ISSN: 2455-2631 © April 2021 IJSDR | Volume 6, Issue 4

CUSTOMER PREFERENCE TOWARDS TRADITIONAL

AND ULIP PRODUCTS WITH RESPECT TO SHRI RAM
LIFE INSURANCE
1
NAYINI ANAND KUMAR, 2Dr.V.VISHNU VANDANA

Department of Business Management

Anurag Group of Institutions

Abstract: The main aim of the study is to identify the factors influencing consumer preference towards the traditional
products and ulip products with respect to Shri Ram Life Insurance. For that study has made on the basis of consumer
behaviour with a focus on mainly factors affecting the customer preference for choosing the traditional products and ulip
products. The variables are selected on the company offered factors like risk, return, consumer income, tax exemption and
security will influence to prefer the traditional products and ulip products. To study this research report 100 respondents
queried through phone calls and questionnaire links in the limits of Hyderabad city. The responses were analyzed by using
the statistical tool one way Anova test. Findings are discovered on the basis of product features, premium, risk, returns and
security of the organization are the factor that influences to prefer the traditional product and ulip product.
INTRODUCTION:
"Protection that pays out an amount of money either on the passing of the individual or after a gathering time frame"
In straightforward words, "extra security might be an agreement between a backup plan and a policyholder during which the safety
net provider ensures installment of an advantage to named recipients upon the passing of the safeguarded. The non safe monetary
establishment guarantees an advantage regarding the installment of premium by the safeguard.
The primary protection guarantor was situated in South Carolina and opened in 1732 to supply fire inclusion. Researcher began a
company inside the 1750s, which gathered commitments for keeping grievous flames from annihilating structures.

OBJECTIVES OF THE STUDY:

 To understand the factors that influence the choice of life insurance.
 To compare the preference between traditional and ulip products.
 To study the influence of demographic factors on choosing of insurance products.

NEED AND IMPORTANCE OF THE STUDY:

As the Shriram insurance company increasing the products. The understanding of customer preference will help in developing of
higher products and methods.
SCOPE OF THE STUDY:
The scope of study covers preference, factors that influence towards traditional and ulip products.
RESEARCH METHODOLOGY:
As my objective is to grasp the preference of the patron towards traditional and ulip products so it requires primary and secondary
data.
Primary Data
Prepared a questionnaire to gather the specified data.
Secondary Data
The secondary data has got to collect from the magazines, websites, and journals.
LIMITATIONS OF THE STUDY
 Sample size 100.
 The area is proscribed to Hyderabad
 Time constraint is 30 days

REVIEW LITERATURE

Akula, R. and Kanchu, T.,(2011), conducted a study on growth of ULIP Policies in insurance sector of India by
comparing traditional (Life Fund + Pension & General Annuity + Group Fund) and ULIP Policies. the target of the study was to

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appear at the evolution of ULIPs in India, the expansion of ULIPs over traditional Policies, risk factors involved in ULIPs over
traditional policies and to suggest various measures to develop and stabilize the expansion of ULIPs. the quantity from 2007 to
2009 was covered within the study. The study considered 5 companies to match growth, namely, LICI, HDFC Standard Life, ICICI
Prudential Life, SBI Life and Bajaj Allianz Life. it had been revealed from the study that there was remarkable growth in ULIP
compared to traditional policies because the new private entrants targeted ULIPs for penetration.
Venugopalan, K.,V.(2011), directed an examination on worldwide monetary emergency and protection area in India by
attempted a near investigation of LIC with Private Sector. The effect of the overall Financial Crisis of 2007 to the Indian Life
Insurance Sector is estimated by utilizing the accompanying factors protection entrance, protection thickness, number of protection
strategies gave, number of protection expenses gathered, absolute charge gathered, benefit acquired. the amount covered inside the
investigation was from 2004 - 05 to 2010-11. The investigation proposed protection area to be an arising and undiscovered area in
our country with great development possibilities. a combination of customary and ULIP Policies was likewise proposed inside the
examination.
Sinha, R.P.(2009) compared the public and personal sector insurance companies on the premise of assets. the number
covered within the study was from 2002 -03 to 2006-07. The study revealed that the private sector insurance companies collected
more funds from unit-linked plans that LICI then, were more exposed to exchange. During the years 2005-06 and 2006-07 the return
on investment was found to be higher for the private players compared to LICI due to buoyant exchange conditions. The study also
suggested that the private players won't repeat this in later years because of stock exchange meltdown.
Nair, K.K.(2009), conducted a study on Unit Linked insurance plans (ULIP) supported secondary data available on its
emergence, concepts, parameters, benefit, current position and future outlook. The study suggested that India contains a plethora of
opportunities for insurance companies because three -fourth of the population was uninsured also majority of the investing
population were small and medium investors and majority of the investors lacked the expertise to directly enter the exchange and
earn good returns. The Study emphasized the about facts to be the explanations for increased importance of ULIP. The study
observed that ULIP will still be an honest investment option for the investors because it combines the multi aspects of insurance,
investment and deduction.
INDUSTRY PROFILE
Life coverage is one of the quickest developing areas in India since 2000 as Government permitted Private players and FDI up to
26% and as of late Cabinet affirmed a proposition to expand it to 49%. In 1955, mean danger per strategy of Indian and unfamiliar
life guarantors summed separately to ₹2,950 and ₹7,859 (worth ₹15lakh and ₹41lakh in 2017 costs). Disaster protection in India
was nationalized by consolidating Life Insurance Corporation (LIC) in 1956. All private extra security organizations around then
were taken over by LIC. In 1993, the Government of India designated RN Malhotra Committee to set out a guide for privatization
of the life coverage area.
COMPANY PROFILE
Shriram Group is an Indian aggregate established on 5 April 1974 by Ramamurthy Thyagarajan, AVS Raja and T. Jayaraman. They
have their central command in Chennai, Tamil Nadu, India. The gathering had its start in chit supports business and later on entered
the loaning business through Shriram Transport Finance (Commercial Vehicle Finance) and Shriram City Union Finance Consumer
and MSME Finance). In 2018, the organization forayed into metallurgy by setting up a unit in Odisha. Shriram Life Insurance
Company capitalization is 2000 crores INR.
MISSION & VISION
The Shriram Life Insurance Company was established with the target of contacting the "average person" with items and
administrations that would be useful to him as he shows out the way to "thriving". Operational proficiency, respectability and a
solid spotlight on obliging the requirements of the normal Indian, by offering him top caliber and financially savvy items and
administrations, are the guiding principle that drive the association. These qualities have been firmly clung to throughout the long
term and are presently a fundamental piece of the association's DNA. The organization values its profound comprehension of the
client. Every item or administration is customized to explicitly suit the necessities of the client. It is this controlling way of thinking
of putting individuals first that has brought the gathering organization nearer to the grassroots and has settled on it the favored
decision for all truck financing necessities among the clients.

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DATA ANALYSIS AND INTERPRETATION

TABLE-1: Table of male and female respondents according to their age.

Age Male Female Total Percentage

10 – 20 0 0 0 0
20 – 30 44 16 60 60
30 – 40 20 12 32 32
40 – 50 6 0 6 6
50 – 60 2 0 2 2

FIGURE-1

No of
respondents Age of respondent’s.
50
40 Male
30
Female
20
10
0 Age of
10 - 20 20 - 30 30 - 40 40 - 50 50 - 60 respondents

INTERPRETATION

 Respondents of age 20-30 interval are 60 %

 Age 30-40 interval are 32%

TABLE-2: Table of qualification of respondent’s

Qualification Male Female Total

<10 7 0 7
10+2 13 4 17
Graduate 35 13 48
Post-Graduate 17 11 28

FIGURE 2:

No of
respondents Qualification of respondent’s
40
35
30
25
Male
20
15 Female
10
5
0
Qualification
<10 10+2 Graduate Post-Graduate

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INTERPRETATION
 48% responses are Graduates.
 28% responses are Post-Graduate, 17% responses are 10+2.
 7% responses are <10.

TABLE-3: Table of respondent’s marital status

Male Female
Age Total
Unmarried Married Unmarried Married
10 - 20 0 0 0 0 0
20 - 30 41 3 9 7 60
30 - 40 6 14 0 12 32
40 - 50 0 6 0 0 6
50 - 60 0 2 0 0 2

FIGURE-3:

No of
respondent's Marital status of respondent’s
45
40
35
Male Unmarried
30
Male Married
25
20 Female Unmarried
15
Female Married
10
5
0 Age
10 - 20 20 - 30 30 - 40 40 - 50 50 - 60

INTERPRETATION
 Age 20-30 interval are 60%.
 Age 30-40 interval are 32%.

TABLE-4: Table of factors that influences respondents to take traditional product

Male Female

Yes No Yes No
Low risk 64 8 20 8
Less premium 42 30 14 14
Fixed return 50 22 18 10
Security 44 28 19 9
Others 33 39 18 10

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Figure-4:

Factors that influences respondent’s to take

No. of
respondents
traditional product
70

60

Male Yes
50
Male No
40
Female Yes
30
Female No
20

10
Factors
0
Low risk Less premium Fixed return security Others

INTERPRETATION
 84% responses chosen yes, 16% responses chosen no for low risk.
 56% responses chosen yes, 44% responses chosen no for less premium.
 68% responses chosen yes, 32% responses chosen no for fixed return.
 63% responses chosen yes, 37% responses chosen no for security.
 51% responses chosen yes, 49% responses chosen no for others.

TABLE-5: Table of factors that influences respondent’s to take ulip products

Male Female
Yes No Yes No
High risk 28 44 11 17
Limited premium 30 42 10 18
One time investment 28 44 15 13
Security 17 55 13 15
Others 16 56 11 17

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FIGURE-5:

Factors that influences respondent’s to take

No. of
respondents
ulip products
60

50
Male Yes
40
Male No
30
Female Yes

20
Female No

10

Factors
0
High risk Limited One time security others
premium investment

INTERPRETATION
 39% responses chosen yes, 40% responses chosen no for high risk.
 43% responses chosen yes, 30% responses chosen no for limited premium.
 27% responses chosen yes, 61% responses chosen no for one time investment.
 60% responses chosen yes, 57% responses chosen no for security.
 70% responses chosen yes, 73% responses chosen no for others.

TABLE-6: Table of no of respondents who suggest others towards taking policy

Suggest Yes NO

Male 46 26

Female 15 13

FIGURE-6:

Respondents suggest others

No. of
respondents towards taking policy
50 Male
40
30 Female
20
10
0 Suggest
Yes NO

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INTERPRETATION
 61% responses chosen Yes to suggest others.
 39% responses chosen No to suggest others.

FINDINGS:
 Age 20-30 interval is having more awareness and likes to take the policies.
 Graduates preferred to take the policies when compared to others.
 83% respondent’s preferred to take Traditional product.
 84% respondent’s are having Traditional product.
 Low risk and fixed return are the key factor which influences to take Traditional product.
 Limited premium and one time investment are the key factors which influences to take Ulip product.
 Security is the main reason which percepts towards traditional product.

SUGGESTIONS:
 Organization should focus more on uneducated and low income people and motivate them to take product.
 Most of the customers are not choosing the Ulip product because of high risk and security. So organization should
concentrate on these factors to improve Ulip product sales.
 Females are choosing fewer products when compared to males and also the organization should give awareness to females
about these products.
 Customers preferred to invest 20K-30K per annum so organization should involve more customers at this range.

CONCLUSION:
Organization has major market in India in the field of life insurance, in India when compared with foreign countries. So the
organization can take advantage by providing the information of insurance to the consumer effectively and efficiently. The
consumers are mostly influenced to prefer the traditional product because of the factors like fixed return, low risk, limited premium
and security. So if the organization gives more security on ulip product then there may be chance of increase of sales in ulip product.
BIBLIOGRAPHY
1.Ravi Akula & Tirupathi Kanchu, "Growth of ULIP Policies in Life Insurance Sector - A Comparative Study of Traditional
and ULIP Policies ,"Indian Journal of Commerce and Management Studies, Educational Research Multimedia &
Publications,India, vol. 2(2), pages 190-199:2, March.
2. Venugopalan K.V., "Global Financial Crisis and Life Insurance Sector in India – A Comparative Study of LIC with Private
Sector," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol.
2(6), pages 56-61, September.
3. Sinha, Ram Pratap and Chatterjee, Biswajit, “Are Indian Life Insurance Companies Cost Efficient?” (April 19, 2009) vol
4,issue 7.
4. James J Schiro, "External Forces Impacting the Insurance Industry: Threats from Regulation," The Geneva Papers on Risk
and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 31(1), pages 25-30, January.

Websites:
 www.shriramlife.com
 www.shodhganga.inflibnet.ac.in
 www.researchgate.net
 www.worldwidejournals.co.in
 www.magzter.com
 www.worldwidejournals.com
 www.insurancejournal.com

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