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1 ABOUT THE INDUSTRY

1.1.1 What is Insurance?

Insurance is a tool by which fatalities of a small number are compensated out of funds
(premium payment) collected from plenteous. Insurance is a safeguard against uncertain events
that may occur in the future.
It is an arrangement where the losses experienced by a few are extended over several who
are exposed to similar risks. It is a protection against financial loss arising on the happening of an
unexpected event. Insurance companies collect premium to provide security for the purpose. Loss
is paid out of the premium collected from people and the insurance companies act as trustees to
the amount so collected. These companies have proposal forms which are filled to give details of
insurance required. Depending upon the answers in the proposal form insurance companies assess
the risk and decide on the premium.

Insurance companies are risk bearers. They underwrite the risk in return for an insurance
premium. the function of insurance is to provide protection, prevent losses, capital formation etc.
hence insurance can be defined as a tool in which a sum of money as a premium is paid by the
insured in consideration of the insurers bearing the risk of paying a large sum .it may also be
defined as a contract wherein one party (insurer) agrees to pay the other party (insured) or his
beneficiary, a certain sum upon a given contingency against which insurance is required.

Insurance industry commands massive funds through sales of insurance products to large
number of clients. Insurers also create liabilities and commit themselves to compensate for losses
occurring to the policyholders on future date. It also plays an important role in process of capital
formation.

1.1.2 Nature of Insurance:

Risk sharing and risk transfer: Insurance is used to share the financial losses that might
occur to an individual or his family on the happening of specified events. The loss arising
from such events are shared by all the insured in the form of premium.
Example: suppose in a village, there are 250 houses, each valued at Rs.200000.Every year
one house gets burnt, resulting into a total loss of Rs 200000.If all the 250 owners come
together and contribute Rs.800 each, the common fund would be Rs200000.This is

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 enough to pay to the owner whose house gets burnt. Thus the risk of one owner is spread
over 250 house owners of the village.
Risk assessment in advance: Insurance companies are risk bearers. They assess the risk
before insuring to charge the amount of premium.
Its not gambling or charity: The uncertainty is changed to certainty by insuring
property and life because the insurer promises to pay a definite sum at damage or death.
Insurance is antithesis of gambling. Failure of insurance amounts to gambling because the
uncertainty of loss is always looming. Moreover insurance is not possible without
premium. So it is different from charity because charity is given without consideration.
Huge number of insured people: It is essential to insure larger number of people or
property to make cost of insurance less consequently premium would also be less.
Assists in capital formation: Insurance provides capital to society. Accumulative funds
are invested in productive channels.

1.1.3 Types of Insurance

Insurance is broadly divided in two segments, based on the nature of insurance, those are:
1. Life Insurance &
2. Non-Life Insurance or General Insurance. It can be again subdivided into the following
categories:
a) Fire Insurance.
b) Marine Insurance.
c) Social Insurance &
d) Miscellaneous Insurance. (Health insurance, Liability Insurance etc.)

1.1.4 Functions of Insurance:

Provide protection: The primary function of insurance is to provide protection against
future risk, accidents and uncertainty. Insurance cannot check the happening of the risk,
but can certainly provide for the losses of risk. Insurance is actually a protection against
economic loss, by sharing the risk with others.

Collective bearing of risk: Insurance is an instrument to share the financial loss of few
among many others. Insurance is a mean by which few losses are shared among larger

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 number of people. All the insured contribute the premiums towards a fund and out of
which the persons exposed to a particular risk is paid.
Assessment of risk: Insurance determines the probable volume of risk by evaluating
various factors that give rise to risk. Risk is the basis for determining the premium rate
also.
Provide certainty: Insurance is a device, which helps to change from uncertainty to
certainty. Insurance is device whereby the uncertain risks may be made more certain.
Small capital to cover larger risk: Insurance relieves the businessmen from security
investments, by paying small amount of premium against larger risks and uncertainty.
Contributes towards the development of industries: Insurance provides development
opportunity to those larger industries having more risks in their setting up. Even the
financial institutions may be prepared to give credit to sick industrial units which have
insured their assets including plant and machinery.
Means of savings and investment: Insurance serves as savings and investment,
insurance is a compulsory way of savings and it restricts the unnecessary expenses by the
insured's For the purpose of availing income-tax exemptions also, people invest in
insurance.
Source of earning foreign exchange: Insurance is an international business. The country
can earn foreign exchange by way of issue of marine insurance policies and various other
ways.
Risk free trade: Insurance promotes exports insurance, which makes the foreign trade
risk free with the help of different types of policies under marine insurance cover.

1.1.5 Life Insurance

After the entry of new players and increase in the penetration levels, could see the insurance
sector cross the Rs 2,00,000-core mark in business by 2010.The current size of the sector is
estimated to be at Rs 50,000 crore, which has seen a compound annual growth rate (CAGR) of
around 175 percent in the last few years.
The insurance sector, both life and non-life, is likely to grow by over 200 percent, and private
insurers are expected to achieve a growth rate of 140 percent as a result of aggressive marketing
technique. It added that state owned insurance companies are likely to be 35-40 percent.

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On account of intense marketing strategies adopted by the private insurance players, the market
share of state-owned insurance companies like GIC, LIC and others has come down to 70 percent
in last 4-5 years from over 97 percent. Despite regulation, the private players are offering 35
percent rate of return to is policy holders against 20 percent by public-sector insurers.

The industry body also noted that Indias life insurance premium is 1.8 percent as a percentage of
GDP whereas it is 5.2 percent in the US, 6.5 percent in the South Korea.

The services sector offers immense opportunities for expansion opportunities for expansion
opportunities and the rural market, also, offers tremendous growth opportunities for insurance
companies.

1.1.6 Role of Life Insurance

Life insurance as an investment: Insurance products yield more than any other
investment instruments and it also provides added incentives or bonus offered by
insurance companies.
Life insurance as risk cover: Insurance is all about risk cover and protection of life.
Insurance provides a unique sense of security that no other forms of invest can provide.

Life insurance as tax planning: Insurance serves as an excellent tax saving mechanism
too.

1.1.7 Importance of Life Insurance

Protection against untimely death: Life insurance provides protection to the dependents
of the life insured and the family of the assured in case of his untimely death. The
dependents or family members get a fixed sum of money in case of death of the assured.
Saving for old age: After retirement the earning capacity of a person reduces. Life
insurance enables a person to enjoy peace of mind and a sense of security in his/her mind.
Promotion of savings: Life insurance encourages people to save money compulsorily.
When life policy is taken, the assured is to pay premiums regularly to keep the policy in
force and he cannot get back the premiums, only surrender value can be returned to him.
In case of surrender of policy, the policyholder gets the surrendered value only after the
expiry of duration of the policy.

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 Initiates investments: Life Insurance Corporation encourages and mobilizes the public
savings and canalizes the same in various investments for the economic development of
the country. Life insurance is an important tool for the mobilization and investment of
small savings.
Credit worthiness: Life insurance policy can be used as a security to raise loans. It
improves the credit worthiness of business.
Social Security: Life insurance is important for the society as a whole also. Life
insurance enables a person to provide for education and marriage of children and for
construction of house. It helps a person to make financial base for future.
Tax Benefit: Under the Income Tax Act, premium paid is allowed as a deduction from
the total income under section 80C.

1.1.8 General Insurance

General insurance in India has been expecting growth except in some portfolios like motor
insurance, fire and engineering. These portfolios are still under tariff- this means that premium
depends on a fixed predetermined rate structure.
In India, GDS as a proportion of GDP at current prices increased from 26.1% in 2002-03 to
28.1% in 2003-04.house hold sector continued to be the major contributor to GDS at 24.3% in
2003-04.this can be attributed to soft interest rates prevailing in housing sector. General
Insurance has low market penetration. It is 1.95% and ranks 51st. However in collection of
premium it is ranked 23rd. The ratio of the premium collected to that of GDP is 0.58. The main
reason for the general insurance industry to perform very poorly was because of the slow
settlement of claims. Moreover the rates of claim in India were highest in the world. It was 70
percent compared to 40 percent internationally. This meant that out of 100 people who had
insured their commodities 70 claimed for a loss or damage. The main reason for the lack of
demand for general insurance is that people consider it as an unnecessary expenditure. However
it must be noted that the general insurance has been earning consistent profits and has an efficient
dividend paying record accompanied by a steady growth in its financial resources. The industry is
recognized as one of the largest financial Institutions in the country. Some of the private players
in this sector are- ICICI Lombard, Reliance, Royal-Sundaram, Chholamandalam etc.

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1.2 History of Insurance Industry in India
The insurance industry in India over the past century has gone through big changes. In
India this industry reveals the 360 degree turn. 360 degree turn means that it started in India from
being an open competitive market to nationalization and back to a liberalized market again.
Insurance industry in India started as a fully private system with no restriction on foreign
participation in the Nineteenth Century. Before independence, a few British insurance companies
dominated the Market. Life insurance was first set up in India through a British company called
the Oriental Life Insurance Company in 1818, followed by the Bombay Assurance Company in
1823 and the Madras Equitable Life Insurance Society in 1829.All of these companies operated
in India but did not insure the lives of Indians. They were there insuring the lives of Europeans
living in India. Some of the companies that started later did provide insurance for Indians. But,
they were treated as "substandard" and therefore had to pay an extra premium of 20% or more.
The first company that had policies that could be bought by Indians with "fair value" was the
Bombay Mutual Life Assurance Society starting in 1871.

The first general insurance company, Triton Insurance Company Ltd., was established in
1850. It was owned and operated by the British. The first general insurance company was the
Indian Mercantile Insurance Company Limited set up in Bombay in 1907.By 1938; the insurance
market in India had nearly 176 companies (both life and non-life).

After the independence, the industry went to the other extreme. It became a state-owned
monopoly. The industry started to witness a problem like fraud. Hence many regulations were put
in place to reduce and control the problems in the industry. After which Insurance was
nationalized. In 1956, the then finance minister S. D. Deshmukh announced nationalization of the
life insurance business and then the general insurance business was nationalized in 1972. Only in
1999 private insurance companies have been allowed back into the business of insurance with a
maximum of 26% of foreign holding.

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
functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its
business.

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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 nationalized. 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 (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.

1.3 Insurance Regulatory Development Authority (IRDA):

In 1999, the Insurance Regulatory and Development Authority (IRDA) were constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as
a statutory body in April 2000. The key objectives of the IRDA include promotion of competition
so as to enhance customer satisfaction through increased consumer choice and lower premiums,
while ensuring the financial security of the insurance market. The IRDA opened up the market in

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August 2000 with the invitation for application for registrations. Foreign companies were allowed
ownership of up to 26%. The Authority has the power to frame regulations under Section 114A
of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from
registration of companies for carrying on insurance business to protection of policyholders
interests.

1.3.1 Role of IRDA

Establishing guidelines for the operations of insurers and brokers.
Specifying the code of conduct, qualifications, and training for insurance intermediaries
and agents.
Promoting efficiency in the conduct of insurance business.
Regulating the investment of funds by insurance companies.
Specifying the percentage of business to be written by insurers in rural sectors.
Handling disputes between insurers and insurance intermediaries.

1.4 Insurance Companies in India

IRDA has till now provided registration to 12 private life insurance companies and 9 general
insurance companies. If the existing public sector insurance companies are considered then there
are presently 13 insurance companies in the life side and 13 companies functioning in general
insurance business. General Insurance Corporation has been sanctioned as the "Indian reinsurer"
for underwriting only reinsurance business.
Non-Life Insurance Companies as on 23 August, 2016
1. Agriculture Insurance Co. of India Ltd.
2. Apollo Munich Health Insurance Co. Ltd.
3. Bajaj Allianz General Insurance Co. Ltd.
4. Bharti Axa General Insurance Co. Ltd.
5. Cholamandalam MS General Insurance Co. Ltd.
6. Cigna TTK Health Insurance Co. Ltd.
7. Export Credit Guarantee Corporation of India Ltd.
8. Future Generali India Insurance Co. Ltd.
9. HDFC ERGO General Insurance Co. Ltd.
10. ICICI Lombard General Insurance Co. Ltd.
11. IFFCO Tokio General Insurance Co. Ltd.

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 12. L&T General Insurance Co. Ltd.
13. Liberty Videocon General Insurance Co. Ltd.
14. Magma HDI General Insurance Co. Ltd.
15. Max Bupa Health Insurance Co. Ltd.
16. National Insurance Co. Ltd.
17. The New India Assurance Co. Ltd.
18. The Oriental Insurance Co. Ltd.
19. Raheja QBE General Insurance Co. Ltd.
20. Reliance General Insurance Co. Ltd.
21. Religare Health Insurance Co. Ltd.
22. Royal Sundaram Alliance Insurance Co. Ltd.
23. SBI General Insurance Co. Ltd.
24. Shriram General Insurance Co. Ltd.
25. Star Health and Allied Insurance Co. Ltd.
26. Tata AIG General Insurance Co. Ltd.
27. United India Insurance Co. Ltd.
28. Universal Sompo General Insurance Co. Ltd.
29. Kotak Mahindra General Insurance Co. Ltd.

List of Life Insurance Companies in India

1. Aegon Life Insurance Co. Ltd.
2. Aviva Life Insurance Co. India Ltd.
3. Bajaj Allianz Life Insurance Co. Ltd.
4. Bharti AXA Life Insurance Co. Ltd.
5. Birla Sun Life Insurance Co. Ltd.
6. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
7. DHFL Pramerica Life Insurance Co. Ltd.
8. Edelweiss Tokio Life Insurance Co. Ltd
9. Exide Life Insurance Co. Ltd.
10. Future Generali India Life Insurance Co. Ltd.
11. HDFC Standard Life Insurance Co. Ltd.
12. ICICI Prudential Life Insurance Co. Ltd.
13. IDBI Federal Life Insurance Co. Ltd.
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14. India First Life Insurance Co. Ltd
15. Kotak Mahindra Old Mutual Life Insurance Ltd.
16. Life Insurance Corporation of India
17. Max Life Insurance Co. Ltd.
18. PNB MetLife India Insurance Co. Ltd.
19. Reliance Life Insurance Co. Ltd.
20. Sahara India Life Insurance Co. Ltd.
21. SBI Life Insurance Co. Ltd.
22. Shriram Life Insurance Co. Ltd.
23. Star Union Dai Ichi Life Insurance Co. Ltd.
24. Tata AIA Life Insurance Co. Ltd.

Figure 1.1: Market share of different companies

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Figure 1.2: New Business Premium Total Market Share

Figure 1.3: New Business Premium Private Market Share

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1.5 Semantics
1. Risk: It is defined as an uncertainty of a financial loss. It is the unintentional decline in or
disappearance of value arising from contingency.
2. Policy: It is the document which embodies the insurance contract
3. Whole life policy: It is the policy under which the amount of policy will be paid only on
death of the insured. Premiums may be payable throughout the life or for a limited period.
4. Endowment policy: Endowment policies entitle the insured to receive the amount of the
policy on his reaching a certain age and premiums also stops. If death occurs earlier,
amount of the policy will be paid at that time and payment of premium will also stop at
that time.
5. Claim: It is the amount which an insurer has to pay against a policy.
6. Reinsurance: It refers to placing a part of the risk by an insurer with another insurer. The
object is to reduce the possible loss to be borne by the original insurer, who pays
premiums at the ordinary rates to the reinsurer. Reinsure must pay commission to the
original insurer.
7. Premium: A periodic payment made on an insurance policy.
8. Insurance penetration: It is defined as insurance premium as a share of gross domestic
product.
9. Insurance density: Insurance density is defined as per capita expenditure on insurance
premium i.e. premium per capita.
10. Actuary: The actuary is a specialist who combines an understanding of risks and
mathematical technique to develop financial products to manage these risks, price these
products. He helps in designing insurance plans and then evaluates the financial risk of
the company which it takes while selling an insurance policy.
11. Marketing: Marketing is a social and managerial process by which individuals and group
obtain what they need and want through creating, offering and exchanging products of
value with others.
12. Marketing Management: Marketing Management is the process of planning and
executing the conception, pricing, promotion and distribution of individual and
organizational goals.

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1.6 About the Company
SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of France.
SBI Life Insurance is registered with an authorized capital of Rs 1000 core and a paid up capital
of Rs 350 crore. SBI owns 74% of the total capital and Cardiff the remaining 26% State Bank of
India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group
has the unrivalled strength of over 14,000 branches across the country, the largest in the world.
Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zones leading Bank.
BNP is one of the oldest foreign banks with a presence in India dating back to 1860. It has 9
branches in the metros and other major towns in the country. Cardif is a vibrant insurance
company specializing in personal lines such as long-term savings, protection products and
creditor insurance. Cardif has also been a pioneer in the art of selling insurance products through
commercial banks in France and 29 more countries. SBI Life Insurances mission is to emerge as
the leading company offering a comprehensive range of Life Insurance and pension products at
competitive prices, ensuring high standards of customer service and world class operating
efficiency. The company plans to make the insurance buying process quick, simple and based on
well-informed judgment. In 2004, SBI Life Insurance became the first company amongst private
insurance players to cover 30 lacks lives. The company expects to carve a niche in the Indian
insurance market through extensive product innovation and aims to provide the highest standards
of customer service through a technological interface. To facilitate this, call centers have been
already installed and help lines will be installed and customers will have access to their accounts
through the Internet or through SBI branches. The company proposes to make available ready
liquidity to its Life Insurance policies by way of loans at SBI counters. This will make Life
Insurance a liquid asset in the financial portfolio of households. SBI Life Insurance is uniquely
placed as a pioneer to usher bank assurance into India. The company hopes to extensively utilize
the SBI Group as a platform for cross-selling insurance products along with its numerous banking
product packages such as housing loans, personal loans and credit cards. SBIs access to over 100
million accounts provides a vibrant base to build insurance selling across every region and
economic strata in the country.

Vision
To be the most trusted and preferred life insurance provider.

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Mission
"To emerge as the leading company offering a comprehensive range of life insurance and pension
products at competitive prices, ensuring high standards of customer satisfaction and world class
operating efficiency, and become a model life insurance company in India in the post
liberalization period".

Values
Trustworthiness
Ambition
Innovation
Dynamism
Excellence

1.7.1 Group Corporate

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products
along with its numerous banking product packages such as housing loans and personal loans.
SBIs access to over 100 million accounts across the country provides a vibrant base for
insurance penetration across every region and economic strata in the country ensuring true
financial inclusion.

1.7.2 Distribution channels of SBI Life Insurance

SBI Life

Credit Corporate
Bancassurance Agency
Life Group

Insurance Corporate
Brokers
Agents Agents

Figure 1.4: Distribution channels of SBI Life Insurance

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Insurance Agents:
Insurance agents are those individual persons who work for one particular insurance company.
An insurance agent cannot work for more than one particular at one point of time.
Corporate Group:
Targeting Corporate for Gratuity and Group Pension products.
Agency Channel:
Agency channel have the most productive and active force of more than 25,000 Advisor. Our
approach is to provide door-to-door need-based insurance solution to customers after taking into
account protection and wealth creation needs. Agency channel has grown more than 300% over
the last year and contributed more than 45% to the companys new business premium collection.

1.7 Product & Market

1. SBI Life Insurance Unit Linked Plans:
Unit linked plans are meant for those people who want to invest in life insurance but still have a
bit of an appetite for risks on investments. These plans use a part of the premium to provide
insurance cover while the remainder is invested in the market. The plans offered under this
scheme are:
SBI Life Smart Wealth Builder: This is a non-participating unit linked life insurance
plan that has been designed to make sure that you can invest as much as you can afford
and still manage to watch your wealth grow. The design of the scheme offers
policyholders the flexibility to decide their premiums, the policy tenure and even the
mode of payment of premiums.
SBI Life Smart Wealth Assure: This too is a non-participating ULIP which offers
investors the advantages of a life insurance policy and an opportunity to invest in the
markets via various funds to help their wealth grow. It is a single premium payment
scheme that allows for partial withdrawals that can be used to meet financial obligations
that may arise at a later stage.
SBI Life Saral Maha Anand: The Saral Maha Anand scheme is a unit linked, non-
participating life insurance plan which allows you to invest in accordance with your
appetite for risk. It even lets you decide how much insurance you want to cover yourself
which is subject to certain min and max amounts.
SBI Life Smart Scholar: This is a ULIP that is aimed at those who want to make sure
that the needs of their families are taken care of even if they are not around. It offers the
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 beneficiary the benefit of the payment of the sum assured under the policy and a waiver of
premiums so that policy remains in force even in the unfortunate event of the death of the
policyholder.
SBI Life Smart Elite: This is unit linked policy that offers life insurance cover of 7 to 10
times the annual premium paid. It also allows for premiums to be paid under the single
pay scheme. The benefits of this policy include the option to increase or decrease the
insurance cover and cover for accidental death or accidental total permanent disability.
SBI Life Smart Power Insurance: This ULIP offers investors life insurance cover and
investment opportunities at affordable premiums. It also offers liquidity options by letting
investors make partial withdrawals and a choice between a level cover or an increasing
cover scheme.
2. SBI Life Insurance Child Plans:
If you have children then there is no doubt that you have thought about their future and how you
can provide for them in the unfortunate event that you are not around. To address such concerns
the following plans are offered
SBI Life Smart Champ Insurance: This is a life insurance policy that can be taken to
make sure that the future of your child is secured against all eventualities. This plan offers
investors benefits like lump sum payments in 4 installments once your child attains the
age of 18 years, waiver of premiums and the opportunity to pay the premium in one go.
SBI Life Smart Scholar: This insurance plan offers a double death benefit of the
payment of the sum assured and a waiver of the remaining premiums. It also offers
accidental death and total permanent disability benefits along with partial withdrawal
benefits.
3. SBI Life Insurance Pension Plans:
The fact of life is that you are not going to be working for the rest of your life. So what happens
to your income when you do stop working? The best way to answer that question is to go in for
pension plans like:
SBI Life Saral Pension: Its never too late to put something aside for retirement and that
is why this plan offers investors guaranteed simple reversionary bonuses, maturity bonus
which is the sum assured plus the simple reversionary bonus plus terminal bonus if any.
This plan can also be associated with various riders that help enhance the life insurance
cover provided.

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 SBI Life Retire Smart: This is a non-participating unit linked pension plan that invests
your money into various funds and guarantees a minimum return of 101% of all
premiums paid. It also offers boosted fund value through additions of up to 210% of the
annual premium paid subject to certain conditions.
SBI Life Annuity Plus: The Annuity Plus is a non-participating immediate annuity plan
that offers the insured a regular income from the age of 40 years with the option to choose
the frequency of annuity payouts. This plan can also be enhanced by purchasing the
accidental death rider. The plan also offers a return of premium or a return of balance
premium options.
4. SBI Life Term Insurance Plans:
Protection plans can be term plans that make sure that, even if you are not there anymore, your
familys financial future is secure. The protection plans offered by SBI are:
SBI Life Smart Shield: This is a term plan that offers a large sum assured for a nominal
premium. It can also be coupled with various rides that enhance the cover this plan
provides. It also includes rewards for leading a healthy life. The plan can also be taken as
level or increasing term assurance or decreasing term assurance to secure a loan you may
have taken.
SBI Life Saral Shield: This is a traditional term insurance plan that can be taken to
ensure that in the unfortunate event of your death, your family is well taken care of. This
plan features single premium payment and regular payment options and can be enhanced
by the addition of certain riders.
SBI Life eShield: This is a non-linked and non-participating term plan that has, as its
main feature, the option to purchase the online. It too offers rewards for leading a healthy
life and accidental death benefits. It is a plan that will offer your family financial security
for premiums that are very affordable. This plan is offering 1 crore life cover.
SBI Life Grameen Bima: This is an individual, micro insurance term plan that is meant
to provide the financially weaker segments of society with an opportunity to secure
themselves against tough times. This insurance plan does not require health checkups and
offers an insurance cover that can be as high as 60 times the total premium paid.

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5. SBI Life Endowment Plans: A savings plan is a life insurance plan that can offer you a
double advantage. Not only does such a plan provide you with a life cover but it also
provides a regular inflow of funds. The plans on offer under this scheme are:
SBI Life Smart Income Protect: This is an insurance plan that offers two benefits to the
insured. The first is that they are provided with a life insurance cover and the second is
that they get the benefit of a regular income. The policy also offers reversionary and
terminal bonuses along with a guaranteed payouts of 11% of the sum assured for 15 years
after the policy matures.
SBI Life Smart Guaranteed Savings Plan: This is a non-participating savings plan that
offers guaranteed additions that are calculated at a rate of 5.5% to 6% and are applied to
the cumulative basic premiums that have been paid. They also offer the option to pay
premiums only for 7 years.
SBI Life Smart Money Back Gold: This traditional money back plan offers the
advantages of a life insurance policy with an income coming in at regular intervals. The
insurance cover under this scheme can be enhanced using a wide range of riders available
for this plan.
SBI Life Shubh Nivesh: This scheme is a non-linked profit endowment assurance plan
that offers the flexibility to turn this policy into a whole life insurance policy. It also
offers benefits like a choice between single premium payment or regular premium
payment options and options to receive the basic sum assured over a period of time.
SBI Life - Smart Humsafar: A joint life insurance plan with savings options where a
person and his/her spouse can be covered under a single policy. With death benefits, this
plan also offers maturity benefits in case either or both partners survive till the policy
period.
SBI Life - Smart Money Planner: A limited premium paying individual non linked plan
that offers profit endowment and guaranteed cash inflows at regular intervals which also
doubles up as a life cover in case of the unfortunate event of the demise of the life insured
with tax benefits as per the Income Tax Act of 1961.
SBI Life - CSC Saral Sanchay: Offered through the Common Service Centre Network
under the National eGovernance Plan of India, this is a non-linked, non -participating,
variable insurance plan that offers an option of savings too, along with a death benefit that
would be paid in case of the unfortunate demise of the life insured.

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 SBI Life - Saral Swadhan Plus: A non-linked, non-participating term assurance plan
meant for individuals that provides life cover for a period of 10 years or 15 years and
gives a higher return on investment upon survival of the life insured till the maturity
period. The premiums and benefits under this plan are eligible for tax benefits.
SBI Life - Flexi Smart Plus: An individual, participating variable insurance product that
can be custom-tailored to change as per the customers needs. It offers a host of bonuses
on the maturity value as well as a death benefit as per the Gold or Platinum option.
6. SBI Life Group Plans:
SBI offers various corporate solutions for the statutory and voluntary needs of employers.
It also helps an organization retain and reward its employees with attractive benefits.
a) Retirement Solutions
SBI Life Insurance Group Retirement Plans help provide financial stability and protection to the
employees family.
SBI Life Kalyan ULIP plus: A fund based group insurance plan. The benefits offered by
this plan can be obtained by the master policy holder as well as by each member of the
group.
SBI Life CapAssure Gold: Offered only to employer/ employee groups i.e. to the
employers/ state government/ central government who want SBI Life to manage their
employees gratuity, leave encashment and superannuation benefit schemes.
SBI Life Swarna Jeevan: The SBI Life Swarna Jeevan provides higher annuity rates.
SBI Life Gaurav Jeevan: The SBI Life Gaurav Jeevan is provided for central
government/ state government and government agencies who wish to purchase their
existing or emerging in respect to annuity payments for compensation to landowners
whose lands are being taken.
SBI Life - Pradhan Mantri Jeevan Jyoti Bima Yojana: As per the Pradhan Mantri
Jeevan Jyoti Yojana, this non-linked, non-participating plan is an annually renewable
group term insurance that provides a death benefit of Rs. 2,00,000 at an annual premium
of Rs. 330 only. No medical examinations are required for getting enrolled in the plan.
b) Group Protection Plans SBI Life Group Protection Plans help secure an employees
familys financial future in the event of the unfortunate circumstance of death.
SBI Life Sampoorn Suraksha: A group term insurance plan that can be renewed. It
offers excellent protection at affordable rates.

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 SBI Life Suraksha Plus: A group insurance scheme like company employers or
government institution.
c) Group Micro Insurance Plans
SBI Life Group Micro Insurance Plans are for customers with small savings and low household
income.
SBI Life Grameen Shakti: A plan to provide life insurance to the
underprivileged sections of the society.
SBI life Grameen Super Suraksha: This is for the rural section and for the
underprivileged parts of the society who opt for life insurance protection without
maturity benefit.

Group Loan Protection Products

These are affordable plans that help share the burden of your liabilities.
SBI Life RiNn Raksha: SBI Life RiNn Raksha plan assures that you get to enjoy
the simple joys of life like taking a vacation overseas with the family, buying a
dream car, building a house without having to worry about liabilities.

1.8 Process of Insurance Operation

A Without prejudice to the other express terms and conditions of this Agreement and all and any
implied rights of SBI Life Insurance after the termination of this Agreement, the Advisor shall
not:
Use for his own benefit or the benefit of any other person; or
Disclose to any person;
Through any failure to exercise all due care and diligence, cause or permit any
unauthorized disclosure of any trade secrets or confidential information of or relating to
SBI Life Life Insurance which he may have received, used or obtained during the term of
this Agreement. Any such trade secrets and confidential information shall at all times
remain the property of SBI Life Life Insurance.
a. For the purposes of this clause, trade secrets and/or confidential information shall include,
but not be limited to, lists of and information concerning customers, Policyholders,
employees, Advisors and agency managers of SBI Life life Insurance, information
relating to the working of any product, process, invention, improvement or development
carried on or used by SBI Life Life Insurance, information relating to research projects,
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 know-how, prices, rates, discounts, mark-ups, business strategies, marketing, tenders and
any price sensitive information concerning SBI Life Life Insurance. For the avoidance of
doubt, the obligation of confidentiality in this clause extends to trade secrets and
confidential information howsoever stored, whether in hard copy documents, records or
computer programs.
b. Access to SBI Life Life Insurance computer resources, electronic data and the like may be
given to and shall be utilized by the Advisor only for the purpose of carrying out the
duties embodied in the Agreement.
c. The forgoing provisions on confidentiality and non-disclosure also apply to employees of
both the parties to this Agreement and the sad parties assume liability for the breach or
violation in any manner by their employees.

1.9 Companies Commitment

The company, with its unique brand and highly committed workforce, is determined to increase
life insurance penetration and offer need-based solutions our citizens, enabling them to live life to
the fullest.
I invite you to explore the several possibilities available for being an integral part of this dream,
of one of the fastest growing life insurance companies in the country.
For customers, SBI Life a company of State Bank Group which is synonymous with trust for
more than 200 years presents security for you and your loved ones through its range of
innovative life insurance solutions. With the backing of the largest distribution network in the
country of over 14,500 bank branches of State Bank and nearly 200 full-service offices of the
company, you are always close to your trusted life insurer. For prospective business partners, by
associating with one of the largest financial brands in the country, SBI Life gives you a lucrative
business opportunity to profit from serving millions of Indians. In terms of career opportunities,
SBI Life presents its most valuable asset, its employees, a work environment which is a blend of
security and excellence.

1.10 Corporate Social Responsibility Initiatives of SBI Life Insurance

SBI Life is proud to contribute towards the education system today, so that our country shall reap
rich talent tomorrow which in turn, will help the Nation to flourish. SBI Life, has through
structured and strategic programs assisted more than 500 educational institutions, not for profit

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organizations, hospitals, etc., and touched the lives of more than one lakh children, through its
various CSR programs and initiatives.
As per the guidelines, SBI Life shall strive to spend in every Financial Year; at least 2% of
average net profits (made during 3 immediately preceding FYs) are spent in CSR initiatives.
CSR Activities by SBI Life Insurance:
SBI Life provided Braille Kits to visually impaired students: Company pledged to
distribute 2,000 Braille Kits to visually challenged students, through National Association
for the Blind (NAB) across India.
SBI Life promotes Computer Education in Vivekanand Academy: West Bengal:
Company supported to set up a Computer Laboratory in English Medium School, at
Kolkata, which caters to the economically challenged children of the society.
SBI Life ensured healthcare of new mothers and infants in West Bengal: Company
provided for medical facilities of new mothers and infants from the underprivileged and
remote parts of West Bengal, consecutively for the second year.
Shiksha Se Safalta: SBI Life conducted mass distribution of 40,000 educational kits,
consisting of school bags and stationery to school going children from the economically
disadvantaged sections of the society across various parts of the Nation.
Khushiyon Ka Lunch box: SBI Life pledged to distribute 52,000 lunch boxes to the
children from the weaker sections of the society to inculcate the habit of eating healthy
food for a healthy mind and body.
SBI Life supports Special School for Children under the treatment of Cancer in
Mumbai: SBI Life provided for funds for education of children undergoing the treatment
of cancer, to bridge the gap in education that they usually face during their treatment.
SBI Life supported with the cost of education of the girl students from the financially
challenged families.

1.11 SBI Location of Offices

SBI has a huge network of offices for providing service related to Insurance all over the country.
Registered Office
SBI Life Insurance Co. Ltd. Central Processing Centre Kapas Bhawan, Sector 10, CBD Belapur,
Navi Mumbai 400614.Telephone No: 022-6645 6241
Email: info@sbilife.co.in

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Corporate Office
SBI Life Insurance Co. Ltd, "Natraj", M.V. Road & Western Express Highway Junction, Andheri
(East), Mumbai - 400 069
Summer Training Office Location
Branch office:
SBI Life Insurance Co. Ltd., shop no.65-66 near HDFC bank, Subhash chowk, sonepat -131001

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 2. LITERATURE REVIEW

2.1 Literature Review

1. Athma, p. (2007) This research explored consumer satisfaction relevant to the purchase
of life insurance products and compares satisfaction in a broker or agent assisted
transaction with satisfaction when no broker or agent is used, direct placement.
Benchmarks are identified for consumer satisfaction with the life insurance product, the
agent, and the institution. The research shows that trust, competence, and product
appropriateness play an integral part in consumer satisfaction. Practicing financial
planners can apply the implications of this study in their own practices, and/or future
researchers can determine whether consumer satisfaction increases or decreases as
distribution and marketing methods evolve.
2. Narayana. J (2009) In his article he made an emphasis on importance of customer
satisfaction in the business of insurance. He explained in phase of growing market
competition, there is an intense need to go beyond mere efficiency in designing products.
To understand the customers needs and to convey what they have to offer would perhaps
bring in higher efficiencies in customer service. Insurance business revolves around the
customer and fair treatment to customers is need of an hour to win their loyalty and trust.
In a service based organizations, customer service is the most dominating feature that
differentiate and gives good return to the insurers. Proper dealing with customer
complaints, effective customer grievances handling mechanism and fast claim settlement
procedure are some of the ways through which satisfaction level of customers can be
increased. Hence to serve the customers promptly and effectively is the key success of a
life insurance business.
3. Peyton (2009) stated In today's competitive era, satisfied customers are the key for the
success of any business. The golden rule of marketing is that "one satisfied customer
brings hundred more customers"; so this rule is followed by every business to meet the
competition or to survive in the market. It is true that no business can survive without
customers. Customer satisfaction needs to be analyzed to know the demand of customers
from the company in the form of products/services.
4. B. Abiola(2010) Modern societies belief life insurance scheme, which is designed to be
backbone of man survival, ensure financial security and offers readymade source of long
term capital financing for the infrastructural project is capable of combating the besetting
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 problem of man so that life can be made easy and continuous. The dramatic increase in
competition within the insurance sector and the needs of insurance by people has
concurrently resulted in more policy options being available in Nigeria market. The
different types and attributes of life insurance plans are to provide quality in the products,
so as to satisfy human wants. This study is carried out to measure the buyers' trade-offs
among multi-attributed products and services (utilities) that are derived from purchasing a
particular life insurance plan using descriptive statistical analysis (Mean Score). The
result show that the policyholders generally are not satisfied with the Life insurance
products based on the attributes attached to each of the product.
5. Imtiyaz (Feb 2010) told in his work retaining a customer is four time cheaper than
acquiring a new one. The retention of the customers is of utmost importance in the
insurance industry in specification. Insurance business is of the relationship building
process. Were one customer leads to the building of other one. A satisfied customer is like
a word of mouth advertisement for the company. The needs of the existing customers
should be identified and satisfied well rather than only concentrating at the new accounts.
All possible measures needs to be taken to retain the customers as it is lesser costlier as
well as provides stability to the business.
6. Kordalipoor (2012) In his work stated that the customers of the 21st century control or
own the leaders of the business, the customer of the 21st century control or own the
employees of the business, and the customer of the 21st century control or own the
business because the customers of the 21st century hold the potential success or failure of
the business in their firm grip. Customers demand and expect fast, efficient, and effective
service instantaneously. Customers anticipate and expect that all of their personal
information, likes and dislikes, and special preferences are recognized and efficiently
turned into action. Establishing customer value means that the customers dreams or
desires are served professionally, quietly, proficiently, and efficiently, always catering to
the customers wants, needs, desires, and dreams. The customers of the 21st century
know that the power of information and intense competition affords them the advantage
that facilitates their demands. The customers of the 21st century demand personalized
service, and they demand to speak to the person in charge so they may get the best deal.
They not only demand everything but also want the companies they do business with to
change to meet their desires and whims (Galbraith, 2005). The success of a business

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 ultimately resides in the carefully maintained and groomed connections that businesses
establish with their customers.
7. Borah, S. (2012) analysed the service quality perception of 50 customers in Jorhat by
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. He used non-probabilistic judgment-cum-convenience sampling technique to
choose the sample; the finding shows that most of the customers are satisfied.
8. Gautam, V. and Kumar M. (2012) attempted to illustrate the attitudes of Indian
consumers towards the insurance services by collecting the responses of consumers
through structured questionnaire on five point Likert scale. A total 377 responses were
collected to assess the level of awareness about the insurance services and their attitude
towards insurance services. Findings of the research show that basic socio demographic
and economic variables have significant impact on consumers attitudes towards
insurance services in Indian scenario.
9. Malik (2013) the title of the study itself defines the objective, service quality perceptions
contribution in customer satisfaction. The research hypothesis is that clients using retail
banking services with favourable perceptions of service quality dimensions will
experience higher satisfaction. Data collection was done from the banking customers from
government, international and privately held banks in Lahore, Pakistan. Service quality
was assessed in both ways based on Wang et als and Parasuraman et al. The overall
satisfaction was measured using a 1-5 Likert Scale. Multiple regression analysis was
carried out to assess the survey responses. Descriptive statistics like mean mediation was
calculated for all dependent and independent variables.
From the findings, the study concludes that not all SERVQUAL dimensions have the role
in boosting the satisfaction level of the banking customers in context with Pakistan. Also
says assurance has higher contribution than reliability. The study has more implications
on the banking practioners in Pakistan. The study findings also support the positive
relationship of service quality with satisfaction as found by Dagger et al. The study
concludes that the relationship between service quality and satisfaction varies because of
the variability of the service quality dimensions.
10. Parmjit, K. and Meenakshi, N. (2013) their study explored factors which are important
determinants of customer satisfaction in case of life insurance customers, to see how

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 much effect the factors have on overall customer satisfaction; and identifies the common
grievances of customers with regard to their life insurance policies. They restricted their
study in the tricity of Chandigarh, Mohali and Panchkula. The factors identified for
overall customer satisfaction are customized and timely service, Brand USP Considerate
employees Price Immunity and their results indicate that satisfaction with product
offerings is the primary driver of overall customer satisfaction in case of insurance
policies, even if the after sale service is not up to the satisfaction level. Customers were
satisfied with their insurance policies but they were not satisfied with the quality of
agents.
11. C. Balaji(2015) The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360 degree turn witnessed over a
period of almost two centuries. Insurance may be described as a social device to reduce or
eliminate the risk of loss of life and property. Under the plan of insurance a large number
of people associate themselves by sharing risk attached to individuals. Life Insurance
sector after privatization is maturing from mere security as single purpose behind owning
a policy to one of better investment options as well as policies is available with multiple
options and riders. Now at present around 13 private co.s are operating in life insurance
sector. But real competition is coming from HDFC AND ICICI which is utilizing
competitively their old database in attracting customers through cross-selling of financial
products at one roof.
12. Brandon (July 2016) found in his study that Insurance is one product which is not
demanded by a customer, but supplied to him by massive education and drive marketing.
Insurance ought to be bought not sold. The new concept of demand side innovation
focuses more on customers social and economic reality striving to deliver maximum
value to the customer at an affordable price. Therefore, when the customer becomes the
primary focus including him in the invention process becomes mandatory. But, there are
certain areas of insurance innovations where the customers cannot be involved. A case in
point is the recent insurance product invention called Telematics Auto Insurance. Its a
product by the Progressive Auto Insurance, which monitors the driving behaviour of its
auto insurance policyholder. The new machine grabs information and automatically
transmits it to the insurer. This information received is regularly analysed to judicially

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 conclude the intensity of risk the person is exposed and the corresponding premium he is
eligible to pay. This is an example of supply side innovation, where it is strictly not
possible to include the customer in the innovation process. Though, there are instances
where the customer is involved in the testing phase, his inclusion in the conception phase
makes an innovation demand-driven.
Thus it becomes a prime focus for anyone to understand the consumer behaviour and
perception and working accordingly to get the best results from the service leading to both
consumer satisfaction and companys profit.
The study recommended the need for insurance companies to conduct continuous
customer satisfaction surveys on their product, and also put emphasis on the aspects of the
product that seemed rather dissatisfying with a view to making an improvement on them.
Seminar should be given in business conferences, educational institutions and public
places to provide information about company and its products as well as educating them
about the important of taking insurance policy especially life insurance plan and redeem
their image by create a sense of security among the customers due to fear about the past
image of insurance company. In addition installation of stalls should be regularly done in
business exhibitions/ fair.
The awareness of different insurance service providers in the determination of policyholders
satisfaction for variety of insurance plans insurance market. There has been limited research on
determination of buyers satisfactions for insurance products. Regardless of the line of business,
customers satisfaction is important to business success. Business organization must focus and
force all the member of staff from the most senior to the least junior of the management hierarchy
to take consumer satisfaction as their priority in all the frame work of policies, practices and
information. It requires continual monitoring and experience examination, opinions and potential
customers.

2.2 About the Topic

2.2.1 Customer Satisfaction

The definition of customer satisfaction has been widely debated as organizations increasingly
attempt to measure it. Customer satisfaction can be experienced in a variety of situations and
connected to both goods and services. It is a highly personal assessment that is greatly affected by

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customer expectations. Satisfaction also is based on the customers experience of both contact
with the organization (the moment of truth as it is called in business literature) and personal
outcomes. Some researchers define a satisfied customer within the private sector as one who
receives significant added value to his/her bottom linea definition that may apply just as well
to public services. Customer satisfaction differs depending on the situation and the product or
service. A customer may be satisfied with a product or service, an experience, a purchase
decision, a salesperson, store, service provider, or an attribute or any of these. Some researchers
completely avoid satisfaction as a measurement objective because it is too fuzzy an idea to
serve as a meaningful benchmark.4 Instead, they focus on the customers entire experience with
an organization or service contact and the detailed assessment of that experience.
For example, reporting methods developed for health care patient surveys often ask customers
to rate their providers and experiences in response to detailed questions such as, How well did
your physicians keep you informed? These surveys provide actionable data that reveal
obvious steps for improvement. Customer satisfaction is a highly personal assessment that is
greatly influenced by individual expectations

Some definitions are based on the observation that customer satisfaction or dissatisfaction
results from either the confirmation or disconfirmation of individual expectations regarding a
service or product. To avoid difficulties stemming from the kaleidoscope of customer
expectations and differences, some experts urge companies to concentrate on a goal thats more
closely linked to customer equity. Instead of asking whether customers are satisfied, they
encourage companies to determine how customers hold them accountable Customer satisfaction,
a business term, is a measure of how products and services supplied by a company meet or
surpass customer expectation. It is seen as a key performance indicator within business

Customer satisfaction depends on the products performance relative to a buyers expectation,

the customer is dissatisfied. If preference matches expectations, the customer is satisfied. If
preference is exceeds expectation, the customer is highly satisfied or delighted outstanding
marketing insurance companies go out of their way to keep their customer satisfied. Satisfied
customers make repeat purchases insurance products and tell other about their good experiences
with the product. The key is to match customer expectations with company performance. Smart
insurance companys aim to delight customers by promising only what they can deliver, then
delivering more than the promise. Consumers usually face a broad array of products and services

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that might satisfy a given need. How do they choose among these many marketing makers
offers? Consumers make choices based on their perception of the value and satisfaction that
various products and services deliver.

Customer value is the difference between the values the customer gains from owning and
using a product and the costs of obtaining the products customers from expectations about the
value of various marketing offers and buy accordingly. How do buyers from their
expectations? Customer expectations are based on past buying experiences, the opinion of
friends and marketer and competitor information and promises.

Customer satisfaction with a purchase depends on how well the products performance lives
up to the customers expectations. Customer satisfaction is a key influence on future buying
behaviour. Satisfied customers buy again and tell others about their good experiences dies-
satisfied customers of ten switches to competitors and disparage the products to others. An
insurance provider open only to active duty, retired and separated military members and their
immediate families and therefore not included in the rankings, achieved a satisfaction ranking
equal to that any insurance company.

In general, customer satisfaction with auto insurance providers decreased significantly,

with 20 of the 21 companies surveyed decreasing in satisfaction from the previous
year. Insurance is the only carrier that did not experience a decline in satisfaction. Though
consumers report their insurance carriers are resolving their claims and problems faster.
Businesses survive because they have customers who are willing to buy their products or
services. However, many businesses fails to check in with their customers to determine
whether they are happy or not and what it will make to make or keep them happy.

According to U.S consumers affairs department, it costs five times more to gain a new
customer than to retain an existing one. Other studies have repeated that with just a five percent
increase in Customer retentions a firm can raise its profitability customers spend salary at first,
but with succeeding years of good experience, they will spend increasingly more.

Depending on the industry and the nature of the bad experience, dissatisfied customers
will complain to 10 to 20 friends and acquaintances, which is three times more than those with
good experiences are. Hence, the negative information is influential, and consumers generally
place significant weight on it when making a decision. If that is not the reason enough, fierce
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competitor is needed more and more to differentiate firms from one another. With technology
available to virtually every one today, the traditional features and cost advantages are no longer
relevant. Still product and service quality provides an enormous opportunity to distinguish a firm
from the rest. The Japanese have recognized this and have though us to expect quality. Todays
consumers do, and they know more about products and services than they ever did.

Customers are the best source of information. Whether to improve an existing product or
service or whether firms are planning to launch something new. There is no substitution for
getting it from horses mouth When you talk to your customer directly, to increase your odds
for achieving success you mistake-proof your decisions and work on what really matters. When
you routinely ask the customers for feedback and involve them in business they, in turn, become
committed to the success of your business.

2.2.2 Customer Satisfaction Measurement

A basic and effective base line customer satisfaction survey program should focus on
measuring customer perceptions of how will the company delivers on the critical success factors
and dimensions of the business as defined by the customers:
For example:

Service Promptness

Courtesy of Staff

Responsiveness

Understanding the customer problem, etc.

The findings of the company performance should be analysed both with all customers and by key
segments of the customer population. The essential starting point for Customer Satisfaction
Measurement (CMS) is exploratory research. Since satisfaction is about an organizations ability.
To meet customer requirement one has to start by clarifying with customers exactly what those
requirements are. This is done through exploratory research using focus groups or one to one
depth interviews.

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 Two main factors determine the accuracy of CMS. The first is the asking the right
question and the second is the asking them to the right people sample of customers which
accurately reflects the customer base.

Three things decide the accuracy of a sample. They are:

It must be representative.

It must be randomly selected.

It must be adequate enough.

2.2.3 Measuring Customer Satisfaction

Organizations need to retain existing customers while targeting non-customers. Measuring
customer satisfaction provides an indication of how successful the organization is at providing
products and/or services to the marketplace.
Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The state of
satisfaction depends on a number of both psychological and physical variables which correlate
with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also
vary depending on other factors the customer, such as other products against which the customer
can compare the organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
delivered SERVQUAL which provides the basis for the measurement of customer satisfaction
with a service by using the gap between the customer's expectation of performance and their
perceived experience of performance. This provides the researcher with a satisfaction "gap"
which is semi-quantitative in nature. Cronin and Taylor extended the disconfirmation theory by
combining the "gap" described by Parasuraman, Zenithal and Berry as two different measures
(perception and expectation) into a single measurement of performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of statements using a
Linker Technique or scale. The customer is asked to evaluate each statement in terms of their
perception and expectation of performance of the service being measured.

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2.2.4 Methodologies
American Customer Satisfaction Index (ACSI) is a scientific standard of customer
satisfaction. Academic research has shown that the national ACSI score is a strong predictor of
Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption
Expenditure (PCE) growth. On the microeconomic level, research has shown that ACSI data
predicts stock market performance, both for market indices and for individually traded
companies. Increasing ACSI scores has been shown to predict loyalty, word-of-mouth
recommendations, and purchase behaviour. The ACSI measures customer satisfaction annually
for more than 200 companies in 43 industries and 10 economic sectors.
In addition to quarterly reports, the ACSI methodology can be applied to private sector
companies and government agencies in order to improve loyalty and purchase intent. Two
companies have been licensed to apply the methodology of the ACSI for both the private and
public sector: CFI Group, Inc. applies the methodology of the ACSI offline, and Foresee Results
applies the ACSI to websites and other online initiatives. ASCI scores have also been calculated
by independent researchers, for example, for the mobile phones sector, higher education, and
electronic mail.

The Kano model is a theory of product development and customer satisfaction developed in
the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories:
Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some
insight into the product attributes which are perceived to be important to customers. Kano also
produced a methodology for mapping consumer responses to questionnaires onto his model.
SERVQUAL or RATER is a service-quality framework that has been incorporated into
customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer) to
indicate the gap between customer expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known for its
top-box approach and automotive industry rankings. J.D. Power and Associates' marketing
research consists primarily of consumer surveys and is publicly known for the value of its
product awards.

Other research and consulting firms have customer satisfaction solutions as well. These
include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the Stages of
Excellence framework and which helps define a companys status against eight critically
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identified dimensions. For Business to Business (B2B) surveys there is the Info Quest box. This
has been used internationally since 1989 on more than 110,000 surveys (Nov '09) with an average
response rate of 72.74%. The box is targeted at "the most important" customers and avoids the
need for a blanket survey.

2.2.5 Improving Customer Satisfaction

Published standards exist to help organizations develop their current levels of customer
satisfaction. The International Customer Service Institute (TICSI) has released The International
Customer Service Standard (TICSS). TICSS enables organizations to focus their attention on
delivering excellence in the management of customer service, whilst at the same time providing
recognition of success through a 3rd Party registration scheme. TICSS focuses an organizations
attention on delivering increased customer satisfaction by helping the organization through a
Service Quality Model. TICSS Service Quality Model uses the 5 P's - Policy, Processes People,
Premises, Product/Services, as well as performance measurement. The implementation of a
customer service standard should lead to higher levels of customer satisfaction, which in turn
influences customer retention and customer loyalty.

2.2.6 Customer Satisfaction Surveys:

Surveys and questionnaires are the most common marketing research methods. Typically, they
are used to:
Assess the level of customer satisfaction with a particular product, service or experience

Identify factors that contribute to customer satisfaction and dissatisfaction;

Determine the current status or situation of a product or service;

Compare and rank providers;

Estimate the distribution of characteristics in a potential customer population; or

Help establish customer service standards.

Why Organizations Focus on Customer Satisfaction

Businesses monitor customer satisfaction in order to determine how to increase their

customer base, customer loyalty, revenue, profits, market share and survival. Although greater
profit is the primary driver, exemplary businesses focus on the customer and his/her experience

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with the organization. They work to make their customers happy and see customer satisfaction as
the key to survival and profit. Customer satisfaction in turn hinges on the quality and effects of
their experiences and the goods or services they receive.

2.2.7 Benefits and Challenges:

Surveys allow an organization to quickly capture vital information with relatively little
expense and effort. A primary advantage of this method is its directness: the purpose is clear and
the responses straightforward. Additionally, the information gathered by surveys can easily be
analyzed and used to identify trends over time. The public views consumer product polls and
pollsters in a generally positive manner compared to political and other polls. One study found
that at least sixty percent of the public feels that market research about products and services has
a positive impact on society. Seventy percent consider the people who conduct such surveys to
have positive impacts on society.
A major disadvantage of customer surveys is that the responses may be influenced by the
measurement itself through various forms of bias. For example, most surveys are voluntary, and
some researchers have found differences between survey respondents and non-respondents.
People who respond to surveys answer questions differently than those who do not respond, and
late responders answer differently than early responders.

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3.1 Purpose of the Study
This project is undertaken with the purpose to take a survey in the market, various insurance
policyholders with the special reference to SBI LIFE INSURANCE CO. LTD. with an aim to
analysis what the customer has in mind for taking a particular insurance policy for a reason from
a particular company

3.2 Research Objective of The Study

1. To analyze the satisfaction level of the customers at SBI LIFE INSURANCE CO. LTD.
2. To enhance the various factors influencing customer investment decision in life insurance.
3. To analyses of services provided by SBI LIFE INSURANCE CO. LTD.

3.3 Research Methodology of Study

Research methodology is considered as the nerve of the project. Without a proper well-organized
research plan, it is impossible to complete the project and reach to any conclusion.

3. 3.1 Research design:

In this research Descriptive Research is used because it gives an understanding and we can
respond more appropriately to the dynamics of situation and this research is based on
experimentation of observation (evidence).

3.3.2 Data Collection Techniques

The main data collection technique used in the project is a Primary Data Collection Technique.

3.3.3 Sample Design

The data used here is collected by primary sources. Primary data: it will be collected with the
help of a self-administered questionnaire.

3.3.3.1 Population
500 existing customers of SBI Life Insurance Co. Ltd.

3.3.3.2 Sample Size

The sample size taken for the study is 100 from the population of 500 customers.

3.3.3.3 Sampling Method.

The convenience sampling method is used in this study.
Page | 36
3.3.4 Methods of Data Collection
3.3.4.1 Instrument for Data Collection
A structured non-disguised questionnaire based on likert scale has been prepared to get the
relevant information from the respondents. The researcher has been used this questionnaire with
the support & cooperation of the selected respondents, who are the customers of SBI LIFE
INSURANCE CO. LTD.

3.3.4.2 Drafting a Questionnaire:

As the questionnaire is self-administrated one, the survey is kept simple and user friendly. Words
Used in questionnaire are readily understandable to all respondent. Also technical jargons are
avoided to ensure that there is no confusion for respondents. While drafting the questionnaire
following points were considered:-
Demographic structure
Factors/Parameters of customer satisfaction
Service quality

In addition to that, analysts of social and economic change consider secondary data essential,
since it is impossible to conduct a new survey that can adequately capture past change and/or
development

3.5 Limitations
Conducting research in the market is not as simple. Following are the few limitations of
research:
1. People unawareness: People are not fully aware about insurance sector.
2. Environment is dynamic, factors may vary in future according to the need and time.
3. Busy schedule: people have no time for the survey and to fill the questionnaire some most
of the people think it is wastage of time.
4. Less data: data found of the secondary sources is very less because no company dont
want to disclose their key figures and marketing plans.
5. The research is done in narrow area, so it would give different result if it is done in vast
area.

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4.1 Gender

No. of Respondents
Responses Percentage%
64
Male 64
36
Female 36
100
Total 100

Table.4.1: Gender of the Respondents

Figure 4.1: Gender of the Respondents

Interpretation: As per Table.4.1, 64% people are male and 36% people are female. It shows that
the percentage of males is more in buying or having a life insurance than female.

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4.2 Age

No. of Respondents
Responses Percentage%
39
Below 30 39
34
31-40 34
17
41-50 17
10
Above 50 10
100
Total 100

Table.4.2: Age of the respondents

Figure.4.2: Age of the respondents

Interpretation: As per Table.4.2, 39% people are below 30 age, 34% people are 31-40 and rest
of 27% people are above 40. People between ages of 25-40 are more concern about purchasing a
life insurance.

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4.3 Educational Qualification

No. of
Responses Respondents Percentage%
Below 12th 23 23
Diploma 19 19
Graduate 24 24
Postgraduate 27 27
Other 7 7
100 100
Total
Table.4.3: Educational Qualification of the respondents

Figure.4.3: Educational Qualification of the respondents

Interpretation: As per Table.4.3, it can be interpreted that most of the people (nearly 93%) who
have taken insurance policy are literate. Only seven percent people who are illiterate have taken a
policy. This is because they somewhere could not earn as much so as to save or take a policy fir
themselves.

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4.4 Occupation

No. of
Responses Respondents Percentage%
10
Student 10
41
Employed 41
28
Self-employed 28
21
Other 21
100
Total 100
Table.4.4: Occupation of the respondents

Figure.4.4: Occupation of the respondents

Interpretation: As per Table.4.4, 41% people are employed and 28% people are self-employed.
People who are working or having own business purchase or show their concern more about
insurance rather than people who are studying.

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4.5 Do you have any investment plans of SBI Life Insurance?

No. of
Responses Respondents Percentage%
96
Yes 96
4
No 4
100
Total 100
Table.4.5: No. of people having insurance plan of SBI

Figure.4.5: No. of people having insurance plan of SBI

Interpretation: As per Table.4.5, from the sample size of 100, 96% people have SBI Life
Insurance and rest of them have not SBI Life Insurance but have some other companys
insurance.

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4.6 How do you come to know about the policy of SBI Life Insurance?

No. of Respondents
Responses Percentage%
55
Through agent 55
8
Self-approach 8
27
Suggested by friend/relative 27
10
Advertisement 10
100
Total 100
Table.4.6: Sources through which people know about insurance plan of SBI

Figure.4.6: Sources through which people know about insurance plan of SBI

Interpretation: As per Table.4.6, 55% people are come to know about insurance from agent and
27% people from friends and relatives and rest of other from advertisement or self-approach. It
shows that people come to know about any insurance plan through agents more than other source.

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4.7 Reasons for investing in Insurance Plans of SBI Life Insurance

No. of
Responses Respondents Percentage%
Returns 17 17
Schemes are good 33 33
Recommended by Family & Friends 12 12
Needs to save tax 2 2
Offers Multiple benefits like 36
investment+insurance +Tax Saving 36
Total 100 100
Table.4.7: Reasons for investing in insurance plan of SBI

Figure.4.7: Reasons for investing in insurance plan of SBI

Interpretation: As per Table.4.7, 33% people invest in insurance of SBI when they found
schemes are good and 36% when they get multiple offers, rest of them invest for returns and
other purpose.

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4.8 Did you get sufficient information about product (policy) while purchasing

No. of Respondents
Responses Percentage%
54
Yes 54
13
No 13
33
Somewhat 33
100
Total 100
Table.4.8: Respondents satisfied with the information provided

Figure.4.8: Respondents satisfied with the information provided

Interpretation: As per Table.4.8, people gets sufficient information while purchasing of

insurance, because they are taking decision about their life, however in some cases they cant get
the information due to some errors.

Page | 45
4.9 If No, the reasons are:

No. of Respondents
Responses Percentage%
10
Complex Language 64
7
Less Information 44
0
Other 0
17
Total 100
Table.4.9: Table showing Reasons

Reasons

Complex Language

Less Information

Other

0 2 4 6 8 10 12

Reasons

Figure.4.9: Figure Showing Reasons

Interpretation: As per Table.4.9, some people feels that the language written in the bond of the
policy is complex or some terms are not understandable to them. Some feels that the agents
provide less information to them while selling the information.

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4.10 Does your need and the product (policy) you purchased are matching

No. of Respondents
Responses Percentage%
36
Highly Agree 36
57
Agree 57
7
Average 7
0
Disagree 0
0
Highly Disagree 0
100
Total 100
Table.4.10 Need and product matching

Figure.4.10: Need and product matching

Interpretation: As per Table.4.10, 84% people are agreed that the product and their needs are
matched and rest of them are feeling average as some benefits are provided by all companies.

Page | 47
4.11 Satisfaction level of customers regarding pricing characteristics of insurance plan you
currently own.

No. of Respondents
Responses Percentage%
9
Highly Satisfactory 9
69
Satisfactory 69
22
Average 22
0
Dissatisfactory 0
0
Highly Dissatisfactory 0
100
Total 100
Table.4.11: Satisfaction level of customers regarding pricing characteristics

Figure.4.11: Satisfaction level of customers regarding pricing characteristics

Interpretation: As per Table.4.11, 77% people are satisfied with the price of insurance plan they
purchased.

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4.12 Satisfaction level of customers regarding returns in insurance policies of SBI Life Insurance.

No. of
Responses Respondents Percentage%
47
Highly Satisfactory 47
41
Satisfactory 41
12
Average 12
0
Dissatisfactory 0
0
Highly Dissatisfactory 0
100
Total 100

Table.4.12: Satisfaction level customers regarding returns

Figure.4.12: Satisfaction level customers regarding returns

Interpretation: As per Table.4.12, 88% people are satisfied with the returns given by SBI on
their insurance plan. It shows that the returns given by SBI are better. Mostly people are now a
days are service class people, they have lots of expenses due to which they save less. It is very
good option to save money at low cost, so people also consider the return policy of the company
before purchase.

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4.13 Satisfaction level of customers regarding the payment structure characteristics of insurance
plan.

No. of
Responses Respondents Percentage%
11
Highly Satisfactory 11
68
Satisfactory 68
19
Average 19
1
Dissatisfactory 1
1
Highly Dissatisfactory 1
100
Total 100

Table.4.13: Satisfaction level of customers regarding payment structure

Figure.4.13: Satisfaction level of customers regarding payment structure

Interpretation: As per Table.4.13, 79% people are satisfied with the payment mechanism of
their insurance plan. The payment of premium is done mostly in monthly, quarterly, or yearly
installments. The payment mechanism of SBI is good because it does not give any burden on the
customer. The company decide the payment structure according to the preference of customer.

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4.14 Satisfaction level of customers regarding tax reduction benefits characteristics of insurance
plan.

No. of
Responses Respondents Percentage%
Highly Satisfactory 29 29
Satisfactory 49 49
Average 22 22
Dissatisfactory 0 0
Highly Dissatisfactory 0 0
Total 100 100

Table.4.14: Satisfaction level of customers regarding tax reduction benefits.

Figure.4.14: Satisfaction level of customers regarding tax reduction benefits.

Interpretation: As per Table.4.14, 76% people are satisfied with the tax reduction benefit on
their insurance plan however it is almost same for all companies insurance plan. It is one of the
major factor due to which people invest in life insurances. It helps them to save tax at low cost.

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4.15 Satisfaction level of customers regarding the death benefits characteristic of insurance plan.

No. of
Responses Respondents Percentage%
Highly Satisfactory 22 22
Satisfactory 59 59
Average 17 17
Dissatisfactory 2 2
Highly Dissatisfactory 0 0
100 100
Total

Table.4.15: Satisfaction level of customers regarding death benefits

Figure.4.15: Satisfaction level of customers regarding death benefits

Interpretation: As per Table.4.15, 80% people are satisfied with the death benefit of their
insurance plan and other 20% are found average. Sometimes misshaping occurs before the
maturity but this is what the insurance is meant for. Insurance gives an assurance to the insured
that after death the sum assured will help their family.

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4.16 Satisfaction level of customers regarding the survival benefits characteristic of insurance
plan.
No. of
Responses Respondents Percentage%
16
Highly Satisfactory 16
54
Satisfactory 54
28
Average 29
1
Dissatisfactory 1
1
Highly Dissatisfactory 1
100
Total 100
Table.4.16: Satisfaction level of customers regarding survival benefits

Figure.4.16: Satisfaction level of customers regarding survival benefits

Interpretation: As per Table.4.16, 70% people are satisfied with the survival benefits given by
SBI Life Insurance. Survival benefits are those which are gives on maturity o f policy. Nearly all
policies have different sum assured but in every case the SBI customer is happy. Only 2% were
having issues which were resolved by the company.

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4.17 Satisfaction level of customers regarding the claim settlement policy of the company.

No. of
Responses Respondents Percentage%
13
Highly Satisfactory 13
59
Satisfactory 59
26
Average 26
2
Dissatisfactory 2
0
Highly Dissatisfactory 0
100
Total 100
Table.4.17: Satisfaction level of customers regarding claim settlement policy of SBI

Figure.4.17: Satisfaction level of customers regarding claim settlement policy of SBI

Interpretation: As per Table.4.17, 72% people are satisfied with the claim settlement policy of
the company and 26% people are feeling average about it. It is very much common in insurance
business that some issues arise in claim settlement procedure but the company takes utmost care
for this special activity. A special procedure has been set as a bonus of 1% of the policy to the
holders is he/she is knowingly not given the claim. This leads to customers contentment.

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4.18 Are there any issues regarding your policy?

No. of
Responses Respondents Percentage%
83
No 83
17
Yes 17
100
Total 100

Table.4.18: No. of respondents having any issue or not

Figure.4.18: No. of respondents having any issue or not

Interpretation: As per Table.4.18, 83% people are not having any issues till with their policy
and 17% have some issues with their policy. It interpret that people who are connect with SBI life
insurance hardly have any issue regarding their policy.

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4.19 Time taken by concerned authorities to consider the problem.

No. of
Responses Respondents Percentage%
13
15 Days 76.5
4
1 Month 23.5
0
45 Days 0
0
60 Days 0
0
More than above 0
17
Total 100
Table.4.19: Time taken by authorities to consider the problem

Figure.4.19: Time taken by authorities to consider the problem

Interpretation: As per Table.4.19, out of 16% people from table 4.18 76.5% people say SBI
consider their problem within 15 days and 23.5% people says it takes 1 month. It interpret that
the maximum time taken by the authorities in considering any problem is 15-30 days.

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4.20 Time taken by concerned authorities to resolve the problem.

No. of
Responses Respondents Percentage%
7
15 Days 41.2
10
1 Month 58.8
0
45 Days 0
0
60 Days 0
0
More than above 0
17
Total 100
Table.4.20: Time taken by authorities resolve the problem

Figure.4.20: Time taken by authorities resolve the problem

Interpretation: As per Table.4.20, 41.2% people says company resolve their problem within 15
days and 58.8% people says that it take 1 month. It interpret that the time taken by authorities to
solve the problem is within 15 days to 1 month. The time take by authorities to solve the problem
is based on type and nature of problem. However it is mandatory to the company to resolve the
problem with in 1 month.

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4.21 Satisfaction level of customers regarding the solution provided by the company?

No. of Respondents
Responses Percentage%
10
Highly Satisfactory 58.8
3
Satisfactory 17.6
4
Average 23.5
0
Dissatisfactory 0
0
Highly Dissatisfactory 0
17
Total 100
Table.4.21: Satisfaction level of customers after the solution

Figure.4.21: Satisfaction level of customers after the solution

Interpretation: As per Table.4.21, 58.8% people are highly satisfied with the solution provided
by SBI. It is obvious that not every customer can be made happy. Some may have some doubts
but discontentment arises only when they are not provided any solution. Once they are attend
they feel more satisfied. Same can be seen in this case only 23.5% feel average satisfied which
are also happy with the solutions.

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4.22 Satisfaction level of customers after investing in insurance plans of SBI Life Insurance.

No. of
Responses Respondents Percentage%
35
Highly Satisfactory 35
52
Satisfactory 52
13
Average 13
0
Dissatisfactory 0
0
Highly Dissatisfactory 0
100
Total 100
Table.4.22: Satisfaction level of customers after investing in SBI

Figure.4.22: Satisfaction level of customers after investing in SBI

Interpretation: As per Table.4.22, It interprets that 35% people are highly satisfied and 52%
people are satisfied after investing in SBI life insurance. Everyone feels satisfied after investing
in SBI as this leads to a feeling that they have invested in a well-known brand and the company is
omnipresent thus no tension regarding anything. Company can be contacted anytime.

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4.23 Satisfaction level of customers regarding the services provided by the company.

No. of
Responses Respondents Percentage%
Highly Satisfactory 31 31
Satisfactory 56 56
Average 13 13
Dissatisfactory 0 0
Highly Dissatisfactory 0 0
100 100
Total
Table.4.23: Satisfaction level of customers regarding services of SBI

Figure.4.23: Satisfaction level of customers regarding services of SBI

Interpretation: As per Table.4.23, It interprets that 31% people are highly satisfied and 56%
people are satisfied with customer services provided by the SBI. It can be seen that overall
satisfaction in the SBI policy holders is 100%. Though some problems may be there but since
everybody is satisfied it can be easily said that SBI takes customer care as utmost important
factor and soon or later everyones problem is solved.

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5.1 Findings
1. The ratio of male for buying the insurance is more than the female, however percentage of
female are increasing.
2. People buy the insurance at their early as between 25-40 as it is a long term investment as
well it is the right time to invest in it.
3. According to our study, graduates are more interested in life insurance investments.
4. Agents are the very big channel; it is the wheel of a companys cart through which
company can run. Agents sell the more policies than any other channel.
5. Mostly people invest in insurance because it has low risk or when they found schemes are
good which gives wholesome benefits that meet the customers expectation.
6. According to the rule of IRDA, it is mandatory to give full information to the customer
about the product (policy). So SBI gives sufficient information to their customer before
selling any policy, however sometimes they fail in it due to the lack of mistake of agents
and brokers.
7. Customer purchases any policy when they found his/her expectations are meet with the
desires.
8. People also invest for returns, and to secure financially their families after his/her death in
SBI, it shows that SBI give good returns as well as death benefits on its policies.
9. People having insurance of SBI hardly have any issue regarding their policy.
10. However, if someone has any problem with his policy, according to the rule or guidance
of IRDA it is compulsory for the company to solve the problem within 1 month of the
complaint file.
11. If the person is not satisfy with the solution given by the company then he/she can contact
to IRDA, but it happens very less because most of the people are satisfied with the
solution.
12. People fail to understand the terminologies used by agents at the time of purchasing the
policy.
13. The features of policy that attracted policyholders can be ranked as follows: company
reputation, money back guarantee, risk coverage, low premium and easy access to agents.

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5.2 Suggestions
Following are suggestions made for the benefits and augmentation of the sound working of the
company SBI life insurance:
1. In present competitive world, customer satisfaction has become an important aspect to
retain the customers, not only to grow but also to survive. Customer service is the critical
success factor and other insurers through their best services would be able to reposition
and differentiate itself from SBI.
2. Other insurers should emphasis more on advertising and building brand awareness
through different modes of communication. This will help in spreading insurance
awareness among the common man.
3. To achieve greater insurance penetration, the healthier competition has to be intensified
by both the sectors and they should come up with new innovative products to offer greater
variety or choice to the customers and also make improvement in the quality of services
and sell products through appropriate distribution channel to win-win situation for both
the parties.
4. Need to train and develop life insurance agents with more comprehensive knowledge and
skills to counter every queries of the customer.
5. It is also suggested that skilled management graduates need to be places on sales and
marketing of financial services who can render their best ideas for the accomplishment of
the company goals and objectives to the best extent.
6. There should be an expansion measure for more offices and location of more centers for
offices of the company be established sop that company may grow its network.
7. Life insurance companies should ask for their consumer feedback to know whether the
consumers are really satisfied or dissatisfied with the service and product of the
companies. If they are dissatisfied, then the reasons for dissatisfaction should be found out
and should be corrected in future.
8. Company should adopt new ways of marketing so as to cater the large interest groups.
9. Company should use simple terminologies and language which can be easily understand
by the customer.

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 CONCLUSION

6.1 Customer satisfaction is addressed as strategic business development tool. Customer

satisfaction does have a positive effect on the organizations profitability. Satisfied customers
from the foundation of any special business as a custom satisfaction leads to repeat purchase,
brand loyalty, and positive word of mouth. Satisfied customers are most likely to share their
experiences with other people to the order of perhaps five or six people. Equally well, dissatisfied
customers are more likely to tell another ten people of their unfortunate experience. Research has
demonstrated that even a difference between a totally satisfied customer and a somewhat satisfied
customer could lead to an increased revenue contribution of a factor.

A lack of customer satisfaction modeling and the nonexistence of a well-defined questionnaire

could have a negative effect on the development of sustainable and recurring business. For that
reason organizations could definitely take advantage of a proven systematic customer satisfaction
process. The challenge for organizations is to implement and secure a standardized customer
satisfaction process across their class of markets and geographic markets. Customer satisfaction
process across their class of markets and geographic markets. Customer satisfaction is addressed
as a strategic business development tool.

Customer satisfaction is an abstract concept and involves such factors as the quality of the
product, the quality of the service provided, the atmosphere of the location where the product or
service is purchased, and the price of the product or service. Businesses often use customer
satisfaction surveys to gauge customer satisfaction.

Page | 63
 BIBLOGRAPHY

Journals
1. Athma, p. (2007)) " an explorative study of life insurance purchase decision making:
influence of product and non-product factors ", icfai journal risk & insurance, vol. Iv,
october 2007, pg. No 19-21.
2. Narayana. J (2009), role of customer satisfaction in life insurance business, irda journal,
April 2009
3. Peyton (2003) Consumer Satisfaction/Dissatisfaction (CS/D): A Review of the Literature
Prior to the 1990s, Proceedings of the Academy of Organizational Culture,
Communication and Conflict. Vol. 7(2).
4. B. Abiola(2015) Measuring Customer Satisfaction on Life Insurance Products, Int. J.
Manag. Bus. Res., 4 (2), 73-80, spring 2015
5. 4) Imtiyaz H. Feb 2007, Retention of the Customers is the essence of Insurance business,
Insurance Times, page 20.
6. Borah, S. (2012). Customer Satisfaction on Products of Private Sector Insurance
Companies - A Study with Reference to Kotak Mahindra Life Insurance Company
Limited, Jorhat Branch. PARIPEX India Journal of Research, 1 (11), pp. 85-89.
7. Gautam, V. and Kumar, M. (2012). A Study on Attitudes of Indian Consumers towards
Insurance. Services Management Research and Practice, 4 (1), pp. 51-62.
8. Malik M. Ehsan, Zouna Arif, (December 2013), How do service quality perceptions
contribute in satisfying Customers? , Journal of Marketing Research, page 42-47
9. Parmjit, K. and Meenakshi, N. (2010). A study of Customer Satisfaction with Life
Insurance in Chandigarh Tricity. The Journal of Institute of Management Technology, 14
(2), pp. 29-44.
10. International Journal of Multidisciplinary Research and Development 2015; 2(1): 145-
147, Customer awareness and satisfaction of life insurance policy holders with reference
to Mayiladuthurai town. C. Balaji, Assistant Professor, Pg and Research, Department of
Commerce, A.V.C .College (Autonomous) Mannampandal Mayiladuthurai-609 305,
Tamilnadu.
11. Samuel Brandon, (July 2006), Customer driven innovation in insurance products,
Insurance Chronicle, page 33.

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Web
1. www.sbi.co.in
2. http://shodhganga.inflibnet.ac.in/
3. www.scribd.com

Books
1. Bihari,S.C. (2014) Insurance Management in the Reforms Era [Kindle Version].
Retrieved from http://www.amazon.com/
2. Baral , S.K. (2015) Dictionary of Insurance Terms, [Kindle Version]. Retrieved from
http://www.amazon.com/

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