Malaya Journal of Matematik, Vol. S, No. 2, 1940-1947, 2020

https://doi.org/10.26637/MJM0S20/0506

A study on perception about unit linked insuranceplan from the customer at Kotak Mahindra BankPrashanth Babu 1 and C.S. Gowtham 2

AbstractThe study proposed to be conducted at Kotak Mahindra Bank is an analytical and descriptive type of research,using both primary and secondary data and Statistical tools like Simple percentage analysis, ranking methodand chi-square analysis. On the basis of feedback through questionnaire, interview and observation method, wefind out the perception view about the insurance company’s working style and services offered is quite effective,Management of Kotak Mahindra Bank is constantly making efforts to make the company the best place to workfor level. As they are measures of individuals psychological makeup and personality and as such are extremelypowerful instruments as find out from our comparative analysis results. A Unit Link Insurance Plan is basically acombination of insurance as well as investment. In Unit Linked Insurance Plans (ULIP), the investments madeare subject to risks associated with the capital markets. This investment risk in investment portfolio is borne bythe policy holder. Thus, you should make your investment choice after considering your risk appetite and needs.It is important for an organization to clearly identify its current and potential customers, because failure to identifythem correctly results in wasted efforts and even failures in the entire quality initiative. In order for the total qualityphilosophy to have a lasting impact on change and quality improvement in HEIs, it is important that educationalinstitutions have the right customer focus. The result of this research would help the company to have a betterunderstanding about the consumer’s perception towards life insurance. The study helps the company by creatingawareness about the consumers of different ages and income levels. The study also enables the company tofocus the consumer’s preferences and expectations on the product which they offer.

KeywordsFinancial analysis, assets, liabilities, profits.

1,2Department of Management Studies, Bharath Institute of Higher Education and Research, Selaiyur, Chennai-600073, Tamil Nadu, India.Article History: Received 01 October 2020; Accepted 10 December 2020 c©2020 MJM.

Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1940

2 Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1942

3 Research Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . 1942

4 Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1946

5 Suggestion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1946

6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1946

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1947

1. Introduction“The Business of Insurance is related to the protection of

the economic values of the assets”. Every human being hasthe tendency to save to protect him from risks or events offuture. Insurance is one form of savings where in people tryto assure themselves against risks or uncertainties of future.

It is assurance against risks or events or losses. People cansave their earnings either in the form gold, fixed assets likeproperty or in banking and insurances. All the savings ofpeople of a country account for gross domestic savings. InIndia, although savings rate is high but people prefer to investeither in gold or fixed assets so that they can make money outof it. Hence insurance sector is still untapped in India.Definition

Consumer perception applies the concept of sensory per-ception to marketing and advertising. Just as sensory per-ception relates to how humans perceive and process sensorystimuli through their five senses, consumer perception per-tains to how individuals form opinions about companies andthe merchandise they offer through the purchases they make.Merchants apply consumer perception theory to determinehow their customers perceive them. They also use consumerperception theory to develop marketing and advertising strate-gies intended to retain current customers – and attract new

A study on perception about unit linked insurance plan from the customer at Kotak Mahindra Bank — 1941/1947

ones.Self-Perception

Self-perception theory attempts to explain how individu-als develop an understanding of the motivations behind theirown behavior. Self-perception by customers relates to val-ues and motivations that drive buying behavior – which isalso an important aspect of consumer perception theory. Forinstance, a study by researchers at the University of Mas-sachusetts at Amherst addressed how self-perception shapedconsumers’ buying behavior. The study considered the ques-tion of whether consumers believed their buying decisionshad a real effect on issues such as environmental impact. Theresearchers concluded that consumers’ self perception wasa driving factor in whether or not they placed a priority onsocially conscious purchase and consumption practices. Con-sumers who viewed themselves as socially conscious tendedto place more weight on issues such as environmental impactwhen making buying decisions than consumers who did nothold similar views of themselves.Price Perception

While mass merchandisers such as Wal-Mart emphasizelow prices as an inherent virtue, upscale merchants attempt toemphasize quality and value for money to appeal to potentialcustomers. Researchers at the School of Business Administra-tion at LaSalle University and LeBow College of Business atDrexel University considered several factors, including priceperception – whether consumers believed they were beingcharged fair prices – in determining whether online shopperswould make repeat purchases through the same website. Theresearchers concluded that price perception strongly influ-enced whether customers were satisfied with their purchasesand whether they would make future purchases. Two factorsthat shaped price perception were the perceived quality ofthe merchandise or service in question and price comparisonswith merchants offering similar merchandise or services.Benefit Perception

”It’s good, and it’s good for you.”Many consumers arefamiliar with this phrase frequently associated with food ad-vertising. Researchers from Marquette University, LouisianaState University and the University of Arkansas surveyed cus-tomers to determine how nutrition claims associated with foodaffected their perception of that food’s nutritional value. Theresearchers found that consumers tend to reject general, un-supported claims of enhanced nutrition, especially concerninghigh nutritional value for foods that are traditionally viewedas unhealthy. The researchers also theorized that consumerswould demonstrate a trend toward applying more scrutiny tonutrition claims and would demand more specific informationabout the foods they purchase.

Importance of customer perceptionThe theoretical outline of this thesis will be divided into

three main parts, the theories behind customer perceptions ofservice, store image and products. Before introducing andanalyzing the importance of customer perception within these

Fig.1.Mapping customer perception

different categories, a short definition of perception and itselements will follow.

The definition of perception can be said as the processin which a person select, arrange and interpret stimuli, thesestimuli are filtered and adjusted to become one’s own viewof the world. Even though exposed to the same thing, inthe same environment, two persons will never experience thesame. (See e.g. Schiffman and Kanuk). We live in a worldtoday where we daily are exposed to millions of differentstimuli; different smells, sounds, tastes, sights and textures.Our brain takes in and processes only a small number of allthese stimuli. (Solomon, Bamossy, Askegaard and Hogg,2006).

The whole perception process is made up by three stages,the exposure stage, the attention stage and the interpretationstage. The brain takes in the stimuli in the attention stage andinterprets the stimuli, according to our previous experiencesand desires, in the interpretation stage. Ultimately, these threestages form our perceptions. (Solomon, Bamossy, Safeguardand Hogg, 2006).

It is only when the customers’ perceptions of the business,the products and the services are known, that you truly knowwhether or not the business is going in the right direction. Allinteractions that occur between the customers and the businesswill ultimately affect the customers’ view and image of thebusiness.

Excellent customer service is far from enough, for exam-ple, if the store is located far from the customers and on aplace where there are no parking places outside these aspectswill effect the perceptions. Selling top class products is aprerequisite for many stores in order to keep customers, butif the staff is unfriendly, the store will eventually start to loseits customers. All what customers see, hear and experience is

1941

A study on perception about unit linked insurance plan from the customer at Kotak Mahindra Bank — 1942/1947

linked together and forms their overall perception of the busi-ness, this is why it is essential for the case company, SisustusCASA, as well as for all businesses to know the customersperceptions.

The meaning of customer perception is most often usedin the content of how customers perceive the quality of theservice they are offered. More widely speaking customer per-ception is also the customers’ overall picture of the company,including company image, expectations, external influences,service quality etc.Statement of the problem:

A study on Perception about Unit Linked Insurance Planfrom the Customer at Kotak Mahindra Bank.

2. ObjectivesPrimary Objective

• To check out the overall current financial status withrespect to income statement and Balance sheet using financialtools such as ratio analysis, financial statements, fund flowand cash flow statements.Secondary Objective

• To analyze the earnings in detail.• To bring out an insight of the long term funds.• To review the cash position of the company.• To bring a bird’s eye view on the pattern of expenses.• To bring a view on the position of fixed assets and

current assets.• To view the status of fixed and current liabilities.

Need for the study1. The concern authority wishes to understand what the

perception towards the Unit Linked Insurance Plan from theCustomer at Kotak Mahindra Bank.

2. It is important for an organization to clearly identifyits current and potential customers, because failure to identifythem correctly results in wasted efforts and even failures inthe entire quality initiative.

3. It is important to underscore the word perception. Per-ception is “is the act of discerning realizing and becomingaware of through the senses”. The customer perception iswhat counts and not what we think it is.

4. Establishing a feedback mechanism is accomplishedthrough a systematic, factual collection of data from cus-tomers so that the BSU can establish whether or not its serviceprovision is efficient. This information would then be usedfor the purpose of continuous improvement.Scope of the study

This study which is done at Noble Consolidated GlazingsLtd aims at studying Overall Financial Status from (2007 –2008, 2008 – 2009, 2009 – 2010).

This study aims at analyzing six headings of the companythat are ratio analysis, working capital, funds flow analysis,cash flow analysis, comparative statement and trend analysis.The study would help the company to know their financial sta-tus and helps to make the financial decision making process.Limitations of the study

• Figures for the analysis are taken from the annual reports.So all the limitations of their statements are applied to thestudy.

• It is very to know the whole transaction methods thatare followed in NCGL.

• The major part of the work is concerned with financialdata.

3. Research Methodology

Research methodology is a way of systematically solvingthe research problem. In this, various types of techniques aregenerally adopted by a researcher in studying his researchproblem along with the logic behind the problem.Research design

The study used in descriptive research the purpose of thestudy is to organization various department its process. Anattempt to establish what level of understanding has of thecustomer requirements.Sources of data

(a) Primary dataPrimary data were collected by heavily. Interviews and

interaction with the customer at Kotak Mahindra Bank(b)Secondary dataSecondary data were collected from books, Newspaper,

websites and company documents etc.Sampling Method

The researcher has been adopted to select simple randomsampling method Sample size

The researcher has selected 200 clients of Kotak MahindraBank.Tools used for AnalysisSimple percentage analysis

Simple percentage analysis refers to a ratio. With thehelp of absolute figures it will be difficult to interpretive anymeaning from the collected data, but when percentages arefound out then it becomes easy to find the relative differencebetween two are more attributes.

Percentage = No. Of respondents / Total number of re-spondents x 100Weighted average

The from weighted average usually report to a weightedarithmetic mean but weighted verses of other means can alsobe calculated such as the weighted Geometric mean weightedharmonic mean.

Weighted Average = ∑Wx/∑x (W) Weight (X) No. ofrespondentsOne Way Anova

One-way analysis of variance is a technique used to com-pare means of two or more samples. This technique can beused only for numerical data. The ANOVA tests the null hy-pothesis that samples in two or more groups are drawn frompopulations with the same mean values.Limitations of the Study

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A study on perception about unit linked insurance plan from the customer at Kotak Mahindra Bank — 1943/1947

This project is done with only Sunshare Investments. Thisproject survey has taken for only customer of Sunshare Invest-ments.

1. Feedback is just the representative of the entire popula-tion; it only states the opinion of a few respondents.

2. Time constraint was a major limitation.3. Unavailability of secondary data.4. The Sample size used for the research is less.5. The Target Area was limited to one particular company.6. Consultation with Experts would have largely improved

quality of the Research.7. The sample of the respondents chosen for the study

might not be representative.Table.1.Plan for financial goals

Fig.2. Plan for financial goals

Inference : From the above table it can be inferred that 7%of the respondents are married and 11% of the respondents arechild education and 34% of the respondents are Tax savingsand 37% of the respondents are Retirement and 11% of therespondents are other financial goals. Most of the respondent’smain financial goal is for retirement life.Table 2. Duration to use ULIP

Fig.3. Duration to use ULIP

Inference: From the above table it can be inferred that26% of the respondents are taken ULIP for Less than 1 yearand 24% of the respondents are taken ULIP for 1-3 years and21% of the respondents are taken ULIP for 3-5 years and 12%of the respondents are Taken for ULIP for 5-7 years and 17%of the respondents are of the respondents are taken ULIP forMore than 7 years.

Fig.4. Reasons for investing in ULIPS

Table 3. The premium amount to be paid in ULIP of KotakMahindra Bank

Inferences From the above table it can be inferred that31% of the respondents feel that the premium amount to bepaid in ULIPS of Kotak Mahindra Bank is very high and11% of the respondents feel that the premium amount to bepaid in ULIPS of Kotak Mahindra Bank is high. Most ofthe respondents feel that the premium amount to be paid inULIPS of Kotak Mahindra Bank is very high.

1943

A study on perception about unit linked insurance plan from the customer at Kotak Mahindra Bank — 1944/1947

Fig.5.Reasons for investing in ULIPS

Table 4. The premium amount to be paid in ULIP of KotakMahindra Bank

Fig.6. the returns in ULIP of Kotak Mahindra Bank

Table-5. Units allocated in ULIP of Kotak Mahindra Bank

Inferences From the above table it can be inferred that33% of the respondents feel that average units are allocated inULIP of Kotak Mahindra Bank and 9% of the respondents feel

Fig.7. Units allocated in ULIP of Kotak Mahindra Bank

that very high units are allocated in ULIPS of Kotak MahindraBank. Most of the respondents allocate average number ofunits in ULIP of Kotak Mahindra Bank.Table-6.The risk associated with ULIP of Kotak MahindraBank

Fig.8. The risk associated with ULIP of Kotak MahindraBank

Inferences From the above table it can be inferred that 34%of the respondents feel that the risk associated with ULIP ofKotak Mahindra Bank is average and 12% of the respondentsfeels that the risk associated with ULIP of Kotak MahindraBank is very high. Most of the respondents feel that the riskassociated with ULIP of Kotak Mahindra Bank is very high.Statistical tools and analysisOne-way ANOVA classificationNull hypothesis (H0):

There is a significance difference between the reasons forinvesting in ulips and the returns in ulip of Kotak MahindraBank

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A study on perception about unit linked insurance plan from the customer at Kotak Mahindra Bank — 1945/1947

Alternate hypothesis (H1):There is no significance difference between the reasons for

investing in ulips and the returns in ulip of Kotak MahindraBankTable – 7. The returns in ULIP of Kotak Mahindra Bank

Table -8. The returns in ULIP of Kotak Mahindra Bank

Table -9. The returns in ULIP of Kotak Mahindra Bank

Tabulated value = 2.60Calculated value = 492.052F = F cal ¿F tab F= 492.052 ¿ 2.60Hence, the Alternate hypothesis [H1] is accepted.InferenceThe calculated value of F is greater than the tabulated

value. Hence, we reject the null hypothesis and conclude thatthere is a significance difference the reasons for investing inULIP and the returns in ULIP of Kotak Mahindra Bank

Weighted average method:

Fig.9. Reason for investing in ULIP of Kotak Mahindra Bank

The weighted moving average is obtained on dividing theweighted moving total by the sum of the weight.

= ∑wixi/∑xiA weight average with appropriate weight is generally

used when the moving average are strongly affected by ex-treme value.

Table 10. Satisfaction level of current supervision system

Inference:From above table, it can be inferred that most of the re-

spondents are satisfied for the offers multiple benefits, likeinvestment + insurance + tax saving.

Correlation CoefficientNull hypothesis (H0):There is a negative significance between the reasons for

investing in ULIPS and the returns in ULIP of Kotak MahindraBank

Alternate hypothesis (H1):There is positive significance between the reasons for

investing in ULIPS and the returns in ULIP of Kotak MahindraBank

Table 11. Satisfaction level of current supervision systemAs the correlation value is less than 1, there has positive

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A study on perception about unit linked insurance plan from the customer at Kotak Mahindra Bank — 1946/1947

significance between both. In other way, we can said that herewe can accept alternate hypothesis (H1).

4. Findings1. Most of the respondents are in the age group between

51 & Above2. 52% of the respondents are Salaried3. Employees Most of the employees are earning 3 lakh-5

lakh4. Most of the respondents feel that the most important

factor they look before choosing an investment is to increasetheir wealth

5. 38% of the respondents are preferred to invest in ULIP6. Most of the employees know information about ULIP

through Television.7. 28% of the respondents find best for ULIPS in Kotak

Mahindra Bank8. 40% of the respondents are plan to invest in ULIP for

10-20 years.9. Most of the respondents prefer to invest in ULIPS for

the Investment.10. Most of the respondent’s main financial goal is for

retirement life11. 26% of the respondents are taken ULIP for Less than

1 year12. Most of the respondents are recommended by family

and friends for investing in ULIPS of Kotak Mahindra Bank.13. Most of the respondents feel that the premium amount

to be paid in ULIPS of Kotak Mahindra Bank is very high.14. Most of the respondents feel that the returns in ULIPS

of Kotak Mahindra Bank are high.15. Most of the respondents allocate average number of

units in ULIP of Kotak Mahindra Bank16. Most of the respondents feel that the risk associated

with ULIP of Kotak Mahindra Bank is very high.17. Most of the respondents have low schemes with ulip

of Kotak Mahindra Bank.18. Most of the respondents are highly flexibility with

ulip of Kotak Mahindra Bank.

19. Most of the respondents feel that the transparencywith ulip of Kotak Mahindra Bank is average.

20. Most of the respondents feel average about the monthlycharges in ulip of Kotak Mahindra Bank. 21. More respon-dents rated High percentage for the administration charges inULIP.

22. Most of the respondents rated high percentage forsurrender charges in ULIP.

23. Most of the respondents are satisfied with the ULIP.24. More respondents rated high percentage for ULIP’s

fund management.25. Most of the respondents feel that the transparency

with ulip of Kotak Mahindra Bank is average.

5. Suggestion1. The charges like administration charges, surrender

charges and fund management percentage are rated high. Thismay create a negative impact to invest in this plan. The com-pany can make some alterations in the charges to get moreinvestors.

2. The transparency with ULIP of Kotak Mahindra Bankis average which may be a negative impact for the investors.The company is suggested to keep the records of the customersas highly secretive.

3. The risk associated with ULIP of Kotak MahindraBank is very high because of the share price movements. Thecompany can make some awareness program about their plansto attract customers and also introduce some plans with lowrisk.

4. Only 38% of the respondents are preferred to investin ULIP and 28% of the respondents find best for ULIPSin Kotak Mahindra Bank . Awareness program about theadvantages of the ULIPS will help the company to get moreinvestors.

5. Although the returns in ULIPS of Kotak Mahindra Bankare high, the risk associated with ULIP of Kotak MahindraBank is also very high.

6. Most of the respondents are choosing the retirementplan. The company can give some offers for other options likeMarriage, Child education, Tax savings and other plans to getmore investors in these options also

6. ConclusionA Unit Link Insurance Plan is basically a combination of

insurance as well as investment. In Unit Linked InsurancePlans (ULIP), the investments made are subject to risks as-sociated with the capital markets. This investment risk ininvestment portfolio is borne by the policy holder. Thus, youshould make your investment choice after considering yourrisk appetite and needs.

On the basis of feedback through questionnaire, interviewand observation method, we find out the perception view aboutthe insurance company’s working style and services offeredis quite effective, Management of Kotak Mahindra Bank is

1946

A study on perception about unit linked insurance plan from the customer at Kotak Mahindra Bank — 1947/1947

constantly making efforts to make the company the best placeto work for level. As they are measures of individuals psy-chological makeup and personality and as such are extremelypowerful instruments as find out from our comparative analy-sis results.

References[1] http://smallbusiness.chron.com/consumer-perception-

theory-40176.html[2] http://www.theseus.fi/bitstream/handle/10024/16719[3] http://www.Kotak Mahindra Bank life.com/about-

us.aspx?cat=5[4] http://www.Kotak Mahindra Bank capi-

tal.co.in/ourbusiness rli.html[5] http://en.wikipedia.org/wiki/Kotak Mahindra Bank Life

Insurance[6] http://www.ibef.org/industry/insurance-sector-

india.aspx[7] http://www.indianmba.com/Faculty Column[8] http://business.financialpost.com/2012/10/29/preferred

shares an attractive alternative to bonds stocks/[9] http://www.scimagojr.com/journalsearch.php?

[10] www.scimagojr.com/journalsearch.php?[11] http://www.iijournals.com/toc/jai/current[12] http://www.investopedia.com/university

/beginner/beginner5.asp[13] http://www.efinancemanagement.com/investment deci-

sions/64 various avenues-and-investments-alternative[14] www.efinancemanagement.com/investment-

decisions/64-various-avenues-and-investments-alternative

[15] http://lurnq.com/lesson/Investments-A-DetailedUnderstanding/section/Investment-Alternatives-Options-Available to an Indian-Investor/

[16] http://www.investologic.in/various-investment-alternatives/

[17] http://www.investopedia.com/university/

?????????ISSN(P):2319−3786

Malaya Journal of MatematikISSN(O):2321−5666

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1947