franchises.
On the other hand, public entities have only recently upgraded their systems and
have to grapple with transition issues, such as moving from paper to paper-less
systems. They are encumbered by legacy systems and fragmented databases, and
have not fully used their past claim experiences, something which could give them
a strong pricing edge in a de-tariffed environment.

Focused Underwriting Strategy

The private players, especially during their initial years, have selectively targeted
the more profitable lines of the public sector companies for growth. They benefit
from the experiences of the public sector as well as their international joint-
venture partners. They have drawn talent from public sector companies.

Superior Claim Paying/Processing Capability

The combination of superior technology and selective underwriting has allowed
the private sector to set high standards for policyholder services, thereby
differentiating themselves from public sector insurers. The claim settlement
performance of the private sector has also been superior because of the limited
amount of third party motor business that they have underwritten. Such claims
normally take a longer time to settle.

Distribution – Rise of Bancassurance

The Indian general insurance industry has historically been dominated by the
agency channel, through which 75% of total premium income is sourced. But in
recent periods other channels – for example, bancassurance, brokers, corporate
agents, direct marketing and direct sales channels -- are gaining importance. Most
insurers now have tie-ups with the banks, which act as corporate agents and are
remunerated on a commission basis. For example, ICICI Lombard sources a major
portion of its business from a tie-up with ICICI Bank. Similarly, Bajaj Allianz
General Insurance Company Limited (BAIL, second largest private player) has tie-
ups with large number of banks, which contribute a big share of its total premium
income.
As of December 31 2007, 267 brokers were registered with IRDA, including 228
direct brokers, 33 composite brokers and 6 reinsurance brokers. In a deregulated
environment, the broking community will have plenty of opportunity to become an
integral part of the insurance and risk financing process. At this time, low cost
channels like tele-sales and the internet are still not developed in India, mainly due
to relatively poor knowledge about insurance products and low internet
penetration.

One conclusion is certain– the Indian non-life market is set to grow dramatically
over the next few years. The simplest forecasts suggest that premium income
could double in the next few years to reach USD11.6bn in 2010. When the
structural changes above are taken into consideration, this growth becomes
exponential, with relatively slow growth in 2007 rising to rapid growth by 2010.
 3.1 RESEARCH METHODOLOGY

RESEARCH DESIGN
Research design is the plan, structure to answer whom, when, where and how the
subject is under investigation. Here plan is an outline of the research scheme &
which the researcher has to work. The structure of the research is a more specific
outline and the strategy out, specifying the methods to be used in the connection &
analysis of the data.

Descriptive Research Design

The type of research design used in this study is the descriptive research. The main
characteristics of this method is that the researcher has no control over the
variables and he can only report what has happened or what is happening. This
study which compares the performance of MAX LIFE with its industrial
competitors has been undertaken based on the opinions of the consumers. Hence,
this research study is categorized as Descriptive Research Method

DATA COLLECTION
The main source of information for this study is based on the data collection. Data
collected are both primary and secondary in nature.

 Primary Data
Primary data have been directly collected from the clients of MAX LIFE as well
from the clients of other insurance companies by survey method through
undisguised structured questionnaire.
Questions like open ended, close ended, multiple choice, dichotomous and ranking
type have been used for the purpose of data collection.

 Secondary Data
Secondary data have been collected from official website of MAX LIFE and also
from other official websites related to general insurance industry

TYPES OF QUESTIONS

 Open ended question

Open ended question are the type of question used to get suggestion from the
respondent in order to give feed back to the organization.

 Close ended question

Close ended question are the type of questions with a clear declined set of
alternatives that confine the respondents to choose one of them.

 Multiple choice question

It consists of multiple choices in which the respondents can choose more than one

 Likert scale
It uses 5 point or 7 point scale to elicit respondent’s favour or unfavour towards an
object.

 Dichotomous question
It consists of two choices of answers in which the respondent has to choose one of
them.

 Ranking
In ranking, questions will have the ranking skill, which the respondents are free to
rank them according to their preference.

SAMPLING
Convenience sampling is been used in the study. This type of sampling is basically
used when you simply stop anybody in the street who is prepared to stop, or when
you wander round a business, a shop, a restaurant, a theatre or whatever, asking
people you meet whether they will answer your questions. In other words, the
sample comprises subjects who are simply available in a convenient way to the
researcher. There is no randomness and the likelihood of bias is high. You can't
draw any meaningful conclusions from the results you obtain.

However, this method is often the only feasible one, particularly for students or
others with restricted time and resources, and can legitimately be used provided its
limitations are clearly understood and stated.

SAMPLE SIZE
Sample size is the total number of samples selected for the study from the
sampling population. Sample size for the study was arrived at 120 by using the
formula:

n = z2 * p * q

e2
n = 1.962 * 0.9143 * .086
0.052
= 120

METHODS / TOOLS OF ANALYSIS

Tools used for analysis are:
 Chi-square test
 Weighted average method
 Interval estimation
 Karl Pearson’s coefficient of correlation
  H-test
 Graph
 Percentage

1. CHI-SQUARE TEST
There may be situation in which it is not possible to make any rigid assumption
about distribution of the population from which samples being drawn. This
limitation has led to the development of a group of alternative techniques known
as non-parametric tests. Chi-square describes the magnitude of the discrepancy
between theory and observation.

n
χ² = ∑ [(Oi – Ei) 2] with n-1 degrees of freedom
i =1 Ei
2. WEIGHTED AVERAGE METHOD
This method is widely used in finding the weightage given to different attributed
by respondents. The respondents assign different weightage to the different
ranking and weighted average percentage is found and graphs are plotted.

Net score = (weight for column * no. of respondents)

Total weight

Net score in %age = net score in row

Total net score*100

3. INTERVAL ESTIMATION METHOD

An estimation of a population parameter given by 2 numbers between when the
parameter may be considered to lie is called interval estimation of the parameter.

( p - z √pq ; p + z √pq )
n n

p = sample proportion of success

q = sample proportion of failure
z = standard variance of the confidence level
n = no. of sample size

3. KARL PEARSON’S COEFFICIENT OF CORRELATION

Correlation analysis helps us in determining the degree of relationship between 2

or more variables. The value of the coefficient of correlation as obtained by the
below formula shall always lie between +1 and -1. When r = +1, it means there is
perfect positive correlation between the variables. When r = -1, there is perfect
negative correlation between the variables and when r = 0, there is no relationship
between the two variables.
∑ xy
r = --------------------

√∑x2 - ∑ y2

x = (X - X) ; y = (Y - Y)
4. H-TEST
When more than two random samples are given, H-test is used. It is used to test
the null hypothesis that several independent samples come from the same
population.

H = [12 / (N (N+1)) * (R12/ n1 + R22 / n2 + R32 / n3 + R42 / n4 + R52 / n5)] – 3 (n +

1)
Ri = Sum of ranks of sample i

5. PERCENTAGE ANALYSIS
Percentage analysis shows the entire population in terms of percentages.

Percentage = No. of respondents *100

Total respondents

6. GRAPHS
Graphical method was used in order to represent the factor in various graphical
methods like pie-chart, bar diagram and cylinder.

3.2.1 TABLE SHOWING AGE OF RESPONDENTS

 [Link] Age No. Of Respondents Percentage (%)
1 Less than 25 yrs 43 35.83
2 25-35 32 26.67
3 35-45 20 16.67
4 45-55 12 10
5 Above 55 yrs 13 10.83
Total 120 100

Findings: The above table shows that 35.83% of the respondents belong to the age group
of less than 25 years, 26.67% fall under the category of 25-35 years, 16.67% belong to
the age group of 35-45 years, 10% belong to the age group of 45-55 years and the rest
10.83% above 55 years

Inference: It is inferred that there is a higher percentage (i.e. 35.83%) of respondents in

the age group of less than 25 years and comparatively very lower percentage (i.e. 10%) of
respondents in the age group of 45-55 years

3.2.1 CHART SHOWING AGE OF RESPONDENTS

40 35.8
35 3
30 26.6
7
25 16.6
No. of
20 7
respondents 10.8
10
15 3
10
5
0
Less 25- 35-4545-55Above
than 35 55 yrs
25 yrs

Age in years
 3.2.2 TABLE SHOWING GENDER OF RESPONDENTS

[Link] Gender No. Of Respondents Percentage (%)

1 Male 81 67.5
2 Female 39 32.5
Total 120 100

Findings: The above table shows that 67.5% of respondents are male and 32.5% are
female respondents

Inference: It is inferred that there is a higher percentage (i.e. 67.5%) of male

respondents.

3.2.2 CHART SHOWING GENDER OF RESPONDENTS

67.5
70
60
50
40 32.5
30
20
10
[Link]

MaleFemale
 3.2.3 TABLE SHOWING OCCUPATION OF RESPONDENTS

[Link] Occupation No. Of Respondents Percentage (%)

1 Service 25 20.83
2 Govt. employee 16 13.33
3 Business 23 19.17
4 Professional 19 15.83
5 Others 37 30.83
Total 120 100

Findings: The above table shows that 20.83% of respondents belong to the category of
services, 13.33% are government employees, 19.17% belong to the category of business,
15.83% are professional and the rest 30.83% belong to other category, which comprises
of private sector employee

Inference: It is inferred that there is a higher percentage (i.e.30.83%) of respondents in

the category comprising private sector employees.

3.2.3 CHART SHOWING OCCUPATION OF RESPONDENTS

 35 30.83
30
25
20 20.83 19.17
15
15.83
10
13.33
5
0
No. of

Service Govt. BusinessProfessionalOthers

employee
occupation

3.2.4 TABLE SHOWING NUMBER OF MEMBERS IN A FAMILY

[Link] No. of family members No. Of Respondents Percentage (%)

1 2-4 91 75.83
2 5-8 29 24.17
3 More than 8 - -
Total 120 100

Findings: The above table shows that 75.83% of respondents have 2-4 members in their
family and the rest 24.17% of respondents have 5-8 members in their family.

Inference: It is inferred that a higher percentage (75.83%) of respondents have 2-4

members in their family

3.2.4 CHART SHOWING NUMBER OF MEMBERS IN A FAMILY

 More than 8 0

24.17
No. of family
5 to 8

2 to 4 75.83

0 20 40 60 80
[Link] respondents

3.2.5 TABLE SHOWING ANNUAL INCOME OF RESPONDENTS

[Link] Annual income No. Of Respondents Percentage (%)

1 Less than Rs.2 lakhs 31 25.83
2 Rs.2-5 lakhs 51 42.5
3 Rs.5 -10 lakhs 20 16.67
4 Rs.10-20 lakhs 9 7.5
5 Above Rs.20 lakhs 9 7.5
Total 120 100

Findings: The above table shows that 25.83% of respondents fall under the income
category of less than 2 lakhs, 42.5% fall under the category of 2-5 lakhs, 16.67% fall
under the income category of 5-10 lakhs, 7.5% in the category of 10-20 lakhs and the rest
7.5% in the income category above 20 lakhs

Inference: It is inferred that there is a higher percentage (42.5%) of respondents in the

income category of 2-5 lakhs and comparatively a very lower percentage (7.5%) of
respondents in the income category of 10-20 lakhs and above 20 lakhs

3.2.5 CHART SHOWING ANNUAL INCOME OF RESPONDENTS

42.5
45
40
35
30
25 25.83
20
15 16.67
10
5
No. of

0 7.5 7.5

Less thanRs.2-5 lakhsRs.5 -10 Rs.10-20Above Rs.20

Rs.2 lakhslakhs lakhslakhs

Annual Income

3.2.6 TABLE SHOWING THE NECESSITY OF HAVING A GENERAL

INSURANCE COVER

[Link] Opinion No. Of Respondents Percentage (%)

RSA Other companies RSA Other companies
1 Yes 60 60 100 100
2 No - - - -
Total 60 60 100 100
Findings: The above table shows that 100% of respondents, who are policy holders with
MAX LIFE and 100% who are policy holders with other companies, have responded that
it is necessary to have a general insurance cover.

Inference: It is inferred that all the respondents surveyed have stated that it is necessary
to have a general insurance cover.

3.2.6 CHART SHOWING THE NECESSITY OF HAVING A

GENERAL INSURANCE COVER

60
60
60
50
40
30
20
[Link] RSA
10
respondents Other companies
0

0 0

yesno

3.2.7 TABLE SHOWING NO. OF GENERAL INSURANCE POLICIES HELD

BY RESPONDENTS

[Link] No. of policies No. Of Respondents Percentage (%)

1 1 62 51.67
2 2-4 41 34.17
3 More than 4 17 14.17
 Total 120 100

Findings: The above table shows that 51.67% of respondents hold 1 policy, 34.17%
holds 2 to 4 policies and the rest 14.17% holds more than 4 general insurance policies.

Inference: It is inferred that a higher percentage (51.67%) of respondents holds 1 general

insurance policy.

3.2.7 CHART SHOWING NO. OF GENERAL INSURANCE POLICIES HELD

BY RESPONDENTS

51.67
60
50
40 34.17
30
20
10 14.17
0
[Link]

1 2 to 4 More than 4
[Link] policies

3.2.8 TABLE SHOWING WHETHER THE GENERAL INSURANCE

POLICIES ARE TAKEN FROM THE SAME COMPANY

[Link] Opinion No. Of Respondents Percentage (%)

 1 Yes 66 55
2 No 54 45
Total 120 100

Findings: The above table shows that 55% of respondents hold general insurance policy
with the same company and 45% of respondents hold it in various other companies.

Inference: It is inferred that a higher percentage (55%) of respondents holds general

insurance policy with the same company.

3.2.8 CHART SHOWING WHETHER THE GENERAL INSURANCE

POLICIES ARE TAKEN FROM THE SAME COMPANY

55
60
50 45
40
30
20
10
0
[Link]

YesNo

INTERVAL ESTIMATION: WHETHER THE GENERAL INSURANCE

POLICIES TAKEN FROM THE SAME COMPANY
Formula:

pq
p  Z/2
n

No. of respondents who have taken policies from the same company: 66
No. of respondents who have not taken policies from the same company: 54

n = sample size = 120

p= Number of yes = 66 = .55

Sample size 120

q = 1-p = 1-.55 = .45

Z  / 2 = 1.96 at 95% confidence level

pq .55 * .45
Standard error = n = = 0.0454

120

Interval estimation= p Z / 2pq

n

= (0.55  1.96(0.0454)
= 0.4610>p>0.639
= 46.1%, 63.9%

Conclusion
Hence, we conclude that the percentage of respondents who have taken policies
from the same company lies between 46.1% to 63.9%

3.2.9 TABLE SHOWING [Link] COMPANIES IN WHICH RESPONDENT IS A

POLICY HOLDER

[Link] No. of companies No. Of Respondents Percentage (%)

1 2 companies 43 79.63
2 2-5 10 18.52
3 More than 5 companies 1 1.85
Total 54 100

Findings: The above table shows that 79.63% of respondents are policy holders in 2
companies, 18.52% of respondents are policy holders in 2-5 companies and the rest
1.85% of respondents are policy holders in more than 5 companies.

Inference: It is inferred that a higher percentage of respondents (79.63%) are policy

holders in at least 2 companies.

3.2.10 CHART SHOWING [Link] COMPANIES IN WHICH RESPONDENT IS

A POLICY HOLDER
 79.63
80
70
60
50
40 18.51
30
[Link] 20
10 1.851
0

2 companies2 to 5More than 5

companies

3.2.10 TABLE SHOWING COMPANIES ENJOYING HIGH

REPUTATION AMIDST CUSTOMERS.
[Link] Companies No. Of Respondents Percentage (%)
1 MAX LIFE 47 39.17
2 TATA AIG 13 10.83
3 Bajaj Allianz 15 12.5
4 Iffco tokio 8 6.67
5 ICICI 12 10
6 Reliance 14 11.67
7 Others 11 9.17
Total 120 100

Findings: The above table shows that 39.17% of respondents have stated MAX LIFE ,
10.83% have stated TATA AIG, 12.5% have stated Bajaj Allianz, 6.67% have stated
Iffco Tokio, 10% of them have stated ICICI, 11.6% of them have stated Reliance and the
rest 9.17% of them have stated other companies like Cholamandalam and Public sector
insurance companies
Inference: It is inferred that higher reputation amidst customers is enjoyed by MAX
LIFE with 39.17% of respondents stating it.

3.2.10 CHART SHOWING COMPANIES ENJOYING HIGH

REPUTATION AMIDST CUSTOMERS

Others 9%

Reliance 12% Royal Sundaram 39%

ICICI 10%
Iffco tokio 7%
Bajaj AllianzTATA AIG 12%11%
3.2.11 TABLE SHOWING AWARENESS AMONGST MAX LIFE
CUSTOMERS TOWARDS THE INSURANCE SCHEMES OFFERED BY
MAX LIFE
[Link] Awareness No. Of Respondents Percentage (%)
1 Yes 45 75
2 No 15 25
Total 60 100

Findings: The above table shows that 75% of respondents, who are policy holders with
MAX LIFE , have stated that they are aware of various insurance schemes offered by
MAX LIFE and the rest 25% of respondents who are policy holders with MAX LIFE
have stated that they are not aware of all the insurance schemes offered by the company

Inference: It is inferred that higher percentage (75%) of respondents, who are policy
holders with MAX LIFE are aware of various insurance schemes offered by the
company.

3.2.11 CHART SHOWING AWARENESS AMONGST MAX LIFE CUSTOMERS

TOWARDS THE INSURANCE SCHEMES OFFERED BY MAX LIFE
 25

Yes No

75

INTERVAL ESTIMATION: AWARENESS AMONGST MAX LIFE

CUSTOMERS TOWARDS THE INSURANCE SCHEMES OFFERED BY MAX
LIFE

Formula:

pq
p  Z/2
n

No. of MAX LIFE customers who are aware of various insurance schemes offered by
MAX LIFE : 45

No. of MAX LIFE customers who are aware of various insurance schemes offered by
MAX LIFE : 15

n = sample size = 60

p= Number of yes = 45 = .75

Sample size 60
q = 1-p = 1-.75 = .25

Z  / 2 = 1.96 at 95% confidence level

pq .75 * .25
Standard error = n = = 0.056

60

Interval estimation= p Z / 2pq

n

= (0.75  1.96(0.056)
= 0.64024>p>0.8598
= 64.02%, 85.98%

Conclusion
Hence we conclude that the percentage of respondents aware of various insurance
schemes offered by MAX LIFE lies between 64.02% to 85.98%
3.2.12 TABLE SHOWING RESPONDENT’S OPINION TOWARDS MAX LIFE ’S
OFFERING OF CUSTOMER CENTRIC PRODUCTS

[Link] Opinion No. Of Respondents Percentage (%)

1 Highly agree 5 8.3
2 Agree 48 80
3 Neither agree nor disagree 5 8.3
4 Disagree 2 3.3
5 Highly disagree - -
Total 60 100

Findings: The above table shows that 8.3% of respondents, who are policy holders with
MAX LIFE highly agree, 80% of them just agree, 8.3% of them neither agree nor
disagree and the rest 3.3% of them disagree that MAX LIFE is known for offering
customer-centric products.

Inference: It is inferred that a higher percentage (80%) of respondents, who are policy
holders with MAX LIFE have agreed that MAX LIFE is well known for offering
customer centric products.

3.2.12 CHART SHOWING RESPONDENT’S AGREEMENT TOWARDS MAX

LIFE ’S OFFERING OF CUSTOMER CENTRIC PRODUCTS

Highly disagree0

Disagree3.3

Neither agree nor disagree 8.3

Agree 80

Highly agree 8.3

0 20 40 60 80 100
[Link] respondents

3.2.13 TABLE SHOWING THE RESPONDENT’S COMMENT ON

THE SERVICE OF MAX LIFE

[Link] Comment No. Of Respondents Percentage (%)

1 Excellent 23 38.33
2 Very good 30 50
3 Moderate 7 11.67
4 Poor - -
5 Very poor - -
Total 60 100
Findings: The above table shows that 38.33% of respondents have indicated the service
of MAX LIFE as excellent, and 50% of them have stated it as very good and 11.67% of
them have indicated it as moderate.

Inference: It is inferred that a higher percentage (50%) of respondents have indicated

that the service rendered by MAX LIFE as very good.

3.2.13 CHART SHOWING THE RESPONDENT’S COMMENT ON

THE SERVICE OF MAX LIFE

60
50
50

40 38.33

30
No. of

20
11.67
10
0 0
0
ExcellentVery goodModerate Poor Very poor

3.2.14 TABLE SHOWING SOURCES BY WHICH THE

RESPONDENTS BECAME FAMILIAR OF MAX
LIFE

[Link] Source of information No. Of Respondents Percentage (%)

1 Ads (print, radio, TV) 21 35
2 Insurance agents 14 23.33
3 Friends & Relatives 25 41.67
4 Others - -
Total 60 100
Findings: The above table shows that 35% of respondents have indicated advertisement,
23.33% of them have stated insurance agents and 41.67% of them have indicated friends
& relatives as means by which they came to know about MAX LIFE .

Inference: It is inferred that a higher percentage (41.67%) of respondents has indicated

friends and relatives as means by which they came to know about MAX LIFE .

3.2.14 CHART SHOWING SOURCES BY WHICH THE

RESPONDENTS BECAME FAMILIAR OF MAX LIFE

Others
0% Ads (print, radio, TV)
35%
Friends &
Relatives 42%

Insurance
agents 23%

3.2.15 TABLE SHOWING THE PERIOD OF INSURANCE COVER HELD

BY RESPONDENTS.

[Link] Period of insurance cover No. Of Respondents Percentage (%)

1 Annual policy 61 50.83
2 1-5 year 35 29.17
3 5-10 year 11 9.17
4 10-15 year 13 10.83
 5 Greater than 15 years - -
Total 120 100

Findings: The above table shows that 50.83% of respondents hold annual policy, 29.17%
of them hold 1-5 year policy cover, 9% of them hold 5-10year policy and 10.83% of them
hold 10-15 year policy.

Inference: It is inferred that a higher percentage (50.83%) of respondents holds annual

policy.

3.2.15 CHART SHOWING THE PERIOD OF INSURANCE COVER HELD

BY RESPONDENTS.

greater than 5 years0

period of insurance

10-15 year 10.83

5-10 year 9.17

1-5 year 29.17

Annual policy 50.83

0 10 20 30 40 50 60
[Link] respondents

3.2.16 TABLE SHOWING THE AMOUNT OF YEARLY

INSURANCE PREMIUM PAID

[Link] Yearly premium paid No. Of Respondents Percentage (%)

1 Less than Rs.5000 43 35.83
2 Rs.5000-15000 58 48.33
3 Rs.15000-25000 12 10
4 Greater than Rs.25000 7 5.83
 Total 120 100

Findings: The above table shows that 35.83% of respondents have been paying insurance
premium less than Rs.5000 yearly, 48.330% of them have been paying premium between
Rs.5000-15000 yearly, 10% of them have been paying between Rs.15000-25000 as
yearly premium and 5.83% of them have been paying more than Rs.25000 as yearly
premium.

Inference: It is inferred that a higher percentage of respondents (48.3%) have been

paying yearly insurance premium between Rs.5000-15000

3.2.16 CHART SHOWING THE AMOUNT OF YEARLY

INSURANCE PREMIUM PAID

Greater than Rs.25000 5.83

Rs.15000-25000 10
48.33
Rs.5000-15000

Less than Rs.5000 35.83

0 10 20 30 40 50

[Link] respondents
 APPLYING KARL PEARSON’S CORRELATION COEFFICIENT BY
COMPARING ANNUAL INCOME AND THE YEARLY PREMIUM AMOUNT
PAID

Premium amount Less than Rs.5000 - Rs.15000 - More than

Rs.5000 15000 25000 Rs.25000
No. of respondents 43 58 12 7

Annual income Less than Rs.2-5 Rs.5-10 Rs.10-20 Above

Rs.2 lakhs lakhs lakhs lakhs Rs.20 lakhs
No. of respondents 31 51 20 9 9

Premium amount Annual income

(X) (Y)
43 31
58 51
12 20
7 9
0 9

∑ xy
r = --------------------

√∑x2 - ∑ y2

x = (X - X) ; y = (Y - Y)
Premium Annual
(X) x x2 income (Y) y y2 xy
43 13 169 31 7 49 91
58 28 784 51 27 729 756
12 -18 324 20 -14 16 72
7 -23 529 9 -15 225 345
0 0 0 9 -15 225 0
∑X = 120 ∑ x2= ∑ Y= 120 ∑ y2= ∑ xy = 1264
1806 1244

X = 120 = 30
4

Y = 120 = 24
5

∑ x2 = 1806 ; ∑ y2 = 1244 ; ∑ xy = 1264

1264
r= = .8433

√1806 * 1244
Conclusion:

The variables annual income and premium amount paid are positively correlated. Hence,
the annual income has an impact on the premium amount paid.
 3.2.17 TABLE SHOWING RESPONDENT’S COMMENT ON THE
YEARLY PREMIUM PAID

[Link] Comment No. Of Respondents Percentage (%)

RSA Other co. RSA Other Co.
1 Very high - - -
2 High 39 12 65 20
3 Reasonable 21 48 35 80
4 Low - - -
5 Very low - - -
Total 60 60 100 100

Findings: The above table shows that 65% of respondents, who are policy holders with
MAX LIFE have stated that the yearly premium paid, is high and the rest 35% of them
have stated it is reasonable. Amongst the respondents, who are policy holders with other
companies 20% of them have stated that the yearly premium being paid is high and the
rest 80% of them have stated that it is reasonable.

Inference: It is inferred that a higher percentage (65%) of policy holders of MAX LIFE
feel that the premium paid is high and only 20% of policy holders of other companies
have stated it is high
3.2.17 CHART SHOWING RESPONDENT’S COMMENT ON THE YEARLY
PREMIUM PAID

90 80
80
70 65
60
50 RSA
40 35 Other Co.
30
no. of

20 20
10
0

reasona
hi

very
very
 APPLYING CHI-SQAURE TEST BY COMPARING THE PERIOD OF
GENERAL INSURANCE COVER AND THE PREMIUM RANGE

Period of Premium range

insurance Very high High Reasonable Low Very Total
cover low
Annual policy 0 27 34 0 0 61
1-5 yr 0 10 25 0 0 35
5-10 yr 0 7 4 0 0 11
10-15 yr 0 7 6 0 0 13
>15 yr 0 0 0 0 0 0
Total 0 51 69 0 0 120

Ho: There is no significant difference between premium and period of general

insurance policy
H1: There is a significant difference between premium and period of general
insurance policy

Table of expected frequency:

Expected Value = row total * column total
Grand total
 0 25.925 35.075 0 0
0 14.875 20.125 0 0
0 4.675 6.325 0 0
0 5.525 7.475 0 0
0 0 0 0 0

Formulae:

χ² = ∑ [(Oi – Ei) 2] with n-1 degrees of

freedom i =1Ei

Oi Ei (Oi-Ei)2 (Oi-Ei)2/Ei
0 0 0 0
27 25.925 1.156 0.0446
34 35.075 1.156 .033
0 0 0 0
0 0 0 0
0 0 0 0
10 14.875 23.766 1.6
25 20.125 23.766 1.18
0 0 0 0
0 0 0 0
0 0 0 0
7 4.675 5.406 1.1564
4 6.325 5.406 .855
0 0 0 0
0 0 0 0
0 0 0 0
 7 5.525 2.176 .394
6 7.475 2.176 .291
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
Total 5.554

χ²cal = 5.554
χ²0.05 with (n-1) (n-1) = (5-1) (5-1) = 16
χ²0.05 with 16 d.f = 26.3
χ²cal < χ²0.05
Hence, we accept ho
Conclusion:
We conclude that there is no significant difference between premium and period of
general insurance policy.
 3.2.18 TABLE SHOWING THE SATISFACTORY LEVEL OF
RESPONDENTS TOWARDS THE POLICY TAKEN

[Link] Satisfactory level No. Of Respondents Percentage (%)

RSA Other cos. RSA Other cos.
1 Highly satisfactory 8 5 13.3 8.3
2 Satisfactory 47 53 78.3 88.3
3 Neither satisfactory nor 5 2 8.3 3.3
dissatisfactory
4 Dissatisfactory - - - -
5 Highly dissatisfactory - - - -
Total 60 60 100 100

Findings: The above table shows that among policy holders of MAX LIFE 13.3% of
them are highly satisfied with the policy taken, 78.3% of them are just satisfied and the
rest 8.3% of them are neither satisfied nor dissatisfied with the policy taken. Among
policy holders of other companies, 8.3% of them are highly satisfied, 88.3% of them are
highly satisfied and the rest 3.35% of them are neither satisfied nor dissatisfied with the
policy taken.

Inference: It is inferred that among the policy holders of Royal Sundarm, higher
percentage (78.3%) of them feel that they are satisfied and 13.3% of them are highly
satisfied with the policy taken. Among other policy holders, a higher percentage (88.3%)
of them also feels that they are satisfied and 8.3% of them feel that they are highly
satisfied with the policy taken.

3.2.18 CHART SHOWING THE SATISFACTORY LEVEL OF

RESPONDENTS TOWARDS THE POLICY TAKEN

100
88.3
90
78.3
80
70
60
50 RSA
40 Other Co.
30
no. of

20
10 13.3 8.3
0 8.3
3.3 00 00
dissatisfact
satisfactor

dissatisfac
dissatisfac
satisfac
highl

highly
neither

y nor
y
 APPLYING CHI-SQUARE TEST BY COMPARING SATISFACTORY LEVEL
TOWARDS GENERAL INSURANCE POLICY TAKEN AND THE YEARLY
PREMIUM PAID

Satisfactory level towards General insurance policy

Premium Highly Satisfactory Neither Dissatisfactory Highly Total
amount satisfactory satisfactory dissatisfactory
nor
dissatisfactory
Less than 3 38 2 0 0 43
Rs.5000
Rs.5000- 0 57 1 0 0 58
15000
Rs.15000- 7 3 2 0 0 12
25000
More than 3 2 2 0 0 7
Rs.25000
Total 13 100 7 0 0 120
Ho: There is no significant difference between yearly premium paid and satisfactory
level towards general insurance policy taken
H1: There is a significant difference between yearly premium paid and satisfactory
level towards general insurance policy taken

Table of expected frequency:

Expected Value = row total * column total
Grand total

4.6583 35.83 2.5083 0 0

6.283 48.3 3.383 0 0
1.3 10 .07 0 0
.7583 5.83 .4083 0 0

Formulae:

χ² = ∑ [(Oi – Ei) 2] with n-1 degrees of

freedom i =1 Ei

Oi Ei (Oi-Ei)2 (Oi-Ei)2/Ei
3 4.6583 2.75 0.5903
38 35.83 4.7089 0.1314
2 2.5083 0.2584 0.1030
0 0 0 0
0 0 0 0
0 6.283 39.48 6.283
57 48.3 75.69 1.57
1 3.383 5.68 1.68
0 0 0 0
 0 0 0 0
7 1.3 32.49 24.99
3 10 49 4.9
2 .07 3.725 53.214
0 0 0 0
0 0 0 0
3 .7583 5.025 6.63
2 5.83 14.67 2.5163
2 .4083 2.5335 6.205
0 0 0 0
0 0 0 0
Total 108.813

χ²cal = 108.813
χ²0.05 with (n-1) (n-1) = (5-1) (4-1) = 12
χ²0.05 with 12 d.f = 21.0
χ²cal > χ²0.05
Hence, we reject ho

Conclusion:
We conclude that there is a significant difference between yearly premium paid and
satisfactory level towards general insurance policy taken.
 3.2.19 TABLE SHOWING [Link] RESPONDENTS HAVING
INSURANCE AGENTS

[Link] Opinion No. Of Respondents Percentage (%)

RSA Other co. RSA Other co.
1 Yes 31 31 51.67 51.67
2 No 29 29 48.33 48.33
Total 60 60 100 100

Findings: The above table shows that 51.67% of respondents among both MAX LIFE
and other companies have insurance agents and the rest 48.33% of respondents among
both MAX LIFE and other companies do not have an insurance agent.

Inference: It is inferred that a higher percentage (51.67%) of respondents among both

MAX LIFE and other companies has insurance agents.
 3.2.19 CHART SHOWING [Link] RESPONDENTS HAVING
INSURANCE AGENTS

51.67
51.67
52

51

50
48.3348.33 RSA
49
Other companies
[Link]

48

47

46
yes no

INTERVAL ESTIMATION: RESPONDENTS HAVING INSURANCE AGENTS

Formula:

pq
p  Z/2
n

No. of respondents having insurance agents: 62

No. of respondents not having insurance agents:
58

n = sample size = 120

p= Number of yes = 62 = .5166

Sample size 120

q = 1-p = 1-.5166 = .4834

Z  / 2 = 1.96 at 95% confidence level

pq .5166 * .4834
Standard error = n = = 0.0456

120

Interval estimation= p Z / 2pq

n

= (0.5166  1.96(0.0456)
= 0.4272>p>0.606
= 42.72%, 60.6%

Conclusion
Hence we conclude that the percentage of respondents having insurance agents lies
between 42.72% to 60.6%

3.2.20 TABLE SHOWING RESPONDENT’S COMMENT ON THE

GUIDANCE RENDERED BY INSURANCE AGENTS

[Link] Comment No. Of Respondents Percentage (%)

RSA Other cos. RSA Other cos.
1 Excellent 8 2 25.8 6.5
2 Very good 20 16 64.5 51.6
 3 Moderate 3 13 9.7 41.9
4 Poor - - - -
5 Very poor - - - -
Total 31 31 100 100

Findings: The above table shows that 25.8% of respondents among MAX LIFE and
6.5% of respondents among other companies have indicated that the guidance rendered
by their insurance agent is excellent, 64.5% of respondents among MAX LIFE and 51.6%
of respondents of other companies have indicated that it is very good and the rest 9.7% of
respondents from MAX LIFE and 41.9% of respondents from other companies have
indicated that it is moderate.

Inference: It is inferred that a higher percentage of respondents from both MAX LIFE
(64.5%) and from other companies (51.6%) have indicated that the guidance rendered by
their insurance agent is very good.

3.2.20 CHART SHOWING RESPONDENT’S COMMENT ON THE

GUIDANCE RENDERED BY INSURANCE AGENTS
 70 64.5

60 51.6

50 41.9 Excellent Very good Moderate Poor

Very poor
40
25.8
30
[Link]

20
9.7 6.5
10 0 0 00
0
RSA OTHER CO.

3.2.21 TABLE SHOWING THE CLAIMS REJECTED BY THE

INSURANCE COMPANIES
[Link] Claims rejected by insurance No. Of Respondents Percentage (%)
companies RSA Other cos. RSA Other cos.
1 Yes 60 60 100 100
2 No - - -
Total 60 60 100 100

Findings: The above table shows that 100% of respondents, who are policy holders with
MAX LIFE and 100% respondents, who are policy holders with other companies have
stated that their claims were not rejected by the insurance companies.

Inference: It is inferred that all the respondents, who are policy holders with MAX LIFE
as well with other companies have indicated that their claims were not rejected by the
insurance companies.

3.2.21 CHART SHOWING THE CLAIMS REJECTED BY THE

INSURANCE COMPANIES

100 100
100
90
80
70
60
50
40 RSA
30 Other companies
[Link]

20 0
0
10
0
yesno

3.2.22 TABLE SHOWING FACTORS THAT INFLUENCES CUSTOMERS TO

CHOOSE A PARTICULAR COMPANY IN BUYING AN INSURANCE
POLICY
 Influencing factors Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8
Reputation 85 17 9 5 - 1 2 1
Excellent 16 68 12 14 5 4 1 -
service/Responsiveness
Easy accessibility - 3 2 8 17 44 46 -
Good schemes 3 7 19 30 41 17 3 -
Low premium rates 6 7 14 24 48 16 5 -
Heard of good experience 11 3 17 6 4 23 56 -
of others
Proper claim settlement 12 14 50 23 13 5 3 -
Others - - - - - - 7 113

APPLYING WEIGHTED AVERAGE METHOD

8 7 6 5 4 3 2 1
Influencing factors 1 2 3 4 5 6 7 8 W.A RANK
Reputation 85 17 9 5 - 1 2 1 24.61 1
Excellent 16 68 12 14 5 4 1 - 21.7 2
service/Responsiveness
Easy accessibility - 3 2 8 17 44 46 - 10.14 7
Good schemes 3 7 19 30 41 17 3 - 15.5 4
Low premium rates 6 7 14 24 48 16 5 - 15.306 5
Heard of good 11 3 17 6 4 23 56 - 12.17 6
experience of others
Proper claim 12 14 50 23 13 5 3 - 18.94 3
settlement
Others - - - - - - 7 113 3.53 8

Formulae:
Average score = [(R1*8 + R2*7 + R3*6 + R4*5 + R5*4 + R6*3 +R7*2 + R8*1)]
Total weights

Sample calculation:

Average score = [(85*8 + 17*7 + 9*6 +5*5 + 0*4 + 1*3 + 2*2 + 1*1)]
36
= 24.61

Findings: The above table clearly shows that while selecting a particular insurance
company to take a policy, majority of the respondents look out for reputation of the
company first, secondly they look out for excellent service/responsiveness of the
company, thirdly proper claim settlement of the company followed by good schemes, low
premium rates, others good experience, and easy accessibility.

Inference: It is inferred that majority of respondents would first look out for the
reputation of the company. Hence it is ranked first.

3.2.22 CHART SHOWING FACTORS THAT INFLUENCES CUSTOMERS TO

CHOOSE A PARTICULAR COMPANY IN BUYING AN INSURANCE
POLICY
 30
25 24.61
20 21.7
15 18.94
10 15.5 15.306
5 12.17
0 10.14
[Link]

3.53

service/Responsiven
Reputat

Oth
Low premium
Excellent

Heard of
Good

Proper claim
Easy

good
3.2.23 TABLE SHOWING RESPONDENT’S SATISFACTORY LEVEL
TOWARDS VARIOUS FEATURES OF GENERAL INSURANCE
POLICY
TAKEN

[Link] Attributes of Highly Satisfied Neither Dissatisfied Highly Total

general satisfied satisfied nor dissatisfied
insurance cover dissatisfied
1 Low premium 9 92 9 10 - 120
2 Claim settlement 26 86 7 1 - 120
3 Larger risk 21 83 13 3 - 120
coverage
4 Money back 7 41 62 10 120
guarantee
5 Easy access to 21 39 58 2 - 120
agents
Total 84 341 149 26 0 600
 3.2.23 CHART SHOWING RESPONDENT’S SATISFACTORY LEVEL
TOWARDS VARIOUS FEATURES OF GENERAL INSURANCE
POLICY
TAKEN
 100
92
90
86
80 83
70 Highly satisfied
60
50
40 62 Satisfied
58
30
20 Neither satisfied nor dissatisfied
10 41 Dissatisfied
0 39
no. of

26
21 21 Highly dissatisfied
13
9 910 10
7 7
0 30 0 20
10
Larger

access
Money
back
risk
Low

Claim

Easy

APPLYING KRUSKAL – WALLIS OR H – TEST TO THE TABLE 3.2.23

Ho: Respondent’s satisfaction level towards all the attributes of general insurance cover
 taken is the same
H1: Respondent’s satisfaction level towards all the attributes of general insurance cover
taken is not the same.

Values Ranks Ranks of Ranks of Ranks of Ranks of Ranks of

low claim larger risk money back easy access
premium settlement coverage guarantee to agents
(R1) (R2) (R3) (R4) (R5)
1 1 6.5 13 11.5 5.5 11.5
2 2 20 19 18 15 14
3 3 6.5 4.5 10 17 16
7 4.5 8.5 1 3 8.5 2
7 4.5
9 6.5
9 6.5
10 8.5
10 8.5
13 10
21 11.5
21 11.5
26 13
39 14
41 15
58 16
62 17
83 18
86 19
92 20
Total 41.5 37.5 42.5 46 43.5
R1 = 41.5 ; R2 = 37.5 ; R3 = 42.5 ; R4 = 46 ; R5 = 43.5
Applying the formula for H:
H = [12 / (N (N+1)) * (R12/ n1 + R 22 / n2 + R32 / n3 + R 2 / n4 + R52 / n5)] – 3 (n + 1)
H = [12 / (20 (20+1)) * (41.52/4 + 37.52/4 + 42.52/4 + 462/4 + 43.52/4)] – 3 (20+1)
= [(12/420) * (2235.75) – 63
H = .8786

At 5% level of significance with (5-1) d.f = 9.49

χ²0.05 = 9.49
Since, 0.8786 < 9.49
We accept Ho.

Conclusion
Hence, we conclude that the respondent’s satisfaction level towards all the attributes of
general insurance cover taken is the same.

3.2.24 TABLE SHOWING THE SOURCES MOST PREFERRED BY

RESPONDENTS TO KNOW ABOUT INSURANCE COMPANY AND
ITS
PRODUCTS
 [Link] Preferred source of information No. Of Respondents Percentage (%)
1 Ads (print, radio & TV) 31 25.83
2 Insurance agents 44 36.67
3 Friends & Relatives 42 35
4 Others 3 2.5
Total 120 100

Findings: The above table shows that 25.83% of respondents would prefer Ads, 36.67%
of them prefer insurance agents, 35% of them prefer Friends & relatives, and the rest
2.5% of them would prefer other sources like company websites, SMS, etc, in order to
know about an insurance company and its products.

Inference: It is inferred that a higher percentage of respondents (36.67%) have stated

insurance agents as the most preferred source.

3.2.24 CHART SHOWING THE SOURCES MOST PREFERRED BY

RESPONDENTS TO KNOW ABOUT INSURANCE COMPANY AND
ITS
PRODUCTS

40
36.67
35
35

30 25.83
25

20
[Link]

15

10
2.5
50
Ads (print, radio & TV)
Insurance agents Friends & Relatives Others

3.2.25 TABLE SHOWING GENERAL INSURANCE COVER THAT IS

MOST FAVORED BY RESPONDENTS

Most favored Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8
insurance cover
Auto/car insurance 85 15 4 16 - - - -
Health insurance 34 64 9 13 - - - -
Hospital cash 2 29 65 17 4 2 1 -
insurance
Personal accident - 7 38 65 4 6 - -
insurance
Travel insurance 1 - - 5 22 53 37 2
Householder’s - 4 - 3 77 35 1 -
insurance
Shopkeeper’s - - 5 - 11 24 72 8
insurance
Others - - - - 16 - 7 97
 APPLYING WEIGHTED AVERAGE METHOD TO THE TABLE 3.2.25

8 7 6 5 4 3 2 1
Most favored 1 2 3 4 5 6 7 8 W.A RANK
insurance cover
Auto/car insurance 85 15 4 16 - - - - 24.7 1
Health insurance 34 64 9 13 - - - - 23.306 2
Hospital cash 2 29 65 17 4 2 1 - 19.94 3
insurance
Personal accident - 7 38 65 4 6 - - 17.67 4
insurance
Travel insurance 1 - - 5 22 53 37 2 9.9 6
Householder’s - 4 - 3 77 35 1 - 12.72 5
insurance
Shopkeeper’s - - 5 - 11 24 72 7 8.25 7
insurance
Others - - - - 16 - 7 92 4.72 8

Formulae:

Average score = [(R1*8 + R2*7 + R3*6 + R4*5 + R5*4 + R6*3 +R7*2 + R8*1)]
Total weights

Sample calculation:
Average score = [(85*8 + 15*7 + 4*6 + 16*5 + 0*4 + 0*3 + 0*2 + 0*1)]
36
= 24.7

Findings: The above table clearly shows that auto/car insurance is been ranked I by
majority of respondents, health insurance ranked II, hospital cash insurance ranked III
followed by personal accident insurance, householder’s insurance, travel insurance,
shopkeeper’s insurance and other insurance (fire insurance, marine, rural insurance, etc)
which are ranked as IV, V, VI, VII and VIII respectively.

Inference: It is inferred that auto/car insurance is the most favored insurance cover
among majority of respondents.

3.2.25 CHART SHOWING GENERAL INSURANCE COVER THAT IS MOST

FAVORED BY RESPONDENTS
 30
24.7
25 23.306
19.94
20 17.67

15 12.72
9.9
[Link]

10 8.25
4.72
5

0
Healt

accide

Household
Trav

Shopkeep

Oth
Perso
Auto/

Hospital
car

nal
cash

er’s
el

er’s
h

3.3 FINDINGS

 It is found that there is a higher percentage (i.e. 35.83%) of respondents in

the age group of less than 25 years and comparatively very lower percentage
(i.e. 10%) of respondent belongs to the age group of 45-55 years.

 There is a higher percentage (i.e. 67.5%) of male respondents among the

respondents who has taken general insurance cover.
 Majority of the respondents (i.e.30.83%), who has taken general insurance
cover are private sector employees.

 It is found that a higher percentage (75.83%) of respondents have 2-4

members in their family.

 It is inferred that there is a higher percentage (42.5%) of respondents in the

income category of 2-5 lakhs and comparatively a very lower percentage
(7.5%) of respondents in the income category of 10-20 lakhs and above 20
lakhs

 It is implied that all the respondents surveyed have stated that it is necessary
to have a general insurance cover.

 It is evident from the study conducted that majority (51.67%) of the

respondents holds at least 1 general insurance policy.

 The study discloses that 55% of respondents hold general insurance policy
with the same company and the rest 45% of respondents hold it in various
other companies.

 From the analysis made it is inferred that the percentage of respondents who
have taken policies from the same company lies between 46.1% and 63.9%.

 It is inferred that a higher percentage of respondents (79.63%) are policy

holders in at least 2 companies, while18.52% of respondents are policy
holders in 2-5 companies and the rest 1.85% of respondents are policy
holders in more than 5 companies.
 It is inferred that higher reputation amidst customers is enjoyed by MAX
LIFE with 39.17% of respondents stating it.

 Majority of respondents (i.e., 75%), who are policy holders with MAX LIFE
have stated that they are aware of various insurance schemes offered by the
company.

 It is found that the percentage of respondents aware of various insurance

schemes offered by MAX LIFE lies between 64.02% and 85.98%

 Majority of respondents (i.e., 80%), who are policy holders with MAX LIFE
have agreed that MAX LIFE is well known for offering customer centric
products.

 It is inferred that a higher percentage (50%) of respondents have indicated

that the service rendered by MAX LIFE as very good, while 38.33% of
respondents have indicated the service of MAX LIFE as excellent, and the
rest 11.67% of them have indicated it as moderate.

 The study implies that a higher percentage (41.67%) of respondents has

indicated friends and relatives, while 35% of respondents have indicated
advertisement and the rest 23.33% of them have stated insurance agents as
means by which they came to know about MAX LIFE

 Among the respondents, who has taken general insurance cover it is inferred
that a higher percentage (50.83%) of respondents holds annual policy.
 Among the respondents, who are holding general insurance cover it is found
that a higher percentage of respondents (48.3%) have been paying yearly
insurance premium between Rs.5000-15000

 With the application of Karl Pearson’s Correlation Coefficient it is found

that the variables annual income and premium amount paid are positively
correlated.

 Among the policy holders of MAX LIFE , 65% of them feel that the
premium being paid is high and among the policy holders of other
companies only 20% have stated it as high.

 According to the chi – square test conducted, it is found that there is no

significant difference between premium and period of general insurance
policy.

 It is inferred from the study that among the policy holders of Royal
Sundarm, higher percentage (78.3%) of them feel that they are satisfied and
13.3% of them are highly satisfied with the policy taken. Among other
policy holders, a higher percentage (88.3%) of them also feels that they are
satisfied and 8.3% of them feel that they are highly satisfied with the policy
taken.

 It is found that there is a significant difference between yearly premium paid

and satisfactory level towards general insurance policy taken, as per the chi-
square test conducted.

 The study conducted reveals that a higher percentage (51.67%) of policy

holders among both MAX LIFE and other companies has insurance agents.
 It is found that the percentage of respondents having insurance agents lies
between 42.72% and 60.6%, according to the analysis conducted

 It is found that a higher percentage of respondents from both MAX LIFE

(64.5%) and from other companies (51.6%) have indicated that the guidance
rendered by their insurance agent is very good.

 It is inferred that all the respondents, who are policy holders with MAX
LIFE as well with other companies have indicated that their claims were not
rejected by the insurance companies.

 It is found that while selecting a particular insurance company to take a

policy, majority of the respondents look out for reputation of the company
first, secondly they look out for excellent service/responsiveness of the
company, thirdly proper claim settlement of the company followed by good
schemes, low premium rates, others good experience, and easy accessibility.

 According to the result of the H-test, it is found that the respondent’s

satisfaction level towards all the attributes of general insurance cover taken
is the same.

 Majority of respondents (36.67%) have stated insurance agents as the most

preferred source to know about an insurance company and its products.

 It is found that auto/car insurance is been ranked I by majority of

respondents, health insurance ranked II, hospital cash insurance ranked III
followed by personal accident insurance, householder’s insurance, travel
insurance, shopkeeper’s insurance and other insurance covers (fire
insurance, marine, rural insurance, etc) which are ranked as IV, V, VI, VII
and VIII respectively.
 3.4 SUGGESTIONS

 The present scenario demands almost all the customers to have a general
insurance cover in order to protect from future uncertainty. The company
always has an opportunity to grow and expand its operations in the non-life
insurance segment. Hence, the company can seize this opportunity and pay
attention to introduce more insurance covers to cater to the needs of various
classes of people.

 Majority of the respondents, who are policy holders with MAX LIFE have felt
that the premium being paid is comparatively higher with the premium rates
of other insurance companies. Hence, amendments can be made in this regard
by offering insurance cover at reasonable premium rates to the customers.

 The promptness of claim settlement procedure can be maintained as it is one

of the important aspects which would enhance the reputation of the company,
as well as build trust in the minds of the customers. Also, it helps to retain
existing customers and attract new customers.

 The company has to focus more on the auto/car insurance segment and health
insurance segment. Majority of the respondents have preference towards
auto/car insurance as it is a must to have insurance for their vehicles by law.
Therefore, the company has got enough opportunities to earn huge profits
from both these segments.

 The company can create more awareness about its products among potential
customers by means of advertisements and efficient insurance agents, which
in turn will help in increasing its customer base.
 3.5 CONCLUSIONS

The study was conducted to compare the performance of MAX LIFE with its
industrial competitors. The study has been able to accomplish its objectives, by
thoroughly analyzing and identifying the competitive position of MAX LIFE ,
strengths and weaknesses of various insurance covers among the clients of various
insurance companies, customer’s awareness and perception about the company
and its products. The company may highly be benefited by the outcome of this
study.

The outcome of the study has proved that the performance of the company is
outstanding in comparison with other competitors in the non-life insurance
segment and that the company has a higher reputation among customers.

It is concluded that the company could initiate various steps based on the
recommendations given in this report. The company by adopting some of the
recommendations, if not all, can further improve its performance and occupy a
leading position among other competitors in the non-life insurance market in
future years to come.