CHAPTER 1

INTRODUCTION

1.1. INTRODUCTION

The abrupt impact of the COVID-19 pandemic has affected people's lives all around the world. Before the
outbreak, a majority of Indians thought of insurance as a product for "investment" or as a way to "save taxes".
But post the pandemic, many people have realized the primary objective of purchasing an insurance i.e.
“Protection”. Every direct or indirect interaction a customer has with a company shapes their perception of it,
and how they feel about the company.

The insurance companies bear the risk and protect against losses caused by unforeseen events in the future.

They charge a premium for this which is negligible in comparison to the potential losses. A premium can be

thought of as a small loss against a future major or devastating loss. The insurance company covers the losses
from the sum of premiums collected from investors. There are certain risks which cannot be avoided.
Furthermore, such risks cannot be accurately foreseen. One such risk is death, which causes family members to
suffer both an emotional loss as well as a financial loss. The insurance sector addresses one of the major
concerns of a rational man by constructing a corpus for the unpredictable future. Having a life insurance policy
reduces the risk arising from unpredictable events. However, purchasing insurance does not guarantee
eliminating life risk, rather it gives the individual and their family security in terms of financial support in the
event of sudden death and relieves them of financial worries. Insurance is not just a commercial activity but one
of the basic services that everyone in society requires. India has a large population base, with a large portion of
it living below the poverty line, so it is a major concern for our country.

The financial anxiety that has prevailed during the COVID-19 pandemic has led to a surge in people's interest
in buying insurance. It can be seen that the pandemic has prompted customers to examine the various
alternatives in insurance policies and choose appropriate coverage to ensure adequate coverage for that person
and their family in the event of unforeseen circumstances in the future.

The survival of the life insurance industry depends largely on the utmost good faith of policyholders. The two
primary types of insurance policies are life insurance and non-life insurance. Life insurance policies provide the
insured with financial protection against the risk of uncertain and unpleasant events occurring. On the other

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hand, protection from accidents, property damage, theft, and other liabilities is offered by non-life insurance to
the insured.

1.2. DEFINITION OF INSURANCE

“The basic function of insurance is to protect the few against the heavy financial impact of anticipated
misfortune by spreading the loss among the many who are exposed to risk of a similar nature”.

Insurance is also defined as the equitable transfer of the risk of loss, from one entity to another, in exchange for
payment. Insurance is a financial tool wherein the insured pays a marginal amount in the form of premium to
the insurer in order to cover a huge, unpredictable loss in the future. However, insurance policies neither prevent
such damage nor reduce the damage costs.

As per the Oxford English Dictionary insurance is defined as “an arrangement by which a company or the state
undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for
payment of a specified premium.” Insurance therefore works on the basis of collective risk bearing. It is a
mechanism that provides people with economic security and social protection.

1.3. HISTORY OF LIFE INSURANCE IN INDIA

The history of life insurance in India can be traced back to the British colonial era, when the British East India
Company introduced the concept of insurance in India. It was developed to raise people's awareness of the risks
they are exposed to. In 1835, the first insurance company called Bombay Mutual Assurance Society Limited
was established. In the year 1974, another company called Oriental Life Assurance Company Limited was
established. Both insurance companies were nationalized by the Indian government in 1956 and renamed Life
Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC), respectively. Both
companies dominated the insurance business until private companies were allowed to enter. Despite both
companies' monopolies, LIC and GIC failed to capture a significant market share. These opened the doors for
private participation in meeting customer demand and fostering a competitive marketplace. In the 1990s, the
Indian government began to liberalize and deregulate the insurance sector, allowing private companies to enter
the market. Since then, several private life insurance companies have been established and the industry has
grown rapidly, offering a range of life insurance products to meet the diverse needs of the Indian population.

Established in 1993, the Malhotra Committee began reforms in the Indian insurance sector. The Malhotra
Committee's aim was to assess the Indian insurance industry's efficiency. This committee was also responsible
for recommending the future insurance corridor in India. The Malhotra Committee made an effort to enhance
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many parts of the insurance industry in order to make them more appropriate, effective, and efficient for the
Indian insurance market. The committee's suggestions emphasized granting independence to insurance firms in
their operations and also proposed the creation of a separate regulatory body.

Following The Malhotra Committee's recommendations, IRDA was established as an autonomous body in 1999
and became the insurance industry's statutory body in April 2000. The IRDA has been given wide powers to
administer and regulate the insurance business in a manner that protects the interests of policyholders. One of
IRDA's key objectives was to encourage competition to increase customer satisfaction through greater consumer
choice and cheaper insurance premiums while simultaneously guaranteeing the market's financial stability.
Every insurance provider in India was required to follow the rigid code of conduct established by IRDA. The
enforcement of the 1999 IRDA Act opened up the insurance industry to the private sector. In the same year, the
IRDA began issuing licenses to private life insurers. The rationale for liberalizing the insurance sector is to
bring about product and price innovation, market expansion, improved customer service, and technological
advancement in the industry. Before introducing insurance products to the market, both LIC and other private
companies are required to obtain approval from IRDA.

The implementation of the online service by the IRDA to issue and renew licenses to agents is one of the other
decisions made concurrently to give the supporting services to the insurance sector and in particular the life
insurance businesses. The IRDA has had regulations that are on par with global norms ever since it was
established as a separate statutory body.

The degree of penetration of life insurance tends to increase as people's income levels rise. India, with its upper-
middle-income families, has shown growth potential for the insurance industry. Today, the life insurance sector
in India is one of the fastest growing in the world, with the total premium income of all life insurance companies
in India reaching $60 billion in 2020. The sector continues to evolve and expand, offering new and innovative
products and services to meet the changing needs of the Indian market.

1.4. TYPES OF INSURANCE

Insurance is broadly classified into two types: Life insurance and Non-life insurance. In layman's terms, general
insurance includes all insurance except life insurance. The subject matter of life insurance is human life.

The assurance in life insurance must be redeemed at some point. However, this is not the case with general
insurance. The assurance amount can only be paid if the insured suffers damage or loss. The amount payable in
general insurance is determined by assessment and is based on the extent of damage and insurance coverage.

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The amount payable on a claim arising from life insurance is specified in the policy. General insurance is a one-
year contract, whereas life insurance is a long-term commitment. The long-term nature of life insurance creates
a long-term relationship between the insurer and the customer.

1.4.1. LIFE INSURANCE

Life insurance is a type of agreement that guarantees payment of a specified amount to the policyholder's
designated recipient in the event of their death. This form of insurance provides financial security for the
policyholder's family in their absence, shielding them from financial hardship. In addition to offering life

protection, life insurance can also serve as a savings tool, enabling an individual to accumulate wealth, achieve
financial goals, and save on taxes.

1.4.2. NON-LIFE INSURANCE

Non-Life or General insurance refers to insurance coverage for losses resulting from specific incidents, and
compensation is provided to the policyholder if such a loss occurs. In contrast to Life insurance, General
insurance only provides compensation in the event of a loss, and no payment is made if there is no loss incurred.
Examples of Non-Life insurance include health insurance, motor insurance, marine insurance, fire insurance,
travel insurance, theft insurance and other various forms of non-life insurance. Some of the other forms of
general insurance are as follows:

MOTOR INSURANCE

Motor insurance is a type of insurance policy that protects vehicles from various on-road and off-road
emergencies, as well as damages caused by natural and man-made disasters, such as terrorist acts. According to
the Motor Vehicles Act of 1988, all motor vehicle owners in India are required to have motor insurance. This
insurance policy must be renewed annually, and driving a motor vehicle in a public place without insurance is a
punishable offense.

There are two main types of motor insurance policies available in India:

1. Third-Party Liability Insurance: This type of policy provides coverage for damage caused to a third-
party person or property in the event of an accident. It is the minimum requirement by law and is
mandatory for all vehicles in India.

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 2. Comprehensive Insurance: This type of policy provides coverage for both third-party liability as well as
damages to the insured vehicle. It includes coverage for damage caused by accidents, theft, fire, natural
calamities, and other covered incidents.

In addition to the basic coverage, Indian motor insurance policies may also offer additional coverage options
such as personal accident coverage for the driver and passengers, roadside assistance, and engine protection.
The cost of motor insurance in India varies based on a number of factors, including the type of vehicle, the age
and driving history of the driver, and the level of coverage chosen. Many insurance companies in India also
offer discounts for safe driving, anti-theft devices, and other factors that can reduce the risk of accidents or
damage.

HEALTH INSURANCE

Health insurance is a type of insurance policy that provides financial protection to individuals and their families
in the event of a medical emergency. There are various types of health insurance policies available in India,
including individual policies, family floater policies, and group policies. Health insurance policies in India
typically offer coverage for hospitalization expenses, including room and board, nursing expenses, surgeon fees,
diagnostic tests, and other medical expenses. Policies may also offer coverage for pre-hospitalization and post-
hospitalization expenses, outpatient care, and day care procedures. Some policies may also offer coverage for
alternative treatments and other non-allopathic treatments. The cost of health insurance can vary based on a
number of factors, including the age and health history of the insured person, the type and level of coverage
chosen, and the insurance company. Some health insurance policies may also offer discounts for healthy
lifestyle choices and preventative care measures. In India, health insurance policies are regulated by the
Insurance Regulatory and Development Authority of India (IRDAI). According to the IRDAI, premiums paid
for health insurance are eligible for tax benefits under section 80D of the Income Tax Act, 1961. The IRDAI
sets guidelines and standards for the insurance industry in India to ensure that policies are fair, transparent, and
in the best interests of policyholders.

MARINE INSURANCE

Marine insurance is a type of insurance policy that provides coverage for losses or damages to marine vessels,
cargo, and related transport equipment during transit. This type of insurance can be purchased by importers,
exporters, manufacturers, and other businesses that deal with maritime transportation. Marine insurance policies
in India typically offer coverage for a variety of risks, including damage or loss to the vessel or cargo due to
collisions, piracy, natural disasters, theft, and other events. Policies may also offer coverage for liability to third
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parties, including damage caused to other vessels or ports. There are several types of marine insurance policies
available in India, including voyage policies, time policies, and mixed policies. Voyage policies provide
coverage for a single trip, while time policies provide coverage for a specific period of time. Mixed policies
provide coverage for both a specific trip and a specific period of time. The cost of marine insurance can vary
based on a number of factors, including the type of policy, the value of the cargo or vessel being insured, and
the level of coverage chosen. It's important for businesses that deal with maritime transportation to carefully
review their marine insurance policy and understand the coverage and exclusions in order to ensure they have
the protection they need in the event of a loss or damage.

FIRE INSURANCE

Fire insurance is a type of insurance policy that provides coverage for losses or damages to property due to fire-
related incidents. This type of policy can be purchased by individuals, businesses, and organizations that own or
lease property and want to protect their assets against fire-related risks. Fire insurance policies in India typically
offer coverage for losses or damages to the insured property due to fire, lightning, explosion, and other fire-
related incidents. The policy may also offer coverage for damages to adjacent properties and liability for injury
or property damage to third parties. The cost of fire insurance can vary based on a number of factors, including
the type and value of the insured property, the level of coverage chosen, and the insurance company.

1.5. MAJOR CATEGORIES OF LIFE INSURANCE POLICIES

The insurance industry offers a variety of life insurance products to young people, senior citizens, and children.
These policies are listed as follows:

WHOLE LIFE POLICIES

Whole life policies are a type of life insurance that provides coverage for the entire lifetime of the insured, as
long as the premiums are paid. Unlike term life insurance, which provides coverage for a specific period of
time, whole life policies are permanent and offer a lifetime death benefit. Whole life policies typically have
higher premiums than term life policies, but they also offer a cash value component that can grow over time.
This cash value can be accessed during the policyholder's lifetime, either through withdrawals or by borrowing
against the policy. The cash value in a whole life policy grows tax-deferred, meaning that policyholders do not
have to pay taxes on the growth until they withdraw or borrow against the policy. Policyholders can also use the
cash value to pay premiums or to purchase additional coverage. Another benefit of whole life policies is that
they often offer a guaranteed death benefit. This means that as long as the premiums are paid, the policy will

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pay out a set amount to the beneficiaries upon the insured's death. This can be beneficial for estate planning
purposes, as it provides a guaranteed source of funds for the policyholder's loved ones.

ENDOWMENT LIFE INSURANCE POLICY

Endowment life insurance is a type of life insurance policy that combines a death benefit with a savings
component. With an endowment policy, the policyholder pays regular premiums, and at the end of the policy
term, the policy pays out a lump sum payment to the policyholder, which is known as the maturity benefit. In
addition to the maturity benefit, endowment policies also provide a death benefit to the policyholder's
beneficiaries if the policyholder dies before the end of the policy term. The death benefit is typically equal to the
sum assured or the policy's current value, whichever is higher. Endowment policies can be a good choice for
individuals who want to ensure that their beneficiaries receive a guaranteed payout in the event of their death,
while also providing the policyholder with a savings component that can be used to meet financial goals, such as
saving for a down payment on a home, a child's education, or retirement. Endowment policies can be structured
in several ways, such as with-profit, without-profit, unit-linked, or unitized with-profit. With-profit and unitized
with-profit policies provide the policyholder with a share of the insurer's profits, while without-profit and unit-
linked policies do not. Unit-linked policies invest the policyholder's premiums in investment funds, while non-
unit-linked policies invest the premiums in the insurer's general fund.

TERM INSURANCE POLICY

Term life insurance is a type of life insurance policy that provides coverage for a specific period of time, usually
a predetermined number of years. If the insured individual dies during the term of the policy, the policy pays out
a death benefit to the beneficiary. These insurance policies are typically purchased for a specific period of time,
such as 10, 20, or 30 years, and the premiums remain level throughout the term of the policy. Once the term of
the policy expires, the policy can be renewed for another term, although the premiums may increase due to the
insured individual's age and health status. Unlike permanent life insurance policies, such as whole life or
universal life, term life insurance policies do not build up any cash value over time. This means that the
policyholder cannot borrow against the policy or receive any dividends from the insurer. Term life insurance
policies can be a cost-effective way for individuals to obtain life insurance coverage for a specific period of
time, such as to provide for their family's financial needs in the event of their untimely death. However, it's
important to carefully review the terms and conditions of the policy to ensure that it meets the specific needs
and goals of the insured individual.

JOINT LIFE POLICY

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A joint life insurance policy not only provides risk coverage, but also offers maturity benefits. It covers the
lives of two individuals, whether they are a couple or business partners, and pays out the sum assured upon the
death of one or both parties. If one person survives, they will continue to receive the remaining benefits. If both
individuals are still alive at maturity, the assured amount and bonuses will be split evenly between them. The
premium is paid until the death or maturity of the first individual. Joint plans may cover more than two lives
simultaneously.

ANNUITY

An annuity is a financial product that provides regular income payments to the holder over a specific period of
time, often for life. An annuity is essentially a contract between an insurance company and an individual, where
the individual pays a premium or a series of premiums to the insurance company, and the insurance company
agrees to make regular payments to the individual in the future. An annuity can be used as a form of retirement
income, as it provides a guaranteed income stream for a specific period or for the holder's lifetime. Annuities
can be structured in different ways, such as fixed, variable, and indexed annuities. Fixed annuities offer a fixed
income stream at a predetermined interest rate for the duration of the contract. Variable annuities, on the other
hand, provide income payments that are linked to the performance of the underlying investments. Indexed
annuities are similar to fixed annuities, but the interest rate is based on the performance of an index. Annuities
are often used as a way to supplement retirement income or to help manage assets in retirement.

CHILDREN'S ENDOWMENT POLICY:

A children's endowment policy is a type of life insurance policy that is designed to provide savings and financial
protection for a child's future. These policies are typically purchased by parents or grandparents of a child, with
the goal of providing the child with a lump sum payment at a specific point in the future, such as when they turn
18 or 21.With a children's endowment policy, the policyholder pays regular premiums for a set period of time,
typically 10, 15, or 20 years. The policy accrues interest and dividends over time, and at the end of the policy
term, the policyholder receives a lump sum payment, known as the maturity benefit. If the policyholder dies
before the end of the policy term, the policy provides a death benefit to the child or their legal guardian. The
death benefit is typically equal to the sum assured or the policy's current value, whichever is higher. Children's
endowment policies can be a good way to provide a child with a lump sum of money for their future education,
a down payment on a home, or other significant expenses.

CONVERTIBLE WHOLE LIFE POLICY:

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A convertible whole life policy is a type of life insurance policy that allows the policyholder to convert their
policy to another type of policy, such as an endowment policy, at a later date. This option is typically available
to the policyholder within a specific time period, often within the first few years of the policy. With a
convertible whole life policy, the policyholder pays premiums for the duration of their life, and the policy
provides a death benefit to the beneficiary upon the death of the policyholder. The policy's cash value grows
over time, based on the premiums paid and any interest or dividends earned on the policy. The option to convert
the policy to another type of policy can provide the policyholder with more flexibility and options for meeting
their changing insurance and financial needs. For example, the policyholder may choose to convert to an
endowment policy to receive a lump sum payment at a specific point in the future, or to a term life policy to
provide temporary coverage for a specific period of time. The conversion is typically subject to payment of an
increased premium based on the new policy type and the policyholder's current age and health status.

UNIT LINKED PLANS:

Unit-linked plans (ULIPs) are a type of life insurance product that combines investment and insurance features.
Under a ULIP, the policyholder pays premiums, which are invested in a variety of funds such as stocks, bonds,
and money market instruments. The value of the ULIP is calculated based on the Net Asset Value (NAV) of the
underlying funds in which the policyholder has invested. As such, the returns on ULIPs are subject to market
fluctuations. In addition to providing investment opportunities, ULIPs also offer life insurance coverage, with
the amount of coverage typically tied to the value of the policy. Policyholders can often choose the type and
level of coverage they want, and also have the option to switch between different funds within the ULIP.
However, ULIPs may also come with certain fees and charges that could impact the overall returns.

GROUP INSURANCE

Group insurance is an insurance policy that provides coverage for a group of people, typically employees of a
company or members of an organization. The coverage is offered to the entire group as a whole, rather than to
each individual separately. This type of insurance can include health insurance, life insurance, disability
insurance, and other types of coverage. Group insurance is usually purchased by an employer or organization on
behalf of its members, and the premiums are often shared between the employer and employees or organization
members. Group insurance policies generally offer more affordable premiums and wider coverage options than
individual insurance policies.

PENSION PLAN:

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Pension plan does not offer any life insurance coverage benefits, but it does provide a fixed return for a specific
period of time or for the entire duration of the policyholder's life. The policyholder can choose to make a single
lump-sum payment or pay the premium in installments over a certain period. The return on the plan is paid out
in the form of regular income, either monthly, biannually, or annually, for a predetermined time period or for
the policyholder's entire life. The premium payments for this plan are eligible for tax benefits under section
80CCC of the Income Tax Act, 1999.

In India, pension plans are typically offered by insurance companies, as well as by the government through
various social security programs. Pension plans in India can be either defined benefit plans or defined
contribution plans, with different payout options available.

One of the most popular pensions plans in India is the National Pension System (NPS), which is a defined
contribution plan that is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
The NPS is available to all Indian citizens between the ages of 18 and 65 and offers several investment options,
including equity, corporate bonds, and government securities. The plan offers tax benefits to individuals and
employers, and participants can choose from different payout options, including lump sum payments or
annuities.

The Employee Provident Fund (EPF) is another popular pension plan in India, which is a defined benefit plan
that is offered to employees by their employers. The EPF is mandatory for certain types of employees, and
contributions are made by both the employer and employee. The plan provides a guaranteed retirement benefit
to employees upon retirement, as well as certain other benefits such as disability and survivor benefits.

In addition to these plans, there are several other pension plans and social security programs available in India,
including the Atal Pension Yojana (APY) and the Pradhan Mantri Vaya Vandana Yojana (PMVVY)

MONEY BACK POLICY

Money back policies are a type of life insurance policy that provides periodic payments to the policyholder
during the term of the policy. The policy typically offers a fixed sum assured, which is paid out in the event of
the policyholder's death or at the end of the policy term. In addition, the policy provides periodic payments, or
"money back" payments, to the policyholder during the policy term, typically every five years. Money back
policies are typically designed to provide both life insurance coverage and a savings component. The
policyholder pays a premium, which is invested by the insurance company, and the policy builds up a cash value
over time. The money back payments made during the policy term can be used to supplement the policyholder's
income or for any other purpose. At the end of the policy term, the policyholder receives the sum assured, along
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with any accumulated bonuses or other benefits. In the event of the policyholder's death during the term of the
policy, the sum assured is paid out to the policyholder's beneficiaries.

1.6. FUNCTIONS OF INSURANCE

The functions of insurance can be studied into two parts: (i) Primary Functions (ii) Secondary Functions.

1.6.1. PRIMARY FUNCTIONS-

(I) INSURANCE PROVIDES CERTAINTY

Insurance provides certainty of payment at the uncertainty of loss. The uncertainty of loss can be reduced by
better planning and administration. But, the insurance relieves the person from such a difficult task. Moreover,
if the subject matters are not adequate, the self- provision may prove costlier. There are different types of
uncertainty in a risk. Whether the risk will occur or not, when will it occur, how much loss will it cause,etc.

In other words, there is uncertainty of time and amount of loss. Insurance removes all these uncertainty and the
assured is given certainty of payment of loss. The insurer charges a premium for providing the said certainty.

(II) INSURANCE PROVIDES PROTECTION

The main function of the insurance is to provide protection against the probable chances of loss. The time and
amount of loss are uncertain and at the happening of risk, the person will suffer loss in absence of insurance.
The insurance guarantees the payment of loss and thus protects the assured from sufferings. The insurance
cannot check the happening of risk but can provide for losses at the happening of the risk.

(III) RISK-SHARING (COLLECTIVE RISK)

The Insurance policies whether life insurance or general insurance are purchased by lacs of people. But all of
them are not subjected to losses every year. It is only a few or negligible who become victims of some miss
happenings. In other words lakhs of people contribute towards insurance and only a few people need its cover. It
is therefore clear that insurance is a method by means of which a few losses are shared by a large number of
people. All the people insured contribute by paying an annual premium towards a fund out of which the persons
exposed to risks are paid as per the terms and conditions of the insurance policy purchased by them.

1.6.2. SECONDARY FUNCTIONS-

Besides the above primary functions, the insurance works for the following functions:

(I) PREVENTION OF LOSS

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The insurance joins hands with those institutions which are engaged in preventing the losses of the society
because the reduction in loss causes lesser payment to the insured and so more saving is possible which will
assist in reducing the premium. Lesser premium invites more business and more business causes lesser share to
the assured. So again premium is reduced to, which will stimulate more business and more protection to the

masses. Therefore, the insurance assists financially to the health organization, fire brigade, educational
institutions and other organizations which are engaged in preventing the losses of the masses from death or
damage.

(II) IT PROVIDES CAPITAL:

Insurance provides capital to the society. The accumulated funds are invested in productive channel. The dearth
of capital of the society is minimized to a greater extent with the help of investment of insurance. The industry,
the business and the individual are benefited by the investment and loans of the insurers.

(III) IT IMPROVES EFFICIENCY

The insurance eliminates worries and miseries of losses at death and destruction of property. A carefree person
can devote his body and soul together for better achievement. It improves not only his efficiency, but the
efficiency of the masses are also advanced.

(IV) IT HELPS ECONOMIC PROGRESS:

The insurance by protecting the society from huge losses of damage, destruction and death,

provides an initiative to work hard for the betterment of the masses. The next factor of economic

progress, the capital, is also immensely provided by the masses. The property, the valuable

assets, the man, the machine and the society cannot lose much at the disaster.

1.7. CHARACTERISTICS OF INSURANCE

SHARING OF RISK:

Insurance is an instrument of distributing the loss of few among many. The loss arising from uncertain events if
insured are shared by all the insured in the form of premium.

CO-OPERATIVE DEVICE:

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The most important feature of every insurance plan is the cooperation of large number of persons who, in effect,
agree to share the financial loss arising due to a particular risk which is insured. Such a group of persons may be
brought together voluntarily or through publicity or through solicitation of the agents. An insurer would be
unable to compensate all the losses from his own capital. So, by insuring or underwriting a large number of
persons, he is able to pay the amount of loss. Like all cooperative devices, there is no compulsion here on
anybody to purchase the insurance policy.

VALUE OF RISK

The risk is evaluated before insuring to charge the amount of share of an insured, herein called, consideration or
premium. There are several methods of evaluation of risks. If there is an expectation of more loss, a higher
premium may be charged. So, the probability of loss is calculated at the time of insurance.

PAYMENT AT CONTINGENCY:
The payment is made at a certain contingency insured. If the contingency occurs, payment is made. Since the
life insurance contract is a contract of certainty, because the contingency, the death or the expiry of term, will
certainly occur, the payment is certain. In other insurance contracts, the contingency is the fire or the marine
perils etc., may or may not occur. So, if the contingency occurs, payment is made, otherwise no amount is given
to the policy-holder.

AMOUNT OF PAYMENT

The insurance contract is a contract of indemnity i.e. compensation of loss. The amount of payment depends
upon the value of loss occurred due to the particular insured risk provided insurance is there up to that amount.
In life insurance, the purpose is not to make good the financial loss suffered. The insurer promises to pay a fixed
sum on the happening of an event.

LARGE NUMBER OF INSURED PERSONS

To spread the loss immediately, smoothly and cheaply, a large number of persons should be insured. To make
the insurance cheaper, it is essential to insure a large number of persons or property because the lesser would be
the cost of insurance and so, the lower would be the premium.

INSURANCE IS NOT A GAMBLING

In fact, insurance is just the opposite of gambling. In gambling, by bidding the person exposes himself to risk of
losing, in the insurance; the insured is always opposed to risk, and will suffer loss if he is not insured.

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INSURANCE IS NOT CHARITY

Charity is given without consideration but insurance is not possible without premium. It provides security and
safety to an individual and to the society although it is a kind of business because in consideration of premium it
guarantees the payment of loss. It is a profession because it provides adequate sources at the time of disasters
only by charging a nominal premium for the service.

1.8 RIGHTS OF INSURER

RIGHT TO AVOID POLICY

Principle of utmost good faith is the basis of insurance contracts. If the insured has given false information or
violated any conditions of policy, then the insurance companies can avoid the policy.

RIGHT OF ENTRY AND CONTROL OVER THE PROPERTY

On the occurrence of any loss or damage to any of the property insured, the insurance company may enter and
take and keep possession of the building or premises where the loss or damage has happened. These

rights are necessary for the insurer to ascertain the cause and extent of loss or damage, to minimize the damage
and to protect the salvage

RIGHT TO SUBROGATION:

After the payment of the policy money, the insurer is entitled to all the rights and remedies which may be
possessed by the insured in respect of the subject matter of insurance. This right of the insurer whereby he steps
into the shoes of the assured is called the right of subrogation.

RIGHT OF CONTRIBUTION:

where a person has taken out more than one policy against the same risk with different insurance companies,
and one insurance company has paid the claim, that insurance company can call upon other insurance company
to contribute.

RIGHT TO SALVAGE

If the insurance company has paid for the loss in full, it can take possession of the salvaged property.

1.9 DUTIES OF INSURER

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1. The insurance company is required to settle the claim within 30 days of receipt of the final survey report. In
case of delay, the insurance company has to pay interest at a rate which is 2 per cent above the bank rate
prevalent at the beginning of the financial year in which the claim is lodged.

2. It is the duty of an insurance company to provide all details about the policy and answer any queries or doubts
raised by the insured.

3. It is the duty of an insurance company to ensure that its agents don’t mis-sell the insurance policies to the
clients. Proper training should be given by the insurance company to its agents.

4.Insurance companies can and do make changes to insurance plans and policies. However, it is the duty of the
provider to inform the policyholder of any changes, particularly if they might have an adverse effect on their
right to claim.

5. If the insurance provider decides to increase the premiums, it is their duty to provide adequate notice of the
change in premiums. Premium may change on account of change in risk or taxes.

6.It is the duty of the insurance provider to contact customers to advise them that their insurance policy is due to
expire and to advise whether they are prepared to renew the policy. At this time any details of changes to terms
of the policy and premiums should also be provided so that consumers can make an informed decision with
regards to whether to renew.

1.10. RIGHTS OF INSURED

1. Cancel a life insurance policy within 15 days from the date of receipt of the policy document. If one disagrees
to any of the terms or conditions in the policy

2. Your insurer is required to offer you financial advice and products that best suit your needs. They must
explain all the terms and conditions clearly. Insurance companies and intermediaries (insurance agents and
brokers) are responsible for offering financial advice to ensure adequate coverage for their clients.

3. In the event of claims rejected, the insured has the right to know the reason for such rejection.

4. Insured has the right to lodge a complaint with the designated dispute resolution forum such as ombudsman,
consumer forum or court; regarding unfair trade practice by company or its agents.

5. Under ULIP, the insured has the right to choose his investments and also make changes
15
subsequently

6. Insured has the right to obtain quotations from different insurance companies for the purpose of comparison
and arriving at a decision

1.11. DUTIES OF INSURED

1. The insured persons should fill the proposal form themselves correctively and truthfully as it is the basis of
the insurance contract.

2. The insured person should ensure that no columns are left blank in the proposal form and under no
circumstances a blank form should be signed.

3. The insured will be responsible for any information provided in the proposal form as it bears his signature.
Therefore, the insured should disclose “all material information” about the risk he wants to cover.

4. The insured should ensure to register nomination under the policy. Fill the nominee’s name correctly

5. When a policy bond is received, the insured should check it and be sure that the policy is the one that he
wanted.

6. The insured should go through all the policy conditions and be sure that these are the same that were
explained to him by the intermediary/ insurance company official at the time of sale

7. The insured should pay the insurance premium regularly on the due dates/ within the grace period to avoid
lapsation of policy.

8. It is the duty of the insured to intimate the change in address to the insurance company.

9. In the case of claims, it is the duty of the insured to provide all necessary documents and assistance required
to the insurance company for processing the claims.

1.12. NEED FOR LIFE INSURANCE

TAX SAVINGS

Life insurance policies are often considered as a tool for tax savings. Policyholders can avail tax benefits under
Section 80C of the Income Tax Act, which allows them to claim a deduction of up to Rs. 1.5 lakhs on the
premium paid towards life insurance policies. This tax benefit can help individuals reduce their tax liability,
while also providing them with valuable financial protection for themselves and their loved ones.

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INVESTMENT

One of the key benefits of insurance policies is that they provide a guaranteed return on investment, which can
help individuals save money over time. Unlike other forms of savings, such as bank deposits or mutual funds,
insurance policies provide a fixed or variable rate of return that is guaranteed by the insurance company. This
can be particularly attractive to individuals who are looking for a stable and predictable way to grow their
savings. In addition to providing a guaranteed return on investment, insurance policies can also help individuals
safeguard against the effects of inflation. Inflation is a persistent increase in the price level of goods and services
over time, which can erode the value of money. Insurance policies typically offer a higher rate of return than
bank deposits, which can help individuals keep pace with inflation and maintain the value of their savings over
time.

REGULAR SAVINGS

Insurance policies require individuals or families to make regular premium payments in exchange for coverage
and potential benefits. By committing to these payments, individuals and families can cultivate a habit of regular
savings, which can help them achieve financial independence and security. The act of paying premiums on a
regular basis helps individuals and families develop a disciplined approach to saving money. The regularity of
these payments, whether monthly, quarterly, or annually, can help individuals budget their finances and allocate
their resources more effectively. By making these payments a priority, individuals can ensure that they are
setting aside money regularly, which can help them achieve their financial goals over time. In addition to
helping individuals and families develop a habit of regular savings, insurance policies can also provide a sense
of security and peace of mind. By knowing that they have coverage in place, individuals can feel more confident
about their financial future and their ability to weather unexpected events or emergencies. This can help them
avoid financial stress or hardship and provide them with the flexibility and freedom to pursue their goals and
aspirations.

RETIREMENT BENEFITS

Insurance policies can provide retirement benefits to individuals in their old age. These benefits are typically
paid out periodically, either as a lump sum or as regular payments over time. Retirement benefits are designed to
provide individuals with a source of income after they have retired from their job or reached a certain age and
can help them maintain their standard of living and meet their financial needs. Retirement benefit provides
individuals with financial support during their retirement years. These policies are typically purchased during an

17
individual's working years, and payments are made into the policy over time. Once an individual reaches
retirement age, they can begin receiving payments from the policy to supplement their retirement income.

The amount and frequency of retirement benefit payments will depend on the specific policy and the terms of
the agreement between the policyholder and the insurance company. Some policies may provide a fixed amount
of income, while others may offer a variable amount based on market conditions or other factors. Some policies
may also offer the option to receive payments as a lump sum or as regular payments over time.

SOCIAL SECURITY

Insurance policies provide a sense of social security to insured individuals by offering specific amounts of
money for future expenses, such as their children's education or marriage. Many people choose to purchase
insurance policies with the specific goal of setting aside funds to meet these expenses, which can help them plan
for the future and ensure that they have the financial resources they need to support their families. For example,
a parent may choose to purchase a life insurance policy that provides a lump sum payout upon their death,
which can be used to pay for their children's education or marriage expenses. By making regular premium
payments into the policy, the parent can ensure that they are setting aside funds for these future expenses and
can feel more secure in the knowledge that their children will have the financial support they need to pursue
their dreams and aspirations.

MINIMIZING RISK

Life insurance is a financial product that provides coverage to individuals and their families in the event of the
policyholder's death. For families that depend on the income of one or more earning members, life insurance can
be an important tool for ensuring financial security and stability in the event of an unexpected loss. In the case
of the earning member of a family, life insurance can provide much-needed financial support to their dependents
in the event of their death. The policy is designed to pay out a lump sum or regular payments to the beneficiaries
named in the policy, which can be used to cover ongoing expenses and maintain the family's standard of living.
The amount of life insurance coverage needed will depend on a variety of factors, including the size of the
family, the earning capacity of the policyholder, and the specific financial needs and goals of the family. In
general, it is recommended that the coverage amount be sufficient to cover several years' worth of expenses,
including things like mortgage payments, tuition, and other ongoing costs. By purchasing a life insurance
policy, the earning member of a family can help ensure that their loved ones are financially protected and
provided for in the event of their untimely death. The policy can provide peace of mind and a sense of security,
knowing that their family will be taken care of and provided for in their absence
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DIFFUSION OF RISK

One of the advantages of insurance policies is that they offer individuals the flexibility to choose the type of
policy, sum insured, and mode of payment that best meets their needs and preferences. This means that
individuals can tailor their insurance coverage to match their specific risk management goals and investment
strategies.

1.13. DEFINITION OF CONSUMER PERCEPTION

Perception is defined as how a person selects, organizes, and interprets incentives into a meaningful and
consistent picture of the world. Two people may be exposed to similar stimuli under the same apparent
conditions, but how each person recognizes, selects, organizes, and interprets them is a highly unique method
based on each person's needs, values, and expectations. Perception has strategic connotations for marketers
because consumers decide based on what they perceive rather than objective actuality (Schiffman, Leslie Lazar
Kanuk, 2008).

1.14. DETERMINANTS OF CONSUMER PERCEPTION

Consumer perception refers to the way in which consumers interpret and make sense of information about
products and services in the marketplace. Several factors can influence consumer perception, including:

PERSONAL FACTORS

Personal factors such as age, gender, income, education, and cultural background can influence the way in
which consumers perceive products and services. For example, older consumers may have different perceptions
of technology products compared to younger consumers.

PSYCHOLOGICAL FACTORS

Psychological factors such as motivation, attitudes, beliefs, and values can also impact consumer perception.
For example, consumers who have a positive attitude towards a particular brand may perceive its products as
superior to those of competitors.

SOCIAL FACTORS

Social factors such as family, friends, and social media can also influence consumer perception. Consumers
may be influenced by the opinions of their peers, or they may be swayed by marketing campaigns on social
media platforms.

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SITUATIONAL FACTORS

Situational factors such as time, place, and context can also impact consumer perception. For example,
consumers may perceive a product differently depending on whether they are shopping in-store or online.

PRODUCT FACTORS

Product factors such as quality, packaging, branding, and pricing can also play a role in consumer perception.
Consumers may perceive a product to be of higher quality if it is well-packaged and branded, or if it is priced
higher than its competitors.

Overall, consumer perception is a complex process that is influenced by a wide range of factors. Understanding
these factors is critical for businesses looking to develop effective marketing strategies and build strong
relationships with their target customers.

1.15. CURRENT GLOBAL SCENARIO

As of 2020, the global life insurance market has been undergoing significant changes due to the COVID-19
pandemic. It had to deal with the direct and indirect effects of the pandemic on people's daily life, health and
economy. Compared to 2019, insurers experienced a drop in premium writings in 2020, particularly in the life
insurance sector, where premium amounts declined due to people potentially cutting back on non-essential
expenses. Despite worries over COVID-19 fluctuations, most insurers projected a quicker economic rebound
and higher spending on digital technology in 2022. The market predicts that revenues would increase globally
significantly in 2023.

To gauge a nation's insurance development, insurance density and insurance penetration are often utilized as
indicators. Insurance density expresses the proportion of premiums to the population, while insurance
penetration is represented as the share of insurance premiums to the country's GDP (per capita premium). In
2019, 46.34% of total premiums were life insurance premiums while 53.66% were non-life insurance premiums.

India holds the 10th position globally in terms of life insurance. In 2019, India's contribution to the global life
insurance market was 2.73%. The global life insurance premium increased by 1.18% from the previous year in
2019. India's share of the world non-life insurance market was 0.79% in 2019, with the global non-life insurance
premium witnessing a rise of 3.35% from 2018. In India, insurance penetration has steadily increased from
2.71% in 2001 to 3.76% in 2019 (life insurance 2.82% and non-life insurance 0.94%). In the same year,

20
insurance penetration in some emerging Asian countries such as Malaysia, Thailand and China were 4.72%,
4.99% and 4.30% respectively. In India, insurance density increased from USD 11.5 in 2001 to USD 78 in 2019
(life – USD 58 and non-life – USD 20). During the same period, the densities for Malaysia, Thailand, and China
were $536, $389, and $430, respectively. In 2019, global insurance penetration and density was 3.35% or $379
for the life segment and 3.88% or $439 for the non-life segment.

1.16. IMPORTANCE OF LIFE INSURANCE POST PANDEMIC

The COVID-19 pandemic has highlighted the importance of being prepared for unexpected events, and life
insurance can play a crucial role in providing financial security for loved ones in the event of the insured
person's death. For individuals who have dependents and are the primary earners in their households, life
insurance can help ensure that their families are protected and have a source of income to cover expenses such
as mortgage payments, college tuition, and daily living expenses. In the absence of life insurance, the sudden
loss of income due to the death of the primary earner can create significant financial hardship for the family.

Moreover, the pandemic has made it difficult for people to obtain life insurance due to the increased risk of
illness and mortality. However, it has also highlighted the importance of having a solid financial plan that
includes life insurance coverage to protect oneself and their family.

It is important to assess your life insurance needs and work with a financial advisor or insurance agent to find
the best policy for your situation. Life insurance policies can be tailored to meet specific needs, including term
life insurance, whole life insurance, and universal life insurance, among others. It is recommended to review
and update life insurance coverage periodically, especially if there are any significant changes in your life
circumstances, such as a marriage, birth of a child, or a change in your employment status.

In summary, the COVID-19 pandemic has made life insurance more important than ever before. It provides
peace of mind and financial security for one’s loved ones in the event of unexpected death.

1.17. IMPACT OF COVID-19 ON LIFE INSURANCE INDUSTRY

The Covid-19 pandemic and subsequent lockdowns have had a negative impact on the insurance industry, with
both life and non-life insurance businesses being affected. There has been a decrease in new policy sales, an
increase in policy lapses, and delays in premium payments. As a result, the industry has lost approximately four
million policies and premiums worth around Rs 45,000 crore. LIC stated that due to the middle-income group's
tendency to save more in response to the increasing risks and uncertainties of life during the continuous
lockdown, around Rs 30,000 crore of renewal premium was not received.
21
The continuous lockdown in FY 2020 resulted in many insurance companies providing a two-month grace
period for the revival of lapsed individual life insurance policies. However, there was lack of interest in
purchasing new insurance policies, particularly among the lower- and middle-income groups, as noted by some
insurance experts. This resulted in a significant decrease in new business in this demographic. High-income
individuals were the primary drivers of new business growth. Global Data Company's report indicated that the
life insurance industry in India experienced a 0.9% decline in 2020, compared to the 8.8% growth it saw in
2019. The decrease in demand for life insurance policies can be attributed to factors such as financial

uncertainties, job losses, and stagnant income growth, which have been exacerbated by the COVID-19
pandemic.

Although there was a surge in demand for pure insurance and health insurance products, the demand for unit-
linked and other life insurance policies was low. Due to the pandemic, many customers were hesitant to
purchase new policies or were postponing such decisions due to the shortage of liquidity and income
uncertainties. The life insurance industry has been able to rebound after the lockdown period by adopting
customer-centric and innovative solutions to maintain profitability and strength. Despite the COVID-19
pandemic situation, the insurance sector remains a core component of the economy and has experienced
relatively less impact. Although the pandemic has caused economic downturns, the insurance industry has not
been severely affected and continues to generate revenue, with significant growth potential in both life and
health sectors. The increased risk to life also prompted many customers to invest in term plans and other life
insurance policies, providing protection for themselves and their families against future uncertainties.

Furthermore, the online life insurance industry in India witnessed a considerable impact due to the pandemic.
The Insurance Regulatory and Development Authority of India (IRDAI) reported a year-on-year (y-o-y)
increase in both the number of life insurance policies sold and total premiums collected in June 2022, compared
to the same month the previous year. Customers now see life insurance as pure risk protection rather than a
protection-and-investment product, in part because of the psychological impact of COVID-19. Pure term plans
and protection-based products, such as ULIPs, are now preferred by customers over products that also serve as
investments. Customers have started valuing life insurance products, and the uninsured are now viewing life
insurance as an essential need.

Apart from that, in the wake of the pandemic, consumers are increasingly opting for online modes of
purchasing and renewing their life insurance policies due to the ease and convenience it offers. This trend has
prompted insurance companies to offer digitally enabled omnichannel systems and enhanced online

22
functionalities to cater to the evolving needs of their customers. Additionally, some insurers have introduced
new policies specifically designed to cover pandemics and epidemics.

Overall, the COVID-19 pandemic has resulted in significant changes in the Indian life insurance industry,
including a shift towards digital processes and a greater emphasis on financial protection for families.

1.18. LIFE INSURANCE COMPANIES IN INDIA

There are many insurance companies in India, both public and private. Here is a list of some of the major
insurance companies.

I. Public Sector

● Life Insurance Corporation of India (LIC)

II. Private Sector

● ICICI Prudential Life Insurance Company Limited

● HDFC Standard Life Insurance Company Limited

● SBI Life Insurance Company Limited

● Bajaj Allianz Life Insurance Company Limited

● Max Life Insurance Company Limited

● Aditya Birla Sun Life Insurance Company Limited

● Kotak Mahindra Life Insurance Company Limited

● Tata AIA Life Insurance Company Limited

● PNB MetLife India Insurance Company Limited

● Bharti AXA Life Insurance Company Limited

23
 ● Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited

● IDBI Federal Life Insurance Company Limited

● Exide Life Insurance Company Limited

● Future Generali India Life Insurance Company Limited

● Aviva Life Insurance Company India Limited

● Aegon Life Insurance Company Limited

● DHFL Pramerica Life Insurance Company Limited

● Edelweiss Tokio Life Insurance Company Limited

● Om Kotak Life Insurance Co. Ltd

● Birla Sun Life Insurance Co. Ltd

● ING Vysya Life Insurance Co. Ltd

● Reliance Life Insurance Co. Ltd

● Sahara Life Insurance Co

● Shriram Life Insurance Co. Ltd

● Star Union Daichi Life

1.19. CHALLENGES FACED BY THE INSURANCE INDUSTRY

● LOW PENETRATION AND DENSITY RATES

24
 Despite the growth of the insurance industry in India, the penetration and density rates remain low
compared to other countries. This means that a relatively small proportion of the population has
insurance coverage, and the amount of insurance per capita is low.

● LOW HOUSEHOLD INCOME AND POOR RURAL PARTICIPATION

A large proportion of the Indian population lives in rural areas, and many people have low household
incomes. This makes it difficult for them to afford insurance premiums, and the lack of financial literacy
in rural areas also makes it harder for them to understand the benefits of insurance.

● INADEQUATE CAPITAL INVESTMENT

Insurance companies require significant capital investment to grow their businesses, but this has been a
challenge in India. The regulatory environment for foreign investment in the insurance industry has also
been restrictive in the past, limiting the amount of capital that can be invested in the sector.

● LACK OF ACCESS AND FINANCIAL LITERACY

Many people in India lack access to insurance products and financial services more broadly. This is
partly due to a lack of physical access to insurance providers in rural areas, but it is also linked to a lack
of financial literacy and awareness.

● PREDEMINATION OF TRADITIONAL INSURANCE PRODUCTS AND INVESTMENT

APPROACH

Traditional insurance products, such as endowment plans, have long dominated the Indian market, and
there has been relatively little innovation in terms of new product offerings or investment approaches.
This has made it harder for insurers to differentiate themselves and attract new customers.

● TECHNOLOGY DISRUPTION

Advancements in technology have disrupted traditional insurance models, with new companies offering
innovative products and services that are more convenient and cost-effective for customers. Traditional
insurance companies have struggled to keep up with these changes, risking losing market share to more
agile competitors.

These challenges have contributed to a relatively low level of insurance penetration in India, but the industry has
shown significant potential for growth in recent years as companies have started to address some of these issue

25
1.20. CHANGING TRENDS & CHALLENGES IN INSURANCE INDUSTRY DURING
THE PANDEMIC

● INCREASE IN ONLINE INSURANCE BUSINESS

During the pandemic, people were more inclined towards online insurance. Many people purchased
insurance online, resulting in a 30 to 40% increase in the insurance industry.

● INCREASED DEMAND FOR PURE INSURANCE AND HEALTH INSURANCE

With increased life uncertainty in the Covid-19 pandemic and an increase in the number of corona
positive cases. People began to purchase more pure insurance and health insurance policies. During and
after the lockdown, there was a significant increase of more than 35% in health and term insurance
plans.

● MORE UNDERSTANDING OF THE VALUE OF LIFE INSURANCE

Prior to the COVID-19 pandemic, there was very little overall insurance penetration, but the increased
life risk associated with the pandemic raised understanding of the value of life insurance. As a result,
more people are purchasing policies both online and offline in order to reduce the risks and uncertainties.

● MORE CUSTOMER-FOCUSED CREATIVE SOLUTIONS

Because of the unpredictable times, insurance firms focused more on providing customer-focused
innovative solutions that provide a wide range of benefits in addition to Covid risk coverage.

MORE INSURANCE LAPSES AND A DELAY IN PREMIUM PAYMENTS

Policyholders' delayed premium payments were caused by job losses and income losses. Due to
financial insecurities, many policyholders were unable to pay premiums on time, resulting in the lapse of
their existing policies.

● REDUCTION IN THE DEMAND FOR NEW POLICY BUSINESS

Like other industries, the number of new policy sales significantly decreased for an uncertain amount of
time.

● DECREASE IN INVESTMENT OWING TO FINANCIAL AMBIGUITY

26
During the lockdown period, many people were reluctant to invest in new policies due to the decline in
market values and interest rates.

27
 CHAPTER – 2
RESEARCH METHODOLOGY

2.1. OBJECTIVES OF THE STUDY

The objectives of the research must be clear, measurable, and doable. The defined research objectives serve as a
map for the study and help in keeping the entire research project in focus. The following are the objectives of
this study:

1. To study customer's perception towards life insurance post pandemic.

2. To assess the reasons given by policyholders for purchasing a life insurance policy.
3. To understand the changing trends & changes in demands of customers during the pandemic.
4. To understand the challenges faced & decline in demand of new policies during the pandemic.

2.2. SCOPE OF THE STUDY

The present study attempts to understand the policyholders' perceptions towards life insurance policies offered
by different life insurance companies operating in Mumbai after the Covid-19 pandemic.The study does not
cover other cities and other regions.The policyholders in Mumbai are the main source of primary data.

Furthermore, it also seeks to gain a better understanding of the level of awareness of various aspects related to
life insurance policies among life insurance policyholders in Mumbai.Also,the changes in perception and
consumer buying behavior is examined in this study. It also examines different types of life insurance products
and services provided by different life insurance companies.

2.3. LIMITATIONS OF THE STUDY

Due to time and resources constraints, this study suffers from the subsequent limitations:

1. The study has been conducted only in Mumbai

2. The sample size is limited to 107 customers.
3. The study is based on a primary survey that was carried out using a structured questionnaire.
Respondents may have intentionally provided the answers they do not actually experience, and therefore
subjectivity may be present in their answers.
4. It is assumed that respondents answered honestly and objectively, without any bias. However it is
impossible to avoid the respondent's bias in the study.

28
 5. Data collected from respondents may not represent the entire population. Likewise, the study results may
not generalize to the entire population.

2.4. SIGNIFICANCE OF THE STUDY

The COVID-19 pandemic has brought about significant changes in the public's perception of risk management
techniques. With the fear of contracting the virus and its potential impact on health and financial stability, there
has been a surge in the demand for health insurance and term life insurance. According to a PwC report, this has
resulted in an 18% growth rate in the insurance industry. However, despite the increased demand for insurance
products, there is still a significant portion of the Indian population that does not have life insurance. As per the
latest reports, 988 million people in India do not have life insurance, which is 56% of the total population. This
highlights the need for further research and studies in the area of public perception towards life insurance.It is
essential to understand why such a large portion of the population remains uninsured and what factors
contribute to this. Through this study , it is possible to gain insights into the barriers to insurance adoption and
identify strategies to increase awareness and understanding of life insurance products. Overall, further studies in
the area of public perception towards life insurance can help to bridge the gap in insurance penetration and
improve financial protection and security for individuals and families.

The present study can contribute to the development of marketing strategies by providing insights into the
factors that influence individuals' decisions to purchase life insurance products. By understanding the barriers to
adoption and the factors that motivate people to buy life insurance, insurance companies can develop more
targeted and effective marketing campaigns that can promote their products and services.

Furthermore, the study can help policymakers capture the changes in public perception during the pandemic and
develop policies that can support the growth of the insurance industry. By understanding the impact of the
pandemic on public life and environment, policymakers can identify ways to improve access to and affordability
of life insurance products, and develop regulations that can ensure better consumer protection.

2.5. SELECTION OF THE PROBLEM

Identifying the topic is a crucial aspect of formulating a well-defined question that leads to a deeper
understanding of the topic. Problem formulation plays a significant role in the research process as it guides the
collection of relevant data to solve the research problem. Based on the existing research literature, it is evident
that researching customer perception and satisfaction can be an intriguing and significant area of investigation
29
within the industry. In addition, the COVID-19 pandemic has had a significant impact on the life insurance
industry and has highlighted the importance of life insurance as a financial safety net, leading to changes in the
way insurers operate and manage risk. The insurance sector has played a crucial role in the growth development
of the Indian economy. Among the various insurance sectors, the Indian life insurance industry occupies the
leading role and has dominated the Indian insurance sector in recent decades in terms of perception towards
insurance policies. Most of the research focused on customer awareness about the various life insurance
products and customer satisfaction in life insurance. The purpose of the study is mainly descriptive and
explanatory. It is descriptive because descriptive data was collected through an extensive customer survey. It is
also explanatory as it has attempted to explain the relationship between the Covid-19 pandemic and its impact
on customer perceptions and buying behavior towards life insurance policies.

2.6 . SAMPLE SIZE

Sample size refers to the set of things that must be chosen from the universe to form a sample. The decision on
sample size must be made before selecting the sampling tactic. The sample size should be neither too large nor
too small. Data for the study are collected from Mumbai only. The data is collected from 107 respondents. The
study population consists of different age groups from under 25 years to 50 and over. Respondents are made up
of all types of customers, such as. Private and public sector employees, business people, students, housewives
and housewives will be considered for the study. A questionnaire was prepared for data collection. The
questionnaire was distributed to all 107 respondents. Each was duly completed with appropriate information and
included in the study.

2.7. DATA COLLECTION

Data plays an important role in research. The data must be collected according to the requirements of the
research project. Data collection includes the collection of primary data and secondary data. In this study,
primary data is collected and supported by secondary data. To evaluate the customer’s perception, primary data
is collected using a questionnaire. Structured questionnaires are prepared and used for data collection purposes
and schedules. The questionnaire contained multiple choice questions. The first part of the questionnaire
included demographic information and the second part of the questionnaire included various questions regarding
customer’s perception and awareness regarding life insurance.This questionnaire was submitted to a sample of
107 customers residing in Mumbai . The secondary data source such as journals, books, Ph.D. Dissertation,
internet and published reports were used for literature search, reference and also for better reliability of the
study.
30
2.8. TABULATION OF DATA

Tabulation is a technique or process of summarizing and arranging the data in a compact form for further
analysis. It prepares quantitative data in an understandable and concise form. Tabulation is the sorting and
counting of data and their assignment to relevant classification categories. It converts mere statistics into
meaningful statistical tables for analysis. A tabular representation of the data is required because it allows for an
ordered arrangement of the data for analysis. It acts as a link between the organization of data and the
interpretation of data.

There are two methods used for tabulating data. They are manual tabulation and mechanical tabulation. Manual
tabulation is done with the help of hands while mechanical tabulation is done with the help of computers. The
present study is performed using mechanical tabulation with the aid of computers. This method is required when
the number of variables is large and the sample size is also large.

31
 CHAPTER 3
REVIEW OF LITERATURE
3.1. INTRODUCTION
The process of reviewing related studies involves a methodical approach to finding and examining documents
that contain information relevant to the research problem at hand. This involves identifying and analyzing
materials that have been published by recognized scholars and researchers on the subject matter. A thorough
understanding of the existing literature on the topic can help in uncovering what is already understood, what
research has been conducted, the techniques utilized, and what areas require further investigation.

The review of literature is a fundamental aspect of research that involves examining and evaluating current
knowledge, research findings, and methodologies related to a specific topic. A literature review is a written
composition that aims to summarize and critically analyze important aspects of the existing body of knowledge.
A well-constructed literature review should have a logical flow of ideas, utilize current and pertinent references,
provide an objective and all-inclusive view of the research, and identify any gaps that require further
investigation.

Review of related literature enables the researcher to gain an understanding of the current knowledge and recent
developments in their chosen area of research. It helps to classify concepts and formulate the methodology by
identifying the limitations of past research. Therefore, a comprehensive review of past research related to the
topic is essential. The main objective of this process is to examine the theories and concepts that can serve as a
foundation for the current study. The literature review serves as a means to obtain insights and
recommendations from previous research. The present study is “A Study on customer's perception towards life
insurance after the pandemic” is an attempt to study customer’s perception towards life insurance after the
COVID –19 pandemic and to examine the overall impact of the pandemic on the Indian life insurance sector.

3.2. REVIEWS ON INDIAN LIFE INSURANCE SECTOR:

Thampy Ashok and Sitharamu S. (2002) conducted a study on the potential of life insurance in India: An
economic approach. The aim of the study was to estimate the size of the existing market for individual life
insurance in India. The study was based on secondary data. The result of the study shows that the insurance
penetration and density in India was very low in an international comparison. However, these offer prospects for
economic growth and development opportunities for the Indian insurance market. Due to liberalization and
private entry into the insurance sector, the industry can continue to grow rapidly. With a large proportion of the

32
population in India still being uninsured, there is huge potential for insurance companies. The study also shows
that the actual consumption of insurance depends not only on insurance demand but also on insurance supply.
Therefore, insurance providers must provide a tailor-made insurance quote.

N. Kannan, Dr. N. Thangavel (2008)- This study explains the origin and growth of the insurance sector and
the financial status of private insurance companies. The role of information technology and the personalized
experience of consumers will meet customers' search requests.

Dr. Saif Siddiqui (2009)-The article explains the origin and growth of the insurance industry in India and he
has used the secondary data from annual reports to give a clear picture about the life insurance industry in India
in both the public and private sectors. LIC has been found to be fairly settled in India only as a life insurer

S. Kartheeswari and K. Rajeswari (2011) -The paper analyzed both the public and private insurance
companies' roles in general insurance as well as their differences. The analysis used the gross premium collected
as the criterion, and it was found that the infrastructure of private insurance companies is superior to that of
public general insurance companies in terms of premium collected. Private companies have an advantage over
public companies due to the nature of their marketing efforts and awareness campaigns. The milestones in the
growth of Private General Insurance Companies are claim settlement procedures. It has been discovered that the
private insurance players are more heavily tapping the policyholders.

Venkatesh Babu S (2012) describes the current state of the insurance industry, Indian insurance markets, and
distribution channels. It has been discovered that the Insurance Industry in India is a potential market with
numerous challenges.

Gaikwad and Vibhute (2013) noted that the insurance industry is in a turbulent situation. This study will allow
insurance companies to know the customers' opinions on the insurance industry and in particular the opinions on
traditional and ULIP plans. In addition, the company and consultants would understand the exact pattern of
demand, the parameters of client satisfaction, the factors that clients consider when choosing the guidelines and
opinions of advocacy consulting by which the company and consultants base their sales program, sales speech ,
their local strategies and the like . A study was conducted among policyholders in the city of Kolhapur, India.
The researcher concluded that the LIC is the main player among the sample customers. Traditional plans tend to
be preferred by sampling followed by ULIP, and customer preferences when choosing an insurance company
are based on a company's quality of service, reputation, trustworthiness and future plans/vision

Dr. Nena Sonal (2013) conducted a performance assessment study of India's Life Insurance Corporation (LIC).
The study objectives were to understand the importance of life insurance in human life, know how LIC works,
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identify the main attributes for the success of plans and measure the performance of LIC of India. The study is
based on secondary data collected from the LIC's annual report for 5 years from 2005-06 to 2009-10, various
published journals and literature of the LIC. Data collected as classified, tabulated and analyzed with charts,
tables and F-test. The year 2005/06 was taken as the base year for the analysis and compared with all other
years. Analysis of expenditure shows that the amount of claims settled was highest in 2008/09 and lowest in
2006/07, while all other expenditures show an upward trend from 2005/06 to 2009/10. The result of the F-Test
shows that there is no significant difference in the cost of the trial unit over the period of the study. The overall
performance of LIC shows no major changes in performance over the study period, meaning that LIC's
performance is unchanged and the market value of their products has been maintained. However, due to the
entry of private players, the competition for LIC is increasing and LIC has to make more effort to continue its
business.

Reddy and Jahangir (2015) concluded that the insurance sector in India faced several problems, namely a low
premium gross domestic ratio and low penetration of insurance policies. Customers perceived the use of
insurance for tax savings and their perception of life insurance was positive. There were many ways for
insurance companies to unlock the growth potential

Rajkumar and Kannan (2014) found that Life Insurance Corporation of India still enjoyed great popularity
among the Indian crowd. People still preferred LIC over other private players. It was found that the number one
reason a customer buys an insurance product was for tax refund. This pattern was very pronounced among
younger people who had recently become financially independent. Older people considered life insurance to be
the most important reason, and broker knowledge greatly influenced a customer's purchasing decision.

Barik Bhagbat and Patra Rakesh (2014) conducted a study on Emerging Trends in Insurance. A study in the
Indian life insurance industry. The study aims to analyze the recent life insurance trends and growth drivers and
their impact on the overall industry. Secondary data were collected from various books, journals, previous
articles, websites, and peer-reviewed journals to conduct a study. The sale of life insurance policies by agencies

is dominant. Due to the increase in both public and private banks, a new channel called Bancassurance has
expanded significantly. Industry in India needs special care as the industry is one of the fastest growing. More
and more players are planning to enter the industry and hence it is important to understand customer
expectations and attitude towards this product.

Naidu Kalpana C. and Dr. Paramasivan (2015) conducted a comparative study of public and private life
insurance companies in India. It aims to study the public and private life insurance companies in India, compare
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customer perceptions of service quality and analyze the performance of public and private life insurance
companies in India. The relevant and required data was collected from textbooks, national and international
articles, as well as from the LIC annual reports and the IRDA annual report, and some data was also collected
from websites. The study results assess that the public sector, i.e. LIC, occupies a solid liquidity position among
all insurance players. On the other hand, among private players, companies like Future Generali, Bajaj Allianz,
IDBI, Sahara, Shri Ram and SBILife Insurance have a solid liquidity position. In terms of the factor influencing
policyholders towards life insurance, in both private and public sector life insurance companies, safety is the
most important and influential factor when purchasing insurance, while in terms of service quality, both private
and public sector customers are involved and the service provider is dissatisfied.

Dr. Saxena Garima and Sharma Priyanka (2017) conducted a study on the penetration of the life insurance
sector in India. Focusing on the awareness and penetration of the life insurance sector in Indian society and its
density, it also proposes some measures to increase the penetration and density of the life insurance sector and
create social security. The study was based on secondary data collected from various journals, articles and
IRDA reports. The study result shows that the insurance industry has the potential to grow 2x to 2.5x by 2020,
but there is a large gap between the insurable and insured population, while most of the insured are
underinsured. Therefore, it is required on the part of insurance providers to spread awareness among the people.
In addition, government and insurance companies should take the necessary steps to educate people about the
importance of insurance. In addition, innovative products should be initiated, especially with small savings, and
the distribution channel for rural areas should be strengthened.

Agarwal Shilpa and Mishra A.K. (2017) undertook a study of the life insurance industry of India past, present
and future: A study by the LIC of India. The aim of the study is to analyze LIC's pre- and post-LPG
performance and growth, as well as to analyze LIC's future business trend. Secondary data was collected from
the published annual report of the LIC, the LIC of India website, the IRDA website, journals and journals of the
LIC of India and reference works. The study result shows that the life insurance sector has experienced
remarkable growth after the reforms. LIC has also shown tremendous growth in its business and enjoys
immense benevolence in the market, while private players also provide LIC with fierce competition and in order
to compete in the market, LIC needs to make more efforts in various fields to expand and improve.

Chandrapal J.D. (2019) conducted a study on the impact of liberalization on the Indian life insurance industry:
A truly multivariate approach. The primary objective of the study was to examine the impact of liberalization on
the Indian life insurance industry in terms of overall functional performance. A descriptive research design was
used to conduct the study and hypotheses were formulated. Responses from 552 respondents were collected
35
from life insurance policyholders. Multivariate Analysis of Variance (MANOVA) and Exploratory Factor
Analysis (EFA) with Principal Component Analysis (PCA) were performed to test the hypothesis. A total of 18
variables were summarized in 3 factors. The study result shows that liberalization has had a positive impact on
the Indian life insurance industry in terms of marketing mix transformation, service quality assessment, and
insurance education and awareness. The above three factors have led to the overall growth and development of
the Indian insurance industry. The study result also shows that there was a large gap between perceived service
quality and expected service quality. Therefore, Indian life insurers need to innovate in the field of service
delivery.

3.3. REVIEWS RELATED TO BUYING BEHAVIOR

Dr. Sahu Praveen, Jaiswal Gaurav and Pandey Kumar Vijay (2009) conducted a study on consumer
purchasing behavior towards life insurance policies. The aim of the study is to assess the factors influencing
consumer perceptions towards life insurance and to develop and standardize a measure for evaluating the
investment behavior of life insurance services. The researcher selected 150 participants from Gwalior to
complete the study and z-test and factor analysis were used to complete the study. The result shows that
consumer loyalty, service quality, process simplicity, satisfaction level, company image and customer
relationship are the main factors that play a role in the development of consumer perceptions towards life
insurance. In addition, there is an equal perception of insurance among male and female respondents, as well as
positive investor attitudes towards insurance.

Yadav Babita and Tiwari Anshuja (2012) conducted “A study on factors affecting customer investment
towards life insurance policies.” The study aimed at exploring various factors influencing customer investment
decisions in life insurance and preferences of customers while taking life insurance decisions. Hypotheses were
constructed and the study was conducted on 150 respondents of both rural and urban areas of Jabalpur district
during July 2009 to July 2010 for 1 Year. The collected data was then analyzed using chi-square, correlation and
weighted average score. Study outcome reveals that respondents between the age group of 30 to 40 years found
to be more interested in buying life insurance policy. The results also show that customers prefer LIC for safety
and trusted names, while preference is given to private companies because of the higher return provided. When
it comes to private insurance players, respondents prefer SBI over other insurers. Company’s reputation is the
major factor that attracts the most to policyholders to purchase insurance policies.

Thakkar (2012) found people's speculative behavior with added certainty and also recognizing the problems
they are considering. The investigation was conducted among the lenders (policyholders) of the city of

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Kolhapur. His research found that the insurance advisor is the primary factor influencing life insurance
customers' purchasing decisions. They rely heavily on the protection guide.

Prajapati and Barad (2013) clarified that life insurance is essentially a measure against the security of life or
against unexpected events or the death of people. There is monetary security against such dangers. Each
individual's reason for wanting extra security may be different. Currently, there are private extra security
organizations and a public civil protection organization. This enormous number of life insurance organizations
and wide selection of items confuses funders as to which items to buy and from which organization. Therefore,
advertisers are intrigued to use the speculative example of funders with added security to shape their
presentation procedures. The current research is an attempt to understand the behavior of people with life
insurance and, moreover, to identify the problems they are considering. The research found that Insurance guide
is the fundamental influencing factor in the selection of life insurance financiers and relies heavily on the
insurance advisor.

Dr. Singh Harnam (2014) conducted an empirical study on the behavior of life insurance customers in Uttar
Pradesh. The main aim of the study was to assess the socio-economic status of the respondents and its impact on
their purchasing power. To carry out the study, primary data was collected from 255 randomly selected
respondents. Other required data were also collected through group discussion and face-to-face interviews with
policyholders. To arrive at the result, the data was then analyzed using simple percentage analysis. The results
of the study show that people in the 26-45 age group are more insurance conscious, while most people buy
insurance for tax refund and family security purposes. In addition, the study also shows that in the insurance
industry, insurance agents are a more suitable medium to receive information and advice.

Dr. Mathur Dipin and Tripathi Ashish (2014) conducted a study on the factor influencing customer choice
for insurance companies. A study by AjmerCity. The aim of the study is to identify different factors that
influence the customer's choice of an insurance company and to determine the relative importance of each factor
influencing the customer's choice. In addition, the aim is to examine the influence of gender and educational
level on factors influencing the customer's choice of an insurance company. At the end of the study, data was
collected from 120 respondents who had experience with offline and online insurance systems. Factor analysis
and t-test were used to analyze the data. The result of the study shows that the top 10 factors influencing the
choice of customers are online transactions, connectivity with the bank, speed and efficiency of transactions,
clear communication, availability of the premium collection center, company reputation, professionalism and
credibility of staff , fast and efficient counter services, easy opening and account, secure internet banking.

37
Customers also consider factors such as technology, employee responsiveness, and company reputation when
setting policies. Furthermore, there is no significant impact of gender and education on the factors influencing
customers' choice of the company.

R. Uppily (2016) undertook a study on consumer behavior of life insurance products with reference to private
bank employees in Chennai. The objectives were to identify the most preferred life insurance company, analyze
the insurance policy characteristics that most attract insurers, analyze policyholder satisfaction levels, and
analyze the difficulties policyholders face when purchasing insurance. Required primary data were collected
using a structured questionnaire. A survey was conducted among 54 employees of a private bank in Chennai.
Simple percentage analysis, frequency analysis, and crosstabulation were performed for conclusion. The study
results show that the majority of respondents believe that hedging against future uncertainties is the most
important factor influencing the purchasing decision for an insurance policy followed by risk coverage. The
majority of respondents buy policies exclusively through agents. A significant number of respondents are also
satisfied with the services provided by their respective insurance company, while most of the respondents had
difficulty understanding the terms of insurance when purchasing life insurance.

Sidhardha D. and Sumanth M. (2017) conducted a study on consumer purchasing behavior towards life
insurance: An analytical study. The aim of the study was to identify and analyze the factors that influence
investors' choices when choosing life insurance policies and to make suggestions for improving marketing
strategies in order to design policies in accordance with customer behavior based on the study . To conduct the
study structured questionnaire was designed and distributed to 150 randomly selected respondents. Tables and
graphs were used to analyze and interpret the results and draw conclusions. The results of the study show that
36% of customers consider return on investment before choosing an insurance company, followed by expert
opinion, company brand name, service quality, and product quality before choosing an insurance company. It
also shows that 36% of clients invest in insurance for growth and ROI, followed by tax benefits, family risk
coverage, while 81% of respondents prefer to invest in LIC as a private life insurance company.

3.4. REVIEWS RELATED TO PERCEPTION ON LIFE INSURANCE

Rudra Saibaba (2002) conducted research on women's perceptions and attitudes towards life insurance policies
in her research article entitled “Women's Perceptions and Attitudes towards Life Insurance Policies”. According
to him, 75 percent of women said life insurance plans provided protection against future risks, 58 percent of
women believed insurance provided accident protection, nearly 41 percent of women considered insurance
beneficial for obtaining home loans, and 70 percent of respondents were satisfied with the services offered by

38
the company. 58.75 percent of the women were aware of the different types of policies available with the
company and 41 percent of those surveyed had not purchased any new policies.

Chowdhury Tamzid , Rahman Masud and Afza Sayeda (2007) undertook a study of customer perceptions of
insurance companies in Bangladesh. A study based on the SERVQUAL model. The study aimed to address
customer behavior and attitudes towards insurance companies in the public and private sectors in Bangladesh in
order to propose policy measures to improve the process of insurance service delivery in Bangladesh. A
preliminary version of the questionnaire was designed to collect information from 416 respondents from the city
of Dhaka. The pre-test was also conducted several times to ensure wording, order of questions, etc. The
collected data were analyzed by frequency distribution, simple percentage analysis, chi-square, t-test and F-test.
The study result shows that people in Dhaka city prefer private insurers more than supranational insurers due to
better services of private insurers. The majority of respondents choose an insurance provider with the influence
of salespeople or agents. The reputation and reliability of the insurance company are the most important factors
in respondents' decision to choose an insurer. Also, there is a difference between gender and their preferences
for the type of insurance company. Male respondents tend to prefer private insurers, while female respondents
tend to prefer public insurers. There is no difference between respondents' education and income and their
preferences for the type of insurance company.

Ahmed (2013) concluded that customers in rural India had low awareness and understanding of life insurance
policies and were not fully aware of the various activities of life insurance companies. The growth of the
insurance sector in rural India has been impacted by customer perceptions that life insurance policies were
purchased solely for tax benefits. Therefore, insurance companies should adopt a customer-centric approach
instead of a product-centric approach to sustainable growth in rural India.

Dr. Singh Shamsher, Dr. Sirohi J. Naveen and Ms. Chaudhary Kumkum (2014) conducted a study on
customer perceptions regarding the service quality of insurance companies in the NCR Delhi region. The main
aim of the study was to find out the factors that influence the service quality of life insurance providers. In
addition, the study also aimed to examine the impact of demographic factors on customer perception and service
delivery. Data was collected through a structured questionnaire from 139 respondents. Factor analysis and
correlation analysis were used to reach conclusions. The study result reveals 4 factors related to life insurance
viz. Factors such as responsiveness, comfort, tangibility and security. Furthermore, the correlation test shows
that there is a positive correlation between demographic characteristics and service quality parameters.

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Dr. Jahangir Y. and Reddy Rajavardhan P. (2015) conducted a study on customer perceptions of life
insurance services in the rural market. The main aim of the study is to examine the rural population's perception
of life insurance services. To complete the study, primary data was collected through a survey of 120
respondents. Percentage analysis and ANOVA technique were used to reach conclusions. The result of the study
shows that age has a significant impact on life insurance awareness, while in the case of gender, women know
less about life insurance services in India. The study result also shows that consumers' perception of the life
insurance police is positive. There are still some actions needed from the marketers side to develop the market

Deshmukh Sandeep, Dr. Jadhao Rajiv and Dr. Panchariya Ram (2015) conducted a study on Customer
Perceptions of Purchasing Life Insurance: A Critical Analysis of the Life Insurance Sector in Nagpur. The aim
of the study was to examine various reasons that prompt customers to purchase life insurance and examine and
rank the reasonable reasons for purchasing life insurance in Nagpur city. The study was descriptive in nature
and was limited to the city of Nagpur only. Primary data were collected using a structured questionnaire
constructed using a 5-point Likert scale. To conduct an investigation, 200 respondents from Nagpur district
were conveniently selected. Simple percentages and means were used to analyze the data collected. Analysis of
the data shows that the majority of respondents buy life insurance for savings, followed by risk coverage, quick
settlement of previous claims, well-known agents/officials, reasonable premium for insurance, image and
popularity of companies and politics and tax savings. The study also shows that the respondent prefers savings
and risk protection over tax savings.

Joshi Nirav R. and Shah Suraj M. (2015) conducted an empirical study on consumer perceptions towards
health insurance in Ahmedabad City. The main objective of the study was to identify factors influencing health
policyholders and to examine their perceptions towards life insurance. To complete the study, primary data was
collected from 100 conveniently selected respondents using a structured questionnaire from the Ahmedabad
region. Frequency analysis, reliability analysis and factor analysis were used to test the hypothesis. The data
analysis shows that the majority of respondents, i.e. 76 percent have their own insurance, while the remainder
have opted for a family floater plan. A significant number of respondents prefer public sector companies for
their health insurance. Furthermore, the majority of respondents prefer to make the decision to purchase a health
insurance policy themselves or have their decision influenced by agents. Risk coverage and protection against
high and uncertain medical costs are the most important goals when purchasing health insurance.

Dr. Bhargava Monu and Lulla Reenu (2015) conducted a study on changing consumer perceptions towards
insurance products. The aim of the study is to analyze changing consumer perceptions for different types of
insurance products offered by companies and to analyze customer perceptions towards insurance products.
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Primary data was collected through a structured questionnaire by analyzing 500 respondents. Simple percentage
analysis and chi-square test were used to test hypotheses. The study shows that the young population is more
interested in the private sector, while the elderly are more interested in LIC because they feel safe and secure.
The study also shows that those surveyed perceive insurance products as an instrument for good risk protection
and as a good form of investment.

Chaudhary Sandeep and Kaur Jasneet (2016) conducted a study on consumer perceptions of life insurance
policies: A factor-analytic approach. The study focuses on determining consumer awareness of life insurance
policies and the number of consumers who have actually invested in life insurance policies, and determining
consumer satisfaction levels with respect to private and public insurers. The aim of the study was also to
examine the characteristics that consumers prefer when purchasing life insurance. 100 participants were
conveniently selected to complete the study. Percentage method, reliability analysis and factor analysis were
used to analyze the collected data. The study results show that all respondents know about life insurance and the
majority of respondents are satisfied with the services provided by life insurers. When buying insurance, there
are six main factors that affect it, namely, customized and timely services, better business reputation, effective
service quality, customer convenience, tangible benefits, and a healthy customer relationship.

Subashini V. and Kishori B., (2016) conducted a study on investor perceptions of life insurance with specific
reference to Max Life Insurance PrivateLimited. The main objective was to examine the investors' opinions on
life insurance of Max insurance customers, to determine the attitudes of customers towards Max Insurance and
to identify different factors that are responsible for the choice of Max life insurance policy. The study was based
on primary data. The result of the study shows that investors have different perceptions of Max life insurance.
The majority of respondents are self-motivated and influenced by newspapers. Respondents looked at life
insurance for risk coverage, returns on the investment, and savings opportunities. The majority of investors
expect a return of 11 to 15 percent.

Muthusamy A. and Dr. Yuvarani R. (2016) undertook a study of factors influencing perceptions and
behaviors in marketing life insurance products related to LIC in Salem County. The study aimed to measure the
factors influencing respondents' behavior and perceptions when purchasing life insurance products from LIC.
The study is based on primary data collected from 150 respondents in Salem County. Study results show that the
majority of investors prefer LIC over other insurance companies. In addition, the company's reputation is the
main feature that makes respondents buy LIC policies, followed by a money-back guarantee, risk coverage, low
premium and easy access to agents. A majority of respondents in Salem District prefer a money-back policy to

41
purchasing LIC, followed by a unit-linked insurance plan from private life insurers. Additionally, very few
respondents expressed interest in purchasing a term plan from LIC.

Chaudhary Sandeep (2016) conducted a study on consumer perceptions of life insurance policies: a factor
analytical approach. The aim of the study was to determine the level of awareness, the level of satisfaction and
the factors that consumers prefer when purchasing life insurance. Primary data was collected through a
structural questionnaire from 100 respondents from the cities of Amritsar, Ludhiana and Chandigarh. KMO and
Bartlett's test were used to arrive at the end of the study. The study result shows that the main reason for
investing in LIC is for savings purposes and that the majority of investors prefer traditional LIC plans over
ULIPs. The study also extracted six factors that influence the purchase decision, namely, customized and timely
services, better business reputation, effective service quality, customer convenience, tangible benefits, and a
healthy customer-customer relationship. The majority of respondents are satisfied with the services of their
respective life insurer.

Kad Tanima and Narang Aarti (2016) performed a pragmatic analysis and prediction of consumer
perceptions of life insurance products and services. The study objectives are to analyze the existing status of
insurance companies' protocols, investment parameters and policies and to analyze the degree of satisfaction of
customers with life insurance products and services. Primary data was collected from 100 respondents. Chi
square test, percent, charts and tables are used to analyze the data. The study results show that insurance
companies need to focus on an intensive awareness program to make customers aware of products, services,
various rules and regulations, etc. Businesses also need to reduce claims settlement times

Jas Gurung (2016) conducted a study on policyholder perceptions of insurance benefits in Pokhara village,
Nepal. The aim of the study is to analyze the perception or opinion of the insured people on the services
provided by the insurers, agents and appraisers in Pokhara village. The study is based on descriptive research
and 104 respondents were randomly selected and structured questionnaires were used to collect the data.
Various charts, graphs, percentage analyzes and tables were used to complete the study. The study result shows
that respondents were generally motivated by agents to purchase insurance, followed by friends and media, and
the top reason for purchasing insurance was to reduce risk, followed by tax refund, education, health, children’s
marriage. The majority of respondents also agreed that insurance creates awareness among policyholders and
insurance provides social security. When it comes to insurance services, the majority of respondents were
satisfied with the services provided by insurance providers and agents. The respondents' overall perception of
the insurance industry is satisfactory.

42
Dr. Kumar Pawan G.D. (2017) conducted a study on consumer preferences and perceptions of life and health
insurance. The study focused on discussing the preferences and perceptions of life and health insurance
customers and identifying which demographic factors influence the level of investment required to purchase
insurance coverage. The primary data was collected from 105 respondents who were randomly selected to
complete the study. Frequency analysis, cross tabulation and linear regression analysis were used to analyze the
collected data. The result of the study shows that the life insurance sums taken out by the respondents are very
small compared to their justification or necessity. The majority of those surveyed have taken out life insurance
to protect their family in the event of uncertainties. The reason for the low insurance coverage is also the high
premium amount. Educational qualification has a higher correlation and a higher impact on insurance coverage.

Joshi Mrunal C. and Takodia Tejal M. (2017) undertook a study on current trends and awareness and
preferences in the life insurance sector in India. The study objectives were to examine awareness of life
insurance companies operating in India and to know retail investor preferences among selected life insurance
companies. To achieve the goal, a descriptive study was conducted and the primary data was collected from 150
conveniently selected respondents from the city of Surat. Frequency analysis, chi-square test, and ANOVA test
were used to test hypotheses. The results of the analysis show that LIC is the market leader in terms of market
share, as well as claims settlement rate, new office openings, total premium collection, new policy issuance,
etc., with a market share of more than 73 percent. In addition, the analysis also shows that there is no significant
difference between different services offered by the same life insurance companies, but there is a significant
difference in the perception of different life insurance companies.

Dr. Banana Krishna and Naik Vijaya R. (2018) conducted a study on customer perceptions of life insurance
policies in India. (Referring to the district of Prakasam in Andhra Pradesh) The aim of the study was to focus on
the perception of life insurance policies. Primary data was collected through questionnaires distributed to
existing LIC employees and to LIC's customers who have made claims on their policies. 100 questionnaires
were distributed to respondents to collect data. The study results show that 78 percent of respondents have
shown a positive perception of LIC of India while 63 percent of respondents said there is a delay in claims
settlement by LIC of India. Another majority of respondents prefer a life insurance plan, followed by an
endowment plan, while the majority of respondents are completely satisfied with LIC's services.

3.5 REVIEWS RELATED TO AWARENESS OF LIFE INSURANCE

Dr Malick T.V., Dr. Selvam V. and Nazar Abdul N. (2011) conducted a study on the robust awareness of the
Indian insurance industry in Tier 3 cities. The study aimed to determine customer awareness of the private life

43
insurance industry in Vellore District and to examine the demographic profile of private life insurance
customers. 100 samples were selected for the entire study and a convenience sampling method was used for
sample selection. Data were collected through a structured questionnaire and frequency analysis, cross
tabulation and chi-square tests were used to interpret the data. The result of the study shows that the majority of
those questioned knew private life insurance companies, although the majority of those questioned had taken out
policies from LIC. The result of the study also shows that there is a strong connection between occupation and
level of awareness of private life insurance. The majority of respondents see life insurance as a tax saving tool,
making risk protection a secondary objective.

Dar Altaf Ahmad (2012) conducted a study on life insurance awareness – a Jammu & Kashmir State study.
The study aimed to understand and determine the consciousness of the people of Jammu and Kashmir state. A
pilot study was conducted and a modified questionnaire was distributed among 242 respondents to complete the
study and a chi-square test using SPSS-16 was used to complete the study. The study result shows that
awareness of insurance is low, while family and friends were the main source of information. The company
must take the necessary steps to raise awareness. Customer mindsets need to shift from pure tax savings to other
goals. The study also shows that socioeconomic factors such as family type, religion, occupation, family
income, level of education etc. has a greater impact on awareness. The company must understand people's
perceptions and then develop an insurance policy that is accessible, affordable and acceptable to all sections of
society.

Dr. Jain Dhiraj and Goyal Nikita (2012) conducted an empirical study on the level of awareness of various
rights and obligations among insured households in Rajasthan. The aim of the study is to measure the public's
awareness of their rights and obligations towards insurance companies. Hypotheses were formulated to achieve
the goal and the study was conducted on 117 respondents. Analysis of the data was performed using simple
frequency calculation, multiple frequency calculation, percentage analysis, cross-tabulation and chi-square test.
The result of the study shows that insured persons know their duties and responsibilities very well, while young
people know their duties very well compared to older people. Even among the uninsured, 80 percent have heard
of life insurance. However, policyholders also lack knowledge about various aspects of insurance. The
government must take appropriate steps to raise awareness and protect poor households.

C. Ramalakshmi and Dr. L. P. Ramalingam (2014) undertook a study on microinsurance awareness with
particular reference to LIC in India. The aim of the study is to analyze policyholder awareness of
microinsurance products. The required data was collected from 370 respondents in a face-to-face interview with
microinsurance holders in Madurai district. A simple percentage analysis and a chi-square test were used to
44
analyze the data collected. The study results show that the majority of rural and urban respondents are aware of
microinsurance, specifically LIC's Jeevan Madhur product. The top sources of information for customers are
LIC agents, followed by friends and family and support groups, while the majority of policyholders prefer to
pay premiums in monthly mode for all three types of microinsurance policies. The study also concludes that
there is no significant association between socioeconomic variables and period of awareness.

Narender S. and Sampath L. (2014) conducted a study to measure consumer awareness towards the life
insurance sector in India. The aim of the study was to make the customer aware and to know the customer's
satisfaction with the life insurance policy. The primary data was collected from randomly selected 100
respondents from the city of Hyderabad. Analysis and interpretation of the data was performed using statistical
techniques such as simple average and percent analysis. Another pie chart is used for graphical representation.
The result shows that the greatest financial needs of customers in the future are their children's education and
marriage expenses. The majority of respondents save money to meet their various future needs. Among
respondents, the majority of respondents feel adequately insured, while the rest feel they are underinsured. Most
people prefer life insurance because of the security for their family purpose. The majority of customers are
satisfied with the insurance company's products.

Banne Ashok S. and Bhola Sarang S. (2014) conducted a study to measure awareness of life insurance among
sample customers. The study aims to measure awareness of life insurance products among LIC customers. The
study was conducted in the Kolhapur district of Maharashtra. Data was collected from 2500 samples selected
using quota sampling methods. Simple percentage, correlation of coefficients and t-test were used to analyze
pooled data. The result of the study shows that the respondents give priority to life insurance for specific needs
such as child marriage, followed by the need for life, the risk of death, etc. Additionally, there is an opportunity
for LIC to create awareness of the need to read the terms of insurance and the need for a term schedule.

Dr. Thirupathi T. (2014), undertook a study of awareness of LIC policyholders in Salem County. The study
was conducted to assess policyholder awareness of Life Insurance Corporation of India and to analyze the
factors influencing policyholders in their preference for insurance companies. Hypotheses are formulated and
tested using simple percentage analysis, t-test, f-test, and chi-square test to arrive at conclusions. The result of
the study shows that the main respondents prefer the private insurance sector because they offer banking
facilities and other value-added services.

Kathirvel N. and Radhamani S. (2014) conducted a study on policyholder awareness of the services provided
by LICs with respect to Tirupur District, Tamil Nadu. The aim of the study is to determine the level of

45
awareness of the LIC services among selected respondents. To complete the study, a survey was conducted
among 300 respondents from Tirupur district in Tamilnadu. Data collected which is then analyzed using various
statistical tools namely descriptive statistics, percentages and chi-square tests to identify the factors driving life
policyholder awareness. The result of the study shows that awareness of life insurance is highest in the age
group over 40, while education is the driving force behind policyholder awareness. In addition, the businessman
has a high level of awareness compared to other respondents. Importantly, respondents who hold two or more
life insurance policies have a high level of awareness.

Dr. Shukla K.K. and Agarwal Jyoti (2014) conducted a study on the awareness and impact of life insurance
globalization in India. The study aimed to measure insurance awareness among insured and uninsured. The
study also aimed to measure awareness of rights, obligations and grievance mechanisms among insured
respondents. To come to the conclusion, the researcher conducted a survey of 400 respondents. The result of the
study shows that the majority of policyholders have purchased life insurance out of their own knowledge and
prefer LIC over other private sector companies due to trust and security. The majority of respondents see the
insurance policy as a risk protection tool and very few see it as an investment tool. In addition, the majority of
respondents believe that LICs need to improve their services and internet connections, while public sector
companies need to build people's trust to compete with private insurers.

Banne Ashok S. and Bhola Sarang S. (2014) conducted a study to measure awareness of life insurance among
sample customers. The study aims to measure awareness of life insurance products among LIC customers. The
study was conducted in the Kolhapur district of Maharashtra. Data was collected from 2500 samples selected
using quota sampling methods. Simple percentage, correlation of coefficients and t-test were used to analyze
pooled data. The result of the study shows that the respondents give priority to life insurance for specific needs
such as child marriage, followed by the need for life, the risk of death, etc. Additionally, there is an opportunity
for LIC to create awareness of the need to read the terms of insurance and the need for a term schedule.

C. Ramalakshmi and Dr. L. P. Ramalingam (2014) undertook a study on microinsurance awareness with
particular reference to LIC in India. The aim of the study is to analyze policyholder awareness of
microinsurance products. The required data was collected from 370 respondents in a face-to-face interview with
microinsurance holders in Madurai district. A simple percentage analysis and a chi-square test were used to
analyze the data collected. The study results show that the majority of rural and urban respondents are aware of
microinsurance, specifically LIC's Jeevan Madhur product. The top sources of information for customers are
LIC agents, followed by friends and family and support groups, while the majority of policyholders prefer to
pay premiums in monthly mode for all three types of microinsurance policies. The study also concludes that
46
there is no significant association between socioeconomic variables and length of consciousness.Dr.
Adgaonkar Ganesh (2015) conducted a study to know “Insurance awareness in India.” The study is aimed at
exploring the scenario of insurance in India and to find out why insurance awareness is necessary. The study
was based on secondary data which were collected from various sources viz., books, journals, websites and
professional magazines. The study outcome reveals that the majority of people have heard about life insurance,
the awareness is very low as many people relate insurance with death only. The study outcome also reveals that
there is a lack of knowledge about the various aspects of insurance even within policy holders. A high
percentage of households know about their ‘duty’ rather than their ‘rights’. Major respondents are unaware with
claim settlement procedure and time taken to settle the claim and the amount they receive if the policy is
surrendered.

Balaji C. (2015) conducted a study to measure customer awareness and life insurance policyholder satisfaction
related to Mayiladuthurai Town. The aim of the study was to create awareness of insurance and to determine the
level of awareness of life insurance policies. Sample sizes of 100 respondents were selected and simple
percentage and frequency analysis were used to analyze the data collected. The result of the study shows that the
majority of the respondents know about life insurance policies and that their knowledge comes mainly from
insurance agents. In addition, the majority of respondents are also satisfied with the majority of the services
provided by their respective insurers.

Dr. Rao Nagaraja and Dr. Kundu Sukanya (2015) conducted a study on awareness raising and initiatives of
life insurance companies in India for inclusive growth. The aim was to examine customer perceptions. The
study was conducted in rural areas of two districts of Karnataka, Bangalore and Kolar. 500 respondents were
randomly selected for the study from each county, i.e. 250 from each district. Another 200 agents from five
major insurance companies have also been connected; H. 100 from each district. Responses were collected
through 2 differently structured questionnaires from customers and agents. The ChiSquare test was applied to
interpret the results of the collected data. The study results show that there is a gap between the realities and the
marketing technique regarding the rural life insurance market. Awareness of life insurance is low and not
properly addressed. In addition, the products are not rural specific to attract the customers of the rural areas.
Overall, rural initiatives have a limited focus and the attention of private actors in the rural market is less
significant. Therefore, there is a strong need to develop this market for inclusive growth.

Dr. Nayak Sudhansu Sekhar and Dr. Sahu Anil (2016) conducted a study on the awareness of Indian life
insurance customers: A study. The main objective of this study is to measure customer awareness of life
insurance products and services. Primary data was collected through a questionnaire from 85 clients to complete
47
the study. Percent analysis, simple average analysis, reliability test, and ANOVA test are used to test the
hypothesis. The result of the study shows that life insurance is not known either in the city or in the country. The
respondents were not aware of the pure life insurance plan and the term plan. The study results also show that
socio-economic factors such as income, occupation, education have a greater influence on the awareness of the
respondents. The study also found that respondents with life insurance products other than money back and
endowment are aware but not fully aware, meaning life policyholders ignore pure coverage and focus on
investment and returns.

Suresh S. and Gopisetti Rambabu (2016) conducted a study on consumer awareness towards life insurance
products in Secunderabad Division. The main objective of the research was to understand the level of
knowledge of policyholders regarding their rights and obligations and terms of life insurance in Secunderabad
Division. 672 respondents (336 each from rural and urban areas) were selected and belong to 6 branches of LIC
in Secunderabad. Different statistical tools, namely reliability test, descriptive statistics and ANOVA were used
to analyze collected data. The result of the analysis shows that policyholders are more aware of their obligations
than their rights. Also, their awareness of the procedures and terms and conditions of insurance companies is
very low. In addition, there are significant differences in prominence and age group, education group, and the
number of policies purchased by the policyholders.

Pillai Rajani H. and Mala Madhu R. (2017) undertook a study of public awareness of life insurance policies:
a study conducted through Kotak Life Insurance Company. The purpose of the study was to find out sources of
information for policyholders of Kotak Life Insurance Company, to find out the level of awareness of Kotak
Life Insurance Company and to find out the reasons for policyholders to choose Kotak Life Insurance Company.
A descriptive and analytical study was carried out to achieve the desired objective. The primary data was
collected from 50 respondents from the city of Bengaluru. Frequency analysis and simple percentage analysis
were used to reach conclusions. Analysis of the data shows that friends and relatives were the primary sources
for obtaining information about Kotak Life Insurance Company, while awareness of Kotak Life Insurance
Company was lower compared to other insurance companies. Risk protection was the main reason for taking out
insurance.

J. Gnanadevan; B. H. Singu. (2017) conducted a study on customer awareness towards life insurance
investments with specific reference to Coimbatore City. The primary aim of the study was to determine the
factors that influence respondents when investing in life insurance and to examine the degree of awareness of
the respondents. 500 respondents were randomly selected from the city of Coimbatore and interviewed to collect
the desired data. Respondents were exclusively Bajaj Allianz Company customers. Frequency analysis was used
48
to analyze the collected data. The study results show that the majority of the population of the city of
Coimbatore is informed about life insurance. Their main source of insurance awareness is agents, followed by
friends and family. The majority of respondents expect security for their money, followed by higher returns and
risk coverage when investing in life insurance.

Suganya G. (2017), conducted a study to assess insurance awareness in India. The aim of the study was to
assess the current insurance scenario in India and to understand why insurance awareness is necessary. The
study was based on secondary data collected through various websites, journals and journals. Research results
show that even among the uninsured households, 60 percent of people in India have heard of life insurance.
However, people familiar with the concept of life insurance lack knowledge about various aspects of insurance,
and the same was observed among policyholders. Many policyholders do not even have the knowledge that
timely payment of the insurance premium is required to continue their insurance policy, the amount a
policyholder can receive if they return their life insurance policy, the total time it takes to make a claim etc.
Overall, most policyholders are less aware of their obligations and their rights.

Namiya C.V. (2018) conducted a study on customer awareness and preference of life insurance. The study
aimed to find out customers' attitudes, perceptions and awareness of life insurance and to assess the factors
influencing consumer perceptions towards life insurance investments. Hypotheses were formulated to achieve
the objectives and responses from 224 respondents were collected through a structured questionnaire. Graphs,
charts and chi-square tests were used to analyze the data collected. Study results show that in the past, the
majority of policyholders only invested their money in life insurance for tax exemption. However, people are
now more aware of life insurance and its importance to their lives, hence considering life insurance as security
and savings. However, now people are further along, people are more aware that LIC is the oldest company. The
study results also show that there is no connection between educational offers and customer perception of life
insurance.

3.6 REVIEWS RELATED TO COVID-19 PANDEMIC AND LIFE INSURANCE

INDUSTRY:

Pius Babunaet (2020) evaluated that the COVID-19 pandemic abruptly and suddenly shook the protection
business. The monetary effect is huge, with benefits falling by 16.6% over the audited period from March to
June 2020. Total costs are down 17.01% while claims are up 38.4%. Most organizations have taken a piece of
the pie, with some keeping up with their share of the overall industry. Insurance agencies, on the other hand,
have been confirmed to rely on various factors such as liquidity, their vulnerable portfolio, dependency on
49
reinsurance, the level of free resources and the security put in place by reinsurers. The underlying response from
safety net providers has been poor as Ghana's insurance industry has not been sufficiently involved in dealing
with a pandemic, but the recovery has been swift as most insurance agencies have now adapted to working from
remote areas and their IT just as safety conventions have improved. Security chiefs have additionally responded
with statements and taken explicit steps to calm policyholder alarms. In particular, they have improved the case
cycle to give policyholders effective access guarantees and set new standards for controlling the area. The
guarantors have also expanded their measures for the settlement of guarantee claims. The public sector has set
up a COVID-19 facility to combat the pandemic.

Abel and Mersha (2020) -The research was fully focused on delineating the execution of pre-COVID-19
protection business, setting benchmarks to reduce the impact of COVID-19, and the likely impact of COVID-19
in Ethiopia investigation. In order to achieve the stated objective, the scientists used both an exploratory and a
clear study design. The protection industry has played a significant part in getting the accompanying proposals
sent out due to the pandemic. Businesses must make serious efforts and work together with the government at
this difficult time to combat COVID-19, and be vigilant, adaptable enough to adapt to the evolving situation and
open to their key partners. As the governing body, the National Bank of Ethiopia should also improve its
supervisory limits and give its initiative depending on the situations that arise, global practice and the specific
circumstances of nations. Insurance agencies will have to deal with liquidity problems in the short-term and
resolution problems in the long-term if the pandemic continues for quite a while. To prevent this, the company
should take prudent steps, and the National Bank of Ethiopia must take extraordinary care to help keep up with
the company's liquidity.

Dr. D. Y Patil , Dr. Kamini Khanna and Kotle Veena (2021) The purpose of this study was to understand
consumer behavior towards health insurance during COVID-19. The study was based on the primary data
collected from the Mumbai respondents. A self-administered questionnaire was prepared that included separate
sections for demographic and subjective questions. The subjective section consisted of a five-point Likert scale.
A random sampling technique was performed and 200 respondents were selected for the research. The main
objective of this study was to examine the factors influencing consumer perceptions towards health insurance
during the pandemic. To achieve the goal, factor analysis and a chi-square test were performed. The factors
influencing customer perceptions of health insurance were compatibility, awareness, transparency, tax benefits,
accuracy, clarity and availability of information, claims handling ratio and number of network hospitals.The
study found that awareness of health insurance products was observed among the majority of respondents.
Campaigns to raise awareness of the importance of health insurance and its services can help increase health

50
insurance sales. Among all demographic variables, the source of prominence showed a strong association with
gender. The main source of awareness for women is television, while for men friends and colleagues. Second,
the analysis also found that regardless of whether a person has a lower or higher income, they would rather have
health insurance to cover their medical expenses. In addition, the study also found that the pandemic has taught
everyone the importance of investing in the right insurance products to face such unpredictable scenarios in the
coming future.

Dr. Babita Yadav and Dr. Pushpa Suryavanshi ( 2021) conducted a study on the after effects of Covid-19
pandemic in the life insurance sector in India. This paper is an attempt to examine the impact of the COVID-19
pandemic and its overall impact on the business of the Indian life insurance sector. The study has an exploratory
character and thus provides new insights into related future research. To carry out the study, secondary data was
collected from various newspaper articles, online blogs, websites and annual reports from life insurance
companies. The paper covers various dimensions such as first year premium, sum insured, number of lives
covered under group policies, no. of policies issued and also endeavors to analyze the overall performance of
the life insurance company in fiscal year 2020 compared to the previous fiscal year 2019. The study period was
six months. H. from March 2019 to August 2019 (pre-Covid) and March 2020 to August 2020 (during Covid).
The results of the study show that Covid-19 has negatively impacted the life insurance business, primarily in
terms of the decline in new policy sales, premium income and claims settlement crises. Due to the uncertainties
in life in times of the Covid 19 pandemic, the experts see a positive development in demand for pure and health
insurance.

51
 CHAPTER 4

ANALYSIS AND INTERPRETATION

4.1. INTRODUCTION

Data analysis is defined as the act of transforming data in order to extract useful information and facilitate
conclusions. Statistical methods are used depending on the type of data and the questions.

Analyzing data involves studying the relationships or identifying differences that may support or contradict the
original or new hypothesis. In the case of surveys, analysis entails estimating the values of unknown population
parameters and testing hypotheses to draw conclusions.

As a result, analysis can be divided into two types i.e., descriptive analysis and inferential analysis. Data
interpretation is the process of drawing conclusions from facts gathered. It is the process of giving new meaning
and significance to the conclusion drawn from the data collected. It represents the culmination of the research
process. This phase of the research process is extremely important. Two essential steps in the research process
are analysis and interpretation.

The analysis of customer perception of life insurance after the pandemic is divided into two parts. They are as
follows:

1) Description of demographic profile of customers.

2) Testing of objectives.

I. DESCRIPTION OF DEMOGRAPHIC PROFILE OF POLICY HOLDERS

4.2. GRAPHICAL REPRESENTATION OF GENDER WISE COMPOSITION OF

POLICY HOLDERS

TABLE NO.- 4.1 Details Showing Gender Of Respondents

Gender Of Respondents No. of Respondents Percentage (%) Of

Respondents

Male 58 54.2 %

Female 49 45.8%

52
 GRAPH NO.- 4.1 Graph Showing Gender Of Respondents

INFERENCE

Gender is an important socio-behavioral aspect to consider when studying the current state of nature. It provides
notable differences in experiences in any field. Furthermore, there are some significant issues that revolve
around being male or female.

This information is presented in Table No.4.1 .It is observed from the tabulated data that out of a total of 107
respondents, 58 respondents (54.2 percent) are male and the remaining 49 respondents (45.8 percent) are
female.

4.3. GRAPHICAL REPRESENTATION OF AGE WISE COMPOSITION OF POLICY

HOLDERS

TABLE NO. - 4.2 Details Showing Age Of Respondents

Age Of Respondents No. of Respondents Percentage (%) of Respondents

18-25 61 57%

26-35 8 7.5%

35-50 25 23.4%

53
 50 & above 13 12.1%

GRAPH NO. - 4.2 Graph Showing Age Of Respondents

INFERENCE

From Table 4.2 , it is observed that 61 respondents (57 percent) belong to the age group of 18- 25 years of age;
8 respondents (7.5 percent) belong to 26-35 years of age; 25 respondents (23.4 percent) belong to 36-50 years of
age and 13 respondents (12.1 percent) belong to above 51 years of age.

The study information thus communicates that a major number of the respondents, 80.4 percent of the sample
belongs to the age group of 18-25 years and 36-50 years age group.

54
4.4. GRAPHICAL REPRESENTATION OF QUALIFICATION WISE COMPOSITION
OF POLICY HOLDERS

TABLE NO. - 4.3 Details Showing Qualification Of Respondents

Qualification Of No. of Respondents Percentage (%) Of

Respondents Respondents

10th 0 0%

12th 8 7.5%

Undergraduate 42 39.3 %

Graduate 38 35.5%

Post Graduate 9 8.4%

Professional 7 6.5%

Other 3 2.8%

GRAPH NO.-4.3 Graph Showing Qualification Of Respondents

INFERENCE

From Table 4.3, it is found that 8 respondents (7.5 percent) have studied till the 12th grade, 42 respondents
(39.5 percent) are undergraduates, 39 respondents (35.5 percent) are graduated, 9 (8.4 percent) have done post-
55
graduation,7 respondents (6.5 percent) did professional education and 2.8 percent of the respondents belong to
other category.

4.5. GRAPHICAL REPRESENTATION OF OCCUPATION WISE COMPOSITION OF

POLICY HOLDERS

TABLE NO. - 4.4 Details Showing Occupation Of Respondents

OCCUPATION OF NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS RESPONDENTS

Student 57 53.3 %

Businessman/ 4 3.7 %
Businesswoman

Government Employee 13 12.1 %

Private Sector Employee 23 21.5 %

Retired Employee 1 0.9 %

Homemaker 9 8.4 %

GRAPH NO.- 4.4 Graph Showing Occupation Of Respondents

INFERENCE
56
From Table 4.4, Private and public sector employees constitute 33.6 per cent. Students with their number as 57
out of total 107 respondents, constituted 53.3 percent of the sample. Business persons, home makers and retired
employees belonging to the other unidentified vocation did form sample strength of 3.7 percent, 8.4 percent and
0.9 percent respectively.

4.6. GRAPHICAL REPRESENTATION OF MARITAL STATUS WISE

COMPOSITION OF POLICY HOLDERS

TABLE NO-4.5 Details Showing Marital Status Of Respondents

Marital Status of No. of Respondents Percentage (%) Of Respondents

Respondents

Married 41 61.7 %

Unmarried 66 38.3 %

GRAPH NO. - 4.5 Graph Showing Marital Status Of Respondents

INFERENCE

From Table 4.5, it is observed that 41 respondents (61.7 percent) are married, 66 respondents (38.3 percent) are
unmarried,

57
II TESTING OF OBJECTIVES

4.7 OBJECTIVE 1: TO STUDY CUSTOMER'S PERCEPTION TOWARDS LIFE INSURANCE

POST PANDEMIC.

1) RESPONDENTS OPINION ON INVESTMENT IN LIFE INSURANCE POLICY AS AN

ESSENTIAL COMMODITY

Table No. 4.6. Details Showing Respondents Opinion On Investment In Life Insurance Policy

ESSENTIAL NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

YES 99 92.5%

NO 2 1.9%

MAYBE 6 5.6%

Graph No.4.6. Graph Showing Respondents Opinion On Investment In Life Insurance Policy

INFERENCE

From Table 4.6., it is observed that 99 ( 92.% ) respondents consider life insurance as an essential commodity, 2
(1.9 %) respondents do not consider life insurance as an essential commodity and the remaining 6 (5.6%)
respondents are unsure.

58
 2) RESPONDENTS OPINION ON LIFE INSURANCE POLICY AS A LONG -TERM
INVESTMENT

Table No. 4.7. Details Showing Respondents Opinion On Life Insurance Policy as a long-term
investment

LONG-TERM NO. OF RESPONDENTS PERCENTAGE (%) OF

INVESTMENT RESPONDENTS

AGREE 69 64.5%

STRONGLY AGREE 25 23.4%

DISAGREE 4 3.7%

STRONGLY DISAGREE 2 1.9%

NEUTRAL 7 6.5%

Graph No. 4.7. Graph Showing Respondents Opinion On Life Insurance Policy as a long-term
investment

INFERENCE

From Table 4.7. It is observed that , 69 (64.5%) respondents agree that life insurance is a long-term investment,
25( 23.%) strongly agree , 4 (3.7) respondents have disagreed , 2 (1.9%) have strongly disagreed and 7 (6.5%)
respondents have a neutral opinion.

59
 3) RESPONDENTS OPINION ON LIFE INSURANCE POLICY AS A PURE RISK
COVER

Table No. 4.8. Details Showing Respondents Opinion On Life Insurance Policy as a pure risk cover

PURE RISK COVER NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

YES 61 57%

NO 17 15.9%

MAYBE 29 27.1%

Graph No. 4.8. Graph Showing Respondents Opinion On Life Insurance Policy as a pure risk cover

INFERENCE

From Table 4.8, It is observed that 61 (57% ) respondents consider life insurance as a pure risk cover, 17 (15.9
%) respondents do not consider life insurance a risk cover and the remaining 29 (27.1%) respondents are unsure.

60
 4) DEMONSTRATING WHETHER RESPONDENTS OWN LIFE INSURANCE
POLICIES

Table No. 4.9. Details showing if respondents have invested in a life insurance policy.

INVESTED IN LIFE NO. OF RESPONDENTS PERCENTAGE (%) OF

INSURANCE RESPONDENTS

Yes 71 66.4%

No 36 33.6%

Graph No. 4.9. Graph showing if respondents have invested in a life insurance policy.

INFERENCE

From Table No. 4.9., It is observed from the tabulated data that out of a total of 107 respondents, 71
respondents (66.4 percent) have invested in a life insurance policy and the remaining 36 respondents (33.6
percent) are uninsured.

61
4.8. OBJECTIVE 2 : TO ASSESS THE REASONS GIVEN BY POLICYHOLDERS FOR
PURCHASING A LIFE INSURANCE POLICY

5) ASSESSING THE REASONS GIVEN BY POLICYHOLDERS FOR PURCHASING A

LIFE INSURANCE POLICY

Table No. 4.10. Details Showing The Reasons Given By Policyholders For Purchasing A Life Insurance
Policy

REASONS NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Risk Coverage 59 64.8%

Future Investment 49 53.8%

Prompt Services 10 11%

Recommendation from others 11 12.1%

Other 8 8.8%

Graph No. 4.10. Graph Showing The Reasons Given By Policyholders For Purchasing A Life Insurance Policy

62
INFERENCE
From Table No. 4.10. , It is observed from that, 59 (64.8%) respondents have purchased life insurance for risk
coverage, 49 respondents (53.8%) have invested as a future investment, 10 (11%) respondents have invested in
life insurance for its prompt services, 11(12.1%) respondents have invested because of recommendation from
others and 8 (8.8%) respondents have other reasons for investing.

6) RESPONDENTS THOUGHTS ON GROWTH IN DEMAND OF LIFE INSURANCE AS

A RESULT OF INCREASED LIFE UNCERTAINTY AFTER THE PANDEMIC

Table No. 4.11.-Details Showing Respondents Thoughts On Growth In Demand Of Life Insurance due
to Increased Life Uncertainty After The Pandemic

GROWTH IN DEMAND DUE NO. OF RESPONDENTS PERCENTAGE (%) OF

TO LIFE UNCERTAINTY RESPONDENTS

Yes 87 81.3%

No 5 4.7%

Maybe 15 14%

Graph No. 4.11.- Graph Showing Respondents Thoughts On Growth In Demand Of Life Insurance due
to Increased Life Uncertainty After The Pandemic

63
INFERENCE

From Table No. 4.11 , It is observed that 87 (81.3%) respondents believe that increased life uncertainty due to
the pandemic has a significant impact on the growth of demand for life insurance policies, 5 (4.7%) respondents
believe that it has no impact on the growth in demand and 15 (14%) respondents are unsure.

4.9. OBJECTIVE 3 : TO UNDERSTAND THE CHANGING TRENDS & CHANGES IN

DEMANDS OF CUSTOMERS DURING THE PANDEMIC.

7) RESPONDENTS THOUGHTS ON RISE IN LIFE INSURANCE POLICY PREMIUMS

DUE TO THE PANDEMIC.

Table No. 4.12.- Details Showing Respondents Thoughts On Rise In Life Insurance Policy Premiums
Due To The Pandemic.

RISE IN POLICY PREMIUMS NO. OF RESPONDENTS PERCENTAGE (%) OF

DUE TO THE PANDEMIC RESPONDENTS

Yes 96 89.7%

No 11 10.3%

64
 Graph No. 4.12.- Graph Showing Respondents Thoughts On Rise In Life Insurance Policy Premiums
Due To The Pandemic.

INFERENCE

From Table No. 4.12 , It is observed that 96 (89.7%) respondents believe that there is a rise in policy life
premiums due to the pandemic and 11 ( 10.3%) respondents believe that it has no impact on the prices of
premiums.

8) RESPONDENTS PREFERED MODE OF BUYING AND RENEWAL OF OF

LIFE INSURANCE POLICIES

Table No. 4.13.- Details Showing Respondents Prefered Mode Of Buying And Renewal Of Of Life
Insurance Policies

PREFERED MODE NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Online 69 64.5%

Offline 38 35.5%

65
 Graph No. 4.13.-Graph Showing Respondents Preferred Mode Of Buying And Renewal Of Life
Insurance Policies

INFERENCE

From Table No. 4.13 , It is observed that 69 (64.5%) respondents prefer online mode for buying and renewal of
life insurance policies and 38 ( 35.5% ) respondents prefer offline mode.

9) ANALYZING IF RESPONDENTS FACED DIFFICULTIES WHILE BUYING/

RENEWING POLICIES IN ONLINE MODE

Table No. 4.14.- Details Showing if Respondents faced difficulties while buying/ renewing policies in
online mode

DIFFICULTIES FACES NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Yes 20 21.7%

No 72 78.3%

66
 Graph No. 4.14.-Graph Showing if Respondents faced difficulties while buying/ renewing policies in
online mode

INFERENCE

From Table No. 4.14 , It is observed that 20 ( 21.7% ) respondents faced difficulties while buying/renewing
policies in online mode and 72( 78.3%) respondents did not face any difficulties.

10) ANALYZING RESPONDENTS PREFERENCES IN LIFE INSURANCE

PRODUCTS.

Table No. 4.15.- Details Showing Respondents Preferences In Life Insurance Products.

PREFERENCE NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Flexibility in payments 64 59.8%

Personalized Products 28 26.2%

Innovative Products 33 3.8%

Online Mode Of 35 32.7%

Transaction

67
 Added Covid-19 benefits in 45 42.1%
existing plans

Other 4 3.7%

Table No. 4.15.- Details Showing Respondents Preferences In Life Insurance Products.

INFERENCE
From Table No. 4.15 , It is observed that 64 ( 59.8%) respondents look for flexibility in payments ,28(26.2%)
prefer personalized products, 33(30.8%) look for innovative products, 35(32.7%) prefer online modes of
transaction, 45(42.1%) look for Covid-19 benefits in policies and about 3.7 % respondents want family & future
security.

11) RESPONDENTS THOUGHTS ON RISE IN PREFERENCE OF ONLINE

INSURANCE POST PANDMEIC

Table No. 4.16.- Details Showing Respondents Thoughts On Rise In Preference Of Online Insurance
Post Pandemic

INCLINED NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Yes 98 91.6%

68
 No 9 8.4%

Graph No. 4.16.- Graph Showing Respondents Thoughts On Rise In Preference Of Online Insurance
Post Pandmeic

INFERENCE

From Table No. 4.16 , It is observed that about 98(91.6%) respondents think that the pandemic has caused a
significant inclination of customers towards online insurance and 9 (8.4%) respondents think that the pandemic
has no impact on the inclination of customers towards online insurance.

69
 4.10. OBJECTIVE 4 : TO UNDERSTAND THE CHALLENGES FACED & DECLINE
IN DEMAND OF NEW POLICIES DURING THE PANDEMIC.
12) ANALYZING IF RESPONDENTS HAVE MADE CLAIMS ON THEIR
POLICIES DURING THE PANDEMIC

Table No. 4.17.- Details Showing if Respondents Have Made Claims On Their Policies

MADE CLAIMS NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Yes 18 16.8%

No 89 83.2%

Graph No. 4.17.- Graph Showing if Respondents Have Made Claims On Their Policies

INFERENCE

From Table No. 4.17 , It is observed that about 89 ( 83.2%) haven’t made any claims on their policies and 18
(16.8%) respondents did make claims on their policies during the pandemic

70
 13) ANALYZING IF RESPONDENTS FACED DIFFICULTIES IN THE
PROCESS OF CLAIM SETTLEMENT

Table No. 4.18.- Details Showing If Respondents Faced Difficulties In The Process Of Claim
Settlement

Faced Difficulties NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Yes 12 19%

No 51 81%

Graph No. 4.18.- Graph Showing If Respondents Faced Difficulties In The Process Of Claim
Settlement

INFERENCE

From Table No. 4.18 , It is observed that 12 (19%) respondents faced difficulties in the process of claim
settlement and 51 ( 81%) respondents did not face any difficulties.

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 14) ANALYZING THE PERIOD OF TIME REQUIRED FOR CLAIM
SETTLEMENT

Table No. 4.19.- Details Showing The Period Of Time Required For Claim Settlement

DURATION NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

1–2 Week 21 34.4%

More than 2 weeks 20 32.8%

More than a month 8 13.1%

Other 12 19.4%

Graph No. 4.19.- Graph Showing The Period Of Time Required For Claim Settlement

INFERENCE

From Table No. 4.19 , It is observed that it took 1– 2 weeks for 21 (34.4%) respondents to get the claims
settled, More than 2 weeks for 20 (32.8%) respondents and more than a month for 8 (13.1% )respondents .

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 15) ANALYZING THE POSSIBLE REASONS FOR DELAY IN PREMIUM
PAYMENT

Table No. 4.20.- Details Showing Possible Reasons For Delay In Premium Payment

Reason NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Loss of Jobs 54 50.5%

Financial Uncertainties 75 70.1%

Rise in policy premiums 30 28%

Other 12 11.2%

Graph No. 4.20.- Graph Showing Possible Reasons For Delay In Premium Payment

INFERENCE

From Table No. 4.20 , It is observed that 5 (50.5%) respondents think that the delay in payment of premiums
could be because of loss of jobs during the pandemic,75( 70.1%) respondents think financial uncertainty could
be a possibility and 30( 28%) respondents think rise in policy premiums could be a reason.
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 16) RESPONDENTS OPINION ON IMPACT OF COVID-19 ON
EMPLOYMENT OPPORTUNITIES IN LIFE INSURANCE SECTOR

Table No. 4.21.- Details Showing Respondents Opinion On Impact Of Covid-19 On Employment
Opportunities In Life Insurance Sector

AFFECTED NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Yes 47 43.9%

No 25 23.4%

Maybe 35 32.7%

Graph No. 4.21.- Graph Showing Respondents Opinion On Impact Of Covid-19 On Employment
Opportunities In Life Insurance Sector

INFERENCE

From Table No. 4.21 , It is observed that 47 (43.9%) respondents think that the pandemic has had an impact on
the employment opportunities in the life insurance sector, 25 (23.4%) respondents think the pandemic has no
impact on the employment opportunities and 35 (32.7 %) respondents are unsure.

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 17) ANALYZING IF THE PANDEMIC HAS CAUSED A DECLINE IN THE
SALES OF NEW POLICIES

Table No. 4.22.- Details Showing If The Pandemic Has Caused A Decline In The Sales Of New
Policies

CAUSES DECLINE NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Yes 47 43.9%

No 60 56.1%

Graph No. 4.22.- Graph Showing if The Pandemic Has Caused A Decline In The Sales Of New
Policies

INFERENCE

From Table No. 4.22 , It is observed that 47 (43.9%) respondents think that the pandemic has caused a decline
in the sales of new policies and 60(56.1%) respondents are of the opinion that the pandemic has no impact on
the sales of new policies.

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 18) ANALYZING THE POSSIBLE REASONS FOR DECLINE IN DEMAND OF
NEW POLICIES

Table No. 4.23 .- Details Showing Possible Reasons For Decline In Demand Of New Policies

REASON NO. OF RESPONDENTS PERCENTAGE (%) OF

RESPONDENTS

Hesitation to invest in new 14 26.9%

policies due to drop in market
values & interest rates

Financial Uncertainties 10 19.2%

Loss of Jobs 10 19.2%

All of the above 18 34.6%

None 12 23.1%

Graph No. 4.23.- Graph Showing Possible Reasons For Decline In Demand Of New Policies

INFERENCE

From Table No. 4.23 , It is observed that 14 (26.9 %) respondents think that the reason for decline in new
policies could be hesitation to invest in new policies due to drop in market values & interest rates,10(19.2%)
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respondents respectively think financial uncertainty & loss of jobs could be a reason,12( 23.1% ) respondents
think none of the given reasons are responsible for decline in demand for new policies and 18( 34.6%) think all
of the given reasons are responsible.

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 CHAPTER 5

FINDINGS, CONCLUSIONS AND SUGGESTIONS

5.1. FINDINGS

Findings are the principal outcomes of a research project; what the project suggested, revealed or indicated.
This usually refers to the totality of outcomes, rather than the conclusions or recommendations drawn from
them. The findings section presents the important data that was collected during the research process. It should
be presented concisely and clearly to the reader.

There should be no interpretation, speculation, and analysis of the data. After careful consideration and study of
literature reviews, the methodology of the present study was designed and a questionnaire was prepared and
administered.

This particular research also has certain findings and they are as follows:

❖ The sample structure of the study concerning the gender profile was dominated by male respondents.
The size of male respondents in the sample is 54.2%.
❖ The maximum number of insured respondents fall under the age category of 26 years to 50 years. The
findings indicate that insurance products are more appealing to young and middle-aged individuals.
❖ The size of respondents whose educational qualification is less than 12th showed fewer members when
compared with the other educational qualification categories. Most of the respondents were
undergraduates, graduates and professionals.
❖ Most of the respondents were students, some of the respondents work in government sectors, some work
in the private sector. Very few have their own businesses.
❖ In the sample, married respondents are higher than the unmarried respondents. The size of married
respondents is 61.7% and that of unmarried respondents is 38.3%.
❖ Among 107 respondents , 99 respondents i.e 92.5% of the sample consider life insurance as an essential
commodity.
❖ A majority of respondents consider life insurance as a long term investment and pure risk cover.
❖ About 66.4% respondents have invested in a life insurance policy.
❖ The reason given by policyholders for purchasing a life insurance policy is mainly for risk coverage and
future investment.

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 ❖ A maximum number of respondents are of the opinion that the Covid-19 pandemic has had a significant
impact on the growth in demand of life insurance due to life uncertainty. The statistics are 87 members
with 81.3%.
❖ 89.7% respondents have an opinion that the rise in policy premiums is a result of the pandemic.
❖ In the sample , 64.5% respondents prefer online mode for buying and renewing life insurance policies.
Whereas, 35.5% respondents prefer offline mode.
❖ Majority of respondents haven’t faced any difficulties in buying and renewing policies in online mode.
❖ In the sample, most respondents have mentioned that they look for flexibility in payments, online modes
of transaction and added covid benefits while purchasing life insurance products.
❖ 91.6% respondents believe that the pandemic has caused an inclination of customers towards online
services.
❖ It is observed that only 16.8% respondents made claims on their policies during the pandemic.
❖ The respondents who made claims got their claims settled in a mostly 1 or 2 weeks time.
❖ In the sample of 107 , the respondents have mentioned that the reason for delay in premium payments is
mainly financial uncertainty during the pandemic .
❖ 40.3% respondents have an opinion that the pandemic has also affected the employment opportunities in
the insurance sector. While 23.4% are of the opinion that the pandemic has no significant impact on
employment opportunities.
❖ About 43.9% respondents believe that the pandemic has caused a decline in sales of new policies and
the respondents have stated that loss of jobs, financial uncertainty & hesitation to invest in new policies
due to drop in market values and interest could be the possible reasons.

5.2 SUGGESTIONS

This chapter provides comprehensive suggestions based on the results of the study on frequencies, descriptive
statistical analysis, and hypothesis testing. It is based exclusively on the findings from the primary data and
secondary data analysis. Most suggestions are based on empirical evidence generated through primary data
analysis

❖ The study recommended that homemakers, retired and old aged people are found with lesser in statistics,
it is suggested to make promotional programs and encourage them to have insurance policies
❖ It is recommended that all insurance companies should promote insurance products, particularly term
insurance, to uneducated and low-education individuals in order to protect them from risk and the
pandemic.
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 ❖ As it has been observed, the majority of members prefer long-term policies over short-term policies. It is
suggested that businesses should prioritize long-term insurance policy design over short-term insurance
policy design.
❖ In the event of a covid-19 pandemic, the majority of respondents believe they are not adequately covered
by life insurance. It is advised to take advantage of pandemic to promote and sell insurance products.
❖ The general public is unaware of the services provided by insurance companies. It is recommended that
publicity and advertising campaigns be carried out in order to increase the reach of the various services
provided by insurance companies.
❖ Since term insurance, special plans, and health plans have been in high demand during the covid-19
pandemic, it is suggested that more emphasis be placed on these policies in order to attract new
customers and cross-sell.
❖ Claim settlement process should be made fast and must not involve lengthy decision making process.
❖ The Insurance companies which fail to settle claims would definitely attract less business.
❖ Claim settlement strategy promotes customer loyalty as it helps to develop customer perception.
❖ It is recommended that companies improve their performance in the following areas: (i) procedures for
various policy services be simplified, (ii) IT enabled services such as online payments should be
strengthened, (iii) premium points should be made more popular, and (iv) policy benefits should be
made available through all branches.
❖ It is suggested that companies should work on the differences in the public perception of features such
as brand image of the company, claim settlement, buying online policies, convenient location and
working hours, rate of returns, follow-up for premium remittance, higher coverage on lesser premium,
products with additional benefits, procedures for purchasing policy, etc. It is strongly advised that
insurance companies develop marketing strategies to address the perception gap and promote sales.
❖ During the covid-19 pandemic, there has been a strong public perception of life insurance products. It
can have a positive impact on marketing and designing better marketing strategies.

5.3 SCOPE FOR FURTHER STUDY

Despite the study covering many relevant areas particularly with respect to customer awareness and perception
towards life insurance policy post pandemic in Mumbai City, there exists a scope for further research.

The relevant aspects thus identified but not covered in the present study include the following:

80
 ❖ Similar studies can be conducted in different cities, covering policy holders with diversified
demographic characteristics.
❖ Similar studies can also be conducted in Mumbai and other cities as well covering different aspects like
customer satisfaction , impact of foreign direct investment etc. towards life insurance policy.
❖ Further, a similar type of study can also be conducted covering a large sample base to make the results
more generalized.
❖ The same study can also be conducted for a specific public sector or private sector insurers.

5.4 CONCLUSION

In conclusion, the COVID-19 pandemic has had a significant impact on customers' perception of life insurance.
The pandemic has led to an increased awareness of the need for financial security and protection for one's
family in uncertain times. The study found that customers are more inclined to consider purchasing life
insurance policies that provide coverage for critical illnesses, job loss, and other unexpected events.
Additionally, the study identified that customers are looking for transparent and flexible policies that are easily
accessible through online channels.

It revealed that customers prioritize trustworthiness, transparency, and reliability when selecting a life insurance
provider. Customers also value comprehensive coverage, affordability, and accessible services. Additionally, the
study found that customers' age, education, occupation and past experiences significantly impact their
perception of life insurance. Therefore, life insurance providers should consider these factors when developing
policies that meet the needs of their customers. By addressing these concerns and providing tailored solutions,
life insurance providers can attract and retain customers while maintaining their position in the market.

In conclusion, life insurance companies need to adapt to the changing customer expectations and provide
policies that are relevant, affordable, and accessible to meet the evolving needs of customers post-pandemic.

81
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WEBSITES

● https://shodhganga.inflibnet.ac.in/handle/10603/470267
● https://www.edelweisstokio.in/blogs/lifeinsurancesimplified/4-ways-the-covid-pandemic-impact-the-
life-insurance-sector-in-india
● https://www.clootrack.com/insights/finance/life-insurance-5-key-adoption-drivers-based-on-customer-
experience
● https://www.clootrack.com/insights/finance/life-insurance-5-key-adoption-drivers-based-on-customer-
experience
● https://economictimes.indiatimes.com/industry/banking/finance/insure/importance-of-insurance-
especially-during-a-pandemic/articleshow/78016251.cms

BOOKS

● Savita Shrikant Bodke - Rishab Publication’s Wealth Management Book - T.Y. B.M.S.(SEM V )
● Kunjal Sinha (2011) Life Insurance Industry - a Service Quality Perspective
● Yajnya Dutta Nayak, Jagannath Panda (2013) Consumer Behaviour Towards Life Insurance Services

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 ● Vimal Priyan Jegatheesan, Selva Kumar Marimuthu (2016 ) Perception of Policyholders Towards Life
Insurance

QUESTIONNAIRE
1. Gender

❑ Male

❑ Female

❑ Prefer not to say

2. Age

❑ 18-25

❑ 26-35

❑ 36-50

❑ 50 and above

3. Qualification

❑ 10th

❑ 12th

❑ Undergraduate

❑ Graduate

❑ Post Graduate

❑ Professional

❑ Other

4. Occupation

❑ Student

❑ Businessman/ Businesswoman

85
 ❑ Government Employee

❑ Private Sector Employee

❑ Retired Employee

❑ Homemaker

5. Marital Status

❑ Married

❑ Unmarried

6. Do you believe Life Insurance is an essential commodity?

❑ Yes

❑ No

❑ Maybe
7. Do you agree that Life Insurance is a long-term investment?
❑ Agree

❑ Strongly Agree

❑ Disagree

❑ Strongly Disagree

❑ Neutral
8. Do you see Life Insurance as a pure risk cover?
❑ Yes

❑ No

❑ Maybe
9. Have you invested in a Life Insurance Policy?
❑ Yes

❑ No
86
10. If yes, what is the reason behind purchasing a Life Insurance Policy?
❑ Risk Coverage

❑ Future Investment

❑ Prompt Services

❑ Recommendation from others

❑ Other

11. Do you think that the demand for Life Insurance has grown as a result of increased life uncertainty after the
pandemic?

❑ Yes

❑ No

❑ Maybe

12. Do you think that there has been a rise in Life Insurance policy premiums due to the pandemic?

❑ Yes

❑ No

13. Which mode of transaction do you prefer for buying and renewal of Life Insurance policy?

❑ Online Mode

❑ Offline Mode

14. Have you faced any difficulties while buying or renewing insurance policies in online mode?

❑ Yes

❑ No

15. What do you look for in Life Insurance Products?

❑ Flexibility in payments

❑ Personalized Products

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 ❑ Innovative Products

❑ Online Modes of transactions

❑ Added benefits of Covid-19 insurance in existing plans

❑ Other __________

16. Do you think people are more inclined towards online insurance after the pandemic?

❑ Yes

❑ No

17. Have you made any claims on your policy during the pandemic?

❑ Yes

❑ No

18. If yes, did you face any difficulties in the process of claim settlement under these circumstances?

❑ Yes

❑ No

19. How long did it take to settle the claim?

❑ 1-2 weeks

❑ More than 2 weeks

❑ More than a month

❑ Other __________

20. What according to you could be the possible reasons for delay in payment of premium during the pandemic?

❑ Loss of Jobs

❑ Financial Uncertainties

❑ Rise in Policy Premiums

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 ❑ Other

21. Do you think the pandemic has affected the employment opportunities in the Life Insurance sector?

❑ Yes

❑ No

❑ Maybe

22. Do you believe that the pandemic has caused a decline in the sales of new policies?

❑ Yes

❑ No

23. If yes, what according to you could be the reasons for decline in demand for new policies?

❑ Hesitation to invest in new policies due to drop in market values & interest rates

❑ Financial Uncertainty

❑ Loss of Jobs

❑ All of the above

❑ None

89