19-12-2012, 05:37 PM
AN ANALYSIS OF CUSTOMER PERCEPTION REGARDING POSITIONING OF PUBLIC VS. PRIVATE LIFE INSURANCE COMPANIES IN INDIA
ANALYSIS OF CUSTOMER PERCEPTION.doc (Size: 668 KB / Downloads: 47)
Executive Summary
Over the last five years, the life insurance industry has witnessed a sea change in terms of product offering, service, risk management, fund option and others. Customers are now much more aware about life insurance and its benefits. What is more, in just a short period of time, life insurance has become amongst the most exiting industry to work in or partner with, demonstrating the immense job opportunity it has created. In fact, today private sector insurance companies have increased their share in the total market to nearly 34 percent, which is much higher than most industry estimates. The life insurance segment has grown at a rate of 17 percent for the entire market in fiscal 2005, with the new companies posting a growth of more than 120 percent .the act prescribed a minimum paid up capital of $22 million with a 26 percent cap on foreign equity in an insurance industry.
The dissertation aims at studying the customer perception regarding the public life insurance co.- LIC vis a vis private life insurance companies – Bajaj Allianz. In the issertation the focus is judjing the relative positioning of both the companies in the mind of the customer, the factors governing customers’ need for life insurance, factor governing the choice of product plans and factors governing the customer preference for a particular life insurance company.
Introduction
Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood that the following contents is by no means description of the terms and condition of an LIC policy or its benefits or privileges.
What is life insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his income) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
• The data of maturity
• Specified dates at periodic intervals, or
• Unfortunate death, if it occurs earlier
Among other things the contract also provides for the premium periodically to the corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates risk, substituting certainty for uncertainty
and comes to the timely aid of the family in the unfortunate event of death of the
breadwinner. By and large, life insurance is civilisation’s partial solution to the
problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:
Life insurance Vs. Other savings
Control of insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all materials facts is embodied in this important principle, which applies to all forms of insurance.
At the time of taking a policy, policyholder should ensure that all question in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.
Protection:
Savings through life insurance gurantee full protection against risk of death of
the saver. Also, in case of demise, life insurance assures payments of the entire
amount assured (with bonuses wherever applicable) whereas in other savings
schemes, only the amount saved (with interest) is payble.
Aid to thrift:
Life insurance encourages thrift. It allows long-term savings since payments can be made effortlessely because of the easy installment facility built into the scheme. (premium payment for insurance is either monthly, quarterly, half yearly or yearly).For example: the salary saving scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one’s salary. In this case the employer directly pays the deducted premium to LIC. The salary saving scheme Is ideal for any institution or establishment subject to specified terms and conditions.