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