INDEX

Sr. No. Particulars Page No.

1. Chapter 1-Introduction
1-9

10-15
Chapter 2- Company profile
2.

Chapter 3- Research study 16-22

Relevance of study
3. Need of study
Objective of study
Hypothesis
Limitation of the study
Research Design

4. 23-25
Chapter 4- Research and methodology

5. Chapter 5- Data analysis and interpretation 26-37

6. Chapter 6- Hypothesis testing 38-39

7. Chapter 7- Finding 40-41

8. Chapter 8- Conclusions 42-43

Bibliography 44-45
9.

Appendices 46-49
10. Questionnaire
 Chapter - 1

INTRODUCTION

1
INTRODUCTION

inties can strike us

down. Everything from education, parenting and family budgeting to the uncertain economic

landscape - are complex enough on their own. Planning efficiently for uncertainties is most crucial

decision to be taken by modern-day man.

When you buy life insurance, you enter a contract with an insurance company that promises to

- and not for our families, either.

The major benefit of insurance policy is that it will provide you risk coverage.

The insurance provides safety and security against the loss on a particular event. The security wish

is the prime motivating factor. The security banishes fear and uncertainty, fire, windstorm, auto-

mobile accident, damage and death are almost beyond the control of human agency and in

occurrence of any of these events may frustrate or weaken the human mind. By means of life

attainment may be eliminated.

The elements of investment i.e., regular saving, capital formation, and return of the capital along

with certain additional return are perfectly observed, in life insurance. A 2 individual from his own

capacity cannot invest regularly with enough of security and profitability. The life insurance fulfils

all these requirements with a lower cost. Insurance is the equitable transfer of the risk of a loss,

from one entity to another in exchange for payment.

2
It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain

loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or

policyholder, is the person or entity buying the insurance policy. The amount of money to be charged

for a certain amount of insurance coverage is called the premium. Insurance is a term in law and

economics. Life insurance is a bond that offers protection to the human by auguring the nominees

would receive a fixed sum of money if the insured person dies. The money received in the form of

life insurance is meant to be seen as an income substitute for the beneficiaries of the life insured if

he or she dies unexpectedly. There are various kinds of life insurance policies available and each

caters toa particular section of society a young working professional, a retired person, children,

etc. Purchasing insurance and role of perception: Purchasing insurance is unlike any other consumer

shopping experience. First, insurance is completely intangible.

Second, most products or services are purchased because consumers enjoy them, whereas

necessarily purchase an insurance policy willingly, but because legally required. This

unique combination of characteristics can make money spent on insurance feel like a

waste if nothing goes seriously wrong. Or it can lead to consumers not purchasing enough

insurance. This has far-

already problematic perception of risk.

It is an imaginary erect that represents an individual's like or dislike for an item. Attitudes

are positive, negative or neutral views of an "attitude object": i.e., a person, behavior or

event. Customers are information savvy. Overall, there have been some surprising

changes in customer attitudes particularly with regards to advantages and disadvantages

of purchase of life insurance. To differentiate them and attract those customers who do

not feel bound by ties of loyalty, Insurance providers would have to offer keener pricing,

better products and enhanced service - in short, more value for money.

A strong call for 4 simpler quicker application processes for protection remains one of

the main messages. The features of policy that attract policyholders can be: Company

3
 reputation, Money back guarantee, Risk coverage, Low premium, and Easy access to

agents. Goodwill of the company is the most influencing factor while policy buying

involvement are

limited. The intention to is low. Customer satisfaction, loyalty, advocacy and

intention to purchase are generally lower for insurance than other services.

4
INTRODUCTION OF INSURANCE
Insurance is a cooperative device to spread the loss caused by a particular risk over a number of

persons who are expressed to it and who agree to ensure themselves against that risk. Insurance

is a legal agreement between two parties - the insurer and the insured , also known as insurance

coverage or insurance policy. It is also a social device that accumulates funds to meet the

uncertain losses arising through a certain risk to a person insured against the risk. The process

of insurance has been evolved to safeguard the interests of people from uncertainty by providing

certainty of payment at a given contingency. The insurance principle comes to be more and more

used and useful in modern affairs. Not only does it serve the ends of individuals, or of special

groups of individuals, it tends to pervade andto transform modern social order, too. The origin of

insurance is lost in antiquity.

The earliest traces of insurances in the ancient world are found in the form of marine trade loans

arrangements embodying the idea of insurance were made in Babylonia and India at quite an

early period. After marine insurance, fire insurance developed in present form. It had been

originated in Germany in the beginning of the sixteenth century. The fire insurance got

momentum in England after the great fire in 1666 when the fire losses were tremendous. Next,

Life insurance made its first appearance in England in sixteenth century, the first recorded

evidence in England being the policy on life of Williams Gibbons in 1653. Other miscellaneous

Insurance took the present shape at the later part of nineteenth century with the industrial

revolution in England.

Accident insurance, fidelity insurance, liability insurance and theft insurance were the

important form of insurance at that time. Now, general insurance is increasing with the

advancement of [Link] insurance has become a part of human life. It is not restricted to

life, marine or fire only, but has spread over to almost every sphere human activity.

5
For example, a singer can insure his or her throat, a dancer her legs and an actress her nails etc.

So the scope of insurance is unlimited. The significance of the insurance is not only limited to

an individual or to a family alone but it has spread over the entire nervous system of a business

or say the country as a whole.

6
What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his

nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

» The date of maturity, or

» Specified dates at periodic intervals, or

» Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the

Corporation by the policyholder. Life insurance is universally acknowledged to be an institution,

which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the

family in the unfortunate event of death of the bread winner.

by death. Life insurance, in short, is concerned with two hazards that stand across

the life-path of every person:

1. That of dying prematurely leaving a dependent family to fend for itself.

2. That of living till old age without visible means of support.

7
Life Insurance Vs. Other Savings

Contract Of Insurance:
A contract of insurance is a contract of utmost good faith technically known as uberrima fides.

The doctrine of disclosing all material facts is embodied in this important principle, which

applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions in the proposal

form are correctly answered. Any misrepresentation, non-disclosure or fraud in any

document leading to the acceptance of the risk would render the insurance contract null and

void.

Protection:
Savings through life insurance guarantee full protection against risk of death of the saver.

Also, in case of demise, life insurance assures payment of the entire amount assured (with

bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with

interest) is payable.

Aid To Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments can be made

effortlessly because of the 'easy installment' facility built into the scheme. (Premium

payment for insurance is either monthly, quarterly, half yearly or yearly).

For example: The Salary Saving Scheme popularly known as SSS, provides a convenient

method of paying premium each month by deduction from one's salary.

In this case the employer directly pays the deducted premium to LIC. The Salary Saving

Scheme is ideal for any institution or establishment subject to specified terms and

conditions.

8
 Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired

loan value. Besides, a life insurance policy is also generally accepted as security, even for a

commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is

available for amounts paid by way of premium for life insurance subject to income tax rates in

force.

Assesses can also avail of provisions in the law for tax relief. In such cases the assured in

effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be

effectively used to meet certain monetary needs that may arise from time-to-time.

Children's education, start-in-life or marriage provision or even periodical needs for cash

overa stretch of time can be less stressful with the help of these policies.

Alternatively, policy money can be made available at the time of one's retirement from service

and used for any specific purpose, such as, purchase of a house or for other investments. Also,

loans are granted to policyholders for house building or for purchase of flats (subject to certain

conditions).

9
 Chapter - 2

COMPANY PROFILE

10
 COMPANY PROFILE

Life Insurance Corporation of India knows as LIC of India is one of the most trusted life

insurance companies in India. Life Insurance Corporation of India (LIC) is an Indian public

sector life insurance company headquartered in Mumbai. It is India's largest insurance company

as well as the largest institutional investor with total assets under management

trillion (US$510 billion) as of May 2022.[3] It is under the ownershipof Government of India

and administrative control of the Ministry of Finance. LIC is an Indianstate-owned investment

corporation and insurance group owned by the Government of India. The Life Insurance

Corporation of India was established on 1 September 1956, when the Parliament of India passed

the Life Insurance of India Act, nationalizing the insurance industry in India. Over 245

insurance companies and provident societies were merged [Link] of India gives you

plenty of options when it comes to insurance which help in fulfilling the varied insurance needs

of individuals. The company offers a wide variety of life insurancesolutions in India. LIC has

various combinations of insurance plans such as Money Back Plan,Children Plan, Endowment

Plan, Whole Life Plan, Term Plan, Pension Plans, Unit Plans at competitive rates.

11
 Today LIC if India has 25 metro-area service hubs and 54 customer zones located in different

cities and towns of India. LIC functions with 8 zonal offices, 2048 fully computerized branch

offices, around 113 divisional offices, 1408 satellite offices, 2,048 branches and the Central

Office. Life Insurance Corporation of India also has a network of 350 Corporate Agents,

1,55,000 individual agents, 120 Brokers,115 Referral Agents, and 45 Banks for soliciting life

insurance business from the public. Now LIC also has the 1900 branches of Industrial

Development Bank of India (IDBI) bank at its disposal. LIC can carry out life insurance

business through these branches of the bank. Among the various LIC plans, there are some plans

which are the best plan which help in fulfilling the varied insurance needs.

12
 Holdings

LIC invests in sectors such as banks, cement, chemicals and fertilizers, electricity and

transmission, electrical and electronics, engineering, construction and infrastructure, fast-

moving consumer goods, finance and investments, healthcare, hotels, information technology,

metals and mining, motor vehicles, and ancillaries, oil and natural resources, retail, textiles,

transportation, and logistics. Among the Nifty companies, LIC's holding in terms of value in

crores), ONGC crores), SBI crores), L&T crores), and ICICI Bank

around 7000 crores during the financial year. LIC also holds a 51% stake in IDBI Bank, making

it the only insurer in India to own a bank, since regulations prohibit insurers from holding more

than 15% stake in any company, LIC will have to decide a timeline for paring its stake in IDBI

bank; also LIC may have to pare its stake in LIC Housing Finance Ltd as a company cannot be

the promoter of two finance companies carrying out same housing finance business in India.

13
Evolution of the Life Insurance Sector in India
The insurance sector in India was under public ownership until late 1990s. With the

liberalization of the insurance sector, the Insurance Regulatory and Development Authority Act

(IRDA) was passed in theyear 1999 to regulate and promote the insurance industry in India.

Insurance Regulatory and Development Authority of India (IRDAI) was set up as a statutory

body to regulate Indian insurance and re- insurance market and to protect the interest of its

stakeholders. The Indian insurance sector was further liberalized in the year 2015 with

Insurance Law (Amendment) Bill 2015 and Foreign Direct Investment (FDI) limit was

increased from 26% to 49%. Today, the life insurance market in India is one of largest in the 5

world both in terms of total premium expenditure as well as number of policies sold. In

insurance business India is ranked 10th among 88 countries5. The Indian life insurance market

has been a monopoly with the Life Insurance Corporation of India (LIC) being the only provider

of insurance till the year 2000. After 2000, the market was liberalized and private player were

allowed to enter the market. At present there are 24 life insurance companies6 registered in

India. Among these, Life Insurance Corporation of India (LIC) is the only public- sector

company. Even though there are larger number of private players in the market, Life Insurance

Corporation of India (LIC)is the single largest insurance provider with about 71.8% of the

market share. LIC operates through a large network of sales agents. By the end of the year

2016-17 LIC had 1.13 million agents, the corresponding number for private sector insurerswas

0.96 million. LIC has a unique position in Indian market as it is considered as the most

trustworthy life insurance provider in the country. As per the IRDA, the insurance market in

India was about Rs. 328,000 crores (or about $48 billion) in terms of the premiums collected.

ICICI Prudential, SBI Life Insurance and HDFC Standard Life are the largest private sector

players catering to about 15% of the market together.

14
 OBJECTIVES OF LIC
.

Maximize mobilization of people's savings by making insurance linked savings

adequately attractive .

Conduct business with utmost economy and with the full realization that the
moneysbelong to the policyholders.

Act as trustees of the insured public in their individual and collective capacity.

Meet the various life insurance needs of the community that would arise in the changing
social and economic environment.

Involve all people working in LICI to the best of their capabilities in furthering the
interests of the insured public by providing efficient services with courtesy.

15
 Chapter - 3

RESEARCH STUDY

16
 RELEVANCE OF STUDY

To understand the perception levels of the investors towards the LIC insurance policies.

To observe the impact of various perception factors on the purchasing behaviors of

the investors

17
 Need of the Study

The insurance industry is one of the fastest growing industries in the country and offers

abundance growth opportunity to the life insurers. When compared with the developed foreign

countries, the Indian life insurance industry has achieved only a little because of the lack of

insurance awareness, ineffective marketing strategies, poor affordability and low investment in

life insurance products. The study is basically intended to know the perception of the investors

towards life insurance policies of LIC.

18
 Objective of the Study:

To study the awareness of life insurance policy

To know the satisfaction level of policy holder.

To identify the expectations of policy holders towards LIC.

To know the opinion regarding benefits provided by life insurance.

To compare LIC with competitors.

19
 HYPOTHESIS

Age Of Income Has No Significant impact On The Customer Life Insurance Investment Decision .

Occupation & Gender Are independent Of the Customer Life insurance Investment Decision

20
 LIMITATIONS OF THE STUDY

LIMITATIONS: -

The sample size chosen will be 26 and that may not representthe true picture of the
consumer perception about the Life Insurance sector.

The research will be restricted to the city of Nagpur only.

Limited time period.

Only limited number of questions were asked.

21
 Research Design

The present study is based on secondary data which is collected using website.

Primary data:

The data is collected by the survey method. The survey has been done through Questionnaire by Google form.

Secondary data:

The sources of secondary data are articles, research paper and online sites, websites etc .

22
 Chapter - 4

RESEARCH AND METHODOLOGY

23
The study has been conducted using both primary as well as secondary data. The primary

data was obtained from the analysis done through direct questionnaire provided to the

respondents. Information regarding the project was obtained from homemaker,

unemployed youths, job persons. The information was obtained through the

questionnaire. The project undertaken was Descriptive in nature as it was tryingto find

out the perception and satisfaction level.

Questionnaires were distributed among 26 respondents in Nagpur. The responses

received, formed the basis of primary data required for the study. Data collected was

completed, classified and tabulated for analysis.

Primary data:
Primary Data Collection: - Primary information is very frequently called as the first-hand

data collected by the one that needs to use it for the aim of his/her study. This information

is incredibly specific and is collected by analysis, a search, an inquiry, a quest, a pursuit,

a probe, an exploration, a groundwork, a hunt, a research, a look} er specifically for a

research study. Primary data/information is original in nature and directly associated with

the problem andit is current information/data. Primary data are the info that the research

worker has collected through numerous strategies like Interviews, surveys, questionnaires

etc.

The data is collected by the survey method. The survey has been done through

questionnaire by Google form.

24
 Secondary data:

Secondary Data Collection: -Secondary information is collected by a researcher not

associated with the analysis/research study, however, this is collected for some different

purpose and at the completely different time in the past. If the individual uses this data,

then it becomes secondary info for present users. This info may be accessible in written,

typed or in electronic forms. Secondary info is also used to add original insight into the

study problem. Secondary data is classed in terms of its supply either internal or external.

Internal, or in-house, is secondary information obtained within the organization where the

study is being carried out. External secondary info is obtained from outside sources. There

are various advantages and disadvantages of using secondary data.

Sample size:

The sample size for this research is 26people.

Sampling method:

The method is simple random sampling by considering the responsesfrom Google form at

Nagpur city only.

Statistical tools used for analysis:

Graphical method and percentage method have been used for analysis data

Location of survey:

Nagpur City

25
 Chapter - 5

DATA ANALYSIS AND INTERPRETATION

26
DATA ANALYSIS AND INTERPRETATION

Q 1. What is your age?

Particular Responses percentage

15-30 17 65.4%
30-40 5 19.2%
40-50 3 11.5%
Above 50 yrs 1 3.9%
TOTAL 26 100%

[Link] is your age?

26 responses

3.9%

11.5%

15-30
19.2%
30-40
40-50
Above 50 yrs
65.4%

Interpretation: -

The above Pie Chart classified the large number of respondents come from the age group

of below 30 with 65.4%. we observe that there is very a smaller number of customers is

come from the age group 40-50with only 3.9%

27
Q 2. Profession

Particular Responses Percentage

Student 15 57.7%
Working 10 38.5%
Homed maker 1 3.8%
Other 0 0%
TOTAL 26 100%

Q2. Profession
26 responses

3.8%

Student

38.5% Working

57.7% Homedmaker
Other

Interpretation: -

From the above pie chart, we find that majority of respondents of Life Insurance policies are

students and salaried persons with 57.7% and 38.5% respectively. While 3.8% respondents are

homemaker.

28
 Q 3. Do you have a life insurance policy?

Particular Responses Percentage

Yes 16 60%
No 10 40%
TOTAL 26 100%

Q3. Do you have a life insurance policy?

26 responses

Yes
40%
No

60%

Interpretation: -

The above pie chart depicts that majority of the respondents have life insurance policy

with 60% while 40% do not have life insurance police.

29
Q4. Would you prefer LIC?

Particular Responses Percentage

Yes 24 91.7%
No 2 8.3%
TOTAL 26 100%

Q4. Would you prefer LIC?

26 responses

8.3%

Yes
No

91.7%

Interpretation: -

The above chart clearly shows that 91.7% respondents will prefer LIC and the rest 8.3%

will not prefer LIC.

30
 Q5. What type of insurance do you have?

Particular Responses Percentage

Private 17 65.2%
Public 9 34.8%
TOTAL 26 100%

Q5. What type of insurance do you have?

26 responses

34.8%
Private
Public
65.2%

Interpretation: -

The data shows that 65.2% of respondents have public insurance andthe rest have private

insurance with 34.8%.

31
Q6. Who influenced you to get an insurance policy?

Particular Responses Percentage

The media 2 8.3%
Insurance agents 8 29.2%
Government 2 8.4%
Friends, family and colleagues 12 45.8%
Other 2 8.3%
TOTAL 26 100%

Q6. Who influenced you to get an insurance policy?

26 responses

8.4%
29.2% The media
Insurance agents
Government
8.3% Friends, family and colleagues
45.8%
8.3% Other

Interpretation: -

8.3% respondents are influenced by Media.

29.2 respondents are influenced by Insurance agents.
8.4% respondents are influenced by Government.
45.8% respondents are influenced by Friends, family andcolleagues.
8.3% respondents are influenced by other sources.

32
Q7. Satisfaction of respondents to policy?

Particular Responses Percentage

Satisfied 20 75%
Not Satisfied 6 25%
TOTAL 26 100%

Q7. Satisfaction of respondents to policy?

26 responses

25%

Satisfied
Not Satisfied

75%

Interpretation: -
Based on our analysis we found that majority of respondents have satisfied with policies

with 75%, and 25% are not satisfied with the policy.

33
Q8. Satisfaction of respondent with respect to service agents ?

Particular Responses Percentage

Satisfied 18 70.8%
Not Satisfied 8 29.2%
TOTAL 26 100%

Q8. Satisfaction of respondent with respect to service agents?

26 responses

29%

Satisfied
Not Satisfied
71%

Interpretation: -
Above research shows that from this all-factors majority 70.8% ofrespondents agree that

they are satisfied with the service agents, 29.2% agree that they are not satisfied with the

service agents.

34
Q9. Opinion on life insurance company.

Particular Responses Percentage

Rigid plan 3 12%
Non-user friendly 3 12%
Unsatisfactory services 4 16%
Non-aggressive 4 16%
Satisfactory 11 44%
TOTAL 26 100%

Q9. Opinion on life insurance company.

26 responses

12%
Rigid plan
12% Non-user friendly
44%
Unsatisfactory services
Non-aggressive
16%
Satisfactory
16%

Interpretation: -

12% opinion on life insurance company are rigidplans.

12% opinion on life insurance company are non-user friendly.

16% opinion on life insurance company areunsatisfactory.

16% opinion on life insurance company are non-aggressive.

44% opinion on life insurance company aresatisfactory.

35
Q10. Do you examine about the plan before going to invest in insurance

Particular Responses Percentage

Yes 21 80%
No 0 0%
Maybe 5 20%
TOTAL 26 100%

Q10. Do you examine about the plan before going to invest in

insurance?
26 responses

20%

Yes
No
Maybe
80%

Interpretation: -

80% of respondents examine about plans before going to invest ininsurance and

20% chooses may be they examine about the plans before investing.

36
Q11. Which life insurance plan are best for the clients?

Particular Responses Percentage

Term life insurance policy 10 37.4%
Whole life insurance policy 8 29.6%
Endowment life insurance policy 5 19.9%
Retirement plan 3 13.1%
TOTAL 26 100%

[Link] life insurance plan are best for the clients ?

26 responses

19.9%
13.1%

Term life insurance policy

29.6% Whole life insurance policy

Endowment life insurance

37.4%
policy
Retirement plan

Interpretation:-

19.9% opinion on life insurance policy are Term life insurance policy

13.1% opinion on life insurance policy are Retirement plan.

29.6% opinion on life insurance policy are Whole life insurance policy.

37.4% resp opinion on life insurance policy are Endowment life insurance policy.

37
 Chapter - 6

HYPOTHESIS TESTING

38
Hypothesis testing :

Age Of Income Has No Significant impact On The Customer Life Insurance Investment Decision .

Occupation & Gender Are independent Of the Customer Life insurance Investment Decision

39
 Chapter - 7

FINDINGS

40
.

FINDINGS

Term life insurance plan are best for the client.

Most of the customer have private insurance.

Most of the people are influence by their Friend ,Family and Colleagues to get an insurance.

75% of customer are satisfied with their insurance policy.

80% of customer examine about the plans before going to invest in insurance.

41
 Chapter - 8

CONCLUSIONS

42
 CONCLUSION

At the outset, the Life insurance offers to the investing public, a wide opportunity to invest.

-free

investment. Insurance is a process in which a large number of persons collect their small

contribution, called the premium, in a pool and out of their losses are paid to the suffering

person. Even in a competitive scenario, LIC has registered the highest growth rate and

creating history in the insurance sector. LIC strength quick top change with times, responding

to changing needs and aspiration of the people. Evidently, LIC today stands as a global stage

ever adapting to world-class standards of service in terms of tailor-made schemes,

computerization and strategic planning. Thus, the study investigates the preferences,

and the factors that determines for investing in LIC. Based on the analysis, the study concludes

that the success of every investment decision has become increasingly important in recent

times. Making sound investment decision require both knowledge andskill apart from other

factors. Skill is needed to evaluate risk and return associated with an investment with minimum

risk involved if he carefully analysis the information published. Knowledge is required

regarding the complex investment alternatives available, in the economic environment.

From the present study it can be concluded that there exists very low level of awareness,

understanding of life insurance products and general operation of life insurance companies.

43
 BIBLIOGRAPHY

44
Weblinks:-

[Link]

[Link]

Website:-

[Link]

[Link]

[Link]

[Link]

45
 Appendices

46
 QUESTIONNAIRE

NAME: -

Q1 What is your age?

15-30

30-40

40-50

Above 50 yrs.

Q2 Profession

Student

Working

Homemaker

Other

Q3 Do you have a life insurance policy?

Yes

No

Q4 Would you prefer LIC?

Yes

No

47
 Q5 What type of insurance do you have?

Private

Public

Q6 Who influenced you to get an insurance policy?

The media

Insurance agents

Government

Friends, family and colleagues

Other

Q7 Satisfaction of respondents to policy?

Satisfied

Not Satisfied

Q8 Satisfaction of respondents with respect to service agents?

Satisfied

Not Satisfied

Q9 Opinion on Life Insurance company

Rigid plans

Non-user friendly

Unsatisfactory services

Non-aggressive

Satisfactory

48
 Q10 Do u examine about the plans before going to invest in insurance?

Yes

No

Maybe

Q11 Which life insurance plan are best for the clients?

Term life insurance

Whole life insurance

Endowment life insurance

Retirement plan

49