PROJECT REPORT

On



Assessment and analysis of risk and
insurance management

By


BHABANI SHANKAR LENKA
(U113194)

In


(IDBI FEDERAL LIFE INSURANCE CO. LTD.)


A project report Submitted in partial fulfilment of the requirement of PGDM
Program at Xavier Institute Of Management, Bhubaneswar

DISTRIBUTION LIST:


Faculty Advisor: Company Guide:


Dr. Krishna Dasgupta Mrs. C. Shanthi Yagyanath


Ph.D. Asst. Branch Head


(XIM Bhubaneswar) (IDBI FEDERAL LIFE INSURANCE CO. LTD.)




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Date of Submission: 12/06/2014
ACKNOWLEDGEMENTS


I would like to express my sincere gratitude to my company guide Mrs. C. Shanthi
Yagyanath, Asst. Branch Head, IDBI Federal Life Insurance Company,
Coimbatore for guiding me throughout my summer internship and research project.
Her encouragement, time and effort are greatly appreciated.

I would then like to thank my faculty guide, A/Prof. Dr. Krishna Dasgupta, for all
her valuable inputs and constant support towards me throughout my project and
providing me an opportunity to learn outside the class room. It was a truly
wonderful learning experience.

I would like to thank all my colleagues from IDBI Federal Life Insurance Co. Ltd.
for their valuable suggestions and support. I would also like to thank all the
respondents who offered their opinions and suggestions and sometimes critical
views throughout the survey which made me constantly update myself come out
with a successful project.

Finally, I would like to thank my parents, providing me this opportunity to study in
this great institute. Thank all my friends and relatives, who have given me support.











Submitted By,
Bhabani Shankar Lenka


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CERTIFICATE


Awarded to Mr. Bhabani Shankar Lenka
This is to certify that the Project entitled Assessment and analysis of risk and
insurance management has been submitted in partial fulfilment of the
requirement for the PGDM course of Xavier Institute Of Management ,
Bhubaneswar.






Date:
Place: Bhubaneswar Director



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GUIDE-CERTIFICATE



This is to certify that the Project Report entitled Assessment and analysis of risk
and insurance management is submitted to IDBI FEDERAL LIFE
INSURANCE CO. LTD. and Xavier Institute Of Management, Bhubaneswar
in partial fulfilment of the PGDM Course. This study is based on an original and
independent work carried out by Mr. Bhabani Shankar Lenka under my
guidance and supervision.

The study has not formed the basis for the award of any other degree or Diploma
of any other University or Institution.





Company Guide Project Guide
Mrs. Shanthi Yagyanath Dr. K Dasgupta





Date: 12/06/2014
Place: Chennai


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DECLARATION


I, Bhabani Shankar Lenka of Xavier Institute Of Management, Bhubaneswar
hereby declares that the project report entitled Assessment and analysis of risk
and insurance management written and submitted by me to the Xavier Institute
Of Management, Bhubaneswar , in partial fulfilment of the requirements for the
Internship Program 2014 under the guidance of Dr. Krishna Dasgupta is my
original work and the conclusions drawn there in are based on the material
collected by me.








Date: 12/06/2014 Bhabani Shankar Lenka
Place: Bangalore








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CONTENTS

SL.
NO.
TOPIC
PAGE
NUMBER
1. SYNOPSIS 7
2. ABSTRACT 9
3. OVERVIEW OF INSURANCE SECTOR 10
4. COMPANY PROFILE 16
5. COMPARITIVE ANALYSIS 24
6. LITERATURE STUDY 29
7. RESEARCH METHODOLOGY 33
8. QUESTIONNAIRE 36
9. DATA ANALYSIS 39
10. INTERPRETATION AND INFERENCES 46
11. CONCLUSION 49
12. RECOMMENDATIONS 50
13. REFERENCES 51


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LIST OF FIGURES AND GRAPHS


SL.
NO.
TOPIC
PAGE
NUMBER
1.
MARKET SHARE OF ALL LIFE INSURANCE
COMPANIES
12
2. CONSUMER DECISION MAKING PROCESS 31
3. GENDER CLASSIFICATION 39
4. AGE GROUP 39
5. INCOME DISTRIBUTION 40
6. KNOWLEDGE OF INSURANCE 41
7. HAVE A LIFE INSURANCE POLICY 42
8. PREFERRED INSURANCE COMPANIES 42
9. TYPE OF PLAN 43
10. SATISFACTION LEVEL 43
11. PURPOSE OF TAKING INSURANCE 44
12. FEATURES OF INSURANCE POLICY 44
13. AWARENESS OF IDBI PRODUCTS 45
14. CORELATION ANALYSIS 46
15. REGRESSION ANALYSIS 47
16. DISCRIMINANT ANALYSIS 48

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SYNOPSIS

TOPIC: -

Assessment and analysis of risk and insurance management

IMPORTANCE OF THE STUDY:-

The study is about understanding the consumer purchasing behaviour
which would help in determining the characteristics of different insurance
policies that consumers prefer. It is essential to know these features as it is an
important factor in determining the sustainability and success of the product.

OBJECTIVES:-

Objectives that would be covered under this study: -
Identifying the key features of insurance products
Identifying the causes behind the limited outreach of insurance
products
Competitor analysis on purchase decision dynamics

METHODOLOGY: -

The methodology used in this study would be SURVEY METHOD.
Questionnaire will be designed and circulated among consumers of
different categories depending on income level, age, profession,
gender etc. at Bangalore and Bhubaneswar.
The questionnaire will contain some specific questions for those who
have an idea about insurance policies for getting better clarity in
finding out the purchase decision dynamics.
There will be questions like what type of policy plans does a person
prefer, what are the features consumers consider before buying an
insurance etc. .
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LIMITATIONS:-
The study is confined to the regions of Chennai / Bhubaneswar
It was planned to collect 200 responses but due to some restrictions only 150
responses were collected.
Some of the respondents were not ready to fill the questionnaires and some
of them were not ready to come out openly
The survey conducted was more of objective kind and results will be
completely based on the views of the respondent.





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ABSTRACT

The objective of this study is to analyze consumer value dynamics and its
related purchasing behaviour in the insurance market over the years. The study
would provide interesting insights and empirical evidence on values being
determinant for consumer choice and suggests priority areas of development for
insurance market players in order to adapt to changing customer preferences and
gain competitive advantages.
Consumer purchasing behaviour is the study of individuals, groups, or
organizations and the processes they use to select, secure, and dispose of
products, services, experiences, or ideas to satisfy needs and the impacts that
these processes have on the consumer and society. It blends elements from
psychology, sociology, social anthropology and economics. It attempts to
understand the decision-making processes of buyers, both individually and in
groups.
Consumer purchasing behaviour studies characteristics of individual
consumers such as demographics and behavioural variables in an attempt to
understand people's wants. It also tries to assess influences on
the consumer from groups such as family, friends, reference groups, and society
in general. Customer behaviour study is based on consumer buying behaviour,
with the customer playing the three distinct roles of user, payer and buyer.
Survival of the fittest- This quote best suits the todays competitive
world of the insurance industry. To sustain our product we need to know the
market and the cause behind the limited outrun of the product. Adding to this we
also need to know the key attributes which the consumers want to see in our
product for the different consumer types.
The competitor analysis on the purchase decision dynamics will give us
an overview of where the products offered by IDBI Federal Life Insurance stand
and its scope of improvement. This will help IDBI in developing new products
and modifying the existing products with respect to customer expectations.






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OVERVIEW OF INSURANCE SECTOR

INSURANCE:

Insurance is a contract providing for payment of a sum of money to the person
assured or failing him to the person entitled to receive the same on the happening
of certain event. Uncertainty of death is inherent in human life. It is this risk, which
gives rise to the necessity for some form of protection against the financial loss
arising from death. Insurance substitutes this uncertainty by certainty. The
objective of insurance is normally to provide:
a) Family protection and / or
b) Provision for old age
c) Protection against risks

Insurance cover is essential because it provides the following benefits:
i. A lump sum payment to the nominees at the time of the death of the policy
holder.
ii. A regular payment to the nominees in the event of the death of the policy
holder. Tax benefits, as premiums paid reduce the liability of tax.
iii. Relieves economic hardships in the family on the uneventful death of the
sole income holder.
iv. Inculcates the habit of savings.

HISTORY OF INDIAN INSURANCE:-

Insurance industry has always been a growth-oriented industry globally. On
the Indian scene too, the insurance industry has always recorded noticeable growth
vis--vis other Indian industries. The Triton General Insurance Co. Ltd. was the
first general insurance company to be established in India and it was a British
owned company. The first general insurance company to be set up by an Indian
was Indian Mercantile Insurance Co. Ltd., which was established in 1907. The
general insurance business was nationalised after the promulgation of General
Insurance Business (Nationalisation) Act, 1972.
The post-nationalisation general insurance business was undertaken by the
General Insurance Corporation of India (GIC) and its 4 subsidiaries:

1) Oriental Insurance Company Limited
2) New India Assurance Company Limited
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3) National Insurance Company Limited
4) United India Insurance Company Limited

With the opening up of the insurance industry to the private sector, the need for
a strong, independent and autonomous Insurance Regulatory Authority was felt. As
the enacting of legislation would have taken time, the then Government constituted
through a government resolution an Interim Insurance Regulatory Authority
pending the enactment of a comprehensive legislation.
The Insurance Regulatory and Development Authority Act, 1999 is an act to
provide for the establishment of an Authority to protect the interests of holders of
insurance policies, to regulate, promote and ensure orderly growth of the insurance
industry and for matters connected therewith or incidental thereto and further to
amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the
General insurance Business (Nationalization) Act, 1972 to end the monopoly of
the Life Insurance Corporation of India (for life insurance business) and General
Insurance Corporation and its subsidiaries (for general insurance business).
The Life Insurance Corporation (LIC) was established on 1956 and had been
the sole corporation to write the life insurance business in India. The Indian
Insurance industry is featured by the attributes:

Low market penetration;
Ever-growing middle class component in population.
Growth of consumer movement with an increasing demand for better
insurance products;
Inadequate application of information technology for business.

PRESENT SCENARIO:-

Government-owned Life Insurance Corporation (LIC) of India is the
countrys largest insurer, controlling approximately 65 per cent of the market.
Life insurance penetration in India is about 4.4 per cent of the countrys gross
domestic product (GDP) in terms of total premiums underwritten annually,
according to the Insurance Regulatory and Development Authority (IRDA). The
penetration is quite less in India as against its peers and hence, the Indian insurance
market provides ample opportunities to domestic and international players to
harness the profitable avenues in the same.
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India tops all the countries in terms of life insurance density, according to
the World Economic Forums Financial Development Report 2012. It is followed
by China, Japan, US & UK.



Figure-1

Key Statistics:

Life insurance industry, comprising over 20 companies, including public
sector LIC, collected total premium of Rs 84,501.75 crore (US$ 15.38
billion) during the April-February period of 2012-13 fiscal. Private insurers
together raked-in Rs 23,796.29 crore (US$ 4.33 billion) in these 11 months.
Meanwhile, the general insurance industry grew by 19.34 per cent in the 11
months of 2012-13 fiscal wherein the 27 non-life insurers collected premium
worth Rs 61,885.11 crore (US$ 11.26 billion). The growth was led by
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SBI General which recorded over three-fold growth in gross premium as
compared to the last fiscal.
Of the total premium, the share of 21 private sector players stood at Rs
26,655.35 crore (US$ 4.85 billion) while Rs 31,196.3 crore (US$ 5.68
billion) were contributed by four public sector players --New India
Assurance, National Insurance, United India and Oriental Insurance.
Table shown below shows the list of Insurance companies listed in India:

Type of insurance Life insurance General insurance
Public Sector Company 1 6
Private Sector Companies 22 18
Total 23 24

Table 1

New Developments/ Product Launches

Canada's largest insurer Manulife Financial is contemplating to enter Indian
insurance sector. The company is actively doing a market research to find a
viable business model to set up its shop here.
The Indian insurance sector is home to many other foreign players like
Allianz, Prudential, Standard Life, Aviva, AEGON and Nippon Life, which
are present in the market through joint ventures (JVs)with their respective
Indian partners
State-owned general insurer New India Assurance is all set to make the best
of its international presence. The company that currently operates in 22
countries is planning to enter Qatar, Myanmar and Canada in 2013-14, said
G. Srinivasan, Chairman-cum-Managing Director. The company has huge
set-up in countries like London, Australia and Japan and has ventures in
Kenya, Singapore and other African countries.
New India Assurance recorded Rs 2, 500 crore (US$ 455.13 million) as its
premium income from overseas operations in 2012-13
United Indian Insurance Company has drafted its plan-of-action for 2013-14
and has revealed that it would continue to focus on retail business through
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agents and would add around 530 micro offices in the country. The company
also intends to intensify its focus on information technology activities,
including expansion of info-kiosks and online policies
ICICI Securities and ICICI Lombard General Insurance have together
launched a unique general insurance policy for Mutual Fund Systematic
Investment Plan (SIP) investors. Using this policy named Secure Mind -
2.6 million customers of ICICIdirect.com can protect their investments made
in mutual funds (MF) from unforeseen risks. This is the first-of-its-kind
general insurance policy in India to be offered with MF investments

Government Initiatives

Mr P Chidambaram, the Finance Minister has expressed confidence that the
Government would soon introduce amendments to the Insurance Bill. The Bill
seeks to raise foreign investment cap in the sector from 26 per cent to 49 per cent,
which is a much-awaited move in the capital-intensive industry.
In order to increase the penetration of the concept of insurance, the
Government of India has also launched a pan-India insurance awareness campaign.
Mr Chidambaram has ensured that the campaign would not remain secluded to
metros like Delhi and Mumbai and would focus on states such as Bihar,
Chhattisgarh, Uttar Pradesh and Uttarakhand, where insurance penetration and
awareness is comparatively low.

Road Ahead

Rural and semi-urban markets are witnessing strong demand for composite
products and health insurance policies, more-so because of increasing awareness
and Government initiatives. Bottom-of-the-pyramid products such as micro-
insurance are gaining popularity day-by-day. Insurers are considering telecom
franchisees, NGOs, regional rural banks, cooperatives, post offices and micro
finance institutions as major channels to sell their products. They are even
contemplating on an extensive rural-agent network for sale of insurance products
and services.
Coming to urban markets, India's urban population is projected to increase
from the current 318 million to 375 million by 2025 and it will enhance beyond
existing cities into tier-II and tier-III cities and smaller towns. The need of the day
for life insurers is to understand the different needs of these potential customers,
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design products to match their requirements and create efficient distribution
models on which they can bank upon in future.
In a nutshell, statistics and industry experts truly state that the insurance
landscape in India is full of opportunities. The players need to leverage their
strengths, fasten their growth drivers to emerge stronger and build an incredible
model based on consumer trust and valuable distributor relationships. These
strategic investments will enable the Indian insurance sector to sustain its overall
growth momentum over the years to come.




























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COMPANY PROFILE

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank,
Indias premier development and commercial bank, Federal Bank, one of Indias
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. IDBI Federal endeavours 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 IDBI Federal 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 October 31
st
2012, the company has issued over 5.5
Lakh policies with over Rs 24,095 crore in Sum Assured.

Sponsors of IDBI Federal Life Insurance Co Ltd

IDBI BANK LTD. continues to be, since its inception, Indias premier
industrial development bank. Created in 1956 to support Indias industrial
backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail
finance. Today, it is amongst Indias foremost commercial banks, with a wide
range of innovative products and services, serving retail and corporate customers
in all corners of the country from 783 branches and 1328 ATMs.
The Bank offers its customers an extensive range of diversified services
including project financing, term lending, working capital facilities, lease finance,
venture capital, loan syndication, corporate advisory services and legal and
technical advisory services to its corporate clients as well as mortgages and
personal loans to its retail clients.
As part of its development activities, IDBI Bank has been instrumental in
sponsoring the development of key institutions involved in Indias financial sector
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)

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FEDERAL BANK is one of Indias leading private sector banks, with a
dominant presence in the state of Kerala. It has a strong network of over 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 third 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 11,000 people and has
annual inflows of almost EUR 16 billion.








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SALES ORGANISTAION STRUCTURE:-



Source: IDBI Federal Co Ltd.

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HUMAN RESOURCE ORGANIZATIONAL STRUCTURE:-




Source: IDBI Federal Co Ltd.



There are no Zonal Heads in the Human Resource Department the area Human
Resource executive only acts as the Human Resource Manager and reports all the
activities to the Head Office that is in MUMBAI.




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OPERRATIONS ORGANIZATIONAL STRUCTURE:-



Source: IDBI Federal Co Ltd.


The Zonal Managers are supported by Branch Support Executives and the
Operations department is present only in the Head Office which is in MUMBAI.






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PRODUCT RANGE:-

IDBI Federal offers many varieties of products with respect to insurance to
customers many of which are customized to meet the customer needs such as:

WEALTHSURANCE
INCOMESURANCE
BONDSURANCE
TERMSURANCE
HEALTHSURANCE
LIFESURANCE
GROUP MICROSURANCE
HOMESURANCE
LOANSURANCE
CHILDSURANCE

INCOMESURANCE

Incomesurance not only gives you unmatched transparency and flexibility
but there are lots of other features which are inbuilt in the product like convenient
premium payment options, Tax benefits and double advantage of Endowment and
Money Back plan. Incomesurance combines Endowment and Money Back benefits
into one plan. You can get periodic payments as in Money Back or get a lump sum
at maturity as in Endowment. Incomesurance Plan is very flexible and allows you
to customize your Plan as per your individual and familys future requirements.
Moreover it also allows you to choose Premium Payment Period, Payout Period,
Payout Options and more.

WEALTHSURANCE

The Wealthsurance Foundation Plan enables you to save and build wealth to
meet your financial goals. However, unlike other investment alternatives, it also
enables you to achieve your wealth goals even in the event of unexpected death,
accidents, disablement or serious illness. The Wealthsurance Foundation Plan can
ensure that your plans for wealth creation are achieved by protecting that plan with
insurance benefits. With Wealthsurance Foundation Plan, you can:

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Save into the Plan as much money as you want whether at one time, at
regular intervals or as per your convenience.
Build your wealth by choosing the investments your savings go into and
change them from time to time as you wish.
Get adequate life insurance cover with a unique built-in terminal illness
benefit, so that the financial security of your loved ones is assured and your
plans are always realized.

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan, which provides
insurance cover equal to the outstanding balance of your home loan. In the
unfortunate event of death of the home loan borrower, the insurance cover enables
repayment of the home loan liability.

Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would
repay the loan were not to be there, it could become a serious burden to the family.
The Homesurance Protection Plan protects against this liability.

BONDSURANCE

Bondsurance is a single premium plan which allows you to make a one-time
investment and get a guaranteed amount on maturity. You can choose a maturity
period of 5 or 10 years for your investment. At the end of the chosen period, you
will receive a guaranteed maturity amount. Besides the guaranteed maturity
amount, Bondsurance also provides a life insurance cover. In case of death before
the maturity date, a Death Benefit which is also guaranteed will be paid. Thus you
can get life insurance cover, while earning an assured return on your investment.

GROUP MICROSURANCE

IDBI Federal Group Microsurance Plan provides affordable life insurance
cover to groups. This plan is extremely useful to Micro Finance Institutions, Self
Help Groups and NGOs to insure the lives of their group members and thus
provide security to the group members families. The plan can also be used for
providing loan protection to the group members families.

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TERMSURANCE

IDBI Federal Termsurance Protection Plan (Termsurance) comes with three
cover options which you can select on the basis your requirement. Termsurance is
designed with a host of benefits & options aimed at satisfying your every need. It
not only allows you to customise your plan as per your individual and familys
needs, it also comes with a host of benefits like convenient insurance cover
options, flexible premium payment terms, choice of policy term and lots more
flexible options.

LOANSURANCE

Loansurance is a cost-effective way to ensure that the outstanding debt is
settled in the unfortunate event of death of the insured member. This term
assurance plan provides cover to a person directly liable for loan repayment (and
the partners, in case of a partnership), as per the benefit schedule.



















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COMPARITIVE ANALYSIS

PRODUCT: TERMSURANCE

Term Insurance is a no frill life insurance plans and covers you for a term of
one or more years. It pays a death benefit only if you die in that term. Term
Insurance generally offers the cheapest form of insurance. Term insurance is a pure
protection plan; it secures your family's financial need in case of your natural
death. The premium remains same throughout the policy term. There is no residual
value on expiry of the term. A Term plan is a pure risk cover plan and it meets the
needs of people who are initially unable to pay the larger premium required for a
whole life or an endowment assurance policy, but they hope to be able to pay for
such a policy in the near future.

1.
LIC provides 2 term insurance policies.
o If S.A. is between Rs.5 lacs less than Rs. 25 lacs, the plan is
Anmol Jeevan.
o If S.A. is Rs.25 lacs or more, plan is Amulya Jeevan.
The premium can be paid half-yearly or yearly. It's a simple plan on
death of the policy holder, the nominee gets the S.A.
2.
The company has recently launched a new term insurance plan iProtect,
which can be purchased only Online. This product is not available through
any agent. You need to submit an online application & pay the premium
through Net Banking. Since the company has removed all the intermediaries,
they have come with one of the cheapest premium in term insurance
category.

They offer 2 riders also in this policy.
o Accident Death Benefit (ADB) rider: - In case of death, the
company pay double the S.A., subject to a maximum of Rs.50lacs,
in addition to basic S.A. However you've to pay little more
premiums to get this benefit.
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o Critical Illness Rider: - If during the tenure, the policyholder
suffers from any critical disease like Cancer, heart attack etc., the
company pays the entire S.A. to the policyholder.

3.

Smart Shield is the plan name from SBI life insurance. They offer
attractive large sum assured rebates. You can also customize your
coverage by choosing from a wide range of additional benefits such as
Accidental Death Benefit Rider, Accidental Total and Permanent
Disability Rider and Accelerated Critical Illness cover option.

Plan Options
Option I Level Term Assurance
Option II Increasing Term Assurance
Option III Decreasing Term Assurance(Loan Protection)
Option IV Decreasing Term Assurance(Family Income Protection)
Term
Minimum Policy Term 5 years
Maximum Policy Term For Option I, II & IV - 30 years
For Option III - Equal to the outstanding loan term subject to maximum
of 30 years
Premium
Minimum Premium Single Premium :- Rs. 15,000/-
Regular Premium:-
Yearly: Rs. 5,000/-
Half-Yearly: Rs.2,500/-
Quarterly: Rs.1,250/-
Monthly: Rs. 450/-
Premium Mode Single/ Yearly / Half yearly / Quarterly / Monthly
**

Age
*

Minimum Entry Age 18 years
Maximum Entry Age 65 years
Maximum Maturity Age 70 years
Sum Assured
Minimum Sum Assured Rs. 25,00,000 ( Rs. 1,00,000)
Maximum Sum Assured No Limit
Riders Available


Figure - 2

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PRODUCT: INCOMESURANCE
PARAMETER
IDBI
FEDERAL
LIFE
INSURANCE
LIC
SBI LIFE
INSURANCE
COMPANY
ICICI
PRUDENTIAL
LIFE INSURANCE
ENTRY AGE
( YEARS)
MIN
30 days 12 15 16
MAX
65 65 60 70
SUM INSURED
(Rs)
MIN
Subject to a
min. based on
minimum
premium
50000 50000 75000
MAX
No Limit no limit 5 crores No Limit
POLICY
TERMS
MIN
10 5 10 15
MAX
25 55 25 20
PREMIUM
PAYING
PERIOD
MIN
5 3 10 15
MAX
15 25 25 20
MODE OF
PAYMENT

Monthly, half-
yearly, annually
Monthly,
quarterly,
half-
yearly,
annually
Monthly,
quarterly half-
yearly, annually
Monthly, half-
yearly, annually
PREMIUM
MIN
10000 3000 3200 6000
MAX
no limit no limit Rs 3051170 No Limit
TAX BENEFIT
double tax
benefit
double
tax
benefit
double tax
benefit


Table - 2
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PRODUCT WEALTHSURANCE
1. IDBI FEDERAL LIFE INSURANCE CO. LTD.
Minimum entry age(yrs)
30 Days


Maximum entry age(yrs)
65


Maximum maturity

age(yrs) 75

Min. premium 10000

No. of funds 7

ADBR, ADB, WOPR, MAJOR DISEASES

Riders BENIFIT, HOSPITAL BENEFIT, TERMINAL
ILLNESS BENEFIT

Min. premium payment
term(yrs)
3

Table - 3
2. LIFE INSURANCE CORPORTAION (LIC) OF INDIA
LIC offers 3 different types of ULIPs under flagship banner wealth
insurance:
MARKET PLUS
PROFIT PLUS (RP & SP)
FORTUNE PLUS
(ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit
Rider)

Market Plus Profit Plus (RP & SP) Fortune Plus


Minimum entry
18

0 12

age(yrs)



maximum entry
70

65 60
age(yrs)




maximum maturity
75

70,75 65
age(yrs)





min. premium 10000 20000 20000



No. of funds 4 4 4



Riders ADBR ADBR,CIBR ADBR



Min. premium payment
5

3 5

term(yrs)


Table 4

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3. ICICI PRUDENTIAL LIFE INSURANCE

ICICI PRUDENTIAL OFFERS 5 DIFFERENT TYPES OF ULIPs

LIFE TIME GOLD
LIFE LINK SUPER
PREMIER LIFE GOLD
LIFE TIME PLUS
LIFE
PREMIER LIFE LIFE TIME LIFE
LIFE TIME
GOLD
LINK


GOLD PLUS STAGE

SUPER



Minimum
entry 0 0 0 0 0
age(yrs)

Maximum
entry 65 65 69 65 65
age(yrs)

Maximum
maturity 75 70 75 75 75
age(yrs)

Min.
20000 50000

10000 20000 15000
premium



No. of
7 7

7 7 7
funds



Riders
ADBR,CIBR,
WOP
NO
ADBR,CIBR
,WOP
ADBR,
CIBR
ADBR,
CIBR

Min.
premium
3 SP

3 and 5 3
LIFE
payment

BASED

term(yrs)

Table - 5





29 | P a g e

LITERATURE STUDY

CONSUMER BUYING BEHAVIOUR

Definition:
Consumer behavior refers to the mental and emotional process and the obser
vable behavior of consumers during searching, purchasing and post
consumption of a product or service. Consumer behaviour involves study of how
people buy, what they buy, when they buy and why they buy. It blends
the elements from psychology, sociology, anthropology and economics. It also
tries to assess the influence on the consumer from groups such as family, friends,
reference groups and society in general. Buyer behaviour has two aspects: the final
purchase activity visible to any observer and the detailed or short decision process
that may involve the interplay of a number of complex variables not visible to
anyone.

Factors Affecting Consumer Buying Behaviour

Consumer buying behaviour is influenced by the major three factors:
1. Social Factors
2. Psychological Factors
3. Personal Factors.

A. Social Factors

Social factors refer to forces that other people exert and which affect
consumers purchase behaviour. These social factors can include culture and
subculture, roles and family, social class and reference groups.
Example: - By taking into consideration Reference group, these can influence /
affect the consumer buying behaviour. Reference group refers to a group with
whom an individual identifies herself/ himself and the extent to which that person
assumesmany values, attitudes or behavior of group members. Reference groups ca
n befamily, school or college, work group, club membership, citizenship etc.
Reference groups serve as one of the primary agents of consumer socialization and
learning and can be influential enough to induce not only
sociallyacceptable consumer behavior but also socially unacceptable and even pers
onal destructive behaviour. For example, if fresher student joins a college /
university, he/she will meet different people and form a group, in that group there
30 | P a g e

can be behaviour patterns of values, for example style of clothing, handsets which
most of group member prefer or even destructive behaviour such as excessive
consumption of alcohol, use of harmful and addictive drugs etc. So, according to
how an individual references him / her to that particular reference group, this will
influence and change his/her buying behaviour.


B. Psychological Factors

These are internal to an individual and generate forces within that influence
her/his purchase behaviour. The major forces include motives, perception,
learning, attitude and personality.
Example: - Attitude is an enduring organization of motivational, emotional,
perceptualand cognitive processes with respect to some aspect of our environment.
Consumer form attitude towards a brand on the basis of their beliefs about
the brand. For example, consumers of Sony products might have the belief that
the products offered by Sony are durable; this will influence those customers to
buy Sony products due to this attitude towards the brand.

C. Personal Factors

These include those aspects that are unique to a person and influence
purchase behavior. These factors include demographic factors, lifestyle and situatio
nal factors.

Example: Lifestyle is an indicator of how people live and express themselves
on the basis of their activities, interests, and opinions. Lifestyle dimension
provide a broader view of people about how they spend their time the importance
of things in their surroundings and their beliefs on broad issues associated with life
and living and themselves. This is influenced by demographic factors and
personality. E.g. a CEO or Manager is likely to buy more formal clothes, ties and
shoes or PDAs and less informal clothes like jeans as compared to a Mechanic
or Civil engineer. So according to their lifestyle and profession, the buying
behaviour of people differs from one another.




31 | P a g e

CONSUMER BUYING DECISION PROCESS

Definition:
Consumer buying decision process is the processes undertaken by consumer
in regard to a potential market transaction before, during and after the purchase of
a product or service.

Consumer decision making process generally involves five stages:


Figure - 3

A. Problem Recognition

Purchase decision making process begins when a buyer becomes aware of
an unsatisfied need or problem. This is the vital stage in buying decision process,
because without recognizing the need or want, an individual would not seek to buy
goods or service. There are several situations that can cause problem recognition,
these include:
Depletion of stock
Dissatisfaction with goods in stock
Environ-mental changes
Change in financial situation
Marketer initiated activities.

B. Information Search

After the consumer has recognized the need, he / she will try to find the means
to solve that need. First he will recall how he used to solve such kind of a problem
in the past, this is called nominal decision making. Secondly, a consumer will try
to solve the problem by asking a friend or goes to the market to seek advice for
which product will best serve his need, this is called limited decision making.

Sources of information include:
Personal sources
32 | P a g e

Commercial Sources
Public sources
Personal experience

C. Alternatives evaluation

Consumers evaluates criteria refer to various dimension; features,
characteristics and benefits that a consumer desires to solve a certain problem.
Product features and its benefit is what influence consumer to prefer that particular
product. The consumer will decide which product to buy from a set of alternative
products depending on each unique feature that the product offers and the benefit
he / she can get out of that feature.

D. Purchase Action

This stage involves selection of brand and the retail outlet to purchase such a
product. Retail outlet image and its location are important. Consumer usually
prefers a near-by retail outlet for minor shopping and they can willingly go to a far
away store when they purchase items which are of higher values and which involve
higher sensitive purchase decision. After selecting where to buy and what to buy,
the consumer completes the final step of transaction by either cash or credit.

E. Post-purchase Actions

Consumer favourable post-purchase evaluation leads to satisfaction.
Satisfaction with the purchase is basically a function of the initial performance
level expectation and perceived performance relative to those expectations.
Consumer tends to evaluate their wisdom on the purchase of that particular
product. This can result to consumer experiencing post
purchase dissatisfaction. If the consumers perceived performance level is below
expectation and fail to meet satisfaction this will eventually cause dissatisfaction,
and so the brand and/ or the outlet will not be considered by the consumer in
the future purchases. This might cause the consumer to initiate complaint
behaviour and spread negative word-of-mouth concerning that particular product.


33 | P a g e

RESEARCH METHODOLOGY

OBJECTIVES:-

Objectives that would be covered under this study: -
Identifying the key features of insurance products
Identifying the causes behind the limited outreach of insurance
products
Competitor analysis on purchase decision dynamics

METHODOLOGY:

RESEARCH DESIGN:

In this project, descriptive research is used i.e. explaining the
distinctiveness of the observed facts. The methodology used in this
study would be SURVEY METHOD.
Questionnaire will be designed and circulated among consumers of
different categories depending on income level, age, profession,
gender etc. at Bangalore and Bhubaneswar.
The questionnaire will contain some specific questions for those who
have an idea about insurance policies for getting better clarity in
finding out the purchase decision dynamics.
There will be questions like what type of policy plans does a person
prefer, what are the features consumers consider before buying an
insurance etc. .

SAMPLE DESIGN:
The sample size is 250 and sampling unit is consumers and the sampling
type is non random sampling. The research is carried out in Bangalore,
Karnataka and Bhubaneswar, Odisha. Open ended and closed ended questions
are used in the design of questionnaire. The type of questionnaire used in this
34 | P a g e

project is structured questionnaire where the questions are listed in a pre
arranged order and respondents are informed about the purpose of collecting
information.

DATA SOURCES
There are two methods of data collection that can be considered when
collecting data for research purpose. These data collection types include the
following:
Primary data
Secondary data

Both primary and secondary data will be used for the purpose of study.

Primary Data
This can be referred to as first hand data because it is collected mainly for
the set research purpose.

Sources of primary data:
For the purpose of the project, primary data will be collected by
communication via questionnaires and interviews which we will administer
personally.
Basic methods of communication with respondents that may be used in the
project are:
Personal interviews.
Telephone interviews.
Self administered questionnaires which can either be in the form of
printed questionnaires or electronic questionnaires via email.

Secondary Data
Secondary data can be referred to as information collected by others for
certain purposes that can be different from that of a researcher who intends to
use the same information.
Sources of secondary data:
The internal sources are datas being collected from employees, suppliers
etc. And the external sources include the collection of data from published
articles, books, research reports etc. as well as commercial, panel research,
reports etc.
35 | P a g e

Online sources which may include web pages of government
organizations, companies, symposium, seminar etc., For this study, secondary
data were gathered from books, journal and articles using the college library as
well as the through internet e.g. Google scholar, Ebsohost, IRDA website.


LIMITATIONS OF THE PROJECT:

The limitations of the project are:
1. Data was collected from two geographical areas i.e. only in Bangalore
city and Bhubaneswar.
2. Respondents may not provide accurate and true information for the
surveys which may lead to a variation in consumer responses.
3. It was planned to collect 300 responses but due to some restrictions only 250
responses were collected.
4. The survey conducted was more of objective kind and results will be
completely based on the views of the respondent.
























36 | P a g e

QUESTIONNAIRE

SURVEY ON Assessment and analysis of risk and
insurance management

Dear Sir/Madam,

This survey is a part of our curriculum in my Summer Internship Program for
the partial fulfilment of my MBA degree. I thank you for your co-operation
and assure you complete confidentiality of the information.


1. NAME



2. AGE



3. GENDER



4. MOBILE NUMBER



5. ANNUAL INCOME
BELOW 3 LAKH
3 5 LAKH
5 7 LAKH
7 10 LAKH
ABOVE 10 LAKH

6. OCCUPATION















37 | P a g e

7. LOCATION


8. DO YOU HAVE ANY IDEA ABOUT INSURANCE POLICIES?
YES
NO
9. DO YOU HAVE A LIFE INSURANCE?
YES
NO
(* If NO, please move to Question-13 directly)

10. IF YES, WHICH INSURANCE COMPANYS POLICY DO YOU HAVE?


11. WHAT TYPE OF PLAN DO YOU HAVE?
ENDOWMENT
TERM PLAN
MONEY BACK
ULIP
RETIREMENT
OTHERS

12. ARE YOU SATISFIED FROM YOUR INSURANCE POLICY WITH RESPECT TO THESE
FEATURES
(RANK ACCORDING TO: - 1 UNSATISFIED; 5 HIGHLY SATISFIED)
INSURANCE COVERAGE
BONUS & RETURNS
PREMIUM AMOUNT
FLEXIBLE WITHDRAWLS
TAX BENEFITS
CUSTOMER RELATIONSHIP
MANAGEMENT



















38 | P a g e


13. WHAT IS THE PURPOSE OF TAKING AN INSURANCE POLICY?
TAX SAVINGS
INVESTMENT PURPOSE
RISK COVERAGE
RETIREMENT BENEFITS
REGULAR RETURNS
OTHERS

14. RATE THE FEATURES YOU CONDSIDER BEFORE TAKING A POLICY?
(1 LOWEST IMPORTANCE; 5 HIGHEST IMPORTANCE)
INSURANCE COVERAGE
BONUS & RETURNS RECEIVED
EASE OF PAYING PREMIUM AMOUNT
FLEXIBLE WITHDRAWLS
EASE OF UNDERSTANDING PRODUCT
CLAIM SETTLEMENT

15. ARE YOU AWARE OF THE FOLLOWING PRODUCTS FROM IDBI FEDERAL?
INCOMESURANCE PLAN
TERMSURANCE PLAN
LIFESURANCE SUVIDHA
CHILDSURANCE PLAN
WEALTHSURANCE PLAN
HOMESURANCE PROTECTION PLAN
NONE OF THESE

16. ANY VALUABLE FEEDBACK ABOUT IDBI FEDERAL
























39 | P a g e

DATA ANALYSIS

SAMPLE SIZE: - 250

DEMOGRAPHIC PROFILE


Graph 1

From Graph 1, we can see that majority of respondents are MALE
(68 %) where as only 32% of respondents were FEMALE. Male
respondents were easy approachable for survey.


Graph 2

68%
32%
GENDER CLASSIFICATION
Males
Females
36%
31%
21%
12%
AGE GROUP
18-24
25-30
30-40
Above 40
40 | P a g e

Observing Graph 2, we can see that majority of the respondents are in
the age group of 18 24 & 25 - 30, which shows the younger generation,
has shown more interest towards the survey about the insurance products.
A total 180 respondents fell in the age group of 18 30 years from which
106 respondents were from Bangalore and rest (74) from Bhubaneswar.
This is because of the presence of younger crowd at Bangalore.


Graph 3

Table 6

From Graph 3 we can see the classification of the income of the
respondents and it is further differentiated in Table 2.
Most of the respondents are in the income level of 3 5 lakh and its
maximum for both the regions. Thus we can infer that since most of the
respondents are in the age group of 18 30 they are mostly fresher or
with 2-3 years of work experience.

12%
58%
17%
9%
4%
INCOME DISTRIBUTION
Below 3 lakh
3 - 5 Lakh
5 - 7 Lakh
7 - 10 Lakh
Above 10 Lakh
INCOME GROUP BANGALORE
RESPONDENTS
BHUBANESWAR
RESPODENTS
TOTAL
BELOW 3 LAKH 10 20 30
3 LAKH - 5 LAKH 82 64 146
5 LAKH - 7 LAKH 20 22 42
7 LAKH - 10 LAKH 9 12 21
ABOVE 10 LAKH 6 5 11
41 | P a g e

General Information about the Insurance Industry:

From the data collected it was observed that 228 people (91%) have a
general idea about the insurance policies out of which 111 respondents
were from Bangalore and almost a same number from Bhubaneswar were
aware of insurance policies. Refer the Graph 4 and Table 3 for better
picture.
Consumers are more aware of the insurance policies now-a-days. This can
be due to high marketing of various insurance companies.

Table 7

Graph 4

Out of the 228 respondents who have an idea about insurance policies
195 respondents have a Life insurance. This is explained in Graph 5
and Table 4.
It was seen that respondents from Bhubaneswar had better conversion
ratio (i.e. no. of people having life insurance divided by no. of people
having an idea about insurance policies).

KNOWLEDGE OF
INSURANCE

BANGALORE
RESPONDENTS
BHUBANESWAR
RESPODENTS
YES 111 117
NO 10 13
91%
9%
KNOWLEDGE OF INSURANCE
YES No
42 | P a g e

Table 8


Graph 5

When asked about the most preferred insurance companies in the market
135 respondents answered LIC followed by ICICI and Bajaj Allianz. LIC
was much more popular in Bhubaneswar than Bangalore. This is shown
below in Graph 6.


Graph 6
78%
22%
HAVE LIFE INSURANCE POLICY
YES NO
LIC Bajaj Allianz HDFC ICICI IDBI
Bhubaneswar 71 7 1 5 4
Bangalore 64 7 4 10 7
0
20
40
60
80
100
120
140
160
N
o
.

o
f

r
e
s
p
o
n
d
e
n
t
s

PREFFERED INSURANCE COMPANIES
HAVE LIFE
INSURANCE

BANGALORE
RESPONDENTS
BHUBANESWAR
RESPODENTS
YES 87 108
NO 31 24
43 | P a g e

Coming up to the type of plan the respondents preferred were
Endowment, Money back, Term plan, ULIP and Retirement plans. From
Graph 7 we can clearly see the distinction in the type of plans that
people prefer in their selected insurance companies.
Respondents those who preferred LIC took Money back plans and
endowment plans.
Out of all the plans available respondents mostly preferred money back
and endowment plans.


Graph 7

People those who already have insurance policy (195 respondents) have
rated their satisfaction levels from the insurance policies below.


Graph 8
LIC Bajaj Allianz HDFC ICICI IDBI
Retirement 0 1 1 4 0
ULIP 5 5 1 1 2
Money back 37 1 2 1 2
Term plan 50 5 1 6 2
Endowment 43 2 1 2 5
0
20
40
60
80
100
120
140
160
N
o
.

o
f

R
e
s
p
o
n
d
e
n
t
s

TYPE OF PLAN
0
20
40
60
80
100
120
140
Insurance
Coverage
Bonus &
Returns
Premium
Amount
Flexible
withdrawls
Tax Benefits CRM
SATISFACTION LEVEL
Satisfied
Neutral
Unsatisfied
44 | P a g e

From Graph 8, we can refer almost all the respondents have high
satisfaction levels from their respective insurance companies with respect
to insurance coverage, bonus & returns, premium amount and tax
benefits.


Graph 9

From the respondents it was found that the main purpose of taking
insurance policy was tax savings, investments and risk coverage. This is
explained further in the Graph 9 shown below. Total no. of respondents
taking this part = 195.


Graph 10
Tax Savings Investments Risk Coverage
Retirement
Benefits
Regular
Returns
No. of Respodents 67 50 45 16 17
0
10
20
30
40
50
60
70
80
A
x
i
s

T
i
t
l
e

PURPOSE OF TAKING INSURANCE
0
20
40
60
80
100
120
140
160
180
200
Insurance
Coverage
Bonus &
Returns
Ease of paying
premium
Flexible
withdrawls
Ease of
understanding
product
Claim
settlement
FEATURES OF INSURANCE PRODUCTS
Highest Priority Neutral Least Priority
45 | P a g e

In general respondents gave highest priority to insurance coverage, bonus
& returns and ease of paying premium. This can be seen from the Graph
10.


Graph - 11

From Graph - 11 mentioned below we can know that most of the people
are unaware of the products that are offered by IDBI.
Few respondents were aware about Termsurance followed by
Incomesurance and Homesurance.
















0
20
40
60
80
100
120
140
AWARENESS OF IDBI PRODUCTS
Number of people aware of IDBI
products
46 | P a g e

INTERPRETATION AND INFERENCES:-

1. Figure 3 is showing the COLINEARITY between the different features
of insurance product of a person who already has insurance.
a. People who are satisfied with the insurance coverage features are
also highly satisfied with bonus & return provided by their policies
they have chosen.
b. Similarly those who are considering that their policies are giving
them ample bonus & return, they also are highly satisfied with
features like tax benefit and customer relationship management
also.
c. However, it is found that there is very low correlation between
premium amount and flexible withdrawals as well as flexible
withdrawals and Tax benefit. Perhaps it can be an indication that
those who are satisfied with the feature of flexible withdrawals
might be facing high premium amount or not getting satisfactory
tax benefit.


Figure 3

47 | P a g e

2. Those respondents who have idea about insurance policies give high
priority to Tax savings, Investment, Risk coverage, retirement Benefit and
Regular returns before buying an insurance policy. This can be inferred
from the linear regression analysis of features considered before taking an
insurance policy with respect to Do you have any idea about Life
insurance. Figure 5 shows the different values of linear regression.

a. Continuing further analysis with the regression analysis the Big F
value is 2.36 with p value less than 0.05 which suggests that the
respondents who are considered here; they have much idea about
life insurance products.
b. These respondents consider features like Tax savings, Investment,
Risk coverage, retirement Benefit and Regular returns are really
behind the purpose of buying insurance however, priorities are
given to Tax savings, Investment and Risk coverage. This model is
a universally accepted model with 95% confidence level.
c. The t value for investment, retirement benefit and regular returns
are closer to 2 which signifies that those who have idea about
insurance product considers these three as the most important
features of insurance product. Though the p value for these three
features are not less than 0.05 so these feature can only be
considered as important for this model only.



Figure 5
48 | P a g e

3. Now looking over to the consumer purchase dynamics behavior we get
consumers look for insurance coverage, bonus & returns and ease of
paying premiums.
4. For further understanding the consumer behavior discriminant analysis is
done to know the proper difference in approach.
a. If we consider the importance given to the different features of
policies by the respondents then we will find that out of 61 who do
not have any idea about insurance 14 respondents have really no
idea about considering the features before taking the policies
whereas 47 are able to identify successfully what are the features
they need to consider before taking the policies. So these 47
respondents have misclassified themselves.
b. Similarly out of 189 respondents who have idea about insurance
products 180 have given importance to the specified features of
insurance products and only 9 respondents are not giving such
importance to these features.


Figure 6
49 | P a g e

CONCLUSION

As earlier said consumer buying decisions are significantly driven by 3
factors social, psychological factors and personal factors and as the
respondents of our survey are mainly youth with not so high income level so
their concern regarding future is obvious. With increasing liberalization and
the city like Bangalore where major employer is software industry (highly
sensitive to macro-economic as well as technological factors) the population
is highly insecure about its future prospective. This can be a major reason
behind the people preferring insurance products as their one of the important
instrument as investment.
Also in our survey, almost 67% of total respondents age profile is between
the 18 to 30 and this population (government and private employee both
included) both are no longer accounted in any kind of pension scheme from
their employer side. They are considering Retirement benefit plans as a new
opportunity for making their old age secure. Perhaps this is a reason which
makes retirement benefit feature of insurance products so important. In our
research, regular return has been raised as significant feature of insurance
product and rising inflationary condition can be a possible reason behind
this.
People those who are considering themselves as unfamiliar to insurance
products actually it was found that they do really have considerable
knowledge about insurance products as they are giving rightful importance
to the features of insurance. This can be regarded as the influence of social
factor. Consumer socialization and learning can be major driver of this kind
of rightful purchase of insurance products.
Some people misclassified themselves as familiar to insurance products but
they are found as having no idea regarding buying decision of insurance
products. This kind phenomenon can be simplified by considering the
psychological factors of buying decisions. Motives, attitudes perception can
be the major reason behind these types of decisions.
Also our study suggests that around 80 percent of people having one or more
insurance has possess idea about insurance products .Their buying decision
can be attributed to the personal factors as well as social factors where one
considers lifestyle and demographic situation as important purchasing
variable.

50 | P a g e

RECOMMENDATIONS


IDBI FEDERAL should constantly come out with innovative products as the
competition is very tough with around 24 companies fighting hard for the
market share. Some new innovative ideas can be user specific like special plans
for unborn babies, mentally retarded and physically handicapped people, family
plans.

IDBI FEDERAL should focus more on investment plans as few years down the
line Indias population will have majority under the age group of 35 years and
they would like to have investment plans. So they should come up with more
flexibility in investment plans.

The customer services are an important part of any insurance company. IDBI
Federal should focus on improving their customer care support which will help
them in retaining their customers and acquiring new customers.

IDBI Federal can also think of targeting educational institutions and create
awareness about the importance of life insurance and discuss about it products.
Through this it could gain the early bird advantage capture the untapped
market. This will make the younger generations more responsible making them
go in for insurance in a big way at the earliest thus making IDBI Federal the
ultimate beneficiary to enjoy the income from the customers from the very
beginning of their service lives and make them as a long term customers.

IDBI Federal is lagging in the awareness of its products. The company should
start sponsoring major events and conduct talk shows and seminars to get
noticed. It could also take the help of NGOs. There are many people in India
who still do not know about the concept of insurance. The company could take
this as an opportunity by trying to create awareness and promoting its products.






51 | P a g e

REFERENCES

1. KAZE, VALTERS. (2010) Consumer values driven purchasing behaviour:
A practical approach for market potential assessment. Journal of Business
Management. 3. p.131-139

2. DAS, DEBABRATA & DEBNATH, JASOJIT. (2012) Performance of
Insurance companies in India. IUP Journal of Risk & Insurance. 9 (1).p.7-
26

3. ATHMA, PRASHANTA & KUMAR, J.RAVI. (2007) An explorative
study of life insurance purchase decision making: Influence of product
and non product factors. ICFAI Journal of Risk & Insurance.4 (4).p.40-48

4. DEVASENATHIPATHI, T.; SALEENDRAN, P.T. &
SHANMUGASUNDARAM, A. (2007) A study on consumer preference
and comparative analysis of all life insurance companies. ICFAI Journal
of Consumer Behaviour.2 (4).p.7-16

5. IRDA. (2012) Annual reports of the authority. [Online] Available
from:http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearList.asp
x?DF=AR&mid=11.1 [Accessed: 17
th
June 2013]

6. IBEF. (2012) Insurance sector in India. [Online] Available from:
http://www.ibef.org/industry/insurance-sector-india.aspx [Accessed: 17th
June 2013]

7. IDBI Federal. (2013) Products. [Online] Available from:
http://www.idbifederal.com/Products/Pages/default.aspx [Accessed: 17th
June 2013]

8. SBI Life. (2013) Smart-shield. [Online] Available from:
http://www.sbilife.co.in/sbilife/content/home [Accessed: 17th June 2013]

9. ICICI Prudential. (2013) Term plans. [Online] Available from:
http://www.iciciprulife.com/public/default.htm [Accessed: 17th June 2013]

10. LIC. (2013) Individual plans. [Online] Available from:
http://www.licindia.in/ [Accessed: 17
th
June 2013]