CHAPTER 3 RESEARCH DESIGN LITERATURE REVIEW A milestone was achieved when the nation decided to privatize the industry along with requisite regulations. The industry functioned under a monopoly for several decades thereafter. However, other problems surfaced such as limited reach and penetration of enterprise and deteriorating servicing standards. Indian insurance sector was liberalized in 2001. Liberalization has led to the entry of the largest insurance companies in the world, who have taken a strategic view on India being one of the top priority emerging markets.
It was revealed that factors such as awareness of the product, service behaviour, advertisement, product feature and safety of the scheme played a major role in influencing the behaviour of the customers. The researcher has suggested that the insurance companies should concentrate on the personnel procedure and the process in order to lure customers towards them. Rajesh .C. Jampala and Polavarapu Adilakshmi (2006), have identified the major Challenges, for Indian Life Insurance Companies, to be stringent solvency norms, expense overruns, new business strain, low agent productivity, high attrition level of agents, low average premiums and high competition in the marketplace. They are of the opinion that, there is a great potential for insurance business as the penetration level of insurance to Gross Domestic Product is very low, and selection of the right quality.
It relieves the insured from the sword of Damocles i.e. various risks and uncertainties which may occur before and after the death of the insured. 8.2. Nature of Insurance On the basis of present day economic environment, there are few basic needs for which life insurance is needed. The life insurance is concerned with the hazards that stand across the life of every person that is dying prematurely leaving dependent and that of living to old age without visible means of support.
Therefore, Life Insurance enables us to meet economic needs, wants, and goals. Life Insurance would be the most crucial, and yet the safest way to protect and ensure the future, and to uphold the way your family live regardless of the circumstances. Also, it can be very imperative in many ways, referring to different advantages it can give: family protection, savings, and retirement
Healthcare is important to the society because people get ill, accidents and emergencies do arise and the hospitals are needed to diagnose, treat and manage different types of ailments and diseases. Many of people’s aspirations and desires cannot be met without longer, healthier, happy lives. The healthcare industry is divided into several areas in order to meet the health needs of individuals and the population at large. All over the world, the healthcare industry would continue to thrive and grow as long as man exists hence forming an enormous part of any country’s
Why is Life Insurance So Important? Life insurance is not a single plan. There are several kind of insurance plans and you need to figure out which one suits you the best. Whether you have been looking for a plan that pure insurance or one that brings along corpus with investment, it is essential that you have your priorities sorted. There are term plans, ULIPs, endowment plans, child plans, retirement plans, so on and so forth.
UNDERSTANDING INSURANCE CLAIM LEAKAGE Finance experts say that having an insurance is a wise investment move. Among the benefits it can give you are: risk coverage, protection against unforeseen expense, secured future, and the list goes on. Almost anything can be insured these days: real properties, automobiles, appliances, health, life, disablity – you name them all. There are even rumors that celebrities insure some of their asset body parts! Why do people want to be insured?
Life insurance policies are specific financial products important not only for policyholders, insured and insurers but also for the economy as a whole. It enables the accumulation of long-term funds that can be used for investment. This fact stimulates governments to promote life insurance development through tax relief. Insurance policy does not provide protection against death rather it provides protection against premature death and old age. Additional characteristics of life policies is no possibility of partial lose (what is the case in property-liability insurance).
This data can be explorated to take in the trends across the insurance industry. The importance for the industry lies in analysing these trends that emerge from the study. It is a changing and growing sector. customers are only beginning to wake up to it’s vast possibilities. A study like this can use to guide the future of the industry based on current trends.
Also, the goals of this research include: naming and identifying the existing types of insurance to further inform the public which is better to refer to and to impart knowledge to others on how to choose the appropriate insurance that will satisfy one’s needs, to determine the positive and negative effects that insurance brings to notify the readers about careful decision- making in considering life insurance and lastly, to provide awareness on the possible things that may happen when an individual avail an insurance.More than two century have passed, since life insurance was invented. The first life insurance policies were taken out in the early 18th century. The first company to offer life insurance was the Amicable Society for a Perpetual Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen. The first plan of life insurance was that each member paid a fixed annual payment per share on from one to three shares with consideration to age of the members being twelve to fifty-five. At the end of the year a portion of the "amicable contribution" was divided among the wide and children of deceased members and it was in proportion to the amount of shares the heirs owned.