SUMMER TRAINING REPORT ON

Customer satisfaction in insurance industry

Undertaken at

IDBI FEDERAL LIFE INSURANCE COMPANY LTD.

Submitted in partial of the requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT &

INFORMATION TECHNOLOGY,DELHI

Under the Guidance of: Submitted by:

Mr.Manas Das Himani kaushal

Enroll.no.-01590201815

Session 2015-2018
 STUDENT DECLARATION

This Project Report is submitted at SRI GURU TEGH NAHADUR INSITUTE OF

MANAGEMENT & INFORMATION TECHNOLOGY towards “SUMMER INTERNSHIP
ON IDBI CUSTOMER SATISFACTION”for the partial fulfillment of degree of
Bachelor of Business Administration (BBA) in banking and insurance.

I, hereby, declare that this is the original work done and the information provided
in the Project Report is authentic and not copied from anywhere and neither
submitted in any other degree / diploma programme.

........................................

Place: DELHI Signature of the Scholar

Date: …………… Himani kaushal

Enroll.no.-01590201815
 CERTIFICATE

This is to certify that HARDEP SINGH Enrollment no.05990201713, BBA in

banking and insurance

Student of Sri Guru Tegh Bahadur Institute of Management and Information

Technology has done summer training project work on “customer satisfaction in

Insurance industry” under the guidance of Mrs.ADITI SDHANA.

…………………………………...
Signature of Director
PROF. (DR.) Navneet Kaur
…………………………………..
Signature of Project Incharge
Ms. INDERPREET KAUR
…………………………………..
Signature of Guide
MRS. ADITI SDHANA
…………………………………...

Signature of Scholar

Himani kaushal
 ACKNOWLEDGEMENT

Co-operation and building up of moral are the essence of success. These are two
factors that go a long way in achieving it. It is a Herculean task, which lacks these
two determinants of success. Summer training was an exposure to corporate
environment. It was an opportunity and great pleasure for me to be in such an
environment and having interaction with concerned people.

I am highly obliged to Mrs. ADITI SDHANA for their guidance and help which
had made it possible for me to complete my project work successfully.

I also wish to pay my sincere regards to all my respected teachers who helped me
build a concrete platform before sending me for training so that I can land out
firmly in all respects.

.....................................

Place: DELHI Signature of the Scholar

Date: .................. Himani kaushal

Enroll.no.-01590201815
 TABLE OF CONTENTS

S.No Topics Page Number

1 Certificate
2 Student Declaration ii
3 Acknowledgement Iii
4 Executive Summary v
CHAPTER- I: INTRODUCTION 6-26
CHAPTER-II:REVIEW OF LITERATURE 27-29
CHAPTER-III:RESEARCH METHODOLOGY 30-31
CHAPTER-IV:DATA 32-42
REDUCTION,PRESENTATION &ANALYSIS
CHAPTER-V:DATA INTERPRETATION 43
CHAPTER-VI: SUGGESTIONS AND 44-45
CONCLUSION
CHAPTER-VII: BIBLIOGRAPHY 46-47
CHAPTER- VIII: APPENDICES 48-53

QUESTIONNAIRE

EXECUTIVE SUMMARY
Someone has greatly said that practical knowledge is far better than classroom
teaching. During this project I fully realized this and come to know about the
present real world of Insurance sector. It includes all the activities involved in
providing insurance products to the final customers. I am pleased to know about
the consumers’ wants and competitors activities in the real world of Insurance.

The subject of my study is to analyze the present insurance sector and products
offered by IDBI Federal insurance company by applying various tools like cold
calling and through direct interaction with customer’s. I have also done research on
the growth of private life insurance companies in the last five years.

The report contains first of all brief introduction about the company. Then it
contains the current status of private insurance companies and foreign insurance
companies in India.

I also put forward recommendations of the consumers and conclusions that will
help IDBI Federal insurance company to provide consumer satisfactory services in
the insurance sector.
 CHAPTER-I

INTRODUCTION

ABOUT INSURANCE

Life is full of risks. Being a social animal and risk reverse, man always tries to
reduce risk. An age-old method of sharing of risk through economic cooperation
led to the development of the concept of “insurance”.

Insurance may be described as a social device to reduce or eliminate risk of loss to

life and property. Insurance is collective bearing of risk. The risks, which can be
insured against, include fire, perils of sea, death, accidents and burglary.

Insurance can be defined as a legal contract between two parties where one party
called insurer undertakes to pay a fixed amount of money on happening of a
particular event which may be certain or uncertain. The other party called insured
pays in exchange a fixed sum known as `premium. The insurer and the insured are
also known as “Assuror and Assured”.

Insurance is a social device where uncertain risks of individuals may be combined

in a group and thus made more certain - small periodic contributions by the
individuals provide a found out of which those who suffer losses may be
reimbursed. In addition to being a means to protect oneself, the insurance Industry
is an efficient conduit for the saving of people to be channeled towards economic
growth. In India, the Insurance Industry7 is more than 150 years old. Today, it is
monopolized by two PSU's in their respective fields of life and General Insurance.
However, with the successful passage IRDA Bill through both houses of
parliament in December 1999 the sector has been opened up to private players.
This will provided much. Needed impetus to the Industry and will improve the
quality of service and products and will also increase employment opportunities.
There are still some issues their need to be sorted out, particularly with regard to
the status of intermediaries as envisaged by the Insurance Regulatory Authority.

CUSTOMER SATISFACTION

'Customer satisfaction is a term frequently used in marketing. It is a measure of

how products and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its products,
or its services (ratings) exceeds specified satisfaction goals."In a survey of nearly
200 senior marketing managers, 71 percent responded that they found a customer
satisfaction metric very useful in managing and monitoring their businesses.

It is seen as a key performance indicator within business and is often part of

a Balanced Scorecard. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects.

They focus employees on the importance of fulfilling customers' expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales
and profitability.... These metrics quantify an important dynamic. When a brand
has loyal customers, it gains positive word-of-mouth marketing, which is both free
and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction.

To be able do this, firms need reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or
service has met or exceeded expectations. Thus, expectations are a key factor
behind satisfaction. When customers have high expectations and the reality falls
short, they will be disappointed and will likely rate their experience as less than
satisfying. For this reason, a luxury resort, for example, might receive a lower
satisfaction rating than a budget motel—even though its facilities and service
would be deemed superior in 'absolute' terms."

The importance of customer satisfaction diminishes when a firm has

increased bargaining power. For example, cell phone plan providers, such
as AT&T and Verizon, participate in an industry that is an oligopoly, where only a
few suppliers of a certain product or service exist. As such, many cell phone plan
contracts have a lot of fine print with provisions that they would never get away if
there were, say, 100 cell phone plan providers, because customer satisfaction
would be far too low, and customers would easily have the option of leaving for a
better contract offer.

There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms.

Purpose
A business ideally is continually seeking feedback to improve customer
satisfaction.

"Customer satisfaction hi provides a leading indicator of consumer purchase

intentions and loyalty.”"Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold:"

"Within organizations, the collection, analysis and dissemination of these data send
a message about the importance of tending to customers and ensuring that they
have a positive experience with with the company's goods and services.

"Although sales or market share can indicate how well a firm is

performing currently, satisfaction is perhaps the best indicator of how likely it is
that the firm’s customers will make further purchases in the future. Much research
has focused on the relationship between customer satisfaction and retention.
Studies indicate that the ramifications of satisfaction are most strongly realized at
the extremes."

On a five-point scale, "individuals who rate their satisfaction level as '5' are likely
to become return customers and might even evangelize for the firm. (A second
important metric related to satisfaction is willingness to recommend. This metric is
defined as "The percentage of surveyed customers who indicate that they would
recommend a brand to friends." When a customer is satisfied with a product, he or
she might recommend it to friends, relatives and colleagues. This can be a
powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,'
by contrast, are unlikely to return. Further, they can hurt the firm by making
negative comments about it to prospective customers. Willingness to recommend is
a key metric relating to customer satisfaction.
 1.1 Advantages of customer satisfaction

The advantages of customer satisfaction to a business are hard to overestimate.

They may be grouped into four categories: customer retention, advertising savings,
pricing buffers, and business intelligence. These benefits are available to managers
who actively cultivate a positive customer experience.
A high degree of customer retention is usually a major goal of a company. To
implement a customer-retention program takes company-wide participation. Many
businesses spend a significant part of the marketing budget attempting to capitalize
upon the advantages of customer satisfaction. Customer retention statistics may be
difficult to obtain, and these studies may be misinterpreted.

Business experts often state that the costs to sell to an existing customer are less
than those to acquire a new customer. Established customers are already aware of
the business and do not need to change established buying habits. Customer
service is a key cornerstone of the maturation of the new customer status to that of
an established customer.
 1.2 Methods of measuring customer satisfaction

1. Surveys to Measure Overall Satisfaction

This assesses your customers' experience with your product or service. It’s the
direct response to perceived quality based on the perceived needs and expectations
customers had.

Overall satisfaction can be measured through a survey conducted from your

customers after they finished the purchase process. Survey Monkey has a
comprehensive set of surveys you can use to assess your customer’s satisfaction.

Another great tool that we recommend you to experiment with is Floq, an app that
allows you to create professional looking surveys that can easily be implemented
via e-mail, link, or on your website as a pop-up.

Another survey tool commonly used is Google Forms. This free tool allows you to
easily set up surveys

2. Objective Measurement Approach for Loyalty

Customer loyalty is an excellent mirror for customer satisfaction as it’s used to

describe the behavior of repeat customers, as well as those who offer good ratings,
reviews and testimonials. Loyalty can also be measured via a survey after the
purchase process, it is however more powerful to measure the actual behavior than
the intention.
This can be done with the Objective Measurement Approach. Recommended by
Bob Hayes in Business Broadway, this framework allows you to analyse the
historical records inside your CRM system - for example purchase scores or online
behavior - and relate them to other metrics related to your business model, such as
consistency of subscription renewals.

3. Apps for Attribution Satisfaction

One of the best ways to measure the satisfaction regarding a certain product or
feature (could be with your support service) is by providing a reasonable context
which customers can relate to. Asking your customers whether the support team
was friendly or whether they felt rushed allows you to understand how important
these elements are for the whole picture.

One popular tool to assess attribution satisfaction is Qualaroo a platform which

allows you to gather the answers from these questions as well as set up the linking
web pages from your website in order to make it easy for your customer’s to let
you know their review.

Another easy and interesting tool is temper an app that allows you to monitor the
customer mood, spot frustrating experiences for further development, and clearly
understands customer satisfaction regarding different pages, different products or
scenarios. Also useful for A/B testing.

4. Measure your Exit and Abandonment Rates with Tracking Tools

A high exit or abandonment rate measured in your analytics tool is a direct

behavioral indication of customer dissatisfaction. Exits and abandonments are
natural phenomenon in e-commerce, but an unnatural high percentage indicates
that your page and process could be optimized

It's hard to make a judgment about exactly what is wrong with your page based
solely on the numbers inside your tracking system. To get insight about the true
causes it is useful to implement a feedback tool on these pages, for example a live
chat window that pops up after a certain time.

5. Net Promoter Score

This may well be the most popular way of measuring your clients' loyalty. It
measures the likeliness of a customer referring you to someone else. The customer
is asked how likely he would recommend you on a scale from 1 to 10.
 1.3 OBJECTIVES OF REPORT

•To find how many people associated with IDBI Federal insurance company.

•To find how many of the respondents feel that insurance is essential for ones life.

•To know the purpose of taking insurance policy.

•To know that what respondents feel about the IDBI Federal insurance company
schemes.

•To find the main source of awareness of IDBI Federal insurance company among
the various media.

• From where the respondents came to know about IDBI Federal insurance plan.
 1.4 Scope of Insurance

The opening up of the insurance sector to private companies has made available
more product and world class service to Indian customer. To quote Mr. N. ranga
chari former chairman of IRDA “all these years the nationalized insurance
have been bleeding us” “ the future for liberalized insurance sector looks bright
with a monitoring agency committed to promoting the interest of the customers”.
According
to business world, “the sheer size and potential of Indian insurance market has attra
cted many new players. Even going by govt estimates there are about 312 million
middle class customers with financial resources to purchase insurance products,
only 2.5 % of this is covered by any form of insurance Sales agents will remain the
prime distribution channel, and according to some estimated insurance could
finally end up creating over 20,000 jobs for sales representatives alone. The IRDA
has already accredited 14 insurance training schools spread over a few major cities
of our country, which would churn out about some 1500students annually. So the
scope of the insurance sector is wide and open where there a lot of opportunities
for the sector to grow in the next couple of years. More and more private
companies with international experiences are entering into the market with
knowing the scope that is available. Moreover each and every individual have
started realizing the importance of life insurance in their life as the life is
considered to be really unexpected in the world we live today.
 1.5 INTRODUCTION ABOUT IDBI

Industry profile

Life insurance traces its origins in India to the early nineteenth century when
companies in India insured the lives of Europeans living here. Eventually these
companies began to cover Indians as well but required them to pay higher
premiums. Regulations were passed to regulate the Indian insurers (but not the
foreign companies providing insurance services in India) and to allow collection of
information about insurance companies thus facilitating comparison amongst them.
However the legislations became insignificant with time and the government
nationalized the sector by combining all the 154 Indian private insurance
companies to give birth to one behemoth: the Life Insurance Corporation of India.

Through this the Government strived to put an end to prevalent malpractices such
as poor Servicing standards along with the appalling management of companies
wherein funds were simply being divested to all types of securities without any
valuation of the borrowers. The Government took over the reins of the industry in
its own hands reasoning that insurance was a cooperative enterprise and should be
within the purview of the state in order to provide improved services to the public
at lower costs. It was also envisioned that the nationalization of this sector would
lead to more effective mobilization of funds to enable capital to be allocated to
development projects. Besides the charter of freedom also pleaded the control of
the state on key industries such as banking and insurance. Thus the industry was
transformed from a competitive one to a highly regulated monopoly.
In the last decade of the 20th century India watched history repeat itself. With the
Government implementing the New Industrial Policy in 1991, the country
underwent a major wave of globalization. Strategic sectors such as the banking and
the financial sector were reformed. Time had come for the policymakers to
introspect the current policies in the Indian insurance industry as well. Committees
on insurance sector reforms followed suit and it was found that India had continued
to be one of the least insured countries till the late 20th century. Experts
emphasized that customer service, insurance coverage, allocation of resources
needed to be improved within the industry. Also more innovative products were
needed to suit varied customer needs and to change opinion of people towards
insurance, from tax exemption product to a tool for mitigating risks and increasing
savings. Thus it was recommended that the industry should be opened up to
enhance competition and autonomy be given to insurance companies to improve
their performance and enable them to act as independent companies with economic
motives. Thus the life insurance industry was liberalized with the aim of increasing
contribution to the GDP and to the society.

The Industry at present consists of 1 public sector Company and 23 private sector
companies. The only public sector company is Life Insurance Corporation of
India (L.I.C).
The other private sector companies are:

SBI Life Insurance

PNB MetLife India Life Insurance

ICICI Prudential Life Insurance

Bajaj Allianz Life

Max Life Insurance

Sahara Life Insurance

Tata AIA Life

HDFC Life

Birla Sun Life Insurance

Kotak Life Insurance

Life Insurance Corporation of India

Aviva Life Insurance

Reliance Life Insurance Company Limited - Formerly known as AMP Sanmar LIC

ING Vysya Life Insurance

Shriram Life Insurance

Bharti AXA Life Insurance Co Ltd

Future General Life Insurance Co Ltd

IDBI Federal Life Insurance

AEGON Religare Life Insurance

DLF Pramerica Life Insurance

CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE

India First Life Insurance Company

Star Union Dia-ichi Life Insurance Co. Ltd

Edelweiss Tokio Life Insurance Company Ltd

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. According to J Hari Narayan, Chairman, IRDA,
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. He further 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.

According to a Research titled “India Life Insurance 2012: Fortune Favours the
Bold” by McKinsey and Company, India’s Life Insurance market has grown
rapidly over the past six years with new business premiums growing at over 40%
per year. The research also mentions that the new players have contributed to the
sector’s development by significantly enhancing product awareness, promoting
consumer education and information, and creating more organised distribution
channels.
 CHAPTER-2

COMPANY PROFILE

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. Having started in March 2008, in just five months of
inception, IDBI Federal became one of the fastest growing new insurance
companies by garnering Rs.100 Cr in premiums. Through a continuous process of
innovation in product and service delivery IDBI Federal aims to deliver world-
class wealth management, protection and retirement solutions that provide value
and convenience to the Indian customer. The company offers its services through a
vast nationwide network 2,308 partner bank branches of IDBI Bank and Federal
Bank in addition to a sizeable network of advisors and partners. As on 31st
December 2013, the company has issued nearly 5.5 lakh policies with a sum
assured of over Rs. 32,110.48 crores.

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. It came into being as on July 01, 1964 to support India's
industrial backbone. 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 1201 branches and 2156 ATMs. The
Bank offers its customers an extensive range of diversified services including
project finance, 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 1,142 branches and
1,312 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, and Any
Where Banking, debit cards, online bill payment and call centre facilities to offer
round the clock banking convenience to its customers. The Bank has been a
pioneer in providing innovative technological solutions to its customers and the
Bank has won several awards and recommendations.

Ageas is an international insurance group 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. These are grouped around four
segments: Belgium, United Kingdom, Continental Europe and Asia and served
through a combination of wholly owned subsidiaries and partnerships with strong
financial institutions and key distributors around the world. Ageas operates
successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey,
China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong
and UK. Ageas is the market leader in Belgium for individual life and employee
benefits, as well as a leading non-life player through AG Insurance. In the UK,
Ageas has a strong presence as the fourth largest player in private car insurance
and the over 50's market. Ageas employs more than 13,000 people and has annual
inflows of more than EUR 21 billion.
2.1. Origin

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. Having started in March 2008, in just five months of inception, IDBI
Federal became one of the fastest growing new insurance companies by garnering
Rs.100 Cr in premiums. Through a continuous process of innovation in product
and service delivery IDBI Federal aims to deliver world-class wealth management,
protection and retirement solutions that provide value and convenience to the
Indian customer. The company offers its services through.

a vast nationwide network 2,308 partner bank branches of IDBI Bank and Federal
Bank in addition to a sizeable network of advisors and partners. As on 31st
December 2013, the company has issued nearly 5.5 lakh policies with a sum
assured of over Rs 32,11048 crores.

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. It came into being as on July 01, 1964 to support India's
industrial backbone. 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 1201 branches and 2156 ATMs. The
Bank offers its customers an extensive range of diversified services including
project finance, 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 1,142 branches and
1,312 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, and Any
Where Banking, debit cards, online bill payment and call centre facilities to offer
round the clock banking convenience to its customers. The Bank has been a
pioneer in providing innovative technological solutions to its customers and the
Bank has won several awards and recommendations.

Ageas is an international insurance group 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. These are grouped
around four segments: Belgium, United Kingdom, Continental Europe and Asia
and served through a combination of wholly owned subsidiaries and partnerships
with strong financial institutions and key distributors around the world. Ageas
operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal,
Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong
Kong and UK. Ageas is the market leader in Belgium for individual life and
employee benefits, as well as a leading non-life player through AG Insurance. In
the UK, Ageas has a strong presence as the fourth largest player in private car
insurance and the over 50's market. Ageas employs more than 13,000 people and
has annual inflows of more than EUR 21 billion.
2.2 PRODUCT PROFILE

IDBI Federal Childsurance ® Savings Protection Plan is a non-linked participating

endowment plan that ensures a child’s future financial needs are fulfilled. Childsurance®
Savings, is designed to give guaranteed annual payouts and aid the important milestones in a
child’s life.
IDBI Federal Lifesurance® Savings Insurance Plan is a fixed term non-linked
participating plan that provides you the twin benefits of long-term savings and life
cover.

How does Life insurance work?

IDBI Federal Incomesurance™ Guaranteed Money Back Insurance
Plan (UIN No. 135N031V01) is a non-linked non-participating money back plan
which gives you guaranteed* returns on your investment, so that you stop worrying
about the future. With Incomesurance, you can guarantee a secure future for your
family even when you are not around.
IDBI Federal Wealthsurance® Suvidha Growth Insurance Plan (UIN:
135L033V01) is a simple unit linked plan that helps you take your first step
towards wealth creation and that too, with ease. What’s more, the life cover with
this plan provides financial protection to your loved ones
2.3 MISSION, VISION & VALUES

Mission

To be the top new life insurance company in the market. This doesn’t just mean
being the largest or the most productive company in the market, rather it is a
combination of several things like-

 Customer service of the highest order

 Value for money for customers

 Professionalism in carrying out business

 Innovative products to cater to different needs of different customers

 Use of technology to improve service standards

 Increasing market share

Vision

'The most successful and admired life insurance company, which means that
we are the most trusted company, the easiest to deal with, offer the best value for
money, and set the standards in the industry'.'The most obvious choice for all'.
Values that we observe while we work:

 Integrity

 Innovation

 Customer centric

 People Care “One for all and all for one”

 Team work

 Joy and Simplicity

2.4. Organizational Structure

CEO

CHAIRMAN

MANAGING DIRECTOR (MD)

COUNTRY HEAD

ZONAL MANAGER (ZM)

REGIONAL MANGER (RM)

TERRITORY MANAGER (TM)

BRANCH SALES MANGER (BSM)

BUSINESS DEVELOPMENT MANAGER (BDM)

↓
 SALES DEVELOPMENT MANGER (SDM)

FINANCIAL CONSULTANT (FC)

2.5 RECENT ACHIEVEMENTS

Private life insurance company IDBI Federal Life Insurance has posted a maiden
profit of Rs 9.24 crore for financial year 2012-13 in its fifth year of operation. The
company has posted a 44% rise in sales of number of new business policies.

G V Nageswara Rao, Managing Director & CEO, IDBI Federal Life Insurance said,
"Achieving break-even in the fifth year is a significant landmark. We have pursued
profitable growth as our company strategy. Our new business premium growth of
23% compares with negative growth of 15% reported by the industry. Our growth
rate is one of the highest in the industry, with a large number of companies
posting negative growth. What is even more satisfying is the fact that this
achievement comes at a time when the entire life Insurance industry is facing
many challenges and growth is hard to come by."

The 13th month persistency of the company stood at 76%. Rao added that they
were among the top three players in terms of the 25th, 37th and 49th month
persistency. The AUM (Assets under Management) was up by 24% and stood at Rs
2,732 crore.
IDBI Federal started its operations in March 2008 and has a solvency ratio at 491%
as against the regulatory requirement of 150%. The company presently has a paid-
up share capital of Rs 800 crore. The cost ratio of the company went down from
26% in 2011-12 to 24% in 2012-13.

In terms of the products, while Rao maintained that the company would
concentrate on traditional products, the company is looking to launch a group
pension product. The company said that this product would be filed with the
regulator.
2.6 SWOT ANALYSIS OF THE ORGANISATION

STRENGTHS

1. Right strategy for the right products.

2. Superior customer service vs. competitors.

3. Great Brand Image.

4. Products have required accreditation.

5. High degree of customer satisfaction.

6. Good place to work

7. Lower response time with efficient and effective service.

8. Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES

1. Some gaps in range for certain sectors.

2. Customer service staff needs training.

OPPORTUNITIES

1. Profit margin will be good.

 2. Good extend to overseas broadly.
3. Could seek better customer deal
4. Fast- track career development opportunities on an industry wide basis.
5. An applied research center to create opportunities for developing
technique to provide added-value service.
THREATS

1. Very high competition prevailing in the industry.

2. LIC still holding 64% of the market share gives a cut through
competition,
3. Vulnerable to reactive attack by major competitors
4. Entrance of various new players in the sector.
\

Chapter-3

REVIEW OF LITERATURE

According to Kotler, Philip; Kevin Lane Kell (2009)

Marketing isthe methodology of communicating the value of a product or service
to customers, for the purpose of selling that product or service.

Marketing techniques include choosing target markets through market analysis

and market segmentation, as well as understanding consumer behavior and
advertising a product's value to the customer. From a societal point of view,
marketing is the link between a society's material requirements and
its economic patterns of response. Marketing satisfies these needs and wants
through exchange processes and building long term relationships. Marketing
blends art and applied science (such as behavioural sciences) and makes use
of information technology.

CUSTOMER SATISFACTION

Author

Farris, Paul W.(2010)

According to Farris, Paul W. “Customer satisfaction is a term frequently used

in marketing. It is a measure of how products and services supplied by a company
meet or surpass customer expectation”. Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose reported experience
with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals."

Author
Philip Kotler (2007)

According to Philip Kotler “Customer satisfaction is a necessary but not sufficient

goal. Customer satisfaction only weakly predicts customer retention in highly
competitive markets. Companies regularly lose some percentage of their satisfied
customers. Companies need to focus on customer retention. But even retention can
be misleading, as when it is based on habit or an absence of alternative suppliers. A
company needs to aim for a high level of customer loyalty or commitment. Loyal
packaged-goods customers, for example, generally pay seven to 10% more than
non-loyal customers.”

Author
Randy Hanson (February 1993)

According to Randy Hanson “The use of vulnerability analysis to show the

relationship between an individual attribute and a dependent measure when
analyzing data from customer satisfaction surveys. The author presents four ways
in which vulnerability analysis goes beyond simply using a graph showing each
attribute's importance and satisfaction levels in a simple two-dimensional scatter
plot.”
Authors
Kyle Lundby and Christianson DeMay (October 2007)

According to Kyle Lundby and Christianson DeMay “If the goal is to improve
customer loyalty and profitability, how do you determine where to focus time and
energy in order to have the greatest impact? One solution is linkage research - a
method that uses statistical modeling to identify relationships. This article reviews
many of the key aspects that can make your linkage efforts successful.”

Author
Howard Waddell (October 1997)

According to Howard Waddell “When faced with a number of individual product

or service elements that are in some way deficient, an organization must decide
which element to address first. This article explores a method for determining the
elements that have the greatest influence on overall customer satisfaction.”

Author
Elaine Buxton (January 2000)

According to Elaine Buxton “Companies need customer satisfaction information in

order to serve customers better both immediately and in the long run. In this
article, customer satisfaction studies and customer service measurement studies,
such as mystery shopping, are compared and contrasted.”

CHAPTER-4

RESEARCH METHODOLOGY

Sampling factors Data collection Primary data

The primary data for this study is collected with the objective in mind “a study on
the customer satisfaction in insurance industry of IDBI Federal insurance
company”

Secondary data

The secondary data for the study is collected with the information that is
being published in journals and magazines and from the internet.

Tools

The data required for the study is collected with the help of questionnaire. These
questionnaires are handed over to the customers and asked to get it filled up. The
data is interpreted from the information that is incurred from the questionnaire

Sampling area

The respondents are the people who reside in Delhi

Sample size

Due to the limitation of time and scope of the study the number of respondents
from which the data is collected is 100.

4.1 Research Tools of analysis

Analytical techniques are used to obtain findings and arrange information in a

logical sequence from the data collected. After tabulation of the data, researcher
used the following quantitative techniques

1. Percentage Analysis

The data that is obtained is from the questionnaire is analyzed through percentage
analysis. The results are shown on the percentage basis

2. Graphs

Graphical representations are used to show the results in simple form .The graphs
are prepared on the basis of data that is received from the percentage analysis
 Chapter-5

DATA REDUCTION, PRESENTATION &ANALYSIS

Table no.5.1 Importance of insurance

Essential Respondents Percentage

Yes 87 87

No 13 13

Total 100 100

Inference

 87%of the respondents feel that insurance is essential

 13%of the respondents feel that insurance is not essential

Table no.5.2 Reason for importance of insurance

Reason Respondents Percentage

Premium 29 29

Tax 25 25

Security 34 34

Others 12 12

Total 100 100

Inference

 29% of the respondents feel insurance is important because of premium

 25% of the respondents feel insurance is important because of tax benefit

 34% of the respondents feel insurance is important because of security

 12% of the respondents feel insurance is important because of other reasons

Table no. 5.3 Insurance companies that the respondents prefer

Insurance companies Respondents Percentage

LIC 78 78

IDBI Federal 10 10

ICICI Prudential 08 08

HDFC 04 04

Total 100 100

Inference
  78% of the respondents would like to further invest in LIC

 10% of the respondents would like to further invest in IDBI Federal

 08%of the respondents would like to further invest in ICICI Prudential

 04%of the respondents would like to further invest in HDFC.

Table no. 5.4 Media through which awareness of IDBI federal

 Media Respondents Percentage

Newspaper 22 22

Television 55 55

Radio 14 14

Hoardings 09 09

Total 100 100

Inference

 22% of the respondents are aware through Newspaper

 55%of the respondents are aware through Television

 14%of the respondents are aware through Radio

 09%of the respondents are aware through hoardings

Table no.5.5 Awareness of various insurance plan of IDBI Federal

 Awareness Respondents Percentage

Yes 78 78

No 22 22

Total 100 100

Yes No

No; 22; 22.00%

Yes; 78; 78.00%

Inference

 78% of the respondents are aware of various insurance plans of IDBI

Federal

 22%of the respondents are not aware of various insurance plans of IDBI
Federal

Table no. 5.6 Response of respondents about IDBI Federal insurance

plan
 Response Respondents Percentage

Excellent 15 15

Good 52 52

Satisfactory 29 29

Poor 04 04

Total 100 100

Response

Inference

 15% of the respondents feel that the insurance plan are excellent
  52%of the respondents feel that the insurance plan are good

 29% of the respondents feel that the insurance plan are satisfactory

 04%of the respondents feel that the insurance plan are poor.

Table no. 5.7Awareness of IDBI Federal insurance plan

 Insurance plan Respondents Percentage

Incomesurance 35 35

Childsurance 29 29

Wealthsurance 32 32

Others 04 04

Total 100 100

Insurance plan

Inference

 35% of the respondents are aware of the Incomesurance

 29% of the respondents are aware of the Childsurance

 32% of the respondents are aware of the Wealthsurance

 04% of the respondents are aware of the other insurance plan

Table no.5.8 Forms through which respondents came to know about
IDBI Federal insurance plan

Source Respondents Percentage

Insurance consultants 34 34

Friends &Relatives 16 16

Advertisements 26 26

Newspapers 19 16

Others 05 12

Total 100 100

Inference
 34% of the respondents came to know about these plans through insurance
consultants

 16% of the respondents came to know about these plans through friends
&relatives

 26% of the respondents came to know about these plans through

advertisements

 19% of the respondents came to know about these plans through newspaper

 05% of the respondents came to know about these plans through other
resources.
Table no.5.9 Response of respondents about being associated with
IDBI Federal insurance co.

Response Respondents Percentage

3 years 08 08

5 years 40 40

10 years 38 38

Above 10 years 14 14

Total 100 100

3 years 5 years 10 years Above 10 years

Above 10 years; 3 years; 8; 8.00%

14; 14.00%

5 years; 40;
10 years; 38; 40.00%
38.00%
Inference

 08% of the respondents feel to be associated with IDBI Federal insurance co.
for 3 yrs

 40%of the respondents feel to be associated with IDBI Federal insurance co.
for 5yrs

 38%of the respondents feel to be associated with IDBI Federal insurance co.
for 10 yrs

 14%of the respondents feel to be associated with IDBI Federal insurance co.
for above 10 yrs
 CHAPTER-6

DATA INTERPRETATION

Findings

•Still 78% of the employed are associated with LIC which still makes it the number
one spot right behind IDBI Federal insurance company at 10%.

•Almost 87% of the respondents feel that insurance is essential for ones life.

•Both employed and self employed feel the main reason for insurance as far as they
are concerned is due to security purpose.

•52% of the respondents feel that the IDBI Federal insurance company scheme
provided by good.

•Television is considered to be the main source of awareness of IDBI Federal

insurance company among the various media.

• 34% of respondents came to know about IDBI Federal insurance plan from
insurance consultants.
 CHAPTER-7

LIMITATIONS OF REPORT

The study suffers from a few limitations, which will have to be kept in mind for the
findings to be fairly interpreted

•The recommendations are subjected to time and cost constraint

•Sampling has its own limitations, which would have resulted in minor errors

•There can be errors due to bias of respondents

•The size of the sampling was not big enough to arrive at strong conclusion.The
results should be interpreted with the above limitations in perspective.
 CHAPTER-8

SUGGESTIONS AND CONCLUSION

8.1 SUGGESTIONS

The services that provided are only good to the customer. The services should be
improved so that the customers feel excellent about the service.

More branches should be open by the company for the customers to have better
and easy access.

Television is the main media through which the company can reach out to the
people .so advertisement should be telecasted frequently.

More and more details about the insurance plan should be made to be known to the
customer through various insurance plans.
8.2 CONCLUSION

Insurance happens to be a mega opportunity in India. Yet, nearly 80% of Indian

population is without life insurance cover, continue to be below international
standards which offer greater opportunities in this sector. With other investment
avenues remaining unmoved, insurance and mutual funds offer comparatively
better return to customer. With tax and investment planning as its main targeting
tools, insurance is bound to grow at a rapid pace.

The project helped me to find out the customer satisfaction and expectations from
the various plans offered by insurance companies with specific reference to market
linked insurance plan. Appropriate suggestions have been given based on the
research findings. It was a great learning experience and I will carry this
experience with me in all my future endeavors’.
 CHAPTER-9

BIBLIOGRAPHY

URL

 https://www.idbifederal.com/Pages/home.aspx

 http://www.idbifederal.com/AboutUs/Pages/Company-Profile.aspx

 http://www.marsdd.com/mars-library/customer-satisfaction-kotler-on-
marketing/

 http://education-portal.com/academy/lesson/what-is-customer-satisfaction-
definition-examples-quiz.html

BOOKS

 Kotler Philip & Armstrong Gary, (1999),Principle of marketing , prentice

hall of India ,New Delhi.

 Dr.Gupta S.(2000) ,statistical methods,Sulthan chand publication ,New

Delhi

 Solomon ,Michael R.(2009),Consumer Behaviour,PHI Learning pvt.ltd,

New Delhi
 Schiffman I.G.and Kanuk I.I.(2006),Consumer Behaviour,9th Edition,
Pearson Education, New Delhi

 Hoffman,K.D. &Beteson,J.E.G.(2006),Marketing of Services ,Cengage

Learning

 Kurtz.D.L. and Clow K.E.(2003).Services Markrting.Biztantra,New Delhi

 Assel Henrey,(2005),Consumer Behaviour,Cengage Learning, New Delhi

 Snell et al(2010),Human Resource Management,Cengage Learning(India

Edition)

 Ivanacevich (2009),Human Resource Management,Tata McGraw Hill

 CHAPTER-10

QUESTIONNAIRE

Name: Age:

Occupation: Sex:

1. Do you find insurance is important?

a) Yes

b) No

2. For what purpose do people go for insurance?

a) Premium
 b) Tax

c) Security

d) Others

3. Which company do you prefer?

a) LIC

b) ICICI

c) IDBI

d) HDFC

4. Through which media did you come to know about IDBI federal?

a) Newspaper

b) Television

c) Radio
d) Hoardings

5. Are you aware of the various insurance plans offered by IDBI federal?

a) Yes

b) No

6. How do you feel about these particular insurance schemes?

a) Excellent

b) Good

c) Satisfactory

d) Poor

7. Which of the insurance plans are you aware of IDBI federal?

a) Incomesurance

b) Childsurance

c) Wealthsurance

d) Others
8. How did you come to know about these plans?

a) Insurance consultants

b) Friends and Relatives

c) Advertisements

d) Newspapers

e) Others

9. How long do you wish to be associated with IDBI federal?

a) 3 years

b) 5 years

c) 10 years

d) Above 10 years