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Satisfaction is defined as . . .

A persons feeling of pleasure or disappointment resulting from comparing a products

perceived performance (or outcome) in relation to his or her expectations.
Customer Satisfaction can be defined as supplying or gratifying all wants or wishes,
fulfilling conditions or desires, or the state of the mind anything that makes a customer feel
pleased or contented.

Consumer Behavior:
Consumer behavior is defined as the behavior that consumers display in searching for,
purchasing, using, evaluating and disposing of products and services that they expect will
satisfy their needs.
The study of the processes involved when individuals or groups select, purchase, use, or
dispose of products, services ideas, or experiences to satisfy needs and desires

Customer value: The ratio between the customerss perceived benefits (economic, functional
and psychological) and the resources (momentary, time, effort, psychological) used to obtain
those benefits.


Customer satisfaction: Customer satisfaction is the individuals perception of the

performance of the product or service in relation to his or her expectations.

Motivation: The processes that account for an individuals intensity, direction, and
persistence of effort toward attaining a goal.

Personality can be described ad the psychological characteristics that both determine and
reflect how person responds to his or her environment.

Perception is defined as the process by which an individual selects, organizes, and interprets
stimuli into a meaningful and coherent picture of the world.

Consumer learning is the process by which individuals acquire the purchase and
consumption knowledge and experience they apply to future related behavior.


The consumer adoption process is the process by which customers learn about new products,
try them, and adopt or reject them. Today many marketers are targeting heavy users and early
adopters of new products recognizing that specific media can reach both groups and tend to be
opinion leaders. The consumer adoption process is influenced by many factors beyond the
marketers control, including consumers and organizations willingness to try new products,
personal influences and the characteristics of the new products or innovations



An innovation refers to any good, service, or idea. That is perceived by someone as new. The
idea may have long history, but it is an innovation to the person who sees it as new. Innovation
takes time to spread through the special system. The consumer adoption process focuses on
the mental process through which an individual passes from first hearing about an innovation
to final adoption. Adopters of new products have moved through the following five stages.

1. AWARENESS: The consumer becomes aware of the innovation but lacks information
about it.
2. INTEREST: The consumer is stimulated to see the information about the innovation.
3. EVALUATION: The Consumer considers whether to try the innovation or not.
4. TRIAL: The consumer tries the innovation to improve his estimate of its value.
5. ADOPTION: The consumer decides to make full and regular use of the innovation.



For every problem there is a research. As all the researches are based on some and
my study is also based upon some objective and these are as follows.
1. To understand the insurance business and products of LIClife insurance co ltd. & Bajaj
Allianze Life Insurance Co. Ltd.
2. To find out the peoples perception about life insurance.
3. To find out whether people were really aware of life insurance.
4. To find out how people think about private life insurance.
5. To find out what respondents expect from life insurance.
6. To understand Consumer buying behavior
7. To come out with conclusion and suggestions based on the analysis and the
Interpretation of data.



Every day we wake up to the fact that more than 220 million lives are part of our family called
We are humbled by the magnitude of the responsibility we carry and realise that the lives that
are associated with us are very valuable indeed.
Although this journey started five decades ago, we are still conscious of the fact that, while
insurance may be a business for us, being part of millions of lives every day for the past 52






52 Years Of Trust
Thy Name Is LIC


The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessmen today to secure themselves against loss and disaster existed in
primitive men also. They too sought to avert the evil consequences of fire and flood and loss
of life and were willing to make some sort of sacrifice in order to achieve security. Though the
concept of insurance is largely a development of the recent past, particularly after the
industrial era past few centuries yet its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on


Indian Soil. All the insurance companies established during that period were brought up with
the purpose of looking after the needs of European community and Indian natives were not
being insured by these companies. However, later with the efforts of eminent people like Babu
Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian
lives were being treated as sub-standard lives and heavy extra premiums were being charged
on them.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started
its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.


1956: 245 Indian and foreign insurers and provident societies are taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National







Ltd. GIC incorporated as a company.










Members On The Board Of The Corporation

Shri. T.S. Vijayan (Chairman)

Shri. D.K. Mehrotra (Managing Director - LIC)

Shri. Thomas Mathew T. (Managing Director - LIC)

Shri. A.K. Dasgupta (Managing Director - LIC)

Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India)

Shri. G.C. Chaturvedi (Additional Secretary, Department of Financial Services,
Ministry of Finance, Govt. of India.)
Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)
Shri. T.C. Venkat Subramanian (Chairman & Managing Director. Export Import
Bank of India)

Dr. Sooranad Rajashekhran


Shri. Monis R. Kidwai


The Operations department oils the work processes between the customer and the company to
ensure consistent and quality service to the customer. To streamline the operations, the
Operations department interfaces between the clients and the agents, the branches and the
underwriters, and manages work processes.
The Vision at Customer Service is to deliver World Class Service at every opportunity. Units
such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution
Unit are all committed to providing effective solutions to over lakhs of customers across the

Information Technology

The Information Technology function at LICis committed to enable business through the use
of technology. It is segmented into 4 groups to enable highest levels of delivery to the
customers: Life Asia Solutions Group that provides flexibility in designing better product
offerings to end-users, the Solutions Group- Web that provides real-time information to
customers and is responsible for customer relationship management, IT Architecture &
Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT
architecture for the enterprise as a whole. This team works as an in house R&D Solution
Group, exploring new technological initiatives and also caters to information needs of


corporate functions in the organization. IT Infrastructure group is responsible for providing

hardware, software, network services to the whole organization. This group runs the 'Digital
Nervous System' of the Enterprise at the highest levels of efficiency and provide robust,
scalable and highly available platform for deployment of business application.


The Marketing function at ICICI Pru covers an array of activities - brand and media
management, channel support, direct marketing and corporate communications. The Brand
and Communications team is in charge of advertising, consumer research, media planning &
buying and Public Relations; that helps develop and nurture ICICI Prudential's corporate
identity while effectively communicating its varied product offerings to the customer. Channel
marketing provides support to the sales force by streamlining the design and development of
collaterals and sales tools across distribution channels. The Direct marketing team was set up
to generate high quality leads for profitable business. The team achieves this through target
database acquisition and communicating customized product information through e-mailers,
telemarketing and innovative direct mailers.

Finance function in LICis committed to create an infrastructure that is aligned to shareholder
expectations. Finance basically comprises of four functions. . Corporate Planning and MIS
provide feedback on business strategies. This includes driving the budgeting process,
providing strategic inputs for decision-making and management reporting and analysis. The


Accounts function includes preparation and maintenance of financial records, funds

management, and expense processing and treasury operations. Compliance ensures that every
action is within the regulatory framework. This includes reviewing compliance requirements
and supporting the ethical framework of ICICI Pru life. Internal audit provides assurance to
the management over the organizations' control framework and includes process risk
management, information security assessment and business continuity assessment.

Human Resource
The people strategy of LICis To build a committed team with a culture of innovation,
learning and growth. The Human Resource Function at LICdrives the people strategy of the
business. With its initial focus on operational excellence to deliver benefits and services to
staff members, HR is now committed to building capability through state of the art processes.
A robust performance management system, compensation system and a segmented training
architecture enable it to deliver value to the organization.

Business Excellence
The Business Excellence function is committed to building a quality mindset across the
organization. LICis the first organization in the Insurance Industry that has adopted the Six
Sigma Methodology for process efficiency and measurement. The team is also driving the
Malcolm Baldrige framework across the organization, an intervention that examines
management of key inputs for Business Excellence.


One of the most significant advances in the financial services sector over the past couple
of years has been the growth of Bancassurance which, in simplest terms, means the
distribution of insurance products through a banks distribution channels. In other words,
Bancassurance is a service which can fulfill both banking and insurance needs at the same
Bancassurance as a concept first began in India with the opening up of the insurance
industry to private sector participation in December 1999 which saw the entry of 20 new
players - with 12 in the life insurance sector and 8 in the non-life sector. Bancassurance
has also seen significant rise in other Asian markets. For example, Bancassurance
accounted for 24% of new life insurance sales by weighted premium income in
Singapore in 2002. This is a significant increase on the equivalent 2001 statistic of 15%
and is as a result of growth in significant bank-centric Bancassurance operations.

Although the concept of Bancassurance looks simple enough, it is far from that in real life
practice. Legislative differences, consumer behavior, impact of history and culture,
product complexity, employee work culture and many such other factors have contributed
to significant differences in results across countries. For example, in France and Spain
60% to 80% of life insurance products are sold through bank branches compared to 10%
in UK and USA.



Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance
Company and Bajaj Finserv. (recently demerged from Bajaj Auto.)
Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers
in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE
has over 115 years of financial experience and is present in over 70 countries around the
At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business
philosophy is to ensure excellent insurance and investment solutions by offering customized
products, supported by the best technology.
It started in 2001.

Financial services arm's profit rises to Rs 42 crore


BS Reporter / Mumbai July 16, 2009, 0:40 IST

Bajaj Finserv, the financial services arm of the Bajaj Group, posted a net profit of Rs 42 crore
for the quarter ended June 30, 2009. It had posted a loss of Rs 36 crore in the corresponding
period last year.

The groups life insurance arm, Bajaj Allianz Life Insurance Company, was the biggest
contributor to the firms income. Bajaj Allianz has posted a profit of Rs 68 crore in the June
quarter. In the year-ago quarter, it had posted a loss of Rs 3 crore.
Gross written premium for the quarter rose 40 per cent to Rs 2,001 crore as against Rs 1,847
crore in the corresponding period last year. Renewal premium, too, increased to Rs 1,423
crore as against Rs 1,018 crore in the quarter ended June 30, 2008. However, new business
premium fell 42.28 per cent to Rs 577 crore.
Allianz Group is one of the world's leading insurers and financial services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000
employees. At the top of the international group is the holding company, Allianz AG, with its
head office in Munich.
Allianz Group provides its more than 60 million customers worldwide with a comprehensive
range of services in the areas of

Property and Casualty Insurance,

Life and Health Insurance,


Asset Management and Banking.


Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 crore.

3rd largest Assets under Management (AUM) & largest amongst Insurance cos. AUM of Rs.51, 96,959 crore.

12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

70 countries, 173,750 employees worldwide

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest
manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous
with quality & customer focus.

One of the largest 2 & 3 wheeler manufacturer in the world

21 million+ vehicles on the roads across the globe

Managing funds of over Rs 4000 cr.

Bajaj Auto finance one of the largest auto finance cos. in India

Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03


It has joined hands with Allianz to provide the Indian consumers with a distinct option
in terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following
to offer -

Financial strength and stability to support the Insurance Business.

A strong brand-equity.

A good market reputation as a world class organization.

An extensive distribution network.

Adequate experience of running a large organization.

Accelerated Growth
Fiscal Year
2001-2002(6 months)

No. of policies sold


New Business in FY
7 cr.
Rs. 63.3 cr.
Rs. 180 cr.
Rs. 857 cr.
Rs. 2,717 cr.
Rs. 4,302 cr.
Rs. 6,674 cr.

Mission of the company

India has 102 crore population but only 16 crore people are insured till now. Still 86 crore


People are yet to be insured. Also in broader perspective, company wants to make every
person get benefited through investing in Bajaj Allianz Life Insurance.
The Company is focusing on improving employee productivity, policy persistency, operational
processes and service levels.
Vision of the Company
1) To be the first choice insurer for customers.
2) To be the preferred employer for staff in Insurance industry.

3) To be the number one insurer for creating shareholder value

4) To aspire to be a world class organization.
5) To encourage organizational transparency.
6) To value integrity.
Bajaj Allianz Life Insurance Co. a joint venture between two leading conglomeratesAllianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest
2 and 3 wheeler manufacturers in the world. Characterized by global presence with a local
focus and driven by customer orientation to establish high earnings potential and financial
strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. The
company received the Insurance Regulatory and Development Authority (IRDA) certificate of
Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India.
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest
manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous


with quality & customer focus. With over 15,000 employees, the company is a Rs. 4000 crore
auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th largest in the world.
AAA rated by Crisil, Bajaj Auto has been in operation for over 55 years. It has joined hands
with Allianz to provide the Indian consumers with a distinct option in terms of life insurance

Mr. Rahul Bajaj (Chairman)
Dr. Werner Zedelius
Mr. Sanjay Asher
Mr. Niraj Bajaj
Mr. Sanjiv Bajaj
Mr. Heinz Dollberg
Mr. Ranjit Gupta
Mr. S. H. Khan
Mr. Suraj Mehta
Mr. Dietmar Raich
Mr. Manu Tandon
Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)



Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
The word research has been derived from French word Researcher means to search.
FRANCIES RUMMER defined Research: It is a careful inquiry or examination to
discover new information or relationship and to expand or verify existing
knowledge.Research is the solution of the problem, whether created or already
generated. When research is done, some new out come, so that the problem (created or
generated) to be solved.
Research Design is the conceptual structure within which research is conducted. It
constitutes the blueprint for collection, measurement and analysis of data. The design
used for carrying out this research is Descriptive.

DATA TYPE: In this research the type of data collection is

Primary data

Secondary data

DATA SOURCE: The sources of collection of secondary data are:







It is very difficult to collect information from every member of a population .As time
and costs are the major limitation that the researcher faces.

A sample of 100 was taken the sample size of 100 individuals were selected on the
basis of convenient sampling technique. The individuals were selected in the random
manner to form sample and data were collected from them for the research study.


Data collection through questionnaire and personnel interview resulted in availability
of the desired information but these were useless until there were analyzed. Various
steps required for this purpose were editing, coding and tabulating. Tabulating refers
to bringing together similar data and compiling them in an accurate and meaningful
manner. The data collected by questionnaire was analyzed, interpreted with the help of
table, bar chart and pie chart.



3. Age of the respondents

Less than 25
25 - 35
35 - 45
Above 45



From the survey it was found that amongst 100 respondents

11% of the respondents are less than 25 years old.

40% of the respondents are between 25 and 35 years of age.
20% of the respondents are between 35 and 45 years of age.
29% of the respondents are more than 45 years of age.

4. Qualification of the respondents.





Post Graduate
Other discipline



From the survey it was found that amongst 100 respondents

52% of the respondents were graduate

29% of the respondents were post graduate
8% of the respondents were diploma
10% of the respondents were other discipline

5. Occupation of the respondents


Business man
Job holders



From the survey it was found that amongst 100 respondents

34% of the respondents are businessmen.

18% of the respondents are professionals.
37% of the respondents are job holders.
11% of the respondents are background.



On an analysis and evaluation of the data collected from the respondents the following
findings were found.

Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan

65% respondent are prefer LIC Life Insurance Co. & 35% respondent are prefer Bajaj
Allianz Life Insurance Co.

Above 20% of respondents are shown interest for investment and financial plan

About 33.33% of respondents are not interest to give their personal records.

About 12.67% of respondents have already been covered by other insurance


About 10% of respondents have given invalid records.

About 10% of respondents are newly employed or trainees.

About 10% of respondents interested for investment plan after knowing LIC LIFE
INSURANCE products.



Since LIC Life Insurance co. ltd is the largest in terms of FDI invested, in terms of work force,
in terms of market share, in terms of no. of customers. All these positive stands of the
company place at the number one position. On second aspect whatever amount of money
LICsave, can be used to increase the no. of policies, which will helpful to increase the market
share of the company. Since the customers think about the companies in the industry, when
they invest money in the life insurance industry. So its necessary to increase the market share
of the company.



Open some more branches in semi urban and rural area.

LIChas almost its branches in urban area or metros. So in order to increase the no. of
customer, LICshould increase the approach towards potential customers. For that it has
to increase the branches in the semi urban cities like C, D grade cities. And the rural
marketing is the best option for LICto increase its base in the market

Improve customer services.

In order to take the advantage of being industry leader in private sector, LIC has to
improve its customer services. According to my experience in the company, a good
number of customers forget to pay their premium at time so it causes a big loss to the



Following limitations were faced during the study:

1. While designing the questionnaire it was kept in mind to gather more and more
information from each target person. For the neither present nor descriptive questions
could have served the purpose. Therefore the questionnaire contained in the openended questions.
2. The study was conducted in LIC in Dhampur city, which has 60 to 100 insurance
prospects only. The sample size was of 50 insurance care consultants only so that
accuracy of data so collected could be absurd covered by circulation of questionnaire.
3. The accuracy of indications given by the respondents may not be consider adequate as
whether the language used in the questionnaire is understood by the respondent cannot
be taken for granted.
4. The study is based on the information gathered from the insurance care consultants.
Therefore in such case it is possible that the information supplied might be biased
because the insurance care consultant might have shown partiality towards their
insurance policies.
5. Since the survey was limited to 50 insurance prospects it is rather difficult to give a
precise conclusion but I have tried to the best of my capability to give the conclusion
on a comprehensive manner.



Marketing Management by Philip Kotler, Pearson Education 2nd ed.

Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed.

IRDA Journal

LIC Company magazines

Newspaper and Business magazines