Opinion Survey of Life Insurance Policy Holders in Eluru of West Godavari District Dr R

IJARSCT ISSN (Online) 2581-9429

International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)

Volume 7, Issue 1, July 2021 Impact Factor: 4.819

Opinion Survey of Life Insurance Policy holders in Eluru of West Godavari District Dr R. S. N.Sharma M.Com. M.Phil., MBA. B.Ed., AP.SET., Ph.D Associate Professor and Head, Department of Commerce Ch.S. D. St Theresa’s Degree College for women, Eluru (AP)

Abstract: Insurance is nothing but giving assurance for recovery of Loss. If Head of the family dies unfortunately, suddenly due to any reason, the dependent family members may land in troubles and may not in a position to earn their livelihood. If the life of that head of the family is insured, certain amount of money will be paid to the legal heirs which they can use it for their needs. In this context which life insurance company is to be considered for taking the life policy is a problem. Agents of different life insurance companies approach them for their profession. All the public may be in dilemma in choosing the life insurance company. They may take different policies of different companies. At this juncture, the researcher has thought it necessary to conduct survey in the selected locations to know more about the awareness of people with regard to life insurance and to know about which life insurance company has more public confidence. For this the study has been conducted basing on primary data collected directly from the respondents. The collected information has been tabulated, graphically represented and analysed with the help of calculations and finally conclusions drawn.

Keywords: Insurance, Life Insurance, Claim Settlement, Premium.

“For almost seventy years, the life insurance industry has been a smug sacred cow feeding the public a steady line of sacred bull.” ----Ralph Nader

I. INTRODUCTION Insurance is providing assurance for recovery of loss that may happen either to life of a person or to property, goods or valuables. When a policy is taken against the risk of death or disability that is life insurance, if it is taken to cover the loss to goods or property against fire accidents or some other risks that is general insurance Life Insurance: Life insurance is a contract between insurer and insured. Where the insurer is Life Insurance Company, which agrees to pay certain sum of money on occurrence of death or other specified incident such as critical illness to the insured. The person who takes assurance as above is insured. The insured is required to pay certain amount periodically to the insurer. This is referred as premium. The life insurance contract remains in force until the insured pays premiums. When head of the family dies suddenly, the dependent family members have to suffer for their livelihood and other needs. However, death is certain. In case of other types of risks, they may or may not happen. However, death happens definitely and suddenly, if it happens, people suffer a lot. Insurance is of great use in this regard. Insurance is nothing but giving assurance for the recovery of loss. There are two parties in insurance: Insurer and insured.  Who gives assurance for recovery of loss is insurer.  Who takes that assurance is insured. The agreement between the parties is insurance contract. The consideration for giving assurance for the recovery of loss is premium, which is to be periodically paid by the insured for continuation of risk coverage1. Insurance companies are risk bearers. They bear risk in return for a premium. Therefore, insurance is an arrangement by which the losses experienced by a few are spread over several who are exposed to similar risks. The present study is about the perceptions of Life insurance policy holders in Eluru of West Godavari District. Copyright to IJARSCT DOI: 10.48175/IJARSCT-1563 631 www.ijarsct.co.in IJARSCT ISSN (Online) 2581-9429

International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)

Volume 7, Issue 1, July 2021 Impact Factor: 4.819

II. OBJECTIVES OF THE STUDY 1. To study the importance of Life insurance. 2. To evaluate the perceptions of life insurance policy holders of Eluru of West Godavari District. 3. To analyze the perceptions of life insurance policy holders of Vatlur and Strampadu villages of West Godavari District. 4. To make a comparative analysis between the above two. 5. To draw findings and conclusion and to provide suggestions.

III. RESEARCH PROBLEM Life insurance provides financial protection to the people who take life policies against risk of death. Head of family who is only the bread winner if dies suddenly due to any unexpected reason or incident, the dependent family members land in troubles. They may not be in a position to move forward to satisfy and fulfill their various needs due to lack of financial resources and income sources. In this context, Life insurance provides them financial assurance with which they can meet their various requirements. In India there are 23 life insurance companies and only one company Life Insurance Corporation of India is working in public sector. All these companies have been catering the life insurance needs with different plans with a large variety of services for many years. Some people are approaching private life insurance companies and some are giving preference to Life insurance companies in public sector. Some people might have taken life policies from both private and public life insurance companies. Researcher has thought it necessary to analyze the reasons of people in selecting a company for taking a policy and to find the level of awareness about life insurance in public in the specified areas.

IV. HYPOTHESIS OF THE STUDY The research project is proposed to be taken up with the following hypothesis. Most of the people who are in the need of life insurance prefer Life Insurance Corporation of India for taking policies as it is in the public sector. People feel assured with the public sector companies than the companies in private sector.

V. METHODOLOGY The study completely depends on Primary data. 100 people from eluru are selected as a convenient sample from eluru for study. This group consists of employees, business people and others. For comparative analysis the same type and size of sample consisting same groups of people is planned to select from vatluru and satrampadu vilaages of West Godavari District. For this the researcher will directly meet and interact with the people in the above said areas to collect data.

VI. REVIEW OF LITERATURE The Research reporter reviewed various sources of the literature, which are related to the chosen topic. They are given below. *Venkata Ramani k; Dr.R.Mohan Kumar; Dr.G.Brinda (2015): “A study on the attitude of consumers and insurance agents towards the proposed increase in Foreign Direct Investment (FDI) in insurance sector in India”. International Journal of Scientific and Research Publications, Volume5, Issue2, Feb- 2015. ISSN-2250-3153.Inthis study, the researchers analyzed that the respondents welcome the Government decision to increase FDI capital in insurance sector of India. They are satisfied with the services of private insurance companies but they are in the view that competition in industry enhances the quality in service. *R.Amsaveni and Indira Priyadarsini (2015) “Attitude of LIC policy holders with special reference to Poll chi Taluk.” Indian journal of reaserach-vol4/issue: 3 March 2015/ ISSN-2250-1991.Researchers analyzed the attitude of LIC policyholders by taking a sample of 100 holders in Pollachi taluk in tamilnadu. Study is conducted through questionnaires. Most of the policyholders know about LIC of India and its insurance products. They are getting information from LIC agents. Majority of the policy holders are in the

International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)

Volume 7, Issue 1, July 2021 Impact Factor: 4.819

age group between21to 40. Most of them are taking money back policy; they prefer to take for a period of below 10 years, Most of them are satisfied with the services of LIC. They know about the other private Life insurers also. It was suggested that to improve the life business LIC of India. The product terms and conditions should be completely transparent and simple to understand, the products and their uses must be advertised in various media channels, and distribution channels must be strengthened.

VII. SCOPE OF RESEARCH The study is confined to perceptions life insurance policy holders of Eluru and Satrampadu, Vatluru villages of West Godavari district only

7.1 Statement of Problem Life insurance provides financial protection to the people who take life policies against risk of death. Head of family who is only the bread winner if dies suddenly due to any unexpected reason or incident, the dependent family members land in troubles. They may not be in a position to move forward to satisfy and fulfill their various needs due to lack of financial resources and income sources. In this context, Life insurance provides them financial assurance with which they can meet their various requirements. In India there are 23 life insurance companies and only one company Life Insurance Corporation of India is working in public sector. All these companies have been catering the life insurance needs with different plans with a large variety of services for many years. Some people are approaching private life insurance companies and some are giving preference to Life insurance companies in public sector. Some people might have taken life policies from both private and public life insurance companies. Researcher has thought it necessary to analyze the reasons of people in selecting a company for taking a policy and to find the level of awareness about life insurance in public in the specified areas.

7.2 Objectives of the Study 1. To study the importance of Life insurance. 2. To evaluate the perceptions of life insurance policy holders of Eluru of West Godavari District. 3. To analyze the perceptions of life insurance policy holders of Vatlur and Strampadu villages of West Godavari District. 4. To make a comparative analysis between the above two. 5. To draw findings and conclusion and to provide suggestions.

7.3 Hypothesis The research project is proposed to be taken up with the following hypothesis. Most of the people who are in the need of life insurance prefer Life Insurance Corporation of India for taking policies as it is in the public sector. People feel assured with the public sector companies than the companies in private sector.

7.3 Research Methodology The study completely depends on Primary data. 100 people from eluru are selected as a convenient sample from eluru for study. This group consists of employees, business people and others. For comparative analysis the same type and size of sample consisting same groups of people is planned to select from vatluru and satrampadu vilaages of West Godavari District. For this the researcher met and interactacted with the people in the above said areas to collect data.

7.4 Data Sources The total study depends on primary data collected directly from respondents considered conveniently from Eluru town, and from Satrampadu and Vatluru villages.

7.5 Statistical Tools Averages, percentages, trend percentages, tables and charts Copyright to IJARSCT DOI: 10.48175/IJARSCT-1563 633 www.ijarsct.co.in IJARSCT ISSN (Online) 2581-9429

International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)

Volume 7, Issue 1, July 2021 Impact Factor: 4.819

7.6 Limitations of the Study The survey was conducted in Eluru town, Satrampadu and vatluru villages taking 100 respondents from each area. 100 respondents were considered from each area as a convenient sample. People of other areas may express different opinions.

7.7 Data Analysis The study completely depends on Primary data. 100 people from eluru are selected as a convenient sample from eluru for study. This group consists of employees, business people and others. For comparative analysis the same type and size of sample consisting same groups of people is planned to select from vatluru and satrampadu villages of West Godavari District. For this the researcher met the respondents and interacted with the people in the above said areas to collect data ELURU

A. Sample Size and Particulars Sample size-100 respondents Number & percentage Category Number % in total Employees 33 33% Business people 33 33% Others 34 34% total 100 100 Source-primary data (1.A) Sample Size and Particulars Sample size and particulars

Employees 34 33 Business people Others 33

Source-primary data Sample size taken for study is 100 consisting of 33 employees; 33 business people and 34 others. This is a convenient sample. People working in government or private sector are taken in employees group, people engaged in different types of businesses are considered in business group; people belonging to self employment , house wives and others are included in ‘others’ group

B. Rural Survey (Satrampadu & Vatluru) Sample size-100 respondents Number & percentage Category number % in total Employees 33 33% Business people 33 33% Others 34 34% total 100 100 Source-primary data Copyright to IJARSCT DOI: 10.48175/IJARSCT-1563 634 www.ijarsct.co.in IJARSCT ISSN (Online) 2581-9429

International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)

Volume 7, Issue 1, July 2021 Impact Factor: 4.819

(1.A) Sample size and particulars Sample size and particulars

34 33 Employees Business people Others 33

C. Rural Survey (Satrampadu & Vatluru) Sample size-100 respondents Number & percentage Category number % in total Employees 33 33% Business people 33 33% Others 34 34% total 100 100 Source-primary data (1.A) Sample size and particulars Sample size and particulars

34 33 Employees Business people Others 33

International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)

Volume 7, Issue 1, July 2021 Impact Factor: 4.819

Table 1: Analysis of perceptions of Life insurance policyholders on various aspects (Eluru)

Source: Primary data E-excellent G-good A-average N-no service B-best N-not suited O-old Table 2: Opinion survey of Life insurance policyholders on various aspects (Eluru)

Source: Primary data E-excellent G-good L-late Q-quick S-slow L-late T-traditional Table 1: Analysis of perceptions of Life insurance policyholders on various aspects (Satrampadu & Vatluru)

Source: Primary data E-excellent G-good A-average N-no service B-best N-not suited O-old Table 2: Opinion survey of Life insurance policyholders on various aspects (Satrampadu & Vatluru)

Source: Primary data E-excellent G-good L-late Q-quick S-slow L-late T-traditional

International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)

Volume 7, Issue 1, July 2021 Impact Factor: 4.819

VIII. FINDINGS 1. On the whole in both urban and rural areas in all groups of people, more than 80% of people are taking Life policies from only LIC. The remaining people are taking private life policies. 2. When compared to others employees higher in number in urban and rural areas, Others group lower in number in both the areas are telling that services are excellent and good respectively. The remaining people from all groups comparatively lesser in number are expressing average and poor services about the LIC agents. 3. On an average more than 85% people in all groups in both urban and rural areas feel that LIC policies are good and remaining people are in view that they are not good. 4. On an average more than 80% people in all groups in both urban and rural areas feel that LIC policies are best suited and remaining people are in view that they are not good 5. On an average more than 60% people in all groups in both urban and rural areas feel that Claim settlement process is easy and good remaining people are in view it is average. 6. On an average more than 60% people in all groups in both urban and rural areas feel that Claim settlement period is easy and good remaining people are in view it is average. 7. On an average more than 50% people in all groups in urban and 43% in rural areas feel that Loans on policies processing time is ‘Quick’ and 40% people in all groups in urban more than 50% from all groups in rural areas are expressing that it is slow and remaining people are in view that it is late. 8. On an average more than 64% people in all groups in urban and 50% in rural areas feel that traditional are better.36% of all groups of people in urban and 7% of all groups are preferring ULIP policies. 9. On an average more than 86% people in all groups in urban and 50% in rural areas are recommending LIC .14% of all groups of people in urban and 7% of all groups are recommending private life policies. 10. On an average 26.33% people in all groups in urban and 20% in rural areas are only purchasing life insurance policies from their savings.

IX. SUGGESTIONS Both LIC and Private Life insurance companies are to make some more efforts to create awareness among public about life insurance. In rural areas when compared to urban areas are to know about importance of life insurance and types of life policies 1. Regarding claim settlement, some life insurance companies are clearing off less than 90% of the total claims intimated and admitted. Necessary measures must be undertaken by IRDA to bring up their percentage of claim settlement. 2. Many more consumer education programmers are to be conducted and projected through different kinds of media to bring awareness among the consumers about the benefits and risk factors of policies that they are taking. 3. Most of the Unit Linked Insurance policyholders are losing their paid premium amounts when they withdraw money due to stock market unexpected falls. Risk factors of these policies are not known to them. IRDA is to focus much attention on this and try to educate the policyholders about market risks and fund maintenance charges 4. Insurance density and penetration, though improved better when compared to the past levels, they are still to be improved to much more extent to cater the insurance needs of the people.

X. CONCLUSION As per the perceptions of selected policyholders of Life insurance Corporation of India with regard to quality in service, public confidence and duration and percentage of claim settlement are the most advantages to Life Insurance Corporation of India. It can be concluded that though the performance of Life Insurance Corporation of India has been being affected to some extent due to competition from private life insurers, Life insurance Corporation has been being able to hold its giant market over the private life insurers. Life Insurance Corporation though only one company in public

International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)

Volume 7, Issue 1, July 2021 Impact Factor: 4.819

sector, it has been being able to hold his giant market share by competing with 23 Life insurance companies in private sector as the public have great confidence on it. Not only for holding it for also improving it Life insurance Corporation must focus much more attention in designing insurance products and communicating the same to target customers. Private life insurance companies also must take many more efforts to improve quality in designing insurance products and to improve the public confidence

REFERENCES [1]. Annual Reports of LIC (1990-91 to 2013-14) [2]. A. K. Jain (2004),”Indian Life insurance industry: After LPG,” The Journal of Insurance Institute of India,