“A STUDY ON CUSTOMER BEHAVOUR WITH RESPECT TO

INSURANCE COMPANY”

Submitted to:

Aurora Business School,

Hyderabad.

Under the Guidance of:

Mrs. Meghana

Course Coordinator

Aurora Business School.

Submitted by:

B.Jahnavi

DM-05-008

Aurora Business School.

1
 ACKNOWLEDGEMENT

I would like to begins my report by extending a sincere word of thanks to Mr. MANMOHAN
KATKAM, Branch Manager, TATA-AIG LIFE INSURANCE COMPANY for giving me
an opportunity to work on this project, as part of my academic program. It had been a very
knowledgable experience for me working on this project. This project help me enhanced my
level of confidence a lot.

I would like to show my sincere gratitude to my Unit Manager TATA-AIG LIFE INSURANCE
COMPANY: Mr. Allu Venkat Narendra (company guide) for giving me the opportunity to
work in his esteemed organization.

I would like to thank Mr. Allu Venakt Narendra, faculty member Mrs. MEGHANA, AURORA
BUSINESS SCHOOL, HYDERABAD for giving me invaluable suggestion and priceless
guidance without which, and my project, in that he instilled in me a disciplined, systematic and a
logical approach.

I also extend my heartfelt thanks to the management and staff of TATA-AIG LIFE
INSURANCE COMPANY for creating an extremely informal, responsible and flexible work
culture career prospect.

I would like to give special thanks to Dr. RAVI PATURI, (director), AURORA BUSINESS
SCHOOL, HYDERBAD , who had given me a opportunity to work in TATA AIG Life
insurance company.

Last but not the least I would extend my heartiest gratitude to my parents and friends for their
constant support and endeavor that helped me move ahead with my work and make it a success.

2
 DECLARATION

I Jahnavi Bopudi desire that this project titled “CUSTOMER BEHAVIOR” WITH
RESPECT TO INSURANCE COMPANY in reference to TATA AIG LIFE INSURANCE
COMPANY has been carried out by me in TATA AIG Life insurance company , Hyderabad
under the able guidance of Mr. Allu Venkat Narendra, faculty member Mrs. Meghana ,
AURORA BUSINESS SCHOOL, Hyderabad. I further declare that it is my original work as a
part of my academic course.

Jahnavi Bopudi

3
 CONTENTS

CHAPTER-1
EXECUTIVE SUMMARY

CHAPTER-2

INTRODUCTION
 IMPORTANCE OF THE STUDY
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 METHODOLOGY OF THE STUDY
 LIMITATIONS OF THE STUDY

CHAPTER-3
COMPANY PROFILE

CHAPTER-4
INSURANCE MARKET IN INDIA

CHAPTER-5
DATA TABULATION AND ANALYSIS

CHAPTER-5
LEARNING’S
SUGGESTIONS

BIBLIOGRAPHY
ANNEXURE

4
 CHAPTER I

EXECUTIVE SUMMARY

5
 EXECUTIVE SUMMARY

As the title of the project suggests the main objective of this study lies in understanding the
organization and studying and understanding the consumers’ perception and opinion about the
products.
Insurance business has traditionally been at the mercy of tax savers and business booms
in the financial yearned. However the influx of private players in the foray has changed the
business outlook of this industry. The project given an introduction to the concept of insurance
fallowed by its origin and history in the world and in India and then discusses the current market
scenario, further the project gives introductions of TATA-AIG Life insurance company , and the
various products it has for offering to the public.
The project then briefly discuses about the sales interviewing script, methodology of
research, consumer opinion analysis, direct selling and market segmentation etc. The
methodology used in studying and understanding the perceived views of consumers towards the
product was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs
and suggestions have been offered there from. Further the project gives introductions of TATA –
AIG Life insurance company and the various products it has for offering to the public.
Market place is very competitive and dynamic in nature. Time to time understanding and
innovation is the only solution to exist in those hyper active markets. Therefore this exploratory
research emphasizes on the perception and behavior of consumer and penetration of TATA-AIG
Life insurance products.
There are several units in the market that can be analyzed but the main thrust in this is the
consumer and the perception of his/her towards the products of TATA-AIF Life insurance. The
outcome of this survey would also help TATA-AIG Life insurance in understanding the lead or
lag from its competition on various aspects.

6
The outcome of this project helps them to explore the new products and it can be detailed as
below
(1) Determine which kinds of customers exist, then
(2) Select which ones we are best off trying to serve and, finally,
(3) Implement our segmentation by optimizing our products/services for that segment and
communicating that one (TATA-AIG) have made the choice to distinguish this way.

7
 CHAPTER II

INTRODUCTION

8
 INTRODUCTION

IMPORTANCE OF THE STUDY:

The main aim of the study can be summarized as a study into the customer behavior in the
process of selling of insurance products and thus it is primarily based on the study of consumer
behavior i.e. how individuals make decisions to spend their available resources (time, money,
effort) on various items. As marketers, it is important for us to recognize why& how individuals
make their consumption decisions so that we can make better strategic marketing decisions, if
marketers understand consumer behavior they are able to predict how consumers are likely to
react to various informational & their marketing decisions concerning product, price, promotion
& distribution can be altered according to customer’s perceptions.

9
OBJECTIVES:
The main objective of this project is to study the customer behavior and various reactions of
customers with reference to TATA-AIG life insurance company and suggest ways to improve its
marketing efforts.

1) To study the trends in life insurance market

2) To study the profile of TATA-AIG life insurance company
3) To study the investors behavior with respect to TATA-AIG life insurance
4) To analyze the investors’ perceptions about TATA AIG life insurance

10
SCOPE:

The study is confined to the life insurance market, about the investor preferences towards life
insurance and a specific focus on the TATA AIG life insurance has been made.

1) To understand the psychology of customer behavior and the reactions of the customers
when they are approached.
2) To develop an overall view of the insurance sector in the company
3) To understand the selling mechanism and various techniques involved in the marketing of
insurance products
4) To understand customers perceptions regarding for opting of life insurance

11
RESEARCH METHODOLOGY:

Methodology selected in order to realize the research objective of the present study by interview

RESEARCH DESIGN:

The study conducted is exploratory in nature. It involves a survey of customer for understanding
customer behavior and various reactions of customers in reference to TATA AIG Life Insurance
Company.

DATA SOURCE:
The primary data was collected from the customers

RESEARCH INSTRUMENT:
The research instrument used was a structured closed questionnaire backed by personal intervies
for data collection

SAMPLE SIZE
110 customers

SAMPLING PROCEDURE

Sample size of 100 customers covering various segments like manufacturing, pharmaceutical
industries, construction, services sector and business people from twin cities and surrounding
areas.

The completed questionnaire were compiled , tabulated and analyzed so as to understand and
find solutions, which will guide on reaching the objectives of the study

12
LIMITATIONS:

1) Only life insurance market has been studies

2) Only few investors were considered for the study
3) The study was carried out in twin cities only, hence results cannot be extended to national
level
4) Few respondents are not cooperative enough owing to their busy schedule
5) Time constant had become a hindrance to go for large sampling
6) Possibilities of errors in data collection.

13
 Chapter III
INDIAN INSURANCE SECTOR

14
THE CONCEPT OF INSURANCE
The business of insurance is related to the protection of the economic value of an asset for which
a normal life time exists during which it is expected to perform. However if the asset gets
damaged, destroyed or is made non functional by the occurrence of some unfortunate event the
owner of the assets suffers. Insurance is a mechanism to reduce the financial implications of such
consequences.
The mechanism involves people who are exposed to the same risk come together and agree that
if any one of the members suffers a loss the others will share the loss. Thus people facing
common fund whose amount is determined beforehand on the basis of past data and experiences.
The fundamental underlying principle of insurance is:
1) Losses must be definite and discreet in time and place
2) Losses must not be fortuitous in nature and beyond the control of the insured
3) Losses must be large enough to cause a financial burden
4) Losses must be measurable or calculable and a monetary amount should be determined to
compensate the loss
5) Past history of the specific losses should exist to help the actuaries to estimate frequency
severity and costs involved and determine fair rates of insurance
6) The cost of insurance should be affordable by the parties and should be a fraction of the
value of the insured item
Thus, we see that a large number of homogenous units (people companies, Entities) with
a similar potential for loss exposure must be available for insurance and this is generally
referred to as The law of large numbers

15
INDAIN INSURANCE MARKET
Although insurance in its present form has been brought to India by British and other
colonial powers the concept of collective co-operation to share a particular risk is as old as the
dawn of human civilization.
India was a major trading power in ancient times and some examples of sharing risks can be
found such as ships carried cargo of several traders together instead of a single individual. In the
Mogul army a life annuity was granted to the family on the demise of a soldier against some
regular contribution in his lifetime. The joint family system of India is also an embodiment of the
same concept.
EARLY ATTEMPTS
Life insurance in its modern form come to India from England in 1818 with the formation of the
Oriental life insurance company in Kolkata and with the passage of time Indians were also
covered by this company. By 1818 there were 285 companies operating in India and were
primarily into insuring the European lives, those Indians who were offered were charged an extra
premium of 15 to 20% and treated as substandard lives.
FIRST INDIAN COMPANY
The first insurance company under the title “the Bombay life insurance society” started its
operations in 1870 and started insuring lives of Indians at standard rates. Later” oriental Govt.
life insurance co.” was established in 1874 which emerged as the leading insurance company in
India.
PRE INDEPENDENCE HISTORY
With the various freedom movements various leaders encouraged domestic life insurance
companies to enter the fray. In 1914, there were only 44 companies and in 1940 this number
grew to 195. From here on the growth of the life insurance was quiet steady except in 1947-48
during the partition of India.
NATIONALIZATION OF INSURANCE BUSINESS 1956
After independence our nation was moving towards a socialistic pattern of society and with the
main aim of spreading the concept to rural areas and to channel the money into nation building
activities the government of India nationalized the life insurance business and formed “the life
Insurance corporation of India” by merging about 250 life insurance companies. The life
insurance corporation of India started functioning from 1.9.1956.and today is the largest insurer

16
in the country with one central office, seven zonal offices and over 2,048 branch offices with a
workforce of 1,25,000 employees and over 8,00,000 life insurance agents
INSURANCE SECTOR REFORMS

 In 1993, Malhotra Committee, headed by former Finance Secretary and RBI

Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry
and recommend its future direction. The Malhotra committee was set up with the
objective of complementing the reforms initiated in the financial sector.

 The reforms were aimed at “creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an
important part of the overall financial system where it was necessary to address
the need for similar reforms…” In 1999, the committee submitted the report and
some of the key recommendations included:

i) Structure

 Government stake in the insurance Companies to be brought down to 50%

 Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations

 All the insurance companies should be given greater freedom to operate

ii) Competition

 Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry

 No Company should deal in both Life and General Insurance through a single entity

 Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies

17
  Postal Life Insurance should be allowed to operate in the rural market

 Only one State Level Life Insurance Company should be allowed to operate in each state

iii) Regulatory Body

 The Insurance Act should be changed

 An Insurance Regulatory body should be set up

 Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.

iv) Investments

 Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%

 GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time)

v) Customer Service

 LIC should pay interest on delays in payments beyond 30 days

 Insurance companies must be encouraged to set up unit linked pension plans

 Computerization of operations and updating of technology to be carried out in the
insurance industry

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STATISTICS

Population : 1.07
Billion economies : 4th largest in the world in terms of purchasing power
Parity (PPP) saving rate : Around 20%of GDP
GDP growth rate : over 7.3%
Estimated insurable population : 900 million
Insured population : 70 million people only
Insurance premium as a percentage of GDP: 2%
Size of market, life and non-life : $9.94 billion
Total global insurance premium : $2422 billion
Rate of annual growth year2006-2007
life : 21.57
Non life: 13.5%

NUMBER OF REGISTERED COMPANIES:

Type of business life insurance
Public sector :1
Private sector : 14
Total : 15
General insurance
Public insurance :4
Private :9

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 Total : 13

TOP PRIVATE LIFE INSURERS IN INDIA

NAME OF THE COMPANY
1 ICICI prudential life insurance company Ltd.
2 HDFC standard life insurance company Ltd.
3 MAX New York Life Insurance Company Ltd.
4 OM Kotak Mahindra Life Insurance Co. Ltd.
5 Birla Sun Life Insurance company Ltd.
6 TATA AIG Life Insurance Company Ltd.
7 SBI Life Insurance Company Ltd.
8 ING Vysya Life Insurance Company Ltd.
9 Allianze Bajaj Life Insurance company Ltd.
10 Aviva Life Insurance Company Ltd.

The life insurance market in India is an underdeveloped market that was only tapped by the state
owned LIC till the entry of private insurers. The penetration of life insurance products was 19
percent of the total 400 million of the insurable population. The state owned LIC sold insurance
as a tax instrument. Not as a product giving protection. Most customers were under-insured with
no flexibility or transparency in the products. With the entry of the private insurers the rules of
the game have changed

The 15 private insurers in the life insurance market have already grabbed nearly 21.57%of the
market in terms of premium income. The new business premiums of the 15 private players had
tripled to Rs 13,153 crore in 2004 with the business has fallen.

Innovative products, aggressive marketing and distribution combination that has enabled private
insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who
have always seen life insurance as aa tax saving device, are now suddenly turning to the private
20
sector and snapping up the new innovative products on offer. The growing popularity of the
private insurers sows in other ways. They are coining money in new niches that they have
introduced. The state owned companies still dominate segments like endowments and money
back policies. But in the annuity wrested over 78 percent of the market and in the popular unit-
linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways they are persuading people to
takeout bigger policies. For instance, the average size of a life insurance policy before
privatization was around Rs50,000. That has risen to about Rs. 80,000. But the private insurers
are ahead in this game and average size of their policies is around Rs. 1.1 lakh- way bigger than
the industry average.

SWOT ANALYSIS OF INSURANCE MARKET:

MAJOR STRENGHTS:
1) Premium rates are increasing and so are commissions
2) The variety of products is increasing
3) Prospects except more services from their brokers
4) Flexibility in payment of premium
5) Flexibility in investment option
6) Open office structure
7) Competitive environment

MAJOR WEAKNESSES
1) Insurance companies are often slow to respond to changing needs
2) There is an increasing trend of financial weakness among the companies
3) There are more competitors for agencies to compete with banks and internet players

OPPORTUNITIES
1) The ability to cross sells financial services is barely being tapped and can still be
developed by collaborative efforts
2) Technology is improving to the point that paperless transactions are available

21
 3) The clients increasing need for an “ insurance consultant” can open new ways to service
the client and generate income.

THREATS:
1) The increasing cost and need for insurance might hit a point where a blackflash with
occur
2) Government regulations on issues like health care, mold and terrorism can quickly
change the direction of insurance. Increasing expenses and lower profit margins will hit
on the smaller agencies and insurance companies
3) Increasing expenses and lower profit margins will hit hard on the smaller agencies and
insurance companies
4) Increasing in the number of private players in the market

Factors responsible for the likely success of insurance companies

Several factors are responsible for the likely success of the various insurance companies in
general:
1) Change in the attitude of the population
2) An open and transparent environment created under the IRDA
3) A well-established distribution network
4) Trained professionals to build and sell the product
5) More rationale approach to the investment criteria
6) Encouragement of newer and better products
7) A strigent accounting practice to prevent failures amongst the insurers
8) A level playing field at all stages of development in the sector for all the players.

22
 CHAPTER – IV

COMPANY PROFILE

23
TATA – AIG LIFE INSURANCE COMPANY

SOME FACTS:

 Licensed to Sell : Feb 2001

 Started Operations : Apr 2001
 Head Office : Mumbai
 Accounting Year : Mar – Apr
 Performance Year : Mar - Apr
 Offices : 344 (Jul 08)
 Agents : 61571 (Jul 08)
 Employees – 8156 (Jul 08)

share
AIG
26%

24
 Unit Manager’s
Induction TATA-AIG
Robert
AIG Willumstad
CEO

Sunil Mehta
AIG India CEO

TATA AIG TATA AIG AIG Global AIG AIG Global

LIFE General Investment System Consumer Information
Insurance Insurance Group
Solutions Finance Systems
Group Limited

Dave Sunil Shiney

M.suresh Gaurav Garg Prasad
Grubman Kapoor

AMC Real Estate Pvt Equity

Saurabh Sonthalia Rajesh Agarwal Santosh Senapati

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed
by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the
Tata Group's pre-eminent leadership position in India and AIG's global presence as the world's
leading international insurance and financial services organization. The Tata Group holds 74 per
cent stake in the insurance venture with AIG holding the balance 26 per cent. The company
provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company
was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.

TATA GROUP

The Tata Group is India's best-known industrial group with an estimated turnover of around US$
14. 25 billion (equivalent to 2.6 per cent of India's GDP), covering 91 major companies with
business operations in seven business sectors engineering, materials, energy, chemicals,
consumer products, services and communications and information systems. The Tata brand is

25
India's most respected brand across consumer segments with many national and internationally
renowned product and service brands: Tata Indica, Tata Indigo, Indigo Marina, Tata Safari, Tata
Indicom, Taj Hotels Resorts and Palaces, Tata Consultancy Services, Tata Tea, Tetley, Tata Salt,
Titan, Tanishq, Voltas and Westside. By combining ethical values with business acumen,
globalization with national interests and core businesses with emerging ones, the Tata Group
aims to be the largest and most respected global brand from India, while fulfilling its long-
standing commitment to improving the quality of life of its stakeholders.

American International Group, Inc. (AIG)

American International Group, Inc. (AIG) is the world's leading international insurance and
financial services organization, with operations in more than 130 countries and jurisdictions.
AIG member companies serve commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance networks of any insurer. In the
United States, AIG companies are the largest underwriters of commercial and industrial
insurance and AIG American General is a top-ranked life insurer. AIG's global businesses also
include financial services, retirement services and asset management. AIG's financial services
businesses include aircraft leasing, financial products, trading and market making. AIG's
growing global consumer finance business is led in the United States by American General
Finance. AIG also has one of the largest US retirement services businesses through AIG
SunAmerica and AIG VALIC, and is a leader in asset management for the individual and
institutional markets, with specialized investment management capabilities in equities, fixed
income, alternative investments and real estate. AIG's common stock is listed on the New York
Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

Tata aig offers various insurance, investments and health plans for the individuals and the groups
which are as follows.

26
For Children
Tata AIG offers a range of flexible insurance products for children. Policies dedicated to children
and their key features are as given under.

Life Assure Career Builder financial assistance at key stages of child’s life

Life Assure Educare funding child’s education

Life Assure 21 years Money Saver cash payments in the form of survival benefits at regular
intervals

Life InvestAssure II full life cover

high returns
flexibility of deciding the length of life cover term

Life InvestAssure Flexi unit linked endowment investment plan flexibility to

suite your needs

Life InvestAssure Plus single-premium paying term

security of life insurance policy
potentially higher returns

Life MahaLife Gold steady income and life-long insurance coverage for child

Life Starkid endowment policy dedicated for child’s career and

marriage

Life United Ujjwal Bhavishya unit linked endowment plan arranging finance for
child’s future

For Adults
the Company has a slew of life insurance of plans for adults.

Life Assure Lifeline Plans High coverage at an affordable cost

Life Assure Growth Plans Endowment policy

27
 Keep your money safe and have it grow

Life Assure 21 years Money Saver Cash payments at the end of every 3 years
Life insurance coverage plus the flexibility of periodic
payments

Life Assure Golden Years Plan Endowment policy

Safety as well as returns

Life Easy Retire Annuity plan with Return of Purchase Price

Single premium payment

Life InvestAssure Health Unit linked investment plan

Helps achieve financial goals along with a
comprehensive health policy

Life Hospi CashBack Multiple claims against unforeseen hospitalization

expenses
Money back

Life Health Investor Benefit on diagnosis of 12 critical illnesses

Cover in case of unfortunate death
100% return of premium in case of no claims

Life InvestAssure II Life cover plus high returns

Life InvestAssure Apex Unit-linked life insurance plan

Guaranteed Maturity Unit Price

Life InvestAssure Extra Investment linked insurance plan

Designed for customers of premier banks

Life InvestAssure Care Non-participating unit linked insurance plan

Inbuilt Critical Illness benefit

Life InvestAssure Flexi Unit linked endowment plan

28
 Helps one achieve financial goals

Life InvestAssure Gold flexibility to invest more money

takes care of emergency cash requirements

Life InvestAssure Insta Unit linked plan

Dual benefits of insurance coverage and wealth creation

Life InvestAssure Plus Fllexible insurance plan

Single-premium paying term
Higher returns on premiums

Life InvestAssure Optima Unit-linked insurance solution

Optimise investment returns

Life LifePlus If you outlive the term get premium back

In case of death by natural causes get sum assured

Life MahaLife Gold Good for retirement planning

Provides for steady income and insurance coverage

Life Raksha large cover at a small premium

Life ShubhLife life insurance protection and high returns

Life Health First Covers health contingencies

Life Health Protector Covers cost of major surgery or treatment

For Retirement Planning

if you plan to retire at the age of 60 or 65, you could need to fund your lifestyle for several years
without any regular salary. But if you have invested in a right plan, you can rest assured.

Life Assure Golden Years Plan Endowment policy

29
 If you live past the term you get sum assured along with
a host of bonuses

Life Easy Retire Immediate annuity plan

Single premium payment

Life Invest Assure II Flexible plan

Life cover plus high returns

Life Invest Assure Gold Provides for emergency cash requirements or a steady
post-retirement income

Life Invest Assure Future Custom-made retirement solution

Life Maha Life Gold Steady income and insurance coverage

Life Nirvana Freedom to choose retirement age

Life Nirvana Plus Guaranteed addition of 10 percent of sum assured every

5 years

Life Invest Assure Swarna Jeevan Unit linked non participating pension plan

The Joint Venture – Strengths

 A century of trust and reliability

 Commitment to social responsibility
 Customer focus at all times
 Experience in diverse businesses
 Strong financial and business acumen focus on people development.

30
 CHAPTER- VI
DATA ANALYSIS

31
DATA ANALYSIS AND INTERPRETATION

1. Respondents monthly income details

QUANTUMN OF TOTAL PERCENTAGE

MONTHLY RESPONDENTS
INCOME
5000-10000 39 35%
10,000 -15,000 45 41%
15,000-20,000 16 15%
ABOVE 20,000 10 9%
TOTAL 110 100%

32
 45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
5000 -10,000 10,000 - 15,000 15,000 - 20,000 above 20,000

INFERENCE: 41% of the respondents earning 10,000/- to 15,000/- income, 35% are 5000/-to
10,000/-, 15% are 15,000/- to 20,000/- and 9% of the respondents earning more than 20,000/-

2. PERCENTAGE OF AMOUNT RESPONDENTS WOULD LIKE TO SAVE FROM THEIR

MONTHLY INCOME

PERCENTAGE OF AMOUNT TOTAL PERCENTAGE%

RESPONDENTS LIKE TO SAVE RESPONDENTS
FROM MONTHLY INCOME
5% 14 13%
5% -10% 33 31%
10% -20% 47 42%
20%-30% 9 8%
ABOVE 30% 7 6%
TOTAL 110 100%

33
 45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
5% 5 - 10% 10 - 20% 20-30% above 30%

INFERENCE: this is clear from the above figures that out of 110 respondents 42%
would like to save 10- 20% from their monthly income, 31% of them would like to save
5- 10%, 13% want to save 5%, 85 want to save 20-30% and 6% want to save above 30%
of their income.

3. RESPONDENTS VARIOUS OPTIONS GENERALLY CONSIDER FOR INVESTMENT

RESPONDENTS TOTAL NUMBER PERCENTAGE
OPTIONS OF OF RESPONSES %
INVESTMENTS
FIXED DEPOSITS 29 26%
MUTUAL FUNDS 20 18%
INSURANCE 32 29%
SHARES 25 23%
CHITFUNDS 4 4%
TOTAL 110 100%

34
 fixed deposits
mutual benefits
insurance
shares
chitfunds

INFERENCE: It is clear from the above sample that out 110 respondents 29% like to invest in
insurance, 26% like to invest in fixed deposits, 23% like to invest in shares, 18% like to invest in
mutual funds and 4% like to invest in chit funds.

4. RESPONDENTS OPINIONS ON FACTORS CONSIDER WHILE INVESTING THEIR

MONEY
FACTORS TOTAL NO OF PERCENTAGE%
RESPONSES
PROFITS 37 34%
LIQUIDITY 6 5%
SAFETY 57 52%
TAX BENEFITS 10 9%
TOTAL 110 100%

35
 profits
liquidity
safety
tax bneifits

INFERENCE: 52% of the respondents consider safety while investing the money, 34% return,
9% tax benefits ad 55 of the respondents consider liquidity while investing the money.

5. RESPONDENTS INTRESTED ORGANISATIONS FOR INVESTING THEIR MONEY

INTRESTED TOTAL RESPONSES PERCENTAGE5

ORGANISATIONS FOR
INVESTMENTS
LIC 58 52.72%
TATA – AIG 32 29.09%
ICICI PU LIF 6 5.45%
HDFC 5 4.54%
OTHERS 9 8.18%

36
 LIC
TATA AIG
ICICI
HDFC
OTHERS

FINDINGS: 52.72% of the respondents are interested for investing their money in LIC, 29.09%
in TATA AIG, 5.45% in HDFC, and 8.18% in others.

6. AGE OF THE RESPONDENTS:

RESPONDENTS AGE PERCENTAGE5
BELOW 30 18%
30- 40 39%
40- 50 33%
ABOVE 50 10%
TOTAL 100%

37
 BELOW 30
30 - 40
40 - 50
ABOVE 50

FINDINGS:
1) From the above sample of 110 respondents 18% are below the age of 30
2) From the above sample of 110 respondents 39% are the group of 30-40
3) From the above sample of 110 respondents 33% are age group of 40-50.
4) From the above sample of 110 respondents 105 are the age group of above 50.

OVERALL FINDINGS

1) Majority of the people know about TATA AIG Life Insurance company
2) By this research it is clear that most of the respondents consider safety while investing
their money.
3) Most of the respondents in this research were from IT sector so they need tax benefits
schemes so there is more scope for insurance sector to attract IT sector employees.
4) It is clear by the research that most of the people are choosing LIC for their investments
and less no of people are choosing TATA AIG life insurance to invest their money.

38
5) Hyderbad is a potential city for the marketing of insurance products; it has a mix of high
and middle class, employees and business class people. Further it must be noted that a
large number of software companies have emerged or setup their branches and are
providing handsome compensation packages to their employees.

BIBILOGRAPHY

1) www.tata_aiglifeinsurance.com
2) www.einsuranceprofessional.com
3) www.bimaonline.com
4) www.ciionline.org
5) www.mindbrach.com

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6) www.irdaindia.com
7) Insurance journals
8) Consumer behavior – Leon G.Schiffman and Lazar Kanuk
9) Services marketing – Zeithmal Valorie

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