CHAPTER 1 INTRODUCTION

1. INTRODUCTION: "Insurance" is basically a sharing device. The losses to assets resulting from natural calamities like fire, flood, earthquake, accidents, etc., are met out of the common pool contributed by large number of persons who are exposed to similar risks. Thus contribution of many is used to pay the losses suffered by unfortunate few. However the basic principle is that loss should occur as a result of natural calamities or unexpected events which are beyond human control. Moreover the insured person should not make any gains out of insurance. It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but often we forget that creator of all these assets is the human being whose efforts have gone a long way in building up the assets. In that sense, human life is a unique incomegenerating asset. Unlike the physical assets, which decrease in value with passage of time, the individual becomes more experienced and more matured as he advances in age. This raises his earning capacity. The purpose of life insurance is to protect the income of individual and provide financial security to his family, which is dependent on his income in the event of his premature death. The individual himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of savings in certain plans. Setting New Standards: The biggest benefit of liberalization has been to the customer, who now has a wide choice in terms of product range. As against the traditional endowment and money back policies Private insurance companies have come out with the latest version of market linked products available in the international markets and they are quite different from other conventional plans Market Link Plans provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. Market link insurance plan is life insurance solution that provides the client with the benefits of protection and flexibility investment.
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1.2.STATEMENT OF PROBLEM

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

1.3.OBJECTIVES :
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Primary Objective: The study is to find out the level Employee Satisfaction in IDBI FEDARAL Life Insurance wealthsurance plans.

Secondary Objectives: To find out the, most preferred area of investment by the customer. To examine the problems faced by customers in terms of service.
To study the preference of customers in terms of different players in the industry.

SCOPE OF THE STUDY The study is to find out the customers perception towards IDBI Wealthsurance plans.

The study is conducted in order to know the satisfaction level of customers in terms of services provided by IDBIFEDARAL life insurance plan.

The study also involves in identifying and analyzing the purpose of insurance

The respondent willingness to take the risk while investing in Wealthsurance plans is also analyzed.

The study is conducted in order to know how the age, income, education, and occupation of the respondents will influence the investment in Wealthsurance plans.

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

Plans in Royapettah, Chennai region.The respondents have little awareness over the private companies. So, it is difficult to find out the opinion about the Wealthsurance plans of the company.

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

CHAPTER 2 COMPANY PROFILE

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

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

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

FEDARAL is an international insurance group composed of AG Insurance, the overall market leader in life and non-life insurance in Belgium, distributing its insurance products through the network of BNP Paribas FEDARAL Bank and independent insurance brokers, and FEDARAL Insurance International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Nonlife), Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg (Life), Portugal, China, Malaysia, Thailand and India.

Wealthsurance plans distinguishes itself through the multiple benefits it provides to the customer the plan is a one stop solution providing 1. Life protection 2. Investment and savings 3. Flexibility 4. Transparency 5. Liquidity 6. Tax free return In a falling interest rate scenario and boom experienced in the equity markets, insurance policies are becoming popular and favored by market savy and high networth individuals. Competition has spued the usage of technology in the insurance industry. While earlier obtaining the status of life insurance policy was a time consuming process, customers can now
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get their policy status and other information through call centers, interactive voice response systems and through the internet. The creation of the insurance Regulatory and Development Authority (IRDA) has helped customers vastly as the authority now specifies time limits for documentation and settlement of claims. The regulator has also made it mandatory for insurers to have a premium calculator on their website, which makes it easier for the customer to compare products across companies. In the last three years of liberalization, promoters of private insurance companies have demonstrated their long-term commitment to the Indian market in the best way. more than investments by promoters in any other segment of the financial sector. The insurance industry has also played a significant role in mobilizing the savings of the individuals, providing cover against unforeseen contingencies and is investing these funds for economic development of the country. With only one fourth of the insurable population been provided insurance protection there is vast scope of growth for all the private companies in the future, as untapped potential is still very large. IDBI FEDARAL LTD. is the no 1 company among the private players. apart from other companies have come out with the latest version of insurance products available in international market, which are quiet different from other conventional plans. These plans have become very popular because of the transparency and the flexibility it offers to the client. In today's times, wealthsurance plan of IDBI FEDARAL LTD. provides solutions for all the needs of a client like insurance planning, financial needs, financial planning for children's future and retirement plan. Despite having so many advantages the customer's perception towards these plans has been different. The company wants to find out how the customer feels about their wealthsurance plans and also about the service provided by them. The company also wants to find out the customer's perception towards the other companies in this industry. The total investment in private life insurance companies is now over Rs.3, 000 crore, which is much

CHAPTER 3 INDUSTRY PROFILE

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

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

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LIFE INSURANCE OF INDIA Life is very fragile and death is a certainty. We cannot control the uncertainties of life. But, we can cover the risks surrounding us. Life insurance, simply put, is the cover for the risks that we run during our lives. It protects us from the contingencies that could affect us. Life insurance is not for the person who passes away, it for those who survive. It is the responsibility of every bread earner to guard against the events that could affect the family in the unfortunate circumstance of his / her demise. Thus, having a life insurance policy is very vital. Before going for a life insurance policy it is imperative that you know about various types of life insurance policies. Major among them are: INSURANCE COMPANIES IN INDIA Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. These companies have come up with innovative and flexible insurance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the Lic to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer. Major Life insurance Companies in India are: 1. LIC 2. Bajaj Allianz 3. ICICI Prudential 4. Aviva Life Insurance 5. Birla Sun Life Insurance 6. HDFC Standard Life Insurance 7. ING Vysya 8. Kotak Mahindra 9. Max New York Life Insurance 10. Metlife India Insurance 11. Reliance Life Insurance 12. SBI Life Insurance 13. Shriram Life Insurance 14. Tata AIG Life Insurance
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CHAPTER 4 LITERATURE REVIEW

4.1.REVIEW OF LITERATURE

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

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

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

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CHAPTER 5 RESEARCH METHODOLOGY

5.RESEARCH METHODOLOGY
17

Research is simply the process of finding solutions to a problem after a thorough study and analysis to the situational factors. We need to recognize the scope, need and importance as well as the objectives of the study. After the purpose has been defined, the next step is to decide about the sources of data of information may be primary as well as secondary sources, this chapter entails review of all the data obtained and it relevance to the study being undertaken.

RESEARCH DESIGN:

A descriptive study is undertaken in order to ascertain and be able to describe the characteristics of the variable of interest in a situation. A descriptive research design is used in the study which embraces a large portion of marketing research. Research design is a plan of action that guides the entire research. Hence descriptive research design is used. SAMPLING METHOD: Simple random sampling method was adopted to select sample customer. Under this sampling design, every item of the universe has an equal chance of inclusion in the sample.

POPULATION It refers to the entire group of people, events or things of interest that the researcher wishes to investigate. The population sizes for the study are the customers of IDBI Federal. SAMPLE A sample is a subset of the population .Sample size refers to the number of elements to be included in the study. The entire population sample size of the study is 120 is taken a sample size for the study.

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SAMPLING TECHNIQUE Sampling technique is a technique in which instead of every unit of universe, only a part of the universe is studied and conclusion are drawn on that basis for the entire universe, Sampling technique adopted for the study is Non-probability convenience sampling. This nonprobability design is to not generalizable it is used to obtain quick information and to get a feel for the phenomenon or the variable of interest SOURCES OF DATA: Primary Data Primary data refers to information obtained first hand by the researcher on the variables interest for the purpose of the study. The data was collected using a survey method where people were interviewed with the help of questionnaire Secondary Data Secondary data refers to information gathered from the sources already existing. The data was collected using Companies website, Companies past records, magazines and research books. DATA ANALYSIS TOOLS: The data collected was analyzed using the statistical tools Percentage analysis Chi-square Weighted average method

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CHAPTER 6 DATA ANALYSIS AND INTERPRETATION

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6. ANALYSIS AND INTERPRETATION PERCENTAGE ANALYSIS 1. AGE OF RESPONDENTS SNO 1 2 3 4 5 AGE 25 30 31 35 36 40 41- 50 ABOVE 51 TOTAL NO.OF RESPONDENTS 10 24 33 29 24 120 PERCENTAGE % 8.3 20 27.5 24.1 20 100

INFERENCE: From the above table it can be inferred that 27.5% respondents are between the age group 36 40 years , 24.1% of the respondents were between the age group 41 50 , followed by above 51 , 31- 35 and 25 30 with the percentages 20%, 20% and 8.3%.

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6.2. GENDER CLASSIFICATION OF THE RESPONDENTS SNO 1 2 GENDER MALE FEMALE TOTAL NO.OF RESPONDENTS 74 46 120 PERCENTAGE % 61.6 38.3 100

INFERENCE: From the above table it can be is inferred that 61.6% are male respondents and 38.3% are female respondents

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6.3. EDUCATION QUALIFICATION OF THE RESPONDENTS SNO 1 2 3 4 EDUCATION HSC GRADUATE PG OTHERS TOTAL NO.OF RESPONDENTS 23 47 33 17 120 PERCENTAGE % 19.1 39.1 27.5 14.1 100

INFERENCE: From the table it can be inferred that 39.1% of the respondents are graduates, 27.5% are the post graduates followed by Hsc and others with 19.1% and 14.1%.

6.4. OCCUPATION OF THE RESPONDENTS

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SNO 1 2 3 4 5 6

OCCUPATION SELF EMPLOYE GOVERNMENT SERVANT PRIVATE HOUSE WIFE RETIRED OTHERS TOTAL

NO.OF RESPONDENTS 27 28 32 11 14 8 120

PERCENTAG E % 22.5 23.3 26.6 9.1 11.6 6.6 100

INFERENCE: From the table it can be inferred that 26.6% of private employees, 23.3% are government servants followed by self employees, retired, house wife's and others.

6.5. ANNUAL INCOME OF THE RESPONDENTS

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SNO 1 2 3 4 5

ANNUAL INCOME BELOW 1 LAC 1-2 LAC 2-5 LAC 5- 10 LAC ABOVE 10 LAC TOTAL

NO.OF. RESPONDENTS 27 53 18 12 10 120

PERCENTAGE % 22.5 44.1 15 10 8.3 100

INFERENCE: From the table it can be inferred that 44% of the respondents are in the income group 12 lahks, followed by below 1 lahks, 2-5 lahks, 5-10 lahks and above 10 lahks.

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6.6. RESPONDENTS AWARENESS OF INSURANCE COMPANY SNO 1 2 3 4 5 NO.OF. RESPONDENTS PERCENTAGE % LIC 52 43.3 IDBIFEDARAL 26 21.6 BIRLA SUN LIFE 12 10 IDBI FEDARAL 8 6.6 LIFE OTHERS 22 18.3 TOTAL 120 100 COMPANY

INFERENCE: From the above table 43.3% of the respondents were aware of LIC followed by IDBI FEDARAL, OTHERS, BIRLA SUN LIFE, and SBI LIFE.

6.7. PURPOSE OF INVESTMENT IN INSURANCE

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SNO 1 2 3 4 5

PURPOSE INVESTMENT LIFE COVERAGE RETURNS LIQUIDITY INVESTMENT OTHERS TOTAL

OF NO.OF. RESPONDENT 72 12 8 22 6 120

PERCENTAGE % 60 10 6.6 18.3 5 100

INFERENCE: From the table it can be inferred that 60% of the respondents have invested in insurance for life coverage, followed by investments, returns, liquidity and others.

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6.8. WILLINGNESS OF THE RESPONDENTS TO TAKE THE RISK WHILE INVESTING IN INSURANCE SNO 1 2 3 4 INVESTMENT RISK HIGH RISK MODERATE RISK LOW RISK RISK AVERSE TOTAL NO.OF. RESPONDENTS 18 43 28 31 120 PERCENTAGE % 15 35.8 23.3 25.8 100

INFERENCE: From the table it can be inferred that 35.8% of the respondents are willing to take moderate risk followed by risk averse, low risk and high risk.

6.9. INVESTMENT IN OTHER AVENUES

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SNO 1 2 3 4 5

INVESTMENTS MUTUAL FUNDS FIXED DEPOSITS SHARES REAL ESTATES OTHERS TOTAL

NO.OF. RESPONDENTS 25 47 16 18 14 120

PERCENTAGE % 20.8 39.1 13.3 15 11.6 100

INFERENCE: From the table it can be inferred that 39.1% of the respondents invested in fixed deposits followed by mutual funds, real estates and others.

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6.10. AWARENESS OF WEALTHSURANCE PLANS OF IDBIFEDARAL SNO 1 2 3 4 AWARENESS FULLY AWARE PARTIALLY AWARE NOT AWARE CANT SAY TOTAL NO.OF.RESPONDE NTS 32 52 20 16 120 PERCENTAGE % 26.6 43.3 16.6 13.3 100

INFERENCE: From the table it can be inferred that 43.3% of the respondents are partially aware of market link plans followed by fully aware, not aware and can't say.

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6.11. SOURCE OF INFORMATION ABOUT THE WEALTHSURANCE PLANS OF IDBI FEDARAL

SNO 1 2 3. 4.

SOURCE OF INFORMATION NEWPAPERS MEDIA ADVISORS FRIENDS TOTAL

NO.OF.RESPONDENTS 25 22 55 18 120

PERCENTAGE % 20.8 18.3 45.8 15 100

INFERENCE From the above table it can be inferred that 45.8% of the respondents got the information about the market link plans through advisors followed by newspapers, media and friends

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6.12. INVESTMENT IN THE WEALTHSURANCE PLANS OF IDBI FEDARAL SNO 1 2 INVESTMENT MADE YES NO TOTAL NO.OF.RESPONDE NTS 47 73 120 PERCENTAGE % 39.1 60.9 100

INFERENCE: From the above table we can infer that 60.9% of the respondents are not aware of market link plans. Only 39.1% respondents are aware of the Market Link plans

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6.13. SATISFACTION LEVEL OF CUSTOMERS BY SERVICE OFFERED BY IDBI FEDERAL

S.NO Satisfaction Level 1. 2. 3. 4. 5. Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total

Number of Respondents 17 47 34 19 4 120

Percentage 14 39 28 16 3 100

INFERENCE: From the above table we can infer that 39% of the customers are satisfied, 28% of customers are neutral, 14% of customers are highly satisfied and the remaining 16% and 3% of customers are dissatisfied and highly dissatisfied by the service level offered by IDBI Federal Insurance.
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4.14. RECOMMEND IDBI INSURANCE PLANS TO OTHERS S.No Recommend 1. Yes 2. No Total Number of Respondents 87 33 120 Percentage 73 27 100

INFERENCE: From the above table 73% of the respondents will recommend the plan to others and remaining 27% wont recommend to others.

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6.15. EXTENSION OF MATURITY PERIOD S.No 1. 2. Maturity Period Yes No Total Number of Respondents 73 47 120 Percentage 60 40 100

INFERENCE From the table we can infer that 60 % of the respondents extend their maturity period and remaining does not extend.

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6.16. FLEXIBLE PREMIUM PAYMENT OPTIONS S.No 1. 2. Premium Yes No Total Number of Respondents 69 51 120 Percentage 52 48 100

INFERENCE: From the above table can infer that 52 % of respondents are flexible with premium payments options and remaining 42 % of respondents are not flexible.

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4.17. SATISFACTION LEVEL FROM THE RETURN ON INVESTMENT S.No 1. 2. Return Yes No Total Number of Respondents 88 32 120 Percentage 76 34 100

INFERENCE: From the above table 76% of the respondents are satisfied with their return on investment and remaining 34% are dissatisfied.

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6.18. INVESTED IN OTHER INSURANCE COMPANIES S.No 1. 2. 3. 4. Insurance LIC Birla Sunlife ICICI Others Total Number of Respondents 62 9 18 31 120 Percentage 53 7 15 25 100

INFERENCE: From the above table we can infer that 53% of the respondents are invested in LIC. Only 7% respondents are invested in Birla Sun life.

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6.19. STATISTICAL ANALYSIS Chi-square test to find out the relationship between the purpose of investment in insurance and the annual income of the respondent. Null Hypothesis (Ho) : There is no significant relationship between the purpose of investment in insurance and the annual income. Alternate Hypothesis (H1) : There is significant relationship between the purpose of the investment in insurance and the annual income. Returns Liquidit Investmen Others Total Purpose of investment Life Coverag y t in Insurance Annual e Income Below 1,00,000 12 5 7 0 0 0 12 3 2 1 2 0 8 6 11 2 12 2 22 1 5 0 0 0 6 27 53 18 12 10 120

1 to 2,00,000 28 2 to 5,00,000 15 5 to 10,00,000 9 Above 10,00,000 Total 8 72

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CHI SQUARE TEST 0 12 5 3 6 1 28 7 2 11 5 15 0 1 2 0 9 0 2 1 0 8 0 0 2 0 E 16.2 2.7 1.8 4.95 1.35 31.8 5.3 3.53 9.7 2.65 10.8 1.8 1.2 3.3 0.9 7.2 1.2 0.8 2.2 0.6 6 1 0.66 1.83 0.5 (0-E)2 17.64 5.29 1.44 1.025 0.1225 14.44 2.89 2.3404 1.69 5.5225 17.64 3.25 0.04 1.69 0.81 3.24 1.44 1.44 1.44 0.36 4 1 0.4356 0.17 0.25 Total = Degree of freedom = (r-1) (c-1) = (5-1) (5-1) = 16
40

(0-E)2 E 1.088 1.959 0.8 0.222 0.0907 0.454 0.545 0.663 0.1742 2.083 1.6333 1.8055 0.333 0.5121 0.9 0.45 1.2 1.8 0.654 0.6 0.666 1 0.66 0.0928 0.5 20.5859

The tabulated value of x2 at 16 degree of freedom and at 0.05 level of significance is 26.296 since the calculated value is less than the tabulated value our null hypothesis is accepted and alternate hypothesis is rejected. Inference: There is no significance relationship between the purpose of investment in insurance and the annual income. Chi-square test find out the relationship between the risk taken while investing and the amount invested. Null Hypothesis: There is no significant relationship between the risk taken while and the amount invested. Alternate Hypothesis: There is significance relationship between the risk taken while investing and the amount invested.

Risk taken while Moderate Risk Investing Amount invested Below 25,000 25,000 - 50,000 50,000 - 75,000 High Risk 6 3 2 5 2 3 Low Risk Risk Averse Total 5 4 2 2 2 0 18 11 7

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TABLE CHI- SQUARE

0 6 5 5 2 3 2 4 2 2 3 2 0 2 3 0 1 1 3 0 0

E 5 6.1 4.2 2.7 3.04 3.8 2.6 1.7 1.9 2.3 1.7 1.04 1.7 2.04 1.4 0.9 1.3 1.7 1.1 0.7

(0-E)2 1 1.21 0.64 0.49 0.0016 3.24 1.96 0.09 0.01 0.49 0.09 1.0816 0.09 0.9216 1.96 0.01 0.01 1.69 1.21 0.49 Total = 0.2

(0-E)2 E 0.19 0.15 0.18 0.005 0.85 0.75 0.05 0.005 0.21 0.05 1.04 0.05 0.45 1.4 0.01 0.01 0.9 1.1 0.7 8.3955

Degree of freedom (4-1) (5-1)=12 The tabulated value of x2 at 12 degrees of freedom and at 0.05 level of significance is 21.026 Since the computed value is less than the tabulated value Null Hypothesis is accepted and alternate hypothesis is rejected.

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Inference: There is no significant relationship between the risk taken while investing and the amount invested. Chi-Square table find out the relationship between the age of the respondents and the risk taken by the respondent while investing. Null Null while investing. Alternate Hypothesis: There is significant relationship between the age of the respondent and the risk taken while investing.
AGE

Hypothesis:

There is no significant relationship between age of the respondent and the risk taken

25-30

31-35

35-40

Above 51 Total 1 3 10 10 24 18 43 28 31 120

RISK

High Risk Moderate Risk Low Risk Risk Averse TOTAL

3 4 2 1 10

5 12 3 4 24

6 19 4 4 33

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DEGREE OF FREEDOM:(r-1) (c-1)=4 x 5=21.026 The tabulated value of x2 at 12 degrees of freedom and at 0.05 level of significance is 0 3 5 6 3 1 4 12 19 5 3 2 2 4 9 10 1 4 4 12 10 E 1.5 3.6 5 4.35 3.6 3.6 8.6 12 10.3 8.6 2.3 5.6 7.7 6.8 5.6 2.6 6.2 8.5 7.5 6.2 (0-E)2 2.25 1.96 1 1.8225 6.76 0.16 11.56 49 28.09 37.36 0.09 6.76 13.69 4.84 19.36 2.56 4.84 20.25 20.25 14.44 (0-E)2 E 1.5 0.54 0.2 0.4 1.9 0.04 1.34 4.08 2.7 3.6 0.03 1.2 1.7 0.07 3.45 1 0.07 2.38 2.7 2.3 Total = 32.38

= 21.026. Since the tabulated value is less than the calculated value our alternate hypothesis is accepted and null hypothesis is rejected. Inference: There is significant relationship between the age of respondents and amount the investments.1. Weighted average method to find out the level of satisfaction of respondents

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6.20. WEIGHTED AVERAGE METHOD For flexibility: Weights Claim settlements Quarterly Reports Customer care Service Renewal 23 premium Others 16 9 15 8 7 6 8 1 1 183 171 11.86 11.07 I II 16 9 8 10 4 164 10.53 V 14 9 13 10 1 166 11.06 IV r1=w5 r2=w4 r3=w3 18 9 8 r4=w r5=w1 Weighted points 2 10 2 172 Weighted Rank Average 11 III

From the table is a evident that renewal premium has been given the first rank followed by others, claims settlement, quarterly reports & customer care service. 2. Weighted average method to find out the customers perception towards other players in the industry. For Security: Weights LIC IDBI FEDARAL HDFC Standard Life Birla Sun life SBI Life Others r1=w5 68 41 26 19 33 12 r2=w4 r3=w3 22 26 34 14 24 27 9 19 18 41 19 15 r4=w2 r5=w1 Weighted points 14 7 490 25 9 425 22 20 30 24
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Weighted Average 32.66 28.33 25.6 22.66 26.13 19.53

Rank I II IV V III VI

20 26 14 32

384 340 392 293.4

From the table it is evident that people are more secure with LIC followed by IDBI FEDARAL, SBI Life, HDFC Standard Life, Birla Sun Life and Others.

For Liquidity: Weights LIC IDBI FEDARAL HDFC r1=w5 22 37 21 r2=w4 14 17 19 9 18 20 r3=w3 38 8 16 21 15 26 r4=w2 r5=w1 19 32 25 23 27 16 27 26 39 39 30 42 Weighted points 351 367 318 324 345 312 Weighted Rank Average 23.4 II 24.46 I 21.2 21.6 23 20.8 V IV III VI

Standard Life Birla Sun life 28 SBI Life 30 Others 16

From the table it can be stated that IDBI FEDARAL has been given the First rank in terms of liquidity followed by LIC, SBI Life. Birla Sun Life, HDFC Standard Life and Others. From the table is a evident that renewal premium has been given the first rank followed by others, claims settlement, quarterly reports & customer care service.

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Weighted average method to find out the customers perception towards other players in the industry.

Weights LIC IDBIFED ARAL HDFC Standard Life Birla Sun life SBI Life Others

r1=w5 28 27 19 21 14 11

r2=w4 31 18 22 19 22 20

r3=w3 r4=w2 12 23 27 31 19 32 23 31 14 16 35 30

r5=w1 26 21 38 33 30 27

Weighted points 372 359 330 339 315 318

Weighted Rank Average 24.8 I 23.93 II 22 22.6 21 21.2 IV III VI V

From the table it can be stated that LIC has been given the First rank in terms of flexibility followed by IDBIFEDARAL, Birla Sunlife, HDFC Standard Life, SBI Life and others. For Service: Weights LIC IDBIFED ARAL HDFC Standard Life Birla Sun life SBI Life Others r1=w5 28 52 21 27 15 23 r2=w4 22 18 32 18 25 10 r3=w3 r4=w2 14 21 16 31 22 39 32 19 27 16 23 25 r5=w1 24 10 24 28 35 23 Weighted points 357 443 259 360 322 345 Weighted Rank Average 23.8 IV 29.53 I 23.93 24 21.46 23 III II VI V

From the table it can be stated that IDBIFEDARAL has been given First rank in terms of service followed by Birla Sun life, HDFC Standard Life, LIC, Others and SBI.

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For Returns: Weights LIC IDBI FEDARAL HDFC Standard Life Birla Sun life SBI Life Others r1=w5 36 38 21 28 19 22 r2=w4 23 29 19 16 27 15 r3=w3 r4=w2 199 21 26 19 13 31 26 15 31 18 31 18 r5=w1 16 17 23 39 30 34 Weighted points 397 416 344 336 334 333 Weighted Average 26.46 27.73 22.93 22.4 22.26 22.2 Rank II I III IV V VI

From the table it can be stated that IDBIFEDARAL has been given the First rank in terms of returns followed by LIC, HDFC Standard Life, Birla Sun Life, SBI Life and Others.

Para Meters Companies LIC IDBI FEDARAL HDFC Standard Life Birla Sun life SBI Life Others

Security Liquidity Flexibility I II IV V III VI II I V IV III VI I II IV III VI V

Service IV I III II VI V

Returns II I III IV V VI

From the table it can be inferred that LIC has been given first rank in terms of security, IDBI FEDARAL has been given first rank in terms of liquidity, LIC has been given first rank in

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terms of flexibility and IDBI FEDARAL has been given first rank in terms of service and returns.

CHAPTER 6 FINDINGS AND SUGGESTIONS

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FINDINGS The respondents have wide knowledge about the market link plans of different insurance companies. The respondents are willing to take moderate risk while investing in market link plans. The education qualification of the respondent plays a vital role while investing in market link plans. The respondent working in private organization is fully aware of the market link plans. Most of the respondents dont have the complete knowledge about the equity market and the debt market. The respondents feel that the advisors are a major source of information about the market link plans. Most of the respondents are satisfied with the service provided by the company. LIC has been a major competitor for IDBI FEDARAL in the market link plans.

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RECOMMENDATIONS 1. The investor should be educated about the equity and debt market. 2. IDBIFEDARAL have to concentrate on lower income category by coming out with cheaper premium rates. 3. The investors should be given monthly reports instead of quarterly reports. 4. IDBIFEDARAL has to concentrate more on advertisement through news papers televisions etc., in order to inform the customers about the different options available in market link plans. 5. The advisors should be provided with good training about the products before they meet the customers. 6. Against the population 105 crores only 10 crores are covered by insurance. Private insurance companies have to reach to all segment of market by winning the confidence of the public.

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CHAPTER 7

CONCLUSION

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

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

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CHAPTER 8 APPENDIX QUESTIONNAIRE 1 Name: 2 Age: M 4. Qualification: HSC GRADUATION POST GRADUATION OTHERS F 3 Gender:

5. Employment: SelfEmployee Government Employee Private Employee House Wife Retired Others

6. Annual Income: Below 1lakh 1-2 lakhs 2-5 lakhs 5-10 lakhs Above 10 lakhs

7. How you come to know about IDBI. LIC IDBI FEDARAL BIRLA SUN LIFE ICICI PRUDENTIAL LIFE INSURANCE

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IF OTHERS

SPECIFY ______________

What is the purpose of insurance according to you? Life Coverage Returns Liquidity Investment Others

8. What is the level of risk while investing in insurance? High Risk Moderate Risk Low Risk Risk Averse ( ( ( ( ) ) ) )

9. What are the other investment avenues you prefer while investing? Mutual Funds Fixed Deposits Shares Real Estates Others [ ] [ ] [ [ ] ] [ ]

10. How you came to know about the IDBI FEDARAL Wealthsurance plan? Newspapers Media Advisors FEDARAL Executives { } { } { } { }

11. How do you rate the service offered by the IDBI FEDARAL? 1.Highly satisfied 2.Satisfied 3.Neutral 4.Dissatisfied 5.Highly dissatisfied

12. Would you recommend the IDBI FEDARAL Insurance plans to others? Yes ( ) No ( )
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13. Would you like to extend the maturity period for your insurance plan? Yes ( ) No ( )

14. Which fund option you prefer? Monthly guaranteed interest funds Guaranteed return funds Dynamic guaranteed funds Market fund options 15. Is premium payment options are flexible? Yes ( ) No ( ) [ [ [ [ ] ] ] ]

16. What are the additional benefits you like in this insurance plan? (Choose multiple options) Health insurance benefits Accident & disablement benefits Waiver of premium benefits Life insurance benefit 17. Is the return avail from the insurance plan are satisfactory to you. Yes [ ] No [ ]

18. Rate the following provided by IDBI Federal Excellent Customer Service Quarterly reports Very good Good Average Poor

Renewal Premium

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Customer care service Others

19. Rank the following according to your priority? Product LIC IDBI Federal Birla Sun life ICICI Prudential Others Security Liquidity Flexibility Service Returns

20. Apart from IDBI Federal Wealth insurance plans in which company have you invested? LIC BIRLA SUN LIFE ICICI PRUDENTIAL LIFE INSURANCE OTHERS

21. Are you satisfied with the service provided by IDBI Federal? Yes ( ) 22. Suggestions, if any ________________________________________________________ No ( )

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CHAPTER 9 BIBLIOGRAPHY

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BIBLIOGRAPHY

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

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