Consumer Awareness of Life Insurance Policy

Consumer awareness of life insurance policy scenario in the LIFE INSURANCE sector with special inspire of so much of awareness by CPA and strictness by IRDA. Insurance Regulatory and Development Authority (IRDA) committed the National Council of Applied Economic Research (NCAER) to hold out a pan-India survey to assess insurance awareness within the country. The survey was undertaken in 29 states/union territories. The survey has brought out different findings from the information is gathered relating to the social and economic profiles of the insured and the uninsured in both rural and urban areas and correlating it to a different life and general insurance parameters. The survey shows that the majority of the insured are salaried, regular wage earners or self-employed.  Insured households possess a high level of education against uninsured households which are mostly illiterate.

About India’s Life Insurance Industry:

The insurance industry of India consists of 53 insurance companies of which 24 are in the life insurance business and 29 are non-life insurers. Life Insurance Corporation (LIC) is the one and only public sector Company. Aside from, among the non-life insurers there are six public sector insurers. In addition to these, there’s sole national re-insurer, i.e. General Insurance Corporation of India (GIC Re). Other stakeholders in the Indian Insurance market, such as- agents (individual and corporate), brokers, surveyors, and third party administrators are also utilizing health insurance claims. Out of 29 non-life insurance companies, five private sector insurers are registered to underwrite policies exclusively in health, personal accident, and travel insurance segments. They are Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa Health Insurance Company Ltd, Religare Health Insurance Company Ltd and Cigna TTK Health Insurance Company Ltd. There are two more specialized insurers belonging to the public sector, namely, Export Credit Guarantee Corporation of India for Credit Insurance and Agriculture Insurance Company Ltd for crop insurance.

The problem of Life Insurance:

The government’s policy of covering the uninsured has gently pushed insurance penetration in the country and the proliferation of insurance schemes is expected to catapult this key ratio beyond a 4% mark by the end of 2017. The quantities of lives secured under Health Insurance policies during 2015-16 were 36 crore which is almost 30% of India’s total population. The number has seen an increase every subsequent year as 28.80 crore people had the policy in the previous budgetary.

Life Insurance Plan and Policy
Source: Google Image

Statement of the problem:

India’s life insurance sector is the biggest in the world with about 360 million policies which are expected to rise at a Compound Annual Growth Rate (CAGR) of 12 to 15% over the next five years. The insurance industry plans to boost penetration levels to 5% by 2020.

The objective of this case study:

  1. The Socio-economic Profile of the respondents
  2. The level of Awareness of the respondents
  3. To determine the factors that influence the respondents while investing in Life Insurance

This is a sample questionnaire to analyze the satisfaction level of customers towards Life Insurance Company.

Reasons for investing in Insurance Plans of Life Insurance Policy?

70% of people answer that it offers Multiple benefits like an investment, insurance +Tax Saving and 30% motivated by an agent.

What do you feel after investing in Insurance Plans of Life Insurance?

80% of people satisfied and 20% of people disturbed because they did not get a suitable plan from their agent.

Do the Insurance Agent / Marketing Executives recommend Life Insurance?

30% of people wanted to secure their life with insurance and 70% of people are recommended by the agent or someone else.

You Might be Interested In:

Do you invest in Insurance Policy of Life because of Tax Benefits?

60% of people replied with yes and apart from that replied no.

How is the Premium Amount to be paid in Insurance Plans of Life Insurance Company?

80% of people are satisfied 20% of people are dissatisfied.

Indians are aware of Life Insurance, but they are not perfectly motivated. Therefore, the percentage of insurance covered persons is too low. We have to spread the importance of Life Insurance.

From the above study it is concluded that almost, most of the respondents are Aware of Life Insurance through Agent. It can be concluded that the people Expectations in Life Insurance Company are Security and Service while investing.

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