CHAPTER 1

INTRODUCTION

1.1 ABOUT THE STUDY

As the title suggests the main aim of the project is to determine the factors that
actually influence the customers buying behaviour towards the insurance sector. It clearly
depicts what are all the factors that the customers actually get influenced when the purchase
the product.
The project gives an introduction to the concept of insurance followed by its origin
and history and then discusses the current market scenario. Further the project gives
introductions to IDBI FEDERAL LIFE INSURANCE COMPANY LTD. and the various
products it has for offering to the public.
The project then briefly discusses about the aim of the study, the limitations of the
study and the methodology adopted for the research. A sample size of 130 consumers is taken
and a detail descriptive research is been done for those customers. Descriptive research is
used to describe characteristics of a population or phenomenon being studied, thus this is
been implemented to this project to know the characteristics of the customers towards the life
insurance products. Thus the responses of customers are briefly analysed, tabulated, to know
the factors that contribute and also be the barriers for the customers regarding insurance
products of IDBI FEDERAL.
1.2 INDUSTRY PROFILE

1.2.1 INDUSTRY OVERVIEW

India insurance is a flourishing industry, with several national and international

players competing and growing at rapid rates. Reforms and the easing of policy regulations,
the Indian insurance sector been allowed to flourish, and as Indians become more familiar
with different insurance products, this growth can only increase, with the period from 2010 -
2015 projected to be the ‘Golden Age’ for the Indian insurance industry. Together with
banking services, it contributes to about 7 per cent to the country’s GDP. This lifted entry
restrictions for private players and allowed foreign players to enter the market with some
limits on direct foreign ownership. There is a 26 percent equity cap for foreign partners in an
insurance company and a proposal to increase this limit to 49 percent. The opening up of the
insurance sector has led to rapid growth of the sector. The potential for growth of insurance

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industry in India is immense as nearly 80 per cent of Indian population is without life
insurance cover while health insurance and non-life insurance continues to be well below
international standards. The insurance sector in India has come up with a full circle from
being an open competitive market to nationalization and back to a liberalized market again.
1.2.2. CLASSIFICATION OF INSURANCE COMPANIES

Insurance companies may be classified into two groups:

 Life insurance companies, which sell life insurance, annuities and pensions products.
 Non-life or property/casualty insurance companies, which sell other types of
insurance
1.2.3. HISTORY OF INSURANCE INDUSTRY
Insurance sector is one of the booming sectors of the economy and is growing at the
rate of 15-20 per cent annum. Together with banking services, it contributes to about 7 per
cent to the country's GDP. Insurance is a federal subject in India and Insurance industry in
India is governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and
General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts. The origin of life insurance
in India can be traced back to 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta. It was conceived as a means to provide for English Widows. In those
days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives
were considered riskier for coverage. The Bombay Mutual Life Insurance Society that started
its business in 1870 was the first company to charge same premium for both Indian and non-
Indian lives. In 1912, insurance regulation formally began with the passing of Life Insurance
Companies Act and the Provident Fund Act.
By 1938, there were 176 insurance companies in India. But a number of frauds during
1920s and 1930s tainted the image of insurance industry in India. In 1938, the first
comprehensive legislation regarding insurance was introduced with the passing of Insurance
Act of 1938 that provided strict State Control over insurance business. Insurance sector in
India grew at a faster pace after independence. In 1956, Government of India brought
together 245 Indian and foreign insurers and provident societies under one nationalized
Monopoly Corporation and formed Life Insurance Corporation (LIC) by an Act of
Parliament, viz. LIC Act, 1956. In 1993, the first step towards insurance sector reforms was

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initiated with the formation of Malhotra Committee, headed by former Finance Secretary and
RBI Governor R.N. Malhotra.
1.2.4. INDUSTRY ANALYSIS
Indian insurance sector has remained on rails even in the toughest of the times, thanks
to the Insurance Regulatory and Development Authority (IRDA)'s tough and conservative
apparatus. A sound insurance segment ensures better economic development as indicated by
a study which states that 1 per cent increase in insurance penetration leads to 13 per cent
reduction in uninsured losses and 22 per cent reduction in taxpayers' contribution to recovery
following a natural catastrophe. Keeping pace with international happenings, Indian
insurance industry has remained in a good health and maintained absolute transparency and
highest standards of corporate governance. Assets under management (AUM) of the Indian
insurers are slated to touch Rs 20 trillion (US$ 376.51 billion) while the general insurance
sector is anticipated to grow 18 per cent in 2012-13. It was reported that the insurance sector
has grown substantially over the last few years, with its AUM from Rs 8 trillion (US$ 150.57
billion) in 2008 to Rs 18 trillion (US$ 338.82 billion) in 2011-12.
1.2.5. MARKET SIZE
India's life insurance sector is the biggest in the world with about 360 million policies
which are expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per
cent over the next five years. The insurance industry plans to hike penetration levels to five
per cent by 2020.
The country’s insurance market is expected to quadruple in size over the next 10 years
from its current size of US$ 60 billion. During this period, the life insurance market is slated
to cross US$ 160 billion. The general insurance business in India is currently at Rs 78,000
crore (US$ 11.7 billion) premium per annum industry and is growing at a healthy rate of 17
per cent.The Indian insurance market is a huge business opportunity waiting to be harnessed.
India currently accounts for less than 1.5 per cent of the world’s total insurance premiums
and about 2 per cent of the world’s life insurance premiums despite being the second most
populous nation. The country is the fifteenth largest insurance market in the world in terms of
premium volume, and has the potential to grow exponentially in the coming years.
1.2.6. MAJOR INVESTMENTS IN INSURANCE SECTOR
The following are some of the major investments and developments in the Indian
insurance sector.

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  Foreign Direct Investment in the insurance sector stood at US$ 341 million in March-
September, 2015, showing a growth of 152 per cent compared to the same period last
year.
 Insurance firm AIA Group Ltd has decided to increase its stake in Tata AIA Life
Insurance Co Ltd, a joint venture owned by Tata Sons Ltd and AIA Group from 26
per cent to 49 per cent.
 Canada-based Sun Life Financial Inc plans to increase its stake from 26 per cent to 49
per cent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya Birla Nuvo
Ltd, through buying of shares worth Rs 1,664 crore (US$ 249 million).
 Nippon Life Insurance, Japan's second largest life insurance company, has signed
definitive agreements to invest Rs 2,265 crore (US$ 348 million) in order to increase
its stake in Reliance Life Insurance from 26 per cent to 49 per cent.
 The Central Government is planning to launch an all-in-one insurance scheme for
farmers called the Unified Package Insurance Scheme (Bhartiya Krishi Bima Yojana).
The proposed scheme will have various features like crop insurance, health cover,
personal accident insurance, livestock insurance, insurance cover for agriculture
implements like tractors and pump sets, student safety insurance and life insurance.
 Government launched a special enrolment drive, Suraksha Bandhan Drive comprising
of sale of gift cheques and launch of deposit schemes in bank branches, to facilitate
enrolment under Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan
Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
1.2.7. MAJOR PLAYERS
 Bajaj Allianz Life Insurance Company Limited.
 Birla Sun Life Insurance Co. Ltd
 HDFC Standard Life Insurance Co. Ltd
 ICICI Prudential Life Insurance Co. Ltd
 Exide Life Insurance Company Limited
 Life Insurance Corporation of India
 Max Life Insurance Co. Ltd
 PNB Met life India Insurance Co. Ltd.
 Kotak Mahindra Old Mutual Life Insurance Limited
 SBI Life Insurance Co. Ltd
 IDBI Federal Life Insurance Company Ltd.
 Tata AIA Life Insurance Company Limited

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  Reliance Life Insurance Company Limited
 Aviva Life Insurance Company India Limited
 Sahara India Life Insurance Co, Ltd.
 Shriram Life Insurance Co, Ltd.
 Bharti AXA Life Insurance Company Ltd.
 Future Generali India Life Insurance Company Limited
 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.
1.2.9. GOVERNMENT INITIATIVES
The Government of India has taken a number of initiatives to boost the insurance
industry. Some of them are as follows:
 The Insurance Regulatory and Development Authority (IRDA) of India has formed
two committees to explore and suggest ways to promote e-commerce in the sector in
order to increase insurance penetration and bring financial inclusion.
 IRDA has formulated a draft regulation, IRDAI (Obligations of Insures to Rural and
Social Sectors) Regulations, 2015, in pursuance of the amendments brought about
under section 32 B of the Insurance Laws (Amendment) Act, 2015. These regulations
impose obligations on insurers towards providing insurance cover to the rural and
economically weaker sections of the population.
 The Government of India has launched two insurance schemes as announced in Union
Budget 2015-16. The first is Pradhan Mantri Suraksha Bima Yojana (PMSBY), which
is a Personal Accident Insurance Scheme. The second is Pradhan Mantri Jeevan Jyoti
Bima Yojana (PMJJBY), which is the government’s Life Insurance Scheme. Both the
schemes offer basic insurance at minimal rates and can be easily availed of through
various government agencies and private sector outlets.
 The Uttar Pradesh government has launched a first of its kind banking and insurance
services helpline for farmers where individuals can lodge their complaints on a toll
free number.
 The select committee of the Rajya Sabha gave its approval to increase stake of foreign
investors to 49 per cent equity investment in insurance companies.
 Government of India has launched an insurance pool to the tune of Rs 1,500 crore
(US$ 226 million) which is mandatory under the Civil Liability for Nuclear Damage
Act (CLND) in a bid to offset financial burden of foreign nuclear suppliers.

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1.2.10. ROAD AHEAD
India's insurable population is anticipated to touch 750 million in 2020, with life
expectancy reaching 74 years. Furthermore, life insurance is projected to comprise 35 per
cent of total savings by the end of this decade, as against 26 per cent in 2009-10.
The future looks promising for the life insurance industry with several changes in
regulatory framework which will lead to further change in the way the industry conducts its
business and engages with its customers.
Demographic factors such as growing middle class, young insurable population and
growing awareness of the need for protection and retirement planning will support the growth
of Indian life insurance.
1.3 COMPANY PROFILE

1.3.1. ABOUT IDBI FEDERAL LIFE INSURANCE

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s

premier development and commercial bank, Federal Bank, one of India’s leading private
sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture,
IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. At IDBI
Federal, we endeavor to deliver products that provide value and convenience to the customer.
Through a continuous process of innovation in product and service delivery we intend to
deliver world-class wealth management, protection and retirement solutions to Indian
customers. Having started in March 2008, in just five months of inception we became one of
the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company
offers its 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. As on January 31st
2011, the company has issued over lakh 2.68 lakh policies with over Rs 14, 230 Cr in Sum
Assured.

1.3.2. ABOUT THE SPONSORS OF IDBI FEDERAL LIFE INSURANCE CO LTD

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial
development bank. Created in 1956 to support India’s industrial backbone, IDBI Bank has
since evolved into a powerhouse of industrial and retail finance. Today, it is amongst India’s
foremost commercial banks, with a wide range of innovative products and services, serving
retail and corporate customers in all corners of the country from 783 branches and 1328

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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 India’s financial sector –National Stock Exchange of India
Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock Holding Corporation
of India Ltd), CARE (Credit Analysis and Research Ltd)

Federal Bank is one of India’s leading private sector banks, with a dominant presence
in the state of Kerala. It has a strong network of over 739 branches and 797 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. 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.

Ageas is an international insurance company with a heritage spanning more than 180
years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to
concentrate its business activities in Europe and Asia, which together make up the largest
share of the global insurance market. They are grouped around four segments: Belgium,
United Kingdom, Continental Europe and Asia. It is an undisputed leader in the Belgian
market for individual life and employee benefits, as well as a leading non-life player, through
AG Insurance. Internationally Ageas has a strong presence in the UK, where it is the second
largest player in private car insurance. The company also has subsidiaries in France,
Germany and Hong Kong. Ageas has a track record in developing partnerships with strong
financial institutions and key distributors in different markets around the world and
successfully operates partnerships in Luxembourg, Italy, Portugal,China, Malaysia, India and
Thailand. Ageas employs more than 13,000 people and has annual inflows of almost EUR
18billion.

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1.3.3. VISION

 To be the leading provider of wealth management, protection and retirement solutions

that meets the needs of our customers and adds value to their lives.

1.3.4. MISSION

 To continually strive to enhance customer experience through innovative product

offerings, dedicated relationship management and superior service delivery while
striving to interact with our customers in the most convenient and cost effective
manner.
 To be transparent in the way we deal with our customers and to act with integrity.
 To invest in and build quality human capital in order to achieve their mission.

1.3.5 VALUES

 Transparency: Crystal Clear communication to our partners and stakeholders

 Value to Customers: A product and service offering in which customers perceive
value
 Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims
 Customer-friendly: Advice and support in working with customers and partners
 Profit to Stakeholders: Balance the interests of customers, partners, employees,
shareholders and the community at large

1.3.6 EXCELLENCE

In every aspect of work ranging from the in-house training institute to the detailed
Personal Insurance Plan. IDBI Fortis is focused on achieving the highest standards of quality
in every aspect of their business

1.3.7 PRODUCTS IN BREIF

 IDBI Federal Wealthsurance Milestone Plan

The combined knowledge of our partners’ customer base of over 9 million,
and the combined expertise in the insurance business allowed us to look at the

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 category in a different way. Customers are often left perplexed by the various
insurance options, insurance plus investment options, insurance riders and the
multitude of other complicated terminologies that hit them every day. This is apparent
in the way customers buy insurance - as an investment. So we decided to design one
product that can have the flexibility to incorporate within itself, all the possible
investments and insurance combinations. We realised that, to reach long-term
financial goals, one needs to have a balanced investment plan. If this plan continues to
work, the power of compounding can ensure that one would logically reach their
goals. Simple, isn’t it? Unfortunately, life is uncertain and any plan is incomplete
without being prepared for uncertainties. Be it your changing risk appetite or a major
illness or accident that poses a sudden financial demand that could force one to break
this plan. One break in a continuous investment plan can heavily dent your investment
objectives. This very insight forms the basis of our product. Presenting an insured
wealth plan. A plan that not only allows the policyholder to invest according to their
changing risk appetite; it also provides a host of insurance benefits to protect them
against uncertainties, so that they don’t have to break their investment to meet sudden
financial demands and their money can keep compounding. The
Wealthsurance Milestone Plan enables the policyholder to save and build wealth to
meet their financial goals. This Plan comes with a wide range of 13 investment
options and 7 insurance benefits - all packaged with a low charge structure and
unmatched flexibility. Moreover, get tax benefits on investment and returns under Sec
80C and Sec 10(10D)
 IDBI Federal Homesurance Protection Plan
Homesurance Protection Plan is a mortgage reducing term insurance plan that
secures the policyholder, irrespective of interest fluctuations at a nominal cost with
high benefits. IDBI Federal Homesurance Protection Plan provides full insurance
cover for properties even under construction, thus ensuring that the beneficiary gets
the full sanctioned amount in case of any unfortunate event. It also has an innovative
fixed period cover for those who would aim to prepay their loans early and would find
a cover for the full term a waste.
 IDBI Federal Bondsurance Plan
Given the ever-changing market conditions, a certain segment of customers
prefer to invest their money in guaranteed return products. Bondsurance is designed
for customers looking for guaranteed returns which will not get affected by financial

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 market conditions. It offers guaranteed return on investment along with life insurance
cover. Investment in the Plan is eligible for deduction under Sec 80C of the Income
Tax Act and the maturity amount is tax-free under Sec 10(10D) of the Income Tax
Act.
 IDBI Federal Group Microsurance Plan
Microfinance is recognised globally as the foremost tool in pulling large
numbers of poor households from the grip of poverty. Micro-insurance in particular is
an explicit need and desire of poor households as it offers some protection from their
intense vulnerability to external shocks. IDBI Federal Microsurance® Plan is a one of
its kind insurance plan which can be very useful for various Micro Financial
Institutions and NGOs, wherein not only the members but even the member’s family
gets an insurance cover.
 IDBI Federal Termsurance Protection Plan
A term plan is a term plan, that’s how this product has been seen. We realized,
different people have different needs for insurance. Some look for a large cover
option at a low cost, while others seek return of premium on maturity of the policy.
There are some who may want their plan to keep in touch with inflation, while others
may seek flexible premium payment options. IDBI Federal Termsurance Protection
Plan is not a typical term insurance plan that gives you a cover for the premium, it is
innovatively designed to deliver more value to the customers who are looking for a
flexible protection plan and a large insurance cover at an affordable cost. The plan
offers a Level Paying Term, like a usual term plan. In addition it also offers a Return
of Premium so you can get the premiums paid, back on maturity. That’s not all, we
understood that by the time an insurance policy matures, inflation and rising costs can
make the cover inadequate. IDBI Federal Termsurance® Protection Plan offers the
unique Increasing Cover option that automatically increases the cover every year
without increasing the premium. This way, your sum assured keeps increasing just
like rising costs and inflation, keeping you adequately covered till maturity. The
Premium is eligible for tax deduction under Sec 80C.
 IDBI Federal Grameen Suraksha Plan
IDBI Federal Termsurance® Grameen Suraksha is a low-cost, simple term
individual insurance plan targeted at the rural population. It is an ideal plan to protect
the policyholder’s family members in the event of unfortunate demise of the major
income earner.

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 IDBI Federal Grameen Bachat Yojana
IDBI Federal Termsurance® Grameen Bachat Yojana is a low-cost risk
protection plan targeted at the rural population. It is an ideal plan to protect family
members in the event of unfortunate demise of the major income earner and also to
save for specific events like repayment of loan, daughter's marriage or child's
education. The plan offers life cover at a nominal cost along with the option of refund
of premiums paid by you at maturity. This product has got a very unique mix of
options that allow the customers to receive either of 0%, 50%, 90% or 100% return of
premium. The coverage terms offered are 3 years, 5 years & 10 years. The customer
has the flexibility of get the sum assured ranging from Rs. 5,000 to Rs. 1,00,000 in the
multiples of Rs. 1,000.
 IDBI Federal Incomesurance Endowment & Money Back Plan
IDBI Federal Incomesurance™ Endowment & MoneyBack Plan is a unique
combination of the oldest type of insurance policies. On purchasing a typical
endowment plan, it is difficult to know the final maturity amount at the time of
investing. Also, the maturity date is usually fixed and therefore, if your goals shifted,
like getting your daughter married earlier, your plan would not provide the required
flexibility. Knowing the customer helped us to combine the Endowment & Money
Back plans into a single plan that would allow you to withdraw at maturity but also
take your money back at intervals. This way, you can now have the flexibility to tailor
your investment to your life’s goals. To add, we linked the returns to the G-Sec rates,
transparently declared by the government. This way, you would know the exact
amount on maturity at the time of investing. So you could invest according to the
desired corpus you intended to build. The Premium is eligible for tax deduction under
Sec 80C. Also, the Guaranteed Annual Payout and other benefits upon death are tax-
free under Sec 10(10D).
 IDBI Federal Healthsurance Hospitalisation and Surgical Plan
Every year, millions of adults in India are admitted to hospitals due to illness or
injury. With the sharp rise in lifestyle diseases in the country, hospitalization has now
become a real chance for most of us. Yet, when you bring up hospitalization, "It
won’t happen to me!" is the typical response from people at large. It is this insight that
helped us create IDBI Federal Healthsurance™ Hospitalisation and Surgical Plan.
This new insurance plan offers a host of features and benefits that are designed to help
you manage the extra financial burden that comes with hospitalisation.

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1.3.8 SPONSORSHIPS, AWARDS
IDBI Fortis Life Insurance Company was selected as the title sponsor for the
India-Sri Lanka Cricket Series. This was followed by the IDBI Fortis Wealthsurance
Twenty20. ‘Wealthsurance Made Easy’ (WME), a knowledge aid by IDBI Fortis for
its sales force, won The Bronze Dragon in the category for ‘Best Dealer/Sales Force
activity’ at the Promotion Marketing Awards of Asia (PMAA)
1.3.9 ORGANIZATIONAL STRUCTURE
1.3.9.1. SALES ORGANIZATIONAL STRUCTURE

Fig.1.1 Sales Organizational Structure

1.3.9.2. HUMAN RESOURCE ORGANIZATIONAL STRUCTURE

Fig. 1.2 Human Resource Organizational Structure

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 1.3.9.3. OPERATIONS ORGANIZATIONAL STRUCTURE

Fig 1.3 Operations Organizational Structure

1.4 PROBLEM STATEMENT

Consumer behaviour can be broadly classified as the decisions and actions that
influence the purchasing behaviour of a consumer. What drives consumers to choose a
particular product with respect to others is a question which is often analysed and studied
by marketers. Most of the selection process involved in purchasing is based on emotions
and reasoning. The study of consumer behaviour not only helps to understand the past
but even predict the future. Thus insurance industry being the toughest industry to crack
the minds of people to actually fall for it is difficult and the reason being is that it has a
pool of competitors involved in it. Thus in order to attract the customers towards any
insurance company is to provide the maximum benefits and good products to the
customers thus only by this way they can make the customers to buy the product.

1.5 SCOPE OF THE STUDY

The scope of study of the project is to improvise the factors that influence the consumer
towards purchasing life insurance products.so that it can increase its market size and
deliver the best suitable product to the customers. In concern to IDBI it helps to increase
its market size with the possibility of knowing the behaviour of customers and it can
further deliver those factors to capture the customers.

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 CHAPETR 2

REVIEW OF LITERATURE

Dr. Praveen Sahu,Gaurav Jaiswal, Vijay Kumar Pandey (2009), research work was
focused over consumer’s perception on investment towards Life Insurance Services. The
objectives of the study were to evaluate the factors underlying consumer perception towards
investment in life insurance policies; and to compare the differences in consumer perception of
male and female consumers. They have done an exploratory research in which the sample
population involved investors of Gwalior region. The technique they used is purposive sampling
technique and their sample size was around 150 respondents. The conclusion of the project is that
the consumer’s perception towards Life Insurance Policies is positive. It developed a positive
mind sets for their investment pattern, in insurance policies. Still some actions are needed for
developing insurance market. The major Factors playing the role in developing consumer’s
perception towards Life Insurance Policies are Consumer Loyalty, Service Quality, Ease of
Procedures, Satisfaction Level, Company Image, and Company-Client Relationship.

Ms.Babita Yadav, Anshuja Tiwari, International Journal of Marketing, Financial

Services & Management Research,(2012), The exploratory and descriptive based study was
selected with an objective to identify those factors which influence customers policy buying
decision and also analyze the preferences of customers while life policy investment decision-
making. Various insurance related factors have been discussed in the paper. The data for the
study has been collected from both primary and secondary sources. The study area is limited
to jabalpur district, of madhya pradesh and sample size is 150 policyholders of lic and
different private life insurers have been selected through a stratified and purposive sampling
method. Researcher has taken few hypothesis based on demographic and insurance based
preference factors and tested them with the help of various statistical tools like chi-square,
correlation and weighted average method. The analyzed data has been presented in the form
of table, bar graphs and pie-charts. Lic is the most accepted and popular brand in life
insurance, the market share of private insurers are gradually increasing with people trust and
better services offered by them are some of the main findings of the study. Insurance
companies should spread more awareness about life insurance, reduction in premium amount
and giving more attention on need based innovative products are some of the suggestions
provided by the researcher. The paper concludes with that demographic factors of the people
play a major and pivotal role in deciding the purchase of life insurance policies.

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Dr. Indira Thakur, Ms. Aparna Nigam, paper from Altious journal of Management,
Commerce and Law, 2012, the study is done with an objective to consider some vital factors
which influence customers policy buying decision and also analyse the preferences of
customers while life policy investment decision-making. The data has been collected from
both primary as well as secondary sources. Researcher has taken few hypothesis based on
demographic and insurance based preference factors. The paper concludes with that
demographic factors of the people play a major and pivotal role in deciding the purchase of
life insurance policies. The study aims to find out the dominant factors influencing
customer’s life insurance buying decision and their preferences at the time of policy buying
decision. In order to conduct this study, 100 policyholders specifically Government College
Professors have been surveyed for a period of thirteen months from 1 March 2014 to 31
March 2015 and questionnaire method was used for data collection. The data was collected
through well drafted questionnaire prepared and testified through Factor Analysis,
Correlation methods for drawing out meaningful conclusions.

A. Lenin Jothi, (2009), this research aims at determining consumers’ attitudes towards
buying life insurance products and to understand their purchase and repurchase intention.
Since knowledge and information about life insurance plays a major role in deciding on the
purchase of a life insurance product, a brief discussion on the impact of various sources of
information has been laid down. This research was conducted in the Delhi and NCR region of
India taking a sample of 500 LIC customers and 500 private sector customers using quota
sampling. The research shows significant difference in repurchase intention between public
(LIC) and private sector customers and LIC customers have shown more positive repurchase
intention than the private sector customers. The results show that the purchase decision–
making is heavily dependent upon the gender of the married customers. This research further
concludes that the agency system is still the major contributor to
the growth of life insurance business in India.

Ms. Kavita Mahajan,(2013), this research paper determines the attributes which influence
consumer decision making process while opting for any tax saving instrument or financial
instruments like life insurance depending upon its flexibility, reliability of brand, liquidity
and many other features. The descriptive survey with the research articles it brings to the fore
that the Life insurance has been preferred as depending on the services offered by the

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insurance companies like number of product, knowledge of customer (via KYC), timely
issuance of policies and after-sales services before and after claim. By understanding
financial services customer can improve business for companies on the basis of better service
received. The insurance firms strive to identify customer requirements and develop strategies
that allow them to meet or beat the service level provided by their competitors

Dr. Ganesh Dash, Tulika Sood, paper from Altious journal of Management, Commerce
and Law, 2008, study, an attempt was made to make the customers aware of various aspects
of a life insurance product and their respective opinions regarding the policy. Various
demographic characteristics of the policy holders e.g. age, gender, income, education,
occupation etc. and their impact on the customers’ perceptions regarding the product were
explored. The various aspects involved in a life insurance product as per their importance to
the policy holders can be outlined as: A tax saving plan; a saving scheme with good return;
financial security for the family; Risk coverage; Save for green patch (Pension), to cover the
risk of living too long; and, to make black money in to white. The study focused on two life
insurers: LIC and HDFC Life Insurance operating in Rajasthan. A sample size of 215 life
insurance customers was planned. The data was collected through primary sources through a
structured questionnaire. Data was analyzed using SPSS 17.0 and MS Excel - 2007. ANOVA
and t-Test were used to examine the differences among various groups of respondents.
Though the study was handicapped by limited sample size (both geographical as well as
periodical), it can be amplified as per the national scenario with some specific modifications.
This study will help the insurance companies and the regulators in developing a better life
insurance product.

Heena Kothari, paper from Altious journal of Management, Commerce and Law, 2014
attempts to identify determinants of life insurance ownership in the country. This resulted
into finding out what factors play very important role in life insurance policies purchase.
Total 100 respondents were there used in this study. Item to total correlation was applied to
check the consistency of the questionnaire. The measures were standardized through
computation of reliability and validity tests. Factor analysis was applied to identify the
underlying factors. The findings of this study provide the individual perception about the
insurance policies.

16
P. Sridevi, paper from Altious journal of Management, Commerce and Law,the paper is
an endeavour to study the buyer behaviour regarding life insurance policies in the rural area
of Perambalur district. Perambalur, being one of the agricultural districts in Tamil nadu was
chosen for the study. The results of the study are based on a field survey of 150 respondents
by using purposive sampling technidque. India is a country where the average selling of life
insurance policies is still lower than many western and Asian countries; with the second
largest population in world the Indian insurance market is looking very prospective to many
multinational and Indian insurance companies for expanding their business and market share.
Before the opening of Indian market for Multinational Insurance Companies, Life Insurance
Corporation (LIC) was the only company which dealt in Life Insurance and after opening of
this sector to other private companies, all the world leaders of life insurance has started their
operation in India. With their world market experience and network, these companies have
offered many good schemes to lure all type of Indian consumers but unfortunately failed to
get the major share of market. Still the LIC is the biggest player in the life insurance market
with approx 65% market share. The study focus on the factors which plays a major role in
buying behavior of consumers towards life insurance policies in Perambalur area.

Evan Mills,2007,Studied the insurance industry is rarely thought of as having much concern
about energy issues. However, the historical involvement by insurers and allied industries in
the development and deployment of familiar technologies such as automobile air bags, fire
prevention/suppression systems, and anti-theft devices, shows that this industry has a long
history of utilizing technology to improve safety and otherwise reduce the likelihood of
losses for which they would otherwise have to pay. We have identified nearly 80 examples of
energy-efficient and renewable energy technologies that offer “loss-prevention” benefits, and
have mapped these opportunities onto the appropriate segments of the very diverse insurance
sector (life, health, property, liability, business interruption, etc.)

Dr. Dipin Mathur, Mr. Ashish Tripathi, 2011,This study is an attempt to explore the
factors that have a high influence on customer’s choice in Ajmer insurance industry, to find
out which factors have more influence on customers and rank these factors according to the
ratings given by the respondents for each factor. Demographic variables play a very
important role in understanding customer’s perception. Thus, the impact of demographic
profiles was also assessed. A survey of 120 respondents were taken and analyzed to
understand the factors that influence the insurance companies’ selection decisions. The study

17
relied on 29 factors using mean and factor analysis and these factors were extracted from the
literature and personal interview. The findings revealed that according to the ranks given the
most important factors that influence customers for selecting a insurance companies are
computerization and online transactions, connectivity with bank , speed and efficiency in
transactions, clear communication and the least important factors are influential marketing
campaign, free gifts for customers, peer group impression etc. . In addition, factor analysis
was used over 29 factors and the result showed that there were 9 key factors, which were
determined by clubbing the similar variables, which majorly consider being most influencing
factors for customer’s choice of a insurance companies.

18
 CHAPTER 3
RESEARCH METHODLOGY
3.1 TYPE OF RESEARCH
The type of research is a descriptive research where it is used to describe
characteristics of a population or phenomenon being studied. The primary data is used for
analysis. A well-structured questionnaire is framed and given to customers of IDBI
FEDERAL, and this data is been further analysed and the factors that influence the buying
behaviour of customers is been found.
3.2 OBJECTIVES
 To study and analyze the impact of various demographic factors on customers life
insurance investment decision.
 To identify the customer preference on various features of life insurance.
 To identify the factors that influence the customers to invest in life insurance
3.3 DATA AND SOURCE OF DATA
Data Collection Methods
Primary Data Collection Method
Primary sources of data are the data which needs the personal efforts of collect it and
which are not readily available. Primary source of data are the other type of source
through which the data was collected.
Questionnaires: It is the set of questions on a sheet of paper was being given to the
respondents to fill it, bases on which the data was interpreted.
Secondary Data Collection Method
Secondary sources are the other important sources through which the data was
collected. These are the readily available sources of the data where one had need not put
much effort to collected, because it is already been collected and part in an elderly
manner by some researcher, experts and special.
The secondary sources helpful for the study were

 Text books like marketing management research methodology

 Advertisement and sales promotion etc.
 Internet
3.4 TIME PERIOD COVERED
The time period of the study is 60 days

19
3.5 POPULATION AND SAMPLE SIZE
The population focused is customers of IDBI FEDERAL in Coimbatore branch and
the sample size taken was 130.
3.6 SAMPLING TECHNIQUE
The sampling technique used here is simple random sampling.
3.7 STATISTICAL TOOL USED
The statistical tools used in this study are:
 Percentage analysis
 Paired t- test
 Descriptive statistics
 Chi square
3.8 LIMITATIONS OF THE STUDY
The limitation of the study is that the population covered is only from the customers
of Coimbatore branch of IDBI FEDERAL CO.LTD. Thus this study cannot be generalized to
other geographic regions.

20
 CHAPTER 4

ANALYSIS & INTERPRETATION

4.1 Percentage Analysis

Frequency Table

4.1 Table showing the frequency of respondents on the basis of Gender

No. of
Gender respondents Percent

Male 89 68.5

Female 41 31.5

Total 130 100.0

4.1 Gender

Gender
Female
32%

Male
Male Female
68%

Figure 4.1 Figure showing frequency of respondents on the basis of Gender

Inference
The above table shows the gender details of respondents and large percentage of
people are Male which is almost 69% and 32% of the respondents are female who are found
to be the customers of IDBI FEDERAL

21
4. 2 Table showing the frequency of respondents on the basis of Age

Basis of No. of
age respondents Percent

<20 3 2.3

21-30 37 28.5

31-40 31 23.8

41-50 41 31.5

51-60 18 13.8

Total 130 100.0

4.2 Age

<20
Age
2%

51-60
14% <20
21-30
28% 21-30
31-40
41-50 41-50
32%
51-60
31-40
24%

Figure 4.2 Figure showing frequency of respondents on the basis of Age

Inference
The above table shows the age details of respondents and 32% of people are under the
age group 41-50 who are found to hold the insurance of IDBI FEDERAL

22
4.3 Table showing the frequency of respondents on the basis of Education

Basis of education No. of

respondents Percent

<12th 16 12.3

Under graduate 10 7.7

Post graduate 52 40.0

Doctrate 52 40.0

Total 130 100.0

4.3Education

Education
<12th Under graduate
12% 8%

<12th
Doctrate
40% Under graduate
Post graduate
Post graduate Doctrate
40%

Figure 4.3 Figure showing frequency of respondents on the basis of Education

Inference
The above table shows the education details of respondents and 40% of people are
found to hold the degree of post graduate and doctorate.

23
4.4 Table showing the frequency of respondents on the basis of marital status

Marital No. of
status respondents Percent

Married 74 56.9

Unmarried 56 43.1

Total 130 100.0

4.4 Marital Status

Marital status

Unmarried Married
43%
Married Unmarried
57%

Figure 4.4 Figure showing frequency of respondents on the basis of Marital status
Inference
The above table shows the marital status details of respondents and 56% percentage
of people are married and are found to be the customers of IDBI FEDERAL

24
4.5 Table showing the frequency of respondents on the basis of Type of Family

Type of No. of
family respondents Percent

Nucleus 6 4.6

Nuclear 83 63.8

Joint 41 31.5

Total 130 100.0

4.5 Type of Family

Nucleus
5% Type Of Family

Joint
31%
Nucleus
Nuclear
Joint
Nuclear
64%

Figure 4.1.5 Figure showing frequency of respondents on the basis of Type of family
Inference
The above table shows the details of respondents and 64% of people are nuclear
family types who are found to be the customers of IDBI FEDERAL.

25
4.6 Table showing the frequency of respondents on the basis of Place of residence

Place of No. of
residence respondents Percent

Rural 61 46.9

Urban 69 53.1

Total 130 100.0

4.6 Place of residence

Place of Residence

Rural Rural
47%
Urban Urban
53%

Figure 4.1.6 Figure showing frequency of respondents on the place of residence

Inference
The above table shows that the respondents are from urban area who is found to be
53%.

26
4.7 Table showing the frequency of respondents on the basis of Total number of policies
bought

Total no. of No. of

policies bought respondents Percent

One 15 11.5

Two 45 34.6

More than two 70 53.8

Total 130 100.0

4.7 Total number of policies bought

Total no. of policies bought

One
11%

One
Two
More than two Two
54% 35% More than two

Figure 4.7 Figure showing frequency of respondents on the basis of Total number of policies
bought
Inference
The above table shows that the customers are found to have more than 2 policies and
their percentage is 53%.

27
4.8 Table showing the frequency of respondents on the basis of Mode of Payment

Mode of No. of
payment respondents Percent

Monthly 12 9.2

Quaterly 54 41.5

Half yearly 32 24.6

Annual 32 24.6

Total 130 100.0

4.8 Mode of Payment

Mode of payment
Monthly
9%

Annual
25% Monthly
Quaterly
Half yearly
Quaterly
Half yearly
41% Annual
25%

Figure 4.8 Figure showing frequency of respondents on the basis of Mode of Payment
Inference
The above table shows that the majority of customers are found to pay their mode of
payment in the quarterly basis.

28
4.9 Table showing the frequency of respondents on the basis of Occupation

No. of
occupation respondents Percent

Student 22 16.9

Service 55 42.3

Self employed 30 23.1

Salaried 12 9.2

Professional 11 8.5

Total 130 100.0

4.9 Occupation

Professional
9%
Occupation
Salaried Student
9% 17%
Student
Service
Self employed
Self
employed Service Salaried
23% 42%
Professional

Figure 4.9 Figure showing frequency of respondents on the basis of occupation

Inference
The above table shows that the majority of customers are found to be working in
service sector where their percentage is about 42% and the least customers are working
profession sector.

29
4.10 Table showing the frequency of respondents on the basis of Annual Income

Annual Income No. of

respondents Percent

1 Lac – 3 Lac 20 15.4

3- 5 Lac 54 41.5

5 – 10 Lac 26 20.0

Above 10 lac 30 23.1

Total 130 100.0

4.10 Annual Income

Annual Income

1 Lac – 3
Lac
Above 10 lac 15% 1 Lac – 3 Lac
23%
3- 5 Lac
5 – 10 Lac
5 – 10 Lac
20% 3- 5 Lac Above 10 lac
42%

Figure 4.10 Figure showing frequency of respondents on the basis of annual income
Inference
The above table shows that 42% of customers are found to fall under the salary scale
of 3-5 lakh per annum.

30
4.11 Table showing the frequency of respondents on the basis of Percentage of monthly
salary saved

Percentage of
monthly salary No. of
saved respondents Percent

Up to 10% 62 45.4

11 – 20 % 34 23.8

21 – 30 % 20 13.8

Above 30 % 14 7.7

Total 130 100.0

4.11 Percentage of monthly salary saved

Monthly salary saved

Above 30 %
11%

Up to 10%
21 – 30 %
15% Up to 10% 11 – 20 %
48% 21 – 30 %

11 – 20 % Above 30 %
26%

Figure 4.11 Figure showing frequency of respondents on the basis of Percentage of monthly
salary saved
Inference
The above table shows that 46% of customers are saving their monthly salary up to
10%.

31
4.12 Table showing the frequency of respondents on the basis of Short term investment
pattern

Short term
investment No. of
pattern respondents Percent

Rank 1 39 30.0

Rank 2 56 43.1

Rank 3 35 26.9

Total 130 100.0

4.12 Short term investment pattern

Short term investment pattern

Rank 3 Rank 1
27% 30% Rank 1
Rank 2
Rank 3

Rank 2
43%

Figure 4.12 Figure showing frequency of respondents on the basis of short term investment
pattern
Inference
The above table shows that 43% of customers are found to prefer short term
investment pattern.

32
4.13 Table showing the frequency of respondents on the basis of Medium term
investment plan

Medium term No. of

investment plan respondents Percent

Rank 1 54 41.5

Rank 2 35 26.9

Rank 3 41 31.5

Total 130 100.0

4.1.13 Medium term investment plan

Medium investment pattern

Rank 3
32% Rank 1 Rank 1
41%
Rank 2
Rank 3

Rank 2
27%

Figure 4.13 Figure showing frequency of respondents on the basis of medium term
investment pattern
Inference
The above table shows that 42% of customers are found to prefer medium term
investment pattern.

33
4.14 Table showing the frequency of respondents on the basis of Long term investment
plan

Long term
investment No. of
plan respondents Percent

Rank 1 13 10.0

Rank 2 81 62.3

Rank 3 36 27.7

Total 130 100.0

4.1.14 Long term investment plan

Long term investment patern

Rank 1
Rank 3 10%
28%
Rank 1
Rank 2
Rank 3
Rank 2
62%

Figure 4.14 Figure showing frequency of respondents on the basis of long term investment
pattern
Inference
The above table shows that 62% of customers are found to prefer long term
investment pattern.

34
4.15 Table showing the frequency of respondents on the basis of Reasons for insuring
with IDBI FEDERAL

Reasons for insuring No. of

with IDBI FEDERAL respondents Percent

Company Profile 8 6.2

Brand 44 33.8

Grievances handling 30 23.1

Public sector 23 17.7

All of the above 13 10.0

Delay in claims 12 9.2

Total 130 100.0

4.15 Reasons for insuring with IDBI FEDERAL

Reason for insuring with IDBI

Delay in
claims FEDERAL
9% Company
Profile
All of the above 6%
10% Company Profile
Brand
Brand Grievances handling
Public
34%
sector Public sector
18% All of the above

Grievances Delay in claims

handling
23%

Figure 4.15 Figure showing frequency of respondents on the basis of Reasons for insuring
with IDBI FEDERAL
Inference
The above table shows that the majority of customers (34%) are found to insure with
IDBI FEDERAL due to the brand that the company holds.

35
4.16 Table showing the frequency of respondents on the basis of Policies subscribed
with IDBI

No. of
Policies respondents Percent

Whole life 16 12.3

Endowment plus 24 18.5

Money back 40 30.8

Pension fund 21 16.2

ULIP 19 14.6

Others 10 7.7

Total 130 100.0

4.16 Policies subscribed with IDBI

Poilicies subcribed with IDBI

Others FEDERAL
8% Whole life
ULIP Whole life
12%
15% Endowment plus
Endowment
plus Money back
Pension fund 18% Pension fund
16%
ULIP
Money back
Others
31%

Figure 4.16 Figure showing frequency of respondents on the basis of Policies subscribed with
IDBI
Inference
The above table shows that the 31% of customers are found to be subscribed with the
money back policy in the IDBI FEDERAL.

36
4.17 Table showing the frequency of respondents on the basis of Periodicity of Policy

Periodicity of No. of
policy respondents Percent

5 years 11 8.5

5 – 15 Years 63 48.5

5 – 25 Years 31 23.8

Above 25 Years 25 19.2

Total 130 100.0

4.17 Periodicity of Policy

Periodicity of policy
5 years
9%

Above 25
Years
5 years
19%
5 – 15 Years
5 – 25 Years 5 – 25 Years
5 – 15 Years
24%
48% Above 25 Years

Figure 4.17 Figure showing frequency of respondents on the basis of Periodicity of Policy
Inference
The above table shows that the 49% of customers are found to be most likely with 5-
15 years of periodicity of policy.

37
4.2 DESCRIPTIVE STATISTICS

4.2.1 Factors that influences the investment in life insurance

Factors N Mean Std. Deviation

tax benefit 130 2.92 1.093
risk coverage and saving 130 2.58 0.814
security with high benefit 130 2.97 1.063
insurance services 130 2.91 0.992
premium charges 130 2.65 1.166
4.18 Factors that influences the investment in life insurance

Inference

From the above table the mean value of the level of importance towards risk coverage
and saving is 2.58 which indicates that the customers rate that the factor is neither important
nor unimportant and the level of importance towards security with high benefit is 2.97 which
indicates it influences the investment in life insurance.

4.2.2 Most attractive feature of investment policy

Std.
Features of investment policy N Mean
Deviation
money back guarantee policy 130 3 0.988
large risk coverage policy 130 2.68 0.925
easy access to agents 130 3.55 1.252
low premium 130 3.52 1.021
company’s reputation 130 3.34 1.172
4.19 Most attractive feature of investment policy

Inference

From the above table the mean value of the level of importance towards large risk
coverage policy is 2.68 which indicate that the customers rate that the factor is neither
important nor unimportant and the level of importance towards easy access to agents is
important which indicates as the attractive feature of investment policy that the customer
expect from life insurance.

38
4.2.3 Factors that has influenced to invest in IDBI

Factors influenced to invest in Std.

N Mean
IDBI Deviation
tax benefit 130 2.71 0.83

risk coverage and saving 130 3.01 0.968

security with high benefit 130 2.7 1.385

insurance services 130 2.7 1.385

premium charges 130 3.1 1.174

4.20 Factors that has influenced to invest in IDBI

Inference

From the above table the mean value of the level of acceptance towards insurance
services and level of acceptance towards security with high benefit is 2.7 which indicate that
the customers rate that the factor as neutral and mean value of level of acceptance towards
risk coverage and saving is high with the value 3.01 which indicates that it has influenced to
invest in IDBI

4.2.4 Reasons that has driven to invest in IDBI

Reasons that has influenced to Std.

N Mean
invest in IDBI Deviation

money back guarantee policy 130 3.07 1.215

large risk coverage policy 130 3.23 1.191

easy access to agents 130 3.35 0.955

low premium 130 3.49 1.265
company’s reputation 130 3.37 0.989
4.21 Reasons that has driven to invest in IDBI

39
Inference

From the above table the mean value of the level of acceptance towards money back
guarantee policy 3.07 which indicates that the customers rate that the factor as neutral and the
level of acceptance towards low premium is 3.49 which indicates that the customers rate the
factor to agree that has driven to invest in IDBI.

4.3 PAIRED T- TEST

4.3.1 Paired T-test between the factors influencing customers to invest in life insurance
to that of the factors influenced the customers to invest in IDBI life insurance

H0: There is no significant difference between the means of the factors that influences the
customers to invest in life insurance and the factors that have influenced the customers to
invest in IDBI FEDERAL life insurance.

H1: There is a significant difference between the means of the factors that influences the
customers to invest in life insurance and the factors that have influenced the customers to
invest in IDBI FEDERAL life insurance.

Paired Differences
95% Confidence Sig.
Std.
Std. Interval of the t df (2-
FACTORS Mean Error
Deviation Difference tailed)
Mean
Lower Upper
Level of importance
Pair towards tax benefit -
0.208 1.249 0.11 -0.009 0.425 1.895 129 0.06
1 Level of acceptance
towards tax benefit
Level of importance
towards risk coverage
Pair
and saving - Level of -0.377 1.228 0.108 -0.59 -0.164 -3.5 129 0.001
2
acceptance towards risk
coverage and saving
Level of importance
towards security with
Pair
high benefit - Level of 0.269 1.598 0.14 -0.008 0.547 1.92 129 0.057
3
acceptance towards
security with high benefit

40
 Level of importance
towards insurance
Pair
services - Level of 0.169 1.515 0.133 -0.094 0.432 1.273 129 0.205
4
acceptance towards
insurance services
Level of importance
towards premium
Pair
charges - Level of -0.446 1.905 0.167 -0.777 -0.116 -2.67 129 0.009
5
acceptance towards
premium charges

4.22 Paired sample test

INFERENCE

From the table 4.22, it is found that, we can conclude from the table that sig value of risk
coverage and savings is 0.001, has no significant difference between the means of the factors
that influences the customers to invest in life insurance and the factors that have influenced
the customers to invest in IDBI FEDERAL life insurance.

4.3.2 Paired T-test between the most attractive features of investment

policy expected from life insurance and the feature that has driven to invest
with IDBI life insurance

H0: There is no significant difference between the means of the most attractive features of
investment policy expected from life insurance and the feature that has driven to invest with
IDBI life insurance

H1: There is a significant difference between the means of the most attractive features of
investment policy expected from life insurance and the feature that has driven to invest with
IDBI life insurance.

41
 Paired Differences
95%
Sig.
Std. Confidence
Std. t df (2-
FACTORS Mean Error Interval of the
Deviation tailed)
Mean Difference
Lower Upper
Level of importance
towards money back
- -
Pair 1 guarantee policy - Level of 1.678 0.147 -0.368 0.214 129 0.602
0.077 0.523
acceptance towards money
back guarantee policy
Level of importance
towards large risk coverage
- - -
Pair 2 policy - Level of 1.652 0.145 -0.841 129 0
0.554 0.267 3.822
acceptance towards large
risk coverage policy
Level of importance
towards easy access to
Pair 3 agents - Level of 0.2 1.727 0.151 -0.1 0.5 1.32 129 0.189
acceptance towards easy
access to agents
Level of importance
towards low premium -
Pair 4 0 1.712 0.15 -0.297 0.297 0 129 1
Level of acceptance
towards low premium
Level of importance
towards company’s
- -
Pair 5 reputation - Level of 1.823 0.16 -0.37 0.262 129 0.737
0.054 0.337
acceptance towards
company’s reputation

4.23 Paired sample test

INFERENCE

From the table 4.23, we can conclude from the table that sig value of large risk coverage is
0.000 which has no significant difference between the means of the most attractive features
of investment policy expected from life insurance and the feature that has driven to invest
with IDBI life insurance

42
4.4 Chi Square
4.4.1 Chi square for age and policy subscribed in IDBI
H0: There exists no significant association between age and policy subscribed with IDBI
H1: There exists significant association between age and policy subscribed with IDBI

Policies subscribed with IDBI Total

Whole Endowment Money Pension ULIP Others
life plus back fund
Count 0 0 0 3 0 0 3
% within Age 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0%
% within
<20 Policies
0.0% 0.0% 0.0% 14.3% 0.0% 0.0% 2.3%
subscribed
with IDBI
% of Total 0.0% 0.0% 0.0% 2.3% 0.0% 0.0% 2.3%
Count 6 6 17 0 5 3 37
% within Age 16.2% 16.2% 45.9% 0.0% 13.5% 8.1% 100.0%
% within
21-
Policies
30 37.5% 25.0% 42.5% 0.0% 26.3% 30.0% 28.5%
Age subscribed
with IDBI
% of Total 4.6% 4.6% 13.1% 0.0% 3.8% 2.3% 28.5%
Count 3 2 3 14 4 5 31
% within Age 9.7% 6.5% 9.7% 45.2% 12.9% 16.1% 100.0%
% within
31-
Policies
40 18.8% 8.3% 7.5% 66.7% 21.1% 50.0% 23.8%
subscribed
with IDBI
% of Total 2.3% 1.5% 2.3% 10.8% 3.1% 3.8% 23.8%
41- Count 5 14 13 0 7 2 41
50 % within Age 12.2% 34.1% 31.7% 0.0% 17.1% 4.9% 100.0%

43
 % within
Policies
31.2% 58.3% 32.5% 0.0% 36.8% 20.0% 31.5%
subscribed
with IDBI
% of Total 3.8% 10.8% 10.0% 0.0% 5.4% 1.5% 31.5%
Count 2 2 7 4 3 0 18
% within Age 11.1% 11.1% 38.9% 22.2% 16.7% 0.0% 100.0%
% within
51-
Policies
60 12.5% 8.3% 17.5% 19.0% 15.8% 0.0% 13.8%
subscribed
with IDBI
% of Total 1.5% 1.5% 5.4% 3.1% 2.3% 0.0% 13.8%

4.24 Age and Policy Subscribed In IDBI FEDERAL

Value df Asymp. Sig. (2-

sided)
Pearson Chi-Square 66.544a 20 .000
Likelihood Ratio 70.901 20 .000
Linear-by-Linear
.427 1 .513
Association

4.25 Chi-Square Tests for Age and Policy Subscribed In IDBI FEDERAL

Inference
From the table 4.24, 4.25, Pearson chi square =0.000<0.05, Therefore, there exists a
significant association between age and policy subscribed with IDBI.

4.4.2 Chi square for annual income and percentage of monthly salary savings
H0: There exists no significant association between annual income and percentage of
monthly salary savings
H1: There exists significant association between annual income and percentage of monthly
salary savings

44
 Percentage of monthly salary saved Total
Up to 11 – 21 – Above 5
10% 20 % 30 % 30 %
Count 8 3 5 4 0 20
% within Annual
40.0% 15.0% 25.0% 20.0% 0.0% 100.0%
Income
1 Lac – % within
3 Lac Percentage of
13.6% 9.7% 27.8% 40.0% 0.0% 15.4%
monthly salary
saved
% of Total 6.2% 2.3% 3.8% 3.1% 0.0% 15.4%
Count 25 15 0 2 12 54
% within Annual
46.3% 27.8% 0.0% 3.7% 22.2% 100.0%
Income
3- 5 % within
Lac Percentage of
Annual 42.4% 48.4% 0.0% 20.0% 100.0% 41.5%
monthly salary
Income
saved
% of Total 19.2% 11.5% 0.0% 1.5% 9.2% 41.5%
Count 10 6 10 0 0 26
% within Annual
38.5% 23.1% 38.5% 0.0% 0.0% 100.0%
Income
5 – 10 % within
Lac Percentage of
16.9% 19.4% 55.6% 0.0% 0.0% 20.0%
monthly salary
saved
% of Total 7.7% 4.6% 7.7% 0.0% 0.0% 20.0%
Count 16 7 3 4 0 30
Above
% within Annual
10 lac 53.3% 23.3% 10.0% 13.3% 0.0% 100.0%
Income

45
 % within
Percentage of
27.1% 22.6% 16.7% 40.0% 0.0% 23.1%
monthly salary
saved
% of Total 12.3% 5.4% 2.3% 3.1% 0.0% 23.1%
4.26 Cross tabulation Annual Income and Percentage of monthly salary saved

Value df Asymp. Sig.

(2-sided)
Pearson Chi-Square 48.003 12 .000
Likelihood Ratio 56.522 12 .000
Linear-by-Linear
2.230 1 .135
Association

4.27 Chi-Square Tests for annual income and percentage of monthly salary saved
Inference
From the table 4.26, 4.27, Pearson chi square =0.000<0. Therefore, there exists significant
association between annual income and percentage of monthly salary savings
4.4.3 Chi square for gender and policy subscribed with IDBI
H0: There exists no significant association between gender and policy subscribed with IDBI
H1: There exists significant association between gender and policy subscribed with IDBI

Policies subscribed with IDBI Total

Whole Endow Money Pension ULIP Others
life ment back fund
plus
Count 12 17 28 15 9 8 89
Gender Male % within 100.0
13.5% 19.1% 31.5% 16.9% 10.1% 9.0%
Gender %

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 % within
Policies
subscribe 75.0% 70.8% 70.0% 71.4% 47.4% 80.0% 68.5%
d with
IDBI
% of
9.2% 13.1% 21.5% 11.5% 6.9% 6.2% 68.5%
Total
Count 4 7 12 6 10 2 41
% within 100.0
9.8% 17.1% 29.3% 14.6% 24.4% 4.9%
Gender %
% within
Policies
Female
subscribe 25.0% 29.2% 30.0% 28.6% 52.6% 20.0% 31.5%
d with
IDBI
% of
3.1% 5.4% 9.2% 4.6% 7.7% 1.5% 31.5%
Total

4.28 Cross tabulation Gender and Policies subscribed with IDBI

Value df Asymp. Sig.

(2-sided)
Pearson Chi-Square 5.041a 5 .411
Likelihood Ratio 4.808 5 .440
Linear-by-Linear
.749 1 .387
Association

4.29 Chi-Square Tests Gender and Policies subscribed with IDBI

Inference
From the table 4.4.5, 4.4.6, Pearson chi square =0.44>0.05, Therefore, there do not exists
significant relationship between gender and policy subscribed in IDBI.
4.4.4 Chi square for occupation and mode of payment
H0: There exists no significant association between occupation and mode of payment

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H1: There exists significant association between occupation and mode of payment
Mode of Payment Total
Monthly Quaterly Half Annual
yearly
Count 6 11 0 5 22
% within
27.3% 50.0% 0.0% 22.7% 100.0%
Occupation
Student
% within Mode
50.0% 20.4% 0.0% 15.6% 16.9%
of Payment
% of Total 4.6% 8.5% 0.0% 3.8% 16.9%
Count 6 32 6 11 55
% within
10.9% 58.2% 10.9% 20.0% 100.0%
Occupation
Service
% within Mode
50.0% 59.3% 18.8% 34.4% 42.3%
of Payment
% of Total 4.6% 24.6% 4.6% 8.5% 42.3%
Count 0 11 14 5 30
Occupation % within
0.0% 36.7% 46.7% 16.7% 100.0%
Self Occupation
employed % within Mode
0.0% 20.4% 43.8% 15.6% 23.1%
of Payment
% of Total 0.0% 8.5% 10.8% 3.8% 23.1%
Count 0 0 6 6 12
% within
0.0% 0.0% 50.0% 50.0% 100.0%
Occupation
Salaried
% within Mode
0.0% 0.0% 18.8% 18.8% 9.2%
of Payment
% of Total 0.0% 0.0% 4.6% 4.6% 9.2%
Count 0 0 6 5 11
Professional % within
0.0% 0.0% 54.5% 45.5% 100.0%
Occupation

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 % within Mode
0.0% 0.0% 18.8% 15.6% 8.5%
of Payment
% of Total 0.0% 0.0% 4.6% 3.8% 8.5%
4.30 Cross tabulation Occupation and Mode of Payment
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 55.634a 12 .000
Likelihood Ratio 69.473 12 .000
Linear-by-Linear
25.299 1 .000
Association

4.31 Chi-Square Tests

Inference
From the table 4.30, 4.31, Pearson chi square =0.00<0.05, Therefore, there exists significant
association between occupation and mode of payment.

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 CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
 The gender details are found to be 68% of male respondents and 32 % females
respondents who are said to be the customers of IDBI federal.
 32% of people under the age group 41-50 who are found to hold the insurance of
IDBI FEDERAL maximum
 56% percentage of people are married and are found to be the customers of IDBI
FEDERAL
 64% of people are nuclear family types who are found to be the customers of IDBI
FEDERAL
 53 % of respondents are found to be from urban areas.
 53% of customers have more than 2 policies
 Majority of customers are found to pay their mode of payment in the quarterly basis.
 That the majority of customers are found to be working in service sector where their
percentage is about 42% and the least customers are working profession sector.
 42% of customers are found to fall under the salary scale of 3-5 lakh per annum.
 46% of customers are saving their monthly salary up to 10%.
 42% of customers are found to prefer medium term investment pattern.
 62% of customers are found to prefer long term investment pattern.
 The majority of customers (34%) are found to insure with IDBI FEDERAL due to the
brand that the company holds.
 31% of customers are found to be subscribed with the money back policy in the IDBI
FEDERAL.
 49% of customers are found to be most likely with 5-15 years of periodicity of policy.
 Level of importance towards risk coverage and saving is 2.58 which indicates that the
customers rate that the factor is neither important nor unimportant that influences the
investment in life insurance.
 Large risk coverage is 0.000 which has a significant difference between the means of
the most attractive features of investment policy expected from life insurance and the
feature that has driven to invest with IDBI life insurance
 There exists a significant association between age and policy subscribed with IDBI.

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 There exists significant association between annual income and percentage of
monthly salary savings
 There do not exist significant association between gender and policy subscribed in
IDBI.
 There exists significant association between occupation and mode of payment
SUGGESTIONS
 The female gender do not have proper awareness about the insurance sector so the
company can do some sort of awareness programme to ensure that they also turn into
customers.
 The company concentrates more on the old age people at the present scenario. So they
can take steps to attract the youths so that it can benefit them and also the company.
 The rural area people are less in number who have insured for life insurance, thus
proper purchase awareness can be made to those people
CONCLUSION
With this study the customers buying behaviour can be analysed and it can
help to improvise in the areas like perception of the products offered by IDBI, This
study helps the company to improvise and probably increase its market size by
concentrating on female and rural area people by giving awareness about the
insurance products and also on the aspect of attracting the youths as they are more
into old people. When they concentrate on youths they can drastically increase their
market size and also the features that made to attract the customers towards the life
insurance in IDBI can also be understood by the company and manage those features
and provide the best service to the customers.

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 BIBLIOGRAPHY
Reference
 A.Lenin Jothi “A study on purchase decision-making towards life insurance products”
 Babita Yadav,.Anshuja Tiwari “A study on factors affecting customers investment
towards life insurance policies”.
 CR Kothari, “research methodology methods and techniques”, Wishwa Prakashan,
New Delhi, second edition, 2001
 Ganesh Dash, “Why should one invest in a life insurance product? An empirical
study”.
 Kavita Mahajan “Analysing consumer decision making process in life insurance
services”.
 Kotler Philip, “marketing management”, a south Asian perspective, Pearson
education, 13th edition, 2009.
 Indira Thakur, Aparna Nigam, “Study of factors affecting customers’ investment
towards life insurance policies”.
 Praveen Sahu “A study of buying behaviour of Consumers towards life insurance
policies”.
WEBSITES
 http://www.idbifederal.com/ABOUTUS/Pages/Company-Profile.aspx
 http://www.idbifederal.com/Products/Pages/default.aspx
 http://stattrek.com/chi-square-test/goodness-of-fit.aspx?Tutorial=AP
 https://www.coursehero.com/file/p3l13cg/1-Simple-percentage-analysis-The-
percentage-method-is-used-for-comparing/
 http://www.statisticssolutions.com/chi-square-2
 https://statistics.laerd.com/spss-tutorials/dependent-t-test-using-spss-statistics.php
 http://dissertation.laerd.com/purposive-sampling.php

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