TABLE OF CONTENTS

CONTENTS

Page No.

Introduction
1.1 About the Topic

1.2 Scope of the study

1.3 Objectives

1.4 Research Methodology

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1.5 Limitations

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Bibliography

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1.1 ABOUT THE TOPIC

Perception is the process by which a buyer makes sense out of the various information he
receives from various sources. He develops his own idea/views/pictures of a given
situation/object. How the buyer would proceed further depends on his perception of the
situation. A consumer would proceed with the buying only if his perception of the
situation/proposition is positive and encouraging. (1)
CUSTOMER PERCEPTION PARAMETERS
The various parameters for customer perception in health insurance sector are:
1. Reliability dimension is concerned with the stores ability to perform the service accurately
and dependably.
2. Responsiveness dimension is related with the employees willingness to help customers and
provide prompt services.
3. Assurance dimension includes Employees knowledge, courtesy and their ability to inspire trust
and confidence.
4. Empathy dimension is related with Caring, individualized attention given to customers or the
ease of access, approachability and effort taken to understand customers requirements.
5. Tangibles dimension is all about the appearance of the physical facilities and material relayed
at retail outlet.
6. Trained and well informed agents
7. Communication in the imparting or exchanging of information by speaking, writing, or using
some other medium by various Health Insurance Companies.
8. Presentation speech or talk in which a new product, idea, or piece of work is shown and
explained to an audience.
9. Product knowledge An understanding of a good or service that might include having acquired
information about its application, function, features, use and support requirements. A business
sales representative is an example of an individual that is typically expected to acquire
considerable product knowledge about the goods and services that they are responsible for
selling to consumers.
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10. Prompt and efficient query handling

11. Product line a group of related products manufactured by a single company. The same
company might also offer more than one product line.
12. Maternity cover policies are generally aimed at supporting the mother's full recovery from
childbirth and facilitating a stronger mother-child bond.
13. Claim settlement is one of the most important services that an insurance company can
provide to its customers. Insurance companies have an obligation to settle claims promptly.
14. User friendly Refers to anything that makes it easier for novices to use Health Insurance
plans. Although the term user-friendly represents an important concept, it has been so overused
that it has become something of a clich
15. Rigid plans deficient in or devoid of flexibility.
16. Saving tool, Tax saving tool and Tool to protect family.
Customer satisfaction measures how well the expectations of a customer concerning a product
or service provided by a company have been met. Customer satisfaction is an abstract concept
and involves such factors as the quality of the product, the quality of service provided, the
atmosphere of the location where the product or service is purchased, and the price of the
product or service. Businesses often use customer satisfaction surveys to gauge customer
satisfaction. Typical areas addressed in the surveys include:

Quality of product

Value of product relative to price - a function of quality and price

Time issues, such as product availability, availability of sales assistance, time waiting at
checkout, and delivery time

Service personnel issues, such as politeness, attentiveness and helpfulness

Convenience of operation

The business of insurance began with marine business .traders who would gather in the Lloyds
coffee house in London, agreed to shared the losses to there goods while being carried by ships
.the losses would occurred because of pirates who used to rob on the high seas of because of bad
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weather running the goods or sinking the hip. The first insurance policy was issued in 1583 in
England. In India insurance began in 1870 with life insurance being transacted by an English
company, the European and Albert. The first Indian insurance company was the Bombay mutual
assurance society LTD. Formed in 1870.the oriental life Assurance go in 1874 came next time
and then the Bharat in 1896 and then to follow was empire of Indian in 1987. Insurance is
required assets to prevent damages through unpredictable and accidental events .such event are
known as perils. they can be any things ranging from fire , floods ,break down ,lighting, to
earthquake .if such perils damage the assets is set to be exposed to that risk. Risks are significant
losses or damages .the risk to a owner of an assets, because perils may be a few lacks of a few
corers of the rupees, depending on cost of the assets and its contents. the risk only indicants that
loss or damage is possible insurance is done again the possibility that may happen .there has to
be an uncertainty about the risk .only if is there risk regarding the occurrence of an event, it cant
be insured .in the case of human being, death is certain, But the time of death is not certain .in
the case of a person who is terminally till, the time of death is certain, though not exactly known
he cannot be insured. Insurance does not provide protection for the assets the perils cannot be
avoided through insurance. The impact of a risk on the owner of the assets and the people
depending on it, is reduced by the insurance .it partly compensates the losses .insurance only
applies to financial losses.
THE BUSINESS OF INSURANCE
Insurance companies are called insurers. They insures and bring together person with similar
insurance interest (sharing the same risks).Collect the share and contribution (known as
premium) from all of them ,Pay out compensation (known as claim) to those who suffer
.Insurance is divided into two parts.
GENERAL INSURANCE
General insurance have three classic fictions viz. fire (dealing with all fire related risks), marine
(dealing with all related risks and ships) and miscellaneous (dealing with all theirs like liability,
fidelity, motor, crop, personal accident, etc.). Personal accident and sickness insurance which are
related to Human Beings, is classified as non India, but is classified as life: in any other
countries.
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The premium is based on expectation of the losses that are based on information through the
study of occurrences in the past and use of statically principals there is an statistics, a law of
large no.) Variation will be less as a percentage therefore the greater the no. of risks included in
the pool; the better chances that the assumption regarding the probility of the risk occurring (on
which premium calculation is based) will be realized in practice .hence, the greater the spread of
the business, the better the expectations. The insurer holds the position of a trusty as is managing
.the common fund, for and on behalf the community of policy holder .it has to make certain that
none is allowed to take unfair advantage of the arrangement .that means the arrangement of the
insurance business require care to prevent entry of individual to he group, whose risks are not
similar as well paying claims on losses that are not accidental. the amount decision to allow entry
is known as the processes of underwriting of risks .underwriting includes determining the risks
i.e. to evaluate how much risks exposure involved .the premium that is changed is dependent on
the determination of risk involve .
INSURANCE OF ECONOMIC DEVELOPMENT
Investment are made out of saving and they are necessary for furthering economic development
.the insurance company is a quit important in mobilizing saving of people ,especially from the
middle and lower income groups and these saving are channeled into investment for economic
growth .Most of the life insurance companies have large fund that are accumulated through the
payment of small amount of premium of individual and these fund further the economic
development of the countries in which they do business .These fund are collected and held in
trust for the benefits of the policy holder .the management of the life insurance company have to
remember this aspects and take decision keeping in mind the benefits of the community.
Business and trade also benefits through insurance without insurance ,trade and commerce is
expose to perils and it will find it difficult to face the impact of such events.
INSURANCE IN INDIA

The Britishers opened general insurance in India around the year 1700.

The first company, known as the Sun Insurance Office Ltd. was set up in Calcutta in the
year 1710.

An insurance company like Bombay Insurance Company Ltd was established in 1793.
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In 1818 it was conceived as a means to provide for English Widows.

The Bombay Mutual Life Insurance Society started its business in 1870.

It was the first company to charge same premium for both Indian and non-Indian lives.

The Oriental Assurance Company was established in 1880.

Till the end of nineteenth century insurance business was almost entirely in the hands of
overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912.

Several frauds during 20's and 30's sullied insurance business in India.

By 1938 there were 176 insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of 1938 that
provided strict State Control over insurance business.

The insurance business grew at a faster pace after independence.

The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born.

Nationalization was justified on the grounds that it would create much needed funds for
rapid industrialization.
Today, the market offers insurance plans that not just cover your need but same
time grow your wealth too. If you have dependants and financial responsibilities
toward them, then you certainly need. Having a family means dependant, which in
turn means financial commitments. Finance comes in the form of loans, children s
education, medical expenses etc. or become disabled being insured in a situation like
this is a necessity. When you insured your life, in effect what you are doing insuring
your earning capacity that your dependents will be able to continue living without
financial hardships even in case most Insurance Plans available today come with a
savings element built into it. These policies not only for a financially independents
future, which were have a comfortable outcome.

To help people to plan their life better

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Religare helps people to plan their life in a better way by providing better life insurance plan to
its customers. Being a new player in life insurance market it has to be innovative and make
promotional programs. Chola MS Health Insurance can provide you great relief in times of
stress. Our health insurance policies ensure coverage for individuals and their family members
against expenses that include hospitalization, diagnostic charges, medicine and other medical
expenses .While Bupa has six decades of experience in the healthcare industry and a 11.3 million
customer-base in over 190 countries; the Max India Group brings expertise in both health and
insurance related services including hospitals, clinical research and life insurance. The perfect
blend of global expertise and local knowledge in both healthcare and insurance makes Max Bupa
the perfect choice when it comes to your family's health and wellness. Customers become repeat
purchasers usually because they believe that the products or services they buy are good value for
money and the service they receive when contacting the firm is at the very least satisfactory.

1.2 Scope of the Study

This topic will generate the valuable facts and figures about the satisfaction level of customers in
LIC and Health Insurance sector the major competitors and the strategies opted for coping up
with the environment as well as maintaining the customer satisfaction. After the selling process
is done within the reach of the customer as well as maintaining the feedback and doing the
product innovations the next step comes the satisfaction of the customer and the measurement
serves over a million clients, including corporate and institutions, high net worth families and
individuals, and retail investors.
The scope of the study defines the parameters in which the study is operating to find the valuable
solution by defining the problem. The study and analysis is done to identify the major loop holes
in the sale of the product, through which company will get the analytical advantage in the
perception and the online sale of the product.
The satisfaction level of customers in various Insurance companies. Analysis of the various
product differentiations in the company.

Product development requirement.

Need analysis of the customers.

This project will enhance the customer needs and tailor made product requirement to
fulfill the need of the customers in order to retain the customer.

This project report is the thesis for the perception level of product and the changing
environment among the customers and their behavior.

1.3 Objectives

To study the awareness of insurance plans offered by Health Insurance Sector ( LIC,
Religare, Max Bupa and Cholamandalam).

To study the customer perception of the various products and services offered by Health
Insurance Sector ( LIC, Religare, Max Bupa and Cholamandalam).

To study the comparative customers perception in public sector undertaking and private
organization.

To understand the various attributes of the products and the services provided by the
insurance companies.

To find out the most prominent area of dissatisfaction.

1.4 Research Methodology

Methodology is the systematic, theoretical analysis of the methods applied to the field of study.
It comprises the theoretical analysis of the body of the methods and principle associated with a
branch of knowledge .The analysis of the principle of method of rule postulates employed by
discipline.

Research Design:-The research design refers to the overall strategy that you choose to
integrate the different components of the study in a coherent and logical way, thereby ,ensuring
you will effectively address the research problem, it constitutes the blueprint for the collection,
measurement ,and analysis of data.
For the purpose of this research descriptive design is used for this study.

Data Sources:- Both primary and secondary data sources will be used for this study.
1. Primary Data:-The primary sources is a document or physical object which was written
or created during the time under study. For the collection of primary data a questionnaire
will be used.
2. Secondary Data:-A secondary source interprets and analyzes primary sources .The data
has been collected by the secondary sources i.e. website, training material, the major
companys magazines.

Sampling:-A process used in statistical analysis in which a predetermined number of

observations will be taken from a larger population.

Sampling Technique:-Sampling techniques are of two types

1. Probability sampling:- sample random sampling, stratified random sampling ,multi-stage
sampling.
2. Non probability sampling:For this study non probability convenience sampling is used.

Sample size: - The sample size is an important feature of any empirical study in which the
goal is to make inferences about a population from a sample. The sample size used in the study is

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determined based on the expenses of data collection and the need to have sufficient statistical
power. The sample size would be near about 80.

Sampling unit: - A sampling unit is typically thought of as an object that has been sampled
from a statistical population .This term is commonly used in opinion polling and survey
sampling.

Data analysis:-Data analysis is done within the help of mathematical and statistical tools and
would be presented with the help of graphs, tables and charts etc.

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1.5 Limitations

Due to companies norms and security factors as a girl researcher the formulation of the
Primary data is done within the limited geographical area.

Insufficient time limitation the project could not bring out the exact interpretations.

Disclosure of the correct information/data by the customer cannot be reliable.

Lack of sources

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BIBLIOGRAPHY
Books

Gupta, Santosh, Research Methodology, Deep and Deep Publications, New Delhi,2001

Ramaswami Namakumari(2009), Marketing Management chapter16, ,understanding

consumer behavior,2009,pg256

Sarangi, Prashant, Research Methodology,2010edition,Taxmann Publications

Zikmund, Williams G., Business Research Methods,7th Edition,Thomson-SouthWestern,India,2007

Websites

www.religarehealth insurance.com

www.irda.com

http://www.buzzle.com/articles/control-strategies.html

http://www.insurance world.com/enews0110.html

http://money.livemint.com/IID93/F100305/AccountingPolicies/Company.aspx

http://www.financialexpress.com/news/aegon-wins-national-award-for-excellence-incost-management/304571/

http://blog.candorworks.com/crm-implementation-advantages-for-small-and-mediumenterprises/
http://www.allprojectreports.com/MBA-Projects/Marketing-Project-Report/internalcustomersatisfaction/objectives,research,limitations,suggestions,bibliography,questionnaire.htm

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