This study examined the satisfaction levels of 599 life insurance policy holders of the Life Insurance Corporation of India in Sirkali Town. The researchers collected data on the policy holders' socio-economic characteristics and their perceptions and satisfaction with LIC's policies. Chi-square tests found that age, marital status, and occupation had a significant relationship with satisfaction levels, while gender, education, family income, residence, and family size did not. Most respondents were satisfied with LIC's loan and premium payment facilities. The researchers concluded that LIC must continue studying customers' evolving needs to improve insurance products and better serve society.

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Dr. R. Khader Mohideen and K.Sekar.” A Study on Policy - Holders Satisfaction of Life Insurance
Corporation of India at Sirkali Town”- (ICAM 2016)
International Journal of Management (IJM)
A STUDY ON POLICY - HOLDERS SATISFACTION OF LIFE INSURANCE
CORPORATION OF INDIA AT SIRKALI TOWN
Dr. R. Khader Mohideen
Head, Jamal Institute of Management, Jamal Mohamed College (Autonomous)
Tiruchirapalli – 620 020
K. Sekar
Ph.D., Research Scholar in Commerce,
Jamal Mohamed College (Autonomous), Tiruchirappalli – 620 020
ABSTRACT
Life insurance has become one of the necessities of human life. It offers financial security
to the policyholder and/or his/her dependents in the event of his premature death or untoward
disablement arising out of accidents. As death of the bread earner creates severe financial
problem for the dependents and as the permanent physical or mental disablement also create
even more severe financial problems for them adequate financial provision in the form of
different life policies is essential. One life policy may not be suitable for all individuals
therefore out of different life insurance policies an individual takes out a suitable combination
of policies depending up on his financial and family needs. Number of dependents in the
family is one of the important factors in buying decision about the number and types of life
policies. The present research has made an attempt to assess the relationship between types of
policy holding and defendants. The research revealed that whole life and endowment policies
are more favoured by the samples with zero dependents, with one defendant, with two
defendants and with four dependents.
Key words: Life Policy, Financial Security, Disability, Financial Provision.
Cite this Article Dr. R. Khader Mohideen and K.Sekar. A Study on Policy - Holders
Satisfaction of Life Insurance Corporation of India at Sirkali Town. International Journal of
Management, 7(2), 2016, pp. 730-734.
http://www.iaeme.com/ijm/index.asp
1. INTRODUCTION
The most important aspect of human life is its uncertainty. In the modern industrialized era, human life
and property are inevitably exposed to different kinds and varying degrees of risks and uncertainties.
Human beings, to protect themselves and their property from total disaster, resort intelligently to
protection coverage extended by the insurance companies which act as a trustee to the amount collected
through premiums and provide certainty in the place of uncertainty. A very prominent step taken by
human beings to mitigate the eventualities of life is investment in insurance companies which act as
protectors of future ambitions and aspirations of the people. Insurance is a co-operative device which
safeguards financially both longevity of human life or premature mishaps when man, out of genuine
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
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2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 730-734 © IAEME Publication
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Dr. R. Khader Mohideen and K.Sekar.” A Study on Policy - Holders Satisfaction of Life Insurance
Corporation of India at Sirkali Town”- (ICAM 2016)
concern for his dependents, insures his life taking into account the various unforeseeable risk factors
that are prevalent everywhere. The maturity amount takes care of not only the dependents of the
insured, but also of self, when he is neglected or forsaken by his family members. Middle income
groups certainly resort to insurance companies for their future financial needs and commitments. The
salaried group depends upon insurance for saving for the future as well as for tax saving purpose.
Life Insurance business in India is being done by the Life Insurance Corporation of India (LIC), a
statutory corporation and a monopoly in life insurance business, among other things, with the
objectives of covering the risk of the life of the insured and to promote savings. Initially the
corporation started its business with two kinds of policies viz whole life policy and endowment policy.
Later the LIC introduced many more kinds of life policies with a view to bringing more investors into
the fold of insuring their life and offering new kinds of benefits to the insured in terms of money back
policy, double benefits, triple benefits, pension plan, unit linked insurance plan and so on. The LIC
became a life insurance products supermarket dispensing varieties of life insurance products to the
investors. The Government of India extended its support to the life insurance business of the LIC by
way of income tax benefits to the savings of the policy holders in life insurance policies, permitting the
policy holders to pay premiums through deductions in salaries and no income tax on the benefits from
life insurance policies. Beyond covering the risk of the insured the LIC also offers bonus to the sum
assured from the first year of the policy.
2. REVIEW OF LITERATURE
2.1. Kunjalsinha (2013)
In his study stated that insurance companies are working in a highly competitive market where
consumers have many companies and products to choose from. Hence it becomes necessary for
insurance companies to maintain loyal customer base by increasing customer loyalty through improved
service quality. The data were collected from the individuals who bought life insurance policy of
various life insurance companies after February 2005 in five selected cities of Gujarat. His study given
by factor analysis is performed were five factors are derived namely, sincere and prompt services,
comparison and courteous, meticulous and customers orientation, flexibility and tangibility. The study
emphasises that the customers should be given prompt service. They should feel safe in their dealings
with the company and the company should give individual attention to the customer.
2.2. Rajeshwari.K and Karthesswari.S (2012)
In their study stated that majority of the respondents (54%) were in the age group 21 to 40 years.70%
of the respondents were male, and most of the male policyholders are taking the policy in their own
interest. a female persons are given importance as nominees, 31% respondents preferred endowment
policy, 41% of the respondents have continuously taken the policies from LIC of India, 82 %
respondents paid the premium regularly, and are very careful on non lapsation. Among the policy
holders whose policies lapsed, they were not able to pay the premium due to the financial difficulty.
3. STATEMENT OF THE PROBLEM
Before the probable and existing investors in life insurance policies there were many insurers such as
LIC and other institutions of Indian origin and aboard. The insurers other than LIC used to form a
consortium of banks and other companies of India and from abroad with a view to globalizing life
insurance business and also with a view to having large scale life insurance business. Under the,
circumstances the insurers offer different kinds of policies with a view to bringing more investors into
the fold. The investors in life insurance policies may be grouped on the basis of gender, income, age,
profession, religion and caste. It will be interesting to examine the preference of investors towards an
insurance company.
4. OBJECTIVES OF THE STUDY
Hence, the object of study was to examine the perceptions of the investors towards the policies of LIC
with a view to understanding the expectations of the investors and the benefits offered by the LIC.
However, the specific objectives of the study were as follows.
 To bring out the social economic characteristics of LIC Policy - holders.

3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 730-734 © IAEME Publication
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Dr. R. Khader Mohideen and K.Sekar.” A Study on Policy - Holders Satisfaction of Life Insurance
Corporation of India at Sirkali Town”- (ICAM 2016)
 To study the perception and satisfaction of the policy holders towards the policies of Life
Insurance Corporation of India.
5. RESEARCH METHODOLOGY
5.1. Source of Data
5.1.1. Primary Data
The researcher has collected the primary data through the questionnaire. The questionnaire was
distributed directly by the researcher himself to the sample respondents of Sirkali Town.
5.1.2. Secondary Data
The data were collected from various secondary sources like journals, books, magazine, newspapers
and websites.
5.1.3. Sample Design
For the purpose of study, policyholders of Life Insurance Corporation of India were selected on the
basis of convenient sampling technique.
5.1.4. Sample Size
The sample size of the study is 599 respondents LIC policy holders residing in Sirkali Town.
5.1.5. Statistical Tools Used for Analysis
The collected data were analysed and presented in the form of tables to suit the study and also to
interpret the results. The following tools were used to analyse the data. The researcher used cross table
personal background of the respondents are related to overall satisfaction Chi-Square Analysis all the
analysis were carried out with help of computer using of SPSS (Statistical Pack for Social Science)
software.
6. LIMITATIONS
The sample of 599 respondents makes it difficult to generalize the results. The data were obtained
through questionnaire and it has its own limitations. Some of the respondents might not have presented
the accurate data.
7. RESULTS AND DISCUSSIONS
Table 1 Personal factors and overall satisfaction (Cross Table)
Personal
Factors
Particulars Dissatisfied Moderate Satisfied Total
Age
< 25 Years 14 40 31 85
26 -35 Years 21 64 105 190
36- 45 Years 15 74 92 181
> 45 Years 8 52 83 143
Total 58 230 311 599
Gender
Male 37 146 218 401
Female 21 84 93 198
Total 58 230 311 599
Marital Status
Married 34 159 241 434
Unmarried 24 71 70 165
Total 58 230 311 599
Occupation
Agriculturalist 4 20 15 39
Govt. Employee 9 21 35 65
Private Employee 10 66 83 159
Business 5 34 64 103

4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 730-734 © IAEME Publication
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Dr. R. Khader Mohideen and K.Sekar.” A Study on Policy - Holders Satisfaction of Life Insurance
Corporation of India at Sirkali Town”- (ICAM 2016)
Personal
Factors
Particulars Dissatisfied Moderate Satisfied Total
Occupation
Professional 2 11 39 52
Others 28 78 75 181
Total 58 230 311 599
Educational
Qualification
Illiterate 1 2 6 9
School Level 23 92 87 202
College Level 26 92 154 272
Professional 8 44 64 116
Total 58 230 311 599
Family Income
< 10,000 11 49 56 116
. 10,001 -
.20,000
20 105 136 261
20,001 - . 30,000 17 48 68 133
. 30,001 -
.40,000
7 21 39 67
< . 40,001 3 7 12 22
Total 58 230 311 599
Residential Area
Urban 24 89 102 215
Semi – Urban 24 89 129 242
Rural 10 52 80 142
Total 58 230 311 599
Family Size
Joint – Family 27 112 157 296
Non – Joint Family 31 118 154 303
Total 58 230 311 599
As many as 190 respondents belonged to 26 – 35 years age group and 401 were male respondents.
Majority of the respondents were married (401) and “others category occupation” accounted for (181).
Most of the respondents (272) had college level education and 261 of them earned monthly income
between 10,001 and . 20,000. As many as 242 of respondents resided in semi - urban places and 303
of the respondents had non - joint family.
Majority of the respondents (311) expressed satisfaction regarding loan facilities and premium
payment facilities and 230 of them expressed moderate opinion in this respect.
Table 3 Chi – Square χ2
Factor
Calculated
Value
Degree of
freedom
P value
Significant
level
Significant
status
Age 15.841 12 .015 1% Sig*
Gender 2.908 4 .234 5% N.S**
Marital Status 10.789 4 .005 5% Sig*
Qualification 11.615 12 .083 1% N.S**
Occupation 34.844 16 .000 1% Sig.*
Family Income 5.649 12 .686 5% N.S**
Residential Area 3.762 4 .439 1% N.S**
Family size 0.380 4 .827 5% N.S**
* Significant ** Not Significant

5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 730-734 © IAEME Publication
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Dr. R. Khader Mohideen and K.Sekar.” A Study on Policy - Holders Satisfaction of Life Insurance
Corporation of India at Sirkali Town”- (ICAM 2016)
The Chi square table reveals that Age and occupation were 5% significant level and 1% significant
factors are Marital Status. Remaining three factors are not significant they are Gender, Family Income
and Family size were 5% level and Qualification Residential Area were 1% level.
The calculated χ2 value is much greater than the table value. Therefore the Null hypotheses is
rejected there is significant relationship between gender, qualification, occupation, family income and
satisfaction level of LIC policy. That all these are demographic significantly influenced the overall
satisfaction of policy holders.
8. CONCLUSION
Life Insurance cannot afford to lose sight of its social relevance and shy away from its social
responsibilities. The corporation has to constantly study the emerging needs of the market, arising due
to the change in the value of social life. Demographic changes also produce the different needs
amongst the population. The contribution to the nation building through strengthening the economy of
a country, improvement of the health care facilities, education as well as employment shall go a long
way to ultimately improve the quality of the insurance products of individual members of the society.
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