Insurance may be described as to protect the economic value of asset. It can be said to be a system of spreading the losses of an individual over a group of individuals.
Since it is an intangible product, Insurance Industry is a service industry. Insurance Industry do not produce any goods but sell the promise. A promise to take care of the customers or their dependents in case they suffer a loss due to some peril during the term of policy.
What is insurance:
Mankind is exposed to many serious perils such as property losses from fire and windstorm and personal losses from disability and premature death. Although it is impossible for an individual to foretell or completely prevent their occurrence but it is possible to provide against their financial effect the loss of property and earnings.
From the point of view of the individual the life Insurance may be defined as a contract whereby for a Consideration amount called the premium, one party (the insurer) agrees to pay to the other (the insured) or a beneficiary a particular amount upon the occurrence of death or any other agreed event.
' Insurance is the method of spreading and transfer of risks
' Losses of few unfortunate are shared by and spread over to
many exposed to the same risk.
' Assets created by the owner in expectation of future needs
have a value.
' Losses of assets for any reason deprive the owner of the expected benefits.
' It acts as a form of a safeguard against misfortunes.
' From the point of view of community life insurance may be defined as a social device to make accumulations to meet uncertain losses resulting from premature death or disability.
Purpose and need of insurance
As said earlier that the making is exposed to many serious perils which risk the security of their belongings. The risk here means that there is a possibility of occurrence of loss or damage to the property, it may happen or may not happen. Insurance is relevant only in the contingency of uncertainty. If there is no uncertainly about the occurrence of the loss it can't be insured against:
' Assets are likely to be destroyed or made non-functional due to perils like firefloods, breakdowns, lightning and earthquake.
' Damage to assets caused by any perils is the risk that assets are exposed to.
' Insurance become relevant only if there is uncertainly of occurrence of event leading to loss.
' No uncertainty No insurance.
' We can say that the human life value is an ongoing generating asset, which can be lost on early death or disability caused by accidents.
' Insurance doesn't protect the assets but only compensates the economic or financial loss.
' Basically insurance covers tangible assets but the concept can be extended to intangible also.
How insurance works?
Suppose there are 1000 persons all aged 35 years and healthy lives. They are insured for one year against the risk of death. Each person is insured for Rs. 50,000. If the past experience indicated that 4 out of 1000 persons, at this age are expected to die during the year, expected amount of death claim to be paid to the family of four persons would come to Rs. 2,00,000. The contribution to be paid by each of the 1000 persons will come to Rs. 200 per year. Thus, all the 1000 persons share loss caused to the 4 unfortunate families. 996 persons who survived till one year have not lost anything as they secured peace of mind and a feeling of security of their family. While insurance cannot prevent accidents or premature death, it can help protect the family of the decreased against the loss of income caused by the death of the main breadwinner. In return for specified payments, insurance will provide protection against the incidence of an uncertain event- such as premature death. The business of insurance company called insurer is to bring together persons who are exposed to similar risks, collect contribution (premium) from them on some equitable basis and pay the losses (claims) to the unfortunate few who suffer.
Life insurance is a contract where the person requiring and insurance pays a consideration / premium to maintain a policy and the insurer promises to pay a sum assured or a guaranteed amount on the happening of an eventuality. If no eventuality occurs then the insured may be eligible for some bonus also.
Why life insurance
1. Protection of the interest of the family member.
2. Provision for education and marriage of the children.
3. Post retirement income for self and dependents
4. Special needs for medical expenses.
5. Provision for health /illness.
6. Provision for housing.
7. Provision for income tax rebate.
Benefits of life insurance
Insurance not only serves the ends of individuals or of special groups of individuals but also is advantageous to the society as a whole.
Benefits To The Individual
' Superior to any other saving plans
Unlike any other saving plan, a life insurance policy affords full protection against risk of death. In the event of death of a policy holder, the insurance company makes available the full sum assured to the near and dear of policy holder. In comparison, any other saving plan would amount the total saving accumulated till date. If the death occurs prematurely, such saving can be much lesser than sum assured. Evidently, the potential financial loss of the family of the policy holder is sizable.
' Encourages and forces thrift
A saving deposit can easily be withdrawn. The payment of Life insurance premiums, however, is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. Thus, a life insurance policy in effect brings about compulsory saving.
' Easy Settlement And Protection Against Creditors
A life insurance policy is the only financial instrument , the proceeds of which can be protected against the claims of a creditor of the assured by affecting a valid assignment of the policy.
' Administering the legacy for beneficiaries
Speculative or otherwise, expenses can quickly cause the proceeds to be squandered. Several policies have foreseen this possibility and provide for payment over a period of years or in a combination of installments and lump sum amounts.
' ''Ready marketing and suitability for quick borrowing
A life insurance policy can, after a certain period (generally Three years ), is surrendered for a cash value. The policy is also acceptable as a security for commercial loans, for example, a student loan.
' Accidental death benefits
Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident.
' Tax relief
Under the Indian income tax act, the following tax relief is available
1. 20% of premium can be deducted from total income tax liability.
2. 100% of the premium paid is deductible from your total taxable income.
When these benefits are factored in, it is found that most Policies offer returns that are comparable /or even better than other saving modes such as PPF, NSC etc. moreover, the cost of insurance is a very negligible.
' Benefits of society :
The welfare of the society is protected. Insurance results in economic growth of the country and reduction in inflation.
The World Bank established ICICI LTD in 1955, the Government of India and the Indian Industry, promote Industrial development of India by providing project and corporate finance to Indian industry.
ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions of India. ICICI has financed almost all major sector of the economy, covering 6848 companies and 16851projects. In the fiscal year 2002- 2003, ICICI had disbursed a total of Rs 45673 billion. Assets worth.1676.59 billion as on 31st of march 2005 and customer 6 million and 5 million policyholder account. Multi channel network, 573 branches and 2000+ATMs
Prudential was founded in 1848. Prudential is the largest life insurance company in the United Kingdom. Provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over ''300 billion of funds worldwide (as of 31 December 2006). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the second largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. Its fund management business has expanded into a total of ten markets .
ICICI + PRUDENTIAL (JOINT VENTURE)
A Joint venture ICICI and Prudential of UK
ICICI Prudential started its operation in December 2000
The key objective of ICICI prudential is to provide the Indian citizen to suit a variety of needs.
How a company does announced a name change especially when the old name was well known ? How does the company explain itself to constituents who may have known the company quite well in an earlier incarnation but may be struggling to figure out what the new organization stands for? How can the company create a new image while retaining the strengths of the old one ? and what role might corporate advertising play in all this ? corporate advertising can tell a story about a company as a whole large organisation may need to use corporate acts to simplify their image in the mind of consequence and to show what unifies the company despite the geographical spread and variety of business.
We can very well understand the concept of corporate advertising by taking the example of ICICI prudential communication. When company first began operations the task was to present the visiting card of the company to the public at large and billed creditability and to give the consumer the confidence that 'here is a company that can be trusted to invest funds with' this requires a corporate campaign to establish the brand ,build awareness and give the brand the larger than life image.
' Objective of study
' Type of research
' Source of data
' Sampling unit
' Sample size
' Type of sampling
' Method of data collection
' Instrument used for data collection
Research Methodology deals with, the procedure adopted to carry out the study.
According to green and Tull:
'A research design is the specification of methods and procedures acquiring the information needed It is the overall operational pattern or framework of the project that stipulates which information is to be collected from which sources by what procedures''. For conducting the study, the researcher has adopted both primary as secondary method of data collection.
OBJECTIVE OF STUDY
The purpose of research is to discover answer to questions through the application of scientific procedures. The main aim of research is to find out truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad grouping:
' To check the awareness level of people about insurance.
' To know the reasons for increasing trend of unit linked insurance plan.
' To know how ULIP are differ from Traditional plans means how they give better returns than traditional plan.
' Comparison of investment plan with other tax saving instruments.
' Comparison of ULIP with other investment instrument available in the market.
TYPE OF RESEARCH
Research refers to the search for knowledge. It can be defined as scientific and systematic search for pertinent information on a specific topic. It is careful investigation or enquiry especially through search for new facts of any branch of knowledge.
Research plays an important role in the project work. The result of the project is completely based upon the research of the facts and figures collected through the different ways of research. That is why it is also called a movement from known to unknown. Research is the original contribution to the existing stock of knowledge.
Exploratory or Formulative research: Exploratory research is conducted to clarify the ambiguous problems.
Descriptive research: To portray the characteristics of an individual, group, situation, etc.
Diagnostic research: To determine the frequency of occurrence of an event.
In the data collection method, we have collected both primary and secondary data to meet our objective.
The primary data was collected by a survey based on the questionnaire. It was formulated on the basis of information gathered by me with the help of Mr. Kapil Chawla who provide useful guidelines and objective of our study.
The secondary data was collected from books and internet.
The data that is collected from different sources, as the first hand information that is called primary data. The source of primary data in my research is questionnaire and observation method. The secondary data were also used in my report preparation. This is collected from company record and from internet.
The required information in the form of data is collected through survey method, with the help of personal interview through questionnaire method.
There is a stage where the planning is done about the sample units, sample size, sampling procedures, etc.
This means, which is to be surveyed. So as mention earlier that the sample units is potential peoples..
The sample size means how many peoples should be surveyed. So that total sample size is 150, which cover from different area of gurgaon.
I choose convenient and judgmental sampling for my research.
Data collection method :
Personal interview method is used for collection of primary data in the form of questionnaire from respondents.
Once the source of data collection is decided then comes the instrument for data collection or the research instrument. In this survey method a questionnaire was framed. This is Philip by the potential people though personal interview
How so ever impeccable a thing may see to be there always dwell some possibilities of failure and incompleteness. The result of this work also subject to some of limitations.
Which are as follows:
' The main limitation of the study is the availability of time. As the sufficient time was not available for collection of information.
' Some respondents were not interested in giving answer and they appeared to be busy.
' Lack of experience.
Classification Of Life Insurance Products
We can classify insurance plan in two category.
Term Insurance :
Under term insurance plan, sum assured is payable only if death occurs during the specified pre-determined term. If death does not take place during such term the amount of premium stands forfeited. Thus it can be seen that the term insurance is nothing but the cost of pure protection. It is a contract, which provides financial protection if death should occur within a specified period. No survival benefits are provided under the contract.
Whole life insurance:
Whole life insurance provides for the payment of the face value upon the death of the insured, regardless of when it may occur. This policy furnishes permanent protection to the insured at he moderate cost. This is highly important for the average man or woman of moderate salary, who require considerable family protection and whose limited income does not enable him or her both to pay premiums and to accumulate a large savings fund. The whole life policy provides a capital sum of money in the event of death of the assured whenever that may occur.
Endowment is a product, which includes Risk cover and saving also. In the pure endowment policy the sum assured is payable in the event of death or definitely on maturity. In an endowment sum assured is for sure given to the policyholder on completion of the term. Endowment plans are very popular in developing nations since they serve a dual purpose of life cover and savings. Many a people in our country go for endowment products because of the compulsory saving aspect. An endowment plan on the other hand is not a cheap plan since the insurer has a dual liability of providing life cover and on maturity giving the entire sum assured.
Annuities refer to income or other financial provision usually for retirement or old age. An Annuity may be defined as a periodic repayment made during a fixed period or for the duration of a designated life or lives. In one sense the life annuity may be described as the opposite of insurance protection against death in its pure form a life annuity may be defined as a contract whereby for a premium consideration one party (the insurer) agrees to pay the other (the annuitant) a stipulated sum (the annuity) periodically throughout life. The purpose of the annuity is to protect again a risk'the outliving of one's income.
UNIT LINKED INSURANCE PLAN (ULIP)
Unit linked insurance plan (ULIP) is a life insurance solution that provides the client with the benefits of protection and flexibility in investment. It is a solution which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time .
The investment is denoted as unit and is represented by the value that it has attained called as Net Asset Value (NAV).
ULIP came into play in 1960s and became very popular in Western Europe and America. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers to the clients .
As time progressed the plans were also successfully mapped along with life insurance needs to retirement planning.
In today's times ULIP provides solution for all the needs of a client like insurance planning,financial needs,financial planning for children's future and retirement planning.
Structure Of Ulip
Charges Under Ulip
Contribution related charges:
These are the charges that are represented as a percentage of the regular or single contribution paid. In case of a regular contribution plan, it is usually high in the first year to pay for the distribution cost. This charges pays for the issuance and for distribution commissions. This charges are running for the policy.
These are charges that are levied for the administration of the policy and the related cost of administration of the insurance company,itself. They are more related to the cost like IT , operational, etc cost of continuing the policy.
Fund management charges:
These are the charges for buying and selling debt and equity. These are the charges are adjusted in NAV it self.
This covers the cost of providing life protection for the insured and may be paid once at the start of the policy for a recurrent manner for example this charges levied to provide the insurance cover under the plan . normally these charges are one year charges as per the age of the holder.
Rider charges are similar in nature to the mortality charges as they are levied to pay for the other protection benefits that the policy holder has choosen for- like the critical illness benefit or the accident benefit,etc.
When the policy holder decides to surrender the policy or partially withdraw some of the units for cash , a surrender charge may be apply.
Surrender charges are used to cover initial expenses that have been incurred by the company but not yet recovered from the policyholder yet.
Bid offer charges:
In ULIP specifically certain insurers might create a difference in the price at which they sell the unit and the price at which they buy the units. Investor's contribution are used to buy units in the investment fund at the offer price and are sold when benefits are required at the bid price. The difference between the offer and bid prices Is known as the 'bid-offer spread", this is used to cover expenses when setting up the policy.
Transactional specific charges:
These charges are levied when the client does some specific transaction like changing funds, topping up the investment component or withdrawals .
Investment Option For Your Money
Maximiser: If high growth is your priority, this is the plan for you. You can enjoy long-term capital appreciation from a portfolio that is invested primarily in equity and equity-related securities
Protector: - If on the other hand, your priority is steady returns, you can opt for the protector Plan. Plan, you can accumulate a steady income at a low risk across a medium to long-term period from a portfolio, which is primarily invested in fixed income securities.
Balancer:-If you prefer a balance of growth and steady returns, choose our balancer plan. This would ensure that your portfolio is invested in equity-linked securities, as well as in fixed income securities.
Preserver: The objective of this plan is not ensuring capital protection by investing in very low risk investments like the cash and call money markets. However, the returns generated may also be on the lower side due to the investment pattern. At inception, investments up to 20% can be allocated to this fund.
FUND TYPE ASSET MIX POTENTIAL RISK /REWARD
Maxi miser Equity& Related securities: Max 100%
Debt, Money market & Cash: Max 25% High
Balancer Debt. Money market & Cash:
Equity & Related securities: Max: 40% Moderate
Protector Debt Instruments,
Money market & Cash: Max 100%: Low
Preserver Debt Instruments: Max 50%
Money market & Cash: Min 50% Capital preservation
Automatic Transfer Plan
' Funds would get transferred automatically a fixed date every month (1st or 15th ) from protector to maximiser.
' You can either choose a fixed amount or a fixed percentage.
' Minimum ATP is Rs.2000
' ATP will cease if the funds in the protector are insufficient.
' Effectively this works like 12 free switches of fixed installments over and above the 4 free switches.
COMPARATIVE STUDY WITH THE
LIFETIME SUPER VS LIC BIMAPLUS
Features LifeTime Super LIC BimaPlus
Age 0 ' 60 years 12 - 55 years
Term Minimum premium payment term of 3years 10 years
Sum Assured Choose your sum assured, subject to a minimum sum assured of Rs. 1 lakh Maximum limit upto Rs. 2 lakhs
Survival benefit Value of units (3rd year onwards) Bid Value of the fund units along with maturity bonus at 5% of the Sum Assured
Death benefit Higher of Sum Assured or value of units. Death during the first 6 months - 30% of SA + value of units, next 6 months - 60% of SA + value of units. Death after 1st year - SA + value of units. Death during the 10th year - 105% of SA + value of units.
Withdrawal benefit Partial or complete withdrawals are available from the 3rd year onwards Premature withdrawal allowed after one year (after applying bid-offer spread.
Contribution Minimum: Rs. 18,000 p.a. Not specified
Flexible contribution Flexibility to increase or decrease in contribution Not available
Investment options Maximiser, Balancer, Protector & Preserver. Balanced, Secured & Risk
Increase / Decrease of death benefit Available. Not available
Bonus units Available Not Available.
Top-up Available. Minimum top-up of Rs. 5000. Charges - 1% of top-up. Available (Charges: 1.5% of the top-up)
Switch 4 free switches a year, with the minimum switch amount being Rs. 2000. No free switches. Cost of switching is 2% of the fund value.
Surrender value The policy will acquire a surrender value after 3 complete premium-paying years. The surrender value is 100% of the value of investments. Partial surrender up to 50% of bid value of units allowed after 3 years from date of commencement
Initial Charge % Allocation of the premium Not Disclosed
18000- 49,999: 1st year - 80%; 2nd year - 92.5% ; 3rd year onwards - 96%.
50000 and above: 1st year - 82%; 2nd year - 92.5%; 3rd year onwards - 96%.
Admin Charge None Not applicable
Other Charges Not applicable Not applicable
Fund Management Charges The annual administrative and fund management charge is 2.25% for Maximiser, 2.25% for Balancer, 1.50% for Protector & 0.75% for Preserver. 1% of the fund per annum
IFETIME SUPER VS HDFC LINKED
Features LifeTime Super HDFC Linked
Age 0 - 60 years 18 - 60 years
Term Minimum premium payment term of 3years 10 - 30 years
Sum Assured Choose your sum assured, subject to a minimum sum assured of Rs. 1 lakh Only 5,10, 20 (age-based) multiples are allowed as Sum Assured.
Survival benefit Value of units (3rd year onwards) Value of units
Death benefit Higher of Sum Assured or value of units. Higher of Sum Assured or value of units.
Withdrawal benefit Partial or complete withdrawals are available from the 3rd year onwards Partial withdrawal available from the 3rd year onwards, provided that the Value of Units does not go below the Sum Assured.
Contribution Minimum: Rs. 18,000 p.a. Minimum: Rs. 10,000 p.a.
Flexible contribution Flexibility to increase or decrease in contribution. Available
Investment options Maximiser, Balancer, Protector & Preserver. 5 Fund Options- Balancer, Defensive Managed, Safe Managed, Liquid & Growth
Increase / Decrease of death benefit Available. Not available
Bonus units Available Not available
Top-up Available. Minimum top-up of Rs. 5000. Charges - 1% of top-up. Available
Switch 4 free switches a year, with the minimum switch amount being Rs. 2000. Switches are free as of now. But the company reserves the right to put a charge on the switches.
Surrender value The policy will acquire a surrender value after 3 complete premium-paying years. The surrender charge is 25% of 3 years outstanding regular premium. No charges after 3 years
Initial Charge % Allocation of the premium Charges
18000- 49,999: 1st year - 80%; 2nd year - 92.5%; 3rd year onwards - 96%. 1st yr-27%, 2nd yr- 27%, 3rd yr onwards- 1%
50000 and above: 1st year - 82%; 2nd year - 92.5%; 3rd year onwards - 96%.
Admin Charge None Admin charges of Rs.180 fixed charge per annum.
Other Charges Not applicable Not applicable
Fund Management Charges The annual administrative and fund management charge is 2.25% for Maximiser, 2.25% for Balancer, 1.50% for Protector & 0.75% for Preserver. Investment charge of 0.80% of the Fund Value across all the funds.
Rider ADBR, CIBR & MSAR ABR & CIBR
SUPER PREMIER LIFE VS BAJAJ ALLIANZ UNITGAIN PLUS
Features Super Premier Life Bajaj Allianz Unitgain Plus
Age 18 - 60 years 0 - 60 years
Term Premium paying term of 3 years, 5 years, 7 years or 10 years. Minimum premium payment term of 3 years
Sum Assured Sum Assured multiple is 1 - 25 times the annual premium Minimum Sum Assured is 5 times the premium paid.
Survival benefit Value of units Anytime after payment of 3 full year's premiums.
Death benefit Higher of Sum Assured decreased by the amount of withdrawals made or value of units. Higher of Sum Assured or value of units
Withdrawal benefit Partial withdrawals are available after the 3rd policy year and after payment of 3 years' premiums. Complete withdrawals are available after the 1st year premium. However surrender penalties will apply. Partial or complete withdrawals are available after the 3rd years contribution
Contribution Minimum: Rs. 60,000 p.a. Minimum: Rs. 10,000 p.a.
Flexible contribution Available Available
Investment options Maximiser, Balancer, Protector & Preserver. Equity Index Fund, Equity Plus Fund, Debt Fund, Balanced Fund, Cash Fund
Decrease in death benefit Available. Available
Bonus units Available. Not available
Top-up Available. Minimum top-up of Rs. 5000. Charges - 1% of top-up. Available. Charge are 2% of the top-up amount
Switch 4 free switches a year. Three free switches every year.
Surrender value The policy will acquire a surrender value from the 1st year onwards. Withdrawals are only allowed after payment of 3 full year's premiums
Initial Charges % Allocation of the premium % Allocation of the premium
3 year premium paying term 1st year - 76%; 97% from year 2 onwards
Rs. 60.000 - Rs. 4,99,999: 1st year: 87%; 2nd and 3rd year: 96%
Rs. 5,00,000 and above: 1st year: 89%; 2nd and 3rd year: 96%
5, 7 and 10 year premium paying term
Rs. 60.000 - Rs. 4,99,999: 1st year: 88%; 2nd and 3rd year: 97%; 4th and 5th year: 98%;6th year onwards: 100%
Rs. 5,00,000 and above: 1st year: 90%; 2nd and 3rd year: 97%; 4th and 5th year: 98%; 6th year onwards: 100%
Admin Charge Admin charge of Rs. 60 / month Annual admin charges of Rs. 20
Fund Management Charges The annual investment charge is 1.50% for Maximiser, 1.00% for Balancer, 0.75% for Protector & Preserver. 1.5% p.a. for a Equity Plus Fund, 1% p.a. for Equity Index Fund, No specific charges in case of Balanced Fund, 0.7% p.a. for Debt Plus Fund and 0.7% in case of Cash Plus Fund.
Rider ADBR & CIBR ABR, ADBR, CI & Hospital Cash Benefit
1). Are you interested in products offered by the ICICI PRUDENTIAL?
Will think 17%
The good thing is that atleast the corporates were quite eager to find out what ICICI PRUDENTIAL has to offer whereas the major 39 % of the corporates were not even interested in the products as they are quite satisfied by the LIC and they are not in breaking their long relationship with them. The private players will have to play a long battle in order to ensure that they are serious player in the market. Basically corporates think that its too early to invest in private companies as they have just entered the scene and they are unsure of the security they will have about their investment.
2). Are you satisfied with your present insurer?
Here is where the challenge is. Inevitably most of the players are very satisfied with their present insurer which makes it more tough for the private players to attract the corporates. The remaining 35 % are also not very dissatisfied by the services but they are just open to new avenues and are looking forward that private companies come with good offers so that they may shift to them. Thus private players will have to be very proactive and in this regard since LIC is the leader and ICICI PRUDENTIAL is lagging behind its competitors in terms of competition.
3). Where would you like to insure if given chance?
BAJAJ ALLIANZ 5
TATA AIG 15
Thus we see that the companies are comfortable in having business with govt. owned companies as they feel its safe & secure to have business with them which is followed by SBI as it is the biggest bank and then followed by TATA AIG as the name TATA is associated with it which commands huge premium in the market . Whereas in the case of ICICI PRUDENTIAL the figures represent mediocre performance after compelling and coxing the corporates and creating a strong impression whether they feel interested in doing business with the company.
4). What is people's main concern while taking a insurance policy (ULIP)?
Tax rebate 32%
People invest in insurance mainly because of security concern.
5). Are you aware of LifetimeSuper introduced by ICICI Prudential limited?
The awareness level among the corporate about ICICI PRUDENTIAL offering services is very low and the company needs to work on it. Today is the world of marketing thus it is recommended that company should become more media friendly by advertising more through television channels, radio, newspapers, magazines, journals &editorials.
' The geographical area was very much limited to residential area & so the results are not particularly reflection of the current behavior.
' Biases and non-cooperation of the respondents.
' Due to limited time period and constrained working hours for most of the respondents, the answers at times were vague enough to be ignored.
' Most of the people in India take their policies in the period preceeding March(for tax saving purposes) & so the response to initial contacts were not all encouraging and that has been the primary reason in the inability to quantify the results large enough so as to reduce any relevant outcomes.
' Most of the results that are spelt out have been of qualitative aspects.
' People are not interested in giving personal opinion
In India, insurance is generally considered as a tax-saving device instead of its other implied long-term financial benefits. Indian people are prone to investing in properties and gold followed by banks deposits. They selectively invest in shares also but the percentage is very small'4.5%. Even to this day, Life insurance market has become more vibrant . Smashing all doubts over the decision to liberalize the industry, the overwhelming first year performance of the Indian insurance sector is test case of a massive success story of private players entering into the erstwhile state monopoly.
The top three insurance companies-ICICI Prudential Life Insurance Company, HDFC Standard Life and Max New York Life- combined managed to sell over two lakh policies in a single year. ICICI Prudential, touted as the number one private life insurer, scored on all three fronts-with the maximum number of policies sold (1,00,000 policies), highest amount of premium collected (Rs. 2,700 crore).
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