AWARENESS ON PRIVATE LIFE INSURANCE

Transcription

1 AWARENESS ON PRIVATE LIFE INSURANCE 4.1 INTRODUCTION The Life Insurance Corporation of India (LIC) enjoyed the monopoly status till opening up of the insurance market for the private players in the year After privatisation, many Indian private players along with the recognised foreign players as joint ventures stepped into the Indian insurance sector. In order to touch the untapped market, the private life insurers offer a variety of innovative products with massive benefits for different segments of the people. Further, they spend a huge amount of money for advertising their products. Even though, the majority of insured do not have enough knowledge about the various attributes of life insurance (Dhiraj Jain and Nikita Goyal, 2012). Further, Clifford et al. (2010) reveal that the awareness of insurance is low among uneducated, lower age group and daily wage class. In this background, it is indeed to make an attempt in this chapter to assess the policyholders level of awareness on the various private life insurers and their policies, premium payment options, facilities offered and charges imposed on various services. 4.2 VARIABLES INFLUENCING POLICYHOLDERS LEVEL OF AWARENESS ON THE PRIVATE LIFE INSURANCE To find out the policyholders level of awareness, the variables namely, private life insurers and their policies, premium payment options, facilities offered and various charges imposed on services are taken into consideration and are discussed in the paragraphs that follow PRIVATE LIFE INSURANCE COMPANIES IN INDIA In India, insurance business is classified primarily as life and non-life or general. Till privatisation, the Life Insurance sector was dominated by Life Insurance Corporation of India (LIC). After privatisation many private life insurers in alliance with foreign players started their business set-up in India. Presently, there are 22 private life insurance companies operating in India with 8175 offices located all over India and they captured per cent of the total market share in life insurance segment (IRDA Annual Report,

2 ). A brief profile of each private life insurance companies operating in India is given in the following paragraphs. i. ICICI Prudential Life Insurance Company Limited ICICI Prudential Life Insurance Company was established its operation in India in the year It is a joint venture between ICICI Bank, one of the foremost financial services companies of India and Prudential plc., one of the leading international financial services group headquartered in UK. Since its incorporation, ICICI Prudential Life Insurance Company has been the leader in terms of market share and this is the first life insurance company in India that received a National Insurer Financial Strength rating of AAA from Fitch ratings. The company has its headquarters in Mumbai with over 1,900 branches and over 2,10,000 advisors. This company provides various insurance plans categorized under four forms namely, Life Plans - further categorised into term plans and wealth plans - child plans, retirement plans and health plans ( ii. SBI Life Insurance Company Limited SBI Life Insurance was incorporated in India in the year It is a joint venture between State Bank of India (SBI) - the largest state-owned banking and financial services company in India, and BNP Paribas Assurance a banking company in France. SBI Life Insurance is one among the top life insurance providers in India. It is the largest private life insurer and was the first private life insurance company to earn profit. It has its headquarter in Mumbai with more than 16,000 branches and 68,000 Insurance Advisors to offer door to door insurance solutions to customers. SBI Life offers a variety of products designed for various segments of society. These include individual plans, group plans and health plans. All these products cater to various requirements of its end users ( iii. HDFC Standard Life Insurance Company Limited HDFC Standard Life Insurance Company Limited was incorporated in the year It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India s leading housing finance institution and a Group Company of the Standard Life Plc., UK, a world-renowned financial service provider. It is the first private life 37

3 insurance company to set shop in India. The has its headquarters in Mumbai with about 568 branches and is present in over 700 cities and towns in India with almost 2,00,000 financial consultants. It is one of the leading private companies, offering a healthy mix of traditional and unit linked products which cater to protection, savings, and pension, investment and health requirements of individuals in India. The company has also entered into tie-ups with Sarswat Bank and Indian Bank to sell their insurance products through their network ( iv. Bajaj Allianz Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited was established in India in the year It is a joint venture between Allianz SE, one of the world s largest insurance companies which is present in 70 countries and Bajaj Finserv - a leading financial services provider in India with business interests in life insurance, general insurance and consumer finance in India. The company s headquarter is located in Pune and it has its presence in more than 550 locations with over 60,000 insurance consultants. It ensures excellent insurance and investment solutions by offering customised products which comprises of retirement plans, child plan, term plans, savings and investment plans and health plans ( v. Reliance Life Insurance Company Ltd. Reliance Life Insurance Company was established in India in the year It is a private insurance company subsidiary of Reliance Capital Ltd that comes under the Anil Dhirubhai Ambani Group (ADAG). Reliance Life Insurance has its headquarters in Mumbai with around 1145 branches and 1, 95,000 advisors. It is only the second company among private insurers to have 9001:2000 ISO Certification and has been awarded the "Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit" in the Financial Services category by Council for Fair Business Practices (CFBP). This company also won the DL Shah Quality Council of India Commendation award in February Reliance Life Insurance offers many insurance products like retirement, child, term and investment plans ( vi. Birla Sun Life Insurance Company Limited Birla Sun Life Insurance Company Limited (BSLI) was established in India in the year It is a joint venture between the Aditya Birla Group, a well known and trusted name 38

4 globally amongst Indian conglomerates and Sun Life Financial Incorporation, a leading international financial services organization from Canada. Birla Sun Life Insurance Company with its head office in Mumbai has a vast distribution network of almost 600 branches across India reaching out more than 1500 towns with 133,572 empanelled advisors. It is the first Indian Insurance Company to introduce "Free Look Period" and the same is made mandatory by IRDA for all other life insurance companies. BSLI offers a complete range of offerings comprising of protection solutions, children's future solutions, wealth with protection, health and wellness as well as retirement solutions ( vii. Max New York Life Insurance Company Limited Max New York Life Insurance Company Limited started its operations in India in the year It is a joint venture between Max India Limited, one of India's leading multibusiness corporate and New York Life International, a Fortune 100 company and global expert in life insurance. It is the first life insurance company in India to be awarded the IS0 9001:2000 certification. The company has headquarters in New Delhi with around 133 offices all over the country. It offers comprehensive life insurance and retirement solutions for long-term savings and protection both traditional and unit linked insurance plans and it also offers a variety of flexible products covering both life and health insurance including 8 riders that can be customized to over 800 combinations which enable the customers to choose the policy that suits their needs. The company has a plan for every need, designed as to meet one s long term financial goals and aspirations ( viii. Tata AIG Life Insurance Company Tata AIG Life Insurance Company was incorporated in India in the year It is the joint venture between Tata Group multi-business conglomerate in India and AIA- Asian unit of American International Group (AIG), US based insurance organization. The company with its headquarters in Mumbai has around 200 offices in the country. Tata AIG life has also tie ups with corporate agents for distribution. Tata has entered into both the life Insurance and non-life Insurance business in India as separate businesses. The company has an excellent array of protection, savings and ULIP plans which help them serve the different needs to the customers ( ix. Kotak Mahindra Old Mutual Life Insurance Limited 39

5 Kotak Mahindra Old Mutual Life Insurance Limited was established in India in the year It is a joint venture between Kotak Mahindra Bank Ltd. and its affiliates - India's leading financial institution - that offers a range of financial services ranging from commercial banking, stock broking to mutual funds, life insurance and investment banking and Old Mutual plc., South Africa - an international insurance and investment management company. Kotak Life Insurance is a fast growing life insurance company in India. The company has its headquarters in Mumbai with more than 200 branches and around 5,565 employees. This Life Insurance Company has humble portfolio which includes retirement plans, child plan, term plans, savings and investment plans ( x. Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited Canara HSBC Oriental Bank of Commerce Life Insurance Company was established in India in the year It is a joint venture between Canara Bank - one of the largest banks in India owned by the Indian Government that has a century old history of banking in India, Oriental Bank of Commerce an Indian Government undertaking and HSBC Insurance - one of the world's largest banking and financial services organizations with its headquarters in London. The Canara HSBC Oriental Bank of Insurance has its head office in Gurgaon along with 530 branches all over the country. The company operates a bancassurance model that is exclusive to almost 60 million customers. Term plans, ULIP plans, endowment and child plans are products offered by the Canara HSBC OBC life insurance company ( xi. Star Union Dai-Ichi Life Insurance Company Limited Star Union Dai-ichi Life Insurance Company was established in India in the year It is a joint venture between Bank of India and Union Bank of India - two major public sector banks in India and Dai-Ichi Mutual Life Insurance Company - a leading player in the Life Insurance Segment in Japan. The Star Union Dai-ichi Life Insurance Company with its headquarters in Mumbai operates through the 5400 offices of Bank of India and Union Bank, spread across the length and breadth of the country. It offers insurance to the rural as well as other weaker social sectors of the society. The list of insurance products offered by the company is term plan, endowment plan, ULIP plan, annuity plan and whole life plan ( 40

6 xii. Aviva Life Insurance Company India Limited Aviva India Life Insurance Company was established in India in the year It is a joint venture between Dabur India - one of India's oldest and largest traditional healthcare products group and the 4 th largest FMCG Company in India and Aviva Plc UK s largest and the 6 th largest insurance group worldwide. In India, Aviva Life Insurance was the first to come up with the Bancassurance concept. Currently, the company has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd., and Punjab and Sind Bank. The company with its head office in Gurgaon has 20,000 financial planning advisers in 195 branches across the country. Aviva offers various products that are meant to provide customers with flexibility, transparency and value for money. Its products include fixed term protection plans, endowment plans, child policy and single premium plans ( xiii. India First Life Insurance Company Limited India First Life Insurance Company Limited was established in India in the year 2010, the youngest life insurance company. It is a joint venture of Bank of Baroda and Andhra Bank - two largest public sector banks in India and Legal and General - one of UK s leading financial institutions. The Company has its headquarter in Mumbai with more than 1000 branches in the Indian cities and towns. It has targeted the 'bancassurance' model that it extends to over 4800 promoter branch banks across the country. Term insurance plan, ULIP plan, endowment plan, annuity plan and health plan are the variety of products offered by the company to its customers ( xiv. MetLife India Insurance Company Private Limited MetLife India Insurance Company Private Limited was incorporated in India in the year It is a joint venture between MetLife International Holdings Incorporation and its Indian partners including J & K Bank, M. Pallonji and Co, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, Bonanza Insurance (Pvt) Ltd. and Mini Muthoothut. The company has its head office in Bangalore with more than 600 branches and 50,000 insurance advisors in India. It is ranked 88 th on the "FORTUNE 500 Companies" list. Forbs magazine named MetLife as 'Best Managed Insurance Company for 2008'. This 41

7 insurance company was awarded as one of the "100 Best Companies for Working Mothers" by 'Working Mother' magazine. The list of products offered by the company is protection, savings, investments, child, pension and health plans ( xv. ING Vysya Life Insurance Company Limited ING Vysya Life Insurance Company Limited was established in India in the year It is a joint venture between Vysya Bank - one of the largest private sector banks in India, and ING (International Netherlands Group), Insurance Company - the world s second largest life insurance company located in Amsterdam. The company has its head office in Bangalore with around 140 branches all over India. It has around 3000 employees and over 21,000 sales insurance agents and brokers. This company provides special policies, such as protection plans, Children s plans, Retirement plans, Investment plans and savings plans, medical insurance, general insurance, long-term care insurance, group insurance, company insurance and financial services insurance products ( xvi. Shriram Life Insurance Company Limited Shriram Life Insurance Company Limited established in India in the year It is the joint venture between the Shriram Group - one of the largest and well-respected financial services conglomerates in India and the Sanlam Group - one of the largest providers of life insurance in South Africa. The company has its headquarters in Hyderabad with a large network of 630 offices and 75,000 agents across India. The company offers new ULIP plans and traditional plans that are tailor-made to perfectly suit the needs of the customer ( xvii. Future Generali India Life Insurance Company Limited Future Generali India Life Insurance Company was established in India in the year It is a joint venture between Future Group - one of India s leading business groups with interest in retail, consumer finance, insurance, real estate and the entertainment space and Generali Group - a leading player in the global insurance and financial markets with a majority presence in Europe. The company has its headquarters in Mumbai with 150 odd branches across India. They have also pioneered selling insurance through their network 42

8 of malls and retail stores. Future Generali India Life Insurance Company provides different insurance plans like protection plans, savings plan, child plan and retirement plan ( xviii. IDBI Fortis Life Insurance Company Limited IDBI Federal Life Insurance Company was established in India in the year It is a joint venture between IDBI Bank Limited - India s premier industrial development bank, Federal Bank - one of India s leading private sector banks, with a dominant presence in the state of Kerala, and Aeges - an international insurance group composed of AG Insurance, the overall market leader in life and non-life insurance in Belgium. The IDBI Fortis for its sales force, won The Bronze Dragon in the category for Best Dealer / Sales Force activity at the Promotion Marketing Awards of Asia (PMAA). IDBI Fortis has its headquarters in Mumbai with 35 branches across the country. It also offers services through a nationwide network across the branches of IDBI Bank and Federal Bank in addition to the network of advisors and partners. The company offers plans like term insurance plan, child plan, endowment plan, ULIP plan and health plan to satisfy their customer ( xix. Bharti AXA Life Insurance Company Limited Bharti AXA Life Insurance Company Limited was established in India in the year It is a joint venture between Bhart, one of India's leading business groups in telecom, agricultural business and retail and AXA, a global leader in financial protection and wealth management in Paris. The insurance company with its head office in Mumbai has a vast distribution network spread around 123 cities around India. It offers a wide array of life insurance plans for protection, wealth creation, retirement and health care to its customers ( xx. AEGON Religare Life Insurance Company Limited AEGON Religare Life Insurance Company (ARLI) was established in India in the year It is a joint venture between AEGON - one of the world s largest providers of life insurance, pension, long-term savings and investment products with its headquarters in Netherlands, Religare Enterprises Limited - one of the leading integrated financial services groups in India and Bennett, Coleman & Company - part of the mammoth Times Group, 43

9 India s largest media house. The AEGON Religare Life Insurance Company has its headquarters in Mumbai with a wide range of network with 100 branches all over the country. AEGON Religare has launched multiple products such as term insurance plan, ULIP plans, endowment plan, annuity plan, money back plan, child plan and health plan. The company also offers iterm Plan which is the cheapest term insurance plan available in India, an online product which can be purchased on the internet by anyone ( xxi. Sahara India Life Insurance Company Limited Sahara India Life Insurance Company Limited was established in India in the year Sahara Life Insurance is the first wholly Indian-owned company in the Indian life insurance market without any collaboration with the organizations abroad. The Sahara India Pariwar is a big enterprise with varied business interests finance, real estate and entertainment to name a few. The insurance company has its head office in Lucknow and it offers both individual and group insurance products like, endowment plan, money back policy, term plan, pension plan and unit linked plans ( xxii. DLF Pramerica Life Insurance Company Limited DLF Pramerica Life Insurance Company (DPLI) was established in India in the year It is a joint venture between DLF Limited - one of the leading organizations in real estate in India and Prudential International Insurance Holdings - a subsidiary of US based Prudential Financial - a financial services leader incorporated with its principal place of business in the United States, and its affiliated companies in Asia, Europe and Latin America. The company has its head office in Gurgaon. The main feature of this insurance company includes customer support, mutual respect, trust and confidence. The DPLI Company satisfy the wants of their customers by providing various products like term plan, child plan, ULIP plan, endowment plan and money back plan ( TYPES OF POLICIES The private life insurance companies offer a wide variety of plans to attract and fulfill the requirements of the general public. The policies are grouped under eight plans whose features may vary from company to company and are discussed in the paragraphs that follow. 44

10 i. Term Insurance Plan This plan is a life insurance policy which provides coverage for a limited period of time. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis. ii. Children s Plan This plan is designed to meet the children s future education and marriage cost. On survival, the insured receives money at the same pre-determined time. The nominee receives a guaranteed amount of money at a pre-determined time and not immediately on death of the insured. As the children cannot enter into contracts, policies on the lives of children are taken out by other elders. When the child becomes a major and component to contract, the child may assume the ownership of the policy. iii. Group Insurance Plan This is a single policy under which a group of persons are covered. The sum assured under group insurance is not selected or fixed by the individual himself but it is determined for the entire group by a pre-determined formula. The sum assured up to a particular limit is available to each person as the maximum sum assured that can be granted without medical examination ( iv. Protection Plan This plan is specially designed to serve the protection needs of the policyholders and by doing so, safeguarding one s family from the financial constraints of unfortunate circumstances such as unexpected demise of earning member, or owing to critical illness of the bread-winner of the family, etc., which are unforeseeable. v. Pension / Retirement Plan This plan is designed to fulfill the needs of retired persons. This plan provides benefits to the insured only upon retirement. If the insured dies during the term of the policy, his nominees would receive the benefits either as a lump sum or as a pension every month. 45

11 vi. Women Insurance Plan This plan is developed to meet the financial freedom or economic independence of the homemakers. The insured receives money at regular intervals during the term. vii. Health Plan This plan is designed to cover the health-related risks. Under this plan, the insured can reimburse the medical expenses from the insurance company subject to the norms and conditions specified in the policy and the statutory provisions of the corporation. viii. Joint Life Plan This plan is developed to cover the life risk of the family members jointly. Under this plan the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid beside the sum assured after the death of the survivor. If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the date of maturity. ix. Unit Linked Insurance Plan (ULIP) This plan is designed to provide benefit of risk protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained, called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying asset at the time. In a ULIP, the invested amount of the premiums after deducting for all the charges and premium for risk cover under all policies in a particulars fund as chosen by the policyholders are pooled together to from a Unit is the component of the Fund in a Unit Linked Insurance Policy. The returns in a ULIP depend upon the performance of the fund in the capital market PREMIUM PAYMENT OPTIONS The private life insurance companies are offering various methods of premium payment options to fulfill the customers requirements and preferences and are explained in the following paragraphs. i. At Cash Counter The policyholder can pay the premium amount in the form of cash directly in the cash counter of the insurance company. 46

12 ii. Cheque / Demand Draft The policyholder can deposit a cheque or a demand draft directly in the cash counter or can use the drop boxes where he can drop his cheque or demand draft. iii. Standing Instructions to Banks The policyholder can give a standing instruction to his bank in writing to remit the premium for his policy. The banker pays the premium to the concerned life insurance company on the due date on behalf of his customer. iv. Credit Card The policyholder can also pay the premium amount by using his credit card after registering the card number with the insurance company. v. Direct Debit Direct Debit option is same like Standing Instruction to Banks, but here the policyholder can give instruction to pay the premium amount by directly debiting his account only from the banks that has been approved by his private insurance company. vi. Bank The policyholder has the option to remit his policy premium amount in any of the banks that has been approved by his private life insurance company. vii. Automatic Teller Machine (ATM) The policyholder can also pay the premium amount through his ATM card by registering his name and required details with the insurance company s associate banks. viii. Net Banking The policyholder can renew his premium payments through Net Banking facility by registering the required details in the website of the concerned life insurance company, designated banks or service providers. ix. Bill Desk and Bill Junction 47

13 The policyholder can pay the premium amount through bill desk and bill junction by logging on to the website of Bill Desk ( or Bill Junction ( Before that, the policyholder has to register his name and insurance company in the website for renewing his premium payment VARIOUS FACILITIES OFFERED BY PRIVATE LIFE INSURANCE COMPANIES The private life insurance companies offer various facilities to attract the prospective customers and also to retain the existing customers. The facilities differ from company to company and policy to policy and are given in the following paragraphs. i. Free Look Period This is the time period allowed by the insurance company to policyholders for counseling the policy i.e. in case the policyholder is not satisfied with any of the terms and conditions of the policy, the policyholder may return the policy to the company within fifteen days of its receipt for cancellation stating his/her objections. In this case the company repays the premium paid by the policyholder after deducting a proportionate premium for the risk taken by the company during the period and the expenses relating to medical examination and stamp duty charges. ii. Provision for Alteration in Policy Document A policyholder has the option to alter his existing policy details such as name, address, nominee and sum assured, subject to the prevailing statutory obligations of the insurance company. iii. Switching Option The insurance company facilitates the policyholder to transfer his investment from one plan to another plan in order to suit the policyholders changing investment needs. The number of switches allowed to the policyholder varies from one insurance company to another. iv. Top-up Premium Payment It refers to one-time payments in which the policyholder has the flexibility to make an additional investment through a top-up, which is over and above his regular premium payments. He can make a top-up at any time while the policy is in force. The applicable norms for top-ups may differ from company to company and plan to plan. 48

14 v. Change in Periodicity of Premium Payment The policyholder has the option to change his period of premium payment. It means, the policyholders can change his periodicity of premium payment to annually or half-yearly or quarterly or even monthly whenever he/she desires. vi. Grace Period It is the time period allowed to the policyholder to pay their premium after the due date for payment of premiums. Usually a period of 30 days is allowed as grace period and in case of monthly mode, a grace period of 15 days is allowed by the insurance company ( vii. Partial Withdrawal Partial withdrawal means the withdrawal of only a part of the funds of the policy before the maturity date. But the insurance company allows this facility to its policyholder only after certain duration, normally five years from the date of commencement of the policy. viii. Surrender of Policy The policyholder has the option to surrender his policy when he/she decides to discontinue the policy. However, the insurance company permits the policyholder to surrender his/her policy and pays back the amount only if the policyholder has paid the premium amount for certain period, normally three years from the date of commencement of policy. Once the policy is surrendered, the insurance protection provided under the policy also ceases. ix. Settlement Option Settlement option is the option given to the policyholder by the insurance company to take the maturity amount in periodic installments within a maximum period of 5 years from the date of maturity. The installments will be in the form of lump sum or in frequent withdrawals. During this period, the policyholder will not have any life cover VARIOUS CHARGES IMPOSED BY THE PRIVATE LIFE INSURANCE COMPANIES 49

15 The private life insurance companies are imposing various charges for the services they are rendering at different stages of the policy and it differs from company to company and plan to plan. A brief note about these charges is given in the following paragraphs. i. Policy Administration Charge This charge is levied by the insurance company to pay the costs of maintaining the policy, including accounting and record keeping and the charge is usually deducted from the policy value once a month. ii. Fund Management Charge This charge is imposed to compensate the fund managers for their work and the charge is usually deducted from the price paid for the shares of underlying fund options, and not directly from the cash value. iii.premium Allocation Charge This charge is normally levied for the premium allocation process, where a certain percentage of each regular premium is allocated to purchase units at the prevailing unit price and the balance amount is taken as premium allocation charge. It varies depending upon the insurance plan that one choose. iv. Switching Charge This charge is levied by the insurance company at the time of transfer of investment from one plan to another. Normally the insurance company provides free switches for a certain number of times during the policy year and any additional switches will only be charged. v. Partial Withdrawal Charge This charged is paid by the policyholder while withdrawing his policy amount in part before the maturity date. Normally the insurance companies do not levy this charge for the first withdrawal. vi. Surrender Charge 50

16 This charge is levied for cancellation of the life insurance policy and it is is used to cover the costs of keeping the insurance policy on the insurance provider's books. If the policyholder informs the insurance company in advance of the cancellation of his or her policy, and then continues to pay for a period of time before the actual cancellation, the surrender charge is usually waived. This charge varies upon the number of premium paid and the frequency of premium payment. vii. Policy Revival Charge This charge is levied by the insurance company when the policyholder revives his lapsed policy within the specified duration. Normally an amount of `.250 is charged as policy revival charge. viii. Mortality Charge This charge is imposed by the insurance company to compensate in the case if the insured person does not live to the assumed age and it is generally charged once a month. ix. Miscellaneous Charge This charge is basically levied for any alteration in the policy like change in mode of premium payment, increase or decrease in regular premium and for additional servicing. This charge varies from company to company. 4.3 LEVEL OF AWARENESS Policyholders awareness on private life insurance has been measured by giving scores to awareness related questions. Sixty such questions are included in the questionnaire. Answers to the questions have been rated on five-point scale. Thus, the maximum score a policyholder would get is 300. Score obtained by each policyholder is divided by 300 and multiplied by 100 to convert it into an index. This index is termed as awareness index. The level of awareness thus calculated ranges between and and the grand mean of awareness index is Of the 438 policyholders, 205 (46.80 per cent) are with awareness indices above the average and 233 (53.20 per cent) are with awareness indices below the average. Based on the awareness index, the policyholders are divided into three groups as policyholders with low, medium and high level of awareness. In order to classify the policyholders into three such groups, quartiles have been made use of. Accordingly, 51

17 policyholders with awareness index ranging upto are termed as policyholders of low level of awareness; those with awareness index between and are termed as policyholders of medium level of awareness and those policyholders with awareness index above are termed as policyholders of high level of awareness. Of the 438 policyholders, 61 (13.93 per cent) have low level of awareness; 316 (72.14 per cent) have medium level of awareness and the rest 61 (13.93 per cent) have high level of awareness. 4.4 VARIABLES INFLUENCING LEVEL OF AWARENESS Fifteen variables namely, area of residence, gender, age, marital status, educational qualification, occupation, type of family, status in the family, number of earning members in the family, number of non-earning members in the family, total number of members in the family, monthly income, family income per month, family expenditure per month and total savings per have been selected in order to test whether the observation on level of awareness differs based on these variables and if there really exists any association between each of the variables and level of awareness. Analysis of Variance (ANOVA), Post hoc and Chi-square test have been made use to study differences in mean values and association between the variables and level of awareness identified, respectively. Levels of significance chosen are one, five and ten per cent Area of Residence To ascertain whether there exist any differences in the mean values of awareness index among three groups of policyholders classified based on area of residence, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of area of residence Area of Residence Table 4.1 Area of Residence and Awareness Index Policyholders Average Awareness Index Range Urban 174 (39.73%) Semi-Urban 124 (28.31%) Rural 140 (31.96%)

18 Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: *** Five per cent level: One per cent level: Out of 438 policyholders, 174 (39.73 per cent) reside in urban area. The average awareness index is Of them, 78 (44.83 per cent) are with awareness index above the average and 96 (55.17 per cent) are with awareness index below the average. Awareness index ranges from 46 to One hundred and twenty-four (28.31 per cent) policyholders reside in semi-urban area. The average awareness index is Of them, 53 (42.74 per cent) are with awareness index above the average and 71 (57.26 per cent) are with awareness index below the average. Awareness index ranges from to One hundred and forty (31.96 per cent) policyholders reside in rural area. The average awareness index is Of them, 70 (50.00 per cent) are with awareness index above the average and 70 (50.00 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high in semi-urban area. Hence, it can be said that policyholders residing in semi-urban area are with high level of awareness. As the calculated F value is greater than the table value at one per cent level, there exist highly significant differences in mean awareness index among policyholders classified on the basis of their area of residence. Hence, the null hypothesis is rejected. To find out the category of policyholders who differs significantly from other policyholders with respect to awareness on private life insurance, the following table has been framed using post hoc test. Table 4.2 Area of Residence and Awareness Post Hoc Test (I) Area of Residence (J) Area of Residence Mean Difference Significance Semi-Urban Rural *** Urban *** Significant at one per cent level 53

19 From the above post hoc test, it is observed that policyholders residing in semi-urban area differ significantly from policyholders residing in rural area at one percent level which signifies that policyholders residing in semi-urban area have higher level of awareness on private life insurance than policyholders residing in rural area. To examine if area of residence is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Area of residence does not influence the level of awareness on private life insurance Table 4.3 Area of Residence and Level of Awareness Area of Residence Level of Awareness Total Low Medium High Area Semi-Urban Rural (14.94%) 10 (8.06%) 25 (17.86%) (71.26%) 88 (70.97%) 104 (74.29%) (13.79%) 26 (20.97%) 11 (7.86%) Total d.f.: 4 Calculated χ 2 Value: ** Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, 174 (39.73 per cent) reside in urban area. Of them, 26 (14.94 per cent) have low level of awareness; 124 (71.26 per cent) have medium level of awareness and 24 (13.79 per cent) have high level of awareness. One hundred and twenty-four (28.31 per cent) policyholders reside in semi-urban area. Of them, 10 (8.06 per cent) have low level of awareness; 88 (70.97 per cent) have medium level of awareness and 26 (20.97 per cent) have high level of awareness. There are 140 (31.96 per cent) policyholders who reside in rural area. Of them, 25 (17.86 per cent) have low level of awareness; 104 (74.29 per cent) have medium level of awareness and 11 (7.86 per cent) have high level of awareness. The percentage of policyholders who have high level of awareness is high among policyholders residing in semi-urban area while low level of awareness is high 54

20 among policyholders residing in rural area. Hence, it is found that policyholders residing in semi-urban area are with high level of awareness. As the calculated Chi-square value is greater than the table value at five per cent level, there exist a significant association between area of residence and level of awareness on private life insurance. Therefore, the null hypothesis is rejected Gender To ascertain whether there exist any differences in the mean values of awareness index among two groups of policyholders classified based on gender, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among two groups of policyholders classified on the basis of gender Gender Table 4.4 Gender and Awareness Index Policyholders Average Awareness Index Range Male 266 (60.73%) Female 172 (39.27%) Total d.f.: ν 1 1, ν Table Value: Ten per cent level: Calculated F Value: Five per cent level: One per cent level: Out of 438 policyholders, 266 (60.73 per cent) are male. The average awareness index is Of them, 133 (50.00 per cent) are with awareness index above the average and 133 (50.00 per cent) are with awareness index below the average. Awareness index ranges from to One hundred and seventy-two (39.27 per cent) policyholders are female. The average awareness index is Of them, 83 (42.74 per cent) are with awareness index above the average and 71 (57.26 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among female policyholders. Hence, it can be said that female policyholders are with high level of awareness. As the calculated F value is lesser 55

21 than the table value at ten per cent level, there does not exist any significant difference in mean awareness index among policyholders classified on the basis of the gender. Hence, the null hypothesis is accepted. To examine if gender is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Gender does not influence the level of awareness on private life insurance Male Female Gender Table 4.5 Gender and Level of Awareness Level of Awareness Low Medium High 41 (15.40%) 20 (11.60%) 193 (72.60%) 123 (71.50%) 32 (12.00%) 29 (16.90%) Total Total d.f.: 2 Calculated χ 2 Value: Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, 266 (39.73 per cent) are male. Of them, 41 (15.40 per cent) have low level of awareness; 193 (72.6 per cent) have medium level of awareness and 32 (12.0 per cent) have high level of awareness on private life insurance. One hundred and seventy-two (28.31 per cent) policyholders are female. Of them, 20 (11.60 per cent) have low level of awareness; 123 (71.50 per cent) have medium level of awareness and 29 (16.90 per cent) have high level of awareness. The percentage of policyholders who have high level of awareness is high among female policyholders while low level of awareness is high among male policyholders. Hence, it is found that female policyholders are with high level of awareness. However, as the calculated Chi-square value is lower than the table value at ten per cent level, there does not exist any significant association between gender and level of awareness on private life insurance. Therefore, the null hypothesis is accepted Age 56

22 Quartiles have been used to classify the policyholders, based on their age such as low, medium and high. Accordingly, policyholders whose age is up to 27, between 28 and 44 and above 45 years are termed as low, medium and high age groups respectively. To ascertain whether there exist any difference in the mean values of awareness index among three groups of policyholders classified based on their age, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of their age Table 4.6 Age and Awareness Index Average Age Policyholders Range Awareness Index Low 80 (18.26%) Medium 270 (61.64%) High 88 (20.10%) Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: Five per cent level: One per cent level: Out of 438 policyholders, 80 (18.26 per cent) policyholders belong to low age group. The average awareness index is Of them, 40 (50.00 per cent) are with awareness index above the average and 40 (50.00 per cent) are with awareness index below the average. Awareness index ranges from to Two hundred and seventy (61.64 per cent) policyholders belong to moderate age group. The average awareness index is Of them, 128 (47.41 per cent) are with awareness index above the average and 142 (52.59 per cent) are with awareness index below the average. Awareness index ranges from to Eighty-eight (20.10 per cent) policyholders belong to high age group. The average awareness index is Of them, 44 (50.00 per cent) are with awareness index above the average and 44 (50.00 per cent) are with awareness index below the average. Awareness index ranges from to

23 Mean awareness index is high among the policyholders with low age. Hence, it can be said that policyholders with low age are with high level of awareness. However, as the calculated F value is lesser than the table value at ten per cent level, there does not exist any significant difference in mean awareness index among policyholders classified on the basis of age. Hence, the null hypothesis is accepted. To examine if the policyholders age is associated with the level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Age of the policyholders does not influence the level of awareness on private life insurance Table 4.7 Age and Level of Awareness Age Level of Awareness Low Medium High Total Low 11 (13.80%) 56 (70.00%) 13 (16.30%) 80 Medium 40 (14.80%) 191 (70.70%) 39 (14.40%) 270 High 10 (11.40%) 69 (78.40%) 9 (10.20%) 88 Total d.f.: 4 Calculated χ 2 Value: 2.40 Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, 80 (39.73 per cent) policyholders belong to low age group. Of them, 11 (13.80 per cent) have low level of awareness; 56 (70.0 per cent) have medium level of awareness and 13 (16.30 per cent) have high level of awareness. Two hundred and seventy (28.31 per cent) policyholders belong to medium age group. Of them, 40 (14.80 per cent) have low level of awareness; 191 (70.70 per cent) have medium level of awareness and 39 (14.40 per cent) have high level of awareness. Eighty-eight (31.96 per cent) policyholders belong to high age group. Of them, 10 (11.40 per cent) have low level of awareness; 69 (78.40 per cent) have medium level of awareness and nine (10.20 per cent) have high level of awareness. 58

24 The percentage of policyholders who have high level of awareness is high among policyholders of low age group while low level of awareness is high among policyholders of medium age group. Hence, it is inferred that policyholders of low age group area are with high level of awareness. However, as the calculated Chi-square value is lower than the table value at ten per cent level, there does not exist any significant association between policyholders age and level of awareness on private life insurance. Therefore, the null hypothesis is accepted Marital Status To ascertain whether there exist any difference in the mean values of awareness index among two groups of policyholders classified based on marital status, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among two groups of policyholders classified on the basis of marital status. Marital Status Table 4.8 Marital Status and Awareness Index Policyholders Average Awareness Index Range Married 351 (80.14%) Unmarried 87 (19.86%) Total d.f.: ν 1 1, ν Table Value: Ten per cent level: Calculated F Value: Five per cent level: One per cent level: Out of 438 policyholders, 351 (80.14 per cent) policyholders are married. The average awareness index is Of them, 161 (45.87 per cent) are with awareness index above the average and 190 (54.13 per cent) are with awareness index below the average. Awareness index ranges from to Eighty-seven (19.86 per cent) policyholders are unmarried. The average awareness index is Of them, 43 (49.43 per cent) are with awareness index above 59

25 the average and 44 (50.57 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among the unmarried policyholders. Hence, it can be said that policyholders who are unmarried are with high level of awareness. However, as the calculated F value is lesser than the table value at ten per cent level, there does not exist any significant difference in mean awareness index among policyholders classified on the basis of their marital status. Hence, the null hypothesis is accepted. To examine if marital status of the policyholder is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Marital status does not influence the level of awareness on private life insurance Table 4.9 Marital Status and Level of Awareness Married Unmarried Marital Status Level of Awareness Low Medium High 50 (14.20%) 11 (12.60%) 252 (71.80%) 64 (73.60%) 49 (14.00%) 12 (13.80%) Total Total d.f.: 2 Calculated χ 2 Value: Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, 351 (39.73 per cent) are married. Of them, 50 (14.20 per cent) have low level of awareness; 252 (71.80 per cent) have medium level of awareness and 49 (14.00 per cent) have high level of awareness. Eighty-seven (28.31 per cent) policyholders are unmarried. Of them, 11 (12.60 per cent) have low level of awareness; 64 (73.60 per cent) have medium level of awareness and 12 (13.80 per cent) have high level of awareness. The percentage of policyholders who have high level of awareness is high among policyholders who are married while low level of awareness is also high among 60

26 policyholders who are married. Comparing the percentages, it is found that married policyholders are with low level of awareness. However, as the calculated Chi-square value is lower than the table value at ten per cent level, there does not exist a significant association between marital status and level of awareness on private life insurance. Therefore, the null hypothesis is accepted Educational Qualification To ascertain whether there exist any difference in the mean values of awareness index among seven groups of policyholders classified based on educational qualification, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among seven groups of policyholders classified on the basis of educational qualification. Educational Qualification Table 4.10 Educational Qualification and Awareness Index Policyholders Average Awareness Index Range Illiterate 6 (1.37 %) Primary 26 (5.94 %) SSLC 45 (10.27 %) HSC 55 (12.56) Under-Graduate 108 (24.66 %) Post-Graduate 128 (29.22 %) Professional 70 (15.98 %) Total d.f.: ν 1 6, ν Table Value: Ten per cent level: Calculated F Value: *** Five per cent level: One per cent level: Out of 438 policyholders, six (1.37 per cent) are illiterates. The average awareness index is Of them, two (33.33 per cent) are with awareness index above the average and four (66.67 per cent) are with awareness index below the average. Awareness index ranges from to

27 Twenty-six (5.94 per cent) policyholders are educated up to primary level. The average awareness index is Of them, 15 (57.69 per cent) are with awareness index above the average and 11 (42.31 per cent) are with awareness index below the average. Awareness index ranges from to Forty-five (10.27 per cent) policyholders are educated up to SSLC. The average awareness index is Of them, 21 (46.67 per cent) are with awareness index above the average and 24 (53.33 per cent) are with awareness index below the average. Awareness index ranges from to Fifty-five (12.56 per cent) policyholders are educated up to HSC. The average awareness index is Of them, 25 (45.45 per cent) are with awareness index above the average and 30 (54.55 per cent) are with awareness index below the average. Awareness index ranges from to One hundred and eight (24.66 per cent) policyholders are under-graduates. The average awareness index is Of them, 50 (46.30 per cent) are with awareness index above the average and 58 (53.70 per cent) are with awareness index below the average. Awareness index ranges from to One hundred and twenty-eight (29.22 per cent) policyholders are post-graduates. The average awareness index is Of them, 62 (48.44 per cent) are with awareness index above the average and 66 (51.56 per cent) are with awareness index below the average. Awareness index ranges from to There are 70(15.98 per cent) policyholders who are in the professional category. The average awareness index is Of them, 35 (50.00 per cent) are with awareness index above the average and 35 (50.00 per cent) are with awareness index below the average. Awareness index ranges between and Mean awareness index is high among under-graduates. Hence, it can be said that policyholders who are under-graduates are with high level of awareness. As the calculated F value is greater than the table value at one per cent level, there exists a highly significant difference in mean awareness index among policyholders classified on the basis of their educational qualification. Hence, the null hypothesis is rejected. 62

28 To find out the category of policyholders who differ significantly from other policyholders with respect to awareness on private life insurance, the following table has been framed using post hoc test. Table 4.11 Educational Qualification and Awareness Index - Post Hoc Test (I) Educational Qualification (J) Educational Qualification Mean Difference Significance Under-Graduate Illiterate Primary SSLC HSC Post-Graduate Professional *** *** Significant at one per cent level From the above post hoc test, it is observed that policyholders who are under graduates differ significantly from policyholders educated up to primary level at one per cent level which signifies that policyholders who are under-graduates have higher level of awareness on private life insurers than policyholders who are educated up to primary level. To examine if educational qualification is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Educational qualification does not influence the level of awareness on private life insurance Table 4.12 Educational Qualification and Level of Awareness Educational Qualification Level of Awareness Low Medium High Total Illiterate 0 (0.0%) 6 0 (0.0%) 6 Primary 9 (34.60%) 17 (65.40%) 0 (0.0%) 26 SSLC 7 (15.60%) 35 (77.80%) 3 ((6.70%)) 45 63

29 HSC Under-Graduate Post-Graduate Professional 8 (14.50%) 11 (10.20%) 19 (14.80%) 7 (10.00%) 41 (74.50%) 83 (76.90%) 86 (67.20%) 48 (68.60%) 6 (10.90%) 14 (13.00%) 23 (18.00%) 15 (21.40%) Total d.f.:12 Calculated χ 2 Value: *** Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, six (39.73 per cent) are illiterate; of them all the six (100 per cent) policyholders are with medium level of awareness. Twenty-six (28.31 per cent) policyholders are educated up to primary level. Of them, nine (34.60 per cent) have low level of awareness and 17 (65.40 per cent) have medium level of awareness. Forty-five (31.96 per cent) policyholders are educated up to SSLC. Of them, seven (15.60 per cent) have low level of awareness; 35 (77.80 per cent) have medium level of awareness and three (6.70 per cent) have high level of awareness. There are 55 (31.96 per cent) policyholders educated up to HSC. Of them, eight (14.50 per cent) have low level of awareness; 41 (74.50 per cent) have medium level of awareness and six (10.90 per cent) have high level of awareness. One hundred and eight (31.96 per cent) policyholders are under graduates. Of them, 11(10.20 per cent) have low level of awareness; 83 (76.90 per cent) have medium level of awareness and 14 (13.00 per cent) have high level of awareness. One hundred and twenty-eight (31.96 per cent) policyholders are post graduates. Of them, 19 (14.80 per cent) have low level of awareness; 86 (67.20 per cent) have medium level of awareness and 23 (18.00 per cent) have high level of awareness. 64

30 In professional category, there are 70 (31.96 per cent) policyholders. Of them, seven (10.00 per cent) have low level of awareness; 48 (68.60 per cent) have medium level of awareness and 15 (21.40 per cent) have high level of awareness. The percentage of policyholders who have high level of awareness is high among policyholders whose professional qualification while low level of awareness is high among policyholders who are educated up to primary level. Hence, it is found that policyholders with professional qualification are with high level of awareness. However, as the calculated Chi-square value is greater than the table value at one per cent level, there exist a significant association between educational qualification and level of awareness on private life insurance. Therefore, the null hypothesis is rejected Occupation To ascertain whether there exist any differences in the mean values of awareness index among six groups of policyholders classified based on occupation, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among six groups of policyholders classified on the basis of occupation. Occupation Table 4.13 Occupation and Awareness Index Policyholders Average Awareness Index Range Agriculture 88 (20.10%) Business 99 (22.60%) Govt. Employee 40 (9.13%) Private Sector Employee 97 (22.15%) Professional 61 (13.93%) Others 53 (12.10%) Total d.f.: ν 1 5, ν Table Value: Ten per cent level: Calculated F Value: 4.183*** Five per cent level: One per cent level:

31 Out of 438 policyholders, 88 (20.10 per cent) are agriculturist. The average awareness index is Of them, 38 (43.18 per cent) are with awareness index above the average and 50 (56.82 per cent) are with awareness index below the average. Awareness index ranges from to Ninety-nine (22.60 per cent) policyholders are businessmen. The average awareness index is Of them, 48 (48.48 per cent) are with awareness index above the average and 51 (51.52 per cent) are with awareness index below the average. Awareness index ranges from to Forty (9.13 per cent) policyholders are government employees. The average awareness index is Of them, 18 (45.00 per cent) are with awareness index above the average and 22 (45.00 per cent) are with awareness index below the average. Awareness index ranges from to Ninety-seven (22.15 per cent) policyholders are private sector employees. The average awareness index is Of them, 51 (52.58 per cent) are with awareness index above the average and 46 (47.42 per cent) are with awareness index below the average. Awareness index ranges from to Sixty-one (13.93 per cent) policyholders are professionals. The average awareness index is Of them, 28 (45.90 per cent) are with awareness index above the average and 33 (54.10 per cent) are with awareness index below the average. Awareness index ranges from to There are 53 (12.10 per cent) policyholders who come in other categories like housewife, students and unemployed. The average awareness index is Of them, 24 (45.28 per cent) are with awareness index above the average and 29 (54.72 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among the policyholders belonging to other categories. Hence, it can be said that policyholders who come under other categories are with high level of awareness. As the calculated F value is greater than the table value at one per cent level, there exists a highly significant difference in mean awareness index among policyholders classified on the basis of their occupation. Hence, the null hypothesis is rejected. 66

32 To find out the category of policyholders who differs significantly from other policyholders with respect to awareness on private life insurance, the following table has been framed using post hoc test. Others Table 4.14 Occupation and Awareness Post Hoc Test (I) Occupation (J) Occupation Mean Difference Significance (Housewife, Students and Unemployed) Agriculture Business Government Employee Private Sector Employee Professional *** Significant at one per cent level *** From the above post hoc test, it is observed that policyholders who come under other category differ significantly from policyholders who are agriculturist at one per cent level which signifies that policyholders who come under other categories have higher level of awareness on private life insurers than policyholders who are agriculturist. To examine if occupation is associated with their level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Occupation does not influence the level of awareness on private life insurance Agriculture Business Occupation Govt. Employee Private Sector Employee Professional Others Table 4.15 Occupation and Level of Awareness Level of Awareness Low Medium High (22.70%) (75.00%) (2.30%) (12.10%) (71.70%) (16.20%) (10.00%) (72.50%) (17.50%) (15.50%) (71.10%) (13.40%) (11.50%) (68.90%) (19.70%) (5.70%) (73.60%) (20.80%) Total

33 Total d.f.: 10 Calculated χ 2 Value: ** Table Value: Ten per cent level: Five per cent level: One per cent level: Of the 438 policyholders, 88 (20.10 per cent) policyholders are agriculturist. Of them, 20 (22.70 per cent) have low level of awareness; 66 (75.00 per cent) have medium level of awareness and two (2.30 per cent) have high level of awareness. Ninety-nine (22.60 per cent) policyholders are business persons. Of them, 12 (12.10 per cent) have low level of awareness; 71 (71.70 per cent) have medium level of awareness and 16 (16.20 per cent) have high level of awareness. Forty (9.13 per cent) policyholders are government employees. Of them, four (10.00 per cent) have low level of awareness; 29 (72.50 per cent) have medium level of awareness and seven (17.50 per cent) have high level of awareness. Ninety-seven (22.15 per cent) policyholders are private sector employees. Of them, 15 (15.50 per cent) have low level of awareness; 69 (71.10 per cent) have medium level of awareness and 13 (13.40 per cent) have high level of awareness. Sixty-one (13.93 per cent) policyholders are professionals. Of them, seven (11.50 per cent) have low level of awareness; 42 (68.90 per cent) have medium level of awareness and 12 (19.70 per cent) have high level of awareness. There are 53 (12.10 per cent) policyholders who come under the other categories. Of them, three (5.70 per cent) have low level of awareness; 39 (73.60 per cent) have medium level of awareness and 11 (20.80 per cent) have high level of awareness. The percentage of policyholders who have high level of awareness is high among the other category policyholders while low level of awareness is high among the agriculturist. Hence, it is found that the policyholders of other category are with high level of awareness. However, as the calculated Chi-square value is greater than the table value at five per cent level, there exist a significant association between occupation and level of awareness on private life insurance. Therefore, the null hypothesis is rejected Type of Family 68

34 To ascertain whether there exist any differences in the mean values of awareness index among two groups of policyholders classified based on type of family, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among two groups of policyholders classified on the basis of type of family. Table 4.16 Type of Family and Awareness Index Type of Family Policyholders Average Awareness Index Range Joint 171(39.04%) Nuclear 267 (60.96%) Total d.f.: ν 1 1, ν Table Value: Ten per cent level: Calculated F Value: Five per cent level: One per cent level: Out of 438 policyholders, 171 (39.04 per cent) policyholders belong to joint family. The average awareness index is Of them, 73 (42.69 per cent) are with awareness index above the average and 98 (57.31 per cent) are with awareness index below the average. Awareness index ranges from to Two hundred and sixty-seven (60.96 per cent) policyholders belong to nuclear family. The average awareness index is Of them, 132 (49.44 per cent) are with awareness index above the average and 135 (50.56 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among the nuclear family. Hence, it can be said that policyholders who belong to nuclear family are with high level of awareness. However, as the calculated F value is lesser than the table value at ten per cent level, there does not exist any significant difference in mean awareness index among policyholders classified on the basis of the type of family. Hence, the null hypothesis is accepted. To examine if type of family is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Type of family does not influence the level of awareness on private life insurance Table 4.17 Type of Family and Level of Awareness 69

35 Joint Nuclear Type Family Level of Awareness Low Medium High (13.50%) (71.30%) (15.20%) (14.20%) (72.70%) (13.10%) Total Total d.f.: 2 Calculated χ 2 Value: Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, 171 (39.73 per cent) belong to the joint family. Of them, 23 (13.50 per cent) have low level of awareness; 122 (71.30 per cent) have medium level of awareness and 26 (15.20 per cent) have high level of awareness. Two hundred and sixty-seven (28.31 per cent) policyholders belong to the nuclear family. Of them, 38 (14.20 per cent) have low level of awareness; 194 (72.70 per cent) have medium level of awareness and 35 (13.10 per cent) have high level of awareness. The percentage of policyholders who have high level of awareness is high among policyholders belonging to the joint family while low level of awareness is high among policyholders belonging to the nuclear family. Hence, it is found that policyholders belonging to the joint family are with high level of awareness. However, as the calculated Chi-square value is lower than the table value at ten per cent level, there does not exist any significant association between the type of family and level of awareness on private life insurance. Therefore, the null hypothesis is accepted Status in the Family To ascertain whether there exist any difference in the mean values of awareness index among two groups of policyholders classified based on their status in the family, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among two groups of policyholders classified on the basis of status in the family. Table 4.18 Status in the Family and Awareness Index 70

36 Status in the Family Policyholders Average Awareness Index Range Head 168 (38.36%) Member 270 (61.64%) Total d.f.: ν 1 1, ν Table Value: Ten per cent level: Calculated F Value: 3.409* Five per cent level: One per cent level: Out of 438 policyholders, 168 (38.36 per cent) policyholders are the heads of the families. The average awareness index is Of them, 88 (52.38 per cent) are with awareness index above the average and 80 (47.62 per cent) are with awareness index below the average. Awareness index ranges from to Two hundred and seventy (61.64 per cent) policyholders are members of the families. The average awareness index is Of them, 131 (48.52 per cent) are with awareness index above the average and 139 (51.48 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among policyholders who are members of the families. Hence, it can be said that policyholders who are members of the families are with high level of awareness. As the calculated F value is greater than the table value at ten per cent level, there exists a significant difference in mean awareness index among policyholders classified on the basis of the status in the family. Hence, the null hypothesis is rejected. To examine if status in the family is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Status in the family does not influence the level of awareness on private life insurance Head Family Status Table 4.19 Status in the Family and Level of Awareness Level of Awareness Low Medium High (16.10%) (73.80%) (10.10%) Total

37 Member 34 (12.60%) 192 (71.10%) 44 (16.30%) 270 Total d.f.: 2 Calculated χ 2 Value: Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, 168 (39.73 per cent) are the heads of the families. Of them, 27 (16.10 per cent) have low level of awareness; 124 (73.80 per cent) have medium level of awareness and 17 (10.10 per cent) have high level of awareness. Two hundred and seventy (28.31 per cent) policyholders are members of the families. Of them, 34 (12.60 per cent) have low level of awareness; 192 (71.10 per cent) have medium level of awareness and 44 (16.30 per cent) have high level of awareness. The percentage of policyholders who have high level of awareness is high among policyholders who are members of the families while low level of awareness is high among policyholders who are the heads of the families. Hence, it is found that policyholders who are the members of the families are with high level of awareness. However, as the calculated Chi-square value is lower than the table value at ten per cent level, there does not exist any significant association between status in the families and level of awareness on private life insurance. Therefore, the null hypothesis is accepted Number of Earning Members in the Family On the basis of number of earning members in the family, the policyholders are classified as low, medium and high using quartiles. Accordingly, policyholders with one, two and three and above are termed as low, medium and high number of earning members in the family respectively. To ascertain whether there exist any difference in the mean values of awareness index among three groups of policyholders classified based on number of earning members in the family, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of number of earning members in the family. Table 4.20 Number of Earning Members in the Family and Awareness Index 72

38 Number of Earning Members Policyholders Average Awareness Index Range Low 136 (31.05%) Medium 240 (54.79%) High 62 (14.16%) Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: Five per cent level: One per cent level: Out of 438 policyholders, 136 (31.05 per cent) policyholders have less number of earning members in the family. The average awareness index is Of them, 79 (58.09 per cent) are with awareness index above the average and 57 (41.91 per cent) are with awareness index below the average. Awareness index ranges from to Two hundred and forty (54.79 per cent) policyholders have moderate number of earning members in the family. The average awareness index is Of them, 107 (44.58 per cent) are with awareness index above the average and 133 (55.42 per cent) are with awareness index below the average. Awareness index ranges from to Sixty-two (14.16 per cent) policyholders have high number of earning members in the family. The average awareness index is Of them, 32 (51.61 per cent) are with awareness index above the average and 30 (48.39 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among policyholders with high number of earning members in the family. Hence, it can be said that policyholders with high number of earning members in the family are with high level of awareness. However, as the calculated F value is lesser than the table value at ten per cent level, there does not exist any significant difference in mean awareness index among policyholders classified on the basis of number of earning members in the family. Hence, the null hypothesis is accepted. To examine if the number of earning members in the family is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Number of earning members in the family does not influence the level of awareness on private life insurance 73

39 Low Table 4.21 Number of Earning Members in the Family and Level of Awareness Number of Earning Members Medium High Level of Awareness Low Medium High 26 (19.10%) 26 (10.80%) 9 (14.50%) 100 (73.50%) 176 (73.30%) 40 (64.50%) 10 (7.40%) 38 (15.80%) 13 (21.00%) Total Total d.f.: 4 Calculated χ 2 Value: ** Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, 136 (31.05 per cent) policyholders have less number of earning members in the family. Of them, 26 (19.10 per cent) have low level of awareness; 100 (73.50 per cent) have medium level of awareness and 10 (7.40 per cent) have high level of awareness. Two hundred and forty (54.79 per cent) policyholders have moderate number of earning members in the family. Of them, 26 (10.80 per cent) have low level of awareness; 176 (73.30 per cent) have medium level of awareness and 38 (15.80 per cent) have high level of awareness. There are 62 (14.16 per cent) policyholders who have high number of earning members in the family. Of them, nine (14.50 per cent) have low level of awareness, 40 (64.50 per cent) have medium level of awareness and 13 (21.00 per cent) have high level of awareness on the private life insurance. The percentage of policyholders who have high level of awareness is high among policyholders with high number of earning members in the family while low level of awareness is high among policyholders with less number of earning members in the family. Hence, it is found that policyholders with high number of earning members in their family are with high level of awareness. However, as the calculated Chi-square value is higher than the table value at five per cent level, there exist a highly significant association between 74

40 number of earning members in the family and level of awareness on private life insurance. Therefore, the null hypothesis is rejected Number of Non-Earning Members in the Family Number of earning members in the family has been used as a base to differentiate the policyholders as low, medium and high using quartiles. Accordingly, policyholders with one, two and three and above are termed as low, medium and high number of non - earning members in the family respectively. To ascertain whether there exists any difference in the mean values of awareness index among three groups of policyholders classified based on number of non-earning members in the family, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of number of non- earning members in the family. Table 4.22 Number of Non-Earning Members in the Family and Awareness Index Number of Non-Earning Members Policyholders Average Awareness Index Range Low 108 (24.66%) Medium 189 (43.15%) High 141(32.19%) Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: Five per cent level: One per cent level: Out of 438 policyholders, 108 (24.66 per cent) policyholders have less number of non-earning members in the family. The average awareness index is Of them, 53 (49.07 per cent) are with awareness index above the average and 55 (50.93 per cent) are with awareness index below the average. Awareness index ranges from to One hundred and eighty-nine (43.15 per cent) policyholders have moderate number of non-earning members in the family. The average awareness index is Of them, 91 (48.15 per cent) are with awareness index above the average and 98 (51.85 per cent) are with awareness index below the average. Awareness index ranges from to

41 One hundred and forty-one (32.19 per cent) policyholders have high number of non-earning members in the family. The average awareness index is Of them, 63 (44.68 per cent) are with awareness index above the average and 78 (55.32 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among policyholders with less number of non-earning members in the family. Hence, it can be said that policyholders with less number of nonearning members in the family are with high level of awareness. However, as the calculated F value is lesser than the table value at ten per cent level, there does not exist any significant difference in mean awareness index among policyholders classified on the basis of number of non- earning members in the family. Hence, the null hypothesis is accepted. To examine if the number of non-earning members in the family is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Number of non-earning members in the family does not influence the level of awareness on private life insurance Table 4.23 Number of Non-Earning Members in the Family and Level of Awareness Non Earning Members Level of Awareness Low Medium High Total Low (15.70%) (66.70%) (17.60%) Medium (14.30%) (69.80%) (15.90%) High (12.10%) (79.40%) (8.50%) Total d.f.: 4 Calculated χ 2 Value: Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, 108 (24.66 per cent) policyholders have less number of non-earning members in the family. Of them, 17 (15.70 per cent) have low level of awareness; 72 (66.70 per cent) have medium level of awareness and 19 (17.60 per cent) have high level of awareness on the private life insurance. 76

42 One hundred and eighty-nine (43.15 per cent) policyholders are with moderate number of non-earning members in the family. Out of them, 27 (14.30 per cent) have low level of awareness; 132 (69.80 per cent) have medium level of awareness and 30 (15.90 per cent) have high level of awareness. One hundred and forty-one (32.19 per cent) policyholders are with high number of non-earning members in the family. Of them, 17 (12.10 per cent) have low level of awareness, 112 (79.40 per cent) have medium level of awareness and 12 (8.50 per cent) have high level of awareness on the private life insurance. The percentage of policyholders who have high level of awareness and also low level of awareness is high among the policyholders with less number of nonearning members in the family. Hence, it is found that policyholders who have low number of non-earning members in their family are with high level of awareness. As the calculated Chi-square value is less than the table value at five per cent level, there does not exist any significant association between number of non-earning members in the family and level of awareness on private life insurance. Therefore, the null hypothesis is accepted Total Number of Members in the Family Quartiles have been used to differentiate the policyholders, based on the total number of members in the family as low, medium and high. Accordingly, policyholders with three, four and five and above are termed as low, medium and high number of members in the family respectively. To ascertain whether there exist any difference in the mean values of awareness index among three groups of policyholders classified based on total number of members in the family, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of total number of members in the family. Table 4.24 Total Number of Members in the Family and Awareness Index 77

43 Number of Members in the Family Policyholders Average Awareness Index Range Low 175 (39.95%) Medium 130 (29.68%) High 133(30.37%) Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: Five per cent level: One per cent level: Out of 438 policyholders, 175 (39.95 per cent) policyholders have less number of members in the family. The average awareness index is Of them, 92 (52.57 per cent) are with awareness index above the average and 83 (47.43 per cent) are with awareness index below the average. Awareness index ranges from to One hundred and thirty (29.68 per cent) policyholders have moderate number of members in the family. The average awareness index is Of them, 60 (46.15 per cent) are with awareness index above the average and 70 (53.85 per cent) are with awareness index below the average. Awareness index ranges from to One hundred and thirty-three (30.37 per cent) policyholders have high number of members in the family. The average awareness index is Of them, 58 (43.61 per cent) are with awareness index above the average and 75 (56.39 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among policyholders with high number of members in the family. Hence, it can be said that policyholders with high number of family members in the family are with high level of awareness. However, as the calculated F value is lesser than the table value at ten per cent level, there does not exist any significant difference in mean awareness index among policyholders classified on the basis of total number of members in the family. Hence, the null hypothesis is accepted. To examine if total number of members in the family is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Total number of members in the family does not influence the level of awareness on private life insurance 78

44 Table 4.25 Total Number of Members in the Family and Level of Awareness Total Family Members Low Medium High Level of Awareness Low Medium High 28 (16.00%) 17 (13.10%) 16 (12.00%) 124 (70.90%) 93 (71.50%) 99 (74.40%) 23 (13.10%) 20 (15.40%) 18 (13.50%) Total Total d.f.: 4 Calculated χ 2 Value: Table Value: Ten per cent level: Five per cent level: One per cent level: Out of 438 policyholders, one hundred and seventy-five (39.95 per cent) policyholders have less number of family member s in the family. Of them, 28 (16.00 per cent) have low level of awareness; 124 (70.90 per cent) have medium level of awareness and 23 (13.10 per cent) have high level of awareness on the private life insurance. One hundred and thirty (29.68 per cent) policyholders have moderate number of family members in the family. Out of them, 17 (13.10 per cent) have low level of awareness; 93 (71.50 per cent) have medium level of awareness and 20 (15.40 per cent) have high level of awareness. One hundred and thirty- three (30.37 per cent) policyholders are with more number of family members the family. Of them, 16 (12.00 per cent) have low level of awareness, 99 (74.40 per cent) have medium level of awareness and 18 (13.50 per cent) have high level of awareness on the private life insurance. The percentage of policyholders who have high level of awareness is high among the policyholders with moderate number of family members in the family and low level of awareness is high among the policyholders with less number of family members in the family. Hence, it is found that policyholders who have medium number of family members in the family are with high level of awareness. As the calculated Chi-square value is lesser than the table value at ten per cent level, there does not exist any 79

45 significant association between total number of members in the family and level of awareness on private life insurance. Therefore, the null hypothesis is accepted Monthly Income Based on the monthly income, the policyholders have been divided as low, medium and high using quartiles. Accordingly, policyholders with up to `.5,584, between `.5,585 to `.30,046, and above `.30,046 are termed as low, medium and high monthly income groups respectively. To ascertain whether there exist any difference in the mean values of awareness index among three groups of policyholders classified based on monthly income, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of the monthly income. Table 4.26 Monthly Income and Awareness Index Monthly Income Policyholders Average Awareness Index Range Low 60 (13.70%) Medium 328 (74.89%) High 50 (11.41%) Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: 4.120** Five per cent level: One per cent level: Out of 438 policyholders, 60 (13.70 per cent) policyholders are with low income per month. The average awareness index is Of them, 29 (48.33 per cent) are with awareness index above the average and 31 (51.67 per cent) are with awareness index below the average. Awareness index ranges from to

46 Three hundred and twenty-eight (74.89 per cent) policyholders are with moderate income per month. The average awareness index is Of them, 161 (49.09 per cent) are with awareness index above the average and 167 (50.91 per cent) are with awareness index below the average. Awareness index ranges from to Fifty (11.41 per cent) policyholders are with high income per month. The average awareness index is Of them, 25 (50.00 per cent) are with awareness index above the average and 25 (50.00 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among policyholders who are high income earners per month. Hence, it can be said that policyholders with high income per month are with high level of awareness. However, as the calculated F value is greater than the table value at five per cent level, there exists a significant difference in mean awareness index among policyholders classified on the basis of monthly income. Hence, the null hypothesis is rejected. To find out the category of policyholders who differs significantly from other policyholders with respect to awareness on private life insurance, the following table has been framed using post hoc test. Table 4.27 Monthly Income and Awareness Post Hoc Test (I) Monthly Income (J) Monthly Income Mean Difference Significance High Low Medium ** ** Significant at five per cent level From the above post hoc test, it is observed that policyholders with high monthly income differ significantly from policyholders with moderate income per month at five per cent level which signifies that policyholders with high income per month have higher level of awareness on private life insurers than policyholders with moderate income per month. 81

47 To examine if monthly income of the policyholder is associated with the level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Monthly income does not influence the level of awareness on private life insurance Low Medium High Monthly Income Table 4.28 Monthly Income and Level of Awareness Level of Awareness Low Medium High 4 (6.70%) 55 (16.80%) 2 (4.00%) 44 (73.30%) 232 (70.70%) 40 (80.00%) 12 (20.00%) 41 (12.50%) 8 (16.00%) Total Total d.f.: 4 Calculated χ 2 Value: ** Table Value: Ten per cent level: Five per cent level: One per cent level: Among the 438 policyholders, 60 (13.70 per cent) policyholders are with low income per month. Of them, four (6.70 per cent) have low level of awareness; 44 (73.30 per cent) have medium level of awareness and 12 (20.00 per cent) have high level of awareness. There are 328 (74.89 per cent) policyholders who earn a moderate level of income per month. Out of them, 55 (16.80 per cent) have low level of awareness; 232 (70.70 per cent) have medium level of awareness and 41 (12.50 per cent) have high level of awareness. Fifty (11.41 per cent) policyholder are high income earners. Of them, two (4.00 per cent) have low level of awareness, 40 (80.00 per cent) have medium level of awareness and eight (16.00 per cent) have high level of awareness on the private life insurance. The percentage of policyholders who have high level of awareness is high among the policyholders with low monthly income and low level of awareness is high among the policyholders with medium income per month. Hence, it is found that 82

48 policyholders who earn low income per month are with high level of awareness. As the calculated Chi-square value is higher than the table value at five per cent level, there exist a highly significant association between monthly income of the policyholder and level of awareness on private life insurance. Therefore, the null hypothesis is rejected Family Income Per Month Quartiles have been used to classify the policyholders, based on their family income per month as low, medium and high. Accordingly, policyholders with up to `.16,538, between `.16,539 to `.56,310 and above `.56,310 are termed as low, medium and high family income groups respectively To ascertain whether there exist any difference in the mean values of awareness index among three groups of policyholders classified based on family income per month, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of the family income per month. Family Income Per Month Table 4.29 Family Income Per Month and Awareness Index Policyholders Average Awareness Index Range Low 48 (10.96%) Medium 319 (72.83%) High 71 (16.21%) Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: 3.828** Five per cent level: One per cent level: Out of 438 policyholders, 48 (10.96 per cent) policyholders are with low family income per month. The average awareness index is Of them, 26 (54.17 per cent) 83

49 are with awareness index above the average and 22 (45.83 per cent) are with awareness index below the average. Awareness index ranges from to Three hundred and nineteen (72.83 per cent) policyholders are with moderate family income per month. The average awareness index is Of them, 144 (45.14 per cent) are with awareness index above the average and 175 (54.86 per cent) are with awareness index below the average. Awareness index ranges from to Seventy-one (16.21 per cent) policyholders are with high family income per month. The average awareness index is Of them, 32 (45.07 per cent) are with awareness index above the average and 39 (54.93 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among high family income earners. Hence, it can be said that policyholders with high family income per month are with high level of awareness. However, as the calculated F value is greater than the table value at five per cent level, there exists a significant difference in mean awareness index among policyholders classified on the basis of family income per month. Hence, the null hypothesis is rejected. To find out the category of policyholders who differ significantly from other policyholders with respect to awareness on private life insurance, the following table has been framed using post hoc test. Table 4.30 Family Income Per Month and Awareness Post Hoc Test (I) Family Income Per Month (J) Family Income Per Month Mean Difference Significance High Low ** Medium ** Significant at five per cent level From the above post hoc test, it is observed that policyholders with high family income per month differ significantly from policyholders with low family income per month at five per cent level which signifies that policyholders with high family income per month have higher level of awareness on private life insurers than policyholders with low family income. 84

50 To examine if family income per month is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Family income per month does not influence the level of awareness on private life insurance Table 4.31 Family Income Per Month and Level of Awareness Family Income Level of Awareness Low Medium High Total Low 15 (31.30%) 30 (62.50%) 3 (6.30%) 48 Medium 43 (13.50%) 228 (71.50%) 48 (15.00%) 319 High 3 (4.20%) 58 (81.70%) 10 (14.10%) 71 Total d.f.: 4 Calculated χ 2 Value: *** Table Value: Ten per cent level: Five per cent level: One per cent level: Among 438 policyholders, family income per month of 48 (10.96 per cent) policyholders is low. Of them, 15 (31.30 per cent) have low level of awareness; 30 (62.50 per cent) have medium level of awareness and three (6.30 per cent) have high level of awareness. Three hundred and nineteen (72.83 per cent) policyholders family income per month is moderate. Out of them, 43 (13.50 per cent) have low level of awareness; 228 (71.50 per cent) have medium level of awareness and 48 (15.00 per cent) have high level of awareness. Seventy-one (16.21 per cent) policyholders are high family income earners per month. Of them, three (4.20 per cent) have low level of awareness, 58 (81.70 per cent) have medium level of awareness and 10 (14.10 per cent) have high level of awareness on the private life insurance. The percentage of policyholders who have high level of awareness is high among the policyholders whose family income per month is moderate and low level of 85

51 awareness is high among the policyholders with low family income per month. Hence, it is found that policyholder with medium family income per month have high level of awareness. However, as the calculated Chi-square value is higher than the table value at one per cent level, there exist a highly significant association between family income per month and level of awareness on private life insurance. Therefore, the null hypothesis is rejected Family Expenditure Per Month Policyholders have been classified as low, medium and high using quartiles based on the family expenditure per month. Accordingly, policyholders with up to `.7,508, between `.7,509 to `.20,713 and above `.20,713 are termed as low, medium and high family expenditure groups respectively. To ascertain whether there exist any difference in the mean values of awareness index among three groups of policyholders classified based on family expenditure per month, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of the family expenditure per month. Table 4.32 Family Expenditure Per Month and Awareness Index Family Expenditure Per Month Policyholders Average Awareness Index Range Low 38 (8.68%) Medium 366 (83.56%) High 34 (7.76%) Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: 2.470* Five per cent level: One per cent level:

52 Out of 438 policyholders, 38 (8.68 per cent) policyholders are with low family expenditure per month. The average awareness index is Of them, 21 (55.26 per cent) are with awareness index above the average and 17 (44.74 per cent) are with awareness index below the average. Awareness index ranges from to Three hundred and sixty-six (83.56 per cent) policyholders are with moderate family expenditure per month. The average awareness index is Of them, 172 (46.99 per cent) are with awareness index above the average and 194 (53.01 per cent) are with awareness index below the average. Awareness index ranges from to Thirty-four (7.76 per cent) policyholders are with high family expenditure per month. The average awareness index is Of them, 11 (32.35 per cent) are with awareness index above the average and 23 (67.65 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among policyholders with moderate family expenditure per month. Hence, it can be said that policyholders with moderate family expenditure per month are with high level of awareness. However, as the calculated F value is greater than the table value at ten per cent level, there exist a significant difference in mean awareness index among policyholders classified on the basis of family expenditure per month. Hence, the null hypothesis is rejected. To find out the category of policyholders who differs significantly from other policyholders with respect to awareness on private life insurance, the following table has been framed using post hoc test. Table 4.33 Family Expenditure Per Month and Awareness Post Hoc Test (I) Family Expenditure Per Month (J) Family Expenditure Per Month Mean Difference Significance Medium Low High From the above post hoc test, it is observed that policyholders with moderate family expenditure per month differ significantly from all other categories of policyholders. 87

53 To examine if family expenditure per month is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Family expenditure per month does not influence the level of awareness on private life insurance Table 4.34 Family Expenditure Per Month and Level of Awareness Family Expenditure Level of Awareness Low Medium High Total Low 9 (23.70%) 26 (68.40%) 3 (7.90%) 38 Medium 48 (13.10%) 264 (72.10%) 54 (14.80%) 366 High 4 (11.80%) 26 (76.50%) 4 (11.80%) 34 Total d.f.: 4 Calculated χ 2 Value: Table Value: Ten per cent level: Five per cent level: One per cent level: From 438 policyholders, family expenditure per month of 38 (8.66 per cent) policyholders are less. Of them, nine (23.70 per cent) have low level of awareness; 26 (68.40 per cent) have medium level of awareness and three (7.90 per cent) have high level of awareness. Three hundred and sixty-six (83.56 per cent) policyholders are with moderate family expenditure per month. Out of them, 48 (13.10 per cent) have low level of awareness; 264 (72.10 per cent) have medium level of awareness and 54 (14.80 per cent) have high level of awareness. Thirty-four (7.76 per cent) policyholders family expenditure per month is high. Of them, four (11.80 per cent) have low level of awareness, 26 (76.50 per cent) have medium level of awareness and four (11.80 per cent) have high level of awareness on the private life insurance. The percentage of policyholders who have high level of awareness is high among the policyholders whose family expenditure per month is medium and low level of 88

54 awareness is high among the policyholders whose family expenditure per month is less. Hence, it is found that policyholder with moderate family expenditure per month have high level of awareness. As the calculated Chi-square value is lower than the table value at ten per cent level, there does not exist any significant association between family expenditure per month and level of awareness on private life insurance. Therefore, the null hypothesis is accepted Total Savings Per Month Based on the total savings per month, the policyholders are differentiated as low, medium and high using quartiles. Accordingly, policyholders with up to `.6,167, between `.6,168 to `.38,459 and above `.38,459 are termed as low, medium and high total savings groups respectively To ascertain whether there exist any difference in the mean values of awareness index among three groups of policyholders classified based on total savings per month, the following hypothesis is framed and tested. H 0 : Mean awareness index does not differ among three groups of policyholders classified on the basis of the total savings per month. Table 4.35 Total Savings Per Month and Awareness Index Total Savings Per Month Policyholders Average Awareness Index Range Low 42 (9.59%) Medium 331 (75.57%) High 65 (14.84%) Total d.f.: ν 1 2, ν Table Value: Ten per cent level: Calculated F Value: 4.045** Five per cent level: One per cent level:

55 Out of 438 policyholders, 42 (9.59 per cent) policyholders are with less savings per month. The average awareness index is Of them, 21 (50.00 per cent) are with awareness index above the average and 21 (50.00 per cent) are with awareness index below the average. Awareness index ranges from to Three hundred and thirty-one (75.57 per cent) policyholders are with moderate savings per month. The average awareness index is Of them, 155 (46.83 per cent) are with awareness index above the average and 176 (53.17 per cent) are with awareness index below the average. Awareness index ranges from to Sixty-five (14.84 per cent) policyholders are with high total savings per month. The average awareness index is Of them, 30 (46.15 per cent) are with awareness index above the average and 35 (53.85 per cent) are with awareness index below the average. Awareness index ranges from to Mean awareness index is high among policyholders with high total savings per month. Hence, it can be said that policyholders with high total savings per month have high level of awareness. As the calculated F value is greater than the table value at five per cent level, there exists a significant difference in mean awareness index among policyholders classified on the basis of total savings per month. Hence, the null hypothesis is rejected. To find out the category of policyholders who differ significantly from other policyholders with respect to awareness on private life insurance, the following table has been framed using post hoc test. Table 4.36 Total Savings Per Month and Awareness Post Hoc Test (I) Total Savings Per Month (J) Total Savings Per Month Mean Difference Significance High Low ** Medium *** Significant at five per cent level From the above post hoc test, it is observed that policyholders with high total savings per month differ significantly from policyholders with low total savings per month 90

56 at five per cent level which signifies that policyholders with high total savings per month have higher level of awareness on private life insurers than policyholders with low savings. To examine if total savings per month is associated with level of awareness on private life insurance, the following hypothesis has been framed and tested. H 0 : Total savings per month does not influence the level of awareness on private life insurance Table 4.37 Total Savings Per Month and -Level of Awareness Total Savings Level of Awareness Low Medium High Total Low 11 (26.20%) 29 (69.00%) 2 (4.80%) 42 Medium 49 (14.80%) 234 (70.70%) 48 (14.50%) 331 High 1 (1.50%) 53 (81.50%) 11 (16.90%) 65 Total d.f.: 4 Calculated χ 2 Value: *** Table Value: Ten per cent level: Five per cent level: One per cent level: Among 438 policyholders, 42 (9.59 per cent) policyholders total savings per month is less. Of them, 11 (26.20 per cent) have low level of awareness; 29 (69.00 per cent) have medium level of awareness and two (4.80 per cent) have high level of awareness. Three hundred and thirty-one (75.57 per cent) policyholders total savings per month is moderate. Out of them, 49 (14.80 per cent) have low level of awareness; 234 (70.7 per cent) have medium level of awareness and 48 (14.50 per cent) have high level of awareness. Sixty-five (14.84 per cent) policyholders total savings per month is high. Of them, one (1.50 per cent) have low level of awareness, 53 (81.50 per cent) have medium level of awareness and 11 (16.90 per cent) have high level of awareness on the private life insurance. The percentage of policyholders who have high level of awareness is high among the policyholders with high total savings per month and low level of awareness is high among the policyholders who have low total savings per month. Hence, it is found that 91

57 policyholders with high total savings per month have high level of awareness. As the calculated Chi-square value is greater than the table value at one per cent level, there exist a highly significant association between total savings per month and level of awareness on private life insurance. Therefore, the null hypothesis is rejected. 4.5 PERIOD AND SOURCES OF AWARENESS ON PRIVATE LIFE INSURANCE COMPANY The period of policyholders awareness on private life insurance company and their policy and sources of awareness are discussed in the following tables Period of Awareness on Private Life Insurance Company The period of awareness on insurance company in which the policyholders have taken a life policy is classified into three categories and is shown in the table below. Table 4.38 Period of Awareness on Private Life Insurance Company Period of Awareness Number of Policyholders Percentage Up to 4 years to 7 years Above 7 years Total Out of the total 438 policyholders, 120 (27.40 per cent) of the policyholders have awareness up to four years; 223 (50.91 per cent) of policyholders have five to seven years of awareness and the rest 95 (21.69 per cent) of policyholders have above seven years of awareness on private life insurers. It is concluded that majority of the policyholders have five to seven years of awareness on private life insurers Period of Awareness on Private Life Insurance Policy The policyholders are classified on the basis of period of awareness on Insurance policy they have taken and the period of awareness have been categorized as up to three years, four to six years and above six years. Table 4.39 Period of Awareness on Private Life Insurance Policy 92

58 Period of Awareness on Insurance Policy Number of Policyholders Percentage Up to 3 years to 6 years Above 6 years Total From the above Table 4.2, 155 (35.39 per cent) of the policyholders have three years of awareness on the policy; 198 (45.21 per cent) of the policyholders have four to six years of awareness and the rest 85 (19.4 per cent) of the policyholders have above six years of awareness on the private life insurance policy. It is find out that majority of the policyholders have four to six years of awareness on the private life insurance policy Sources of Awareness The policyholders are classified on the basis of the source from which they are aware about their insurance company and the classification is shown in the following table. Table 4.40 Sources of Awareness Sources of Awareness Number of Policyholders Percentage Family Members Relatives Friends Neighbours Colleagues Advisors Corporate Agents Advertisement Total From the above Table 4.3, 61 (13.90 per cent) of policyholders are aware about the policy through family members; 53 (12.1 per cent) policyholders are aware through relatives; 108 (24.70 per cent) policyholders are aware through friends; 29 (6.60 per cent) are aware through Neighbors; 27 (6.20 per cent) policyholders are aware through colleagues; 90 (

59 per cent) policyholders are aware through advisors; 41 (9.4 per cent) policyholders are aware through corporate agents and 29 (6.60 per cent) policyholders are aware through advertisement on the private life insurer. It is observed that majority of the policyholders are aware of the insurance company through their friends. 4.6 CONCLUSION From the above analysis, it is perceived that variables like area of residence, gender, age, marital status, educational qualification, occupation, type of family, status in the family, number of earning members in the family, number of non-earning members in the family, total number of members in the family, monthly income, family income per month, family expenditure per month and total savings per month are found to be associated with policyholders level of awareness on private life insurance. The motives for taking up the private life insurance company and the policy are examined in the next chapter. * * * * * 94

60 REFERENCES 1. Clifford Paul. S. Joseph Anbarasu. D., and Annette Barnabas (2010), Study on Socio Economic Status and Awareness of Indian Investors in Insurance, E- Journal of Business and Economic Issues, Vol.5 (3), pp Dhiraj Jain and Nikita Goyal (2012), An empirical Study of the Level of Awareness Towards various Rights and Duties among the Insured Households in Rajasthan, India, Researchers World Journal of Arts, Science & Commerce, Vol. III 3(2), pp

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