Iii Life Insurance Services – an Overview

Dr. S. REVATHI, M.Com., MBA., M.Phil., B.Ed., PGDCA., Ph.D., Associate Professor and Research Advisor, Post Graduate and Research Department of Commerce, Periyar EVR College (Autonomous), Tiruchirappalli District - 620 023.

.01.2015 CERTIFICATE

This is to certify that the thesis titled “A STUDY ON MARKETING

OF LIFE INSURANCE POLICIES AND SERVICE QUALITY OF

PRIVATE SECTOR INSURANCE COMPANIES, TIRUCHIRAPPALLI

DISTRICT” submitted by R. RAMJI M.Com., M.Phil., PGDCA., SLET in partial fulfillment of the requirements for the award of Degree of Doctor of

Philosophy in Commerce has been carried out by him independently under my guidance and supervision. The above thesis has not been submitted to any university for any degree or diploma, fellowship or associateship or any other similar title previously.

(Dr. S. REVATHI) Research Advisor R. RAMJI, M.Com., M.Phil., PGDCA., SLET., Assistant Professor, Post Graduate and Research Department of Commerce, Periyar EVR College (Autonomous), Tiruchirappalli District - 620 023.

.01.2015

DECLARATION

I hereby declare that the thesis entitled “A STUDY ON MARKETING

OF LIFE INSURANCE POLICIES AND SERVICE QUALITY OF

PRIVATE SECTOR INSURANCE COMPANIES, TIRUCHIRAPPALLI

DISTRICT” embodies the results of my research work carried out under the guidance and supervision of Dr. S. REVATHI., M.Com., MBA., M.Phil.,

B.Ed., PGDCA., Ph.D., Research Advisor and that I have not submitted the above thesis to any university for any degree, diploma, associateship, fellowship or any other similar title previously.

(R. RAMJI)

ACKNOWLEDGEMENT

I am duty bound to express my sincere and profound gratitude to my esteemed Research Advisor Dr. S. REVATHI, M.Com., MBA., M.Phil.,

B.Ed., PGDCA., Ph.D, Associate Professor, Post Graduate and Research

Department of Commerce, Periyar EVR College, Tiruchirappalli who has been instrumental in orienting me to work on marketing of life insurance policies and service quality of private sector insurance companies - a subject of universal relevance. Her insightful suggestions and critical advice have enabled me to bring out this work in a successful manner. All my expression of gratitude conveys only a fraction of what it means.

I am profusely thankful to the DIRECTOR OF COLLEGIATE

EDUCATION, CHENNAI for having given me permission to do research.

I express my sincere thanks to Dr. N. SELVARAJ M.Sc., M.Phil.,

Ph.D., Principal, Periyar EVR College, Tiruchirappalli for having provided me with all the facilities to complete my research work successfully.

I am thankful to Dr. S.V. SRINIVASAVALLABHAN and

Dr. K. KUMAR , Doctoral Committee Members and Associate Professors,

PG and Research Department of Commerce, National College (Autonomous),

Tiruchirappalli for their continuous encouragement to complete the thesis successfully. I take this opportunity to extend my sincere thanks to all Staff

Members of Commerce Department , Periyar EVR College (Autonomous),

Tiruchirappalli.

I wish to place my regards and deep sense of gratitude to Dr. S. SANTHI ,

Assistant Professor, Department of Management Studies, Shrimathi Indira

Gandhi College, Tiruchirappalli and Dr. S. SASIKALA , Assistant Professor of Statistics, Periyar EVR College, Tiruchirappalli for their instant support in accomplishing this task and providing me with the results of my data by applying appropriate statistical tools.

I take this opportunity to extend my sincere thanks to Dr. K. Radah ,

Department of English, Periyar EVR College (Autonomous), Tiruchirappalli.

My acknowledgements are due to all the Publishers of both the research articles and popular articles of mine in their leading National and International

Journals by giving me an opportunity to write my views and findings.

I take this opportunity to extend my sincere thanks to Durai Samy ,

N. Ramesh , A. Bharath and G. Anusuya , Sales Managers, Agents and

Respondents who have responded to the questionnaires and Librarians of

Bharathidasan University, Madurai Kamaraj University, Annamalai

University, Madras University and Alagappa University .

I express my sincere and profound gratitude with love to my Parents and Brothers for their moral support, encouragement and prayers. I thank Charles , Golden Net Computers , Tiruchirappalli for his timely and perfect typing work.

I thank GOD ALMIGHTY for showering His blessings on me to complete the thesis.

(R. RAMJI) CONTENTS

Chapter Page Title No. No. I. RESEARCH DESIGN 1 Introduction 1 Importance of the study 3 Scope of the study 4 Statement of the problem 5 Objectives of the study 7 Hypotheses 8 Methodology 9 Sampling technique 9 Pilot study 10 Sampling framework 10 Standard deviation of sales managers and agents 11 Standard deviation of policyholders 13 Data collection 14 Statistical tools used 15 Area of the study 16 Administration 23 Period of the study 24 Operational definitions 25 Limitations of the study 27 Chapter scheme 28 II. REVIEW OF LITERATURE 30 III. LIFE INSURANCE SERVICES – AN OVERVIEW 70 Life insurance at global level 71 Life insurance in India 77 Competitive structures 77 Staff strength 84 Life insurance business of private sector companies 85 Private sector life insurance in Tiruchirappalli District 87 Claim to net premium ratio 88 IV. ROLE OF SALES MANAGERS AND AGENTS 90 Sales managers 90 Agents 91 Educational qualification 91 Experience in agency service 93 Training to sales managers and agents 94 Types of training undergone 95 Marketing mix followed 96 Knowledge about types of life insurance policies 97 Market leader strategies followed 99 Market-challenger strategy 100 Market follower strategy 102 Type of marketing strategies (Rivalry) followed 104 Type of marketing strategies (Functional) followed 106 Number of times approaching the prospective policyholders 108 Success rate in getting policyholders 109 Number of policies taken by policyholders 111 Purpose of insuring life 112 Policy details 114 Recommendation for nomination 116 Method of payment of premium 117 Information about bonus added 119 Assurance for additional services 121 Number of times assistance given 123 Problems at the time of granting loan 124 Problems faced in various stages 125 Opinion about hidden charges 127 Opinion about risk coverage aspect 129 Opinion about tax concession 131 V. ANALYSIS OF PERCEPTION OF POLICYHOLDERS 134 AND THEIR PROBLEMS Sex of sample policyholders 134 Marital status of the sample policyholders 135 Types of policies held 136 Reasons for insuring life 138 Nomination provided 140 Influencing catalyst 142 Time taken by agents for sending the policy 144 Policy holding period 146 Method of premium payment 148 Sources of reminders for the payment of premium 149 Mode of payment of premium 151 Value of sum assured 153 Premium paid per annum 155 Percentage of bonus added 157 Assurance given by agents for additional services 159 Problems faced at the time of getting loan pledging policy 162 Opinion about role of sales managers 164 Opinion about role of sales agents 166 Opinion about premium charged 168 Opinion about bonus amount added 170 Opinion about tax benefit in the initial stage 172 Opinion about hidden charges while getting loans 174

VI. PERCEPTION ON SERVICE QUALITY OF 177 PRIVATE SECTOR INSURANCE COMPANIES From sales managers and agents point of view 177 Factor analysis 185 Anova-Oneway analysis 197 From policyholders point of view 199 Factor analysis 208 Multiple regression analysis 225 Anova-Oneway analysis 226 VII. FINDINGS, SUGGESTIONS AND CONCLUSION 229 BIBLIOGRAPHY B 1 APPENDICES Interview Schedule A 1 ✵ Policyholder ✵ Sales Manager and Agent Publications

LIST OF TABLES

Table Page Title No. No. 1.1 Administrative set up of Tiruchirappalli District 24 3.1 Continent wise insurance density and insurance penetration 71 3.2 Comparison of Asian economies on insurance density and 73 insurance penetration 3.3 Continent wise life insurance premium income 74 3.4 Life insurance premium income-Asian countries 76 3.5 Life insurance companies in India (As on 31 st March, 2012) 77 3.6 Number of Private life insurance offices in India 80 3.7 Number of agency licences issued by IRDA for Private sector 81 insurance companies in India 3.8 New policies issued by private sector insurance companies in 82 India 3.9 Total life insurance premium collected by private sector 83 insurance companies in India 3.10 Staff strength of private sector insurance companies as on 84 31.03.2012 in India 3.11 Life insurance business: Private sector insurance companies 85 (Rs. in lakhs) 3.12 Tiruchirappalli Division-Private sector insurance companies 87 Total premium and life insurance premium (Rs. in lakhs) 3.13 Tiruchirappalli Division-Private sector insurance companies 88 Non-life and life insurance claim to net premium ratio 4.1 Educational qualification 92 4.2 Working experience 93 4.3 Types of training undergone 95 4.4 Types of marketing mix followed 96 4.5 Knowledge about types of life insurance policies 98 4.6 Market leader strategies followed 100 4.7 Type of market-challenger strategy followed-Ranking 102 4.8 Type of market follower strategy followed-Ranking 103 4.9 Type of marketing strategies (Rivalry) followed 105 4.10 Type of marketing strategies (Functional) followed 107 4.11 Number of times approaching the prospective policyholders 108 4.12 Success rate in getting policyholders 110 4.13 Number of policies taken by policyholders 111 4.14 Purpose of insuring life 112 4.15 Policy details 114 4.16 Recommendation for nomination 116 4.17 Method of payment of premium 118 4.18 Information about bonus added 119 4.19 Assurance for additional services 121 4.20 Number of times assistance given 123 4.21 Problems at the time of granting loan 124 4.22 Problems faced in various stages 126 4.23 Opinion about hidden charges 128 4.24 Opinion about risk coverage aspect 130 4.25 Opinion about tax concession 132 5.1 Sex of sample policyholders 134 5.2 Marital status of the sample policyholders 135 5.3 Types of policies held 136 5.4 Reasons for insuring life 138 5.5 Nomination provided 140 5.6 Prime influencer to choose private sector insurance companies 142 5.7 Time taken by agents for sending the policy 144 5.8 Policy period opted 146 5.9 Method of payment of premium opted 148 5.10 Sources of reminders for the payment of premium 150 5.11 Mode of payment of premium 152 5.12 Value of sum assured 154 5.13 Premium paid per annum 155 5.14 Percentage of bonus added 157 5.15 Assurance given by agents for additional services 159 5.16 Problems faced at the time of getting loan pledging policy 162 5.17 Opinion about role of sales managers-Urban respondents 165 5.18 Opinion about role of sales managers-Semi-urban respondents 166 5.19 Opinion about role of agents-Urban respondents 167 5.20 Opinion about role of agents-Semi-urban respondents 168 5.21 Opinion about premium charged 169 5.22 Opinion about bonus amount added 171 5.23 Opinion about tax benefit in the initial stage 172 5.24 Opinion about hidden charges while getting loans 174 6.1 Scores and ranks obtained for service quality statements – 178 Sales managers and Agents 6.2 Item and Reliability Analysis 182 6.3 KMO and Barlett’s Test 18 6.4 Communalities 185 6.5 Rotated Component Matrix 187 6.6 Communalities 188 6.7 Communalities 189 6.8 Total variance explained 190 6.9 Rotated Component Matrix 191 6.10 Rotated factor analytic results of agents and sales managers’ 193 perception scale 6.11 Inter-factor correlations, Factor-wise mean, Standard deviation 196 and Cronbach’s Alpha of extracted factors (Sub scales) 6.12 Perception of sales managers and agents - 23 item scale - an 198 analysis of Weighted average scores based on educational level, working experience and types of marketing mix followed 6.13 Anova - Oneway analysis results 199 6.14 Scores and ranks obtained for service quality statements - 200 Policyholders 6.15 Item and Reliability Analysis 205 6.16 KMO and Barlett’s Test 208 6.17 Communalities 209 6.18 Rotated Component Matrix 211 6.19 Communalities 213 6.20 Communalities 215 6.21 Total variance explained 217 6.22 Rotated Component Matrix 218 6.23 Rotated factor analytic results of policyholders’ perception scale 221 6.24 Inter-factor correlations, Factor-wise mean, Standard deviation 224 and Cronbach’s Alpha of extracted factors (Sub scales) 6.25 Effect size and relative importance of the individual dimension 225 6.26 Perception of policyholders - 34 item scale - an analysis of 227 weighted average scores based on sex and marital status 6.27 Anova - Oneway analysis results 228

Chapter - I

Research Design 1

CHAPTER - I RESEARCH DESIGN

INTRODUCTION

Risk is an inherent and integral part of human life and work. The all prevailing risk cannot be eliminated, but can be minimised. One of the ideal devices of combat risks and exigencies is the concept of insurance.

Insurance is a co-operative device which safeguards financially both longevity of human life or premature mishaps where man, out of genuine concern for his dependents, insures his life taking into account the various unforeseeable risk factors that are prevalent everywhere. The maturity amount takes care of not only the dependents of the insured, but also of self, when he is neglected or forsaken by his family members. Middle income groups certainly resort to insurance companies for their future financial needs and commitments.

The salaried group depends upon insurance for saving for the future as well as for tax purposes.

The proper channelling of the insurance companies’ funds have benefited the community at large. The utilisation of people’s money invested in life insurance for planned economic development has helped the country to march forward. The amount amassed through premium is invested in socially desirable and societal oriented projects like housing, electricity, water drainage systems and infrastructure development. Capital is provided for capital

2 accumulation, increase in production and job opportunities. The much needed capital requirements of business and commerce are provided by means of these investments. All these aspects highlight the importance of insurance companies in the modern economic scenario and they are an integral part of investment portfolio of India, not only for the salaried class but also for anyone who can pay a minimum premium in his own capacity for his future security. Even the families from the marginalised class now invest in life insurance policies to protect themselves from unwanted mental stress and financial risks. Life insurance facilitates disciplined savings, protects against untimely demise, guarantees asset protection, steady growth of investment and planning for retirement. Life insurance is civilisation’s partial solution to the problems caused by death.

The insurance companies have come to the doorsteps of every family today, especially after the financial sector reforms. On the recommendation of the Malhotra committee, the Insurance Regulatory Development Act (IRDA) was passed by the Parliament in 1993, with a view to activate an insurance regulatory apparatus for proper monitoring of the insurance companies. Further to this, the year 2000 saw the opening up of the private sector with introduction of the Insurance Regulatory Development Authority (IRDA) Bill, as a part of the liberalisation process. As a result, many new comers entered into the market for between life and non life business. The introduction of private players in the insurance sector has led to greater competition among all the

3 players. As a result of this competition, the customers are presented with a plethora of choices in various categories. The customer service has improved but not up to the satisfaction of customers. Since marketing of life insurance policies is treated as social process, it paves avenues for qualitative and quantitative improvements.

IMPORTANCE OF THE STUDY

Life insurance marketing is the design, implementation and control of programmes seeking to increase the acceptability of a social idea or practice in a target group. It utilises concepts of market segmentation, consumer research idea configuration and communication, facilitation, incentives and exchange theory to maximise target group response.

Absence of life insurance market acts as a deterrent factor to capital formation and economic growth. The life insurance market serves as an important source for the productive use of the economy’s savings.

Life insurance marketing mobilises the savings of the people for further investment in unproductive uses and thus avoids their wastage. It also provides incentives to savings and facilitates capital formation by offering stable rate of interest and bonus as the price of their investment.

Life insurance marketing consisting of expert intermediaries promotes stability in value of different life insurance policies. It also converts latent demand into effective demand and thus enables people to raise their standard of living.

Under these circumstances, the study of marketing of life insurance policies and service quality of private sector insurance companies occupies a place of outstanding significance. This study deals with the role of sales managers and agents in marketing the life insurance policies. It also identifies the problems of policyholders while getting loan pledging policies and their perception towards service quality of private sector insurance companies.

SCOPE OF THE STUDY

With the opening up of the insurance sector at the dawn of the

21 st century, private sector insurance companies now a days, have revised their objectives and have focused their vision, mission, value and culture. By constantly analysing the challenges and opportunities and also considering their strength and weaknesses, private sector insurance companies are designed to plan, price, promote and distribute want satisfying products and services to present and potential consumers.

Life insurance today has emerged as an attractive and stable investment alternative that offers total protection in life, health and wealth. In terms of returns, life insurance policies today offer competitive returns ranging between

7 percent and 9 percent. Besides return, what really increases the appeal of life insurance is the benefit of insurance policies along with health cover benefits.

Consumers today also seek a variety of life insurance policies that offer flexible options, prefer life insurance schemes with benefits unbundled and suitable to

5 their diverse needs. This offers opportunity to life insurance marketers to extend the area of operations.

The intermediaries in the life insurance business and the distribution channels used by carriers will perhaps be the strongest drivers of growth in the private sector insurance companies. Multi-channel distribution and marketing of life insurance policies will be the smart strategy for the Indian life insurance market. While tied agents will continue to play an important role in distribution of life insurance policies, alternative channels like sales managers, corporate agents, brokers, etc will assume a greater role in distribution of life insurance policies. The trend is expected to continue in future.

As the result of liberalisation and globalisation, the competition in the private sector insurance companies is becoming intense. To survive in the competition, the Insurance Regulatory Authority is permitting private sector insurance companies into the pension business without forming separate companies for the purpose. This is likely to provide good business to private sector insurance companies in future.

The above factors highlight the scope of life insurance business and there lies immense opportunities ahead of private sector insurance companies.

STATEMENT OF THE PROBLEM

Life insurance is universally acknowledged to be an institution which eliminates risk substituting certainty for uncertainty and comes as timely and to the family in the unfortunate event of the death of the bread winner. Private

6 sector insurance companies adopt different marketing practices to meet the needs of their targeted market. Customised products, pricing, multi-channel distribution system such as direct selling, bancassurance and corporate selling models serve as strategic tools for penetrating into the market. Advertisement through media and technologies help in communicating the market information to the customers as well as the company. Providing quality service has become the need of the hour.

Life insurance is a device that provides safety, security, risk cover and adequate returns. The material consequences of accidents, items and death, the lack of income after retirement that cannot be remedied, could be financially compensated by insurance, however, the sales managers and agents and policyholders have many problems.

From sales managers and agents’ point of view, they have many problems while marketing life insurance policies at various stages such as application processing stage, premium collection stage, loan application processing stage, money back stage, etc. In addition, they have many problems from marketing side, such as managers do not provide enough support to solve their problems; behaviour of the supporting staff is inadequate; ineffective grievance redressal system for them; and they are discouraged to put forward their points of view on organisational functioning and performance.

From policyholders’ point of view, the first problem is the problems while getting loan pledging policy such as refusing to give application, asking

7 them to come on another day, fixing lesser time in the forenoon session for application, giving lesser quantity of loan than asked by them, insisting for identification, surety, etc.

The second problem is with regard to the role played by sales managers.

The sales managers are not clarifying doubts about policies and they are not willing to help the policyholders. Further they are not sympathetic and punctual.

The third problem is with regard to the role played by the agents. The policyholders are not satisfied with the work done in good faith by agents and about frankness.

The next problem is bonus amount added and tax benefits provided at the initial stage. The policyholders are highly dissatisfied with the bonus amount added and tax benefits provided in the initial stage.

The final problem is that, they are dissatisfied with proficiency, physical and ethical excellence and functionality of private sector insurance companies.

OBJECTIVES OF THE STUDY

The objectives of the study are

(i) To document the growth of private sector insurance companies in India

and to bring out the actual position of life insurance policies.

(ii) To analyse the role of sales managers and agents in marketing of life

insurance policies of selected private sector life insurance companies in

the study area.

(iii) To know the perception of policyholders and their problems towards life

insurance policies of private sector insurance companies in the study

area.

(iv) To analyse the perception of ‘Sales managers and Agents’ and

‘Policyholders’ towards service quality of private sector insurance

companies in the study area.

(v) To formulate suitable suggestions for overall improvement of private

sector insurance companies.

HYPOTHESES

The following hypotheses are framed and tested in this study.

1. The sales managers and agents do not significantly differ in the type of

marketing mix followed.

2. The sales managers and agents do not significantly differ in their problem

faced at various stages.

3. The urban and semi-urban sample policyholder do not differ with respect to

problems faced at the time of getting loan pledging policy.

4. The urban and semi-urban sample policyholders do not differ with respect

to opinion about bonus amount added and tax benefit in the initial stage.

5. There is no significant difference between educational level and working

experience of the sales managers and agents and their perception towards

service quality.

6. There is no significant difference between sex and marital status of

policyholders and their perception towards service quality.

METHODOLOGY SAMPLING TECHNIQUE

A multi stage sampling has been followed in this study. The first stage is the selection of a district. Tiruchirappalli district in the State of Tamilnadu is purposively chosen, as there is a high potential market for life insurance policies. The second stage is the selection of companies. 15 private sector insurance companies namely HDFC Standard Life Insurance Company Limited,

Max New York Life Insurance Company Limited, ICICI Prudential Life

Insurance Company Limited, Kotak Mahindra Old Mutual Life Insurance

Limited, Birla Sun Life Insurance Company Limited, Tata AIG Life Insurance

Company Limited, SBI Life Insurance Company Limited, ING Vysya Life

Insurance Company Private Limited, Bajaj Allianz Life Insurance Company

Limited, Metlife India Life Insurance Company Limited, Reliance Life

Insurance Company Limited, Aviva Life Insurance Company India Private

Limited, Sahara India Insurance Company Limited, Shri Ram Life Insurance

Company Limited and Bharti AXA Life Insurance Company Limited in

Tiruchirappalli District out of 23 companies have been selected because these

15 companies are providing life insurance services at district, state and national levels. The third stage is the selection of sales managers and agents. 224 sales managers and agents from 15 private sector insurance companies have been selected through convenient sampling method. In the fourth stage, 350 policyholders from 15 selected private sector insurance companies have been selected through convenient sampling method.

PILOT STUDY

A pilot study was conducted with the help of a draft interview schedule in the month of July 2013. The researcher has randomly selected 20 sales managers, 30 agents and 50 policyholders from the selected 15 private sector insurance companies, Tiruchirappalli District. After the completion of the pilot study, the interview schedule was modified, split into two and restructured for collecting final data. A copy of each of the interview schedule is presented in

Appendix, both in English and Tamil version. The respondents for this study belong to two categories:

i) Sales managers and agents of private sector insurance companies.

ii) Policyholders or customers.

SAMPLING FRAMEWORK

The population for the study consisted of the sales managers, agents and policyholders of 15 private sector insurance companies in Tiruchirappalli

District. The researcher has adopted convenient sampling method to choose sales managers, agents and policyholders from the 15 selected private sector insurance companies.

The sample size of the respondents for the study was scientifically determined using the formula.

2 ni = (zs i/e)

Where i = 1, 2, 3

Where z is the standard normal variate and the value is 1.96 at 95 percent confidence level, e is the sampling error allowed at 5 per cent level, n i is the required sample size and s i is the standard deviation of the service quality score calculated from the pilot study.

STANDARD DEVIATION OF SALES MANAGERS AND AGENTS

Standard Name of the Company Deviation

HDFC Standard Life Insurance Company Limited 0.140

Max New York Life Insurance Company Limited 0.103

ICICI Prudential Life Insurance Company Limited 0.078

Kotak Mahindra Old Mutual Life Insurance Limited 0.101

Birla Sun Life Insurance Company Limited 0.099

Tata AIG Life Insurance Company Limited 0.104

SBI Life Insurance Company Limited 0.102

ING Vysya Life Insurance Company Private Limited 0.101

Bajaj Allianz Life Insurance Company Limited 0.095

Metlife India Life Insurance Company Limited 0.097

Reliance Life Insurance Company Limited 0.084

Aviva Life Insurance Company India Private Limited 0.109

Sahara India Insurance Company Limited 0.075

Shri Ram Life Insurance Company Limited 0.065

Bharti AXA Life Insurance Company Limited 0.104

The computation of n i, i = 1, 2, 3 are shown below:

2 n1 = (1.96 × 0.140/0.05) = 30

2 n2 = (1.96 × 0.103/0.05) = 16

2 n3 = (1.96 × 0.078/0.05) = 09

2 n4 = (1.96 × 0.101/0.05) = 16

2 n5 = (1.96 × 0.099/0.05) = 15

2 n6 = (1.96 × 0.104/0.05) = 17

2 n7 = (1.96 × 0.102/0.05) = 16

2 n8 = (1.96 × 0.101/0.05) = 16

2 n9 = (1.96 × 0.095/0.05) = 14

2 n10 = (1.96 × 0.097/0.05) = 14

2 n11 = (1.96 × 0.084/0.05) = 11

2 n12 = (1.96 × 0.109/0.05) = 18

2 n13 = (1.96 × 0.075/0.05) = 09

2 n14 = (1.96 × 0.065/0.05) = 06

2 n15 = (1.96 × 0.104/0.05) = 17 ------Total sample size 224 ------

On substituting the value of s i, z and e in the formula given, the sample size arrived at was 224 and it is the lower limit to measure the service quality of private sector insurance companies.

STANDARD DEVIATION OF POLICYHOLDERS

Standard Name of the Company Deviation

HDFC Standard Life Insurance Company Limited 0.124

Max New York Life Insurance Company Limited 0.102

ICICI Prudential Life Insurance Company Limited 0.157

Kotak Mahindra Old Mutual Life Insurance Limited 0.114

Birla Sun Life Insurance Company Limited 0.121

Tata AIG Life Insurance Company Limited 0.104

SBI Life Insurance Company Limited 0.107

ING Vysya Life Insurance Company Private Limited 0.127

Bajaj Allianz Life Insurance Company Limited 0.098

Metlife India Life Insurance Company Limited 0.087

Reliance Life Insurance Company Limited 0.123

Aviva Life Insurance Company India Private Limited 0.145

Sahara India Insurance Company Limited 0.177

Shri Ram Life Insurance Company Limited 0.135

Bharti AXA Life Insurance Company Limited 0.090

The computation of n i, i = 1, 2, 3 are shown below:

2 n1 = (1.96 × 0.124/0.05) = 24

2 n2 = (1.96 × 0.102/0.05) = 16

2 n3 = (1.96 × 0.157/0.05) = 38

2 n4 = (1.96 × 0.114/0.05) = 20

2 n5 = (1.96 × 0.121/0.05) = 22

2 n6 = (1.96 × 0.104/0.05) = 17

2 n7 = (1.96 × 0.107/0.05) = 18

2 n8 = (1.96 × 0.127/0.05) = 25

2 n9 = (1.96 × 0.098/0.05) = 15

2 n10 = (1.96 × 0.087/0.05) = 12

2 n11 = (1.96 × 0.123/0.05) = 23

2 n12 = (1.96 × 0.145/0.05) = 32

2 n13 = (1.96 × 0.177/0.05) = 48

2 n14 = (1.96 × 0.135/0.05) = 28

2 n15 = (1.96 × 0.090/0.05) = 12 ------Total sample size 350 ------

On substituting the value of s i, z and e in the formula given, the sample size arrived at was 350 and it is the lower limit to measure the service quality of private sector insurance companies.

DATA COLLECTION

This study is an analytical one and comprises both primary and secondary data. Secondary data are collected from the books, research journals, publication of IRDA reports, records issued by private sector insurance companies and websites.

Primary data are collected through interview schedule. The respondents for primary data belong to two categories:

i) Sales managers and agents

ii) Policyholders

In the first category, there are 120 sales managers and 360 agents in 15 selected private sector insurance companies. The list of sales managers and agents is received from 15 selected private sector insurance companies. Out of this 480, 46.66 per cent 1 (16 respondents from each block i.e 16 × 14 blocks =

224) is considered, that is, 56 sales managers and 168 agents have been interviewed.

In the second category, there are 3,500 private sector life insurance policyholders in Tiruchirappalli District. The list of policyholders is received from 15 selected private sector insurance companies. Out of this 3,500, 10 per cent 2 is considered, that is, 350 policyholders have (25 respondents from each block i.e 25 × 14 blocks) been interviewed.

STATISTICAL TOOLS USED

Data were organised and analysed with statistical software such as SPSS

11.5 after data collection. Tables are framed with the help of the primary data

1 For a population of 480, the sample size is 214. Robert V. Krescie and Daryle W. Morgan, ‘Determining sample size for research activities’, NEA Research Bulletin, Vol.38 (December 1960), P.99. 2 For a population of 3,500, the sample size is 346. Robert V. Krescie and Daryle W. Morgan, ‘Determining sample size for research activities’, NEA Research Bulletin, Vol.38 (December 1960), P.99.

16 collected. Simple tool namely percentage analysis is used for the purpose of simple analysis.

Chi square test, Kolmogorov Smirnov Test and One way ANOVA are used to test the hypotheses in this study.

Rank order scales are also used for analysis. The rank order rating scale is used where the respondents are asked to rank a set of objects according to some conditions. The qualitative data collected from the sample are quantified and analysed. Likert’s scale normally referred to as summated scales are used to analyse the degree of agreement or disagreement with each of the series of statements related to the attitude objects.

Descriptive statistics such as reliability analysis, Exploratory factor analysis using Principal Component method with Varimax rotation, Multiple regression analysis and Weighted average scores are used to analyse the perception of ‘sales managers and agents’ and ‘policyholders’ towards service quality of private sector insurance companies.

AREA OF THE STUDY

Tiruchirappalli District in the State of Tamilnadu, India has been chosen as an area of the study. Tiruchirappalli, situated on the banks of river Cauvery is the fourth largest city in Tamil Nadu after Chennai, Madurai and Coimbatore with an estimated population of 27,13,858 (as per 2011 Census). It was a citadel of the early Cholas which later fell to Pallavas. Tiruchirappalli is a fine blend of tradition and modernity built around the Rock Fort. Apart from the

Fort, there are several churches, colleges and missions dating back to the

1760s. The town and its fort, now in Tiruchirappalli were built by the Nayaks of Madurai. This city has produced great Tamil scholars whose contributions to

Tamil literature have been very significant. Tiruchirappalli is also a preferred healthcare destination to the population from nearby towns and districts.

The most famous land mark of this bustling town is the Rockfort

Temple, a spectacular monument perched on a massive rocky out crop which rises abruptly from the plain to tower over the old city. It is reached by the flight of steep steps cut into the rock and from its summit it is able to get a fantastic view of the town and its other main landmark, Sri Ranganatha Swami

Temple (Srirangam). Shrouded in a haze of coconut palms away to the north,

Sri Ranganatha Swami Temple is one of the largest and most interesting temple complexes in India, built on an island in the middle of Cauvery River and covering a staggering two and a half square kilometres. There is also another huge temple complex nearby, the Jambukeshwara Temple. It was one of the main centers around which the wars of the Carnatic were fought in the

18 th century during the British-French struggle for supremacy in India.

The city is a thriving commercial centre in Tamil Nadu and is famous for artificial diamonds, cigars, handloom cloth, glass bangles and wooden and clay toys. The city itself is an industrial town, where a number of industries flourish. Tiruchirappalli is a major engineering hub and energy equipment and fabrication centre of India. A number of small scale industries have also sprung

18 up in Tiruchirappalli, mostly around Thuvakudi and Mathur. Leather tanneries are located on the way to Pudukottai. Viralimalai considered an industrial suburb is on the Madurai road. Manachanallur has numerous rice mills supplying polished rice all over Tamil Nadu and outside is located about 7 km from Main Guard gate. The economy of the city is driven to a certain extent by

IT/ITES companies encouraged by the support from state government. A dedicated stretch of land has been identified and developed to increase the state’s share in national IT/ITES exports. The important industries are BHEL,

OFT, HAPP and Golden Rock Railway Work Shop. Monuments aside, the city offers a good range of hotels and an excellent local bus system.

Tiruchirappalli is famous for the number of Christian Churches it contains-it is said to have the greatest number of chapels in India. The most famous are Holy Redeemer’s Church (Sagayamatha Koil), St. Lourdes Church, and The Cathedral. Tiruchirappalli also is famous for Arcot Nawab Masjid (one of the oldest), with its large water storage tank (Ahil).

Many private sector insurance companies and private cellular operators have branches in Tiruchirappalli District after liberalisation.

Geography and climate

The topology of Tiruchirappalli is flat. It lies at an altitude of 78 m above sea level. The river Kaveri (also called Cauvery) and the river Coleroon

(also called Kollidam) flows here, the latter forms the northern boundary of the city. There are few reserve forests along the river Cauvery, located at the west

19 or the north-west of the city. The southern and the south-western part of the district are dotted by several hills which are thought to be an offset of Western

Ghat Mountain range – the soil here is considered to be very fertile. As two rivers flow through the city, the northern part of the city is greener than other areas of the city.

Tiruchirappalli has a moderate and pleasant climate, with humidity slightly above normal. The city experiences mild winters and humid summers.

The timing of the monsoon in this part of the country has lately become unpredictable, with the rainy season starting from mid-October until early-

November and the rains then extending until early or mid-January.

Demographics

As of the 2011 national census, Tiruchirappalli has a population of

27,13,858. Males constitute 49.67 per cent of the population and females 50.33 per cent. Tiruchirappalli has an average literacy rate of 83.56 per cent. Male literacy is 90.00 per cent and female literacy 77.24 per cent.

Tiruchirappalli served as the headquarters of the South-Indian Railways

(which was renamed later ‘Southern Railways’, with Madras/Chennai as the headquarters) during the pre-independence era, for a few years. Anglo-Indians, many of whom worked in the ‘Southern-Indian Railways’, started settling in

Golden Rock-Township’ and ‘Crawford’ located within the city, during that time.

Culture

The city has a multi-cultural society with a sizeable presence of Tamil,

English, Telugu, Hindi and Malayalam-speaking population. Sikhhs and Jains also are present in smaller numbers. In addition to Pongal, the ‘Thamizhar

Thirunaal’, Ugadi, Holi and Onam are festivals celebrated by their respective communities retaining their cultural roots.

Poor living in Tiruchirappalli district have rich cultural heritage. The city served as the centre of fine arts since sangam literature. Uraiyur, the old name of Tiruchirappalli city, was the capital of early Cholas. Here lived a number of Tamil Scholars and contributed to the Tamil Literature.

Education

Considered an educational city, Tiruchirappalli has schools and colleges that are hundreds of years old. College Road in Chatram has three colleges and five schools.

Health-care

The city has numerous hospitals. Apart from the Government hospital, several multi-facility hospitals function in the city. The district’s health department is one of the best in terms of implementing government-initiated healthcare schemes. Rare surgical procedures have taken place in some of the hospitals in the city. The polio eradication programme is heavily assisted by various NGOs and clubs in the city. There are many sidhdha / unani / homeopathic clinics.

Roadways

Tiruchirappalli is well connected to various part of Tamil Nadu, by private and public bus services. The Chatram (Main Guard Gate) bus stand, near Rock Fort temple, runs local and [Mofussil (City to Town)] bus services which connect people to nearby towns and villages. Bus services are frequent, once every two to five minutes. One can get buses from Tiruchirappalli to almost any part of the state, due to its geographical location in center of Tamil

Nadu.

On the road infrastructure front, with the completion of highway projects in Tamil Nadu state, Tiruchirappalli will have four track highways from the city branching to destination Chennai, Madurai, Nagappattinam and

Coimbatore. Tamil Nadu Government introduced the Share-Auto scheme in the year 2001. The city has a very wide network of city buses and mini buses.

Railways

Tiruchirappalli is the hub of Southern Railway’s operation to connect this centre of Tamil Nadu to various parts of India, notably regions in Kerala,

Andra Pradesh, Bengal, Maharashtra, Karnataka, Delhi and Madhya Pradesh.

Tiruchirappalli Railway Junction has five branches leading to Madurai,

Rameswaram, Erode, Tanjore and Chennai.

Airways

Tiruchirappalli has an international airport about five kilometres from the city, which operates flights to Indian cities, territories and neighbouring

22 countries including Malaysia, Singapore, Sri Lanka and Gulf by Air Asia,

Indian Airlines, Air India Express, Srilankan Airlines, Mihin Lanka, Kingfisher

Airlines, Paramount Airways. Tiruchirappalli airport is the second largest airport in Tamil Nadu next to Chennai to get international connectivity in

Colombo (Srilanka) in 1981. Nowadays, flights are operated to Gulf countries such as the United Arab Emirates and Kuwait. Plans are being made to upgrade it to a full fledged international airport in the next three years.

Tourism

A number of temples of historic importance stand here in Tiruchirappalli which include Srirangam, Rock Fort, Samayapuram Marriammam Temple,

Thiruvanaikkaval Kovil, Vekkaliyamman Temple, Iyappan Temple, Vayalur

Murugan Kovil, Somarasam Pettai Mariyamman Kovil, Uyyakondan

Tirumalai, Erumbeeshwar Temple, Rettai Malai Sami Kovil, etc.

Planetarium/Science centre

The Anna Science Centre-Planetarium is located 5 Km from Tiruchirappalli

Central bus terminus on Pudukkottai road, close to Tiruchirappalli Airport.

Grand Anicut at Kallanai (24 km) is an ancient dam built (according to legends) by Karikala Chola across the river Cauvery. It still is in use as part of the district’s irrigation system. Mukkombu or upper Anicut (18 Km) is a wonderful picnic spot where the river Kollidam or Coleroon branches off from the Cauvery.

Tiruchirappalli - A low cost high-quality healthcare destination

Fast pace of economic development with increase in the health awareness has led to the growth of the healthcare industry in the city. The city stands next to Chennai in Tamilnadu for affordable and quality healthcare deliveries of high standards.

Area 4,403 sq.kms Population 27,13,858 Altitude 78 metres Summer: Max 37.1°C, Min 26.4°C Temperature Winter: Max 31.3°C, Min 20.6°C Rainfall 83.5 cms Source: http://www.trichycitycorporation.com

ADMINISTRATION

Tiruchirappalli district is divided into 3 revenue divisions, 11 taluks and

14 panchayat unions for administrative convenience. The details are given in table 1.1. The district and taluk head quarters are treated as urban areas and rest of the places are treated as rural areas for the purpose of the study.

Tiruchirappalli district is in the centre of Tamilnadu and bounded by similar districts on all sides. The mix of rural and semi urban areas with some urban pockets is the speciality of this district. The uniqueness of the district is the composition of various types of people with varied levels of education, income, expenditure pattern, occupation, population area and standard of living. These factors have prompted the researcher to select this district as the study area.

TABLE - 1.1 ADMINISTRATIVE SET UP OF TIRUCHIRAPPALLI DISTRICT

Name of Name of Panchayat No. of Sl.No. Revenue Name of Taluk Union Villages Division

1 Tiruchirappalli 1. Tiruchirappalli-East 1. Andhanallur 25 2. Tiruchirappalli-West 2. Manikandam 22 3. Srirangam 3. Marungapuri 49 4. Marungapuri 4. Manapparai 21 5. Manapparai 5. Vaiyampatti 18

2 Lalgudi 6. Lalgudi 6. Lalgudi 46 7. Mannachanallur 7. Pullambadi 33 8. Mannachanallur 34

3 Musiri 8. Musiri 9. Musiri 33 9. Thottiam 10. Thottiam 26 10. Thuraiyur 11. Thuraiyur 34 11. Thiruverumbur 12. Thathaiyangarpettai 25 13. Uppiliapuram 18 14. Thiruverumbur 24

Total 3 11 14 408

Source: Records of the District of Tiruchirappalli.

PERIOD OF THE STUDY

Primary data for the purpose of this research study are collected during the period between August 2013 and July 2014. Secondary data are collected for a period of 8 years from 2005-06 to 2012-13.

OPERATIONAL DEFINITIONS Insurance

Insurance is a social device for minimising risk of uncertainty regarding loss by spreading the risk over a large number of similar exposures to predict the individual chance of loss.

Insurance policy

Policy is the evidence of a life insurance contract. The printed document which contains the written contract between the insurer and insured is called insurance policy.

Insurer

The company is the insurer.

Insured or Assured

The person, whose life is insured on account of some specified event, is called the insured or assured person.

Agent

An insurance company is representative licensed by the state, who solicits, negotiates or effects contracts of insurance and provide service to the policyholder is called an agent.

Broker

In normal circumstances broker is a party that mediates between a buyer and a seller but in life insurance parlance broker is an authorised distributor of life insurance products of multiple life insurance companies to customers.

Beneficiary

It is the person, other than the insured who is entitled to receive benefits under an insurance policy.

Premium

Premium is the price of insurance cover, it is a periodical payment, it may be paid monthly, quarterly, half-yearly and yearly basis.

Claims

It refers to the amount due by the insurance company to various person, who have suffered loss on account of the event insured against.

Bonus

Bonus is the share of profit which the policyholder gets from life insurance company.

Surrender value

The insurer pays the insured cash value to which the policy has built up, if it is surrendered.

Maturity

It is the time when the insurance plan taken comes to an end.

Death benefit

The amount stated in a policy contract as payable upon the death of the person whose life is being insured.

Revival of lapsed policy

When the premium is not paid within the days of grace, the policy will get lapsed. It can, however, be revived within five years from the date of lapses during the life-time of the assured but before the date of maturity, if applicable.

Insurance density

Insurance density is measured as the ratio between total premium income and population of a country.

Insurance penetration

Insurance penetration is measured as a ratio between total premium to

Gross Domestic Product of a country.

IRDA

Insurance Regulatory and Development Authority of India protects the interests of the policyholders, regulates, promotes and ensures orderly growth of the insurance companies.

LIMITATIONS OF THE STUDY

The limitations of the study are as follows:

1. The area of the study is restricted to Tiruchirappalli District. The

evaluation has been made on the data given by 15 private sector

insurance companies having branches in Tiruchirappalli District.

2. Individual agents alone are considered in this study. Others such as,

corporate agents, brokers, etc. are not considered in this study.

3. Since the ‘policyholders’ or ‘respondents’ expression is purely

psychological and the response is elicited on the spot, there may be

some cognitive changes in their attitude as well as their opinion due to

some external clues.

Despite these limitations, this study will be of relevance to private sector insurance companies by giving a clear picture of problems of policyholders and their satisfaction towards service quality of private sector insurance companies.

CHAPTER SCHEME

The present study is divided into seven chapters. The first chapter deals with research design. It covers objectives of the study, statement of the problem, operational definitions, area of the study and limitations.

Review of literature is done in the second chapter. Further this chapter states how the present study differs from the earlier studies.

The third chapter deals with growth of private sector insurance companies in general and life insurance policies in particular at international and national level.

The fourth chapter deals with the role of sales managers and agents of selected private sector insurance companies in marketing of life insurance policies. The data relating to method of marketing mix followed, method of market leader strategies followed, types of market challenger strategies followed, type of market follower strategies followed, etc. are analysed.

The fifth chapter deals with the perception of policyholders and their problems. The data relating to opinion about premium charged, bonus amount added and tax benefits at the initial stage and problems faced at the time of getting loan pledging policy, etc. are analysed.

The sixth chapter deals with the analysis of perception of ‘Sales managers and Agents’ point of view and ‘Shareholders’ point of view towards the service quality of private sector insurance companies.

Findings, suggestions and conclusion are given in the final chapter.

Chapter - II

Review of Literature 30

CHAPTER - II REVIEW OF LITERATURE

An attempt is made to review the literature available from the year 2004 to 2014 with reference to life insurance companies so that a greater insight into the subject is obtained.

Abdalelah Saaty S. and Zaid Ahmad Ansari (2011) 1 in their paper have attempted to find out the factors important for developing a suitable marketing strategy for insurance companies in Saudi Arabia. The study is based primarily on primary data collected randomly from 500 users of insurance, from 400 non-users of insurance and 80 insurance executives through structured questionnaire in Jeddah city of Saudi Arabia. The response from the three groups of respondents were analysed using simple statistical techniques such as percentages, mean, chi-square tests, factor analysis, and ANOVA analysis with the help of Statistical Package for the Social Sciences (SPSS).

The results of the study show that the social and regulatory factors played crucial role in the consumer’s decision in purchasing insurance. However it was also found that the public at large is unaware about the benefits of insurance, and various types of insurance products. The insurance companies shall focus on promotional marketing strategies. The marketer’s primary focus should be on promotional activities. One of the strongest challenges for the

1 Abdalelah Satty, S. and Zaid Ahmed Ansari, “Factors critical in marketing strategies of insurance companies in Saudi Arabia”, International Journal of Marketing Studies, Vol.3, No.3, August 2011, pp.104-121.

31 marketers of insurance shall be to educate the public that insurance in Saudi

Arabia operates on cooperative basis which makes it Sharia’h compliant.

Hence the insurance companies need to emphasize on educative promotional marketing strategy to spread the insurance geographically as well as to motivate the public to purchase insurance. The promotional strategy shall primarily focus on educating the people that insurance in Saudi Arabia is operating on Sharia’h compliant basis and that Saudi Arabian Monetary

Agency, the regulator of the insurance companies is very serious on this issue.

The insurance companies shall focus on the claim settlement process as well.

Acaharya and et al. (2006) 2 analysed the factors that influence the buying decision of the customer regarding general insurance policy. They used a descriptive research design to gather the overall consumer behaviour in the general insurance segment and to determine the factors that influence the consumer. They used a questionnaire based on 14 attributes. A sample of 252 consumers from Hyderabad was used for this survey. Then, based on the principal component analysis, the attributes were grouped into 5 components.

These were quality, accessibility, company type, recommendation and promptness of service. They also suggested that managers needed to have proper interaction with the customers to know their needs and awareness regarding general insurance needed to be increased because most of the customers did not know about the risks that were covered by the products offered.

2 Acharya, T., Mishra, H and Seshaiah, S.V., “Customer preferences in General Insurance Industry in India”, The ICFAI Journal of Services Marketing, Vol.4, No.3, pp.7-13.

Ajay Suneja and Kirti Sharma (2009) 3 in their study have grouped the variables into five factors. They are promotional activities, image of company, customer convenience, financial and non-financial facilities, premium and procedural formalities. The study reveals that the younger the customer, the higher is the importance of promotional activities in choosing an insurance company. It is also found that the lower the income of customers, the higher is the importance accorded to promotional activities, premium and procedural formalities and financial and non-financial facilities while choosing an insurance company. The study also exhibits that the customers of private sector insurance companies consider promotional activities more important than the policy-holders of public sector while choosing an insurance company.

Ali and Ray (2008) 4 in their article found that risk coverage, post retirement needs and tax planning are the important purchase factors for life insurance. They suggested that after sale services such as reminders for premium amount and renewal dates, fund statements, switching of funds to new product etc. must be provided by the life insurance companies. SMS was found to be the preferred mode of communication.

Alierza Miremadi et al. (2011) 5 in their paper used AIDA model of communication when they launch the product first time to grab more attention.

3 Ajay Suneja and Kirti Sharma, “Factors influencing choice of a Life Insurance Company”, LBS Journal of Management and Research, Vol.7, Issue.1, November 2009, pp.44-56. 4 Ali Shahid, A. and Ray, S., “Gap analysis between customer’s expectation and current provisions of Indian Life Insurance Industry”, The ICFAI Journal of Consumer Behaviour, Vol.3, No.3, pp.33-46. 5 Alierza Miremadi, Ramak Raee, Abbas Ramezeni, “Exploring innovative promotional strategies in Life insurance companies (Case study of Iran)”, Proceedings of the conference conducted by International Conference on Sociality and Economic Development IPEDR, Vol.10, 2011, pp.63-67.

The first goal of insurance companies is to grab the attention of customer or prospects, to hold the interested through promoting features placed in second stage. The third stage is to make the product desirable to customer by demonstrating or explaining it. When the customer purchased the life insurance product, the last stage, which is known as action is completed. They found that innovative promotional mix has changed the growth rate of life insurance industry in Iran.

Altaf Ahmad Dar (2011) 6 in his research study suggested that the life insurance companies should come out with clear cut policy details, as many of the respondents had vague ideas about the various benefits and risks involved in a policy. The middle and low socio-economic groups are a potential market to be tapped as they are ready to spend a reasonable amount as premium payable per annum.

Altaf Ahmad Dar and et al. (2012) 7 in their study say that the final goal of promotional strategy is to communicate positive word of mouth among the existing and potential customers about the corporate, product and service.

Their study revealed that the private sector companies are adopting more push strategies to attract and catch the customers.

6 Altaf Ahmad Dar, “Awareness of life insurance – A study of Jammu and Kashmir State”, Shiv Shakti International Journal in Multidisciplinary and Academic Research (SSIJMAR)), Vol.1, No.3, Sept-Oct 2011, pp.1-13. 7 Altaf Ahmad Dar, Raies A Mir, Munaaf Mohammed, Shabir A Bhat, “A Comparative study of promotional strategies by public and private sector insurance companies in India”, SHIV SHAKTI International Journal in Multidisciplinary and Academic Research (SSIJMAR), Vol.1, No.4, November-December 2012, pp.1-11.

Arnika Srivastava and et al. (2012) 8 in their paper say that Indian insurance industry has modified itself with the passage of time by introducing customized products based on customers’ need, through innovative distribution channels, and the Indian life insurance industry searched its way to grow. By adopting appropriate strategy along with proper government support and able guidance of IRDA, India will certainly become the new insurance giant in near future.

Ashraf Imam (2011) 9 in his study focused customer’s perception on investment towards financial services products. The main objective of the study was to evaluate the factors underlying customer perception towards investment in financial products especially towards life insurance policies; and there is also a difference in customer perception of male and female customer. Female customer is savvier and women get ready soon for investment for future as compared to men. Even though the customer’s perception towards Life

Insurance Policies is positive some actions are needed for developing insurance market. The major factors playing the role in developing customer’s perception towards Life Insurance policies are consumer loyalty, service quality, ease of procedures, satisfaction level, company image and company-client relationship.

There are still more areas vacant now like deep rural penetration.

8 Arnika Srivastava, Sarika Tripathi and Amit Kumar, “Indian life insurance industry – The changing trends, Researchers World – Journal of Arts, Science and Commerce, Vol. III, Issue 2(3), April 2012, pp.93-98. 9 Ashraf Imam, “Analysing customer behaviours in life insurance industry”, Asian Journal of Research in Social Sciences and Humanities (AIJSH), Vol.1, Issue.1, September 2011, pp.67-76.

Babita Yadav and Anuhuja Tiwari (2012)10 in their article found that demographic factors of the people play a major and pivotal role in making decision regarding purchase of life insurance policies.

Banumathy and Manicham (2004) 11 conducted a study to examine the customer services provided by LIC at three stages; before the issue of policy, during the operational period of the policy; and at the time of settlement of claims. A sample consisting of 150 policy holders under the LIC branch at

Trichy were selected randomly. A well structured questionnaire was prepared to determine the opinion of policy holders towards the various LIC services.

The study found that LIC agents provided efficient customer services before the issue of policy and also play a major role in influencing the policy holders.

The study concluded that LIC can improve its performance by trying to increase bonus rates, introducing new products at regular intervals and guiding the illiterate and rural folks.

Banumathy S. and Subasini M. (2004) 12 conducted a study to determine the attitude of LIC policy holders towards life insurance business in

Virudhunagar district. For this, a well structured questionnaire was distributed to a sample of 200 respondents. Likert’s scaling technique was used to study the level of agreement and disagreement of policy holders towards services

10 Babita Yadav and Anshuja Tiwari, “A study on factors affecting customers investment towards Life Insurance Policies”, International Journal of Marketing, Financial services and management Research, Vol.1, Issue.7, July 2012, pp.106-122. 11 Banumathy, S and Manicham, S., “Customer services provided by life insurance corporation of India – A case study”, The Insurance Times, Vol.24, No.6, June 2004, pp.30-33. 12 Banumathy, S and Subasini, M., “Attitude of policy holders towards life insurance business in Virudhunagar”, The Insurance Times, Vol.24, No.7, March 2004, pp.25-28.

36 provided by the life insurance companies. To know the overall attitude of the respondents, a list of 10 components was selected which included premium rate, branch location, loan procedure, revival of policy, surrender procedure, bonus rate, services provided by agents, settlement of claims, advertisement and publicity, and safety and social security. They also tried to determine whether age and educational qualifications influenced the customers’ decision for buying LIC policies. They found that the overall attitude of policy holders towards life insurance business in Virudhunagar is good.

Barde Ashok Bhimrao (2011) 13 in his paper says that foreign players are bringing in international best practices in service through use of latest technologies. The insurance agents still remain the main source through which insurance products are sold. For years now, the private players are active in the liberalized environment. The insurance market have witnessed dynamic changes which includes presence of a fairly large number of insures of both life and non-life segment.

Barde Ashok Bhimrao (2011) 14 says that life insurance has to become a mainstay of any market economy since it offers plenty of scope for garnering large sums of money for long periods of time. A well regulated life insurance industry which moves with the times by offering its customers tailor-made products to satisfy their financial needs.

13 Barde Ashok Bhimrao, “Insurance sector in India Present and Future”, International Referred Research Journal, Vol.III, Issue.31, August 2011, pp.25-26. 14 Barde Ashok Bhimrao, “Insurance sector: Is privatisation on the right track”, The Management Accountant, Vol.40, No.12, December 2011, pp.931-935.

Basavanthappa C. and Rajanalkar Laxman (2009) 15 in their article on “Performance of Life Insurance Companies: A comparative study” show that the private insurance companies have made their presence felt and over the years have achieved remarkable progress. There is a big opportunity to these companies in the Indian life insurance sector. The companies have to bring out innovative products to suit the different requirements of the public. A healthy competition in the sector would be beneficial to both the players and also the public.

Bodla and Verma (2007) 16 conducted a study regarding life insurance policies in rural Haryana. The study is based on a sample of 188 respondents selected from five villages of Hissar District. The study showed that the maximum number of policy holders, i.e., 42.02 per cent belonged to the age of

31- 40 years, 70 per cent of them had a monthly income below Rs.8,000 and only 12 per cent of the total respondents were females. Most of the respondents were into private business and had an education only up to school level.

Agents were found to be the main source of information and motivation to rural people. LIC had the maximum (93%) penetration in the rural market as compared to other players with the most preferred policy being the money back policy followed by endowment policies. The role of advertisement was found people to buy insurance policies. It was also observed that people had less faith in private players.

15 Basavanthappa, C. and Rajanalkar Laxman, “Performance of life insurance companies: A comparative study”, Southern Economist, October 15, 2009, p.42. 16 Bodla, B.S. and Verma, S., “Life insurance policies in rural area: Understanding Buyer Behaviour”, The ICFAI Journal of Services Marketing, Vol.5, No.4, December 2007, pp.18-27.

Bodla B.S. and Sushma Rani Verma (2007) 17 in their article “Life insurance policies in rural area and understanding Buying behaviour”, revealed that insurance sector plays a very important role in the development of any economy and it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability.

Camarero and Carmen (2007) 18 analysed the complimentary effects of relationship and service quality orientations on market and economic performance and their role in the relationship between market orientation and performance. An empirical analysis of financial and insurance in Spain was conducted. The study suggested that market performance is affected hugely by relationship management and service quality as two alternative but complementary strategies. However, their effect on the economic performance is basically indirect through market performance.

Chavare D.T. (2012) 19 provide detailed information regarding Brand

Loyalty with respect to Life Insurance Corporation of India. Features of the product, price of the product and perceived image of company are important additional parameters that the respondent considers for decision making firstly and secondly.

17 Bodla, B.S. and Sushma Rani Verma, “Life Insurance Policies in Rural Area understanding Buying behaviour”, ICFAI University, 2007, p.18. 18 Camerero, C., “Relationship orientation or Service Quality? What is the Trigger of performance in Financial and Insurance services?, International Journal of Bank Marketing, Vol.25, No.6, 2007, pp.406-426. 19 Chavare, D.T., “A study of brand loyalty with special reference to Life Insurance Corporation of India”, International Journal of marketing, Financial services and Management Research, Vol.1, No.2, February 2012, pp.73-88.

Deepali Singh and et al. (2011) 20 in their paper say that the value of brand equity is the expected future revenue from the branded product as compared to unbranded product as there is proliferation of brands in the market place; insurance companies try to protect their brand equity by suitable brand differentiation and other means.

Desh Deepak Srivastava and Singh.K (2011) 21 in their article have discussed 7 P’s of marketing. Since insurance product is a service product, insurance marketing needs additional 3P’s of marketing mix-People, Process and Physical Distribution. In marketing of life insurance 7P’s have an important role to make business of insurance. Without these or lose any one all marketing strategies is insufficient to make insurance sales. But if insurance industry considers the 8 th one physical evidence, it make more sale because of signage advantage which the customer wants and, customer behaviour is to gain more facility.

Dhanabhakyam M. and Kavitha M. (2011) 22 in their article stated that the private life insurance company should have a clear vision and mission that should be known to all the stakeholders like employees, agents, customers and business associates. To achieve greater insurance penetration, private sector

20 Deepali Singh, Rahul Priyadarshi, Snehal, Kannaujia and Puneet Kumar., “Relevance of branding in Insurance sector”, International Journal of Scientific and Engineering Research, Vol.2, Issue.9, September 2011, pp.1-10. 21 Desh Deepak Srivastava and Singh, K., “P’s of marketing and life insurance industry – Elements of benefit”, International Referred Research Journal, Vol.2, Issue.24, September 2011, pp.86-90. 22 Dhanabhakyam, M. and Kavitha, M., “Clients satisfaction towards private life insurance companies”, International Journal of Research in Commerce, Economics and Management (IJCM), Vol.1, Issue.4, August 2011, pp.101-104.

40 insurance company is to create a more vibrant and competitive industry, with greater efficiency, choice of products and value of customers.

Dhiraj Jain and Kunal Talach (2012) 23 in their article titled “A study of factors influencing consumer choice of life insurance” aimed at the awareness level as well as the current scenario of life insurance in the state of

Rajasthan and also to evaluate the consumer choice of life insurance products offered by different players. Their findings revealed that majority of the customers agree with the need of insurance as a mean to the protection of family and majority of the customers preferred money back policy.

Divya Negi and Praveen Singh (2012) 24 in their study found the relationship between demographic characteristics of the respondents and five important factors influencing the purchase of a life insurance product namely product quality and brand image, service quality, customer friendliness, brand loyalty and commitment. It is found that product quality and brand image has got the highest mean. Companies should pay more attention in timely and hassle free they suggested that the companies settlement of the claims.

Durvasula and et al. (2005) 25 studied the impact of relationship quality on value, satisfaction and behavioural intentions in the life insurance industry

23 Dhiraj Jain and Kunal Talach, “A study of factors influencing consumer choice of life insurance products”, IJMRS’s International Journal of Management Sciences, Vol.01, Issue.2, June 2012, pp.11-12. 24 Divya Negi and Praveen Singh, “Demographic analysis of factors influencing purchase of life insurance products in India”, European Journal of Business and Management, Vol.4, No.7, 2012, pp.169-180. 25 Durvasula, Antonio C.Lobo, Steven Ly Sons K and Subash C. Mehta, “Impact of relationship quality on values, satisfaction and behavioural intension in the life insurance industry”, Journal of Financial Services Marketing, Vol.10(3), March 2005, pp.244-259.

41 and to compare its predictive power for determining service quality. The study was conducted in several stages. The service quality of life insurance services was measured using a custom developed multi item scale. The scale items included features such as reliability, helpfulness, empathy, responsiveness and product knowledge. Another multi item scale was developed to measure customer - agent relationship. The scale items included trust and confidence with the agent, follow up by agent, agent’s remembering of personal information and agent’s plans for future policies. A total of 219 respondents participated in the study. Data was analysed using correlation and regression analysis. The results of this study showed that both service quality and relationship quality have a strong relationship with satisfaction, value and behavioural outcomes and also significant predictors of satisfaction, value and behavioural intentions.

Researchers concluded that neither service quality nor relationship quality alone is a single best predictor; instead both need to operate together.

Eastman and et al. (2002) 26 in their article “Issues and marketing online insurance products: An exploratory look at agents’ use attitude and views of the impact of the internet” found that agents appeared to be more concerned about non-internet direct marketing.

26 Eastman, Kevin L., Eastman Jacqueline, K. and Eastman, Alan. D. “Issues in marketing on-line insurance products: An exploratory lack at agents’ use, attitudes and views of the impact of the internet”, Risk Management and Insurance Review, Vol.5, No.2, 2002, Pp.117-134.

Fan and Cheng (2006) 27 in their study suggested life insurance companies need to train the sales representatives to an adequate standard in competencies of problem solving, communication, information technology utilization, culture compatibility, emotional intelligence, collective competence and ethics.

Fenn Paul and et al. (2008) 28 in their article have used stochastic frontier analysis to estimate flexible fourier cost and profit functions for

European insurance companies. Separate frontiers are estimated for life, non- life and composites companies. The study draws on standard and poor’s eurothesys data set for the period 1995 to 2001. The finding of the study revealed that the domestic market share of insurers is positively associated with profit efficiency.

Ganesh Dash (2012) 29 updated the perceptions of both the buyers and the sellers of life insurance products regarding 7 P’s and its impact on the customer’s and the executives. This element involves some parameters concerned with both the buyers and the sellers outlined as employees, training, incentives, promoting interaction programmes, educating the customer, understanding the consumer, promoting customer’s involvement and more human approach. India

27 Fan, Chiang Ku & Cheng, Chen-Liang., “A study to identify the training needs of life insurance sales representatives in Taiwan using the Delphi approach”, International Journal of Training and Development, Vol.10, No.3, 2006, pp.212-226. 28 Fenn Paul, Vencappa, Dev Diacon, Stephen Klumpes, Paul O Brien, Chris., “Market structure and the efficiency of European insurance companies: A Stochastic Frontier Analysis”, Journal of Banking and Finance, Elsevier, Vol.32(1), January 2008, pp.86-100. 29 Ganesh Dash, “An Empirical study on the importance of ‘People’(of 7 P’s) in Life Insurance marketing mix, International Journal of Marketing, Financial services to Management Research, Vol.1, No.5, May 2012, pp.19-26.

43 has the privilege of having some of the global insurance giants such AIG, New

York Life, ING, Lambard, Aviva, Chubb, Allianz, Met Life and AXA vying with each other to strengthen their position in the hugely untapped insurance market. In addition, the private players have had a “Second mover advantage” over their predecessor LIC in fruitfully strategising their business options.

Bajaj Allianz has started to establish several sales service offices throughout

India, almost on the similar line of LIC, mostly in tiny neighbourhoods of major cities. Apart from the cost factor, the private life insurance companies also confronted shift challenge from the country’s only public sector life insurance company with respect to selling insurance products. But lately, LIC has fought back and gained market shares lost earlier to the private players.

Ganesh Dash and Basheer Ahmed Khan M. (2011) 30 have tried to investigate the differences in the perception of the executives (of the policy pricing variables) with respect to their age, gender, education, experience and organization. The various elements involved in the policy pricing are outlined as: affordability of the price level, flexibility of terms and conditions, worth of its value (as anticipated by the customer), uniqueness and better than alternate policies, simple and clear price structure and discounts/incentives. The study was conducted in South Odisha spreading over three districts with 200 life insurance executives. They found that age, gender, education, experience and organisation have no effect on the perception (of the policy pricing elements)

30 Ganesh Dash and Basheer Ahmed Khan, M., “Life insurance product pricing in rural Odisha: An Empirical study”, Journal of Empirical Research in Management (JERM), Vol.1, July 2011, pp.31-35.

44 of the executives. They suggested that the price level should be well within the affordability level of the customer and flexibility and convenience of terms of payment must be followed as per the requirements of the potential customer.

Garg M.C. and Anju Verma (2010) 31 in their study suggested that insurance firms should analyze its competitors’ mix while implementing marketing mix and they should be reviewed on regular basis.

Harnam Singh and Madhurima Lall (2011) 32 underlined that the under privileged and rural poor society is still not insured and untouched by the benefits of life insurance. They suggested that insurance companies should recruit qualitative insurance agents so that they will provide after sale service in rural areas.

Inderjit Singh and et al. (2009) 33 in their book on “Insurance and Risk

Management” analyse the different facets of the privatisation of Indian insurance sector. The different approaches of managing risk based capital are discussed.

IRDA Report (2003) 34 revealed that the maximum business activities of private life insurers are limited in the urban areas where a fairly good market network of public sector insurance companies already exists. The ratio of

31 Garg, M.C and Anju Verma, “An empirical analysis of marketing mix in life insurance industry in India”, IUP Journal of Management Research, Vol.9, Issue.2, February 2010, pp.7-20. 32 Harnam Singh and Madhurima Lall, “An empirical study of Life Insurance product and services in rural areas”, International Journal of Multidisciplinary Research, Vol.1, Issue.8, December 2011, pp.290-305. 33 Inderjit Singh, Rakesh Kayal, Surjit Kaur and Sanjay Arora, “Insurance and Risk Management”, Kalyani Publishers, Ludhiana, 2009, p.13. 34 IRDA, Annual Report, 2003-04, p.134.

45 agents of urban and rural agents was 100:76 in public company where it was

100:39 only in case of private companies.

Jampala and Rao (2007) 35 conducted a study on the distribution channels of LIC. The study found that although a number of intermediaries or distribution channels like corporate agents, brokers and referrals have emerged over time, LIC was not able to capitalise on them and hence could not make good business from these channels. They asserted that during the year 2004-05, the new distribution channels contributed just 1.12 per cent of total business of

LIC. However, the effect of these emerging distribution channels on the private players was significant as their business grew by 40.70 per cent during

2004-05. The study concluded that unless LIC uses these new emerging distribution channels effectively and efficiently, it cannot survive in the highly competitive insurance market. LIC needs to find new measures and apply them to improve its business further.

Jawaharlal and Pareek (2004) 36 in their study examined the importance of having efficient customer services in the life insurance industry. Due to severe competition in the insurance industry, it was found that the life insurance providers were creating new strategies to improve service quality. To improve the service quality, certain areas had to be considered. These included analysing the need for having a policy, giving advice to lapse the policy,

35 Jampala, R., and Rao, V., “Distribution channels of LIC”, Insurance Chronicle, January 2007, pp.71-75. 36 Jawaharlal, U. and Pareek, N., “Customer services in life insurance”, Insurance Chronicle, Vol.4, No. IV, April 2004, pp.17-19.

46 suggesting nomination methods, transferring of policies etc. The major lack in service quality was found at the time of claim settlement. The main reason for lack of quality service was lack of education and training of customers, agents, brokers etc.

Jeyakumar (2014) 37 in his study found that variety of insurance products and its features, reputation of the company, image of the company and trust of the company are the key factors in determining the selection of a life insurer in Chennai city. In his study, the observed and suggested that the insurance companies should try to create confidence and maintain the reputation in the minds of consumers.

Joseph (2010) 38 stated that the insurance companies should create, implement and sustain appropriate marketing programmes to create awareness among the people about insurance and effort should be made to satisfy them by providing the products suited to their financial needs.

Joy Chakraborty (2007) 39 a research associate identified that the Indian insurance industry underwent a drastic transformation with the entry of private players who captured a significant market share (26.6%) during 2005-2006, the proposal to increase the FDI limit from 26% to 49% will further enthuse the foreign companies to infuse fresh capital into the Indian insurance sector, thereby fuelling more growth. He clearly traces the challenges faced by the

37 Jeyakumar. J, “Factors influencing the customers to prefer the life insurers – A study with special reference to Chennai city”, Kaveripakkam College Journal of Management Research, Vol.4, No.11, June 2014, pp.40-47. 38 Joseph. V., “Marketing challenges of the Life Insurance Industry”, Southern Economist, Vol.49, No.17, September 15, 2010, pp.44-46. 39 Joy Chakroborty, “Private life insurance companies in India: Growing prospects and challenges, Insurance chronicle – The ICFAI University Press, August 2007, pp.28-39.

47 private players while marketing their products and the measures they have taken for overcoming them.

Kalaimani G. (2012) 40 says that insurance is a financial service for collecting the savings of the public and providing them with risk coverage. The main function of insurance is to provide protection against the possible chances of generating losses. It eliminates worries and miseries of losses by destruction of property and death.

Kannan Kamalanathan V.S. (2010)41 has analysed the problems of private sector insurance companies. The major problem is that the private life insurance companies are heavily depending on market linked policy ULIP and suggested that the private insurers have to increase efforts to design new products that are suitable for the market and make use of innovative distribution channels to reach a broader range of the population.

Kenosi N. Mokolobate and Yvonne Kabeya Saini (2011)42 elucidated that assessing market orientation practices using customer focus, competitor focus and inter-functional co-ordination variable is applicable to the South

African Life Insurance industry. The market orientation scale appears to capture well the construct of market orientation in the South African Cultural

Context and confirms that market orientation is a worthwhile management goal

40 Kalaimani. G, “7P’s of Services Marketing in Insurance and Banking Services”, Journal of Management and Science - JMS, Vol.2, April3, 2012, pp.1-3. 41 Kannan Kamalanathan, V.S., “Private life insurance companies – A long way to Go...”, Variorum,, Vol.1, August 2010, pp.1-6. 42 Konosi N. Mokolobate and Yvonne Kabeya Saini, “An Empirical study of market orientation in the life insurance industry in South Africa”, Proceedings of the conference conducted at New Orieasns, Leuisiana USA, 2011, pp.395-409.

48 to adopt. Measuring market orientation using customer, competitor and inter- functional focus is applicable. The factor loading fitted the market orientation model except for one construct in the customer focus. The importance of including the sale force is being customer focus had the lowest factor loading and so it use is not conclusive. Other studies did not have the same results and concluded that the model for measuring market orientation fitted well. It explores why the sales force construct contributed minimum to the customer focus of market orientation in the South African Life insurance industry.

Khurana S. (2008) 43 in his study attempted to analyse the customer preferences in the life insurance industry based on the plans, purpose of buying the policies by the customers, their satisfaction levels and their future plans to buy new policies. A sample of 200 customers from Hissar city was used for the survey. Out of these 71.9 per cent were males while 28.1 per cent were females. Structured questionnaires were distributed to these respondents and the results were analysed. The results showed that 34.4 per cent of the respondents have term plan out of which 63.6 per cent were of LIC, 28.1 per cent had money back policy out of which 77.8 per cent were of LIC, 28.1 per cent had ULIP plans out of which 22.7 per cent belonged to LIC, The pension plans and the child benefit plans taken by the respondents were from LIC only.

This meant that customer still preferred public sector companies as compared to private sector. Protection (39%) was found to be the main reason for buying

43 Khurana, S., “Customer preferences in Life insurance industry in India”, ICFAI University Journal of Service Marketing, Vol.6, No.3, pp.60-68.

49 a policy as compared to factors like tax rebate, returns, saving etc. The study also showed that only 12 respondents (6.3%) faced some problems and all of these had policies of LIC. The satisfaction level of the customers of HDFC

Standard Life, ICICI Prudential, Kotak Life, Max New York and Birla Sun

Life was 100 per cent while that for LIC, Tata AIG and Bajaj Allianz were 45 per cent, 50 per cent and 50 per cent respectively. Also, only 56.3 per cent of the customers intended to buy new plans from the same company.

Krishna Swami G. (2009) 44 in his book “Principles and Practice of Life

Insurance” explains clearly the history of insurance, advantages of insurance and the role of insurance in the economy and also in the society. The life insurance products, the concepts of premium, investment management and solvency margin are also discussed at length in the book.

Krishnakumar and Kannan (2005) 45 have discussed the position of

Life Insurance Corporation after the advent of private players in the insurance sector. They have stated that the Life Insurance Corporation has been losing its market share to the private players and has to take prudent steps to expand its customer base. They have opined that if greater focus is given to generating new business and service to the existing policy holders, Life Insurance

Corporation can retain its dominant position.

44 Krishna Swami, G., “Principles and practice of life insurance”, Excel Books, New Delhi, 2009, p.22. 45 Krishnakumar and Kannan R., “LIC-Countering threat from private players”, The Journal of Insurance Chronicle, Vol.5, Issue.2, July 2005, pp.24-26.

Krishnamurthy S. and Mony S.V. (2005) 46 in their research stated that some of the challenges faced by the insurance sector pertain to the demand conditions, competition in the sector, product innovations, delivery and distribution systems, use of technology and regulation.

Kumar Krishnan (2005) 47 corroborated that rural penetration remains a haunting challenge to most life insurers due to high poverty levels prevailing in the area. The other problems faced by the insurers in rural India are poor general awareness about life insurance, investment in land and gold by the villagers, non-availability of certificates regarding proof of age and death lack of innovative products made for rural people, lapse of policies due to seasonal and irregular income and permanent health problems.

Kumar (2010) 48 in his thesis evaluated the performance of general insurance companies in the post reform period. The finding of the study revealed that public sector exhibited higher underwriting losses in the post- reform period than the pre-reform period.

Kumar Jegendra (2005) 49 in his study revealed that the life insurance penetration in India is just about 2 per cent of Gross Domestic Product. The life insurance premiums per capital are just Rs.550. The life Insurance Company is the largest player with over 2000 officers after liberalisation and it has

46 Krishnamurthy, S., Mony, S.V., “Insurance industry in India: Structure, performance, and future challenges”, Vikalpa – The Journal for Decision Makers, Volume.30, July-September 2005, pp.93-119. 47 Kumar Krishnan, “Making in road into rural India”, Insurance Chronicle, The ICFAI University Press, August 2007, pp.29-39. 48 Kumar, R., “Performance evaluation of General insurance companies: A study of Post-Reform period”, Ph.D Thesis, Presented to Faculty of Commerce, Punjabi University, Patiala, August 2011. 49 Kumar Jegendra, “Innovative Environment in Renovated Insurance Industry”, The Insurance Times, 2005, Vol.25, No.2, p.4.

51 improved its efficiency and customer services. Among the private life insurance companies ICICI Prudential Life Insurance and Birla Sun Life are the first and second largest players.

Kumar R. and Vaidya K. (2004)50 in their study discussed the possible strategies that could be used by the insurance companies for providing new and innovative products and services as compared to their competitors. They discussed about some of the new offerings by various insurance providers and discussed the possible innovations in the insurance sector with regard to products, customer services, distribution channels, promotion and brand building. They suggested the use of e-service i.e., customer service through

Internet could play a major role in facilitating the process of servicing insurance products to their policy holders.

Lal and Dhanda (2003) 51 conducted a survey of agents, development officers and employees to know their perception towards different variables namely life insurance products, amount of premium, working condition, training programmes, computerisation and efficiency levels etc. The study revealed that there are no significant differences in the opinion of agents, development officers and employees with respect to the other variables.

50 Kumar, R and Vaidya, K., “Differentiation strategies of insurance companies”, Insurance Chronicle, Vol. 6, No. 3, March 2004, pp.43-49. 51 Lal, R. and Dhanda, N., “Life Insurance Corporation of India devising its strategies to meet the challenges of insurance sector reforms”, National seminar on emerging trends in financial services and international business, Guru Jambuheshwar University, Hissar, 2003.

Lauren Strachan and Mornay Roberts-Lombard (2011) 52 state that customer loyalty can be achieved by monitoring complaints and communication with customers, as well as conducting regular surveys assessing the level of trust and commitment. Trust can be obtained by delivering on promises made, which in turn can lead to commitment. Commitment can also be achieved through personalising offerings to the individual needs of customers in order to provide them with a reason to be loyal.

Lavanya Vedagiri Rao (2008) 53 in his article titled “Innovation and

New Service Development in select private life insurance companies in India” has made an attempt to understand how services firms actually innovate. Zonal managers of select ten private life insurance companies in India are interviewed. It is found that all the ten private life insurance companies have a formal new service development unit and research and development department participate in the creation of new services.

Manish Srivastava and Megha Rastogi (2010) 54 in their study say that many married women still rely on their husband’s insurance policy to protect them. Although the insurance in India is an industry which is almost one and a half centuries old, having begun in the 1850s with the Tital Insurance

52 Lauren Strachan and Mornay Roberts Lombard, “A conceptual framework proposition for customer loyalty in the short-term insurance industry – A South African Perspective”, African Journal of Marketing Management, Vol. 3(8), August 2011, pp.207-218. 53 Lavanya Vedagiri Rao , “Innovation and new service department in select private life insurance companies in India”, International Business Information Management Association, Vol.1, pp.128- 135. 54 Manish Srivastava and Megha Rastogi, “Life insurance and working women: A critical study of factors affecting the purchasing decision”, Indian Journal of Marketing, November 2010, Vol.40, No.11, pp.53-61.

Company, the insurance industry still has a long way to go in addressing problems related with working women.

Manvendra Pratap Singh and et al. (2011) 55 in their article say that information technology is used as a mere source of product information and not a real channel of distribution. Online purchases could be made available at least for the purchase of policies with nominal sum assured.

Mike Smit (2005) 56 in his book says that life insurance policy provides cash payment when a person dies. Many people buy life insurance to protect the people who are dependent on them. Others buy life insurance as a way to leave a cash gift to their spouse, children, grandchildren and charities at their death.

Miremadi Alireza and et al. (2011) 57 in their article stated innovative promotional mix could change the growth rate of life insurance industry in

Iran. As there is an association between the market research and survey with flurry of media, it is suggested that efforts need to be diverted by the insurance companies to establish market research department in insurance companies.

55 Manvendra Pratap Singh, Arpita Chakraborty, Raju, G., “Contemporary issues in marketing of life insurance services in India”, International Journal of Multidisciplinary Research, Vol.1, Issued.7, November, 2011, pp.47-61. 56 Mike Smit, “Life insurance: The different types of policies”, Virginia Co-operative Extension Publication, 2005, pp.143-354. 57 Miremadi Alireza, Raeo, Ramak, Rame Zani and Abbas, “Exploring innovative promotional strategies in life insurance companies (Case study of Iran)”, Proceedings of the International Conference on Sociality and Economics Development (IPEDR), Vol.10, May 2011, IACSIT Press, Singapore, pp.63-67.

Mishra M.N. and Mishra S.B. (2010) 58 in their book on “Insurance principles and practice” discuss the prospects of insurance companies, privatisation of insurance industry insurance innovation, corporate governance, bancassurance and international insurance. It includes all the latest provisions of insurance legislation beginning from the totally amended Insurance Act,

1993 to IRDA (Protection of Policyholders Interests) Regulation, 2002. It also deals with the latest development of insurance in India and abroad along with the possibilities of managing the same amicably and also profitably.

Mohammad Karimi and Behzad Hassannezhad Kashani (2012) 59 aim to identify reasons by which customers prefer private insurance covers to public ones. An empirical result in this study show customer preference of private insurance covers over public ones is determined by two human and economic factors. It means that the most influential factor in customers’ buying decisions is insurance employees’ performance and their friends and relatives’ role.

Murthy T.N. and et al. (2009) 60 in their article on “Performance

Evaluation of LIC: Ways of Winning Confidence” conclude that several changes have taken place since opening up of the insurance sector. After liberalization, insurance industry’s outlook has been changed significantly. The

58 Mishra, M.N and Mishra, S.B., “Insurance Principles and Practice”, S.Chand & Company Ltd., New Delhi, 2010, pp.71. 59 Mohammad Karimi and Behzad Hassannezhad Kashani, “Customer preference of private insurance covers in Iran”, African Journal of Business Management, Vol.6(11), March 2012, pp.4276-4281. 60 Murthy, T.N., Raja Babu, P., and Riswana Ansari, “Performance Evaluation of LIC: Ways of winning confidence”, The Journal of Risk and Insurance, The ICFAI University Press, Vol.VI, No.2, April 2009, pp.53-61.

55 number of private players and their innovative products are also made attractive for every social segment. The healthier competition has intensified to increase insurance density and penetration levels in order to fulfil customer needs.

Muthulakshmi (2011) 61 observed in her study that life insurance has become an attractive investment channel along with providing risk coverage against death/accident, tax savings and meeting post-retirement needs, etc.

People like to receive quarterly statement; companies should also inform people about premium payment, its new products and also about switching of funds.

Nagajothi R.S. and Hasanbanu S. (2007) 62 in their article “A study of the insurance prospective in Uthamapalayam Taluk” revealed that insurance has not been on the main agenda of either individuals or corporate. Hence, reforms encompass not merely regulatory intervention but also promotional effort to develop the market.

Nageswara Rao S.B. and Mathavi C. (2007) 63 in their article on “An overview of the private insurance company” observe that the insurance industry is facing a healthy competition which really benefits the public. The public sector LIC should further improve its product varieties and schemes to compete

61 Muthulakshmi, M., “A study on policyholders attitude towards life insurance with special reference to life insurance corporation of India Tiruchirappalli District”, Unpublished Ph.D Thesis submitted to Bharathidasan University, Tiruchirappalli, October, 2011. 62 Nagajothi, R.S. and Hasanbanu, S., “A study of the Insurance Perspective in Uthamapalayam Taluk”, Indian Journal of Marketing, May 2007, p.10. 63 Nageswara Rao, S.B. and Madhavi, C., “An overview of the Private Insurance Company”, In Nalini Prava Tripathy and Prabir Pal (Eds), “Insurance Theory and Practice”, Prentice Hall of India Private Limited, New Delhi, 2007, pp.104-115.

56 with the private sector and also change its attitude further towards service to survive in the market.

Perisamy P. (2010) 64 in his book on “Principle and Practice of Insurance” gives a comprehensive view on the privatisation of insurance business in India.

The background, the ways and the contribution of privatisation of life insurance business to an economy are discussed. The condition for the success of private insurers are dealt with suitably and also in a comprehensive manner.

Phanindra Kumar K. and Parashuramulu B. (2013) 65 underlined that the competition has brought more product innovation and better customer servicing and bring positive influence on the life insurance business. Indian insurance is a flourishing industry, with several national and international players competing and growing at rapid rates. The overall business of life insurance has been significantly increased after privatisation but still a huge

Indian population lives are is being uninsured. Although LIC is a giant player in life insurance business but private insurance companies are moving at a fast pace. Though the income, size and penetration of private insurance companies is less when compared with LIC but the pace with which they are raising their market share is tremendous. Private insurance companies with their new innovative products and better customer services are expanding their business and will certainly give a tough competition to LIC in the coming days.

64 Perisamy, P. “Principles and Practice of Insurance”, Himalaya Publishing House, Mumbai, 2010, p. 86. 65 Phanindra Kumar, K and Parashuramulu, B., “An analytical study of life insurance in Andhra Pradesh”, Asian Journal of Multidimensional Research (AJMR), Vol. 2, Issue.8, August 2013, pp.45-51.

Raja Babu P. (2013) 66 says that the Private Sector Life Insurance

Companies has been making rapid strides in terms of increasing their contribution and market share since 2000 onwards. Private sector life insurance companies have experienced rapid expansion of branches from 13 to 8,768 during the period of 2001-2010. The private insurers are having flexible and competitive nature in terms of services compared with the public sector insurer. Private players play a major role in life insurance business more efficient and customer friendly. They have also jolted and facing stiff competition from the LIC. The biggest challenge before the private life insurer is in a competitive environment amongst life insurers a wide-variety of insurance products, professional consultancy and customer focused service are some of the benefits available to customers. Every time the insurer has constant touch with the customer’s needs and expectations. Hence, all the private players should have to increase the efficiency in order to stand before Giant Corporation of LIC. They are following best practices to reach the target customers. The Private players are taking undue time for redressing complaints due to the paucity and also inefficiency of the staff involved in the process of complaint management in private sector units. Many complaints are pending with them for a longer period of time. Hence, the private players will get experienced and well- exposed staff to attend complaints immediately and as such the complaints are redressed properly. Distributors like individual agents and brokers can be

66 Raja Babu, P., “Challenges of private sector life insurance companies in India”, Research Journal of Commerce and Behavioural Science (RJCBS), Vol.2, No.4, February 2013, pp.1-15.

58 encouraged to maintain their own offices to receive service requests, complaints and suggestions from policyholders. It is clearly evidenced by a favourable economic atmosphere present in the Indian economy and it creates a strong foundation for the development of life insurance industry in India.

Rajendran R. and Natarajan B. (2009) 67 studied the impact of

Liberalisation, Privatisation and Globalisation on Life Insurance Corporation of

India. They concluded that in India the insurance habit among the general public during the independence decade was rare and in the following decades, it slowly increased. There was a remarkable improvement in the Indian insurance industry soon after the acceptance and adaptation of Liberalisation,

Privatisation, and Globalisation in the year 1991. After 1991 the Indian life insurance industry had geared up and was forced to face a lot of healthy competition from many national as well as international private insurance players. The fall in the savings rate and increased competition in the primary market and particularly the aggressive mobilisation by the Mutual Fund posed serious challenges before LIC.

Rajesh C. Jampala and Polavarapu Adilakshmi (2006) 68 have identified the major challenges, for Indian Life Insurance Companies, to be stringent solvency norms, expense over runs, new business strain, low agent productivity, high attrition level of agents, low average premiums and high

67 Rajendran, B. and Natarajan, B, “The impact of LPG on Life Insurance Corporation of India”, Asia Pacific Journal of Finance and Banking Research, Vol.3, No.3, July 2009, pp.43-52. 68 Rajesh C, Jampala and Polavarapu, Adilakshmi, “Emerging Markets, Changing the Landscape of the Insurance sector, Journal of Insurance Chronicle, Vol.6, Issue.3, July 2006, pp.39-43.

59 competition in the market place. They are of the opinion that, there is a great potential for insurance business as the penetration level of insurance to Gross

Domestic Product is very low, and selection of the right quality of business would ensure success for the private players.

Ranjan Jaykant Sabhaya and Manisha M. Panwala (2011) 69 say that the factors affecting buying decision of life insurance policy are age, income, education, awareness about insurer, attitude towards life insurance, occupation and gender among Surat city’s population.

Rao (2007) 70 in his article discussed the effect of liberalisation on the performance of insurance industry. The study revealed that non-life insurance industry performed in the financial year 2006-07 in terms of rising premium volumes, recorded its highest growth rate ever of 23 per cent, with an accretion of Rs.4,626 crore. The premium volume crossed Rs.25,003 crores. The growth rate during the financial year 2005-06 was 16 per cent while during the financial year 2004-05, it was only 12 per cent. The private players whose premiums share in the financial year 2000-01 was Rs.500 crores had taken it to

Rs.8,700 crores, there by increasing their market share up from 4 per cent to 35 per cent.

69 Ranjan Jaykant Sabhaya and Manisha M. Panwala, “A study on factors affecting buying decision of life insurance policy (with special reference to Surat City of Gujarat in India)”, Global Journal of Arts and Management (GJAM), Vol.1(3), March 2011, pp.6-10. 70 Rao, C.S., “Rewarding Reforms”, Asia Insurance Post, August 2007, pp.19-21.

Reddy Sudarshana and Reddy Raghunathe (2004) 71 focused on liberalisation of insurance sector and its impact on LIC in India. They observed that only certain segments of the society, that is, urban areas are being focused by the private sector insurance companies.

Richard Holloway and Rajagopalan Krishnamurthy (2006) 72 are of the opinion that, the success of rural insurance business in India centres around innovative product design, increasing penetration, finding effective and lower- cost distribution channels, education, access and affordability. The risk involved and the adverse experience prevailing in rural area should be considered while intensifying efforts to tackle the rural market. The authors insisted on the introduction of suitable products at a right price and the usage of best practice actuarial technique to re-price and redesign the rural products as necessary, taking into account the actual experience that emerges.

Sandhu and Bala (2006) 73 in their study say that although many researches had been carried out over time to understand the life insurance sector, yet none of them had been able to cover all the features of the different insurance companies. The study concluded that owing to the changing and newly evolving scenarios in the life insurance industry, the research need to be expanded further by including various other aspects like the role of information technology, bank assurance and customer relationship management.

71 Reddy Sudarshana and Reddy Raghunathe., “Liberalisation of insurance sector – Reflection on LIC”, Southern Economist, Vol.43, May 15, 2004, pp.13-14. 72 Richard Holloway and Rajagopalan Krishnamurthy, “Insuring Rural India”, Journal of Insurance Chronicle, Vol.6, Issue.12, December 2006, pp.47-51. 73 Sandhu, H.S. and Bala, N., “Marketing of life insurance services revisited”, Indian Management Studies Journal, Vol.10, No.2, June 2006, pp.1-33.

Sanjay Kanti Das (2012) 74 has concluded that the life insurance sector in India has enlarged by more than twice after the formation of IRDA and LIC is losing its market share in favour of new entrants on private companies.

Sanjay Kanti Das (2012) 75 examined remarkable progress in the Indian insurance industry soon after the acceptance and adaptation of LPG in the year

1991. They say that the threat of new players taking over the market has been overplayed, nationalised players will continue to hold strong market share positions, but there will be enough business for entry to be profitable.

Sanjaykumar and Jagannath Patil (2012) 76 asserted the study by saying the saving and investment awareness was very less in the young age.

They offered the following suggestions: (1) Life Insurance Corporation of India should design and launch products suitable to these groups and increase the awareness as well as Investment. (2) The response to the other Plans of Life

Insurance Corporation of India was low as compared with Insurance Plan. (3) It is necessary to promote the Whole Life Plan, Pension Plan and Unit Linked

Insurance Plan. (4) Most of the customers of Life Insurance Corporation of

India are still paying their Premium through Agents. But with new technology

Online Premium Payment is more easy and faithful than Agents, so Life

Insurance Corporation of India should give the knowledge and trust about this payment mode.

74 Sanjay Kanthi Das, “Critial Issues of Service Marketing in India: A case of Life Insurance Industry”, Asian Journal of Research in Marketing, Vol.1, Issue.3, June 2012, pp.49-68. 75 Sanjay Kanthi Das, “Critical issues of service marketing in India: A case of Life insurance industry”, Asian Journal of Research Marketing, Vol.1, Issued.3, June, pp.50-68. 76 Sanjaykumar and Jagannath Patil, “A study on consumer satisfaction towards life insurance corporation of India”, International Journal of Marketing and Technology, Vol.2, Issue.7, July 2012, pp.210-223.

Sarat Borah (2012) 77 conducted a study to the service quality perception of 50 customers in Jorhat, Assam chosen from Kotak Mahindra Life Insurance

Company to access their satisfaction level and also identify service factors which have the maximum impact on customers’ satisfaction. Customers are satisfied with this company. This research explicitly indicates that Tangible,

Accessibility and Understanding factor have the maximum impact on customer satisfaction. The company should try to keep promise to do the work timely, should show sincere interest in customers problem, should provide prompt service to satisfy the customer fully. In this competition era Kotak Mahindra

Life insurance Company have to concentrate on the customers’ satisfaction to retain the existing customer and at the same time have to improve the quality of services day by day to attract new customers.

Sathya Pal Sharma N.K. and Guruprasad B.G. (2013)78 in their study quoted that life insurance market has been growing at a rapid pace and is likely to continue at a very fast pace over the next years. The findings of the study reveal that the perception about customer orientation and responsiveness are not up to the mark. Therefore the insurance industry needs to focus on the service quality factors.

77 Sarat Borah, “Customer satisfaction on products of private sector insurance companies – A study with reference to Kotak Mahindra Life insurance company limited, Jorhat Branch”, Indian Journal of Research, Vol.1, Issue.11, November 2012, pp.85-89. 78 Sathya Pal Sharma, N.K. and Guruprasad, B.G., “Growth scenario and marketing strategies of life insurance industry”, International Journal of Advancements in Research and Technology, Vol.2, Issue.6, June 2013, pp.10-16.

Sathya Swaroop Debasish (2004) 79 has devoted his research to the customer preference of life insurance in India. He found that more and more customers are now identifying the newer dimension attached to life insurance, to match their life cycle needs.

Selvan Kumar M. and Vimal Priyan J. (2010) 80 in their article on

“Indian Life Insurance Industry: Prospects of Private Sector” express that the growth in Insurance industry has been spurred by product innovation, vibrant distribution channels coupled with targeted publicity and promotional campaigns by the insurers. Innovations have come not only in the form of the benefits attached to the products but also in the delivery mechanism through various marketing tie-ups within the realm of financial services inside and outside.

Shendey B.K. and Neelkant Rao (2010) 81 in his article on “Trends in

Insurance Industry in India since 21 st century” finds that the entry of new players has enabled up the spread of life insurance. The monopoly of LIC of

India has come to end in insurance sector. Total life insurance premium of an

Indian insurance industry has increased four-folds since liberalisation of insurance industry. LIC has been taking measures to increase its policyholder base through various new schemes like children education, pension plans and constant monitoring of these policies.

79 Sathya Swaroop Debasish, “Exploring customer preference of Life Insurance in India – Factor Analysis Method”, VILAKSHAN – XIMB Journal of Management, Vol.No.1, March 2004, pp.21-27. 80 Selvan Kumar, M. and Vimal Priyan, J., “Indian Life Insurance Industry: Prospects of Private Sector”, The Journal of Insurance Institute of India, January-June, 2010, p.57. 81 Shendey, B.K. and Neelkant Rao, “Trends in Insurance Industry in India since 21 st century”, Southern Economist, December 15, 2010, p.24.

Shobhit and Shukla (2004) 82 concluded that there is a significant requirement of change in products, services and marketing strategy of private life insurers. The policies with low premium, easy payment schedule, specifically rural designed products, and loan against policies can help the increase in share of private life insurers.

Sonika Chaudhary and Priti Kiran (2011) 83 in their study have stated that private life insurers used the new business channels of marketing to a great extent when compared with LIC. Investment pattern of LIC and private insurers also showed some differences and servicing of death claims was better in case of LIC as compared to private life insurers.

Srinivasa Rao Chilumuri (2013) 84 studied to evaluate performance of

SBI life insurance. It is found that, SBI Life Insurance has large network.

Through different channels it is operating successfully.

Sujatha S. and Seema (2012) 85 tired to study the benefits of advertisement as a tool for promotion of products by insurance company. The study is done with special attention to IDBI Federal Life Insurance Company Ltd.

Advertisements help the insurance companies to reach the end users easily. But still the advertisements must be more clear and creative because there is heavy

82 Shobhit and Shukla, “Failure of private insurance players in rural areas – An analysis”, Insurance Chronicle, The ICFAI University Press, Hyderabad, May 2004, p.18-19. 83 Sonika Chaudhary and Priti Kiran, “Life insurance industry in India - Current scenario”, International Journal of Management and Business Studies (IIJMBs), Vol.1, Issue.2, February 2010, pp.7-20. 84 Srinivasa Rao Chilumuri, “Indian insurance industry – Performance of SBI life insurance”, International Journal of Management (IJM), Vol.4, Issue.1, Jan-Feb 2013, pp.149-156. 85 Sujatha, S. and Seema, “A study on the benefits of advertisements on the promotion of products – A special reference to IDBI Federal Life Insurance Company Ltd”, South Asian Journal of Marketing and Management Research (SAJMMR), Vol.2, Issue.7, July 2012, pp.185-202.

65 competition in the market. The company must use other promotion strategies like conducting more events and experience, publicity etc. that would help in reaching the end users effectively.

Sushma and Kotgiri K. (2013) 86 in their article focused on working of

Insurance players in Indian scenario. The study reveals that LIC is the leading player in the Indian Market. But slowly and steadily other private sectors are also capturing the market and offering challenge to the market leader LIC.

Different private companies are entering with their USP and trying to capture market share and with all different private insurance companies only LIC has to answer by working on all fronts and satisfy their customers by innovative products, competition and service. But undoubtedly, LIC has growth a bit or remarkable constraining the various environmental factors.

Tam Jackie L.M. and Wong Y.H. (2001) 87 in their article “Interactive selling: A dynamic framework for services”, examined that satisfaction, the sales person’s self-disclosure, and relation-orientation significantly influenced future insurance business opportunities.

Tanmay Acharya and et al. (2007) 88 in their article “Customer preferences in Insurance industry in India” revealed that the purchasing

86 Sushma and Kotgiri, K., “Growth of life insurance Business: Public and Private insurance players in India”, Indian Journal of Research in Management, Business and Social Sciences (IJRMBSS), Vol.1, Issue.2, March 2013, pp.62-66. 87 Tam Jackie, L.M. and Wong, Y.H., “Interactive Selling: A dynamic framework for services”, Journal of Services Marketing, Vol.15, No.5, 2001, pp.379-396. 88 Tanmay Acharya, Harshita Mishra and Venkata Seshaia, “Customer preferences in General Insurance Industry in India”, The ICFAI Journal of Marketing, December 2007, p.7

66 decision of the customer depends on quality, accessibility, company type, recommendations and promptness of service.

Varaprasad V. and Murali Krishna B. (2009) 89 in their article titled

“Insurance sector: Strategies for Intermediation and Marketing”, revealed that the contribution of insurance sector to economic development hardly affects financial intermediation. He concluded that in order to make insurance sector significant component of financial intermediation process, complete de-regulation and increase in face of reforms are essential at the same time, by adopting proper segmentation capture significant share in the market for the overall benefit of organisation.

Vikas Daryal and et al. (2010) 90 in their paper say that the most popular and major reason for a customer who surrenders the life insurance policy is whenever he/she takes wrong decision in purchase of policy and the male plays a dominating role in lapsing policy in case of farmers and students due to indecisiveness in purchasing but in case of serviceman and professionals sex do not play any role. The research explored other reasons for lapse of the policy as information dilemma, client servicing through company and superfluous benefits. Being information dilemma as reasons for lapse of policy, male’s decision is the dominating role for farmers and students. But if client servicing

89 Varaprasad, V. and Murali Krishna, B., “Insurance sector: Strategies for Intermediation and Marketing”, SMART Journal of Business Management Studies, No.1, Vol.5, March 2009, pp.13-18. 90 Vikas Daryal, Garima Gupta and Prabhjot Kaur Lamba, “Attitudinal and Biographical factors responsible for lapses occurring in the life insurance sector: A case study of North West Haryana”, International Journal of Research in Commerce and Management, Vol.1, Issue.6, October 2010, pp.22-29.

67 is a factor for lapse then male’s decision is important in case of business and female’s decision is important in case of professional.

Vikas Gautam and Mukund Kumar (2012) 91 have made an attempt to illustrate the attitudes of Indian consumers towards the insurance services.

Age, gender, marital status, level of education, household monthly income, mode of employment, professional inclination, mortgage property ownership and insurance policy ownership were taken into account for analysis. The findings of the study revealed that there is a significant difference between

Age, gender, marital status, level of education, household monthly income, mode of employment, professional inclination, mortgage property ownership, insurance policy ownership and attitudes of Indian consumers towards insurance services.

Zaid Ahmad Ansari (2011) 92 has made an attempt to find out the impact of reforms on insurance industry of Saudi Arabia. Premium growth, regulation of insurance industry and entry of new companies in the industry are analysed. The study made a comparative study of the performance of insurance industry in pre and post reforms era. Further it analysed the impact of reforms on standardisation of insurance industry through regulatory framework and participation of new companies from Saudi Arabia and other foreign multinational companies in the industry. Since reform in 2004 Saudi Insurance

91 Vikas Gautam and Mukund Kumar, “A study on attitudes of Indian consumers towards Insurance services”, Management Research and Practice, Vol.4, Issue.1, March 2012, pp.51-62. 92 Zaid Ahmad Ansari, “Analysis of the impact of reforms on insurance industry of Saudi Arabia”, Interdisciplinary Journal of Research in Business, Vol.1, Issue.8, August 2011, pp.28-37.

68 is growing fast registering remarkably high growth rate in premium. Besides premium, large numbers of indigenous companies have entered the insurance market. The government has established sound regulatory system to develop the insurance industry of Saudi Arabia to international standard. Insurance industry in Saudi Arabia is doing well in terms of growing insurance premium, rules and regulations of insurance and new insurance companies indigenous as well as the foreign entering the market. In a period of 7 years from 2004 to

2011, the industry has witnessed tremendous growth in premiums more and above the world average though the growth was enhanced mainly by the compulsory health insurance. Still the major part of the total premium is contributed by health insurance and motor insurance.

How the present study differs?

Most of the studies on agents have been done in foreign countries. In

India, much effort has not been devoted to record the views of agents

towards private sector insurance companies in respect of manager’s

behaviour, training, systematisation, working condition, etc. Thus, the

present research focuses on those issues of agents’ perception which are

not yet considered from an Indian perspective.

The policy holders’ perception towards service quality of private sector

insurance companies has not been done in earlier studies. The present

study focuses the service quality as a highly instrumental co-efficient in

increasing customers’ satisfaction.

The role of sales managers and agents in marketing life insurance

policies of private sector insurance companies are studied.

The perception of policyholders about marketing aspects in private

sector insurance companies are studied in detail.

Chapter - III

Life Insurance Services- An Overview 70

CHAPTER - III LIFE INSURANCE SERVICES – AN OVERVIEW

Insurance is a service industry and has the prime objective of providing security to human beings by minimising their losses. The need for security has become an important-feature of human beings from the days of civilization.

The basic principle of insurance is sharing of the losses of a few amongst many. The insurance service provides financial stability and strength to individuals and business firms. Though, it is legally defined as the contract between the insurer and the insured, it has much social and cultural perspectives. The implementation of Malhotra Committee Report in the year

1994 coupled with global trends of having an open insurance market where the countries could compete globally with each other in providing better insurance services, has ushered paradigm changes in the insurance scenario in India.

Insurance today has become a common topic of discussion and one is expecting that the market would be thrown open in the near future. It would be useful, therefore, to analytically examine the insurance markets in India. An attempt has been made as a part of this study to analyse and understand the size of the insurance markets and distribution network. Globalisation has created numerous opportunities and challenges for the existing insurers as the market is operating in a global environment.

I. LIFE INSURANCE AT GLOBAL LEVEL

The world’s total premium for life insurance during 2004-05 was US$

1999 billion which includes health and accident. While Asia, North America

and Europe represent over 97 percent of the world’s life insurance market, the

relative market shares have not been static over a period of time. The most

notable shift occurred in North America, with its world market share declining

from 31.3 percent in 2003-04 to 28.00 percent in 2004-05. This decline in

market share is attributable to greater premium growth in other regions. For

example Asia has experienced more robust growth in life insurance, with its

market share increasing from 4.8 percent to 5.1 percent in the same period.1

TABLE - 3.1 CONTINENTWISE INSURANCE DENSITY AND INSURANCE PENETRATION

Insurance Years Density

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Continents (US $) (US $) (US $) (US $) (US $) (US $) (US $) (US $) North America 1686.3 1869.3 1855.6 1604.6 1620.9 1697.0 1776.8 1664 Latin America 42.0 63.1 68.5 73.7 93.5 110.0 120.0 131 & Caribbean Europe 911.8 1222.6 1244.1 1108.0 1110.6 1083.0 996.0 1076 Asia 149.6 156.7 173.9 184.2 208.6 229.0 229.8 213 Africa 30.7 39.6 38.4 32.3 45.8 44.0 46.7 46 Oceania 885.0 1071.4 1281.5 931.3 1109.7 1299.0 1245.5 1286 World 299.5 358.1 369.7 345.3 364.3 378.0 372.6 366

1 Swiss Re Sigma World Insurance Report from 2005-06 to 2012-13.

Insurance Years Penetration

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Continents (%) (%) (%) (%) (%) (%) (%) (%) North America 4.05 4.1 4.0 3.51 3.4 3.5 3.57 3.1 Latin America 0.93 1.0 1.0 1.07 1.1 1.2 1.28 1.4 & Caribbean Europe 4.69 5.0 4.5 4.52 4.5 4.1 3.89 4.0 Asia 5.16 4.6 4.4 4.53 4.5 4.09 4.09 3.8 Africa 3.33 3.1 2.5 2.17 2.7 2.5 2.53 2.4 Oceania 3.16 3.4 4.0 3.01 2.8 2.8 2.62 2.7 World 4.34 4.4 4.1 4.03 4.0 3.8 3.69 3.5 Source: Swiss Re Sigma World Insurance Report from 2005-06 to 2012-13

Table 3.1 shows the continent wise insurance density and insurance

penetration from the year 2005-06 to 2012-13. The insurance density is highest

in North America during the year 2006-07, that is, $ 1869.3. The insurance

penetration is highest in Asia, that is, 5.16 percent during the year 2005-06. It is

lowest in Latin America and Caribbean, that is, 0.93 percent during the year

2005-06.

TABLE - 3.2 COMPARISON OF ASIAN ECONOMIES ON INSURANCE DENSITY AND INSURANCE PENETRATION

Insurance Years Density Asian 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Countries (US $) (US $) (US $) (US $) (US $) (US $) (US $) (US $) Japan 2829.3 2583.9 2869.5 3226.8 3472.8 4138.0 4142.5 3346 South Korea 1656.6 1656.6 1347.7 1283.9 1454.3 6615.0 1578.1 1816 India 33.2 40.4 41.2 47.7 55.7 49.0 42.7 41 China 34.1 44.2 71.7 81.7 105.5 9.0 102.9 110 Malaysia 221.5 221.5 225.9 236.7 282.2 328.0 329.9 341 Indonesia 30.0 20.4 20.1 20.1 30.9 40.0 45.8 59 Taiwan 2628.0 2165.7 2281.1 2262.8 2756.8 2757.0 3107.1 3204 Pakistan 6.5 2.6 2.8 2.8 3.2 4.0 5.3 6 Sri Lanka 24.9 10.2 12.8 12.0 13.7 15.0 14.8 16 Asia 154.6 156.7 173.9 184.2 208.1 229.0 229.8 213 Insurance Years Penetration Asian 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Countries (%) (%) (%) (%) (%) (%) (%) (%) Japan 8.30 7.50 7.60 8.06 8.00 8.8 9.17 8.8 South Korea 7.90 8.20 8.00 7.05 7.00 7.0 6.87 7.5 India 4.10 4.00 4.00 4.73 4.40 3.4 3.17 3.1 China 1.70 1.80 2.20 2.19 2.50 1.8 1.70 1.6 Malaysia 3.20 3.10 2.80 3.21 3.20 3.3 3.08 3.2 Indonesia 1.3 1.10 0.90 0.85 1.00 1.1 1.24 1.6 Taiwan 11.60 12.90 13.30 14.19 15.40 13.9 15.03 14.5 Pakistan 0.30 0.30 0.30 0.30 0.30 0.4 0.43 0.5 Sri Lanka 0.60 0.60 0.60 0.60 0.60 0.54 0.54 0.5 Asia 5.16 4.6 4.4 4.50 4.50 4.09 4.09 3.8 Source: Swiss Re Sigma World Insurance Report from 2005-06 to 2012-13

Table 3.2 shows the insurance density and insurance penetration in

Asian countries during the year 2005-06 to 2012-13. The highest insurance

density is found in South Korea during the year 2010-11, that is, $ 6615.0. The

highest insurance penetration is found in Taiwan during the year 2009-10 that

is 15.40 percent. The insurance penetration is found to be constant in Pakistan

from the year 2005-06 to 2009-10 continuously, that is, 0.30 percent.

TABLE - 3.3 CONTINENT WISE LIFE INSURANCE PREMIUM INCOME

Latin North America Particulars Europe Asia Africa Oceania World America & Caribbean Premium (US$) 551530 23263 769337 573239 27795 28539 1973703 2005-06 Billion Growth 9.2 24.7 17.5 7.7 6.8 22.7 12.6 Rate (%) Premium (US$) 623950 35809 1035942 623469 38111 35807 2393089 2006-07 Billion Growth 13.13 53.93 34.65 8.76 37.11 25.47 21.25 Rate (%) Premium (US$) 624558 36021 1115147 592644 37645 35809 2441823 2007-08 Billion Growth 0.10 0.59 7.65 -4.94 -1.22 5.59 2.04 Rate (%) Premium (US$) 626066 40874 1050815 690951 37866 43835 2490421 2008-09 Billion Growth 0.24 13.47 -5.77 16.59 0.59 22.41 1.99 Rate (%)

Latin North America Particulars Europe Asia Africa Oceania World America & Caribbean Premium (US$) 557007 54459 956617 865753 43106 39435 2516377 2009-10 Billion Growth -11.03 33.24 -8.96 25.30 13.84 -10.04 1.04 Rate (%) Premium (US$) 589737 65197 937168 941958 46298 46810 2626944 2010-11 Billion Growth 5.88 19.72 -2.03 8.80 7.41 18.70 4.39 Rate (%) Premium (US$) 619538 71834 876444 957712 49888 45448 2620864 2011-12 Billion Growth 5.05 10.18 -6.48 1.67 7.75 -2.91 -0.23 Rate (%) Premium (US$) 585193 80363 946727 898413 49939 47455 2608091 2012-13 Billion

Growth -5.8 10.7 7.5 -6.5 2.1 4.4 -0.8 Rate (%) Source: Swiss Re Sigma World Insurance Report from 2005-06 to 2012-13

Table 3.3 shows the continent wise life insurance premium income from

2005-2006 to 2012-13. The highest growth rate in premium income is found in

Latin America & Caribbean during the year 2006-07, that is, 53.93 percent.

The lowest growth rate in premium income is found in North America during

the year 2009-10, that is, -11.03 percent.

TABLE - 3.4 LIFE INSURANCE PREMIUM INCOME-ASIAN COUNTRIES

ASIAN COUNTRIES Year Particulars South Sri Japan India China Malaysia Indonesia Taiwan Pakistan Asia Korea Lanka Premium (US$) 343490 70271 34587 45029 4932 2820 41253 375 165 579043 Billion

2005-06 Growth -3.6 10.5 14.2 18.6 10.7 56.9 19.7 NA 8.6 4.3 Rate (%) Premium (US$) 330651 81298 47132 58677 5885 4728 49813 428 196 623469 Billion

2006-07 Growth -3.74 15.69 36.27 30.31 19.32 67.66 20.75 14.13 18.79 7.67 Rate (%) Premium (US$) 367112 66417 48860 95831 6105 4704 52748 472 249 690950 Billion

2007-08 Growth 11.03 -18.30 3.67 63.32 3.74 -0.51 5.89 10.28 27.04 10.82 Rate (%) Premium (US$) 410309 62461 57114 109175 6503 4611 52331 508 243 748355 Billion

2008-09 Growth 11.77 -5.96 16.89 13.92 6.52 -1.98 -0.79 7.63 2.41 8.31 Rate (%) Premium (US$) 454113 72156 63984 142999 8202 7744 63920 615 276 865753 Billion

2009-10 Growth 10.68 15.52 12.02 30.98 26.13 67.95 22.15 21.06 13.58 15.69 Rate (%) Premium (US$) 524372 78920 53300 141208 9513 10894 72522 951 313 957712 Billion

2010-11 Growth 15.47 9.374 -16.697 -12.52 15.98 40.68 13.46 54.63 13.40 10.62 Rate (%) Premium (US$) 5243372 78920 53300 141208 9513 10894 72522 951 313 957712 Billion

2011-12 Growth 3.7 7.1 -11.0 5.0 7.4 5.8 13.1 17.3 -1.7 4.3 Rate (%) Premium (US$) 422733 91204 52174 152121 9985 14141 75013 1048 333 898413 Billion

2012-13 Growth -15.3 -9.4 -1.1 7.8 1.8 7.6 3.4 11.2 13.4 -6.5 Rate (%) Source: Swiss Re Sigma World Insurance Report from 2005-06 to 2012-13.

Table 3.4 shows the life insurance premium income of Asian Countries

during the year 2005-06 to 2012-13. The highest growth rate in premium

income is found in Indonesia during the year 2009-10, that is, 67.95 percent.

The lowest growth rate in premium income is found in South Korea during the

year 2007-08, that is, -18.30 percent.

II. LIFE INSURANCE IN INDIA

The life insurance market in India has witnessed dynamic changes including entry of number of global insurers in life segment. Most of the private sector insurance companies are joint ventures with recognised foreign players across the globe.

COMPETITIVE STRUCTURE

Competition has brought more product innovation and better customer servicing. This made a positive impact on the economy of income generation and creating employment opportunities in insurance sector. At present, there are a total of 24 companies in the life insurance business in India and only LIC is in the public sector and rest all 23 companies are in the private sector.

TABLE - 3.5 LIFE INSURANCE COMPANIES IN INDIA (As on 31 st March, 2012)

Date Year Indian Foreign Reg. Insurers of of Promoter Promoter No Sl. No. Registration Operation

1 Life Insurance Government Corporation of - 512 01.09.1956 1956-57 of India India (LIC) 2 HDFC Standard Standard Life Life Insurance HDFC LTD Assurance, 101 23.10.2000 2000-01 Company Limited UK (HDFC Std) 3 Max New York Life Insurance New York MAX India 104 15.11.2000 2000-01 Company Limited Life, USA (Max New York) 4 ICICI Prudential Life Insurance Prudential, ICICI Bank 105 24.11.2000 2000-01 Company Limited UK (ICICI Pru)

Date Year Indian Foreign Reg. Insurers of of Promoter Promoter No Sl. No. Registration Operation

5 Kotak Mahindra Kotak Life Insurance Old Mutual, Mahindra 107 10.01.2001 2001-02 Company Limited South Africa Bank (Kotak Mahindra) 6 Birla Sun Life Insurance Company Sun Life, Birla Group 109 31.01.2001 2000-01 Limited (Birla Sun Canada Life) 7 Tata AIG Life American Insurance Company TATA International 110 12.02.2001 2000-01 Limited (Tata AIG) Group Assurance Co., USA 8 SBI Life Insurance BNP Paribas State Bank Company Limited Assurance, 111 30.03.2001 2001-02 of India (SBI Life) France 9 ING Vysya Life ING Insurance Company VYSYA Insurance 114 02.08.2001 2001-02 Limited (ING Bank International, Vysya) Netherlands 10 Bajaj Allianz Life Allianz, Insurance Company Bajaj Auto 116 03.08.2001 2001-02 Germany Limited (Bajaj Allianz) 11 MetLife India Met Life Insurance (MetLife) International J&K Bank 117 06.08.2001 2001-02 Holdings Ltd, USA 12 Amp Sunmar Life Insurance Company Limited (Now it is Reliance - 121 03.01.2001 2001-02 Reliance Life Capital Insurance Company Limited) (Reliance) 13 Aviva Life Dabour Aviva Insurance Company 122 14.05.2002 2002-03 Group International Limited (Aviva) 14 Sahara India Life Insurance Company Sahara - 127 06.02.2004 2004-05 Limited (Sahara Group India) 15 Shri Ram Life Sanlam Shriram Insurance Company Group, South 128 17.11.2005 2005-06 Group Limited (Sri Ram) Africa

Date Year Indian Foreign Reg. Insurers of of Promoter Promoter No Sl. No. Registration Operation 16 Bharti AXA Life AXA Bharathi Insurance Company Holdings, 130 14.09.2007 2006-07 Group Limited (Bharti AXA) France 17 Future Generali Panthaloon India Life Insurance Retail Ltd Company Limited Sain Future (Future Generali) Marketing 133 04.09.2007 2007-08 Group Network Pvt. Ltd. (SMNPL), Generali, Italy 18 IDBI Fortis Life Federal Bank Insurance Company IDBI Bank Fortis, 135 19.12.2007 2007-08 (IDBI Fortis) Netherland 19 Canara HSBC HSBC Oriental Bank of Insurance Commerce Life (Asia Pacific) Insurance Company Canara Bank Holdings Ltd 136 16.01.2011 2008-09 Limited (Canara and Oriental HSBC) Bank of Commerce 20 EGON Religare Religare Life Insurance Enterprises Aegon, US 138 27.06.2008 2008-09 Company Limited Ltd (EGON Religare) 21 DLF Pramerica Life Insurance Company DLF Group PFI, US 140 27.06.2008 2008-09 Limited (DLF Pramerica) 22 Star Union Dai-ichi Bank of Dai-Chi Life Insurance India, Union Mutual Life 142 26.12.2008 2008-09 Company Limited Bank of Insurance Co, India India Japan 23 India First Life Bank of Legal Insurance Company Baroda, 143 05.11.2009 2009-10 General, UK Limited (India First) Andra Bank 24 Edelweiss Tokyo Edelweiss Tokio Marine Life Insurance Financial Holdings Inc, 147 10.05.2011 2011-12 Company Limited Services, Japan (Edelweiss) India Source: IRDA Annual Report 2011-2012 and Companies Website

Table 3.5 shows the list of life insurance companies in India. It is inferred from this table that one company is a public company and remaining

23 companies are private sector companies.

TABLE - 3.6 NUMBER OF PRIVATE LIFE INSURANCE OFFICES IN INDIA

Years Number of Offices Growth Rate (%)

2005-06 1,645 -

2006-07 3,072 86.75

2007-08 6,391 108.04

2008-09 8,785 37.46

2009-10 8,768 -0.19

2010-11 8,175 - 6.76

2011-12 7,712 -5.66

2012-13 6,759 -12.36

Source: IRDA Annual Reports from 2005-06 to 2012-13

Table 3.6 shows the number of private sector life insurance offices in

India from the year 2005-06 to 2012-13. It is inferred that the number of private life insurance offices during the year 2005-06 is 1,645. It has increased to 8,785 during the year 2008-09. It has decreased to 6,759 during the year

2012-13 from 8,785 during the year 2008-09. The growth rate reveals that, during the year 2007-08, it is 108.04 percent. During the year 2012-13, it shows the negative growth rate, that is, -12.36 percent.

TABLE - 3.7 NUMBER OF AGENCY LICENCES ISSUED BY IRDA FOR PRIVATE SECTOR INSURANCE COMPANIES IN INDIA

Life 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Insurers Allianz 80,217 2,16,191 2,50,239 2,04,941 1,67,741 1,89,667 1,73,146 1,90,826 Bajaj ING 14,043 33,944 52,760 75,058 53,273 34,957 29,396 52,596 HDFC 16,717 79,109 1,44,714 2,07,626 1,98,879 1,36,009 1,06,244 1,17,248 Birla 11,913 56,490 1,09,034 1,64,363 1,68,124 1,44,573 1,31,297 1,57,727 ICICI 44,489 2,34,460 3,06,354 2,99,879 2,41,830 1,90,407 1,38,883 1,67,140 Kotak 7,374 24,484 34,723 42,083 35,897 38,269 37,297 45,564 TATA 19,348 28,105 52,544 1,07,670 1,51,557 87,223 46,948 63,498 SBI 5,112 25,356 40,643 68,993 65,532 79,628 86,989 1,28,559 Max 12,549 25,044 36,901 84,651 72,828 43,542 35,368 55,879 Met 8,343 20,848 36,798 60,727 63,300 28,840 29,418 39,028 Reliance 14,293 95,622 1,84,194 1,49,613 1,95,565 1,89,433 1,50,590 1,93,114 Aviva 9,204 29,052 35,307 30,838 32,728 23,219 19,126 26,428 Sahara 81 9,797 12,,839 13,515 13,856 14,180 14,578 14,860 Shri Ram 5,937 10,384 14,659 19,759 21,554 10,139 6,380 6,399 Bharathi 6,266 11,749 28,495 32,661 15,210 14,842 22,347 Future 11 24,437 42,613 52,666 41,281 45,145 IDBI 279 6,509 7,737 7,892 7,400 11,302 Canara 0 0 DLF 113 2,115 5,199 7,122 9024 Aegon 2,309 7,617 10,861 7,313 9,583 Star 0 69 128 550 1,357 India First 296 1,658 2,980 Edelweiss 825 3,433 Tokio Total 7,21,696 8,90,152 13,26,748 15,92,579 15,75,476 13,02,328 10,80,651 13,64,037 Growth - 23.34 49.05 20.04 -1.07 -17.34 -17.02 26.22 Rate Source: IRDA Annual Reports from 2005-06 to 2012-13

Table 3.7 shows the number of agency licences issued by IRDA for

private sector insurance companies in India from the year 2005-06 to 2012-13.

The number of agency licences issued by IRDA for the year 2005-06 to private

sector insurance companies is 7,21,696. It has gradually increased to 15,75,476

82 during the year 2009-10. It has decreased to 10,80,651 during the year 2011-12.

Again it has increased to 13,64,037 during the year 2012-13. The highest growth rate in number of agency licences issued by IRDA for private sector insurance companies is found during the year 2007-08, that is, 49.05 percent.

The lowest growth rate is found during the year 2010-11, that is, -17.34 percent.

TABLE - 3.8 NEW POLICIES ISSUED BY PRIVATE SECTOR INSURANCE COMPANIES IN INDIA Years Number of New Policies Growth Rate (%) 2005-06 38,71,410 - 2006-07 79,22,294 104.64 2007-08 1,32,61,558 67.40 2008-09 1,50,10,710 13.19 2009-10 1,43,62,000 -4.32 2010-11 1,11,14,000 -22.62 2011-12 8,43,55,920 659.01 2012-13 4,30,00,859 -49.02 Source: IRDA Annual Reports from 2005-06 to 2012-13

Table 3.8 shows the new policies issued by private sector insurance companies in India from 2005-06 to 2012-13. It is inferred that the number of new policies issued by private sector insurance companies in India during the year 2005-06 is 38,71,410. It has increased to 1,50,10,710 during the year

2008-09. It has decreased to 1,11,14,000 during the year 2010-11. Again it has increased to 8,43,55,920 during the year 2011-12. Again it has decreased to

4,30,00,859 during the year 2012-13. The highest growth rate is found during the year 2011-12, that is, 659.01 percent. The lowest growth rate is found during the year 2010-11, that is, -22.62 percent.

TABLE - 3.9 TOTAL LIFE INSURANCE PREMIUM COLLECTED BY PRIVATE SECTOR INSURANCE COMPANIES IN INDIA

Total Life Insurance Premium (Rs. in Crores) Life 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Insurers ING 425.38 707.20 1158.87 1442.28 1642.65 1708.95 1679.98 1742.36 HDFC 1569.91 2855.87 4858.56 5564.69 7005.10 9004.17 10202.40 11322.68 Birla 1259.68 1776.71 3272.19 4571.80 5505.66 5677.07 5885.36 5216.30 ICICI 4261.05 7912.99 13561.06 15356.22 16528.75 17880.63 14021.58 13538.24 Kotak 621.85 971.51 1691.14 2343.19 2868.05 2975.51 2937.43 2777.78 TATA 880.19 1367.18 2046.35 2747.50 3493.78 3985.22 3630.30 2760.43 SBI 1075.32 2928.49 5622.14 7212.10 10,104.03 12911.64 13133.74 10450.03 Bajaj 3133.58 5345.24 9725.31 10626.52 11419.71 96009.95 7483.80 6892.70 Max 788.13 1500.28 2714.60 3857.26 4860.54 5812.63 6390.53 6638.70 Met 205.99 492.71 1159.54 1996.64 2536.01 2508.17 2677.50 2429.52 Reliance 224.21 1004.66 3225.44 4932.54 6604.90 6571.15 5497.62 4045.39 Aviva 600.27 1147.23 1871.88 1992.87 2378.01 2345.17 2415.87 2140.67 Sahara 27.66 51.00 143.49 206.47 250.59 243.41 225.95 205.38 Shri Ram 10.33 184.16 358.05 436.17 611.27 821.52 644.16 618.07 Bharti - 7.78 118.41 360.41 669.73 792.02 774.16 744.52 Future - - 2.49 152.60 541.51 726.16 779.58 678.29 IDBI - - 11.90 318.97 571.12 811.00 736.70 804.68 Canara - - - 296.41 842.45 1531.86 1861.08 1912.15 DLF - - - 3.37 38.44 95.04 167.01 236.79 Aegon - - - 31.21 165.65 388.61 457.32 430.50 Star - - - 50.19 530.37 933.31 1271.95 1068.80 India - - - - 201.60 798.43 1297.93 1690.08 First Edel We ------10.88 54.83 Total 15083.54 28,253.00 51561.42 64497.43 79369.94 88,165.24 84,182.83 78398.91 Growth - 87.31 82.50 25.09 23.06 11.08 -4.52 -6.87 Rate (%) Source: IRDA Annual Reports from 2005-06 to 2012-13

Table 3.9 shows the total life insurance premium collected by private

sector insurance companies in India during the study period. The highest

growth rate of total life insurance premium collected is found during the year

2006-07, that is, 87.31 percent. The lowest growth rate is found during the year

2012-13, that is, -6.87 percent.

STAFF STRENGTH

Human resources are the important assets of the business firms. In the insurance business also, the human resources are treated as real assets, as they have to serve the customers to minimise their risk as well as increase profit of the organisations. The profitability in any organisation depends on the efficiency of the human resources. The staff strength of private sector insurance companies is shown in Table 3.10.

TABLE - 3.10 STAFF STRENGTH OF PRIVATE SECTOR INSURANCE COMPANIES AS ON 31.03.2012 IN INDIA Sales Sub-Ordinate Officers Clerical Staff Companies Managers Staff Total (Class I) (Class III) (Class II) (Class IV) ING 216 2,160 648 648 3,672 HDFC 481 4,810 1,443 1443 8,177 Birla 711 7,110 2,133 2133 12,087 ICICI 990 9,900 2,970 2970 16,830 Kotak 205 2,050 615 615 3,485 TATA 298 2,980 894 894 5,066 SBI 714 7,140 2,142 2142 12,138 Bajaj 1,044 10,440 3,132 3132 17,748 Max 464 4,640 1,392 1392 7,888 Met 226 2,260 678 678 3,842 Reliance 1,230 12,300 3,690 3690 20,910 AVIVA 135 1,350 405 405 2,295 Sahara 143 1,430 429 429 2,431 Shri Ram 208 2,080 624 624 3,536 Bharti 128 1,280 384 384 2,176 Future 184 1,840 552 552 3,128 IDBI 62 620 186 186 1,054 Canara 32 320 96 96 544 DLF 40 400 120 120 680 Aegon 125 1,250 375 375 2,125 Star 30 300 90 90 510 India First 15 150 45 45 255 Edelwise 31 310 93 93 527 Total 7,712 77,120 23,136 23,136 1,31,104 Source: IRDA Annual Report 2011-12

Table 3.10 shows the staff strength of private sector insurance

companies in India as on 31.12.2012. The total strength of officers (Class I) is

7,712. The total strength of sales managers (Class II) is 77,120. The total

strength of clerical staff (Class III) is 23,136. The total strength of sub-ordinate

staff (Class IV) is 23,136. In general, the highest staff strength is found in

Reliance Life Insurance Company Limited, that is, 20,910.

LIFE INSURANCE BUSINESS OF PRIVATE SECTOR COMPANIES

The data relating to life insurance premium of private sector insurance

companies are put together and shown in Table 3.11. The commission,

operating expenses, benefits, bonus and surplus are also shown and their ratios

are calculated with reference to net premium.

TABLE - 3.11 LIFE INSURANCE BUSINESS: PRIVATE SECTOR INSURANCE COMPANIES (Rs. in lakhs) Years Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) Net premium 1,05,87,174 1,56,03,007 2,01,34,262 2,21,68,311 2,65,45,037 2,91,63,864 2,87,07,211 2,87,20,249 Commission 8,63,548 1227548 14,68,058 15,50,057 18,14,631 18,28,038 18,48,619 19,21,810 Percentage to 8.16 7.87 7.29 6.99 6.84 6.27 6.44 6.69 net premium Operating 9,61,105 1360091 20,30,673 25,72,389 28,80,694 32,97,588 29,67,459 31,56,170 expenses Percentage to 9.08 8.71 10.09 11.60 10.85 11.30 10.34 10.99 net Premium Benefits-Net 35,20,986 5571501 61,68,637 58,34,310 95,57,820 1,42,15,045 1,52,61,746 1,91,86,841 Percentage to 33.25 35.70 30.63 26.31 36.00 48.74 53.16 66.80 net Premium Bonus 29,746 139627 1,07,422 77,350 1,00,583 1,10,958 1,27,705 1,44,080 Percentage to 0.28 0.89 0.53 0.35 0.38 0.38 0.44 0.50 net Premium Surplus 69,848 95,744 1,28,423 66,842 2,77,777 3,80,242 6,82,131 7,65,891 Percentage to 0.66 0.61 0.64 0.30 1.05 1.30 2.38 2.67 net Premium Source: IRDA Annual Reports from 2005-06 to 2012-13

It is known from Table 3.11 that the net premium received in private sector insurance companies is Rs.1,05,87,174 lakhs during 2005-06 and

Rs.2,87,20,249 lakhs during 2012-13. The net premium has increased from

2005-06 to 2011-12, that is, Rs.1,05,87,174 lakhs to Rs.2,91,60,499 lakhs. The commission during 2005-06 is Rs.8,63,548 lakhs and during 2012-13 is

Rs.19,21,810 lakhs. The ratio of commission to net premium has decreased from 8.16 in 2005-06 to 6.27 per cent in 2010-11. It has increased to 6.69 per cent during the year 2012-13.

The operating expenses during the year 2005-06 are Rs.9,61,105 lakhs and 2012-13 is Rs.31,56,170 lakhs. The ratio of operating expenses to net premium is 9.08 per cent during 2005-06 and it has increased to 11.60 per cent during 2008-09. During the year 2012-13, it is 10.99 per cent. This shows that the ratio of operating expenses to net premium has fluctuated between 8.71 and

11.60 per cent during the study period.

The ratio of benefit to net premium ratio has fluctuated between 26.31 and 66.80 per cent during the study period.

The bonus during the year 2005-06 is Rs.29,746 lakhs and 2012-13 is

Rs.1,44,080 lakhs. The ratio of bonus to net premium is 0.28 per cent during

2005-06; 0.89 per cent during 2006-07 and 0.50 per cent during 2012-13. This shows that the ratio of bonus to net premium has fluctuated between 0.28 and

0.89 per cent during the study period.

The surplus during the year 2005-06 is Rs.69,848 lakhs and 2012-13 is

7,65,891 lakhs. The ratio of surplus to net premium is 0.66 per cent during

2005-06; 0.30 per cent during 2008-09 and 2.67 per cent during 2012-13. This shows that the ratio of surplus to net premium has fluctuated between 0.30 and

2.67 per cent during the study period.

III. PRIVATE SECTOR LIFE INSURANCE IN TIRUCHIRAPPALLI DISTRICT The total premium collected and life insurance premium collected by private sector insurance companies are collected and shown in the following tables.

TABLE - 3.12 TIRUCHIRAPPALLI DIVISION-PRIVATE SECTOR INSURANCE COMPANIES TOTAL PREMIUM AND LIFE INSURANCE PREMIUM (Rs. in lakhs)

Life Insurance Total Premium % to Total Years Premium (Rs.) Premium (Rs.) 2005-06 38.18 16.04 42.01 2006-07 50.66 25.08 49.51 2007-08 64.56 36.16 56.01 2008-09 89.20 51.62 57.87 2009-10 125.36 75.19 59.98 2010-11 113.06 45.56 40.30 2011-12 39.24 32.04 81.65 2012-13 43.31 35.21 81.30 Source: Records of Private Sector Insurance Companies from 2005-06 to 2012-13, Tiruchirappalli District

Table 3.12 shows the total premium collected and life insurance premium collected by private sector insurance companies in Tiruchirappalli

Division from 2005-06 to 2012-13. It is observed that the percentage of life insurance premium to total premium is highest during the year 2011-12, that is,

81.65 per cent. It is lowest during the year 2010-11, that is, 40.30 per cent.

CLAIM TO NET PREMIUM RATIO

The data relating to non-life and life insurance claim to net premium ratios are collected and shown in Table 3.13.

TABLE - 3.13 TIRUCHIRAPPALLI DIVISION-PRIVATE SECTOR INSURANCE COMPANIES NON-LIFE AND LIFE INSURANCE CLAIM TO NET PREMIUM RATIO

Years Non Life Insurance Life Insurance 2005-06 75.57 44.27 2006-07 58.49 27.30 2007-08 68.56 31.15 2008-09 70.39 33.48 2009-10 63.66 38.21 2010-11 55.37 43.02 2011-12 60.09 41.41 2012-13 42.50 34.75 Source: Records of Private Sector Insurance Companies from 2005-06 to 2012-13 Tiruchirappalli District

Table 3.13 shows the non-life and life insurance claim to net premium ratio of private sector insurance companies in Tiruchirappalli division during the year 2005-06 to 2012-13. It is observed from Table 3.13 that the non-life

89 claim to net premium ratio during 2005-06 is highest, that is, 75.57 per cent.

The life insurance claim to net premium ratio during 2005-06 is highest, that is,

44.27 per cent.

This chapter which analyses the claim percent with regard to net premium from the secondary information has as its sequel the role of sales managers and agents of the selected private sector insurance companies.

Chapter - IV

Role of Sales Managers and Agents 90

CHAPTER - IV ROLE OF SALES MANAGERS AND AGENTS

Insurance companies are service sector companies. Therefore life insurance is an intangible product, which does not have the feature of tangible product. Therefore life insurance policies have to follow a different system of marketing and this absolutely differs from the marketing mechanism adopted for tangible products. It is true that the general public do have adequate awareness about life insurance policies and have not realised the significance of these policies. It is significant to note that importance on life insurance policies could be cultivated in the minds of the prospective users only by the employees, sales managers and agents of private sector insurance companies.

The sales managers and agents are the prime sales force.

In life insurance policies marketing, there is no immediate chance of realising the service either as good or bad. The selling is an important aspect in marketing the life insurance policies. The selling task is very difficult which requires a well co-ordinated network of the sales force. The major part of the life insurance policies marketing mechanism adopted goes around the external selling personnel like sales managers and agents.

SALES MANAGERS

The sales managers are in direct contact with the policyholders and serve as an official liaison between private sector insurance company and the

91 public. They are the first link to face the reaction of the policyholders when they are satisfied or dissatisfied. So any research work worth its name will be useful only if it includes the perception of sales managers. Their suggestions will no doubt tell upon the marketing methods of life insurance policies. In this background, marketing strategies followed by sales managers are assessed in this chapter.

AGENTS

The traditional market place has given ways to dynamic new age professionalism and the private sector insurance company’s life insurance policies basket has in it a variety of products catering to the needs of the different stages of life and appropriate to the risk appetite. However, the kingpin is the primary contact person - The Agents. The agents for the discharge of all the functions as agents will be paid commission at the rate of

15% of life insurance premium collected by them.

A research study about the marketing of life insurance policies of private sector insurance companies would be complete if it investigates the various aspects of sales managers and agents who are considered as significant market force.

EDUCATIONAL QUALIFICATION

Educational qualification is one of the important factors to identify and analyse the environmental conditions and situations existing in an organisation.

The sample sales managers and agents respondents are having different educational qualifications ranging from primary level to post graduation. The

92 details of the educational qualification of the sample respondents are shown in

Table 4.1 for analysis.

TABLE - 4.1 EDUCATIONAL QUALIFICATION

Educational Qualification Sales Managers Agents Total 6 30 36 Primary Level (10.71) (17.86) (16.07) 18 37 55 Secondary Level (32.14) (22.02) (24.55) 20 21 41 Under Graduate (35.72) (12.50) (18.31) 3 58 61 Post Graduate (5.36) (34.52) (27.23) 9 22 31 Others (16.07) (13.10) (13.84) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent the percentage to total

Table 4.1 shows the educational qualification of sample sales managers and agents. Analysis reveals that among the sales managers 10.71 per cent of them have studied up to primary level; 32.14 per cent of them have studied up to secondary level; 35.72 per cent of them are graduates; 5.36 per cent of them are post graduates and the rest 16.07 per cent of them have other qualifications.

Among the agents 17.86 per cent of them have studied up to primary level; 22.02 per cent of them have studied up to secondary level; 12.50 per cent

93 of them are graduates; 34.52 per cent of them are post graduates and the rest

13.10 per cent of them have other qualifications.

In general, 16.07 per cent of sales managers and agents have studied up to primary level; 24.55 per cent of them have studied up to secondary level;

18.31 per cent of them are graduates; 27.23 per cent of them are post graduates and the rest 13.84 per cent of them have other qualifications.

It is inferred that majority of the sample sales managers and agents are post graduates.

EXPERIENCE IN AGENCY SERVICE

The sample respondents are having various years of experiences in the field of insurance. Many do this agency business with maximum care and sincerity.

The details of experience in the field of insurance agency from sample sales managers and agents are collected and shown in Table 4.2 for analysis.

TABLE - 4.2 WORKING EXPERIENCE

Sales Working Experience Agents Total Managers 30 71 101 Less than 5 Years (53.57) (42.26) (45.09) 14 55 69 5 to 10 Years (25.00) (32.74) (30.80) 12 42 54 More than 10 Years (21.43) (25.00) (24.11) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent the percentage to total

Table 4.2 shows the working experience of sample sales managers and agents. Analysis reveals that among the sales managers, 53.57 per cent of them have less than 5 years of working experience; 25.00 per cent of them have got

5 to 10 years and the rest 21.43 per cent of them have more than 10 years of working experience.

Among agents, 42.26 per cent of them have less than 5 years of working experience; 32.74 per cent of them have got 5 to 10 years and the rest 25.00 per cent of them have more than 10 years of working experience.

In general, 45.09 per cent of the sample sales managers and agents have less than 5 years of working experience; 30.80 per cent of them have got 5 to

10 years and the rest 24.11 per cent of them have more than 10 years of working experience.

It is inferred that majority of the sample sales managers and agents have less than 5 years of working experience.

TRAINING TO SALES MANAGERS AND AGENTS

The sales managers and agents are in direct touch with the policyholders.

Therefore, sufficient care should be exercised in the selection of suitable persons. As soon as the recruitment is over, the private sector insurance companies offer different training programme to the sales managers and agents.

They are marketing training, policy knowledge training, consumer approach training, premium collection training, periodical training, special training, computer billing training and other training. The information collected on the

95 training programme undergone by the sample sales managers and agents is shown in table 4.3.

TYPES OF TRAINING UNDERGONE

The sample sales managers and agents respondents are asked to state the type of training undergone and the details compiled are shown in Table 4.3.

TABLE - 4.3 TYPES OF TRAINING UNDERGONE Sales Agents Total Types of Training Managers (N=168) (N=224) (N=56) 54 132 186 Marketing Training (96.43) (78.57) (83.04) 30 74 104 Policy Knowledge Training (53.57) (44.05) (46.43) 22 101 123 Consumer Approach Training (39.29) (60.12) (54.91) 41 67 108 Premium Collection Training (73.21) (39.88) (48.21) 27 92 119 Periodical Training (48.21) (54.76) (53.13) 38 78 116 Special Training (67.86) (46.43) (51.79) 44 89 132 Computer Billing Training (78.57) (52.98) (58.93) 12 36 48 Other Training (12.43) (21.43) (21.43) Source: Primary data Note: Figures in parentheses represent the percentage to the respective training

Table 4.3 shows that in the sales managers’ category, 96.43 per cent have undergone marketing training; 73.21 per cent have undergone premium collection training and 78.57 per cent have undergone computer billing training.

Among the agents’ category, 83.04 per cent have undergone marketing training; 39.88 per cent have undergone premium collection training and 52.98 per cent have undergone computer billing training.

Hence it is clear that majority of sales managers and agents have undergone marketing training.

MARKETING MIX FOLLOWED

The products of insurance may be with reference to risk and investment aspects. Some policies may have higher risk coverage and some may have savings as the basis. The products have mix of different type of policies, premium, risk and various other aspects. The sample sales managers and agents respondents are asked to state the prominent method of marketing mix followed while canvassing for the policies. The details are shown in Table 4.4 for analysis.

TABLE - 4.4 TYPES OF MARKETING MIX FOLLOWED Sales Type of Marketing Mix Agents Total Managers 24 33 57 Policy Mix (42.86) (19.64) (25.45) 21 55 76 Premium Mix (37.50) (32.74) (33.93) 11 80 91 Risk Mix (19.64) (47.62) (40.62) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent the percentage to total

Table 4.4 shows the type of marketing mix followed by sales managers and agents. In the sales managers’ category, 42.86 per cent of them have followed policy mix; 37.50 per cent of them have followed premium mix and

19.64 per cent of them have followed risk mix.

In the agents’ category, 19.64 per cent of them have followed policy mix; 32.74 per cent of them have followed premium mix and 47.62 per cent of them have followed risk mix.

In general, majority of sales managers and agents have followed risk mix.

A null hypothesis is framed and tested.

Ho: The sales managers and agents do not significantly differ in their type of

marketing mix followed.

Degree of Level of Table Calculated Test Result Freedom Significance Value Value Chi-Square 2 5% 5.991 17.268 Rejected

Since the calculated value is higher than the table value, the null hypothesis is rejected. Hence, the sales managers and agents significantly differ in their type of marketing mix followed.

KNOWLEDGE ABOUT TYPES OF LIFE INSURANCE POLICIES

Some agents may always explain the prospects and conditions to the customers and some may rarely explain about the policies. Therefore the sample sales managers and agents are asked to state the knowledge about types of life insurance policies. Their knowledge level are collected and shown in table 4.5 for analysis.

TABLE - 4.5 KNOWLEDGE ABOUT TYPES OF LIFE INSURANCE POLICIES

Knowledge about Life Insurance Sales Agents Total Policies Managers 18 68 86 Very Well Known (32.14) (40.48) (38.39) 13 27 40 Known (23.21) (16.07) (17.86) 6 14 20 No Opinion (10.72) (8.33) (8.93) 12 25 37 Not Known (21.43) (14.88) (16.52) 7 34 41 Not at all Known (12.50) (20.24) (18.30) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent the percentage to total

Table 4.5 shows that in the sales managers’ category, 32.14 per cent of them have expressed that ‘very well known’ about types of life insurance policies; 23.21 per cent of them have expressed that ‘known’ about types of life insurance policies; 10.72 per cent of them have expressed that ‘no opinion’ about types of life insurance policies; 21.43 per cent of them have expressed that ‘not known’ about types of life insurance policies; 12.50 per cent of them have expressed that ‘not at all known’ about types of life insurance policies.

Among agents’ category, 40.48 per cent of them have expressed that

‘very well known’ about types of life insurance policies; 16.07 per cent of them have expressed that ‘known’ about types of life insurance policies; 8.33 per cent of them have expressed that ‘no opinion’ about types of life insurance policies; 14.88 per cent of them have expressed that ‘not known’ about types of life insurance policies; 20.24 per cent of them have expressed that ‘not at all known’ about types of life insurance policies.

In general, majority of the sales managers and agents have expressed that they are thoroughly knowledgeable about the types of life insurance policies.

MARKET LEADER STRATEGIES FOLLOWED

Various marketing strategies are adopted by the sample respondents.

Position defence involves pouring maximum information about various types of policies with maximum risk and income coverage. Flanking defence guards the market position to protect the weak policies and to establish on the basis of counter arguments. Pre-emptive defence involves the laundering of a method before the policy holder starts to an offensive manner. Mobile defence involves the agent’s strategy of broadening and expanding his area of operation by diversifying. Therefore the sample sales managers and agents are asked to state the method of marketing strategies followed for marketing the insurance service. The details are shown in Table 4.6 for analysis.

100

TABLE - 4.6 MARKET LEADER STRATEGIES FOLLOWED

Market Leader Ranks Weighted Co-efficient Rank Strategies I II III IV V VI Score Positive Defence 40 58 40 22 48 16 868 3.875 2 Flanking Defence 22 28 58 96 12 8 824 3.679 4 Pre-Emptive 114 32 20 6 16 36 1010 4.509 1 Defence Counter-Offensive 20 64 48 32 48 12 836 3.732 3 Defence Mobile Defence 14 18 36 58 80 18 670 2.991 5 Construction 14 24 22 10 20 134 496 2.214 6 Defence Total 224 224 224 224 224 224 Source: Primary data

The sample sales managers and agents are asked to rank their type of

market leader strategies followed by them. The data collected are analysed by

assigning weights as per the ranks, which are for Rank I-6; Rank II-5; Rank III-4;

Rank IV-3; Rank V-2 and Rank VI-1.

It is found that Rank I goes to ‘Pre-Emptive Defence Strategy’; Rank II

goes to ‘Positive Defence Strategy’; Rank III goes to ‘Counter-Offence

Defence Strategy’; Rank IV goes to ‘Flanking Defence Strategy’; Rank V goes

to ‘Mobile Defence Strategy’ and Rank VI goes to ‘Construction Defence

Strategy’.

MARKET-CHALLENGER STRATEGY

Various marketing challenger strategies are adopted by the sample

respondents. An attack is called a frontal attack when the opponent’s strength is

101 challenged head on. In marketing, the fight is done in all fronts in market segments and areas where the opponent is currently strong. The general idea is that to win in a frontal attack, the challenger requires three times the fire power

(say Price of the product, quality of the product, sales effort, advertising effort and service effort etc.) of the opposite side. The challenger must be able to deploy superior fire power in the markets he is challenging.

Attacking a weak position in the opponent’s force is flank attack.

Challenger identifies the weak areas in the offering as well as marketing territories of the opponent and attacks those areas. A front attack may also be launched simultaneously, but the frontal attack is only to engage the opponent.

But the real victory is won in the flanks. Market share gain in weak territories is the objective, but the opponent is forced to defend his share even in his strong territories and products.

Guerrilla attack consists of waging small, intermittent attacks on different marketing territories of the opposing firm. The aim is to harass and demoralize the opponent initially before launching the main attack.

In a Bypass attack to gain market share, a firm identifies segments not served by the existing firms and makes efforts to gain market share.

The sample sales managers and agents are asked to state the type of market challenger strategy followed in the insurance service. The details are shown in Table 4.7 for analysis.

102

TABLE - 4.7 TYPE OF MARKET-CHALLENGER STRATEGY FOLLOWED-RANKING

Market Challenger Ranks Weighted Co-efficient Rank Strategy I II III IV Score Front Attack 68 82 30 44 622 2.777 2 Flank Attack 34 72 38 80 508 2.268 3 By Pass Attack 24 41 81 78 459 2.049 4 Guerrilla Attack 98 29 75 22 651 2.906 1 Total 224 224 224 224 Source: Primary data

The sample sales managers and agents are asked to rank their type of market-challengers strategies followed by them. The data collected are analysed by assigning weights as per the ranks, which are for Rank I-4;

Rank II-3; Rank III-2 and Rank IV-1.

It is found that Guerrilla attack has secured Rank-I; Front attack has secured Rank-II; Flank attack has secured Rank-III and Bypass attack has secured Rank-IV.

MARKET FOLLOWER STRATEGY

Market follower strategy is a strategy of product imitation. The innovator bears the expense of developing the new product, bringing in the technology, breaking entry barriers and educating the market. However, another firm can come along and copy or improve on a new product. A strategy of a company which does not directly challenge the market leaders, but attempts to benefit from their innovations and gain a profitable corner of the

103 market. Therefore the sample sales managers and agents are asked to state the type of market follower strategy followed in the insurance service. The details are shown in Table 4.8 for analysis.

TABLE - 4.8 TYPE OF MARKET FOLLOWER STRATEGY FOLLOWED-RANKING

Market Follower Ranks Weighted Co-efficient Rank Strategy I II III Score Following Closely 84 97 43 489 2.183 1 Following at a Distance 63 44 117 394 1.759 3 Following Selectively 77 83 64 461 2.058 2 Total 224 224 224 Source: Primary data

The sample sales managers and agents are asked to rank their type of market follower strategies followed by them. The data collected are analysed by assigning weights as per the ranks, which are for Rank I-3; Rank II-2 and

Rank III-1.

It is found that Rank-I is fetched by ‘Following Closely’; Rank-II is fetched by ‘Following Selectively’ and Rank-III is fetched by ‘Following at a

Distance’.

104

TYPE OF MARKETING STRATEGIES (RIVALRY) FOLLOWED

Rivalry strategies are also followed by the sample agents for marketing their products to various customers. Differentiating strategy involves operating in a heterogeneous area which required product differentiation. Product flanking refers to introduction of various combinations of products at different rates to cover the policyholder. Confrontation strategy means direct confrontation when needed. Demarketing involves attacking a perceived weakness of the policy holder. Offensive strategy involves the attacking of competitor products at the basic level itself.

The sample sales managers and agents may be following some rivalry strategies for marketing their services. The details of rivalry strategies followed by the sample respondents are collected and shown in Table 4.9 for analysis.

The opinions are analysed by providing as per Likert’s five point scaling technique. Always +2; Usually +1; Normally 0; Rarely -1 and Never -2.

Then the score is computed using the formula S = SUM (fp); where f = frequency and P = points.

Then Co-efficient is calculated by dividing the score value by total frequency. Co-efficient = Computed Scores (S) / Total number of Respondents (N).

105

TABLE - 4.9 TYPE OF MARKETING STRATEGIES (RIVALRY) FOLLOWED

Rival Always Usually Normally Rarely Never Total Points Co-efficient Strategies

Differentiating 91 28 20 27 58 224 67 0.299 Product Flanking 23 63 16 49 73 224 -86 -0.384 Confrontation 50 61 34 29 50 224 32 0.143 Defensive 24 22 59 41 78 224 -127 -0.567 Offensive 30 81 30 50 33 224 25 0.112 Remarketing 50 32 53 33 56 224 -13 -0.058 De marketing 20 59 50 39 56 224 -52 -0.232 Source: Primary data

Table 4.9 shows the details of rivalry marketing strategies followed by

sample sales managers and agents. Analysis shows that 91 sales managers and

agents have always followed differentiating strategy and 58 sales managers and

agents have never followed differentiating strategy; 23 sales managers and

agents have always followed product flanking strategy and 73 sales managers

and agents have never followed product flanking strategy; 50 sales managers

and agents have always followed confrontation strategy and 50 sales managers

and agents have never followed confrontation strategy; 24 sales managers and

agents have always followed defensive strategy and 78 sales managers and

agents have never followed defensive strategy; 30 sales managers and agents

have always followed offensive strategy and 33 sales managers and agents

have never followed offensive strategy; 50 sales managers and agents have

always followed remarketing strategy and 56 sales managers and agents have

never followed remarketing strategy and 20 sales managers and agents have

106 always followed de-marketing strategy and 56 sales managers and agents have never followed de-marketing strategy.

Points are calculated and it is found that the point for following

Differentiating Strategy is 67; Product Flanking Strategy is -86; Confrontation

Strategy is 32; Defensive Strategy is -127; Offensive Strategy is 25; Remarketing

Strategy is -13 and De-Marketing Strategy is -52.

The calculated co-efficient for differentiating strategy is 0.299; Product

Flanking Strategy is -0.384; Confrontation Strategy is 0.143; Defensive Strategy is

-0.567; Offensive Strategy is 0.112; Remarketing Strategy is -0.058 and

De-Marketing Strategy is -0.232.

It is inferred that the sample sales managers and agents have followed differentiating strategy to the maximum extent followed by confrontation strategy and offensive strategy. They have not followed product flanking strategy, defensive strategy, remarketing strategy and de-marketing strategy.

TYPE OF MARKETING STRATEGIES (FUNCTIONAL) FOLLOWED

Functional strategy is the set of decisions made in marketing such as pricing, product, promotion and distribution. The opinion about market strategies followed by the sample sales managers and agents are collected and shown in

Table 4.10 for analysis.

107

TABLE - 4.10 TYPE OF MARKETING STRATEGIES (FUNCTIONAL) FOLLOWED

Functional Always Usually Normally Rarely Never Total Points Co-efficient Strategies Product mix 47 28 88 32 29 224 32 0.143 Branding 40 20 86 30 48 224 -26 -0.116 Product Life 50 55 27 55 37 224 26 0.116 Positioning Pricing Mix (Cost) 31 22 43 53 75 224 -119 -0.531 Promotion Mix (Advertising and 28 50 28 59 59 224 -71 -0.317 Sales Promotion) Source: Primary data

Table 4.10 shows that 47 sales managers and agents have always

followed product mix strategy and 29 sales managers and agents have not

followed product mix strategy; 40 sales managers and agents have always

followed branding strategy and 48 sales managers and agents have not

followed branding strategy; 50 sales managers and agents have always

followed product life positioning strategy and 37 sales managers and agents

have not followed product life positioning strategy; 31 sales managers and

agents have always followed pricing strategy and 75 sales managers and agents

have not followed pricing strategy and 28 sales managers and agents have

always followed promotion mix strategy and 59 sales managers and agents

have not followed promotion mix strategy.

Points are calculated and it is found that the point for following product

mix strategy is 32; Branding strategy is -26; Product life positioning strategy is

26; Pricing strategy is -119 and Promotion mix strategy is -71.

108

The calculated co-efficient for product mix strategy is 0.143; Branding strategy is -0.116; Product life positioning strategy is 0.116; Pricing strategy is

-0.531 and Promotion mix strategy is -0.371.

It is inferred that the sample sales managers and agents have followed product mix strategy and then product life positioning strategy.

NUMBER OF TIMES APPROACHING THE PROSPECTIVE POLICYHOLDERS

The sample agents may be approaching their customers once, twice, thrice or more than thrice for canvassing the policies. The frequency of approaching the customers may differ among the sample sales managers and agents respondents. The data collected are shown in Table 4.11 for analysis.

TABLE - 4.11 NUMBER OF TIMES APPROACHING THE PROSPECTIVE POLICYHOLDERS Number of Times Sales Managers Agents Total 7 33 40 Once (12.50) (19.64) (17.86) 19 46 65 Twice (33.93) (27.68) (29.02) 27 21 48 Thrice (48.21) (12.50) (21.43) 3 68 71 More than Thrice (5.36) (40.48) (31.69) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent the percentage to total

109

Table 4.11 shows that in the sales managers’ category, 12.50 per cent of them have approached the prospective policyholders once; 33.93 per cent of them have approached the prospective policyholders twice; 48.21 per cent of them have approached the prospective policyholders thrice and 5.36 per cent of them have approached the prospective policyholders more than three times.

Among the agents, 19.64 per cent of them have approached the prospective policyholders once; 27.68 per cent of them have approached the prospective policyholders twice; 12.50 per cent of them have approached the prospective policyholders thrice and 40.48 per cent of them have approached the prospective policyholders more than three times.

In general, majority of sales managers and agents have approached the prospective policyholders more than three times.

SUCCESS RATE IN GETTING POLICYHOLDERS

The agents and sales managers are approaching their prospective customers many times for canvassing the policies. With the help of approaching the prospective customers, success rate may differ. Therefore the sample agents and sales managers are asked to state their success rate in getting policyholders.

They are collected and shown in Table 4.12.

110

TABLE - 4.12 SUCCESS RATE IN GETTING POLICYHOLDERS

Success Rate Sales Managers Agents Total 18 33 40 Less than 20% (32.14) (19.64) (17.86) 12 46 65 20% - 40% (21.44) (27.68) (29.02) 9 21 48 40% - 60% (16.07) (12.50) (21.43) 13 68 71 60% - 80% (23.21) (40.48) (31.69) 4 44 48 80% - 100% (7.14) (26.19) (21.43) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent the percentage to total

Table 4.12 shows that in the sales managers category, the success rate of

32.14 per cent of them is less than 20 per cent; the success rate of 21.44 per cent of them is 20 to 40 per cent; the success rate of 16.07 per cent of them is

40 to 60 per cent; the success rate of 23.21 per cent of them is 60 to 80 per cent and the success rate of 7.14 per cent of them is 80 to 100 per cent.

Among the agents, the success rate of 19.64 per cent of them is less than

20 per cent; the success rate of 27.68 per cent of them is 20 to 40 per cent; the success rate of 12.50 per cent of them is 40 to 60 per cent; the success rate of

40.48 per cent of them is 60 to 80 per cent and the success rate of 26.19 per cent of them is 80 to 100 per cent.

111

In general, the success rate of majority of sales managers and agents in getting policyholders is 60 to 80 per cent.

NUMBER OF POLICIES TAKEN BY POLICYHOLDERS

Life insurance can guard the family and loved ones from potential financial disaster. Therefore the number of policies taken by policyholders from sample sales managers and agents respondents are collected and shown in table 4.13 for analysis.

TABLE - 4.13 NUMBER OF POLICIES TAKEN BY POLICYHOLDERS Number of Policies Sales Managers Agents Total 9 47 56 One (16.07) (27.98) (25.00) 11 59 70 Two (19.64) (35.12) (31.25) 22 28 50 Three (39.29) (16.67) (22.32) 14 34 48 More than Three (25.00) (20.23) (21.43) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent the percentage to total

Table 4.13 shows that among sales managers, 16.07 per cent of them have expressed that one policy is taken by the policyholders; 19.64 per cent of them have expressed that two policies are taken by the policyholders; 39.29 per cent of them have expressed that three policies are taken by the policyholders and 25.00 per cent of them have expressed that more than three policies are taken by the policyholders.

112

Among agents, 27.98 per cent of them have expressed that one policy is

taken by the policyholders; 35.12 per cent of them have expressed that two

policies are taken by the policyholders; 16.67 per cent of them have expressed

that three policies are taken by the policyholders and 20.23 per cent of them

have expressed that more than three policies are taken by the policyholders.

In general, majority of sales managers and agents have expressed that

two policies are taken by policyholders.

PURPOSE OF INSURING LIFE

Policyholders insure for multiple reasons. The main purpose of any life

insurance policy is to protect their family and loved ones against the risk of

financial uncertainty. Life insurance can provide for the welfare of their family

in case of their death. Therefore the sample sales managers and agents are

asked whether they have explained the prime reason for insuring life. The data

are collected and shown in Table 4.14 for analysis.

TABLE - 4.14 PURPOSE OF INSURING LIFE Purpose Always Usually Normally Rarely Never Total Points Co-efficient Family 81 45 40 13 45 224 104 0.464 Protection Children Education/ 43 93 5 53 30 224 66 0.295 Marriage Health 50 68 12 43 51 224 23 0.103 Protection Retirement 65 40 13 83 23 224 41 0.183 Benefit Tax 50 45 31 85 13 224 34 0.152 Benefit Others 54 48 35 32 55 224 14 0.063 Source: Primary data

113

Table 4.14 shows that 81 sales managers and agents have explained family protection benefit and 45 sales managers and agents have not explained family protection benefit; 43 sales managers and agents have explained children education and marriage benefit and 30 sales managers and agents have not explained children education and marriage benefit; 50 sales managers and agents have explained health protection benefit and 51 sales managers and agents have not explained health protection benefit; 65 sales managers and agents have explained retirement benefit and 23 sales managers and agents have not explained retirement benefit; 50 sales managers and agents have explained tax benefit and 13 sales managers and agents have not explained tax benefit and 54 sales managers and agents have explained other benefits and 55 sales managers and agents have not explained other benefits.

Points are calculated and it is found that the point for explaining Family

Protection Benefit is 104; Children Education and Marriage Benefit is 66;

Health Protection Benefit is 23; Retirement Benefit is 41; Tax Benefit is 34 and

Other Benefits is 14.

The calculated co-efficient for Family Protection Benefit is 0.464;

Children Education And Marriage Benefit is 0.295; Health Protection Benefit is 0.103; Retirement Benefit is 0.183; Tax Benefit is 0.152 and Other Benefits is 0.063.

It is inferred that the sales managers and agents have explained all types of benefits to policyholders especially family protection benefit first and then children education and marriage benefit.

114

POLICY DETAILS

The sample agents are asked to state whether they have explained the

risk coverage, premium payments, maturity details, penal provisions, loan

aspects, bonus details and nomination details and tax benefits aspects. The

details are shown in Table 4.15 for analysis.

TABLE - 4.15 POLICY DETAILS

To Only Policy Always Usually Normally some if Total Points Co-efficient Details extent asked Risk 34 77 14 52 47 224 -1 -0.004 Coverage Premium 13 42 33 87 49 224 -117 -0.522 Payment Maturity 30 120 27 43 4 224 129 0.576 Details Penal 3 7 30 71 113 224 -284 -1.268 Provision Loan 9 32 30 41 112 224 -215 -0.960 Aspects Bonus 74 43 8 71 28 224 64 0.286 Details Nomination 64 47 13 63 37 224 38 0.170 Details Tax Benefits 70 37 63 31 23 224 100 0.446 Others 80 34 60 27 23 224 121 0.540 Source: Primary data

Table 4.15 shows that 34 sales managers and agents have always

explained risk coverage and 47 sales managers and agents have explained risk

coverage only if asked; 13 sales managers and agents have always explained

premium payment and 49 sales managers and agents have explained premium

payment only if asked; 30 sales managers and agents have always explained

115 maturity details and 4 sales managers and agents have explained maturity details only if asked; 3 sales managers and agents have always explained penal provision and 113 sales managers and agents have explained penal provision only if asked; 9 sales managers and agents have always explained loan aspects and 112 sales managers and agents have explained loan aspect only if asked;

74 sales managers and agents have always explained bonus details and 28 sales managers and agents have explained bonus details only if asked; 64 sales managers and agents have always explained nomination details and 37 sales managers and agents have explained nomination details only if asked; 70 sales managers and agents have always explained tax benefits and 23 sales managers and agents have explained tax benefits only if asked and 80 sales managers and agents have always explained other details and 23 sales managers and agents have explained other details only if asked.

Points are calculated and it is found that the point for explaining risk coverage is -1; Premium Payment is -117; Maturity Details is -129; Penal

Provision is -284; Loan Aspect is -215; Bonus Details is -64; Nomination

Details is -38; Tax Benefit is -100 and Other Details is -121.

The calculated co-efficient for Risk Coverage is -0.004; Premium

Payment is -0.522; Maturity Details is 0.576; Penal Provision is -1.268; Loan

Aspect is -0.960; Bonus Details is 0.286; Nomination Details is 0.170; Tax

Benefit is 0.446 and Other Details is 0.540.

116

It is inferred that the sales managers and agents have explained policy details to policyholders especially maturity details, bonus details, nomination details, tax benefits and other details.

RECOMMENDATION FOR NOMINATION

Nominee should be appointed by the policyholder for all insurance policies. The nominee may be spouse, father, mother, son, daughter, brother/sister etc. Therefore sample respondents are asked to state whether they have recommended the nominee and the data are shown in Table 4.16 for analysis.

TABLE - 4.16 RECOMMENDATION FOR NOMINATION Nominee Sales Managers Agents Total 20 74 94 Spouse (35.71) (44.05) (41.96) 6 13 19 Father (10.71) (7.74) (8.48) 5 12 17 Mother (8.93) (7.14) (7.59) 15 31 46 Son (26.79) (18.46) (20.54) 7 20 27 Daughter (12.50) (11.90) (12.05) 2 10 12 Brother/Sister (3.57) (5.95) (5.36) 1 8 9 Others (1.79) (4.76) (4.02) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent the percentage to total

117

Table 4.16 shows that among sales managers, 35.71 per cent of them have recommended ‘Spouse’ as nominee; 10.71 per cent of them have recommended ‘Father’ as nominee; 8.93 per cent of them have recommended

‘Mother’ as nominee; 26.79 per cent of them have recommended ‘Son’ as nominee; 12.50 per cent of them have recommended ‘Daughter’ as nominee;

3.57 per cent of them have recommended ‘Brother/Sister’ as nominee and 1.79 per cent of them have recommended ‘Other persons’ as nominee.

Among sales managers, 44.05 per cent of them have recommended

‘Spouse’ as nominee; 7.74 per cent of them have recommended ‘Father’ as nominee; 7.14 per cent of them have recommended ‘Mother’ as nominee;

18.46 per cent of them have recommended ‘Son’ as nominee; 11.90 per cent of them have recommended ‘Daughter’ as nominee; 5.95 per cent of them have recommended ‘Brother/Sister’ as nominee and 4.76 per cent of them have recommended ‘Other persons’ as nominee.

In general, majority of sales managers and agents have recommended

‘Spouse’ as nominee.

METHOD OF PAYMENT OF PREMIUM

Premium for policies may be paid monthly as salary savings, quarterly, half-yearly or on annual basis depending on the type of policies. Therefore, the sample sales managers and agents are asked to state whether they have recommended the method of payment of premium to policyholders. The data relating to this, are collected and shown in table 4.17 for analysis.

118

TABLE - 4.17 METHOD OF PAYMENT OF PREMIUM

Method Sales Managers Agents Total

11 40 51 Salary Savings (19.64) (23.81) (22.77) 5 29 34 Annual Premium (8.93) (17.26) (15.18) 36 73 109 Quarterly Premium (64.29) (43.45) (48.66) 4 26 30 Half Yearly Premium (7.14) (15.48) (13.39) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 4.17 shows that in the ‘sales managers’ category, 19.44 per cent of them have recommended ‘Salary Savings’ as the method of payment of premium; 8.93 per cent of them have recommended ‘Annual Premium’ as the method of payment of premium; 64.29 per cent of them have recommended

‘Quarterly Premium’ as the method of payment of premium and 7.14 per cent of them have recommended ‘Half Yearly Premium’ as the method of payment of premium.

Among the agents, 23.81 per cent of them have recommended ‘Salary

Savings’ as the method of payment of premium; 17.26 per cent of them have recommended ‘Annual Premium’ as the method of payment of premium; 43.45 per cent of them have recommended ‘Quarterly Premium’ as the method of

119 payment of premium and 15.48 per cent of them have recommended ‘Half

Yearly Premium’ as the method of payment of premium.

In general, majority of sales managers and agents have recommended

‘Quarterly Premium’ as the method of payment of premium.

INFORMATION ABOUT BONUS ADDED

Bonus is the extra sum which gets accumulated to any insurance policy on a yearly basis which will be paid to the policy holder on the maturity of the plan or in the case of his death whichever matures earlier. Therefore the sample sales managers and agents are asked to state whether they have given information about bonus added every year to policyholders and they are collected. The details are shown in Table 4.18 for analysis.

TABLE - 4.18 INFORMATION ABOUT BONUS ADDED Factors Sales Managers Agents Total 2 43 45 Always (3.57) (25.60) (20.09) 16 27 43 Usually (28.57) (16.07) (19.20) 31 39 70 Normally (55.36) (23.21) (31.25) 4 33 37 Rarely (7.14) (19.64) (16.52) 3 26 29 Never (5.36) (15.48) (12.94) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

120

Table 4.18 shows that in the sales managers’ category, 3.57 per cent of them have always told about bonus added every year; 28.57 per cent of them have usually told about bonus added every year; 55.36 per cent of them have normally told about bonus added every year; 7.14 per cent of them have rarely told about bonus added every year and 5.36 per cent of them have never told about bonus added every year.

Among agents, 25.60 per cent of them have always told about bonus added every year; 16.07 per cent of them have usually told about bonus added every year; 23.21 per cent of them have normally told about bonus added every year; 19.64 per cent of them have rarely told about bonus added every year and

15.48 per cent of them have never told about bonus added every year.

In general, majority of sales managers and agents have normally told about bonus added every year.

A null hypothesis is framed and tested.

Ho: The sales managers and agents do not differ in their perception towards

information given about bonus added every year to policyholders.

Level of D Critical Test Result Significance Value Value Kolmogorov- 5% 0.10 0.091 Rejected Smirnov

Since the D value is higher than the critical value, the null hypothesis is rejected. Hence, the sales managers and agents differ in their perception towards information given about bonus added every year to policyholders.

121

ASSURANCE FOR ADDITIONAL SERVICES

Many additional services are available to the policyholders such as medi-claim facilities, advance deposits, loans, disability benefits, accident benefits, salary savings scheme, pensioner payment, minor policies, minor girl’s policy and tax exemption benefits. Therefore the sample sales managers and agents are asked to state whether they have given assurance for additional services and they are collected. The details are shown in Table 4.19 for analysis.

TABLE - 4.19 ASSURANCE FOR ADDITIONAL SERVICES

Additional Services Sales Managers Agents Total

12 28 40 Medi Claim Facilities (21.43) (16.67) (17.86) 2 6 8 Advance Deposits (3.57) (3.57) (3.57) 13 58 71 Loans (23.21) (34.52) (31.70) 1 13 14 Disability Benefits (1.79) (7.74) (6.25) 3 8 11 Accident Benefit (5.36) (4.76) (4.91) 6 15 21 Salary Saving Scheme (10.71) (8.93) (9.37) 10 11 21 Pensioner Payment (17.86) (6.55) (9.37) 2 7 9 Minor Policies (3.57) (4.17) (4.02) 2 5 7 Minor Girls’ Policies (3.57) (2.98) (3.13) 5 17 22 Tax Exemption Benefits (8.93) (10.11) (9.82) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

122

Table 4.19 shows that in the sales managers’ category, 21.43 per cent of them have given assurance for medi-claim facilities; 3.57 per cent of them have given assurance for advance deposits; 23.21 per cent of them have given assurance for loans; 1.79 per cent of them have given assurance for disability benefits; 5.36 per cent of them have given assurance for accident benefit; 10.71 per cent of them have given assurance for salary saving scheme; 17.86 per cent of them have given assurance for pensioner payment; 3.57 per cent of them have given assurance for minor policies; 3.57 per cent of them have given assurance for minor girls’ policies and 8.93 per cent of them have given assurance for tax exemption benefits.

Among agents, 16.67 per cent of them have given assurance for medi- claim facilities; 3.57 per cent of them have given assurance for advance deposits; 34.52 per cent of them have given assurance for loans; 7.74 per cent of them have given assurance for disability benefits; 4.76 per cent of them have given assurance for accident benefit; 8.93 per cent of them have given assurance for salary saving scheme; 6.55 per cent of them have given assurance for pensioner payment; 4.17 per cent of them have given assurance for minor policies; 2.98 per cent of them have given assurance for minor girls’ policies and 10.11 per cent of them have given assurance for tax exemption benefits.

In general, majority of sales managers and agents have given assurance for medi-claim facilities.

123

NUMBER OF TIMES ASSISTANCE GIVEN

The agents and sales managers are rendering assistance to policyholders many times for getting loans. The number of times they are rendering assistances are analysed and shown in Table 4.20.

TABLE - 4.20 NUMBER OF TIMES ASSISTANCE GIVEN Number Sales Managers Agents Total 26 76 102 Once (46.43) (45.24) (45.54) 20 51 71 Twice (35.71) (30.36) (31.70) 8 16 24 Thrice (14.29) (9.52) (10.71) 2 25 27 More than Thrice (3.57) (14.88) (12.05) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 4.20 shows that in the sales managers’ category, 46.43 per cent of them have assisted one time to the policyholders for getting loan; 35.71 per cent of them have assisted two times to the policyholders for getting loan;

14.29 per cent of them have assisted three times to the policyholders for getting loan and 3.57 per cent of them have assisted more than three times to the policyholders for getting loan.

Among agents, 45.27 per cent of them have assisted one time to the policyholders for getting loan; 30.36 per cent of them have assisted two times to the policyholders for getting loan; 9.52 per cent of them have assisted three

124 times to the policyholders for getting loan and 14.88 per cent of them have assisted more than three times to the policyholders for getting loan.

In general, majority of sales managers and agents have assisted one time to the policyholders for availing loan.

PROBLEMS AT THE TIME OF GRANTING LOAN

There are many problems while granting loans. Therefore problems faced at the time of granting loan to policyholders by sample sales managers and agents are analysed and shown in Table 4.21.

TABLE - 4.21 PROBLEMS AT THE TIME OF GRANTING LOAN Sales Problems Agents Total Managers 7 30 37 Refusing to give Application (12.5) (17.86) (16.52) 5 15 20 Asking you to come on Another day (8.93) (8.93) (8.93) Fixing lesser time in the forenoon 8 22 30 session for Application (14.29) (13.10) (13.39) 27 65 92 Quantity of Loan Sanctioning (48.29) (38.69) (41.07) 3 17 20 Insisting for Identification (5.36) (10.12) (8.93) 4 9 13 Insisting for Surety (7.14) (5.35) (5.80) 2 10 12 Other Problems (3.57) (5.95) (5.36) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

125

Table 4.21 shows that in the sales managers’ category, 12.5 per cent of them have refused to give application; 8.93 per cent of them have asked the policyholders to come on another day; 14.29 per cent of them have fixed lesser time in the forenoon session for application; 48.21 per cent of them have sanctioned lesser quantity of loan; 5.36 per cent of them have insisted for identification; 7.14 per cent of them have insisted for surety and 3.57 per cent of them have faced other sort of problems.

Among agents, 17.86 per cent of them have refused to give application;

8.93 per cent of them have asked the policyholders to come on another day;

13.10 per cent of them have fixed lesser time in the forenoon session for application; 38.69 per cent of them have sanctioned lesser quantity of loan;

10.12 per cent of them have insisted for identification; 5.35 per cent of them have insisted for surety and 5.95 per cent of them have faced other sort of problems.

In general, majority of sales managers and agents have sanctioned lesser quantity of loan.

PROBLEMS FACED IN VARIOUS STAGES

The sales managers and agents are facing problems while processing application, collecting premium and returning back money to policyholders.

Therefore the problems faced in various stages by sales managers and agents are analysed and shown in Table 4.22.

126

TABLE - 4.22 PROBLEMS FACED IN VARIOUS STAGES

Problems Sales Managers Agents Total 12 22 34 Application Processing Stage (21.43) (13.10) (15.18) 10 44 54 Premium Collection Stage (17.86) (26.19) (24.11)

Loan Application Processing 12 60 72 Stage (21.43) (35.71) (32.14) 11 29 40 Money Back Stage (19.64) (17.26) (17.86) 11 13 24 Others (19.64) 7.74) (10.71) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 4.22 shows that in the sales managers’ category, 21.43 per cent of them have faced problem during application processing stage; 17.86 per cent of them have faced problem during premium collection stage; 21.43 per cent of them have faced problem during loan application processing stage; 19.64 per cent of them have faced problem during money back stage and 19.64 per cent of them have faced problem during other kinds of problems.

Among agents, 13.10 per cent of them have faced problem during application processing stage; 26.19 per cent of them have faced problem during premium collection stage; 35.71 per cent of them have faced problem during

127 loan application processing stage; 17.26 per cent of them have faced problem during money back stage and 7.74 per cent of them have faced problem during other kinds of problems.

In general, majority of sales managers and agents have faced problems during loan application processing stage.

A null hypothesis is framed and tested.

Ho: The sales managers and agents do not significantly differ in their problem

faced at various stages.

Degree of Level of Table Calculated Test Result Freedom Significance Value Value Chi-Square 4 5% 9.488 11.486 Rejected

Since the calculated value is higher than the table value, the null hypothesis is rejected. Hence, the sales managers and agents significantly differ in their problem faced at various stages.

OPINION ABOUT HIDDEN CHARGES

Hidden charges include premium allocation charge, fund management charges, surrender charges, policy administration charges, mortality charges, fund switching charges, switching charges, partial withdrawal charges, revival charges and miscellaneous charges. Therefore the sample sales managers and agents are asked to state their opinion about hidden charges. They are collected and shown in Table 4.23.

128

TABLE - 4.23 OPINION ABOUT HIDDEN CHARGES

Opinion Sales Managers Agents Total 12 15 27 Highly Satisfied (21.43) (8.93) (12.05) 11 21 32 Satisfied (19.93) (12.50) (14.29) 5 26 31 No Opinion (8.93) (15.48) (13.84) 9 37 46 Dissatisfied (16.07) (22.02) (20.53) 19 69 88 Highly Dissatisfied (33.93) (41.07) (39.29) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 4.23 shows that in the sales managers’ category, 21.43 per cent of them are highly satisfied about the hidden charges; 19.64 per cent of them are satisfied about the hidden charges; 8.93 per cent of them are not opined about the hidden charges; 16.07 per cent of them are dissatisfied about the hidden charges and 33.93 per cent of them are highly dissatisfied about the hidden charges.

Among agents, 8.93 per cent of them are highly satisfied about the hidden charges; 12.50 per cent of them are satisfied about the hidden charges;

15.48 per cent of them are not opined about the hidden charges; 22.02 per cent

129 of them are dissatisfied about the hidden charges and 41.07 per cent of them are highly dissatisfied about the hidden charges.

In general, majority of sales managers and agents are highly dissatisfied about hidden charges.

A null hypothesis is framed and tested.

Ho: The sales managers and agents do not differ in their opinion about

hidden charges.

Level of D Critical Test Result significance value value Kolmogorov-Smirnov 5% 0.20 0.091 Rejected

Since the D value is higher than the critical value, the null hypothesis is rejected. Hence, the sales managers and agents differ in their opinion about hidden charges.

OPINION ABOUT RISK COVERAGE ASPECT

An insurance contract reimburses beneficiaries for covered losses in the event of an unfortunate occurrence such as an illness, accident or death.

Therefore the sample sales managers and agents are asked to state their opinion about risk coverage aspect. They are collected and shown in Table 4.24 for analysis.

130

TABLE - 4.24 OPINION ABOUT RISK COVERAGE ASPECT

Opinion Sales Managers Agents Total 10 17 22 Highly Satisfied (17.86) (10.12) (12.05) 7 32 39 Satisfied (12.50) (19.05) (17.41) 6 29 35 No Opinion (10.71) (17.26) (15.63) 3 61 64 Dissatisfied (5.36) (36.31) (28.57) 30 29 59 Highly Dissatisfied (53.57) (17.26) (26.34) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 4.24 shows that in the sales managers’ category, 17.86 per cent of them are highly satisfied about risk coverage aspect; 12.50 per cent of them are satisfied about risk coverage aspect; 10.71 per cent of them are not opined about risk coverage aspect; 5.36 per cent of them are dissatisfied about risk coverage aspect and 53.57 per cent of them are highly dissatisfied about risk coverage aspect.

Among agents, 10.12 per cent of them are highly satisfied about risk coverage aspect; 19.05 per cent of them are satisfied about risk coverage aspect; 17.26 per cent of them are not opined about risk coverage aspect; 36.31

131 per cent of them are dissatisfied about risk coverage aspect and 17.26 per cent of them are highly dissatisfied about risk coverage aspect.

In general, majority of sales managers and agents are dissatisfied about risk coverage aspect.

A null hypothesis is framed and tested.

Ho: The sales managers and agents do not differ in their opinion about risk

coverage aspect.

Level of D Critical Test Result significance value value Kolmogorov-Smirnov 5% 0.15 0.091 Rejected

Since the D value is higher than the critical value, the null hypothesis is rejected. Hence, the sales managers and agents differ in their opinion about risk coverage aspect.

OPINION ABOUT TAX CONCESSION

In India, tax concession is given on life insurance policy under the

Income Tax Act, 1961. Therefore the sample sales managers and agents are asked to state their opinion about tax concession. They are collected and shown in Table 4.25.

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TABLE - 4.25 OPINION ABOUT TAX CONCESSION

Opinion Sales Managers Agents Total

6 26 32 Highly Satisfied (10.72) (15.48) (14.29) 4 18 22 Satisfied (7.14) (10.71) (9.82) 9 29 38 No Opinion (16.07) (17.26) (16.96) 2 47 49 Dissatisfied (3.57) (27.98) (21.88) 35 48 83 Highly Dissatisfied (62.50) (28.57) (37.05) 56 168 224 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 4.25 shows that in the sales managers’ category, 10.72 per cent of them are highly satisfied about tax concession; 7.14 per cent of them are satisfied about tax concession; 16.07 per cent of them are not opined about tax concession; 3.57 per cent of them are dissatisfied about tax concession and

62.50 per cent of them are highly dissatisfied about tax concession.

Among agents, 15.48 per cent of them are highly satisfied about tax concession; 10.71 per cent of them are satisfied about tax concession; 17.26 per cent of them are not opined about tax concession; 27.98 per cent of them are dissatisfied about tax concession and 28.57 per cent of them are highly dissatisfied about tax concession.

133

In general, majority of sales managers and agents are highly dissatisfied about tax concession.

A null hypothesis is framed and tested.

Ho: The sales managers and agents do not differ in their opinion about tax

concession.

Level of D Critical Test Result Significance Value Value Kolmogorov-Smirnov 5% 0.19 0.091 Rejected

Since the D value is higher than the critical value, the null hypothesis is rejected. Hence, the sales managers and agents differ in their opinion about tax concession.

In this chapter, marketing mix, market leader strategies and market- challenger strategies followed by sample sales managers and agents and problems of them while granting loans to policyholders are analysed. In the next chapter, perception of policyholders and their problems are dealt with.

Chapter - V

Analysis of Perception of Policyholders and their Problems 134

CHAPTER - V ANALYSIS OF PERCEPTION OF POLICYHOLDERS AND THEIR PROBLEMS

The marketing starts and ends with consumers. Policyholders are the real beneficiaries of private sector life insurance companies and the success of marketing strategies depend on the perception of the policyholders on various methods of services offered to them through agents. The effectiveness of marketing of private sector insurance companies products can be analysed by using the perception of policyholders on various attributes, which include their opinions about bonus amount added, premium charged, tax benefit in the initial stage, hidden charges while opting for loans, etc. For this purpose, the sample policyholders are classified into urban and semi-urban respondents, and their responses are gathered for analysis.

SEX OF SAMPLE POLICYHOLDERS

Sex is the important deciding factor to take policy. Hence the sample policyholders are classified on the basis of sex and the data are given in the table 5.1 for analysis.

TABLE - 5.1 SEX OF SAMPLE POLICYHOLDERS Sex Urban Semi Urban Total 117 95 212 Male (63.24) (57.58) (60.57) 68 70 138 Female (36.76) (42.42) (39.43) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

135

Table 5.1 shows the sex of the sample policyholders. Analysis reveals that among the urban policyholders, 63.24 per cent of the policyholders are male and 36.76 per cent of them are female. Among the semi urban policyholders,

57.58 per cent of them are male and 42.42 per cent of them are female. In general 60.57 per cent of them are male and 39.43 per cent of them are female.

It is inferred that majority of the sample policyholders are male.

MARITAL STATUS OF THE SAMPLE POLICYHOLDERS

Marital status has been considered as one of the factors promoting utilisation of life insurance in private insurance. Hence the details of marital status of sample policyholders are collected and shown in Table 5.2 for analysis.

TABLE - 5.2 MARITAL STATUS OF THE SAMPLE POLICYHOLDERS Marital Status Urban Semi Urban Total 134 86 220 Married (72.43) (52.12) (62.89) 51 79 130 Unmarried (27.57) (47.88) (37.14) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.2 shows the marital status of the sample policyholders. Analysis reveals that among the urban policyholders, 72.43 per cent of the policyholders are married and 27.57 per cent of them are unmarried. Among the semi urban policyholders, 52.12 per cent of them are married and 47.88 per cent of them are unmarried. In general 62.89 per cent of them are married and 37.14 per cent of them are unmarried.

136

It is inferred that majority of the sample policyholders are married.

TYPES OF POLICIES HELD

Different types of policies are offered by private sector life insurance companies such as Endowment policy, Whole life policy, Children endowment policy, etc. Therefore, the types of policies held by sample policyholders are collected and shown in Table 5.3 for analysis.

TABLE - 5.3 TYPES OF POLICIES HELD Types Of Policies Urban Semi Urban Total 15 12 27 Endowment Policy (8.11) (7.27) (7.71) 29 23 52 Whole Life Policy (15.68) (13.94) (14.86) 35 34 69 Children Endowment Policy (18.92) (20.61) (19.72) 20 17 37 Limited Payment Policy (10.81) (10.30) (10.57) 13 12 25 Joint Life Policy (7.03) (7.27) (7.14) 17 11 28 Convertible Whole Time Policy (9.19) (6.67) (8.00) 16 15 31 Anticipated Policy (8.64) (9.09) (8.86) 12 10 22 Annuity Policy (6.48) (6.06) (6.29) 18 14 32 Sinking Life Policy (9.73) (8.49) (9.14) 10 17 27 Others (5.41) (10.30) (7.71) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

137

Table 5.3 shows the data relating to the type of policy held by the sample policyholders. Analysis reveals that among the urban policyholders,

8.11 per cent of them have held endowment policy; 15.68 per cent of them have held whole time policy; 18.92 per cent of them have held children endowment policy; 10.81 per cent of them have held limited payment policy and the rest 46.48 per cent of them have held other types of policies.

Among the semi urban policyholders, 7.27 per cent of them have held endowment policy; 13.94 per cent of them have held whole time policy; 20.61 per cent of them have held children endowment policy; 10.30 per cent of them have held limited payment policy and the rest 47.88 per cent of them have held other types of policies.

In general, 7.71 per cent of the policyholders have held endowment policy; 14.86 per cent of them have held whole time policy; 19.72 per cent of them have held children endowment policy; 10.57 per cent of them have held limited payment policy and the rest 47.34 per cent of them have held other types of policies.

It is inferred that majority of the sample policyholders have held children endowment policy.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to types of policies held.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 9 16.9 4.005 Accepted

138

Since the calculated value is lesser than the table value, the null hypothesis is accepted. Hence the urban and semi urban sample policyholders do not differ with respect to types of policies held.

REASONS FOR INSURING LIFE

Policyholders insure their life for multiple reasons such as family protection, children education/marriage, health protection, etc. Therefore they are asked to state the prime reason for insuring life. The data are collected and shown in Table 5.4 for analysis.

TABLE - 5.4 REASONS FOR INSURING LIFE Reasons Urban Semi Urban Total 25 19 44 Family Protection (13.51) (11.52) (12.57) 62 16 78 Children Education Marriage (33.52) (9.70) (22.29) 23 67 90 Health Protection (12.43) (40.60) (25.71) 40 39 79 Retirement Benefit (21.62) (23.63) (22.57) 20 13 33 Tax Benefit (10.81) (7.88) (9.43) 15 11 26 Others (8.11) (6.67) (7.43) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.4 shows the data relating to the reasons for insuring life by the sample policyholders. Analysis reveals that among the urban policyholders,

13.51 per cent of them have insured their life for family protection; 33.52 per

139 cent of them have insured their life for children education/ marriage; 12.43 per cent of them have insured their life for health protection; 21.62 per cent of them have insured their life for retirement benefit; 10.81 per cent of them have insured their life for tax benefit and the rest 8.11 per cent of them have insured their life for other reasons.

Among the semi urban policyholders, 11.52 per cent of them have insured their life for family protection; 9.70 per cent of them have insured their life for children education/ marriage; 40.60 per cent of them have insured their life for health protection; 23.63 per cent of them have insured their life for retirement benefit; 7.88 per cent of them have insured their life for tax benefit and the rest 6.67 per cent of them have insured their life for other reasons.

In general, 12.57 per cent of the policyholders have insured their life for family protection; 22.29 per cent of them have insured their life for children education/ marriage; 25.71 per cent of them have insured their life for health protection; 22.57 per cent of them have insured their life for retirement benefit;

9.43 per cent of them have insured their life for tax benefit and the rest 7.43 per cent of them have insured their life for other reasons.

It is inferred that majority of the sample policyholders have insured their life for health protection.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to reasons for insuring their life.

140

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 5 11.1 50.588 Rejected

Since calculated value is greater than the table value, the null hypothesis is rejected. Hence the urban and semi urban sample policyholders differ with respect to reasons for insuring their life.

NOMINATION PROVIDED

The nominee may be spouse, son, daughter, parents, sisters, brothers, etc. Hence the sample respondents are asked to state the name of the persons nominated by them. They are collected and shown in Table 5.5 for analysis.

TABLE - 5.5 NOMINATION PROVIDED

Nominee Urban Semi Urban Total 106 87 186 Spouse (53.51) (52.73) (53.14) 29 40 69 Son (15.68) (24.24) (19.71) 22 11 33 Daughter (11.89) (6.67) (9.43) 23 12 35 Parents (12.43) (7.27) (10.00) 12 15 27 Others (6.49) (9.09) (7.72) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

141

Table 5.5 shows the data relating to the nomination given by the sample policyholders. Analysis reveals that among the urban policyholders, 53.51 per cent of them have nominated their spouse; 15.68 per cent of them have nominated their son; 11.89 per cent of them have nominated their daughter;

12.43 per cent of them have nominated their parents and 6.49 per cent of them have nominated other persons.

Among the semi urban policyholders, 52.73 per cent of them have nominated their spouse; 24.24 per cent of them have nominated their son; 6.67 per cent of them have nominated their daughter; 7.27 per cent of them have nominated their parents and 9.09 per cent of them have nominated other persons.

In general, 53.14 per cent of the sample policyholders have nominated their spouse; 19.71 per cent of them have nominated their son; 9.43 per cent of them have nominated their daughter; 10.00 per cent of them have nominated their parents and 7.72 per cent of them have nominated other persons.

It is inferred that majority of the sample policyholders have nominated their spouse as nominee.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to nominee provided for their policies.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 4 9.49 8.871 Accepted

142

Since the calculated value is lesser than the table value, the null hypothesis is accepted. Hence the urban and semi urban sample policyholders do not differ with respect to nominee provided for their policies.

INFLUENCING CATALYST

The prime influencer to choose private sector insurance company is agent, advertisement, relative, friends, sales manager, etc. Therefore the sample policyholders are asked to state the prime influencer to choose private sector insurance companies. They are collected and shown in Table 5.6 for analysis.

TABLE - 5.6 PRIME INFLUENCER TO CHOOSE PRIVATE SECTOR INSURANCE COMPANIES Influencer Urban Semi Urban Total 67 28 95 Agents (36.22) (16.97) (27.14) 31 44 75 Advertisement (16.76) (26.67) (21.43) 10 13 23 Relatives (5.41) (7.88) (6.57) 23 37 60 Friends (12.42) (22.42) (17.15) 34 28 62 Sales Managers (18.38) (16.97) (17.71) 20 15 35 Others (10.81) (9.09) (10.00) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

143

Table 5.6 shows the data relating to prime influencer of the sample policyholders to choose private sector insurance companies. Analysis reveals that among the urban policyholders, 36.22 per cent of them have opined agents as their prime influencer; 16.76 per cent of them have opined advertisement as their prime influencer; 5.41 per cent of them have opined relatives as their prime influencer; 12.42 per cent of them have opined friends as their prime influencer; 18.38 per cent of them have opined sales managers as their prime influencer and 10.81 per cent of them have opined others as their prime influencer.

Among the semi urban policyholders, 16.97 per cent of them have opined agents as their prime influencer; 26.67 per cent of them have opined advertisement as their prime influencer; 7.88 per cent of them have opined relatives as their prime influencer; 22.42 per cent of them have opined friends as their prime influencer; 16.97 per cent of them have opined sales managers as their prime influencer and 9.09 per cent of them have opined others as their prime influencer.

In general, 27.14 per cent of the sample policyholders have opined agents as their prime influencer; 21.43 per cent of them have opined advertisement as their prime influencer; 6.57 per cent of them have opined relatives as their prime influencer; 17.15 per cent of them have opined friends as their prime influencer; 17.71 per cent of them have opined sales managers as their prime influencer and 10.00 per cent of them have opined others as their prime influencer.

It is inferred that majority of the sample policyholders are influenced by agents to choose private sector insurance companies.

144

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to prime influencer to choose private sector insurance companies.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 5 11.1 22.152 Rejected Since calculated value is greater than the table value, the null hypothesis is rejected. Hence the urban and semi urban sample policyholders differ with respect to prime influencer to choose private sector insurance companies.

TIME TAKEN BY AGENTS FOR SENDING THE POLICY

The Company shall communicate the decision in writing within a period of 15 days from the receipt of proposal. Therefore the policyholders are asked to state the time taken by agents for sending the policy. They are collected and shown in Table 5.7 for analysis.

TABLE - 5.7 TIME TAKEN BY AGENTS FOR SENDING THE POLICY Time Taken Urban Semi Urban Total 57 29 86 Less than 15 Days (30.81) (17.58) (24.57) 23 43 66 15-30 Days (12.43) (26.06) (18.86) 42 52 94 30-45 Days (22.70) (31.52) (26.86) 15 26 41 45-60 Days (8.11) (15.76) (11.71) 48 15 63 60 Days & Above (25.95) (9.08) (18.00) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

145

Table 5.7 shows the data relating to the time taken by the agents for sending the policy of sample policyholders. Analysis reveals that among the urban policyholders, 30.81 per cent of them said that the agents have taken less than 15 days to send their policy; 12.43 per cent of them said that the agents have taken 15 to 30 days to send their policy; 22.70 per cent of them said that the agents have taken 30 to 45 days to send their policy; 8.11 per cent of them said that the agents have taken 45 to 60 days to send their policy and 25.95 per cent of them said that the agents have taken 60 days and above to send their policy.

Among the semi urban policyholders, 17.58 per cent of them said that the agents have taken less than 15 days to send their policy; 26.06 per cent of them said that the agents have taken 15 to 30 days to send their policy; 31.52 per cent of them said that the agents have taken 30 to 45 days to send their policy; 15.76 per cent of them said that the agents have taken 45 to 60 days to send their policy and 9.08 per cent of them said that the agents have taken 60 days and above to send their policy.

In general, 24.57 per cent of the sample policyholders said that the agents have taken less than 15 days to send their policy; 18.86 per cent of them said that the agents have taken 15 to 30 days to send their policy; 26.86 per cent of them said that the agents have taken 30 to 45 days to send their policy;

11.71 per cent of them said that the agents have taken 45 to 60 days to send their policy and 18.00 per cent of them said that the agents have taken 60 days and above to send their policy.

146

It is inferred that majority of the sample policyholders opined that the agents have taken 30 to 45 days to send their policy.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to the time taken by the agents for sending their policy.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 4 9.49 35.455 Rejected

Since the calculated value is greater than the table value, the null hypothesis is rejected. Hence the urban and semi urban sample policyholders differ with respect to the time taken by the agents for sending their policy.

POLICY HOLDING PERIOD

The number of years for which the policy is held by sample policyholders are collected and shown in Table 5.8 for analysis.

TABLE - 5.8 POLICY PERIOD OPTED Policy period Urban Semi Urban Total 57 69 126 Less than 5 Years (30.81) (41.82) (36.00) 72 60 132 5-10 Years (38.92) (36.36) (37.72) 41 24 65 10-15 Years (22.16) (14.55) (18.57) 15 12 27 15 Years & Above (8.11) (7.27) (7.71) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

147

Table 5.8 shows the data relating to the policy period opted by sample policyholders. Analysis reveals that among the urban policyholders, 30.81 per cent of them have opted for less than 5 years; 38.92 per cent of them have opted for 5 to 10 years; 22.16 per cent of them have opted for 10 to 15 years and 8.11 per cent of them have opted for 15 years and above.

Among the semi urban policyholders; 41.82 per cent of them have opted for less than 5 years; 36.36 per cent of them have opted for 5 to 10 years; 14.55 per cent of them have opted for 10 to 15 years and 7.27 per cent of them have opted for 15 years and above.

In general, 36.00 per cent of policyholders have opted for less than 5 years; 37.72 per cent of them have opted for 5 to 10 years; 18.57 per cent of them have opted for 10 to 15 years and 7.71 per cent of them have opted for 15 years and above.

It is inferred that majority of the sample policyholders have opted for 5 to 10 years.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to policy period opted.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 3 7.81 5.888 Accepted Since the calculated value is lesser than the table value, the null hypothesis is accepted. Hence, the urban and semi urban sample policyholders do not differ with respect to policy period opted.

148

METHOD OF PREMIUM PAYMENT

Premium for policies may be paid monthly, quarterly, half-yearly or on annual basis. Therefore the methods of premium payment as followed by the sample policyholders are collected and shown in Table 5.9 for analysis.

TABLE - 5.9 METHOD OF PAYMENT OF PREMIUM OPTED Method of Payment of Urban Semi Urban Total Premium 45 37 82 Salary Savings (24.32) (22.42) (23.43) 118 104 222 Quarterly Premium (63.78) (63.03) (63.43) 10 11 21 Half Yearly Premium (5.41) (6.67) (6.00) 12 13 25 Annual Premium (6.49) (7.88) (7.14) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.9 shows the data relating to the method of payment of premium opted. Analysis reveals that among the urban policyholders, 24.32 per cent of them have opted for salary savings method; 63.78 per cent of them have opted for quarterly premium; 5.41 per cent of them have opted for half yearly premium and 6.49 per cent of them have opted for annual premium.

Among the semi urban policyholders, 22.42 per cent of them have opted for salary savings method; 63.03 per cent of them have opted for quarterly premium; 6.67 per cent of them have opted for half yearly premium and 7.88 per cent of them have opted for annual premium.

149

In general, 23.43 per cent of policyholders have opted for salary savings method; 63.43 per cent of them have opted for quarterly premium; 6.00 per cent of them have opted for half yearly premium and 7.14 per cent of them have opted for annual premium.

It is inferred that majority of sample policyholders have opted for quarterly premium payment.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to method of payment of premium opted.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 3 7.81 0.609 Accepted

Since the calculated value is lesser than the table value, the null hypothesis is accepted. Hence, the urban and semi urban sample policyholders do not differ with respect to method of payment of premium opted.

SOURCES OF REMINDERS FOR THE PAYMENT OF PREMIUM

Post office or sales manager or courier office or mail is playing an important source for making remainders to the policyholders for the payment of premium. Hence sample policy holders are asked to state the sources of remainders for the payment of premium received by them. The data are collected and shown in Table 5.10 for analysis.

150

TABLE - 5.10 SOURCES OF REMINDERS FOR THE PAYMENT OF PREMIUM

Sources Urban Semi urban Total 78 56 134 Through Post (42.16) (33.94) (38.29) 36 27 63 Through Sales Manager (19.46) (16.36) (18.00) 29 33 62 Online (15.68) (20.00) (17.71) 42 49 91 Others (22.70) (29.70) (26.00) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.10 shows the data relating to the sources of remainders for the payment of premium received by sample policyholders. Analysis reveals that among the urban policyholders, 42.16 per cent of them have received through post; 19.46 per cent of them have received through sales managers; 15.68 per cent of them have received through online and 22.70 per cent of them have received through other sources.

Among the semi urban policyholders, 33.94 per cent of them have received through post; 16.36 per cent of them have received through sales managers; 20.00 per cent of them have received through online and 29.70 per cent of them have received through other sources.

151

In general, 38.29 per cent of policyholders have received through post;

18.00 per cent of them have received through sales managers; 17.71 per cent of them have received through online and 26.00 per cent of them have received through other sources.

It is inferred that majority of the sample policyholders have received the reminders for the payment of premium through post.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to sources of reminders received for the payment of premium.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value

Chi-Square 5% 3 7.81 4.565 Accepted

Since the calculated value is lesser than the table value, the null hypothesis is accepted. Hence, the urban and semi urban sample policyholders do not differ with respect to sources of reminders received for the payment of premium.

MODE OF PAYMENT OF PREMIUM

Premium for policies may by paid in the form of cash, bank draft, cheque, salary deduction etc. The method of payment of premium followed by the sample policyholders are shown in table 5.11 for analysis.

152

TABLE - 5.11 MODE OF PAYMENT OF PREMIUM

Mode of Payment of Urban Semi Urban Total Premium 69 40 109 Cash (37.29) (24.24) (31.14) 28 25 53 Bank Draft (15.14) (15.15) (15.14) 24 18 42 Cheque (12.97) (10.91) (12.00) 32 48 80 Salary Deduction (17.30) (29.09) (22.86) 32 34 66 Others (17.30) (20.61) (18.86) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.11 shows the data relating to the mode of payment of premium opted by the sample policyholders. Analysis reveals that among the urban policyholders, 37.29 per cent of them have paid premium in the form of cash;

15.14 per cent of them have paid premium in the form of bank draft; 12.97 per cent of them have paid premium in the form of cheque; 17.30 per cent of them have paid premium through salary deduction and 17.30 per cent of them have paid premium through other modes.

Among the semi urban policyholders, 24.24 per cent of them have paid premium in the form of cash; 15.15 per cent of them have paid premium in the form of bank draft; 10.91 per cent of them have paid premium in the form of

153 cheque; 29.09 per cent of them have paid premium through salary deduction and 20.61 per cent of them have paid premium through other modes.

In general, 31.14 per cent of policyholders have paid premium in the form of cash; 15.14 per cent of them have paid premium in the form of bank draft; 12.00 per cent of them have paid premium in the form of cheque; 22.86 per cent of them have paid premium through salary deduction and 18.86 per cent of them have paid premium through other modes.

It is inferred that majority of sample policyholders have paid premium in the form of cash.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to mode of payment of premium opted.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 4 9.49 10.905 Rejected

Since the calculated value is greater than the table value, the null hypothesis is rejected. Hence, the urban and semi urban sample policyholders differ with respect to mode of payment of premium opted.

VALUE OF SUM ASSURED

The policy can be taken for any amount. Therefore the sample respondents are asked to state the policy amount they have taken in relation to life insurance. The details are shown in Table 5.12 for analysis.

154

TABLE - 5.12 VALUE OF SUM ASSURED Policy Amount (Rs.) Urban Semi Urban Total 67 43 110 Less than 1 Lakh (36.22) (26.06) (31.43) 56 72 128 1-2 Lakhs (30.27) (43.64) (36.57) 39 40 79 2-3 Lakhs (21.08) (24.24) (22.57) 23 10 33 3 Lakhs & Above (12.43) (6.06) (9.43) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.12 shows the data relating to value of sum assured by the sample policyholders. Analysis reveals that among the urban policyholders,

36.22 per cent of them have policy for less than Rs.1 lakh; 30.27 per cent of them have policy between Rs.1 lakh and Rs.2 lakhs; 21.08 per cent of them have policy between Rs.2 lakhs and Rs.3 lakhs and 12.43 per cent of them have policy Rs.3 lakhs and above.

Among the semi urban policyholders, 26.06 per cent of them have policy for less than Rs.1 lakh; 43.64 per cent of them have policy between Rs.1 lakh and Rs.2 lakhs; 24.24 per cent of them have policy between Rs.2 lakhs and Rs.3 lakhs and 6.06 per cent of them have policy Rs.3 lakhs and above.

In general, 31.43 per cent of them have policy for less than Rs.1 lakh;

36.57 per cent of them have policy between Rs.1 lakh and Rs.2 lakhs; 22.53 per cent of them have policy between Rs.2 lakhs and Rs.3 lakhs and 9.43 per cent of them have policy Rs.3 lakhs and above.

155

It is inferred that majority of the sample policyholders have policy between Rs.1 lakh and Rs.2 lakhs.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to value of sum assured.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 3 7.81 11.174 Rejected

Since the calculated value is greater than the table value, the null hypothesis is rejected. Hence, the urban and semi urban sample policyholders differ with respect to value of sum assured.

PREMIUM PAID PER ANNUM

Premium is the price paid for insurance. Therefore the sample respondents are asked to state the amount of premium paid for the policy taken by them in relation to life insurance. The details are shown in Table 5.13 for analysis.

TABLE - 5.13 PREMIUM PAID PER ANNUM Premium Paid Per Annum Urban Semi Urban Total 28 20 48 Less than Rs.2,000 (15.14) (12.12) (13.72) 63 55 118 Rs.2,000 - Rs.4,000 (34.05) (33.33) (33.71) 20 31 51 Rs.4,000 - Rs.6,000 (10.81) (18.79) (14.57) 50 43 93 Rs.6,000 - Rs.8,000 (27.03) (26.06) (26.57) 24 16 40 Rs.8,000 & Above (12.97) (9.70) (11.43) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

156

Table 5.13 shows the data relating to amount of premium paid per annum by the sample policyholders. Analysis reveals that among the urban policyholders, 15.14 per cent of them have paid less than Rs.2,000 per annum;

34.05 per cent of them have paid between Rs.2,000 and Rs.4,000; 10.81 per cent of them have paid between Rs.4,000 and Rs.6,000; 27.03 per cent of them have paid between Rs.6,000 and Rs.8,000 and 12.97 per cent of them have paid more than Rs.8,000.

Among the semi urban policyholders, 12.12 per cent of them have paid less than Rs.2,000 per annum; 33.33 per cent of them have paid between

Rs.2,000 and Rs.4,000; 18.79 per cent of them have paid between Rs.4,000 and

Rs.6,000; 26.06 per cent of them have paid between Rs.6,000 and Rs.8,000 and

9.70 per cent of them have paid more than Rs.8,000.

In general, 13.72 per cent of policyholders have paid less than Rs.2000 per annum; 33.71 per cent of them have paid between Rs.2,000 and Rs.4,000;

14.57 per cent of them have paid between Rs.4,000 and Rs.6,000; 26.57 per cent of them have paid between Rs.6,000 and Rs.8,000 and 11.43 per cent of them have paid more than Rs.8,000.

It is inferred that majority of the sample policyholders have paid between Rs.2,000 and Rs.4,000 per annum as premium.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to premium paid per annum.

157

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 4 9.49 5.431 Accepted Since the calculated value is lesser than the table value, the null hypothesis is accepted. Hence, the urban and semi urban sample policyholders do not differ with respect to premium paid per annum.

PERCENTAGE OF BONUS ADDED

The policyholders are asked to state the percentage of bonus amount added with their policy. The details are shown in table 5.14 for analysis.

TABLE - 5.14 PERCENTAGE OF BONUS ADDED Percentage Urban Semi Urban Total 71 32 103 Less than 4 (38.38) (19.39) (29.43) 25 63 88 4-5 (13.51) (38.18) (25.14) 43 51 94 5-6 (23.24) (30.91) (26.86) 46 19 65 6 & Above (24.86) (11.52) (18.57) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.14 shows the data relating to percentage of bonus added to the policy of sample policyholders. Analysis reveals that among urban policyholders,

38.38 per cent of them have said that less than 4 per cent of bonus added is to their policy; 13.5 per cent of them said that between 4 per cent and 5 per cent of bonus is added to their policy; 23.24 per cent of them said that between 5 per cent and 6 per cent of bonus is added to their policy and 24.86 per cent of them said that more than 6 per cent of bonus is added to their policy.

158

Among semi urban policyholders, 19.39 per cent of them have said that less than 4 per cent of bonus is added to their policy; 38.18 per cent of them said that between 4 per cent and 5 per cent of bonus is added to their policy;

30.91 per cent of them said that between 5 per cent and 6 per cent of bonus is added to their policy and 11.52 per cent of them said that more than 6 per cent of bonus is added to their policy.

In general, 29.43 per cent of policyholders have said that less than 4 per cent of bonus is added to their policy; 25.14 per cent of them said that between

4 per cent and 5 per cent of bonus is added to their policy; 26.86 per cent of them said that between 5 per cent and 6 per cent of bonus is added to their policy and 18.57 per cent of them said that more than 6 per cent of bonus is added to their policy.

It is inferred that majority of the sample policyholders have said that less than 4 per cent of bonus is added to their policy.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to percentage of bonus is added to their policy.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 3 7.81 43.554 Rejected

Since the calculated value is greater than the table value, the null hypothesis is rejected. Hence, the urban and semi urban sample policyholders differ with respect to percentage of bonus added to their policy.

159

ASSURANCE GIVEN BY AGENTS FOR ADDITIONAL SERVICES

Agents are giving assurance for various additional services to their customers. The additional services are medi-claim facilities, advance deposits, loan facility, disability benefits, accident benefit, salary saving scheme, pensioner payment, minor policies, minor girls’ policies, tax exemption benefits etc.

Therefore the policyholders are asked to state the assurance given by agents for additional services. The data are collected and shown in Table 5.15 for analysis.

TABLE - 5.15 ASSURANCE GIVEN BY AGENTS FOR ADDITIONAL SERVICES Additional Services Urban Semi Urban Total 24 20 44 Medi-claim Facilities (12.97) (12.12) (12.57) 15 13 28 Advance Deposits (8.11) (7.88) (8.00) 10 35 45 Loans (5.41) (21.22) (12.86) 26 18 44 Disability Benefits (14.05) (10.91) (12.57) 18 10 28 Accident Benefit (9.73) (6.06) (8.00) 12 10 22 Salary Saving Scheme (6.48) (6.06) (6.29) 19 12 31 Pensioner Payment (10.27) (7.27) (8.86) 17 15 32 Minor Policies (9.19) (9.09) (9.14) 14 12 26 Minor Girls’ Policies (7.57) (7.27) (7.42) 30 20 50 Tax Exemption Benefits (16.22) (12.12) (14.29) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

160

Table 5.15 shows the data relating to assurance given by agents for additional services to the sample policyholders. Analysis reveals that among urban policyholders, 12.97 per cent of them have received assurance for medi- claim facilities; 8.11 per cent of them have received assurance for advance deposits from agents; 5.41 per cent of them have received assurance for loans from agents; 14.05 per cent of them have received assurance for disability benefits from agents; 9.73 per cent of them have received assurance for accident benefits from agents; 6.48 per cent of them have received assurance for salary saving scheme from agents; 10.27 per cent of them have received assurance for pensioner payment from agents; 9.19 per cent of them have received assurance for minor policies from agents; 7.57 per cent of them have received assurance for minor girl’s policy from agents and 16.22 per cent of them have received assurance for tax exemption benefits from agents.

Among semi urban policyholders, 12.12 per cent of them have received assurance for medi-claim facilities; 7.88 per cent of them have received assurance for advance deposits from agents; 21.22 per cent of them have received assurance for loans from agents; 10.91 per cent of them have received assurance for disability benefits from agents; 6.06 per cent of them have received assurance for accident benefits from agents; 6.06 per cent of them have received assurance for salary saving scheme from agents; 7.27 per cent of them have received assurance for pensioner payment from agents; 9.09 per cent of them have received assurance for minor policies from agents; 7.27 per cent

161 of them have received assurance for minor girl’s policy from agents and 12.12 per cent of them have received assurance for tax exemption benefits from agents.

In general, 12.57 per cent of policyholders have received assurance for medi-claim facilities; 8.00 per cent of them have received assurance for advance deposits from agents; 12.86 per cent of them have received assurance for loans from agents; 12.57 per cent of them have received assurance for disability benefits from agents; 8.00 per cent of them have received assurance for accident benefits from agents; 6.29 per cent of them have received assurance for salary saving scheme from agents; 8.86 per cent of them have received assurance for pensioner payment from agents; 9.14 per cent of them have received assurance for minor policies from agents; 7.42 per cent of them have received assurance for minor girl’s policy from agents and 14.29 per cent of them have received assurance for tax exemption benefits from agents.

It is inferred that majority of the sample policyholders have received assurance for loans from the agents.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to assurance given by agents for additional services.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi-Square 5% 9 16.9 24.929 Rejected

162

Since the calculated value is greater than the table value, the null hypothesis is rejected. Hence, the urban and semi urban sample policyholders differ with respect to assurance given by agents for additional services.

PROBLEMS FACED AT THE TIME OF GETTING LOAN PLEDGING POLICY

Loan against policy is an additional service provided by the insurer.

Hence, the sample respondents are asked to express their problems faced at the time of availing loan and pledging the policy. The details are shown in

Table 5.16 for analysis.

TABLE - 5.16 PROBLEMS FACED AT THE TIME OF GETTING LOAN PLEDGING POLICY Problems Urban Semi urban Total 24 12 36 Refusing to give Application (12.97) (7.27) (10.29) 20 38 58 Asking you to come on Another day (10.81) (23.04) (16.57) Fixing lesser time in the forenoon 19 20 39 session for Application (10.27) (12.12) (11.14) 61 28 89 Quantity of Loan Sanctioning (32.97) (16.97) (25.43) 14 12 26 Insisting for Identification (7.57) (7.27) (7.43) 30 30 60 Insisting for Surety (16.22) (18.18) (17.14) 17 25 42 Other Problems (9.19) (15.15) (12.00) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

163

Table 5.16 shows the data relating to the problems faced by the sample policyholders at the time of availing loan on pledging the policy. Analysis reveals that among urban policyholders, 12.97 per cent of them have faced the problems of ‘refusing to give application’; 10.81 per cent of them have faced the problems of ‘asking you to come on another day’;10.27 per cent of them have faced the problems of ‘fixing lesser time in the forenoon session for application’; 32.97 per cent of them have faced the problems of ‘quantity of loan sanctioning’; 7.57 per cent of them have faced the problems of ‘insisting for identification’; 16.22 per cent of them have faced the problems of ‘insisting for surety’ and 9.19 per cent of them have faced other problems.

Among semi urban policyholders, 7.27 per cent of them have faced the problems of ‘refusing to give application’; 23.04 per cent of them have faced the problems of ‘asking you to come on another day’; 12.12 per cent of them have faced the problems of ‘fixing lesser time in the forenoon session for application’; 16.97 per cent of them have faced the problems of ‘quantity of loan sanctioning’; 7.27 per cent of them have faced the problems of ‘insisting for identification’; 18.18 per cent of them have faced the problems of ‘insisting for surety’ and 15.15 per cent of them have faced other problems.

In general, 10.29 per cent of policyholders have faced the problems of

‘refusing to give application’; 16.57 per cent of them have faced the problems of ‘asking you to come on another day’; 11.14 per cent of them have faced the problems of ‘fixing lesser time in the forenoon session for application’; 25.43

164 per cent of them have faced the problems of ‘quantity of loan sanctioning’;

7.43 per cent of them have faced the problems of ‘insisting for identification’;

17.14 per cent of them have faced the problems of ‘insisting for surety’ and

12.00 per cent of them have faced other problems.

It is inferred that majority of the sample policyholders have received lesser quantity of amount of loan than demanded by them.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to problems faced at the time of getting loan pledging policy.

Level of Degree of Table Calculated Test Result Significance Freedom Value Value Chi- 5% 6 12.6 22.278 Accepted Square

Since the calculated value is lesser than the table, the null hypothesis is accepted. Hence, the urban and semi urban sample policyholders do not differ with respect to problems faced at the time of getting loan pledging policy.

OPINION ABOUT ROLE OF SALES MANAGERS

The sales managers of private sector insurance companies may be in direct contact with the customers and prospects and serve as an official liaison between the insurance company and the public. They are ‘first persons’ to face any feelings of policyholders. The role of sales officers is unavoidable in the level of satisfaction of policyholders. The data collected in this regard are shown in Table 5.17 and 5.18.

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TABLE - 5.17 OPINION ABOUT ROLE OF SALES MANAGERS – URBAN RESPONDENTS

Likert’s Opinion SA A NO DA SDA Score

Sales Managers clarify the Policy details 31 8 12 64 70 -134

Sales Managers are willing to Help 12 40 17 76 40 -92

Sales Managers are always Cordial 13 30 8 89 45 -123

Sales Managers are Sympathetic 18 14 38 59 56 -121

Sales Managers are Punctual 13 26 18 88 40 -116

Source: Primary data Note: SA - Strongly Agree; A - Agree; NO - No Opinion; DA - Disagree; SDA - Strongly Disagree

Table 5.17 shows the data relating to the opinions expressed by the sample urban policyholders in relation to the role of sales managers. Their opinions are given weights and the points scored are indicated in this table.

Analysis reveals that the sample urban policyholders feel that the sales managers do not clarify doubts about policies and they feel that sales managers are not willing to help. Further they feel that the sales managers are not sympathetic and punctual. Moreover they do not feel that they have cordial relationship with insurance sales managers.

166

TABLE - 5.18 OPINION ABOUT ROLE OF SALES MANAGERS – SEMI URBAN RESPONDENTS

Likert’s Opinion SA A NO DA SDA Score

Sales Managers clarify the Policy Details 42 8 30 45 40 -33

Sales Managers are willing to Help 31 22 24 37 51 -55

Sales Managers are always Cordial 13 19 56 60 17 -49

Sales Managers are Sympathetic 18 55 24 18 50 -27

Sales Managers are Punctual 42 17 23 63 20 -2

Source: Primary data Note: SA - Strongly agree; A - Agree; NO - No opinion; DA - Disagree; SDA - Strongly Disagree

Table 5.18 shows the data relating to the opinions expressed by the sample semi urban policyholders in relation to the role of sales managers. Their opinions are given weights and the points scored are indicated in this table.

Analysis reveals that the sample semi urban policyholders feel that the sales managers do not clarify doubts about policies and they feel that sales managers are not willing to help. Further they feel that the sales managers are not sympathetic and punctual. Moreover they do not feel that they have cordial relationship with insurance sales managers.

OPINION ABOUT ROLE OF AGENTS

Success of a business lies with its marketing force. Agents are important marketing personnel for the life insurance services. Most of the policyholders may not have direct access to private sector insurance companies. Therefore the

167 role of agents as per the perceptions of the policyholders in the promotion of life insurance policies in Tiruchirappalli district is assessed and summarised in table 5.19 and 5.20.

TABLE - 5.19 OPINION ABOUT ROLE OF AGENTS - URBAN RESPONDENTS

Likert’s Opinion SA A NO DA SDA Score Agents attend policyholders Needs 62 26 41 37 19 75 Agents sell policies in good Faith 14 17 52 24 78 -135 Agents impart Knowledge 23 42 32 17 68 -65 Agents are always Frank 45 18 33 36 53 -34 Agents want to have more Policies only 51 59 16 28 31 71 Agents are Cordial 53 11 89 21 11 74 Source: Primary data Note: SA - Strongly Agree; A - Agree; NO - No Opinion; DA - Disagree; SDA - Strongly Disagree

Table 5.19 shows the data relating to the opinions expressed by the sample urban policyholders in relation to the role of agents. Their opinions are given weights and the points scored are indicated in this table.

Analysis reveals that the sample urban policyholders are not satisfied with the acts done in good faith by agents and about frankness. However, they are satisfied with the activities of the agents in relation to cordiality, attending to the needs of policyholders and their interest in selling more policies.

168

TABLE - 5.20 OPINION ABOUT ROLE OF AGENTS-SEMI URBAN RESPONDENTS

Likert’s Opinion SA A NO DA SDA Score Agents attend policyholders Needs 56 36 30 16 27 76 Agents sell policies in good Faith 13 42 37 64 35 -66 Agents impart Knowledge 32 16 19 72 26 -44 Agents are always Frank 17 24 41 57 26 -51 Agents want to have more Policies only 46 31 35 34 19 51 Agents are Cordial 57 15 16 49 28 24 Source: Primary data Note: SA - Strongly Agree; A - Agree; NO - No Opinion; DA - Disagree; SDA - Strongly Disagree

Table 5.20 shows the data relating to the opinions expressed by the sample semi urban policyholders in relation to the role of agents. Their opinions are given weights and the points scored are indicated in this table.

Analysis reveals that the sample semi urban policyholders are not satisfied with the acts done in good faith by agents and about frankness.

However, they are satisfied with the activities of the agents in relation to cordiality, attending the needs of policyholders and their interest in selling more policies.

OPINION ABOUT PREMIUM CHARGED

The sample policy holders are asked to state their opinion about premium charged by private sector life insurance companies. The data relating to this are collected and shown in Table 5.21 for analysis.

169

TABLE - 5.21 OPINION ABOUT PREMIUM CHARGED Opinion Urban Semi Urban Total 30 28 58 Highly Satisfied (16.22) (16.97) (16.57) 34 33 67 Satisfied (18.38) (20.00) (19.14) 15 24 39 No Opinion (8.11) (14.55) (11.14) 26 17 43 Dissatisfied (14.05) (10.30) (12.29) 80 63 143 Highly Dissatisfied (43.24) (38.18) (40.86) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.21 shows the data relating to the opinion expressed by the sample policyholders towards premium charged. Analysis reveals that among urban policyholders, 16.22 per cent of them are highly satisfied; 18.38 per cent of them are satisfied; 8.11 per cent of them are not opined; 14.05 per cent of them are dissatisfied and 43.24 per cent of them are highly dissatisfied.

Among semi urban policyholders, 16.97 per cent of them are highly satisfied; 20.00 per cent of them are satisfied; 14.55 per cent of them are not opined; 10.30 per cent of them are dissatisfied and 38.18 per cent of them are highly dissatisfied.

170

In general, 16.57 per cent of policyholders are highly satisfied; 19.14 per cent of them are satisfied; 11.14 per cent of them are not opined; 12.29 per cent of them are dissatisfied and 40.86 per cent of them are highly dissatisfied.

It is inferred that majority of the sample policyholders are highly dissatisfied with the premium charged.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to the opinion about premium charged.

Level of Critical Test D Value Result Significance Value Kolmogorov 5% 0.21 0.073 Rejected Smirnov Test

Since the D-value is greater than the critical value, the null hypothesis is rejected. Hence, the urban and semi urban sample policyholders differ with respect to the opinion about premium charged.

OPINION ABOUT BONUS AMOUNT ADDED

Bonus is an additional sum which gets accrued to the policy on a yearly basis. The bonus amount is paid out by the insurance company to the policyholders upon maturity of the policy or in case of unfortunate death. The bonus added every year is the important influencing factor for investing in insurance. So, the opinions about bonus amount added by sample policyholders are shown in Table 5.22 for analysis.

171

TABLE - 5.22 OPINION ABOUT BONUS AMOUNT ADDED Opinion Urban Semi urban Total 65 48 113 Highly Satisfied (35.14) (29.09) (32.29) 32 16 48 Satisfied (17.29) (9.70) (13.71) 16 8 24 No Opinion (8.65) (4.85) (6.86) 16 32 48 Dissatisfied (8.65) (19.39) (13.71) 56 61 117 Highly Dissatisfied (30.27) (36.97) (33.43) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.22 shows the data relating to the opinion expressed by the sample policyholders towards bonus amount added. Analysis reveals that among urban policyholders, 35.14 per cent of them are highly satisfied; 17.29 per cent of them are satisfied; 8.65 per cent of them are not opined; 8.65 per cent of them are dissatisfied and 30.27 per cent of them are highly dissatisfied.

Among semi urban policyholders, 29.09 per cent of them are highly satisfied;

9.70 per cent of them are satisfied; 4.85 per cent of them are not opined; 19.39 per cent of them are dissatisfied and 36.97 per cent of them are highly dissatisfied.

In general, 32.29 per cent of policyholders are highly satisfied; 13.71 per cent of them are satisfied; 6.86 per cent of them are not opined; 13.71 per cent of them are dissatisfied and 33.43 per cent of them are highly dissatisfied.

It is inferred that majority of the sample policyholders are highly dissatisfied with the bonus amount added to their policy.

172

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with respect to the opinion about bonus amount added.

Level of Critical Test D Value Result Significance Value Kolmogorov 5% 0.13 0.073 Rejected Smirnov Test Since the D-Value is greater than the critical value, the null hypothesis is rejected. Hence, the urban and semi urban sample policyholders differ with respect to the opinion about bonus amount added to their policy.

OPINION ABOUT TAX BENEFIT IN THE INITIAL STAGE

In India, tax benefit is given on life insurance policy under the Income

Tax Act, 1961. Therefore the sample policyholders are asked to state their opinion about tax benefit. They are collected and shown in Table 5.23.

TABLE - 5.23 OPINION ABOUT TAX BENEFIT IN THE INITIAL STAGE Opinion Urban Semi Urban Total 14 3 17 Highly Satisfied (7.57) (1.82) (4.86) 45 36 81 Satisfied (24.33) (21.82) (23.14) 9 18 27 No Opinion (4.86) (10.91) (7.71) 90 36 126 Dissatisfied (48.65) (21.82) (36.00) 27 72 99 Highly Dissatisfied (14.59) (43.63) (28.29) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

173

Table 5.23 shows the data relating to the opinion expressed by the sample policyholders towards tax benefit in the initial stage. Analysis reveals that among urban policyholders, 7.57 per cent of them are highly satisfied;

24.33 per cent of them are satisfied; 4.86 per cent of them are not opined; 48.65 per cent of them are dissatisfied and 14.59 per cent of them are highly dissatisfied.

Among semi urban policyholders, 1.82 per cent of them are highly satisfied; 21.82 per cent of them are satisfied; 10.91 per cent of them are not opined; 21.82 per cent of them are dissatisfied and 43.63 per cent of them are highly dissatisfied.

In general, 4.86 per cent of policyholders are highly satisfied; 23.14 per cent of them are satisfied; 7.71 per cent of them are not opined; 36.00 per cent of them are dissatisfied and 28.29 per cent of them are highly dissatisfied.

It is inferred that majority of the sample policyholders are dissatisfied with the tax benefit in the initial stage.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to the opinion about tax benefit in the initial stage.

Level of Critical Test D Value Result Significance Value Kolmogorov 5% 0.24 0.073 Rejected Smirnov Test Since the D-value is greater than the critical value, the null hypothesis is rejected. Hence, the urban and semi urban sample policyholders differ with respect to the opinion about tax benefit in the initial stage.

174

OPINION ABOUT HIDDEN CHARGES WHILE GETTING LOANS

Hidden charges includes premium collection charge, fund management charges, surrender charges, policy administration charges, mortality charges, fund switching charges, partial withdrawal charges, revival charges and miscellaneous charges. Therefore the sample policyholders are asked to state their opinion about hidden charges while getting loans from the private sector life insurance companies. They are collected and shown in Table 5.24.

TABLE - 5.24 OPINION ABOUT HIDDEN CHARGES WHILE GETTING LOANS

Opinion Urban Semi Urban Total 35 29 64 Highly satisfied (18.92) (17.58) (18.29) 49 13 62 Satisfied (26.49) (7.88) (17.71) 12 17 29 No opinion (6.48) (10.30) (8.28) 32 69 101 Dissatisfied (17.30) (41.82) (28.86) 57 37 94 Highly dissatisfied (30.81) (22.42) (26.86) 185 165 350 Total (100.00) (100.00) (100.00) Source: Primary data Note: Figures in parentheses represent percentage to total

Table 5.24 shows the data relating to the opinion expressed by the sample policyholders towards hidden charges while getting loans. Analysis reveals that among urban policyholders, 18.92 per cent of them are highly

175 satisfied; 26.49 per cent of them are satisfied; 6.48 per cent of them are not opined; 17.30 per cent of them are dissatisfied and 30.81 per cent of them are highly dissatisfied.

Among semi urban policyholders, 7.58 per cent of them are highly satisfied; 7.88 per cent of them are satisfied; 10.30 per cent of them are not opined; 41.82 per cent of them are dissatisfied and 22.42 per cent of them are highly dissatisfied.

In general, 18.29 per cent of policyholders are highly satisfied; 17.71 per cent of them are satisfied; 8.28 per cent of them are not opined; 28.86 per cent of them are dissatisfied and 26.86 per cent of them are highly dissatisfied.

It is inferred that majority of the sample policyholders are dissatisfied with the hidden charges while getting loans.

A null hypothesis is framed and tested in this study.

Ho: The urban and semi urban sample policyholders do not differ with

respect to hidden charges while getting loan.

Level of Critical Test D Value Result Significance Value Kolmogorov 5% 0.16 0.073 Rejected Smirnov Test

Since the D-value is greater than the critical value, the null hypothesis is rejected. Hence, the urban and semi urban sample policyholders differ with respect to the opinion about hidden charges while getting loans.

176

In this chapter, the perception of policyholders in respect of bonus amount added, premium charged, tax benefits, hidden charges while opting for loans, etc are analysed. The following chapter deals with analysis of service quality of private sector insurance companies from agents’ and policyholders’ angle.

Chapter - VI

Perception on Service Quality of Private Sector Insurance Companies 177

CHAPTER - VI PERCEPTION ON SERVICE QUALITY OF PRIVATE SECTOR INSURANCE COMPANIES

Service quality of private sector insurance companies in the study area is analysed from sales managers and agents’ point of view and policyholders’ point of view in this chapter.

FROM SALES MANAGERS AND AGENTS POINT OF VIEW

The services rendered by the private sector insurance companies to the policyholders are improving day by day. However the services are to be analysed from the point of view of the “insiders” or the actual providers of service. The opinions of the sample sales managers and agents with reference to the quality of services in the company are collected. The data are analysed for the purpose of understanding the real services of the company from the sales managers’ and agents’ angle.

A scale of 39 statements were developed on a seven point Likert’s Scale ranging from ‘very strongly agree’ (7) to ‘very strongly disagree’ (1) to tap respondent’s perception towards private sector insurance companies. The results obtained are shown in table 6.1.

178

TABLE - 6.1 SCORES AND RANKS OBTAINED FOR SERVICE QUALITY STATEMENTS - SALES MANAGERS AND AGENTS

Items VSA SA A N D SD VSD Total Scores Rank Sl.No. Sl.No.

S1 Policies/Plans of private sector life insurance companies are 15 23 49 52 17 35 33 224 850 21 superior to or more attractive than those of LIC S2 Single premium policies are 62 37 35 21 15 26 28 224 1040 5 appropriate for avoiding lapse S3 Customers prefer to buy new policies with excellent features 40 60 34 16 11 30 33 224 1000 11 and let their existing policies lapse S4 Amount of premium charged in 35 12 37 19 29 42 50 224 799 27 relation to the sum assured is high S5 Rate of return on insurance policies is lower than other 43 17 33 24 19 17 71 224 826 24 saving instruments S6 Private sector insurance company provides 67 25 33 34 19 18 28 224 1041 4 information/details about innovations on a regular basis S7 Future of Private sector insurance company lies in better 72 10 17 30 24 17 54 224 875 19 services and competitive policies S8 First year commission on policies is reasonable and paid 45 6 3 50 71 8 41 224 536 39 on regular basis S9 Renewal commission on policies 43 6 90 20 19 9 37 224 979 13 is not reasonable S10 Performance–Oriented incentives 21 33 43 15 31 17 64 224 811 26 are provided S11 Managers are well trained and have proper knowledge of policies/schemes to guide the 47 6 27 13 34 24 73 224 775 29 sales managers and agents’ selling activities properly S12 Managers provide enough support to solve agents and sales 61 52 16 19 12 29 35 224 1024 6 managers problems S13 Behaviour of the supporting staff 71 38 17 20 17 19 42 224 1021 7 is inappropriate S14 Agents and sales managers mostly sell and promote those policies/schemes that are 50 20 37 15 12 17 73 224 858 20 beneficial to them in terms of higher commission

179

Items VSA SA A N D SD VSD Total Scores Rank Sl.No. Sl.No. S15 Sometimes agents and sales managers face rivalry from other 62 32 41 17 15 19 38 224 1020 8 agents in carrying on their business S16 Agents are discouraged to put forward their points of view on 32 17 24 19 24 20 88 224 722 35 the organisational functioning and performance S17 Private sector insurance company pays individual attentions to 43 19 30 24 16 11 81 224 812 25 agents as much as possible S18 Private sector insurance company services have improved their 66 14 37 43 12 10 42 224 1001 10 services in the insurance sector S19 Speedy documentation and processes at time of issue of the 72 13 40 12 13 5 69 224 948 15 policies and settlement of claims S20 Medical check up of the 15 60 21 6 14 16 92 224 760 31 customers is not done properly S21 Advertisement support agents’ 70 40 7 9 17 35 46 224 938 16 selling activities to a large extent S22 Media, theme layout and language are not used properly in 40 80 5 4 9 14 72 224 928 18 advertisement for attracting the attention of customers S23 Customers service through internet certainly affects the efficiency 24 20 12 21 5 9 133 224 598 38 level to a large extent besides improving the service quality S24 Computerised information system provides best and quick services 17 29 24 17 6 6 125 224 636 36 to the agents and sales managers S25 Ineffective grievance redressal 19 36 16 8 11 24 110 224 608 37 system for agents and sales managers S26 Training programmes, refresher courses and regular meetings with 27 17 18 33 32 24 73 224 730 34 managers update agents and sales managers about policy and services S27 Feedback from customers is not effectively used to improve the 53 16 23 29 16 9 78 224 842 22 service standards of Private sector insurance companies S28 Private sector insurance company emphasizes quality 35 9 72 51 4 7 46 224 935 17 rather than volume of sale S29 Quality plays a vital role in strengthening the Private sector 36 8 18 19 88 5 50 224 790 28 insurance company ability to compete in a highly competitive market S30 Operating hours and days of the 63 16 30 14 42 32 27 224 960 14 branches are convenient

180

Items VSA SA A N D SD VSD Total Scores Rank Sl.No. Sl.No.

S31 Bancassurance can be the cost effective channel in -providing better services along with the 72 23 33 12 26 5 53 224 996 12 increment in average premium income of Private sector insurance company S32 Location of branch offices is 34 28 11 18 15 50 68 224 746 33 inconvenient S33 Parking facilities at branch 41 18 16 19 16 36 78 224 749 32 offices is inconvenient S34 Drinking water and sanitary 96 16 16 27 28 32 9 224 1113 1 facilities are properly available S35 Physical layout of premises and other furnishings are not 98 12 17 18 16 35 28 224 1061 3 comfortable for agents and to interact with official staff S36 Private sector insurance company promotes ethical 32 29 10 15 33 58 47 224 770 30 conduct in everything it does S37 Private sector insurance company should impart training in special marketing strategies 88 29 15 21 22 30 19 224 1094 2 and modern sales techniques for the better growth of agents and sales managers’ performance S38 Private sector insurance company should arrange periodical refresher courses for agents and 91 15 15 5 20 50 28 224 1010 9 sales managers at branch level for the effective implementation of marketing strategies S39 Private sector insurance company should expand the modern and alternative mode of premium payment, such as electronic 69 12 7 5 41 12 78 224 835 23 clearing system, direct debit from customers’ bank account, payment through internet etc Source: Primary data Note: VSA – Very Strongly Agree; SA - Strongly Agree; A - Agree; N - No opinion; D - Disagree; SD - Strongly Disagree; VSD - Very Strongly Disagree

Table 6.1 reveals that the highest score goes to the statement ‘Drinking

water and sanitary facilities are properly available’ and the lowest score goes to

181 the statement ‘First year commission on policies is reasonable and paid on regular basis’.

About 30 per cent of the statements were worded negatively to reduce the risk of the respondents replying in affirmative during data collection. These were, however, reverse coded for the purpose of data analysis and thus, interpreted accordingly. The scores of these items were reversed by subtracting each scale position from the number of scale steps plus 1.

Data so collected were subjected to Descriptive Statistics, Item and

Reliability Analysis, Exploratory Factor Analysis using Principal Component

Method with Varimax Rotation and Weighted Average Scores.

Before applying factor analysis, item and reliability analysis was performed to retain and delete scale items for the purpose of developing reliable scale. Corrected item-to-total correlations and Cronbach’s alpha statistics were employed to conduct this type of analysis. Corrected item-to- total correlations reflect the extent to which any one item is correlated with the remaining items in a set of items under consideration. Malhotra 1 in his book stated that items with low correlated item-to-total correlations are considered for deletion. Kerlinger 2 has recommended corrected item-to-total correlations of 0.20 or above for inclusion of items in a scale. Hair et al 3 said that

Cronbach’s alpha coefficient varies from 0 to1, but satisfactory value is required to be more than 0.7 for the scale to be reliable.

1 Malhotra. N.K., Marketing research: An applied orientation (5 th edition), 2007, Pearson Education Asia, New Delhi, India, p.27. 2 Kerlinger, F.N., Foundation of Behavioral Research, 1978, McGraw-Hill, New York, p.46. 3 Hair, J.F., Black, W.C., Babin, B.J., and Anderson, R.E., Multivariate data analysis (7 th edition), 2010, Prentice Hall, Upper saddle river, New Jersey, p.67.

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TABLE - 6.2 ITEM AND RELIABILITY ANALYSIS

Cronbach Items Alpha

Sl.No. Value S1 Policies/plans of private sector life insurance companies 0.8252 are superior to or more attractive than those of LIC S2 Single premium policies are appropriate for avoiding lapse 0.7453 S3 Customers prefer to buy new policies with excellent 0.4221 □ features and let their existing policies lapse S4 Amount of premium charged in relation to the sum assured 0.3632 □ is high S5 Rate of return on insurance policies is lower than other 0.2341 □ saving instruments S6 Private sector insurance company provides information / 0.7241 details about innovations on a regular basis S7 Future of Private sector insurance company lies in better 0.7111 services and competitive policies S8 First year commission on policies is reasonable and paid on 0.7522 regular basis S9 Renewal commission on policies is not reasonable 0.2009 □ S10 Performance–oriented incentives are provided 0.8273 S11 Managers are well trained and have proper knowledge of policies/schemes to guide the sales managers and agents’ 0.8002 selling activities properly S12 Managers provide enough support to solve agents and sales 0.7575 managers problems S13 Behaviour of the supporting staff is inappropriate -0.7411* S14 Agents and sales managers mostly sell and promote those policies/schemes that are beneficial to them in terms of 0.3121 □ higher commission S15 Sometimes agents and sales managers face rivalry from 0.3002 □ other agents in carrying on their business S16 Agents are discouraged to put forward their points of view -0.7231* on the organisational functioning and performance

183

Cronbach Items Alpha

Sl.No. Value S17 Private sector insurance company pays individual attention 0.7662 to agents as much as possible S18 Private sector insurance company services have improved 0.7117 their services in the insurance sector S19 Speedy documentation and processes at time of issue of the 0.7777 policies and settlement of claims S20 Medical check-up of the customers is not done properly -0.7541* S21 Advertisement support agents’ selling activities to a large 0.2371 □ extent S22 Media, theme layout and language are not used properly in 0.3221 □ advertisement for attracting the attention of customers S23 Customers service through internet certainly affects the efficiency level to a large extent besides improving the 0.4115 □ service quality S24 Computerised information system provides best and quick 0.7667 services to the agents and sales managers S25 Ineffective grievance redressal system for agents and sales -0.8057* managers S26 Training programmes, refresher courses and regular meetings with managers update agents and sales managers about 0.7222 policy and services S27 Feedback from customers is not effectively used to improve the service standards of Private sector insurance -0.7121* companies S28 Private sector insurance company emphasizes quality 0.8115 rather than volume of sale S29 Quality plays a vital role in strengthening the Private sector insurance company ability to compete in a highly competitive 0.7995 market S30 Operating hours and days of the branches are convenient 0.7169 S31 Bancassurance can be the cost effective channel in -providing better services along with the increment in average 0.2667 □ premium income of Private sector insurance company S32 Location of branch offices is inconvenient -0.7832*

184

Cronbach Items Alpha

Sl.No. Value S33 Parking facilities at branch offices is inconvenient 0.3119 □ S34 Drinking water and sanitary facilities are properly available 0.7916 S35 Physical layout of premises and other furnishings are not -0.7550* comfortable for agents and to interact with official staff S36 Private sector insurance company promotes ethical conduct 0.7717 in everything it does S37 Private sector insurance company should impart training in special marketing strategies and modern sales techniques 0.8100 for the better growth of agents and sales managers’ performance S38 Private sector insurance company should arrange periodical refresher courses for agents and sales managers 0.7444 at branch level for the effective implementation of marketing strategies S39 Private sector insurance company should expand the modern and alternative mode of premium payment, such as 0.4244 □ electronic clearing system, direct debit from customers’ bank account, payment through internet etc

* These items were worded negatively to reduce the tendency of the respondents replying in affirmative during data collection. They were, however, reverse coded for the purpose of data analysis and thus interpreted accordingly.

□ Items for deletion.

Table 6.2 shows items and reliability analysis. It is inferred from this table that 27 items are reliable of which 20 items are positive and 7 items are negative. 12 items are deleted because the Cronbach Alpha Co-Efficient is below 0.70.

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FACTOR ANALYSIS

To bring out the factors influencing the perception of agents and sales managers towards private sector insurance companies, the final 27 item perception scale was subjected to Exploratory Factor Analysis using Principal Component

Method with Varimax rotation. However, the adequacy or appropriateness of data for factor analysis has been examined beforehand with the help of Kaiser-

Meyer-Oklin (KMO) Measure of Sampling Adequacy (MSA) and Bartlett’s test of Sphericity.

TABLE - 6.3 KMO AND BARLETT’S TEST Kaiser-Meyer-Oklin Measure of Sampling Adequacy 0.761 Approx.Chi.Square 3059.393 Bartlett’s test of Sphericity Df 351 Sig. 0.000

The value of KMO for overall matrix is found to be 0.761 and Bartlett’s test of Sphericity was highly significant (p < 0.001), thereby indicating that the sample taken to process the factor analysis is adequate.

TABLE - 6.4 COMMUNALITIES Items Initials Extraction VAR00001 1 0.562 VAR00002 1 0.585 VAR00006 1 0.708 VAR00007 1 0.518 VAR00008 1 0.642 VAR00010 1 0.564

186

Items Initials Extraction VAR00011 1 0.758 VAR00012 1 0.855 VAR00013 1 0.835 VAR00016 1 0.703 VAR00017 1 0.687 VAR00018 1 0.610 VAR00019 1 0.674 VAR00020 1 0.828 VAR00024 1 0.636 VAR00025 1 0.755 VAR00026 1 0.722 VAR00027 1 0.898 VAR00028 1 0.876 VAR00029 1 0.549 VAR00030 1 0.649 VAR00032 1 0.644 VAR00034 1 0.853 VAR00035 1 0.842 VAR00036 1 0.411 VAR00037 1 0.712 VAR00038 1 0.707

Communalities for all variables were observed. Communalities’ values for all variables were sufficiently above 0.50 except variable 36 which pertained to 0.411; this variable was removed from the instrument. Hence factor analysis with principal component analysis as an extraction method was employed on the remaining 26 items.

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TABLE - 6.5 ROTATED COMPONENT MATRIX Items 1 2 3 4 5 6 7 8 VAR00012 0.917 VAR00013 0.910 VAR00025 0.862 VAR00016 0.755 VAR00011 0.684 VAR00026 0.648 VAR00027 0.932 VAR00028 0.903 VAR00020 0.891 VAR00038 0.771 VAR00037 0.769 VAR00007 0.628 VAR00032 0.543 VAR00035 0.899 VAR00034 0.896 VAR00030 0.679 VAR00019 0.754 VAR00002 0.692 VAR00001 0.678 VAR00010 0.595 VAR00024 0.755 VAR00029 0.627 VAR00018 0.611 VAR00017 0.824 VAR00006 0.785 VAR00008 -0.597 Extraction method: Principal component method Rotation method: Varimax with Kaiser normalization.

A rotation converged in 7 items.

188

Variable 11 and variable 26 are removed from the instruments.

TABLE - 6.6 COMMUNALITIES Items Initial Extraction VAR00001 1 0.556 VAR00002 1 0.576 VAR00006 1 0.617 VAR00007 1 0.529 VAR00008 1 0.440 VAR00010 1 0.533 VAR00012 1 0.866 VAR00013 1 0.847 VAR00016 1 0.727 VAR00017 1 0.662 VAR00018 1 0.593 VAR00019 1 0.664 VAR00020 1 0.826 VAR00024 1 0.652 VAR00025 1 0.819 VAR00027 1 0.892 VAR00028 1 0.861 VAR00029 1 0.545 VAR00030 1 0.583 VAR00032 1 0.530 VAR00034 1 0.861 VAR00035 1 0.867 VAR00037 1 0.708 VAR00038 1 0.707

Item 8 is removed from the instrument as item 8 has value of less than 0.5.

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TABLE - 6.7 COMMUNALITIES

Items Initial Extraction VAR00001 1 0.558 VAR00002 1 0.575 VAR00006 1 0.679 VAR00007 1 0.585 VAR00010 1 0.545 VAR00012 1 0.866 VAR00013 1 0.847 VAR00016 1 0.729 VAR00017 1 0.676 VAR00018 1 0.607 VAR00019 1 0.666 VAR00020 1 0.833 VAR00024 1 0.648 VAR00025 1 0.819 VAR00027 1 0.897 VAR00028 1 0.869 VAR00029 1 0.539 VAR00030 1 0.587 VAR00032 1 0.572 VAR00034 1 0.860 VAR00035 1 0.864 VAR00037 1 0.699 VAR00038 1 0.692

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TABLE - 6.8 TOTAL VARIANCE EXPLAINED

Extraction Sums of Squared Rotation Sums of Squared Initial Eigen Values Loadings Loadings Component % of Cumulative % of Cumulative % of Cumulative Total Total Total Variance % Variance % Variance %

1 4.815 20.935 20.935 4.815 20.935 20.935 3.225 14.021 14.021

2 3.380 14.697 35.633 3.380 14.697 35.633 2.682 11.662 25.683

3 2.359 10.255 45.888 2.359 10.255 45.888 2.394 10.409 36.093

4 1.828 7.950 53.837 1.828 7.950 53.837 2.313 10.057 46.150

5 1.457 6.336 60.173 1.457 6.336 60.173 2.200 9.564 55.714

6 1.275 5.544 65.717 1.275 5.544 65.717 1.725 7.500 63.214

7 1.093 4.753 70.470 1.093 4.753 70.470 1.669 7.257 70.470

8 0.914 3.974 74.444

9 0.769 3.344 77.788

10 0.739 3.215 81.004

11 0.644 2.800 83.803

12 0.581 2.526 86.329

13 0.485 2.110 88.439

14 0.462 2.010 90.449

15 0.417 1.814 92.263

16 0.362 1.573 93.836

17 0.329 1.430 95.266

18 0.290 1.260 96.527

19 0.231 1.006 97.532

20 0.196 0.853 98.385

21 0.147 0.639 99.023

22 0.125 0.545 99.568

23 0.099 0.432 100.00

Extraction method: Principal Component Analysis

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TABLE - 6.9 ROTATED COMPONENT MATRIX

Items 1 2 3 4 5 6 7 VAR00012 0.923 VAR00013 0.913 VAR00025 0.898 VAR00016 0.774 VAR00027 0.929 VAR00028 0.898 VAR00020 0.897 VAR00037 0.758 VAR00038 0.758 VAR00007 0.661 VAR00032 0.595 VAR00035 0.916 VAR00034 0.911 VAR00003 0.648 VAR00019 0.757 VAR00002 0.682 VAR00001 0.673 VAR00010 0.593 VAR00024 0.748 VAR00018 0.639 VAR00029 0.635 VAR00017 0.794 VAR00006 0.759 Extraction Method: Principal Component Method Rotation Method: Varimax with Kaiser Normalization.

A rotation converged in 6 items.

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It is inferred from table 6.9 that “Sales managers/managers provide enough support to solve agents’ problems, behaviour of the supporting staff is inappropriate, ineffective grievance redressal system for agents, agents are discouraged to put forward their points of view on organisational functioning and performance” are grouped and named as “Staff co-ordination”.

Feedback from customers is not effectively used to improve the service standards of private sector insurance companies. Private sector insurance companies emphasies quality rather than volume of sales; medical check up of the customers is not done properly and are grouped as “Customer target”.

Private sector insurance companies should impart training in special marketing strategies and modern sales techniques for the better growth of agent’s performance; insurance companies should arrange periodical refresher courses for agents at branch level for the effective implementation of marketing strategies; future of private sector insurance companies lies in better services and competitive policies and location of the branch offices is inconvenient are grouped and named as “Competitive advantage predicates”.

Physical layout of premises and other furnishings are not comfortable for agents to interact with official staff, drinking water and sanitary facilities are properly available and operating hours and days of the branches are convenient are grouped and named as “Material hallmarks”.

Speedy documentation and processes at the time of issue of the policies and settlement of claims, single premium policies are more appropriate for

193 avoiding lapse, policies of private sector insurance companies are superior to or more attractive than LIC, performance oriented incentives are provided are grouped and named as “Promising policies and process”.

Computerised information system provides best and quick services to the agents, private sector insurance companies services are improved, quality plays a vital role in strengthening the private sector insurance companies’ abilities to complete in a highly competitive market are grouped and named as

“Service enhancement”.

Private sector insurance companies pay individual attention to the agents as much as possible and private sector insurance companies provide details about innovation on a regular basis are grouped and named as “Exclusive attention”.

TABLE - 6.10 ROTATED FACTOR ANALYTIC RESULTS OF AGENTS AND SALES MANAGERS’ PERCEPTION SCALE

Eigen % of Factors Loading Values Variance Staff co-ordination 4.815 20.935 S12 Managers provide enough support to 0.923 solve agents and sales managers problems S13 Behaviour of the supporting staff is 0.913 inappropriate S25 Ineffective grievance redressal system 0.898 for agents and sales managers S16 Agents are discouraged to put forward their points of view on the organisational 0.774 functioning and performance

194

Eigen % of Factors Loading Values Variance Customer target 3.380 14.697 S27 Feedback from customers is not effectively used to improve the service standards of 0.929 Private sector insurance companies S28 Private sector insurance company 0.898 emphasizes quality rather than volume of sale S20 Medical check up of the customers is not 0.897 done properly Competitive advantage predicates 2.359 10.255 S37 Private sector insurance company should impart training in special marketing strategies 0.758 and modern sales techniques for the better growth of agents and sales managers’ performance S38 Private sector insurance company should arrange periodical refresher courses for agents and sales managers at branch level for 0.758 the effective implementation of marketing strategies S7 Future of Private sector insurance company 0.661 lies in better services and competitive policies S32 Location of branch offices is inconvenient 0.595 Material hallmarks 1.828 7.950 S35 Physical layout of premises and other furnishings are not comfortable for agents 0.916 and to interact with official staff S34 Drinking water and sanitary facilities are 0.911 properly available S30 Operating hours and days of the branches 0.648 are convenient Promising policies and process 1.457 6.336 S19 Speedy documentation and processes at time of issue of the policies and settlement of 0.757 claims

195

Eigen % of Factors Loading Values Variance S2 Single premium policies are appropriate 0.682 for avoiding lapses S1 Policies/plans of private sector life insurance companies are superior to or more 0.673 attractive than those of LIC S10 Performance-oriented incentives are provided 0.593 Service enhancement 1.275 5.544 S24 Computerised information system provides best and quick services to the agents and 0.748 sales managers S18 Private sector insurance company services have improved their services in the 0.639 insurance sector S29 Quality plays a vital role in strengthening the Private sector insurance company ability 0.635 to compete in a highly competitive market Exclusive attention 1.093 4.753 S17 Private sector insurance company pays 0.794 individual attentions to agents as much as possible S6 Private sector insurance company provides information/details about innovations on a 0.759 regular basis Total 70.47

Table 6.10 reveals seven factors. The seven factors so generated explain

70.47 per cent of total variance and have eigen values between 1.093 and

4.815. From this table, it is inferred that agents and sales managers perceive that staff co-ordination as the most important feature of service. Customer target is the second important feature, competitive advantage predicates, material hallmarks, promising policy and process and service enhancement are the third, fourth, fifth and sixth important features respectively, Exclusive

196 attention is the final feature. Therefore, staff should be more efficient to provide enough support in agents and developing sales managers selling activities.

TABLE - 6.11 INTER-FACTOR CORRELATIONS, FACTOR-WISE MEAN, STANDARD DEVIATION AND CRONBACH’S ALPHA OF EXTRACTED FACTORS (SUB SCALES) Factors F1 F2 F3 F4 F5 F6 F7 F1 Staff 0.035 -0.108 0.093 0.029 0.013 0.170 1 co-ordination (0.602) (0.107) (0.164) (0.668) (0.841) (0.011) F2 Customer 0.249 0.220 0.279 0.155 0.083 1 target (0.000) (0.001) (0.000) (0.020) (0.217) F3 Competitive 0.151 0.451 0.440 0.154 advantage 1 (0.024) (0.000) (0.000) (0.021) predicts F4 Material 0.170 0.064 0.059 1 hallmarks (0.011) (0.341) (0.379) F5 Promising 0.262 0.269 policies and 1 (0.000) (0.000) process F6 Service 0.120 1 enhancement (0.073) F7 Exclusive 1 attention Number of 4 3 4 3 4 3 2 statements Mean (scale values) 4.38 4.77 6.08 3.94 5.80 5.97 4.91 Standard deviation 1.97 1.72 1.13 1.96 1.35 1.15 1.71 Alpha value 0.9110 0.9201 0.7012 0.8148 0.6848 0.5897 0.6435 Composite Cronbach’s Alpha = 0.8025

The inter factor correlation, factor-wise mean, standard deviation and cronbach’s alpha of extracted factors are shown in table 6.10. The factor-wise alpha ranges from 0.5897 to 0.9201 thereby indicating high reliability of the sub-scale measuring the sales managers and agents’ perception. The composite alpha for the entire scale is found to be high (0.8025). Hence it is inferred that there is a significant relationship between the factors.

197

ANOVA-ONEWAY ANALYSIS

ANOVA-One way classification was performed to test whether any significant difference existed among the various groups of respondents across

23 item perception scale. Three groups of the respondents based on educational level (five categories), working experience (three categories) and type of marketing mix followed (three categories) are considered for ANOVA-One way analysis. The following hypotheses have been formulated and tested.

Ho: There is no significant difference between the educational level of the

sales managers and agents and their perception towards service quality.

Ho: There is no significant difference between the working experience of the

sales managers and agents and their perception towards service quality.

Ho: There is no significant difference between the type of marketing mix

followed by the sales managers and agents and their perception towards

service quality.

For the purpose of analysis, weighted average scores are calculated and shown in table 6.12.

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TABLE - 6.12 PERCEPTION OF SALES MANAGERS AND AGENTS-23 ITEM SCALE-AN ANALYSIS OF WEIGHTED AVERAGE SCORES BASED ON EDUCATIONAL LEVEL, WORKING EXPERIENCE AND TYPES OF MARKETING MIX FOLLOWED

Type of marketing Educational level Working experience Weighted Statements mix followed Average Score EL1 EL2 EL3 EL4 EL5 WE1 WE2 WE3 MM1 MM2 MM3 S12 5.27 4.74 4.82 5.09 3.82 5.67 4.75 5.19 4.91 4.87 5.19 4.938182 S13 4.87 4.53 4.73 4.76 3.82 5.33 4.57 4.61 4.67 4.33 4.99 4.655455 S25 4.6 4.04 4.18 4.37 3.73 5.83 4.22 4.11 4.16 3.93 4.28 4.313636 S16 3.93 3.79 4.55 4.21 3 4.67 3.91 4.06 3.8 3.83 3.96 3.973636 S27 4.67 4.66 4.91 4.73 4.33 4.67 4.72 4.36 4.63 4.2 4.79 4.606364 S28 4.4 4.77 5.55 4.96 4.64 5.5 4.92 4.53 4.82 4.24 4.93 4.841818 S20 4.67 4.64 5.09 4.84 4.91 5.67 4.86 4.53 4.77 4.37 4.78 4.83 S37 5.73 6.21 6.64 6.23 6.39 6.5 6.26 6.11 6.07 5.59 6.07 6.163636 S38 6.13 6.21 6.36 6.23 6.33 6.5 6.27 6.08 6.09 5.63 6.16 6.180909 S07 5.93 6.09 6.27 6.42 6 6.67 6.32 5.86 6.09 5.76 6.22 6.148182 S32 5.07 5.83 5.64 5.52 5.67 5.17 5.57 5.69 5.51 4.98 5.67 5.483636 S35 4.07 3.36 4.36 3.35 3.03 4.17 3.34 3.69 3.48 3.26 3.85 3.632727 S34 3.8 3.53 5 3.69 3.21 4.33 3.63 3.75 3.64 3.22 4.07 3.806364 S30 4.4 4.75 5.36 4.68 4.97 4.67 4.69 5.11 4.68 4.43 4.93 4.788182 S19 5 5.4 5.91 5.28 5.55 6 5.3 5.69 5.28 4.74 5.18 5.393636 S02 5.93 5.68 6.55 6.06 5.91 6.5 5.97 5.94 5.79 5.35 5.76 5.949091 S01 6.33 6.47 6.73 6.58 6.36 7 6.49 6.61 6.43 5.85 6.57 6.492727 S10 5.27 5.4 5.82 5.35 5.15 5.83 5.36 5.31 5.2 4.93 5.12 5.34 S24 5.67 5.7 6 6.04 5.73 5.5 6.02 5.19 5.75 5.61 5.87 5.734545 S18 5.8 5.87 6.36 6.02 5.55 6.5 5.94 5.78 5.69 5.24 5.72 5.860909 S29 6.13 6.09 6.27 6.09 6.09 6.5 6.23 5.44 6.07 5.87 5.96 6.067273 S17 4.27 4.91 5.27 4.5 3.7 4.33 4.47 4.67 4.54 4.67 4.43 4.523636 S06 4.87 5.7 5.91 5.45 4.27 5 5.28 5.53 5.23 5.3 5.31 5.259091

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TABLE - 6.13 ANOVA-ONEWAY ANALYSIS RESULTS F-Value Degree of Significance at Groups (within Result freedom 5% level groups) Educational level 1.874 4 0.120 Accepted Working experience 1.624 2 0.205 Accepted Type of marketing 2.215 2 0.117 Accepted mix followed

Since the probability value of all the groups are higher than 0.05, null hypotheses are accepted. Hence, 1) there is no significant difference between the educational level of the sales managers and agents and their perception towards service quality. 2) There is no significant difference between the working experience of the sales managers and agents and their perception towards service quality. 3) There is no significant difference between the type of marketing mix followed by the sales managers and agents and their perception towards service quality.

FROM POLICYHOLDERS POINT OF VIEW

The services rendered by the private sector insurance companies to the policyholders are improving day by day. However, the service quality is to be analysed from the point of view of policyholders. The opinions of the sample policyholders with reference to the quality of services in the company are collected. The data are analysed for the purpose of understanding the real services of the company from the policyholders’ angle.

200

A scale of 52 statements was developed on a seven point Likert’s scale

ranging from ‘very strongly agree’ (7) to ‘very strongly disagree’ (1) to tap

policyholders’ perception towards private sector insurance companies.

TABLE - 6.14 SCORES AND RANKS OBTAINED FOR SERVICE QUALITY STATEMENTS - POLICYHOLDERS

Items VSA SA A N D SD VSD Total Scores Rank Sl. No.

S1 Policies/plans of private insurance companies superior 33 78 39 24 32 34 110 350 1264 43 to or more attractive than the LIC

S2 Flexible policies/new policies 58 78 52 34 29 48 51 350 1504 15 that meet customers’ needs

S3 Provides information/details about service innovations 39 32 30 51 98 50 50 350 1263 44 on a regular basis through post, telephone, banks, etc.

S4 Diversity and wide range of services (like variety of policies i.e., children plans, joint life plan, pension 59 36 34 37 34 54 96 350 1253 45 plans, special plan for women with different benefits options)

S5 Premium paid is too low as compared to the benefits 51 46 30 36 33 68 86 350 1248 46 derived

S6 High rate of return on insurance policies as compared to the other 85 43 51 52 37 36 46 350 1545 5 saving instruments (fixed deposit in banks, national saving certificates etc.)

S7 Adequate surrender value in case the policy is 45 35 36 51 50 42 91 350 1234 47 discontinued before maturity

S8 Reasonable penalty charged 50 35 42 37 42 38 106 350 1226 48 for late premium payment

201

Items VSA SA A N D SD VSD Total Scores Rank Sl. No.

S9 Convenient to pay periodical premium through agent 53 30 55 37 47 60 68 350 1162 49 than paying directly to the branch offices

S10 Prefer to buy policies of 37 54 34 26 30 42 127 350 1158 50 LIC rather than this

S11 Agents and employees who have the proper knowledge and competence to answer 53 27 90 69 22 25 64 350 1439 21 customers’ specific queries and requests

S12 Apprising the customers of the nature and schedule of 89 56 35 38 35 37 60 350 1525 9 services available in the organisation

S13 Giving caring and individual attention to customers by 33 41 67 70 35 53 51 350 1354 30 having the customers’ best interest at heart

S14 Willing to help customers and the readiness to respond 80 55 53 39 33 44 46 350 1544 6 to customers’ requests

S15 Agents and employees who understand the specific 61 35 51 42 37 35 89 350 1330 34 needs of their customers

S16 Agents and employees who create confidence in customers 90 28 25 48 42 35 82 350 1393 25 by proper behaviour

S17 Making customers feel safe 10 61 24 38 37 27 55 350 1483 17 and secure in their transactions 8

S18 Appropriate behaviour of 79 70 34 37 30 47 53 350 1558 4 the concerned staff

S19 Providing promised services 50 47 28 33 51 76 65 350 1274 40 as per the set schedule

S20 Performing services right 71 34 41 47 34 27 96 350 1346 31 from the first time

S21 Showing sincere interest in 43 28 50 71 28 56 74 350 1273 41 solving customers’ problems

S22 Providing prompt service 63 24 21 68 89 26 59 350 1340 32 to customers

202

Items VSA SA A N D SD VSD Total Scores Rank Sl. No.

S23 Effective customers’ grievance redressal procedures and 81 34 48 32 60 50 45 350 1464 19 processes

S24 Agents inform and guide the customers at regular intervals as regards the 63 27 23 60 34 63 80 350 1266 42 policy status, due date of premium, new policies and services

S25 Availability of top sales 90 41 51 30 44 23 71 350 1500 16 managers in case of need

S26 Ability of agents to give truthful advice on investments / 116 30 35 36 34 53 46 350 1565 3 tax benefits etc.

S27 Speedy documentation and processes from the time of issue of policies up to the 80 50 59 35 33 37 56 350 1524 10 settlement of claims (e.g. premium and default notices etc.)

S28 Timely revival of lapsed policies, change of nominations, 106 47 33 39 40 48 37 350 1598 2 addresses and mode of premium payment etc.

S29 Number of regular meetings with agents, discussion on each and every aspect of the policy, analysis of 109 33 33 23 38 68 46 350 1514 13 various tax aspects etc., in order to buy life insurance policy

S30 Convenient to pay premium 87 30 25 23 59 30 96 350 1339 33 on due date

S31 Medical check-up done 65 24 45 31 52 42 91 350 1279 39 properly

S32 Easy to get information about insurance policies through 68 38 55 33 30 35 91 350 1362 28 T.V., newspaper, Internet etc. rather than agents

S33 Attractive and informative media, theme layout, and 114 34 34 45 46 50 27 350 1617 1 language of the advertisement

203

Items VSA SA A N D SD VSD Total Scores Rank Sl. No.

S34 Prefer to buy life policy 23 29 40 81 93 62 22 350 1284 38 through banks S35 Adequate and necessary personnel/agents for good 90 31 58 30 31 23 87 350 1452 20 customer services S36 Enhancement of technological capability (e.g. computerisation, networking of operation, 58 98 23 22 27 32 90 350 1432 22 etc.) to serve customers more effectively S37 Adequate and necessary facilities for good customer 84 32 55 61 30 61 27 350 1538 8 services S38 Visually appealing materials and facilities associated 88 58 25 27 35 53 64 350 1472 18 with the service S39 Convenient operating hours 10 and days of the branches 54 26 36 37 23 68 350 1294 37 6 for the customers S40 Staff appeared neat and 63 34 77 14 63 52 47 350 1426 23 professional S41 Modern looking updated equipment, fixtures, and 33 42 52 87 49 43 44 350 1368 27 facilities S42 Convenient location of the 50 90 27 29 43 24 87 350 1405 24 branch offices S43 Providing plenty of convenient parking facility at all 35 47 42 35 24 24 143 350 1140 51 branches for their customers S44 Branch layout has been designed to give more 38 64 15 49 74 83 72 350 1381 26 space to the customers to transact business S45 Comfortable physical layout of premises, furnishings, and ambient conditions (e.g. temperature, ventilation, 37 63 70 23 31 60 66 350 1358 29 noise, odour) for the customers to interact with official staff S46 Providing visually appealing signs, symbols, advertisement, 85 48 42 33 56 43 43 350 1522 11 boards, pamphlets and other artefacts in the branch offices

204

Items VSA SA A N D SD VSD Total Scores Rank Sl. No.

S47 Provides proper drinking 45 92 25 67 40 50 31 350 1511 14 water and sanitary facilities

S48 Promotes ethical conduct 60 78 32 53 61 34 32 350 1543 7 in everything it does

S49 Wide use of modern and alternate mode of premium payment, such as electronic 54 48 82 44 55 32 35 350 1516 12 clearing system, payment through Internet etc.

S50 Sense of public responsibility among concerned staff in 61 37 48 42 34 27 101 350 1314 36 terms of being punctual, regular and sincere

S51 Provides customer feedback card system for their level 42 38 30 39 23 27 151 350 1102 52 of satisfaction with the services of the insurer

S52 Private sector insurance company emphasizes high 39 51 61 33 49 35 82 350 1315 35 quality service than the volume of sale Source: Primary data Note: VSA – Very Strongly Agree; SA - Strongly Agree; A - Agree; N - No opinion; D - Disagree; SD - Strongly Disagree; VSD - Very Strongly Disagree

Table 6.14 reveals that the highest score goes to the statement

‘Attractive and informative media, theme layout, and language of the

advertisement’ and the lowest score goes to the statement ‘Provides customer

feedback card system for their level of satisfaction with the services of the

insurer’.

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TABLE - 6.15 ITEM AND RELIABILITY ANALYSIS

Cronbach Items Alpha

Sl. No. Value S1 Policies/plans of private insurance companies superior to or 0.4321* more attractive than the LIC S2 Flexible policies/new policies that meet customers’ needs 0.7539 S3 Provides information/details about service innovations on a 0.3212* regular basis through post, telephone, banks, etc. S4 Diversity and wide range of services(like variety of policies i.e., children plans, joint life plan, pension plans, special plans 0.2175* for women with different benefits options) S5 Premium paid is too low as compared to the benefits derived 0.1735* S6 High rate of return on insurance policies as compared to the other saving instruments (fixed deposit in banks, national 0.8219 saving certificates etc.) S7 Adequate surrender value in case the policy is discontinued 0.4110* before maturity S8 Reasonable penalty charged for late premium payment 0.3291* S9 Convenient to pay periodical premium through agent than 0.2135* paying directly to the branch offices S10 Prefer to buy policies of LIC rather than this 0.1378* S11 Agents and employees who have the proper knowledge and 0.9212 competence to answer customers’ specific queries and requests S12 Apprising the customers of the nature and schedule of services 0.8714 available in the organisation S13 Giving caring and individual attention to customers by having 0.7528 the customers’ best interest at heart S14 Willing to help customers and the readiness to respond to 0.7219 customers’ requests S15 Agents and employees who understand the specific needs of 0.7620 their customers S16 Agents and employees who create confidence in customers by 0.7517 proper behaviour

206

Cronbach Items Alpha

Sl. No. Value S17 Making customers feel safe and secure in their transactions 0.8279 S18 Appropriate behaviour of the concerned staff 0.8184 S19 Providing promised services as per the set schedule 0.7276 S20 Performing services right from the first time 0.7524 S21 Showing sincere interest in solving customers’ problems 0.8000 S22 Providing prompt service to customers 0.8124 S23 Effective customers’ grievance redressal procedures and 0.8235 processes S24 Agents inform and guide the customers at regular intervals as regards the policy status, due date of premium, new policies 0.8125 and services S25 Availability of top sales managers in case of need 0.8344 S26 Ability of agents to give truthful advice on investments/tax 0.8431 benefits etc. S27 Speedy documentation and processes from the time of issue of policies up to the settlement of claims (e.g. premium and 0.8611 default notices etc) S28 Timely revival of lapsed policies, change of nominations, 0.8712 addresses and mode of premium payment etc S29 Number of regular meetings with agents, discussion on each and every aspect of the policy, analysis of various tax aspects 0.9215 etc., in order to buy life insurance policy S30 Convenient to pay premium on due date 0.7513 S31 Medical check-up done properly 0.7877 S32 Easy to get information about insurance policies through TV, 0.7624 Newspaper, Internet etc. rather than agents S33 Attractive and informative media, theme layout, and language 0.7129 of the advertisement S34 Prefer to buy life policy through banks 0.7771 S35 Adequate and necessary personnel/agents for good customer 0.7217 services

207

Cronbach Items Alpha

Sl. No. Value S36 Enhancement of technological capability (e.g. computerisation, networking of operation, etc.) to serve customers more 0.7910 effectively S37 Adequate and necessary facilities for good customer services 0.8221 S38 Visually appealing materials and facilities associated with the 0.8714 service S39 Convenient operating hours and days of the branches for the 0.7462 customers S40 Staff appeared neat and professional 0.9115 S41 Modern looking updated equipment, fixtures and facilities 0.9436 S42 Convenient location of the branch offices 0.7745 S43 Providing plenty of convenient parking facility at all branches 0.2755* for their customers S44 Branch layout has been designed to give more space to the 0.7651 customers to transact business S45 Comfortable physical layout of premises, furnishings, and ambient conditions (e.g. temperature, ventilation, noise, odour) 0.8838 for the customers to interact with official staff S46 Providing visually appealing signs, symbols, advertisement, 0.8947 boards, pamphlets and other artifacts in the branch offices S47 Provides proper drinking water and sanitary facilities 0.9054 S48 Promotes ethical conduct in everything it does 0.8063 S49 Wide use of modern and alternate mode of premium payment, such as electronic clearing system, payment through Internet 0.7212 etc. S50 Sense of public responsibility among concerned staff in terms 0.7159 of being punctual, regular and sincere S51 Provides customer feedback card system for their level of 0.4299* satisfaction with the services of the insurer S52 Private sector insurance company emphasizes high quality 0.8154 service than the volume of sale *Items for deletion

208

Table 6.15 shows items and reliability analysis. It is inferred from this table that 10 items are deleted because the Cronbach Alpha Co-efficient is below 0.70.

FACTOR ANALYSIS

To bring out the factors influencing the perception of policyholders towards private sector insurance companies, the final 42 item perception scale was subjected to Exploratory Factor Analysis using Principal Component

Method with Varimax rotation. However, the adequacy or appropriateness of data for factor analysis has been examined beforehand with the help of Kaiser-

Meyer-Oklin (KMO) Measure of Sampling Adequacy (MSA) and Bartlett’s test of Sphericity.

TABLE - 6.16 KMO AND BARLETT’S TEST

Kaiser-Meyer-Oklin Measure of Sampling Adequacy 0.918 Approx.Chi.Square 5021.275 Bartlett’s test of Sphericity Df 391 Sig. 0.000

The value of KMO for overall matrix is found to be 0.918 and Bartlett’s test of Sphericity was highly significant (p < 0.001), thereby indicating that the sample taken to process the factor analysis is adequate.

209

TABLE - 6.17 COMMUNALITIES

Items Initials Extraction VAR00002 1 0.652 VAR00006 1 0.584 VAR00011 1 0.608 VAR00012 1 0.508 VAR00013 1 0.542 VAR00014 1 0.654 VAR00015 1 0.758 VAR00016 1 0.854 VAR00017 1 0.834 VAR00018 1 0.702 VAR00019 1 0.586 VAR00020 1 0.509 VAR00021 1 0.535 VAR00022 1 0.563 VAR00023 1 0.757 VAR00024 1 0.423 VAR00025 1 0.654 VAR00026 1 0.711 VAR00027 1 0.787 VAR00028 1 0.765 VAR00029 1 0.548 VAR00030 1 0.648 VAR00031 1 0.634 VAR00032 1 0.655

210

Items Initials Extraction VAR00033 1 0.742 VAR00034 1 0.749 VAR00035 1 0.612 VAR00036 1 0.606 VAR00037 1 0.707 VAR00038 1 0.712 VAR00039 1 0.842 VAR00040 1 0.853 VAR00041 1 0.644 VAR00042 1 0.649 VAR00044 1 0.549 VAR00045 1 0.876 VAR00046 1 0.898 VAR00047 1 0.722 VAR00048 1 0.755 VAR00049 1 0.636 VAR00050 1 0.821 VAR00052 1 0.578

Communalities for all variables were observed. Communalities’ values for all variables were sufficiently above 0.50 except variable 24 which pertained to 0.423; this variable was removed from the instrument. Hence factor analysis with principal component analysis as an extraction method was employed on the remaining 41 items.

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TABLE - 6.18 ROTATED COMPONENT MATRIX

Items 1 2 3 4 5 6 7 8 VAR00014 0.929 VAR00013 0.916 VAR00016 0.904 VAR00015 0.900 VAR00012 0.852 VAR00022 0.724 VAR00011 0.611 VAR00023 0.592 VAR00021 0.532 0.511 VAR00033 0.986 VAR00038 0.872 VAR00032 0.751 VAR00040 0.604 VAR00041 0.519 VAR00047 0.812 VAR00044 0.717 VAR00046 0.691 VAR00045 0.560 VAR00048 0.524 VAR0006 0.517 VAR00035 0.729 VAR00028 0.705 VAR00027 0.666

212

Items 1 2 3 4 5 6 7 8 VAR00029 0.605 VAR00020 0.601 VAR00026 0.555 VAR00030 0.897 VAR00002 0.765 VAR00017 0.644 VAR00036 0.510 VAR00037 0.745 VAR00049 0.663 VAR00018 0.624 VAR00042 0.724 VAR00025 0.611 VAR00019 -0.504 VAR00031 -0.571 VAR00034 -0.586 VAR00039 -0.508 VAR00050 -0.543 VAR00052 -0.501 Extraction method: Principal Component Method Rotation method: Varimax with Kaiser Normalization.

A rotation converged in 7 items.

Variable 21 is removed from the instruments.

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TABLE - 6.19 COMMUNALITIES

Items Initial Extraction VAR00002 1 0.547 VAR00006 1 0.564 VAR00011 1 0.668 VAR00012 1 0.587 VAR00013 1 0.721 VAR00014 1 0.793 VAR00015 1 0.572 VAR00016 1 0.812 VAR00017 1 0.864 VAR00018 1 0.564 VAR00019 1 0.324 VAR00020 1 0.913 VAR00022 1 0.860 VAR00023 1 0.692 VAR00025 1 0.699 VAR00026 1 0.574 VAR00027 1 0.534 VAR00028 1 0.755 VAR00029 1 0.736 VAR00030 1 0.618 VAR00031 1 0.257 VAR00032 1 0.565 VAR00033 1 0.555

214

Items Initial Extraction VAR00034 1 0.415 VAR00035 1 0.722 VAR00036 1 0.676 VAR00037 1 0.565 VAR00038 1 0.648 VAR00039 1 0.437 VAR00040 1 0.819 VAR00041 1 0.708 VAR00042 1 0.897 VAR00044 1 0.786 VAR00045 1 0.869 VAR00046 1 0.858 VAR00047 1 0.538 VAR00048 1 0.527 VAR00049 1 0.586 VAR00050 1 0.454 VAR00052 1 0.281

Items 19, 31, 34, 39, 50 and 52 are removed from the instrument as items 19, 31, 34, 39, 50 and 52 have values of less than 0.5.

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TABLE - 6.20 COMMUNALITIES

Items Initial Extraction

VAR00002 1 0.879

VAR00006 1 0.728

VAR00011 1 0.659

VAR00012 1 0.912

VAR00013 1 0.907

VAR00014 1 0.871

VAR00015 1 0.811

VAR00016 1 0.729

VAR00017 1 0.637

VAR00018 1 0.748

VAR00020 1 0.754

VAR00022 1 0.562

VAR00023 1 0.673

VAR00025 1 0.841

VAR00026 1 0.785

VAR00027 1 0.573

VAR00028 1 0.936

VAR00029 1 0.920

VAR00030 1 0.610

216

Items Initial Extraction

VAR00032 1 0.724

VAR00033 1 0.630

VAR00035 1 0.941

VAR00036 1 0.755

VAR00037 1 0.962

VAR00038 1 0.773

VAR00040 1 0.716

VAR00041 1 0.814

VAR00042 1 0.625

VAR00044 1 0.532

VAR00045 1 0.747

VAR00046 1 0.951

VAR00047 1 0.660

VAR00048 1 0.578

VAR00049 1 0.549

217

TABLE - 6.21 TOTAL VARIANCE EXPLAINED

Extraction Sums of Squared Rotation Sums of Squared Initial Eigen Values Loadings Loadings Component % of Cumulative % of Cumulative % of Cumulative Total Total Total Variance % Variance % Variance % 1 14.893 37.233 37.233 14.893 37.233 37.233 4.994 12.485 12.485 2 3.435 8.588 45.821 3.435 8.588 45.821 4.887 12.218 24.703 3 2.553 6.383 52.204 2.553 6.383 52.204 4.753 11.883 36.586 4 1.787 4.468 56.672 1.787 4.468 56.672 3.923 9.808 46.394 5 1.435 3.588 60.260 1.435 3.588 60.260 3.861 9.653 56.047 6 1.273 3.183 63.443 1.273 3.183 63.443 2.819 7.048 63.095 7 1.193 2.982 66.425 1.193 2.982 66.425 1.332 3.330 66.425 8 0.999 2.498 68.923 9 0.975 2.437 71.360 10 0.965 2.413 73.773 11 0.943 2.357 76.130 12 0.897 2.243 78.373 13 0.854 2.135 80.508 14 0.765 1.912 82.420 15 0.721 1.803 84.223 16 0.693 1.732 85.955 17 0.671 1.678 87.633 18 0.613 1.532 89.165 19 0.529 1.323 90.488 20 0.516 1.290 91.778 21 0.451 1.127 92.905 22 0.421 1.053 93.958 23 0.376 0.940 94.898 24 0.311 0.777 95.675 25 0.299 0.748 96.423 26 0.293 0.732 97.155 27 0.283 0.708 97.863 28 0..198 0.495 98.358 29 0.146 0.365 98.723 30 0.134 0.335 99.058 31 0.123 0.307 99.365 32 0.093 0.233 99.598 33 0.084 0.210 99.808 34 0.077 0.192 100 Extraction method: Principal Component Analysis

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TABLE - 6.22 ROTATED COMPONENT MATRIX Items 1 2 3 4 5 6 7 VAR00014 0.767 VAR00013 0.763 VAR00016 0.756 VAR00015 0.754 VAR00012 0.751 VAR00022 0.707 VAR00011 0.651 VAR00023 0.600 VAR00033 0.753 VAR00038 0.732 VAR00032 0.722 VAR00040 0.638 VAR00041 0.611 VAR00047 0.710 VAR00044 0.702 VAR00046 0.691 VAR00045 0.635 VAR00048 0.615 VAR00006 0.516 VAR00035 0.677 VAR00028 0.660 VAR00027 0.626 VAR00029 0.606 VAR00020 0.600 VAR00026 0.535 VAR00030 0.739 VAR00002 0.652 VAR00017 0.638 VAR00036 0.559 VAR00037 0.656 VAR00049 0.598 VAR00018 0.504 VAR00042 0.719 VAR00025 0.507 Extraction method: Principal Component Method Rotation method: Varimax with Kaiser Normalization. A rotation converged in 6 items.

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It is inferred from table 6.22 that ‘Willing to help customers and the readiness to respond to customers’ requests, Giving caring and individual attention to customers by having the customers’ best interest at heart, Agents and employees who instill confidence in customers by proper behaviour,

Agents and employees who understand the specific needs of their customers,

Apprising the customers of the nature and schedule of services available in the organization, Providing prompt service to customers, Agents and employees who have the proper knowledge and competence to answer customers’ specific queries and requests and Effective customers’ grievance redressal procedures and processes’ are grouped and named as ‘Proficiency’.

Attractive and informative media, theme layout, and language of the advertisement, visually appealing materials and facilities associated with the service, easy to get information about insurance policies through TV,

Newspaper, Internet etc. rather than agents, staff appeared neat and professional and modern looking updated equipment, fixtures, and facilities are grouped and named as ‘Media and Presentation’.

Provides proper drinking water and sanitary facilities, branch layout has been designed to give more space to the customers to transact business, providing visually appealing signs, symbols, advertisement, boards, pamphlets and other artifacts in the branch offices, comfortable physical layout of premises, furnishings, and ambient conditions (e.g. temperature, ventilation, noise, odour) for the customers to interact with official staff, promotes ethical

220 conduct in everything it does and high rate of return on insurance policies as compared to the other saving instruments (fixed deposit in banks, national saving certificates etc.) are grouped and named as ‘Physical and Ethical excellence’.

Adequate and necessary personnel/agents for good customer services, timely revival of lapsed policies, change of nominations, addresses and mode of premium payment etc, speedy documentation and processes from the time of issue of policies up to the settlement of claims(e.g. premium and default notices etc), number of regular meetings with agents, discussion on each and every aspect of the policy, analysis of various tax aspects etc., in order to buy life insurance policy, performing services right the first time and ability of agents to give truthful advice on investments/tax benefits etc are grouped and named as ‘Service delivery process and Purpose’.

Convenient to pay premium on due date, flexible policies/new policies that meet customers’ needs, making customers feel safe and secure in their transactions and enhancement of technological capability (e.g. computerization, networking of operation, etc.) to serve customers more effectively are grouped and named as ‘Security and Dynamic operation’.

Adequate and necessary facilities for good customer services, wide use of modern and alternate mode of premium payment, such as electronic clearing system, payment through Internet etc and appropriate behaviour of the concerned staff are grouped and named as ‘Credibility’.

221

Convenient location of the branch offices and availability of top sales

managers in case of need are grouped and named as ‘Functionality’.

TABLE - 6.23 ROTATED FACTOR ANALYTIC RESULTS OF POLICYHOLDERS’ PERCEPTION SCALE

Eigen % of Factors Loading Values Variance Proficiency 14.893 37.233 S14. Willing to help customers and the readiness 0.767 to respond to customers’ requests S13. Giving caring and individual attention to customers by having the customers’ best interest 0.763 at heart S16. Agents and employees who instill 0.756 confidence in customers by proper behaviour S15. Agents and employees who understand the 0.754 specific needs of their customers S12. Apprising the customers of the nature and 0.751 schedule of services available in the organization S22. Providing prompt service to customers 0.707 S11. Agents and employees who have the proper knowledge and competence to answer customers’ 0.651 specific queries and requests S23. Effective customers’ grievance redressal 0.600 procedures and processes Media and Presentation 3.435 8.588 S33. Attractive and informative media, theme 0.753 layout, and language of the advertisement S38. Visually appealing materials and facilities 0.732 associated with the service S38. Easy to get information about insurance policies through TV, Newspaper, Internet etc. 0.722 rather than agents S40. Staff appeared neat and Professional 0.638 S41. Modern looking updated equipment, 0.611 fixtures, and facilities

222

Eigen % of Factors Loading Values Variance Physical and Ethical excellence 2.553 6.383 S47. Provides proper drinking water and sanitary 0.710 facilities S44. Branch layout has been designed to give 0.702 more space to the customers to transact business S46. Providing visually appealing signs, symbols, advertisement, boards, pamphlets and other 0.691 artefacts in the branch offices S45. Comfortable physical layout of premises, furnishings, and ambient conditions (e.g. 0.635 temperature, ventilation, noise, odour) for the customers to interact with official staff S48. Promotes ethical conduct in everything it 0.615 does S06. High rate of return on insurance policies as compared to the other saving instruments (fixed 0.516 deposit in banks, national saving certificates etc.) Service delivery process and Purpose 1.787 4.468 S35. Adequate and necessary personnel/agents for 0.677 good customer services S28. Timely revival of lapsed policies, change of nominations, addresses and mode of premium 0.660 payment etc S27. Speedy documentation and processes from the time of issue of policies up to the settlement 0.626 of claims (e.g. premium and default notices etc) S29. Number of regular meetings with agents, discussion on each and every aspect of the policy, 0.606 analysis of various tax aspects etc., in order to buy life insurance policy S20. Performing services right the first time 0.600 S26. Ability of agents to give truthful advice on 0.535 investments/tax benefits etc Security and Dynamic operation 1.435 3.588 S30. Convenient to pay premium on due date 0.739 S02. Flexible policies/new policies that meet 0.652 customers’ needs

223

Eigen % of Factors Loading Values Variance S17. Making customers feel safe and secure in 0.638 their transactions S36. Enhancement of technological capability (e.g. computerization, networking of operation, 0.559 etc.) to serve customers more effectively Credibility 1.273 3.183 S37. Adequate and necessary facilities for good 0.656 customer services S49. Wide use of modern and alternate mode of premium payment, such as electronic clearing 0.598 system payment through Internet etc S18. Appropriate behaviour of the concerned staff 0.504 Functionality 1.193 2.982 S42. Convenient location of the branch offices 0.719 S25. Availability of top sales managers in case of 0.507 need Total 66.425

Table 6.23 reveals seven factors. The seven factors so generated explain

66.425 per cent of total variance and have eigen values between 1.193 and

14.893. From this table, it is inferred that policyholders perceive that

proficiency as the most important feature of service. Media and presentation is

the second important feature. Physical and ethical excellence, service delivery

process and purpose, security and dynamic operations and credibility are the

third, fourth, fifth and sixth important features respectively. Functionality is the

final feature. Therefore, Proficiency is the key factor having impact on

policyholders’ perception towards life insurance service quality. By improving

the performance of agents and employees, private sector insurance companies

can increase their customers’ satisfaction.

224

TABLE - 6.24 INTER-FACTOR CORRELATIONS, FACTOR-WISE MEAN, STANDARD DEVIATION AND CRONBACH’S ALPHA OF EXTRACTED FACTORS (SUB SCALES)

Factors F1 F2 F3 F4 F5 F6 F7 F1 Proficiency 0.075 0.048 0.083 0.035 0.012 0.165 1 (0.023) (0.002) (0.165) (0.653) (0.742) (0.025) F2 Media and 0.250 0.222 0.278 0.154 0.082 1 presentations (0.000) (0.002) (0.000) (0.020) (0.213)

F3 Physical and 0.150 0.450 0.448 0.157 ethical 1 excellence (0.034) (0.000) (0.000) (0.027) F4 Service delivery 0.169 0.065 0.050 1 process and (0.012) (0.341) (0.358) purpose

F5 Security and 0.237 0.297 dynamic 1 operations (0.002) (0.000) F6 Credibility 0.285 1 (0.000) F7 Functionality 1 Number of 8 5 6 6 4 3 2 statements Mean (scale values) 4.22 6.03 6.08 7.94 5.80 5.77 3.72 Standard deviation 1.78 1.27 1.31 1.68 1.42 1.40 1.26 Alpha value 0.9143 0.8508 0.8714 0.8638 0.7711 0.7309 0.4814 Composite Cronbach’s Alpha = 0.8834

The inter factor correlation, factor-wise mean, standard deviation and

Cronbach’s Alpha of extracted factors are shown in table 6.24. The factor-wise alpha ranges from 0.4814 to 0.9143, thereby indicating high reliability of the sub-scale measuring the policyholders’ perception. The composite alpha for the entire scale is found to be high (0.8834). Hence it is inferred that there is a significant relationship between the factors.

225

MULTIPLE REGRESSION ANALYSIS

To assess overall effect of the instrument on service quality and to determine the relative importance of the individual dimension of the generated scale, multiple regression analysis has been performed. The result has been shown in table 6.25.

TABLE - 6.25 EFFECT SIZE AND RELATIVE IMPORTANCE OF THE INDIVIDUAL DIMENSION Standardised Factor Significant(p) VIF Co-efficient(ß) Proficiency 0.035 0.003 * 1.709 Media and presentations 0.019 0.244 1.964 Physical and ethical -0.032 0.040 * 2.468 excellence Service delivery process 0.024 0.160 2.224 and purpose Security and dynamic 0.043 0.125 1.808 operations Credibility 0.001 0.984 2.016 Functionality 0.105 0.030 * 1.687 R2 = 0.161 Adjusted R 2 = 0.143 F = 9.007 Significance = 0.000 *Significant at p < 0.05

Table 6.25 indicates that the adjusted R 2 is 0.143 taking seven dimensions as independent variables and overall service quality as dependent variable. Further, the results also indicate that proficiency, physical and ethical excellence and functionality appeared to be significant predicators (p < 0.05) of overall service quality. VIF values score from 1.687 to 2.468 indicating that multicollinearity among independent variables is not a problem.

226

ANOVA-ONEWAY ANALYSIS

ANOVA - One way classification was performed to test whether any significant difference existed among the various groups of respondents across

34 item perception scales. Two groups of the respondents based on sex (two categories) and marital status (two categories) are considered for ANOVA -

One way analysis. The following hypotheses have been formulated and tested.

Ho: There is no significant difference between the sex of the sample

policyholders and their perception towards service quality.

Ho: There is no significant difference between the marital status of the

sample policyholders and their perception towards service quality.

For the purpose of analysis, weighted average scores are calculated and shown in table 6.26.

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TABLE - 6.26 PERCEPTION OF POLICYHOLDERS - 34 ITEM SCALE – AN ANALYSIS OF WEIGHTED AVERAGE SCORES BASED ON SEX AND MARITAL STATUS Sex Marital status Weighted Statements Average S1 S2 MS1 MS2 Score S14 4.44 4.63 6.43 5.85 5.33 S13 5.48 4.82 5.79 5.35 5.36 S16 6.15 4.77 4.91 4.87 5.18 S15 6.30 6.07 4.67 4.33 5.34 S12 6.12 6.09 4.16 3.93 5.08 S22 5.61 6.09 3.80 3.83 4.83 S11 6.64 5.51 4.63 4.20 5.25 S23 6.26 3.48 4.80 4.24 4.70 S33 5.50 3.64 4.77 4.37 4.57 S38 4.80 4.68 6.07 5.59 5.29 S32 3.68 5.21 6.09 5.63 5.15 S40 4.88 5.78 6.09 5.76 5.63 S41 3.27 6.43 5.51 4.96 5.04 S47 5.73 5.20 3.48 3.26 4.42 S44 6.50 5.75 3.64 3.22 4.78 S46 6.49 5.69 4.68 4.43 5.32 S45 6.51 6.09 5.28 4.74 5.66 S48 4.87 4.07 5.79 5.35 5.02 S06 4.93 5.69 6.43 5.85 5.73 S35 4.71 4.54 5.79 5.35 5.10 S28 4.15 3.80 5.20 4.93 4.52 S27 4.27 4.16 5.75 5.61 `4.95 S29 4.42 4.67 5.69 5.24 5.01 S20 4.65 4.91 6.07 5.87 5.38 S26 4.67 4.64 4.54 4.67 4.63 S30 5.73 6.21 5.23 5.30 5.62 S02 6.13 4.21 4.36 6.23 5.30 S17 6.33 6.20 4.32 4.50 5.34 S36 6.27 3.08 4.49 6.09 4.98 S37 5.63 3.16 6.54 4.64 4.99 S49 4.67 5.09 4.84 4.91 4.88 S18 4.66 5.10 5.67 4.86 5.07 S42 4.53 4.87 4.77 4.37 4.64 S25 4.78 5.00 5.07 3.96 4.70

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TABLE - 6.27 ANOVA-ONEWAY ANALYSIS RESULTS

F-Value Degree of Significance at Groups (within Result freedom 5% level groups)

Sex 0.043 1 0.836 Accepted

Marital status 0.471 1 0.496 Accepted

Since the probability value of two groups are higher than 0.05, null hypotheses are accepted. Hence, 1) there is no significant difference between sex of the sample policyholders and their perception towards service quality.

2) There is no significant difference between the marital status of the sample policyholders and their perception towards service quality.

Chapter - VII

Findings, Suggestions and Conclusion 229

CHAPTER - VII FINDINGS, SUGGESTIONS AND CONCLUSION

In case of marketing of insurance policies and service quality of private sector insurance companies, policyholders are associated with sales managers and agents. The policyholders of this service are classified into urban and semi- urban policyholders. With the secondary data published by IRDA, it is understood that the insurance penetration is fluctuating in all countries during the study period. In the second chapter, the researches relating to insurance marketing both in India and Foreign have been reviewed. The third chapter throws light on the growth of insurance marketing at international level, national level and Tiruchirappalli district. The fourth chapter deals with the role of sales managers and agents, who are the intermediaries in the marketing of insurance policies. The fifth chapter deals with the perception of policyholders and their problems. The sixth chapter deals with the service quality of private sector insurance companies from the view point of ‘Sales managers and

Agents’ and ‘Policyholders’. After having thoroughly studied the nature of marketing of insurance policies and the role of sales managers and agents, some of the important findings are presented in this chapter.

3.1 Continent wise insurance density and insurance penetration from the year 2005-06 to 2012-13 reveals that the insurance density is highest in North

America during the year 2006-07, that is, $ 1869.3. The insurance penetration

230 is highest in Asia, that is, 5.16 per cent during the year 2005-06. It is lowest in

Latin America and Caribbean, that is, 0.93 per cent during the year 2005-06.

3.2 The insurance density and insurance penetration in Asian countries during the year 2005-06 to 2012-13 reveals that the highest insurance density is in South Korea during the year 2010-11, that is, $ 6615.0. The highest insurance penetration is found in Taiwan during the year 2009-10 that is 15.40 per cent. The insurance penetration is found to be constant in Pakistan from the year 2005-06 to 2009-10 continuously, that is, 0.30 per cent.

3.3 The continent wise life insurance premium income from 2005-06 to

2012-13 reveals that the highest growth rate in premium income is in Latin

America and Caribbean during the year 2006-07, that is, 53.93 per cent. The lowest growth rate in premium income is found in North America during the year 2009-10, that is, -11.03 per cent.

3.4 The life insurance premium income of Asian Countries during the year 2005-06 to 2012-13 reveals that the highest growth rate in premium income is in Indonesia during the year 2009-10, that is, 67.95 per cent. The lowest growth rate in premium income is found in South Korea during the year

2007-08, that is, -18.30 per cent.

3.5 The number of private sector life insurance offices in India from the year 2005-06 to 2012-13 reveals that the number of private life insurance offices during the year 2005-06 is 1,645. It has increased to 8,785 during the year 2008-09. It has decreased to 6,759 during the year 2012-13 from 8,785

231 during the year 2008-09. The growth rate reveals that, during the year 2007-08, it is 108.04 per cent. During the year 2012-13, it shows the negative growth rate, that is, -12.36 per cent.

3.6 The number of agency licences issued by IRDA for private sector insurance companies in India from the year 2005-06 to 2012-13 reveals that the number of agency licences issued by IRDA for the year 2005-06 to private sector insurance companies is 7,21,696. The highest growth rate in number of agency licences issued by IRDA for private sector insurance companies is found during the year 2007-08, that is, 49.05 per cent. The lowest growth rate is found during the year 2010-11, that is, -17.34 per cent.

3.7 The new policies issued by private sector insurance companies in

India from 2005-06 to 2012-13 reveals that the number of new policies issued by private sector insurance companies in India during the year 2005-06 is

38,71,410. The highest growth rate is found during the year 2011-12, that is,

659.01 per cent. The lowest growth rate is found during the year 2010-11, that is, -22.62 per cent.

3.8 The total life insurance premium collected by private sector insurance companies in India during the study period reveals that the highest growth rate of total life insurance premium collected is found during the year

2006-07, that is, 87.31 per cent. The lowest growth rate is found during the year 2012-13, that is, -6.87 per cent.

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3.9 The staff strength of private sector insurance companies in India as on 31.12.2012 reveals that the total strength of officers (Class I) is 7,712. The total strength of sales managers (Class II) is 77,120. The total strength of clerical staff (Class III) is 23,136. The total strength of sub-ordinate staff (Class IV) is 23,136.

3.10 The net premium received in private sector insurance companies is

Rs.1,05,87,174 lakhs during 2005-06 and Rs.2,87,20,249 lakhs during 2012-13.

The commission during 2005-06 is Rs.8,63,548 lakhs and during 2012-13 is

Rs.19,21,810 lakhs. The ratio of commission to net premium has decreased from 8.16 in 2005-06 to 6.27 per cent in 2010-11. It has increased to 6.69 per cent during the year 2012-13.

3.11 The operating expenses during the year 2005-06 are Rs.9,61,105 lakhs and 2012-13 is Rs.31,56,170 lakhs. The ratio of operating expenses to net premium has fluctuated between 8.71 and 11.60 per cent during the study period.

3.12 The ratio of benefit to net premium ratio has fluctuated between

26.31 and 66.80 per cent during the study period.

3.13 The bonus during the year 2005-06 is Rs.29,746 lakhs and 2012-13 is Rs.1,44,080 lakhs. The ratio of bonus to net premium has fluctuated between

0.28 and 0.89 per cent during the study period.

3.14 The surplus during the year 2005-06 is Rs.69,848 lakhs and

2012-13 is Rs.7,65,891 lakhs. The ratio of surplus to net premium has fluctuated between 0.30 and 2.67 per cent during the study period.

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3.15 The total premium collected and life insurance premium collected by private sector insurance companies in Tiruchirappalli Division from 2005-06 to

2012-13 reveals that the percentage of life insurance premium to total premium is highest during the year 2011-12, that is, 81.65 per cent. It is lowest during the year 2010-11, that is, 40.30 per cent.

3.16 The non-life and life insurance claim to net premium ratio of private sector insurance companies in Tiruchirappalli division during the year

2005-06 to 2012-13 reveals that the non-life claim to net premium ratio during

2005-06 is highest, that is, 75.57 per cent. The life insurance claim to net premium ratio during 2005-06 is highest, that is, 44.27 per cent.

4.1 The educational qualification of the sales managers and agents reveals that 16.07 per cent of sales managers and agents have studied up to primary level; 24.55 per cent of them have studied up to secondary level; 18.31 per cent of them are graduates; 27.23 per cent of them are post graduates and the rest 13.84 per cent of them have other qualifications. It is inferred that majority of the sample sales managers and agents are post graduates.

4.2 Experience in the field of insurance of sample sales managers and agents reveals that 45.09 per cent of the sample sales managers and agents have less than 5 years of working experience; 30.80 per cent of them have got 5 to

10 years and the rest 24.11 per cent of them have more than 10 years of working experience. It is inferred that majority of the sample sales managers and agents have less than 5 years of working experience.

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4.3 The type of training undergone reveals that in the sales managers’ category, 96.43 per cent have undergone marketing training; 73.21 per cent have undergone premium collection training and 78.57 per cent have undergone computer billing training. In the agents’ category, 83.04 per cent have undergone marketing training; 39.88 per cent have undergone premium collection training and 52.98 per cent have undergone computer billing training. It is clear that majority of sales managers and agents have undergone marketing training.

4.4 The type of marketing mix followed by sales managers and agents reveals that majority of sales managers and agents have followed risk mix. Chi

Square test reveals that the sales managers and agents significantly differ in their type of marketing mix followed.

4.5 The knowledge about types of life insurance policies reveals that majority of the sales managers and agents (38.39 per cent) have expressed that they are thoroughly knowledgeable about the types of life insurance policies.

4.6 The sample sales managers and agents are asked to rank their type of market leader strategies followed by them. It is found that Rank I goes to

‘Pre-Emptive Defence Strategy’; Rank II goes to ‘Positive Defence Strategy’;

Rank III goes to ‘Counter-Offence Defence Strategy’; Rank IV goes to

‘Flanking Defence Strategy’; Rank V goes to ‘Mobile Defence Strategy’ and

Rank VI goes to ‘Construction Defence Strategy’.

4.7 The sample sales managers and agents are asked to rank their type of market-challenger strategies followed by them. It is found that Guerrilla attack

235 has secured Rank-I; Front attack has secured Rank-II; Flank attack has secured

Rank-III and Bypass attack has secured Rank-IV.

4.8 The sample sales managers and agents are asked to rank their type of market follower strategies followed by them. It is found that Rank-I is fetched by ‘Following Closely’; Rank-II is fetched by ‘Following Selectively’ and

Rank-III is fetched by ‘Following at a Distance’.

4.9 Likert’s five point scaling technique reveals that the sample sales managers and agents have followed differentiating strategy to the maximum extent followed by confrontation strategy and offensive strategy.

4.10 The opinion about market strategies (functional) followed by the sample sales managers and agents reveal that co-efficient for product mix strategy is 0.143; branding strategy is -0.116; product life positioning strategy is 0.116; pricing strategy is -0.531 and promotion mix strategy is -0.371. It is inferred that the sample sales managers and agents have followed product mix strategy and then product life positioning strategy.

4.11 Number of times approaching the prospective policyholders reveals that majority of sales managers and agents (31.69 per cent) have approached the prospective policyholders more than three times.

4.12 The success rate of majority of sales managers and agents (31.69 per cent) in getting policyholders is 60 to 80 per cent.

4.13 Majority of sales managers and agents (31.25 per cent) have expressed that two policies are taken by policyholders.

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4.14 The prime reason for insuring life reveals that co-efficient for

Family Protection Benefit is 0.464; Children Education and Marriage Benefit is

0.295; Health Protection Benefit is 0.103; Retirement Benefit is 0.183; Tax

Benefit is 0.152 and Other Benefits is 0.063. It is inferred that the sales managers and agents have explained all types of benefits to policyholders especially family protection benefit first and then children education and marriage benefit.

4.15 Perception about policy details reveals that the co-efficient for Risk

Coverage is -0.004; Premium Payment is -0.522; Maturity Details is 0.576;

Penal Provision is -1.268; Loan Aspect is -0.960; Bonus Details is 0.286;

Nomination Details is 0.170; Tax Benefit is 0.446 and Other Details is 0.540. It is inferred that the sales managers and agents have explained policy details to policyholders especially maturity details, bonus details, nomination details, tax benefits and other details.

4.16 Majority of sales managers and agents (41.96 per cent) have recommended ‘Spouse’ as nominee.

4.17 The method of payment of premium to policyholders reveals that the majority of sales managers and agents (48.66 per cent) have recommended

‘Quarterly Premium’ as the method of payment of premium.

4.18 Information about bonus added every year to policyholders reveals that majority of sales managers and agents (31.25 per cent) have normally told about bonus added every year. Kolmogorov-Smirnov test reveals that the sales

237 managers and agents differ in their perception towards information given about bonus added every year to policyholders.

4.19 Assurance given for additional services reveals that majority of sales managers and agents (17.86 per cent) have given assurance for medi- claim facilities.

4.20 Majority of sales managers and agents (45.54 per cent) have assisted one time to the policyholders for availing loan.

4.21 Problems faced at the time of granting loan to policyholders by sample sales managers and agents are analysed in the sales managers’ category,

12.5 per cent of them have refused to give application; 8.93 per cent of them have asked the policyholders to come on another day; 14.29 per cent of them have fixed lesser time in the forenoon session for application; 48.21 per cent of them have sanctioned lesser quantity of loan; 5.36 per cent of them have insisted for identification; 7.14 per cent of them have insisted for surety and

3.57 per cent of them have faced other sort of problems.

Among agents, 17.86 per cent of them have refused to give application;

8.93 per cent of them have asked the policyholders to come on another day;

13.10 per cent of them have fixed lesser time in the forenoon session for application; 38.69 per cent of them have sanctioned lesser quantity of loan;

10.12 per cent of them have insisted for identification; 5.35 per cent of them have insisted for surety and 5.95 per cent of them have faced other sort of problems.

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In general, majority of sales managers and agents have sanctioned lesser quantity of loan.

4.22 The problems faced in various stages by sales managers and agents are analysed. Majority of sales managers and agents (32.14 per cent) have faced problems during loan application processing stage. Chi Square test reveals that the sales managers and agents significantly differ in their problem faced at various stages.

4.23 Opinion about hidden charges reveals that majority of sales managers and agents (39.29 per cent) are highly dissatisfied about hidden charges. Kolmogorov-Smirnov test reveals that the sales managers and agents differ in their opinion about hidden charges.

4.24 Opinion about risk coverage aspect reveals that majority of sales managers and agents (28.57 per cent) are dissatisfied about risk coverage aspect. Kolmogorov-Smirnov test reveals that the sales managers and agents differ in their opinion about risk coverage aspect.

4.25 Opinion about tax concession reveals that majority of sales managers and agents (37.05 per cent) are highly dissatisfied about tax concession. Kolmogorov-Smirnov test reveals that the sales managers and agents differ in their opinion about tax concession.

5.1 Majority (60.57 per cent) of the sample policyholders are male.

5.2 Majority (62.89 per cent) of the sample policyholders are married.

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5.3 Chi square test reveals that the urban and semi urban sample policyholders do not differ with respect to types of policies held.

5.4 Chi square test reveals that the urban and semi urban sample policyholders differ with respect to reasons for insuring their life. Analysis reveals that among the urban policyholders, 13.51 per cent of them have insured their life for family protection; 33.52 per cent of them have insured their life for children education / marriage; 12.43 per cent of them have insured their life for health protection; 21.62 per cent of them have insured their life for retirement benefit; 10.81 per cent of them have insured their life for tax benefit and the rest 8.11 per cent of them have insured their life for other reasons.

In general, 12.57 per cent of the policyholders have insured their life for family protection; 22.29 per cent of them have insured their life for children education / marriage; 25.71 per cent of them have insured their life for health protection; 22.57 per cent of them have insured their life for retirement benefit;

9.43 per cent of them have insured their life for tax benefit and the rest 7.43 per cent of them have insured their life for other reasons.

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It is inferred that majority of the sample policyholders have insured their life for health protection.

5.5 Chi square test reveals that the urban and semi urban sample policyholders do not differ with respect to nominee provided for their policies.

5.6 Chi square test reveals that the urban and semi urban sample policyholders differ with respect to prime influencer to choose private sector insurance companies. Analysis reveals that among the urban policyholders,

36.22 per cent of them have opined agents as their prime influencer; 16.76 per cent of them have opined advertisement as their prime influencer; 5.41 per cent of them have opined relatives as their prime influencer; 12.42 per cent of them have opined friends as their prime influencer; 18.38 per cent of them have opined sales managers as their prime influencer and 10.81 per cent of them have opined others as their prime influencer.

In general, 27.14 per cent of the sample policyholders have opined agents as their prime influencer; 21.43 per cent of them have opined

241 advertisement as their prime influencer; 6.57 per cent of them have opined relatives as their prime influencer; 17.15 per cent of them have opined friends as their prime influencer; 17.71 per cent of them have opined sales managers as their prime influencer and 10.00 per cent of them have opined others as their prime influencer.

It is inferred that majority of the sample policyholders are influenced by agents to choose private sector insurance companies.

5.7 Chi square test reveals that the urban and semi urban sample policyholders differ with respect to the time taken by the agents for sending their policy.

5.8 Chi square test reveals that the urban and semi urban sample policyholders do not differ with respect to policy period opted.

5.9 Chi square test reveals that the urban and semi urban sample policyholders do not differ with respect to method of payment of premium opted.

5.10 Chi square test reveals that the urban and semi urban sample policyholders do not differ with respect to sources of reminders received for the payment of premium.

5.11 Chi square test reveals that the urban and semi urban sample policyholders differ with respect to mode of payment of premium opted.

5.12 Chi square test reveals that the urban and semi urban sample policyholders differ with respect to value of sum assured.

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5.13 Chi square test reveals that the urban and semi urban sample policyholders do not differ with respect to premium paid per annum.

5.14 The policyholders are asked to state the percentage of bonus amount added with their policy. 29.43 per cent of policyholders have said that less than 4 per cent of bonus is added to their policy; 25.14 per cent of them said that between 4 per cent and 5 per cent of bonus is added to their policy;

26.86 per cent of them said that between 5 per cent and 6 per cent of bonus is added to their policy and 18.57 per cent of them said that more than 6 per cent of bonus is added to their policy. It is inferred that majority of the sample policyholders have said that less than 4 per cent of bonus is added to their policy.

Chi square test reveals that the urban and semi urban sample policyholders differ with respect to percentage of bonus added to their policy.

5.15 The policyholders are asked to state the assurance given by agents for additional services. Majority of the sample policyholders have received assurance for loans from the agents. Chi square test reveals that the urban and semi urban sample policyholders differ with respect to assurance given by agents for additional services.

5.16 The sample respondents are asked to express their problems faced at the time of availing loan and pledging the policy. Analysis reveals that among urban policyholders, 12.97 per cent of them have faced the problems of

‘refusing to give application’; 10.81 per cent of them have faced the problems of ‘asking you to come on another day’; 10.27 per cent of them have faced the

243 problems of ‘fixing lesser time in the forenoon session for application’; 32.97 per cent of them have faced the problems of ‘quantity of loan sanctioning’;

7.57 per cent of them have faced the problems of ‘insisting for identification’;

16.22 per cent of them have faced the problems of ‘insisting for surety’ and

9.19 per cent of them have faced other problems.

It is inferred that majority of the sample policyholders have received lesser quantity of amount of loan than demanded by them. Chi square test reveals that the urban and semi urban sample policyholders do not differ with respect to problems faced at the time of getting loan pledging policy.

5.17 Likert’s score analysis reveals that the sample urban policyholders feel that the sales managers do not clarify doubts about policies and they feel that sales managers are not willing to help. Further they feel that the sales managers are not sympathetic and punctual. Moreover they do not feel that they have cordial relationship with insurance sales managers.

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5.18 Likert’s score analysis reveals that the sample semi urban policyholders feel that the sales managers do not clarify doubts about policies and they feel that sales managers are not willing to help. Further they feel that the sales managers are not sympathetic and punctual. Moreover they do not feel that they have cordial relationship with insurance sales managers.

5.19 Likert’s score analysis reveals that the sample urban policyholders are not satisfied with the acts done in good faith by agents and about frankness.

However, they are satisfied with the activities of the agents in relation to cordiality, attending to the needs of policyholders and their interest in selling more policies.

5.20 Likert’s score analysis reveals that the sample semi urban policyholders are not satisfied with the acts done in good faith by agents and about frankness. However, they are satisfied with the activities of the agents in relation to cordiality, attending the needs of policyholders and their interest in selling more policies.

5.21 Opinion about premium charged by private sector life insurance companies reveals that 16.57 per cent of policyholders are highly satisfied;

19.14 per cent of them are satisfied; 11.14 per cent of them are not opined;

12.29 per cent of them are dissatisfied and 40.86 per cent of them are highly dissatisfied. It is inferred that majority of the sample policyholders are highly dissatisfied with the premium charged. Kolmogorov Smirnov test reveals that the urban and semi urban sample policyholders differ with respect to the opinion about premium charged.

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5.22 The data relating to the opinion expressed by the sample policyholders towards bonus amount added reveals that among urban policyholders, 35.14 per cent of them are highly satisfied; 17.29 per cent of them are satisfied; 8.65 per cent of them are not opined; 8.65 per cent of them are dissatisfied and

30.27 per cent of them are highly dissatisfied.

Among semi urban policyholders, 29.09 per cent of them are highly satisfied; 9.70 per cent of them are satisfied; 4.85 per cent of them are not opined; 19.39 per cent of them are dissatisfied and 36.97 per cent of them are highly dissatisfied.

It is inferred that majority of the sample policyholders are highly dissatisfied with the bonus amount added to their policy. Kolmogorov Smirnov test reveals that the urban and semi urban sample policyholders differ with respect to the opinion about bonus amount added to their policy.

5.23 The data relating to the opinion expressed by the sample policyholders towards tax benefit in the initial stage reveals that among urban policyholders,

7.57 per cent of them are highly satisfied; 24.33 per cent of them are satisfied;

4.86 per cent of them are not opined; 48.65 per cent of them are dissatisfied and 14.59 per cent of them are highly dissatisfied.

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It is inferred that majority of the sample policyholders are dissatisfied with the tax benefit in the initial stage. Kolmogorov Smirnov test reveals that the urban and semi urban sample policyholders differ with respect to the opinion about tax benefit in the initial stage.

5.24 The data relating to the opinion expressed by the sample policyholders towards hidden charges while getting loans reveals that among urban policyholders, 18.92 per cent of them are highly satisfied; 26.49 per cent of them are satisfied; 6.48 per cent of them are not opined; 17.30 per cent of them are dissatisfied and 30.81 per cent of them are highly dissatisfied.

It is inferred that majority of the sample policyholders are dissatisfied with the hidden charges while getting loans. Kolmogorov Smirnov test reveals that the urban and semi urban sample policyholders differ with respect to the opinion about hidden charges while getting loans.

6.1 Factor analysis towards perception of sales managers and agents towards service quality of private sector insurance companies in the study area reveals that staff co-ordination is the most important feature of service.

Customer target is adjudged as the second important feature followed by competitive advantage predicates, material hall marks, promising product and process, service enhancement and exclusive attention.

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6.2 Composite Cronbach’s Alpha reveals that there is a significant relationship between perception of sales managers and agents towards staff co-ordination, customer target competitive advantage predicates, material hallmark promising products and process, service enhancement and exclusive attention.

6.3 ANOVA-One Way analysis reveals that there is no significant difference between the educational level of sales managers and agents and their perception towards service quality of private sector insurance companies.

6.4 ANOVA-One Way analysis reveals that there is no significant difference between the working experience of sales managers and agents and their perception towards service quality of private sector insurance companies.

6.5 ANOVA-One Way analysis reveals that there is no significant difference between the type of marketing mix followed by the sales managers and agents and their perception towards service quality of private sector insurance companies.

6.6 Factor analysis towards perception of policyholders towards service quality of private sector insurance companies in the study area reveals that proficiency is the most important feature of service. Media and presentation is adjudged as the second important feature followed by physical and ethical excellence, service delivery process and purpose, security and dynamic operations, credibility and functionality.

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6.7 Composite Cronbach’s Alpha reveals that there is a significant relationship between perception of policyholders towards proficiency, media and presentation, physical and ethical excellence, service delivery process and purpose, security and dynamic operations, credibility and functionality.

6.8 Multiple regression analysis reveals that proficiency, physical and ethical excellence and functionality appeared to be significant predicators of overall service quality.

6.9 ANOVA-One way analysis reveals that there is no significant relationship between sex of the sample policyholders and their perception towards service quality of private sector insurance companies.

6.10 ANOVA-One way analysis reveals that there is no significant relationship between the marital status of the sample policyholders and their perception towards service quality of private sector insurance companies.

SUGGESTIONS

Some of the important suggestions based on the study are summarised.

1. The insurance penetration is fluctuating in all countries during the study

period. To achieve greater insurance penetration, the healthier competition

has to be intensified by private sector insurance companies and they should

come up with new innovative policies to offer greater variety or choice to

the customers and also make improvement in the quality of the services and

sell policies through appropriate distribution channel to win-win situation.

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2. The result indicates that majority of policyholders have insured their life for

health protection as well as retirement benefit. Hence the insurance policies

should be designed and promoted as per the needs of the valuable policyholders.

3. It is observed from the results that the prime influencer to choose private

sector insurance companies by policyholders is agent. Hence it is strongly

recommended that the agents must maintain and follow up referrals given

by friends and existing policyholders.

4. Policyholders feel that the sales managers and agents are not clarifying their

doubts about policies and there is no cordial relationship between

policyholders and agents as well as sales managers. To create trust among

the policyholders, private sector insurance companies showed that training

of their sales force to be ethical, understand customer needs and sell

appropriate policies and provide complete information to the customers so

that they can make informed choices.

5. The results indicate that majority of the policyholders are highly dissatisfied

about premium charged and bonus amount added to their policy. Therefore,

they should be properly informed through e-mail or SMS.

6. The results indicate that majority of the policyholders are dissatisfied with

the tax benefits in the initial stage. Therefore, the policyholders must be

given details of tax planning and appropriate tax savings for their secure

future.

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7. Majority of the policyholders are dissatisfied about hidden charges made

by private sector insurance companies. Hence all the hidden charges should

clearly be stated in the form and explained by the agents and private sector

insurance companies should provide better training to the agents.

8. Staff co-ordination is the key factor which has an impact on sales managers

and agents’ perception towards service quality of private sector insurance

companies. Therefore, employees of the company should be more efficient

to provide enough support to sales managers and agents in case of selling

activities.

9. Proficiency is the key factor that has an impact on policyholders’ perception

towards service quality of private sector insurance companies. Hence, by

improving of the performance of agents and employees, the private sector

insurance companies can increase their customers’ satisfaction.

10. Media and presentation is adjudged as the second factor which has impact

on policyholders’ perception towards service quality of private sector

insurance companies. Hence, insurance companies should have to come up

with new approach to e-promotional strategies which is known as ‘Web

Public Relation’. It enables insurance companies to inform and persuade

customers about recent changes in insurance companies through sending

articles, which help them to review the site once in a month.

11. Physical and ethical excellence is adjudged as the third factor which has

impact on the policyholders’ perception towards service quality of private

sector insurance companies. Hence they should evolve a policy of standard

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layout plans for branch offices of different categories. The layout must take

care for providing spacious premises, adequate space to form the queues,

adequate seating arrangements and other facilities, formalities to make the

customers comfortable and happy during their visit to the branch offices.

Proper care should be taken in respect of interior decoration also.

12. Periodical training should be imparted to the sales managers and agents

related to marketing of insurance policies and the progress is to be

monitored and reviewed periodically.

13. A micro level plan is to be implemented and should be executed properly to

identify the high potential divisions, taluks and villages by the private sector

insurance companies for developing the insurance business.

14. Attractive wall painting in rural areas, special radio talks and targeted television

programmes may be planned to attract the rural as well as urban policyholders.

15. Importance of renewal of policies is to be explained to the policyholders.

Unless the policyholders are educated completely with regard to the risk

factors, the private sector insurance companies cannot expect magnificent

growth in the insurance business.

16. Periodical monitoring or review of performance of the companies on

insurance policies by the Head offices will have an effect of motivation

among the sales managers and agents. Suitable appreciation letters are to be

sent to those persons responsible for the improved performance. The

performance activities are to be circulated to the entire office monthly or on

quarterly basis.

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17. Special thrust is to be given to various Village Adoption Programmes

conducted by Non-Governmental organisations and the companies have to

take steps to market, the insurance policies through this Non-Governmental

organisations.

CONCLUSION

Success and overall growth potential of the insurance business depends on the efforts being made by the insurance companies in selling insurance policies to the policyholders. Selling insurance policies is a smart strategy and the real challenge is to retain and service the customers in the vibrant multiplayer competitive industry. Agents serve as the kingpin for insurance companies seeking to provide traditional and innovative products, and focus points for customers seeking to procure insurance coverage and long term saving. If the agents are satisfied with their organisation in every respect

(efficiency of supporting staff and their behaviour, training and refresher course and working environment), then they can provide efficient services to the policyholders which would increase the service quality of private sector insurance companies.

Bibliography B 1

BIBLIOGRAPHY

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B 6

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B 7

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B 8

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B 9

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B 10

✵ Sushma and Kotgiri, K., “Growth of life insurance Business: Public and Private insurance players in India”, Indian Journal of Research in Management, Business and Social Sciences (IJRMBSS) , Vol.1, Issue.2, March 2013. ✵ Tam Jackie, L.M. and Wong, Y.H., “Interactive Selling: A dynamic framework for services”, Journal of Services Marketing , Vol.15, No.5, 2001. ✵ Tanmay Acharya, Harshita Mishra and Venkata Seshaia, “Customer preferences in General Insurance Industry in India”, The ICFAI Journal of Marketing , December 2007. ✵ Varaprasad, V. and Murali Krishna, B., “Insurance sector: Strategies for Intermediation and Marketing”, SMART Journal of Business Management Studies , Vol.5, No.1, March 2009. ✵ Vikas Daryal, Garima Gupta and Prabhjot Kaur Lamba, “Attitudinal and Biographical factors responsible for lapses occurring in the life insurance sector: A case study of North West Haryana”, International Journal of Research in Commerce and Management , Vol.1, Issue.6, October 2010. ✵ Vikas Gautam and Mukund Kumar, “A study on attitudes of Indian consumers towards Insurance services”, Management Research and Practice , Vol.4, Issue.1, March 2012. ✵ Zaid Ahmad Ansari, “Analysis of the impact of reforms on insurance industry of Saudi Arabia”, Interdisciplinary Journal of Research in Business , Vol.1, Issue.8, August 2011.

REPORTS ✵ IRDA, Annual Report, 2003-04. ✵ Swiss Re Sigma World Insurance Report from 2005-06 to 2012-13.

B 11

Ph.D. THESIS ✵ Kumar, R., “Performance evaluation of General insurance companies: A study of Post-Reform Period”, Ph.D Thesis, Presented to Faculty of Commerce, Punjabi University, Patiala, August 2011. ✵ Muthulakshmi, M., “A study on policyholders attitude towards life insurance with special reference to life insurance corporation of India Tiruchirappalli District” , Unpublished Ph.D Thesis submitted to Bharathidasan University, Tiruchirappalli, October, 2011.

WEBSITES ✵ www.trichycitycorporation.com ✵ www.irdaindia.org ✵ www.swiss Re Sigma

Appendices A 1

A STUDY ON MARKETING OF LIFE INSURANCE POLICIES AND SERVICE QUALITY OF PRIVATE SECTOR INSURANCE COMPANIES, THIRUCHIRAPPALLI DISTRICT Interview Schedule for Policy Holder (Please put a mark in the appropriate box) Personal Data 1. Name (Optional) : 2. Sex : Male ❒ Female ❒ 3. Age : 25-35 ❒ 35-45 ❒ 45-55 ❒ 55 and above ❒ 4. Area of residence : Urban ❒ Semi-Urban ❒ Rural ❒ 5. Educational Qualification : Primary Level ❒ Secondary Level ❒ Graduate ❒ Post-Graduate ❒ Others ❒ 6. Occupational Status : Government employee ❒ Private sector employee ❒ Business ❒ Professionals ❒ Others ❒ 7. Marital status : Married ❒ Unmarried ❒ 8. Monthly income : Below Rs.50,000 ❒ Rs.50,000-Rs.70,000 ❒ Rs.70,000-Rs.90,000 ❒ Above Rs.90,000 ❒ 9. Name of the private sector insurance company where you have taken policy? (1) Bajaj Allianz Life Insurance ❒ (2) HDFC Standard Life Insurance ❒ (3) ING Vysya Life Insurance ❒ (4) Birla Sun Life Insurance ❒ (5) Max New York Life Insurance ❒ (6) ICICI Prudential Life Insurance ❒ (7) Aviva Life Insurance ❒ (8) SBI Life Insurance ❒

A 2

(9) MetLife India Life Insurance ❒ (10) Kotak Mahindra Old Mutual ❒ Life Insurance (11) Reliance (AMP Sanmar) (12) Tata AIG Life Insurance ❒ Life Insurance ❒ (13) Sahara India Life Insurance ❒ (14) Bharti AXA Life Insurance ❒ (15) Future Generali India ❒ (16) IDBI Fortis Life Insurance ❒ Life Insurance (17) AEGON Religare Life Insurance ❒ (18) DLF Pramerica Life Insurance ❒ (19) Star Union Dai-ichi Life Insurance ❒ (20) India First Life Insurance ❒ (21) Shriram Life Insurance ❒ (22) Canara HSBC Oriental Bank of ❒ Commerce Life Insurance (23) Edelweiss Tokyo Life Insurance ❒

INFORMATION RELATING TO LIFE POLICIES 10. Type of Policy held Mode of Payment Sum Assured Annual Type of Policy Amount Premium (Rs.) Monthly Annually Quarterly Half-yearly

Endowment Policy Whole life Policy Children endowment Policy Limited payment Policy Joint life Policy Convertible whole life Policy Anticipated Policy Annuity Policy Sinking fund Policy Others

11. Reasons for insuring life (a) Family protection ❒ (b) Child’s education/Marriage ❒ (c) Health protection ❒ (d) Retirement benefits ❒ (e) Tax benefits ❒ (f) Others ❒

A 3

12. Have you provided any nomination? (a) Yes ❒ (b) No ❒ If yes, who is your Nominee? (a) Spouse ❒ (b) Son ❒ (c) Daughter ❒ (d) Parents ❒ (e) Others ❒ 13. Who influenced you to prefer private sector insurance companies? (a) Agent ❒ (b) Advertisement ❒ (c) Relatives ❒ (d) Friends ❒ (e) Sales managers ❒ (f) Employer ❒ (g) Others ❒ 14. Who has provided you the information relating to the advantages and disadvantages of each and every type of policy? (a) Agent ❒ (b) Advertisement ❒ (c) Relatives ❒ (d) Friends ❒ (e) Sales managers ❒ (f) Employer ❒ (g) Others ❒ 15. Policy period opted (a) Less than 5 Years ❒ (b) 5-10 Years ❒ (c) 10-15 Years ❒ (d) Above 15 Years ❒ 16. Method of payment of premium opted by you (a) Salary Savings ❒ (b) Annual premium ❒ (c) Quarterly premium ❒ (d) Half yearly premium ❒ 17. Mode of payment of premium (a) Cash ❒ (b) Cheque/Bank draft ❒ (c) Salary deduction ❒ (d) Others ❒ 18. How do you get reminders for the payment of premium? (a) Through Post ❒ (b) Through sales manager ❒ (c) Online ❒ (d) Others ❒ 19. How do you make your payment? (a) Direct payment ❒ (b) Online ❒ (c) Through agents ❒ (d) Others ❒ 20. Do you know the amount of bonus added per year to your policy? (a) Yes ❒ (b) No ❒ If yes; State the approximate amount of bonus added per year to your policies: (as percentage of sum assured) (a) Less than 4% ❒ (b) 4% - 5% ❒ (c) 5% - 6% ❒ (d) 6% and above ❒

A 4

21. Are you given any assurance by agents for providing additional services if any? (a) Yes ❒ (b) No ❒ If yes, Type of assurance given for additional services (a) Medi-claim facilities ❒ (b) Advance deposits ❒ (c) Loans ❒ (d) Disability benefits ❒ (e) Accident benefits ❒ (f) Salary saving scheme ❒ (g) Pensioner payment ❒ (h) Minor policies ❒ (i) Minor girl’s policies ❒ (j) Tax exemption benefits 22. Time taken by agents for sending the policy (a) Less than 15 days ❒ (b) 15-30 days ❒ (c) 30-45 days ❒ (d) 45-60 days ❒ (e) Above 60 days ❒ 23. Have you taken any loan using your life policy? (a) Yes ❒ (b) No ❒ 24. Problems faced at the time of getting loan pledging policy (a) Refusing to give application ❒ (b) Asking you to come on another day ❒ (c) Fixing lesser time in the forenoon session for application ❒ (d) Amount of loan sanctioning ❒ (e) Insisting for identification ❒ (f) Insisting for surely, etc. ❒ (g) Other problems, if any ❒

25. Opinion on the role of Officials

Strongly No Strongly Opinion Agree Disagree Agree Opinion Disagree Officials clarify the policy

details Officials are willing to help Officials are always cordial Officials are sympathetic Officials are punctual

A 5

26. Opinion on the role of Agents Strongly No Strongly Opinion Agree Disagree Agree Opinion Disagree Agents attend the policyholders needs Agents sell policies in good faith Agents impart knowledge Agents are always frank Agents want to have more policies only Agents are cordial

GENERAL OPINION ABOUT PRIVATE SECTOR INSURANCE COMPANIES

27. Opinion about premium charged (a) Highly Satisfied ❒ (b) Satisfied ❒ (c) No opinion ❒ (d) Dissatisfied ❒ (e) Highly dissatisfied ❒ 28. Opinion about bonus amount added (a) Highly Satisfied ❒ (b) Satisfied ❒ (c) No opinion ❒ (d) Dissatisfied ❒ (e) Highly dissatisfied ❒ 29. Opinion about tax benefits in the initial stage (a) Highly Satisfied ❒ (b) Satisfied ❒ (c) No opinion ❒ (d) Dissatisfied ❒ (e) Highly dissatisfied ❒ 30. Opinion about hidden charges while getting loan (a) Highly Satisfied ❒ (b) Satisfied ❒ (c) No opinion ❒ (d) Dissatisfied ❒ (e) Highly dissatisfied ❒

A 6

31. Perception on existing services statements (VSD-Very Strongly Disagree, SD-Strongly Disagree, D-Disagree, N-Neither, A-Agree, SA-Strongly Agree, VSA-Very Strongly Agree) Perception Level Statements

Sl.No. Sl.No. VSD SD D N A SA VSA 1. Policies/plans of private insurance companies superior to or more attractive than the LIC 2. Flexible policies/new policies that

meet customers’ needs 3. Provides information/details about service innovations on a regular

basis through post, telephone, banks, etc. 4. Diversity and wide range of services (like variety of policies i.e., children plans, joint life plan, pension plans, special plans for women with different benefits options) 5. Premium paid is too low as compared

to the benefits derived 6. High rate of return on insurance policies as compared to the other saving instruments (fixed deposit in banks, national saving certificates etc.) 7. Adequate surrender value in case the

policy is discontinued before maturity 8. Reasonable penalty charged for late

premium payment 9. Convenient to pay periodical premium through agent than paying directly to the branch offices 10. Prefer to buy policies of LIC rather

than this

11 Agents and employees who have the proper knowledge and competence

A 7

Perception Level Statements

Sl.No. VSD SD D N A SA VSA to answer customers’ specific queries and requests 12 Apprising the customers of the nature and schedule of services available in the organisation 13 Giving caring and individual attention to customers by having the customers’ best interest at heart 14 Willing to help customers and the readiness to respond to customers’ requests 15 Agents and employees who understand

the specific needs of their customers 16 Agents and employees who are create confidence in customers by proper behaviour 17 Making customers feel safe and

secure in their transactions 18 Appropriate behaviour of the concerned

staff 19 Providing promised services as per

the set schedule 20 Performing services right from the

first time 21 Showing sincere interest in solving

customers’ problems 22 Providing prompt service to customers 23 Effective customers’ grievance redressal

procedures and processes 24 Agents inform and guide the customers at regular intervals as regards the

policy status, due date of premium, new policies and services 25 Availability of top officials in case

of need

A 8

Perception Level Statements

Sl.No. VSD SD D N A SA VSA 26 Ability of agents to give truthful

advice on investments/tax benefits etc. 27 Speedy documentation and processes from the time of issue of policies up

to the settlement of claims (e.g. premium and default notices etc.) 28 Timely revival of lapsed policies, change of nominations, addresses and mode of premium payment etc 29 Number of regular meetings with agents, discussion on each and every aspect of the policy, analysis of various tax aspects etc., in order to buy life insurance policy 30 Convenient to pay premium on due date 31 Medical check-up done properly 32 Easy to get information about insurance policies through TV, Newspaper, Internet etc. rather than agents 33 Attractive and informative media, theme layout, and language of the advertisement 34 Prefer to buy life policy through banks 35 Adequate and necessary personnel/agents

for good customer services 36 Enhancement of technological capability (e.g. computerization, networking of

operation, etc.) to serve customers more effectively 37 Adequate and necessary facilities for

good customer services 38 Visually appealing materials and

facilities associated with the service 39 Convenient operating hours and days

of the branches for the customers 40 Staff appeared neat and professional 41 Modern looking updated equipment,

fixtures and facilities

A 9

Perception Level Statements

Sl.No. VSD SD D N A SA VSA 42 Convenient location of the branch

offices 43 Providing plenty of convenient parking facility at all branches for their customers 44 Branch layout has been designed to give more space to the customers to transact business 45 Comfortable physical layout of premises, furnishings, and ambient conditions (e.g. temperature, ventilation, noise, odour) for the customers to interact with official staff 46 Providing visually appealing signs, symbols, advertisement, boards,

pamphlets and other artefacts in the branch offices 47 Provides proper drinking water and

sanitary facilities 48 Promotes ethical conduct in everything

it does 49 Wide use of modern and alternate mode of premium payment, such as

electronic clearing system, payment through Internet etc. 50 Sense of public responsibility among concerned staff in terms of being punctual, regular and sincere 51 Provides customer feedback card system for their level of satisfaction with the services of the insurers 52 Private sector insurance company emphasises high quality service than the volume of sale

32. Suggestions if any:______

A 10

jpUr;rpuhg;gs;sp khtl;lj;jpy; cs;s jdpahh; Jiw fhg;gPl;L epWtdq;fs; %yk; MAs; fhg;gPl;L ghyprpfis re;ijg;gLj;Jjy; kw;Wk; Nrit juk; gw;wpa xU Ma;T

ghypghyprprprprp itj;jpUg;gth;fSf;fhd tpdh njhFg;G ml;ltiz

(nghUj;jkhd fl;lq;fspy; nra;aTk;) nrhe;j tpguk; 1. ngah; (tpUg;gk; ,Ue;jhy;) : 2. ghypdk; : (a) Mz; ❒ (b) ngz; ❒ 3. taJ : (a) 25-35 ❒ (b) 35-45 ❒ (c) 45-55 ❒ (d) 55 mjw;F Nky; ❒ 4. trpj;J tUk; gFjp : (a) efuk; ❒ (b) efuk; rhh;e;j fpuhkk; ❒ (c) fpuhkk; ❒ 5. gbg;G epiy : (a) Muk;g fy;tp ❒ (b) Nky;epiy tFg;G Njh;r;rp ❒ (c) gl;l gbg;G ❒ (d) gl;l Nkw;gbg;G (e) kw;wait ❒ 6. njhopy; gjtp epiy : (a) murhq;f Ntiy ❒ (b) jdpahh; Jiwapy; Ntiy ❒ (c) njhopy; nra;gth; ❒ (d) jdpnjhopy; nra;gth; ❒ (e) kw;wait ❒ 7. jpUkz epiy : (a) jpUkzk; Mdth; ❒ (b) jpUkzk; Mfhjth; ❒ 8. khj tUkhdk; : (a) &.50>000f;Fk; fPNo ❒ (b) &.50>000-&.70>000 ❒ (c) &.70>000-&.90>000 ❒ (d) &.90>000f;Fk; Nky; ❒

A 11

9. jhq;fs; gpd;tUk; ve;j jdpahh;Jiw fhg;gPl;L epWtdj;jpy; MAs; fhg;gPl;L ghyprpia vLj;Js;sPh;? (1) g[h[; miyahd;]; iyg;,d;#ud;]; ❒ (2) vr;.b.vg;.rp. ];lhd;lh;L iyg; ,d;#ud;]; ❒ (3) Ivd;[p it];ah iyg;,d;#ud;]; ❒ (4) gph;yh rd;iyg; ,d;#ud;]; ❒ (5) IrpIrpI g;&ld;rpay; iyg; ,d;#ud;]; ❒ (6) mitth iyg; ,d;#ud;]; ❒ (7) v];.gp.I iyg; ,d;#ud;]; ❒ (8) Nkf;]; epa+ahh;f; iyg; ,d;#ud;]; ❒ (9) Nfhlhf; kNfe;jpuh Xy;L kpA+r;Rty; iyg; ,d;#ud;]; ❒ (10) hpiyad;]; (V.vk;.gp. rd;khh;) iyg; ,d;#ud;]; ❒ (11) lhlh VI[p iyg; ,d;#ud;]; ❒ (12) nkl;iyg; ,e;jpah iyg;,d;#ud;]; ❒ (13) ghujp Mf;~h iyg; ,d;#ud;]; ❒ (14) ga+r;rh;n[dNuhyp ,e;jpah iyg; ,d;R+ud;]; ❒ (15) IbgpI Nghh;l;b]; iyg; ,d;#ud;]; ❒ (16) rfhuh ,e;jpah iyg; ,d;#ud;]; ❒ (17) bvy;vg; g;umnkhpf;fh iyg; ,d;#ud;]; ❒ (18) ];lhh; a+dpad; lha;-r;rp iyg; ,d;R+ud;]; ❒ (19) gh;];l; iyg; ,d;#ud;]; ❒

(20) V

(21) fduh `r; v]; gprp Xhpaz;ly; Ngq;f; Mg; fhkh;]; iyg; ,d;#ud;]; ❒ (22) =uhk; iyg; ,d;#ud;]; ❒ (23)

A 12

10.10.10. tho;ehs; ghypghyprprprprp rk;ke;jg;gl;l jfty;fs; ifapy; itj;jpUf;Fk; ghypghyprprprprpapd;apd; tiffs; gzk; nrYj;Jk; Kiw

$l;Lj;njhif tUl ghypghyprprprprpapd;apd; tiffs; cWjp Kidkk; Kiw Kiw Kiw Kiw Kiw Kiw Kiw Kiw tUlk; tUlk; tUlk; tUlk; xU xU xU xU xUKiw xUKiw xU xU xU xU xUKiw xUKiw khjhe;jpuk; khjhe;jpuk; khjhe;jpuk; khjhe;jpuk; fhyhz;Lf;F fhyhz;Lf;F fhyhz;Lf;F fhyhz;Lf;F miuahz;Lf;F miuahz;Lf;F miuahz;Lf;F miuahz;Lf;F Fwpj;j fhy ghyprp tho;ehs;

KOikf;Fkhd ghyprp Foe;ijfs; Fwpj;j fhy ghyprp tiuaWf;fg;gl;l fl;lz ghyprp $l;L tho;f;if ghyprp khw;wf;$ba tho;ehs;

KOikf;Fkhd ghyprp vjph;ghh;f;fg;gl;l ghyprp Mz;L re;jh ghyprp %o;Fk; epjp ghyprp kw;wait

11. tho;f;ifia fhg;gPL nra;jjw;fhd fhuzk; (a) FLk;g ghJfhg;G ❒ (b) Foe;ijfs; gbg;G /jpUkzk; ❒ (c) cly;epiy ghJfhg;G ❒ (d) gzp Xa;Tf;fhy ed;ikf;fhf ❒ (e) thp fopf;Fk; ed;ikf;fhf ❒ (f) kw;w fhuzq;fs; ❒ 12. cq;fSf;F thhpRjhuiu epakpj;Js;sPuh? (a) Mk; ❒ (b) ,y;iy ❒ Mk; vdpy; gpd;tUgth;fspy; ahh; cq;fSila thhpRjhuh;? (a) kidtp ❒ (b) kfd; ❒ (c) kfs; ❒ (d) ngw;Nwhh; ❒ (e) kw;wth;fs; ❒ 13. jdpahh; Jiw fhg;gPl;L epWtdj;jpy; fhg;gPL vLf;f kw;Wk; Njh;e;njLf;f cq;fis J}z;bath; ahh;? (a) Kfth; ❒ (b) tpsk;guk; ❒ (c) ez;gh;fs; ❒ (d) tpw;gid Nkyhsh; ❒ (e) Ntiy mspj;jth;/Kjyhsp ❒ (f) kw;wit ❒

A 13

14. xt;nthU MAs; fhg;gPl;L ghyprpfspYk; cs;s ed;ik> jPik jfty;fis cq;fSf;F mspj;jth; ahh;? (a) Kfth; ❒ (b) tpsk;guk; ❒ (c) ez;gh;fs; ❒ (d) tpw;gid Nkyhsh; ❒ (e) Ntiy mspj;jth;/Kjyhsp ❒ (f) kw;wit ❒ 15. vLj;Js;s MAs; fhg;gPl;L ghyprpapd; nghUj;jkhd nkhj;j fhy msT (a) 5 tUlq;fSf;F fPNo ❒ (b) 5-10 tUlq;fs; ❒ (c) 10-15 tUlq;fs; ❒ (d) 15 tUlq;fSf;F Nkyhf ❒ 16. ve;j Kiwapy; fhg;gPl;L gphPkpak; gzk; nrYj;JtJ jq;fSf;F VJthf cs;sJ? (a) rk;gs Nrkpg;G %ykhf ❒ (b) fhyhz;Lf;F xU Kiw gphPkpak; nrYj;Jjy; ❒ (c) miuahz;Lf;F xUKiw gphPkpak; nrYj;Jjy; ❒ (d) tUl gphPkpak; jtiz njhifahf ❒ 17. fhg;gPl;L gphPkpak; gzk; nrYj;Jk; Kiw (a) nuhf;fk; ❒ (b) fhNrhiy /tq;fp tiuNthiy ❒ (c) rk;gsj;jpy; gpbj;jk; nra;jy; ❒ (d) kw;wait ❒ 18. gphPkpa gzk; nrYj;jpajw;fhd jftiy jq;fs; vjd; %yk; ngWfpwPh;fs;? (a) jghy; thapyhf ❒ (b) tpw;gid Nkyhsh; %ykhf ❒ (c) ,izak; topahf ❒ (d) kw;wait ❒ 19. jhq;fs; gzj;ij vt;topapy; nrYj;JfpwPh;fs;? (a) Neubahf nrYj;Jjy; ❒ (b) ,izak; %ykhf ❒ (c) Kfth; %ykhf ❒ (d) kw;wait ❒ 20. xt;nthU tUlKk; cq;fs; ghyprpapd; gzj;NjhL ntFkjp gzk; Nrh;f;fg;gLtJ cq;fSf;F njhpAkh? (a) Mk; ❒ (b) ,y;iy ❒ Mk; vdpy; rhpahf ve;j rjtpfpjj;jpy; ntFkjp gzk; cq;fs; ghyprpapd; gzj;Jld; Nrh;f;fg;gl;Ls;sJ? (a) 4% Fiwthf ❒ (b) 4% - 5% ❒ (c) 5% - 6% ❒ (d) 6% rjtpfpjj;jpw;Fk; Nky; ❒

A 14

21. Kfth;fshy;> jq;fSf;F VjhtJ NkYk; rpy Nritfs; nra;J jUtjhf cj;jputhjk; mspf;fg;gl;ljh? (a) Mk; ❒ (b) ,y;iy ❒ Mk; vdpy; ve;j tifahd $Ljy; Nritfs; nra;J jUtjhf cWjpaspf;fg;gl;lJ? (a) kUj;Jt fhg;gPl;L trjpfs; ❒ (b) Kd; gz itg;Gj; njhif ❒ (c) fld; ❒ (d) khw;Wj;jpwdhspfSf;fhd ed;ikfs; ❒ (e) tpgj;J fhg;gPl;L ed;ikfs; ❒ (f) rk;gs Nrkpg;G trjp jpl;lq;fs; ❒ (g) gzpT Xa;T ngw;NwhUf;fhd nrYj;Jjy; njhif ❒ (h) ,sty; ghyprpfs; ❒ (i) ,sty; ngz;fSf;fhd ghyprpfs; ❒ (j) thp tpyf;fpw;fhd ed;ikfs; ❒ 22. ghyprpia cq;fSf;F Kfth; mDg;g vLj;Jf; nfhz;l ehl;fs; vj;jid? (a) 15 ehl;fSf;Fk; Fiwthd ❒ (b) 15 -30 ehl;fs; ❒ (c) 35 -45 ehl;fs; ❒ (d) 45 -60 ehl;fs; ❒ (e) 60 ehl;fSf;F Nkyhf ❒ 23. cq;fs; ghyprpiaf; nfhz;L VjhtJ fld; ngw;wpUf;fpwPh;fsh? (a) Mk; ❒ (b) ,y;iy ❒ 24. ghyprpia gpizakhf itj;J fld; ngWk;NghJ jhq;fs; vjph;nfhz;l gpur;rpidfs; vd;dndd;d? (a) tpz;zg;gq;fs; thq;f kWf;fg;gLfpd;wJ ❒ (b) rpy ehl;fs; fopj;J tUkhW nrhy;yg;gLfpwJ ❒ (c) g+h;j;jp nra;ag;gl;l tpz;zg;gq;fis ju fhiy Neuq;fspy; Fiwe;j msT NeuNk xJf;fPL nra;ag;gl;Ls;sJ ❒ (d) nkhj;j fld; njhif xg;Gjy; nra;tij Fiwg;gJ ❒ (e) Ms; milahs tptuq;fSf;F tw;GWj;jg;gLfpwJ ❒ (f) fz;bg;ghd Njitfs; vd tw;GWj;Jjy; ❒ (g) kw;w gpur;ridfs; VNjDk; ,Ue;jhy; ❒

A 15

25.25.25. mYtyf mjpfhhpfspd; gq;F kw;Wk; mth;fs; rk;ge;jg;gl;rk;ge;jg;gll;l fUj;Jf;fUj;J f;f;f;fs;fs;

mstpy; mstpy; mstpy; mstpy;

Jf; Jf; fUj;JfUj;Jf;f;f;f;fs;fs; Jf; Jf; xj;Jf; xj;Jf; xj; xj; xj;Jf; xj;Jf; xj; xj; fUj;J $w $w fUj;J fUj;J fUj;J $w $w fUj;J fUj;J nfhs;syhk; nfhs;syhk; nfhs;syhk; nfhs;syhk; tpUk;gtpy;iy tpUk;gtpy;iy tpUk;gtpy;iy tpUk;gtpy;iy nfhs;stpy;iy nfhs;stpy;iy nfhs;stpy;iy nfhs;stpy;iy NtWghL cz;L cz;L NtWghL NtWghL NtWghL cz;L cz;L NtWghL NtWghL xj;Jf;nfhs;fpNwd; xj;Jf;nfhs;fpNwd; xj;Jf;nfhs;fpNwd; xj;Jf;nfhs;fpNwd; fLikahd fUj;J fUj;J fLikahd fLikahd

fLikahd fUj;J fUj;J fLikahd fLikahd

kpfr; rpwe;j rpwe;j kpfr; kpfr; kpfr; rpwe;j rpwe;j kpfr; kpfr; ghyprp rk;ge;jg;gl;l tpguq;fis mYtyf Copah;fs; njspthf tpsf;fp Ghpa itf;fpwhh;fs; jhkhf Kd;te;J Mh;tj;Jld; te;J ekf;F Njitahd cjtpfis mYtyf Copah;fs; nra;fpwhh;fs; midj;J rkaq;fspYk; mYtyf Copah;fs; cs; md;NghL ,ja g+h;tkhf ele;J nfhs;fpwhh;fs; mYtyf Copah;fs; midtUk; ,uf;fKs;sth;fshf ele;J nfhs;fpwhh;fs; mYtyf Copah;fs; midtUk; mYtyfq;fspy; Neue; jtwhikia filgpbf;fpd;wdh;.

22262666.... Kfth;fspd; gq;F kw;Wk; mth; rk;ke;jg;gl;l fUj;Jf;fs;

;J $w $w ;J ;J

fUj;JfUj;Jf;f;f;f;fs;fs; $w $w ;J ;J xj;Jf; xj;Jf; xj;Jf; xj;Jf; xj;Jf; xj;Jf; xj;Jf; xj;Jf; fUj fUj fUj fUj nfhs;syhk; nfhs;syhk; nfhs;syhk; nfhs;syhk; tpUk;gtpy;iy tpUk;gtpy;iy tpUk;gtpy;iy tpUk;gtpy;iy nfhs;stpy;iy nfhs;stpy;iy nfhs;stpy;iy nfhs;stpy;iy NtWghL cz;L cz;L NtWghL NtWghL NtWghL cz;L cz;L NtWghL NtWghL xj;Jf;nfhs;fpNwd; xj;Jf;nfhs;fpNwd; xj;Jf;nfhs;fpNwd; xj;Jf;nfhs;fpNwd;

fLikahd fUj;J fUj;J fLikahd fLikahd

fLikahd fUj;J fUj;J fLikahd fLikahd kpfr; rpwe;j mstpy; mstpy; rpwe;j rpwe;j kpfr; kpfr; kpfr; rpwe;j mstpy; mstpy; rpwe;j rpwe;j kpfr; kpfr; Kfth;fs; ghyprpjhuh;fspd; Njitfis czh;e;J nray;gLfpwhh;fs; Kfth;fs; ey;y ek;gpf;ifia Vw;gLj;jp jq;fs; ghyprpfis tpw;gid nra;fpwhh;fs; Kfth;fs; Njitahd jfty;fis gfph;e;J nfhs;fpd;wdh;/njhptpf;fpd;wdh; Kfth;fs; ve;j Neuj;jpYk; kdk;tpl;L ntspg;gilahf NgRfpd;wdh; / ele;J nfhs;fpwhh;fs; Kfth;fs; NkYk; epiwa ghyprpfis jq;fs; thbf;ifahsh;fs; jq;fsplk; thq;f tpUk;Gfpwhh;fs; Kfth;fs; cs; md;NghL ,jag+h;tkhf ele;J nfhs;fpwhh;fs;

A 16 jdpahh; fhg;gPl;L epWtdq;fs; Fwpj;j nghJthd fUj;Jf;fs; 27. jdpahh; fhg;gPl;L epWtdk; fhg;gPl;L gphPkpak; gzk; t#ypj;jy; gw;wpa cq;fs; fUj;J (a) kpfTk; jpUg;jpfukhf cs;sJ ❒ (b) jpUg;jpfukhf cs;sJ ❒ (c) fUj;J $wtpUk;gtpy;iy ❒ (d) jpUg;jpapy;iy ❒ (e) kpfTk; mjpUg;jpahd epiy ❒ 28. Nghd]; gzj;ij Nrh;j;jy; rk;ge;jgl;l jq;fspd; fUj;J (a) kpfTk; jpUg;jpfukhf cs;sJ ❒ (b) jpUg;jpfukhf cs;sJ ❒ (c) fUj;J $wtpUk;gtpy;iy ❒ (d) jpUg;jpapy;iy ❒ (e) kpfTk; mjpUg;jpahd epiy ❒ 29. Muk;gepiyapy; thpfl;Ljy; njhlh;ghd ed;ikfs; ngw;wJ rk;ge;jg;gl;l jq;fspd; fUj;J (a) kpfTk; jpUg;jpfukhf cs;sJ ❒ (b) jpUg;jpfukhf cs;sJ ❒ (c) fUj;J $wtpUk;gtpy;iy ❒ (d) jpUg;jpapy;iy ❒ (e) kpfTk; mjpUg;jpahd epiy ❒ 30. jhq;fs; ngw;w flDf;fhf kiwKf fl;lzq;fs; gpbj;jy; rk;ge;jg;gl;l jq;fs; fUj;J (a) kpfTk; jpUg;jpfukhf cs;sJ ❒ (b) jpUg;jpfukhf cs;sJ ❒ (c) fUj;J $wtpUk;gtpy;iy ❒ (d) jpUg;jpapy;iy ❒ (e) kpfTk; mjpUg;jpahd epiy ❒

A 17

33313111.... gpd;tUk; Nrit mwpf;iffs; kPjhd jq;fspd; fUj;Jf;fis njhptpf;fTk; [[[(kp.(kp.f.f.Nt.c)f.f.Nt.c) kpfTk; fLikahd fUj;J NtWghL cz;Lcz;L>>>> (f.f.Nt.c) fLikahd fUj;J NtWghL cz;Lcz;L>>>> (x) xj;Jf;nfhs;stpy;iyxj;Jf;nfhs;stpy;iy> >>> (,., /m.,) ,JTk; ,y;iy /mJTk; ,y;iy,y;iy>>>> (x.nfh) xj;Jf;nfhs;Sjy;xj;Jf;nfhs;Sjy;> >>> (r.x) rhpahf xj;Jf;nfhs;fpNwd;xj;Jf;nfhs;fpNwd;> >>> (kp.r.K.x) kpfTk; rhpahd Kiwapy; xj;Jf;nfhs;fpNwd;]]]

m., m., m., m., vz; vz; vz; vz; / / / / x x fUj;J nrhw;nwhlh;fs; x x

r.x r.x r.x r.x . . . . x.nfh x.nfh x.nfh x.nfh t t t t kp.r.K.x kp.r.K.x kp.r.K.x kp.r.K.x f.f.Nt.c f.f.Nt.c f.f.Nt.c f.f.Nt.c ,., ,., ,., ,., kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c

1. vy;.I.rpiaf; fhl;bYk; kpfr;rpwe;j kw;Wk; fth;r;rpf;fukhd fhg;gPl;L jpl;lq;fs; ,q;F fpilf;fpd;wd 2. khw;wj;jf;f ghyprpfs; kw;Wk; thbf;ifahsh;fspd; Njitfis g+h;j;jp nra;af;$ba Gjpa ghyprpfs; kw;Wk; jpl;lq;fis jdpahh; fhg;gPl;L epWtdq;fs; nfhz;Ls;sd. 3. Gjpa Nrit gw;wpa tpguq;fs; njhlh;e;j Kiwapy; jghy;%yk;> njhiyNgrp

thapyhf kw;Wk; tq;fpfs; %yk; midj;J tpguq;fisAk; toq;Ffpd;wJ. 4. gd;Kfj;jd;ik kw;Wk; gue;j Nritfs; (Foe;ijfSf;fhd jpl;lq;fs;> $l;L tho;f;if jpl;lq;fs; kw;Wk; tpj;jpahrkhd trjpfs; nfhz;l ngz;fSf;fhd gytifahd rpwg;G jpl;lq;fs; cs;sd. 5. ngwg;gLk; ed;ikfis xg;gpLk;NghJ nrYj;jf;$ba gphPkpak; jtiz gzk; kpfTk; Fiwthf cs;sJ. 6. kw;iwa Nrkpg;G topfisf; fhl;bYk; mjpf msT gzk; jpUk;gg; ngWk; fhg;gPl;L ghyprpfs; (tq;fpfspy; nrYj;jg;gLk; epiyahd itg;Gj;njhif> Njrpa Nrkpg;G gj;jpu rhd;wpjo;fs; kw;Wk; gy) 7. Kjph;T Njjpf;F Kd;ghf ghyprpia njhlh;e;J nrYj;j Kbahky; NghFk;NghJ

fpilf;fg;ngWk; NghJkhd ruz;lh; gzj;jpd; kjpg;G 8. fhg;gPl;L gphPkpak; nrYj;Jtjpy; jhkjk; Vw;gl;lhy; epahakhd jz;lj; njhif t#ypf;fg;gLfpwJ.

A 18

m., m., m., m., vz; vz; vz; vz; / / / / x x fUj;J nrhw;nwhlh;fs; x x

r.x r.x r.x r.x . . . . x.nfh x.nfh x.nfh x.nfh t t t t kp.r.K.x kp.r.K.x kp.r.K.x kp.r.K.x f.f.Nt.c f.f.Nt.c f.f.Nt.c f.f.Nt.c ,., ,., ,., ,., kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c

9. rhpahd fhyj;jpy; fhg;gPl;L gphPkpak; Kfth; nrYj;j trjpahf cs;sJ kw;Wk; gzj;ij

Neubahf fpis mYtyfq;fspy; nrYj;Jk; trjpAk; cs;sJ. 10. khwhf vy;.I.rp. ghyprpia thq;f tpUk;gpdhy; 11. rpwe;j mwpTjpwd; nfhz;l thbf;ifahsh;fSf;F Njitahd Nfs;tpfs; kw;Wk; Nfhhpf;iffSf;F

gjpyspf;f $ba Kfth;fs; kw;Wk; mYtyf cjtpahsh;fs; cs;sdh;. 12. rhjhuzkhf thbf;ifahsh;fspd; nray;fis kjpg;gpLjy; kw;Wk; Nrit rhh;e;j ml;ltizfs; epWtd mikg;gpy; cs;sJ. 13. jdpj;jdpNa xt;nthU thbf;ifahsh;fs; kPJ rpwe;j ftdk; kw;Wk; ,jag+h;t md;ghd fdpthd ghh;it cs;sJ. 14. thbf;ifahsh;fspd; Nfhhpf;iffis epiwNtw;w

jd;dhh;tj;Jld; jahuhf cs;sdh;. 15. jq;fs; thbf;ifahsh;fspd; Fwpg;gpl;l Njitfis Ghpe;J nfhs;Sk; Kfth;fs; kw;Wk; mYtyf mjpfhhpfs; cs;sdh;. 16. Kfth;fs; kw;Wk; Copah;fs; jq;fspd; rhpahd elj;ij %yk; thbf;ifahsh;fspd; ed;kjpg;ig ngWfpd;wdh;. 17. jq;fs; eltbf;if %yk; thbf;ifahsh;fSf;F

ghJfhg;G kw;Wk; ek;gpf;ifia Vw;gLj;Jfpd;wdh;. 18. thbf;ifahsh; rk;ge;jg;gl;l eltbf;ifapy; mYtyf Copah;fspd; elj;ij kpfr; rhpahf cs;sJ. 19. cWjpaspf;fg;gl;l Nritfis nfhLj;j fhy ml;ltizapd;gb rhpahf nra;J Kbf;fpwhh;fs;. 20. Kjd;Kjypy; nra;J nfhLj;j Nritfs; Nghy; midj;J NritfSk; md;WNghy; ,d;Wtiu rpwg;ghf cs;sJ. 21. thbf;ifahsh;fspd; gpur;rpidfis jPh;g;gjpy;

cz;ikahd mf;fiw fhl;Lfpd;wdh;. 22. thbf;ifahsh;fSf;fhd Nritfis cldbahf

toq;fp tUfpwhh;fs; 23. thbf;ifahsh;fspd; FiwghLfis epth;j;jp nra;Ak; eilKiwfspYk; mjd;

nray;ghLfspYk; epWtdq;fspd; gzp rpwg;ghf cs;sJ.

A 19

m., m., m., m., vz; vz; vz; vz; / / / / x x fUj;J nrhw;nwhlh;fs; x x

r.x r.x r.x r.x . . . . x.nfh x.nfh x.nfh x.nfh t t t t kp.r.K.x kp.r.K.x kp.r.K.x kp.r.K.x f.f.Nt.c f.f.Nt.c f.f.Nt.c f.f.Nt.c ,., ,., ,., ,., kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c

24. thbf;ifahsh;fs; vLj;Js;s ghyprpapd; epiy> gphPkpa j;njhif fl;l Ntz;ba ehs;> Gjpa ghyprp kw;Wk; Nritfs;> topfhl;ly;fs;

rk;ge;jg;gl;l tptuq;fs; Kiwahf njhlh;r;rpahd ,ilntspapy; Kfth;fs; %yk; thbf;ifahsh;fSf;F njhpag;gLj;jg;gLfpwJ. 25. Njitg;gLkhdhy; Nky; mjpfhhpfspd;

xj;Jiog;G rpwg;ghf ,Uf;fpwJ. 26. KjyPLfs; / thpr;rYiffs; rk;ge;jg;gl;l cz;ikahd jfty;fis ju VJthd jpwDila Kfth;fs; cs;sdh;. 27. Muk;gj;jpy; ghyprp fis ntspapl;L toq;Ftjpy; ,Ue;J Kbthf fhg;gPl;L Nfhhpf;iffs; kPjhd gzk; nrYj;Jjy; tiu tpiuthd Mtz Kiwahf;fk; kw;Wk; nray;ghLfs; cs;sd. (gphPkpak; kw;Wk;> Gwf;fzpf;fg;gl;l mwptpg;Gfs; rk;ge;jkhfTk;) 28. fhyhtjpahd ghyprpfis kWgb eilKiwf;F nfhz;L tUjy;> thhpRjhuh;fis khw;wk; nra;jy;> Kfthp khw;wk; kw;Wk; fhg;gPl;L gphPkpa gzk; nrYj;Jk; topfis khw;Wjy; rpwg;ghf cs;sJ. 29. ghyprpfs; thq;Fk;NghJ Kfth;fspd; ghyprp njhlh;ghd njhlh;r;rpahd $l;lq;fis elj;Jjy;> xt;nthU ghyprp rk;ke;jg;gl;l

tpguq;fisg; gw;wp fye;Jiuahly;> thpfl;Ljy; rk;ge;jg;gl;l MNyhridfs; toq;fg;gLfpd;wd. 30. fhg;gPl;L gzk; rhpahd jtiz Njjpfspy;

fl;l trjpahf cs;sJ. 31. kUj;Jt ghpNrhjid nray; rhpahf

nray;gLj;jg;gLfpwJ. 32. Kfth;fs; ePq;fyhf njhiyf;fhl;rp tpsk;guk;> nra;jpj;jhs; tpsk;guk; kw;Wk; ,iza top Mfpa Kiwfspy; fhg;gPl;L ghyprp rk;ke;jg;gl;l tptuq;fisg; ngw trjpahf cs;sJ. 33. GhpAk;gbahd tpsk;gu nkhop> tpsk;gu fUj;J mikg;G> fth;r;rpfukhd kw;Wk;

cgNahfkhd tpsk;gu jfty; mikg;ig epWtdk; nfhz;Ls;sJ.

A 20

m., m., m., m., vz; vz; vz; vz; / / / / x x fUj;J nrhw;nwhlh;fs; x x

r.x r.x r.x r.x . . . . x.nfh x.nfh x.nfh x.nfh t t t t kp.r.K.x kp.r.K.x kp.r.K.x kp.r.K.x f.f.Nt.c f.f.Nt.c f.f.Nt.c f.f.Nt.c ,., ,., ,., ,., kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c

34. MAs; fhg;gPl;L ghyprpfis tq;fpfs; %yk;

thq;f tpUk;GfpNwd;.

35. thbf;ifahsh;fSf;F Kfth;fs; %ykhf NghJkhd kw;Wk; Njitahd trjpfs; fpilf;fg;ngWfpd;wd.

36. thbf;ifahsh;fSf;F Nrit nra;a njhopy;El;g trjpfis jpwk;gl Nkk;gLj;jg;gl;Ls;sJ. (cjhuzkhf fzpdpkakhf;fy; midj;J nray;fisAk; ,iza topahf;Fjy; rpy)

37. Njitahd trjpfs; kw;Wk; thbf;ifahsh;

Nritfs; NghJkhd mstpy; cs;sd.

38. jq;fs; Nritfspy; ghyprpfis kw;Wk; gpw ghyprp rk;ke;jg;gl;l nghUl;fis fz;zpy;

fhZk;gbahf nra;J jdJ Nritia njhlh;fpd;wJ.

39. thbf;ifahsh;fspd; trjpf;F VJthf jq;fs; epWtd fpisfs;> mYtyf

Ntiyehl;fs; kw;Wk; gzpGhpAk; Neuq;fs; cs;sd.

40. mYtyf Copah;fs; jq;fs; njhopYf;F Vw;w tifapy; Milfspy; Neh;j;jpahfTk;> Rj;jkhd Kiwapy; fhzg;gLfpd;wdh;.

41. etPd kakhf;fg;gl;l kw;Wk; GJg;gpf;fg;gl;l cgfuzq;fs;> rhjdq;fs;> ,Uf;iffs; kw;Wk; trjpfs; nra;ag;gl;Ls;sd.

42. fhg;gPl;L epWtd fpis mYtyfq;fs; thbf;ifahsh;fSf;F VJthd trjpahd ,lq;fspy; mikf;fg;ngw;Ws;sd.

43. jq;fs; thbf;ifahsh;fspd; thfdq;fis epWj;j epoyhd gue;j thfd epWj;Jkplk;

trjp midj;J mYtyfq;fspYk; nra;ag;gLfpd;wd.

44. thbf;ifahsh;fs; jq;fs; eltbf;iffis jpwk;gl nra;J Kbj;Jf;nfhs;tjw;F gue;j

,ltrjpfSld; $ba tifapy; fpis epWtd mikg;G mikf;fg;gl;Ls;sJ.

A 21

m., m., m., m., vz; vz; vz; vz; / / / / x x fUj;J nrhw;nwhlh;fs; x x

r.x r.x r.x r.x . . . . x.nfh x.nfh x.nfh x.nfh t t t t kp.r.K.x kp.r.K.x kp.r.K.x kp.r.K.x f.f.Nt.c f.f.Nt.c f.f.Nt.c f.f.Nt.c ,., ,., ,., ,., kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c kp.f.f.Nt.c

45. thbf;ifahsh;fs; jq;fspd; mYtyf mjpfhhpfsplk; Ngrp fye;JiuahLtjw;F mth;fspd; Njitf;Nfw;w tifapy; mYtyf fl;bl mikg;Gfs;> ,Uf;if trjpfs;> fz;fth; myq;fhu nray;ghLfs; kw;Wk;

Rfhjhukhd Rw;Wg;Gw #o;epiyapy; fhzg;gLfpd;wJ. (cjhuzkhf rhpahd ntg;gepiy> fhw;Nwhl;lkhd trjp> ,iur;ry; ,y;yhik kw;Wk; Jh;ehw;wk; ,y;yhjpUj;jy; NkYk; rpy) 46. fz;iz ftuf;$ba tifapy; thzpf FwpaPLfs;> tpsk;gu mwptpg;G> gyif tpsk;guq;fs;> Jz;lwpf;if tpsk;guq;fs; Mfpad fpis mYtyfq;fspy; mikf;fg;gl;Ls;sd. 47. Kiwahd FbePh; kw;Wk; fopg;giw trjpfs;

nra;J nfhLf;fg;gl;Ls;sd. 48. ed;ndwp kw;Wk; rpwe;j elj;ij Kiwfs;

Cf;Ftpf;fg;gLfpd;wd. 49. fhg;gPl;L gphPkpaj; njhif nrYj;Jtjw;Fk;> fzf;Ffis KOtJkhf Kbf;fTk;> gzj;ij jpUk;g ngw rpwe;j ,izajs trjpAk; gue;j mstpy; etPdkakhf;fg;gl;l Nrit trjpfs; nra;ag;gl;Ls;sd. 50. mYtyf Copah;fs; nghJkf;fspd; Njit kw;Wk; Nrit eyid fUj;jpy; nfhz;L gzpapy; Neue;jtwhik> tpLKiw ,y;yhJ njhlh;e;J gzpGhpjy; kw;Wk; mh;g;gzpg;G czh;NthL gzpahw;Wfpd;wdh;. 51. fhg;gPl;L Nritfs; mspj;jjd; %yk; thbf;ifahsh;fs; ngw;w kdepiwit njhpe;J nfhs;s fUj;J ngWk; ml;ilfis toq;fp mJ g+h;j;jp nra;ag;gl;L mJ jpUk;gg;ngwg;gLfpwJ. 52. jdpahh; fhg;gPl;L epWtdq;fs; jq;fs; tpw;gidia kpFjpahf;Ftij fhl;bYk;>

thbf;ifahsh;fSf;F cah;jukhd Nritia GhpNthk; vd;W typAWj;JfpwJ.

32. NkYk; VjhtJ: ......

A 22

A STUDY ON MARKETING OF LIFE INSURANCE POLICIES AND SERVICE QUALITY OF PRIVATE SECTOR INSURANCE COMPANIES, TIRUCHIRAPPALLI DISTRICT

Interview Schedule for Officials and Agents

(Please put a mark in the appropriate box) I. Personal Data 1. Name (Optional) : 2. Occupation : (a) Sales manager ❒ (b) Agent ❒ 3. Age : (a) 25-35 ❒ (b) 35-45 ❒ (c) 45-55 ❒ (d) 55 and above ❒ 4. Sex : (a) Male ❒ (b) Female ❒ 5. Educational Qualification : (a) Primary Level ❒ (b) Secondary Level ❒ (c) Graduate ❒ (d) Post-Graduate ❒ (e) Others ❒ 6. Marital Status : (a) Married ❒ (b) Unmarried ❒ 7. Monthly Income : (a) Below Rs.50,000 ❒ (b) Rs.50,000 - Rs.70,000 ❒ (c) Rs.70,000 - Rs.90,000 ❒ (d) Above Rs.90,000 ❒ 8. Who influenced you to prefer a career in private sector insurance companies? (a) Agents ❒ (b) Advertisement ❒ (c) Relatives ❒ (d) Friends ❒ (e) Sales managers ❒ (f) Employers ❒ (g) Others ❒

II. Data Relating to Marketing aspects 9. Experience details (a) Less than 5 Years ❒ (b) 5 to 10 Years ❒ (c) More than 10 Years ❒

A 23

10. Type of policy normally recommended (Please rank) (a) Endowment Policy ❒ (b) Whole life Policy ❒ (c) Children endowment Policy ❒ (d) Limited payment Policy ❒ (e) Joint life policy ❒ (f) Convertible whole life Policy ❒ (g) Anticipated policy ❒ (h) Annuity policy ❒ (i) Sinking fund policy ❒ (j) Others ❒ 11. Type of training undergone training (a) Marketing training ❒ (b) Policy knowledge training ❒ (c) Consumer approach training ❒ (d) Premium collection training ❒ (e) Periodical training ❒ (f) Special training ❒ (g) Computer billing training ❒ (h) Others ❒ 12. Types of marketing mix followed by you (a) Policy Mix ❒ (b) Premium Mix ❒ (c) Risk Mix ❒ 13. Do you know the various types of life insurance policies? (a) Very well known ❒ (b) Known ❒ (c) No opinion ❒ (d) Not known ❒ (e) Not at all known ❒ 14. Which type of market leader strategies you follow (Please rank) (a) Position defence ❒ (b) Flanking defence ❒ (c) Pre-Emptive defence ❒ (d) Counter-Offensive defence ❒ (e) Mobile defence ❒ (f) Construction defence ❒ 15. Which type of market-challenger’s strategies you follow? (Please rank) (a) Front Attract ❒ (b) Flank Attack ❒ (c) Bypass Attack ❒ (d) Guerrilla Attack ❒ 16. Which type of Market-follower strategy you follow? (Please rank) (a) Following closely ❒ (b) Following at a distance ❒ (c) Following selectively ❒

A 24

17. Type of marketing strategies (Rivalry) followed

Rarely Strategies Always Usually Normally Rarely Never Differentiating Product flanking Confrontation Defensive Offensive Remarketing Demarketing

18. Types of marketing strategies (functional) followed

Functional Strategies Always Usually Normally Rarely Never Product Mix Branding Product life positioning Pricing Mix (Cost) Promotion Mix (Advertising and Sales promotion)

19. How many times will approach a prospective policy holder? (a) Once ❒ (b) Twice ❒ (c) Thrice ❒ (d) More than Thrice ❒ 20. What is your success rate in getting a policy holder? (a) Less than 20% ❒ (b) 20% - 40% ❒ (c) 40% - 60% ❒ (d) 60% - 80% ❒ (e) 80% - 100% ❒ 21. How many policies you policyholders have taken? (a) One ❒ (b) Two ❒ (c) Three ❒ (d) More than Three ❒

A 25

22. Do you state the purpose of insuring life in the initial stage?

Purpose Always Usually Normally Rarely Never Family Protection Children Education/Marriage Health Protection Retirement Benefit Tax Benefit Others

23. Do you explain the following to the policy holders in the initial stage?

Policy Details Always Usually Normally Rarely Never Risk coverage Premium payment Maturity details Penal provision Loan aspects Bonus details Nomination details Tax benefits Others

24. Whom do you recommend for nomination? (a) Spouse ❒ (b) Father ❒ (c) Mother ❒ (d) Son ❒ (e) Daughter ❒ (f) Brother/Sister ❒ (g) Others ❒ 25. Time taken for sending the policy (a) Less than 15 days ❒ (b) 15-30 days ❒ (c) 30-45 days ❒ (d) 45-60 days ❒ (e) More than 60 days ❒ 26. Method of payment of premium recommended by you (a) Salary savings ❒ (b) Annual premium ❒ (c) Quarterly premium ❒ (d) Half yearly premium ❒

A 26

27. Do you tell about the bonus added every year to your policy holders? (a) Always ❒ (b) Usually ❒ (c) Normally ❒ (d) Rarely ❒ (e) Never ❒ 28. Type of assurance given by you for additional services: (a) Medical claim facilities ❒ (b) Advance deposits ❒ (c) Loans ❒ (d) Disability benefit ❒ (e) Accident benefit ❒ (f) Salary saving scheme ❒ (g) Pensioner payment ❒ (h) Minor policies ❒ (i) Minor girl’s policies ❒ (j) Tax exemption benefit ❒ 29. Have you assisted you policy holders for loan, using the life policy? (a) Yes ❒ (b) No ❒ If yes, how many times have you assisted? (a) Once ❒ (b) Twice ❒ (c) Thrice ❒ (d) More than Thrice ❒ 30. Problems faced at the time of dealing policy holders who have approached for getting loan (a) Refusing to give application ❒ (b) Asking you to come on another day ❒ (c) Quantity of loan sanctioning ❒ (d) Insisting for identification ❒ (e) Insisting for surely ❒ (f) Fixing lesser time in the forenoon session for application etc. ❒ (g) Other problems ❒ 31. Problems faced in various stages: (a) Application processing stage ❒ (b) Premium collection stage ❒ (c) Loan application processing stage ❒ (d) Money back stage ❒ (e) Others ❒

A 27

III. General Opinion about insurance 32. Opinion about hidden charges while getting loan (a) Highly Satisfied ❒ (b) Satisfied ❒ (c) No Opinion ❒ (d) Dissatisfied ❒ (e) Highly Dissatisfied ❒ 33. Opinion about Risk coverage aspect (a) Highly Satisfied ❒ (b) Satisfied ❒ (c) No Opinion ❒ (d) Dissatisfied ❒ (e) Highly Dissatisfied ❒ 34. Opinion about tax concession (a) Highly Satisfied ❒ (b) Satisfied ❒ (c) No Opinion ❒ (d) Dissatisfied ❒ (e) Highly Dissatisfied ❒ 35. Perception on service quality (VSD-Very Strongly Disagree, SD-Strongly Disagree, D-Disagree, N-Neither, A-Agree, SA-Strongly Agree, VSA-Very Strongly Agree)

Perception level Statements

Sl.No. Sl.No. VSD SD D N A SA VSA 1. Policies/Plans of Private sector life insurance companies are superior to or more attractive than those of LIC 2. Single premium policies are appropriate for avoiding lapse 3. Customers prefer to buy new policies with excellent features and let their existing policies lapse 4. Amount of premium charged in relation to the sum assured is high 5. Rate of return on insurance products is lower than other saving instruments 6. Private sector insurance company provides information/details about innovations on a regular basis 7. Future of Private sector insurance company lies in better services and competitive products 8. First year commission on policies is reasonable and paid on regular basis

A 28

Perception level Statements

Sl.No. Sl.No. VSD SD D N A SA VSA 9. Renewal commission on policies is not reasonable 10. Performance – Oriented incentives are provided 11. Managers are well trained and have proper knowledge of policies/schemes to guide the Sales managers and agents’ selling activities properly 12. Managers provide enough support to solve agents and Sales managers problems 13. Behaviour of the supporting staff is inappropriate 14. Agents and Sales managers mostly sell and promote those policies/schemes that are beneficial to them in terms of higher commission 15. Sometimes agents and Sales managers face rivalry from other agents in carrying on their business 16. Agents are discouraged to put forward their points of view on the organisational functioning and performance 17. Private sector insurance company pays individual attentions to agents as much as possible 18. Private sector insurance company services have improved their services in the insurance sector 19. Speedy documentation and processes at time of issue of the policies and settlement of claims 20. Medical check up of the customers is not done properly 21. Advertisement support agents’ selling activities to a large extent 22. Media, theme layout and language are not used properly in advertisement for attracting the attention of customers

A 29

Perception level Statements

Sl.No. Sl.No. VSD SD D N A SA VSA 23. Customers service through internet certainly affects the efficiency level to a large extent besides improving the service quality 24. Computerised information system provides best and quick services to the agents and Sales managers 25. Ineffective grievance redressal system for agents and Sales managers 26. Training programmes, refresher courses and regular meetings with managers update agents and Sales managers about product and services 27. Feedback from customers is not effectively used to improve the service standards of Private sector insurance companies 28. Private sector insurance company emphasises quality rather than volume of sale 29. Quality plays a vital role in strengthening the Private sector insurance company ability to compete in a highly competitive market 30. Operating hours and days of the branches are convenient 31. Bancassurance can be the cost effective channel in providing better services along with the increment in average premium income of private sector insurance company 32. Location of branch offices is inconvenient 33. Parking facilities at branch offices is inconvenient 34. Drinking water and sanitary facilities are properly available 35. Physical layout of premises and other furnishings are not comfortable for agents and to interact with official staff 36. Private sector insurance company promotes ethical conduct in everything it does

A 30

Perception level Statements

Sl.No. Sl.No. VSD SD D N A SA VSA 37. Private sector insurance company should impart training in special marketing strategies and modern sales techniques for the better growth of agents and Sales managers’ performance 38. Private sector insurance company should arrange periodical refresher courses for agents and Sales managers at branch level for the effective implementation of marketing strategies 39. Private sector insurance company should expand the modern and alternative mode of premium payment, such as electronic clearing system, direct debit from customers’ bank account, payment through internet etc.

36. Suggestions if any:______

A 31

âU¢áuh¥gŸË kht£l¤âš cŸs jÅah® Jiw fh¥Õ£L ÃWtd§fŸ _y« MíŸ fh¥Õ£L ghÈghÈááááfisfis rªij¥gL¤Jjš k‰W« nrit juju«««« g‰¿a X® MŒî

Kft®fŸ k‰W« É‰gid nkyhs®nkyhs®fS¡fhdfS¡fhd Édh¤jhŸ bjhF¥ò

(bghU¤jkhd f£l§fËš brŒaî«) m. brhªj Égu« 1. bga® (ÉU¥g« ïUªjhš) : 2. gÂ Étu« : (a) É‰gid nkyhs® ❒ (b) Kft® ❒

3. taJ : (a) 25-35 ❒ (b) 35-45 ❒ (c) 45-55 ❒ (d) 55 mj‰F nkš ❒

4. ghÈd« : (a) M© ❒ (b) bg© ❒ 5. go¥ò Étu« : (a) Mu«g go¥ò ❒ (b) nkšÃiy tF¥ò nj®¢á ❒ (c) g£l go¥ò ❒ (d) g£l nk‰go¥ò ❒ (e) k‰wait ❒ 6. âUkzkhd Ãiy : (a) âUkz« Ko¤jt® ❒ (b) âUkz« Mfhjt® ❒ 7. tUl tUkhd« : (a) %.50,000¡F« ÑnH ❒ (b) %.50,000-%.70,000 ❒ (c) %.70,000-%.90,000 ❒ (d) %. 90,000‰F« nkš ❒ 8. j§fis jÅah®Jiw fh¥Õ£L ÃWtd¤âš j§fŸ bjhÊiy bfh©L bršy jh¡f« V‰gL¤âat® ah®? (a) Kft®fŸ ❒ (b) És«gu« ❒ (c) brhªj¡fhu®fŸ ❒ (d) e©g®fŸ ❒ (e) É‰gid nkyhs®fŸ ❒ (f) mYty®fŸ ❒ (g) k‰wait ❒

A 32

M. É‰gid nkyhs®fŸ rªijÆLjš bjhl®ghd jftšfŸ 9. mDgt Étu« (a) 5 tUl§fS¡F« ÑnH ❒ (b) 5 Kjš 10 tUl§fŸ ❒ (c) 10 tUl§fS¡F nkš ❒ 10. vªjtifahd ghÈáfis jh§fŸ gÇªJiu brŒ»Ö®fŸ? (a) F¿¤jfhy ghÈá (v‹nlhbk©£) ❒ (b) thœehŸ KGik¡fhd ghÈá ❒ (c) FHªijfŸ F¿¤jfhy ghÈá ❒ (d) tiuaW¡f¥g£l f£lz ghÈá ❒ (e) T£L thœ¡if ghÈá ❒ (f) kh‰w¡Toa thœehŸ KGik¡Fkhd ghÈá ❒ (g) vâ®gh®¡f¥g£l ghÈá ❒ (h) M©L rªjh ghÈá ❒ (i) _œF Ãâ ghÈá ❒ (j) k‰wait ❒ 11. vªj tifahd gÆ‰áÆ‹ Ñœ jh§fŸ gÆ‰á bg‰Ö®fŸ? (a) rªij¥gL¤Jjš gÆ‰á ❒ (b) ghÈá r«gªj¥g£l m¿î gÆ‰á ❒ (c) Ef®nth® mQFKiw gÆ‰á ❒ (d) ghÈÌ¤ bjhif tNš gÆ‰á ❒ (e) fhy gÆ‰á ❒ (f) áw¥ò gÆ‰á ❒ (g) fÂÅ uÓJ gÆ‰á ❒ (h) k‰wait ❒ 12. jh§fŸ vªj tifahd rªijÆLjš fyitia ã‹g‰W»Ö®fŸ. (a) ghÈá fyit ❒ (b) ãßÄa« fyit ❒ (c) ïl® fyit ❒ 13. fh¥Õ£L ghÈáfËš cŸs mid¤JÉjkhd ghÈáí« g‰¿ c§fS¡F bjÇíkh? (a) Äf e‹whf¤ bjÇí« ❒ (b) bjÇí« ❒ (c) fU¤JTw ÉU«gÉšiy ❒ (d) vd¡F bjÇahJ ❒

A 33

14. Ú§fŸ vªj tifahd jiyt® rªij c¤âia ã‹g‰W»Ö®fŸ? (a) Ãiy ghJfh¥ò ❒ (b) nrid ngh‹w ghJfh¥ò ❒ (c) K‹T£L bg‰w mDgt ghJfh¥ò ❒ (d) vâ®jh¡Fjiy rkhË¡F« ghJfh¥ò ❒ (e) ïl«bga®ªJ brš»‹w ghJfh¥ò ❒ (f) Ã®khÅ¤j ghJfh¥ò ❒ 15. Ú§fŸ vªj tifahd rthš c¤âfis rªijÆš ã‹g‰W»Ö®fŸ? (a) K‹ jh¡Fjš ❒ (b) g¡fth£L jh¡Fjš ❒ (c) ntWtÊ jh¡Fjš ❒ (d) f©_o¤jdkhd jh¡Fjš ❒ 16. Ú§fŸ vªj tifahd ã‹g‰Wgt® c¤âfis rªijÆš ã‹g‰W»Ö®fŸ? (a) beU¡fkhf ã‹bjhl®jš ❒ (b) ïilbtËÉ£L bjhl®jš ❒ (c) nj®ªbjL¤J bjhl®jš ❒ 17.17.17. vªj tifahd rªijÆLjš c¤âfis ngh£oÆš ã‹g‰W»Ö®fŸ?

ngh£o c¤âfŸ ïšiy ïšiy ïšiy ïšiy mÇjhf mÇjhf mÇjhf mÇjhf v¥nghJ« v¥nghJ« v¥nghJ« v¥nghJ« bghJthf bghJthf bghJthf bghJthf rhjhuzkhf rhjhuzkhf rhjhuzkhf rhjhuzkhf

A 34

18.18.18. vªj tifahd rªij¥gL¤Jjš c¤âfis (brayh¡f ÃiyÆš) ã‹g‰W»Ö®fŸ.

ghJ« ghJ« brašghL c¤âfŸ ghJ« ghJ« ïšiy ïšiy ïšiy ïšiy

mÇjhf mÇjhf

mÇjhf mÇjhf v¥n v¥n v¥n v¥n bghJthf bghJthf bghJthf bghJthf rhjhuzkhf rhjhuzkhf rhjhuzkhf rhjhuzkhf bghUŸ fyit jÅ¤Jtkhd bghUŸ bghUŸ thœÃiy fyit Éiy ca® fyit (És«gu« k‰W« É‰gid ca®î) 19. xU ghÈáia th§f brŒa tho¡ifahs® xUtiu v¤jid Kiw mQf nt©L«? (a) xU Kiw ❒ (b) ïU Kiw ❒ (c) _‹W Kiw ❒ (d) _‹W¡F« nkš ❒ 20. xU tho¡ifahsiu ghÈá th§f it¥gâš c§fË‹ bt‰¿ É»j« v‹d? (a) 20 %¡F« Fiwthf ❒ (b) 20 %-40 % ❒ (c) 40 %-60 % ❒ (d) 60 %-80 % ❒ (e) 80 %-100 % ❒ 21. c§fŸ tho¡ifahs® x›bthUtU« mâfg£rkhf c§fËl« v¤jid v©Â¡ifÆyhd ghÈáfis th§» cŸsh®? (a) x‹W ❒ (b) ïu©L ❒ (c) _‹W ❒ (d) _‹W¡F« nkš ❒ 22.22.22. Mu«g¤âš fh¥ÕL vL¥gj‹ K¡»a neh¡f« vd vij Ú§fŸ F¿¥ãLå®fŸ?

njit ïšiy ïšiy ïšiy ïšiy

mÇjhf mÇjhf

mÇjhf mÇjhf v¥nghJ« v¥nghJ« v¥nghJ« v¥nghJ« bghJthf bghJthf bghJthf bghJthf rhjhuzkhf rhjhuzkhf rhjhuzkhf rhjhuzkhf FL«g ghJfh¥ò FHªijfŸ go¥ò & âUkz« clšey ghJfh¥ò XŒîfhy e‹ikfŸ tÇ e‹ikfŸ k‰wait

A 35

23.23.23. MuMuMu«gÃiyÆšMu «gÃiyÆš fh¥ÕL vL¥gt®fS¡F ã‹tU« vªj Étu¤ij vL¤J ciu¥Õ®fŸ?

ghÈghÈghÈághÈ ááá Étu« ïšiy ïšiy ïšiy ïšiy

mÇjhf mÇjhf

mÇjhf mÇjhf v¥nghJ« v¥nghJ« v¥nghJ« v¥nghJ« bghJthf bghJthf bghJthf bghJthf rhjhuzkhf rhjhuzkhf rhjhuzkhf rhjhuzkhf ïl® fh¥ò Kidk gz« brY¤J« Étu« Kâ®î bjhif / fhy Étu§fŸ r£l¤âš cŸs j©lid bjhif Étu§fŸ fl‹ bgW« m«r§fŸ btFkâ gz Étu§fŸ tÇ rYif e‹ikfŸ k‰wait 24. thÇRjhuiu ÃaÄ¡f ahiu gÇªJiu brŒ»Ö®fŸ? (a) kidÉ ❒ (b) m¥gh ❒ (c) m«kh ❒ (d) kf‹ ❒ (e) kfŸ ❒ (f) rnfhju®/rnfhjÇ ❒ (g) k‰wait ❒ 25. ghÈáia tho¡ifahs®fS¡F mD¥g vL¤J¡ bfhŸS« fhy msî v¤jid eh£fŸ? (a) 15 eh£fS¡F« Fiwthf ❒ (b) 15-30 eh£fŸ ❒ (c) 30-45 eh£fŸ ❒ (d) 45-60 eh£fŸ ❒ (e) 60 eh£fS¡F« nkš ❒ 26. Kidk gz¤ij brY¤j jh§fŸ gÇªJiu brŒí« Kiw (a) r«gs nrÄ¥ò trâfŸ ❒ (b) tUl ãßÄa¤ bjhif ❒ (c) fhyh©L¡F xUKiw Kidk gzkhf ❒ (d) miuah©L¡F xUKiw ãßÄa gzkhf ❒ 27. tho¡ifahs®fË‹ gz¤njhL btFkâ gz« nr®¡f¥gLtij Ú§fŸ mt®fS¡F bjÇÉ¡»Ö®fsh? (a) v¥nghJ« ❒ (b) bghJthf ❒ (c) rhjhuzkhf ❒ (d) mÇjhf ❒ (e) ïšiy ❒

A 36

28. tho¡ifahs®fS¡F j§fshš ÑœfhQ« VjhtJ nkY« áy nritfŸ brŒJ jUtjhf c¤âuthj« mË¡f¥g£ljh? (a) kU¤Jt¡ fh¥Õ£L trâfŸ ❒ (b) K‹gz it¥ò bjhif ❒ (c) fl‹ ❒ (d) kh‰W¤ âwdhËfS¡fhd trâfŸ/e‹ikfŸ ❒ (e) Ég¤J¡fh¥Õ£L e‹ikfŸ ❒ (f) r«gs nrÄ¥ò trâfŸ â£l§fŸ ❒ (g) gÂ XŒî bg‰nwhU¡fhd brY¤jš bjhif ❒ (h) ïstš ghÈáfŸ ❒ (i) ïstš bg©fS¡fhd ghÈáfŸ ❒ (j) tÇÉy¡»‰fhd e‹ikfŸ ❒ 29. c§fŸ tho¡ifahs®fS¡F mt®fË‹ ghÈáia¡ bfh©L VjhtJ fl‹ bg‰W jªâU¡»Ö®fsh? (a) M« ❒ (b) ïšiy ❒ M« vÅš v¤jidKiw gÇªJiu brŒâU¡»Ö®fŸ? (a) xUKiw ❒ (b) ïu©LKiw ❒ (c) _‹WKiw¡F nkš ❒ 30. ghÈáia ãizakhf it¤J fl‹ bgw cjÉ brŒí«nghJ jh§fŸ rªâ¡F« ãu¢ridfŸ v‹bd‹d? (a) É©z¥g§fŸ th§f kW¡f¥gL»wJ ❒ (b) áyeh£fŸ fÊ¤J tUkhW âU¥ã mD¥ò»‹wd® ❒ (c) fl‹ bjhif msit Fiw¤J x¥òjš TWtJ ❒ (d) milahs Étu§fS¡F t‰òW¤J»wJ ❒ (e) f©o¥ghd njitfŸ vd t‰òW¤J»wJ ❒ (f) ó®¤â brŒa¥g£l É©z¥g§fis ju fhiy neu§fËš Fiwªj msî neunk xJ¡»L brŒa¥gL»wJ ❒

A 37

31. k‰w gy ÃiyfËš jh§fŸ vâ®bfhŸS« ãu¢ridfŸ (a) É©z¥g§fŸ brayh¡fÃiy ❒ (b) Kidk gz« tNÈ¤jš Ãiy ❒ (c) É©z¥g got§fŸ brayh¡fÃiy ❒ (d) gz« âU«g bgW« Ãiy ❒ (e) k‰wait ❒

ï. fh¥ÕL r«gªj¥g£l áy bghJthd v©z§fŸ 32. fl‹ bg‰wik¡fhf kiwKf nrit¡f£lz« vL¤J¡ bfhŸtJ g‰¿a fU¤J (a) mâfg£r âU¥â ❒ (b) âU¥â ❒ (c) fU¤J Tw ÉU«gÉšiy ❒ (d) âU¥âÆ‹ik ❒ (e) mâfg£r âU¥âÆ‹ik ❒ 33. ïl®ghJfh¥ò neh¡»š j§fË‹ fU¤J (a) mâfg£r âU¥â ❒ (b) âU¥â ❒ (c) fU¤J Tw ÉU«gÉšiy ❒ (d) âU¥âÆ‹ik ❒ (e) mâfg£r âU¥âÆ‹ik ❒ 34. tÇ¢ rYiffŸ bgWtJ F¿¤J j§fË‹ fU¤J (a) mâfg£r âU¥â ❒ (b) âU¥â ❒ (c) fU¤J Tw ÉU«gÉšiy ❒ (d) âU¥âÆ‹ik ❒ (e) mâfg£r âU¥âÆ‹ik ❒

A 38

35.35.35. nritju« g‰¿a fU¤J¡fŸ ::: (Ä(Ä(Ä. (Ä ...ffff....ffff....ntntntnt....cccc....----Äfî«Äfî« fLikahd fU¤J ntWghL c©L, ff....ffff....ntntntnt....cccc....----fLikahdfLikahd fU¤J ntWghL c©L, xxx-x---x¤J¡bfhŸsÉšiy,x¤J¡bfhŸsÉšiy, ïï....ïïïï....mmmm....ïïïï....----ïJî«ïJî« ïšiy/mJî« ïšiy, xxx.x...bfhbfhbfh....----x¤J¡bfhŸ»nw‹,x¤J¡bfhŸ»nw‹, rrr. r...xxxx....bfhbfhbfh....----rÇahfrÇahf x¤J¡bfhŸ»nw‹, ÄÄÄ.Ä...rrrr....KKKK....xxxx....bfhbfhbfh....----Äfî«Äfî« rÇahd KiwÆš x¤J¡ bfhŸ»nw‹bfhŸ»nw‹)))).... cz®î Ãiy

c c c c

jÅah® Jiw fh¥Õ£L ÃWtd§fŸ tH§F»‹wd. 2. x‰iwKiw jtiz ãßÄa ghÈá k£L« vL¥gj‹ _y« ghÈá fhyhtâahtij jL¡f Koí«. 3. áwªj m«r§fŸ Ãiwªj òâa ghÈáfis tho¡ifahs®fŸ nj®ªbjL¥gj‹ _y«

giHa ghÈáfŸ fhyhtâahtij jL¡f Koí«. 4. Kâ®î bjhifíl‹ x¥ãL«nghJ tho¡ifahsÇl« ïUªJ bgw¥gL« jtiz ãßÄa gz« mâfkhf cŸsJ. 5. k‰iwa nrÄ¥ò tÊfis¡ fh£oY« Fiwªj msî gz« âU«g¥ bgW« fh¥Õ£L ghÈÌfŸ. 6. òâa nrit g‰¿a Étu§fis bjhl®ªj KiwÆš jÅah® fh¥Õ£L Jiw ÃWtd§fŸ tH§F»‹wd. 7. vâ®fhy¤âš áwªj nritfŸ k‰W« ngh£o¤ jahÇ¥òfŸ jÅah® fh¥Õ£L JiwÆš áw¥ghf cŸsJ.

A 39

cz®î Ãiy

c c c c

fÄõ‹ Ãahak‰wjhf cŸsJ. 10. mtut® brašâw‹ rh®ªj C¡f¤bjhif

tH§f¥gL»wJ. 11. ghÈá/â£l Étu§fis Kft® k‰W« É‰gid nkyhs®fS¡F tÊfh£l É‰gid braš elto¡iffis áw¥ghf mika, áwªj ghÈá m¿î k‰W« e‹F gÆ‰á bg‰w nkyhs®fŸ cŸsd®. 12. Kft®fŸ k‰W« É‰gid nkyhs®fŸ rªâ¡F« ãu¢ridfis vâ®bfh©L

rkhË¡f njitahd všyh cjÉfisí« nkyhs®fŸ nk‰bfhŸ»‹wd®. 13. CÊa®fË‹ el¤ij bghU¤jk‰wjhf

ïU¡»wJ. 14. jd¡F e‹ikju¡Toa k‰W« mâf msî fÄõ‹/fÊî bgw¡Toa ghÈá k‰W« â£l§fisna Kft®fŸ k‰W« É‰gid nkyhs®fŸ bfhL¤J É‰gidia nk«gL¤J»‹wd®. 15. áy neu§fËš j§fŸ thÂf¤ij bgU¡f nkyhs®fŸ k‰W« Kft®fŸ k‰w Kft®fS¡F ÉUªJ k‰W« cgrhu bryî brŒJ bfhL¡f nt©oíŸsJ. 16. ÃWtd mik¥ò Ûjhd brašghL k‰W« brašâw‹ Ûjhd fU¤J¡fis

mâfhÇfËl« K‹it¡F«nghJ C¡fkË¡f¥gLtJ ïšiy.

A 40

cz®î Ãiy

c c c c

fU¤J brh‰bwhl®fŸ x x x x t. v© t. v© t. t. v© t. v© t. xbfh xbfh xbfh xbfh rxbfh rxbfh rxbfh rxbfh ffnt ffnt ffnt ffnt ïïmï ïïmï ïïmï ïïmï Äffnt Äffnt Äffnt Äffnt ÄrKxbfh ÄrKxbfh ÄrKxbfh ÄrKxbfh 17. jÅ¤jÅahf x›bthU Kft®fŸ ÛJ« jÅah® fh¥Õ£L ÃWtd§fŸ j‹ áwªj ftd¤ij it¤JŸsJ. 18. fh¥Õ£L JiwÆš jÅahf fh¥Õ£L ÃWtd§fŸ j§fŸ nritfis nk«gL¤âíŸsJ. 19. Mu«g¤âš ghÈáfis btËÆ£L tH§Ftâš ïUªJ Kothf fh¥Õ£L nfhÇ¡iffŸ Ûjhd gz« brY¤Jjš tiu Éiuthd MtzKiwah¡f« k‰W« brašghLfŸ cŸsd. 20. tho¡ifahs®fS¡fhd kU¤Jt gÇnrhjid braš Kiwahf rÇahf brŒa¥gL»wJ. 21. Kft®fŸ j§fŸ thÂf É‰gidia ÉÇth¡f ÃWtd És«gu§fŸ Äfî« cjÉ òÇ»‹wd. 22. És«gu jftš bjhl®ghdJ áwªj És«gu fU¤J mik¥ghfî«, òÇí«goahd És«gu bkhÊ, ft®¢áfukhd k‰W« cgnahfkhd És«gu jftš mik¥ò cŸsJ. 23. tho¡ifahs®fS¡F nrit brŒa fÂÅkakh¡fš, mid¤J brašfisí«

ïiza tÊah¡Fjš ngh‹w bjhÊšE£g trâfŸ âw«gl nk«gL¤j¥g£LŸsJ. 24. fÂÅkakh¡f¥g£l jftš bjhl®òKiw áwªj k‰W« JÇj cldoahd nritfŸ

brŒa Kft®fŸ k‰W« É‰gid nkyhs®fS¡F bgÇJ« cjÉòÇ»‹wd. 25. Kft®fŸ k‰W« É‰gid nkyhs®fË‹ FiwghLfis Ãt®¤â brŒí«Kiw bray‰wjhf cŸsJ.

A 41

cz®î Ãiy

c c c c

òÇªJ bfhŸs ò¤jh¡f gÆ‰á tF¥òfŸ, gÆ‰á Ãfœ¢áfŸ bjhl®ªj KiwÆš tH§f¥g£L tU»‹wd. 27. tho¡ifahs®fËlÄUªJ bgw¥gL« fU¤J m£ilfŸ jÅahf fh¥Õ£L ÃWtd§fË‹

Ãiyahd nritfS¡F k‰W« ts®¢á¡F rÇahf ga‹gL¤j¥gLtâšiy. 28. mâfmsî É‰gid brŒtij fh£oY« áwªj nritfis brŒant jÅah®

fh¥Õ£L ÃWtd§fŸ K¡»a¤Jt« mË¡»‹wJ. 29. rªijÆš Äf¤âwDl‹ ngh£oÆ£L j‹ âwid tY¥gL¤j jÅah® Jiw

fh¥Õ£L ÃWtd¤â‰F bghUË‹ ju« Äf K¡»a g§F t»¡»‹wJ. 30. fh¥Õ£L ÃWtd« brašgL« eh£fŸ k‰W« gÂòÇí« neu§fŸ Kft®fŸ

k‰W« É‰gid nkyhs®fS¡F rhjfkhf cŸsJ. 31. ruhrÇ ãßÄa tUkhd¤ij T£lî« áwªj nritfŸ òÇaî« áwªj ml¡fÉiy

»is mYtyf§fŸ mikªJŸsd. 33. »is mYtyf§fËš thfd« ÃW¤JÄl« trâ ïšyhj mbrsfÇakhd ÃiyÆš cŸsJ. 34. fÊ¥giw trâfŸ k‰W« Foj©Ù® trâfŸ »is mYtyf§fËš Kiwahf brašgL¤j¥glÉšiy.

A 42

cz®î Ãiy

c c c c

fU¤J brh‰bwhl®fŸ x x x x t. v© t. v© t. t. v© t. v© t. xbfh xbfh xbfh xbfh rxbfh rxbfh rxbfh rxbfh ffnt ffnt ffnt ffnt ïïmï ïïmï ïïmï ïïmï Äffnt Äffnt Äffnt Äffnt ÄrKxbfh ÄrKxbfh ÄrKxbfh ÄrKxbfh 35. Kft®fŸ j§fŸ mYtyf mâfhÇfËl« ngá fyªJiuahLtj‰F Kft®fË‹ njit¡nf‰w tifÆš mYtyf f£ol mik¥òfŸ k‰W« ïU¡if trâfŸ cŸsd. 36. e‹bd¿ k‰W« áwªj el¤ij Kiwfis jÅah® fh¥Õ£L ÃWtd« C¡FÉ¡»‹wJ. 37. jÅah®Jiw fh¥Õ£L ÃWtd« Kft®fŸ k‰W« É‰gid nkyhs®fË‹ áwªj brašâw‹ ts®¢á¡F áw¥ò É‰gid

c¤âfŸ k‰W« eåd É‰gid c¤âfŸ r«gªj¥g£l gÆ‰áfS¡F V‰ghL brŒJ bfhL¡f nt©L«. 38. jÅah® Jiw fh¥Õ£L ÃWtd« bghU£fis rªij¥gL¤Jjš c¤âfis âw«go brašgL¤j »is msÉš

Kft®fŸ k‰W« É‰gid nkyhs®fS¡F m›t¥nghJ ò¤jh¡f go¥ò gÆ‰áfS¡F V‰ghL brŒa nt©L«. 39. fh¥Õ£L ãßÄa¤ bjhif brY¤Jtj‰F«, Ä‹dQ Ô®î _y« fz¡Ffis KGikahf Ko¡fî« tho¡ifahs® t§» fz¡»š ïUªJ neuoahf g‰W brŒaî« gz¤ij brY¤j áwªj

36. nkY« VjhtJ : ......