The document is a summer internship project report submitted by a student to Gujarat Technological University. It analyzes consumer behavior for IDBI Federal Life Insurance Company. The report provides an overview of IDBI Federal, discusses its strengths, weaknesses, opportunities and threats. It then describes the research methodology used, including hypotheses tested, data collection instruments, sample size and limitations. Key findings are that while people prefer life insurance for security, tax benefits and investment, awareness remains low, especially in rural areas.

1. 1
GUIDED BY :- PROF. SHARMISTHA SINGH
ATMIYA INSTITUTE OF TECHNOLOGY & SCIENCE
DEPARTMENT OF MANAGEMENT
A
SUMMER INTERNSHIP PROJECT REPORT
ON
“CONSUMER BEHAVIOR”
AT
IDBI FEDERAL LIFE INSURANCE CO. LTD.
Prepared by:-
Gaurav B. Mehta
M.B.A. - Semester II
Enrollment No.: 128240592032
Academic Year: 2013-2014
SUBMITTED TO:-
GUJARAT TECHNOLOGICAL UNIVERSITY

2.  Company Name : IDBI Federal Life Insurance Co. Ltd.
 Sector / Industry : Insurance
 Establishment Year : March 2008
 Headquarter : Mumbai, India.
 Products : Individual Life Insurance,
Group Insurance, Pension Plans.
 Employees : 1000 on Roll, 7500 Advisors + Active
 Registered Office : 1st
floor, Trade View, Oasis Complex,
Kamala City, P.B. Marg,
Lower Parel (W),
Mumbai – 400013. India.
 Phone Number : 18001025005
 Website : www.idbifederal.com
 Company Name : IDBI Federal Life Insurance Co. Ltd.
 Sector / Industry : Insurance
 Establishment Year : March 2008
 Headquarter : Mumbai, India.
 Products : Individual Life Insurance,
Group Insurance, Pension Plans.
 Employees : 1000 on Roll, 7500 Advisors + Active
 Registered Office : 1st
floor, Trade View, Oasis Complex,
Kamala City, P.B. Marg,
Lower Parel (W),
Mumbai – 400013. India.
 Phone Number : 18001025005
 Website : www.idbifederal.com
AITS, Department of Management 2

3. WEAKNESS
National level
advertisement
Low frequented
promotional activities.
Low awareness among
rural people
WEAKNESS
National level
advertisement
Low frequented
promotional activities.
Low awareness among
rural people
OPPORTUNITY
Market expansion.
Still only 3 to 5 percent of
the market is insured
To track the uncovered
rural areas
OPPORTUNITY
Market expansion.
Still only 3 to 5 percent of
the market is insured
To track the uncovered
rural areas
THREATS
Tough competition from
market leader LIC
IRDA intervention
FDI limit increased to 49%.
THREATS
Tough competition from
market leader LIC
IRDA intervention
FDI limit increased to 49%.
STRENGTH
Products.
9.25 B.E.P. in few years
2nd company to achieve
such success and 3rd in
number
Brand name
Employee satisfaction
STRENGTH
Products.
9.25 B.E.P. in few years
2nd company to achieve
such success and 3rd in
number
Brand name
Employee satisfaction
3AITS, Department of Management

4. 4
 Research Topic: “Consumer Behavior for IDBI Federal
Life Insurance Company Limited.”
 Research Problem Statement:
“What is the Consumer Buying Behavior for IDBI Federal
Life Insurance Company Limited?”
 Research Hypothesis:
Ho1: Monthly family income is Independent of Life Security.
Ha1: Monthly family income is Dependent of Life Security.
Ho2: Investment in public & private life insurance company is
Independent of Occupation.
Ha2: Investment in public & private life insurance company is
dependent of Occupation.
AITS, Department of Management

5. 5AITS, Department of Management
 Universe Size (N) : ∞
 Sample Size (n) : 50
 Sampling Procedure : Non-probability
 Sampling Type : Convenience sampling
 Fact Finding Technique : Primary
 Data Collection Instruments : Questionnaire
 Product Nature : Consumer
 Potential Competitors : LIC, SBI, HDFC, ICICI, etc.
 Universe Size (N) : ∞
 Sample Size (n) : 50
 Sampling Procedure : Non-probability
 Sampling Type : Convenience sampling
 Fact Finding Technique : Primary
 Data Collection Instruments : Questionnaire
 Product Nature : Consumer
 Potential Competitors : LIC, SBI, HDFC, ICICI, etc.
AITS, Department of Management

6. 6AITS, Department of Management
Que1: Which option will you prefer for you and your family
to be financially secured?
Insurance
Bank
Share Market
Fixed Asset
Jewelery
Insurance 72
Sharemarket 12
Fixed asset 4
Bank F.D. 8
Jewelery 4

7. 7AITS, Department of Management
Que2: What do you think are the benefits of Insurance
cover?
Uncertainity
Tax Savy
Investment
Cover Future Uncertainty 40
Tax Deduction 25
Investment (safe) 35

8. 8AITS, Department of Management
Que3: How will you rate the services given by IDBI Federal
Life Insurance Company Limited?
Poor 5
Average 40
Good 45
Excellent 10
Poor
Average
Good
Excellent

9. 9
CHI-SQUARE TEST
1) Setting of Hypothesis for Monthly Family Income and Security.
H0: Monthly family income is Independent of Life Security.
H1: Monthly family income is Dependent of Life Security.
DECISION: χ2c < χ2t
0.1051 < 7.815
Therefore we accept the null hypothesis i.e.
Monthly family income is Independent of Security. We can say that
since the people are very much conscious about their security,
whatever is their family income, they always want life security.
People do not want to take chance against the uncertain future.
So they will go for the affordable life security option irrespective
of their monthly family income.
AITS, Department of Management

10. 2) Setting of Hypothesis for the investment in public and private life
insurance company:
H0: Investment in public & private life insurance company is
Independent of Occupation.
H1: Investment in public & private life insurance company is
dependent of Occupation.
DECISION: χ2c < χ2t
5.10 < 7.815
Therefore we accept the null hypothesis i.e. there is no
significant difference between the investment in public &
private life insurance company by the people of their different
occupation. We can interpret that people now have become
aware about benefits of investing in private life insurance
company. Here at IDBI Federal Life Insurance Company
Limited provides attractive plans with comparatively low
premium and has good claim ratio till date.
10AITS, Department of Management

11. 11
RECOMMENDATIONS & SUGGESTIONS
• There remains need of creating awareness by IDBI Federal Life
Insurance Company Limited specially among people of rural areas.
• More and more seminars and meetings are required to be arranged to
cover a large market. Do not make people wait who meet for the
important insurance purpose.
• Need to increase advertising at local level and various sales
promotional activities.
RESEARCH FINDINGS & CONCLUSION
• Majority of people are still not aware about the benefits of having life
insurance policy. They need to be made aware about the various
products according to the individual needs of the prospects & its
benefits.
• LIC is still the most preferred life insurance provider mainly because
it is a government undertaking.
• People prefer to buy life insurance policy for tax benefits, life
insurance & investment tool.
RECOMMENDATIONS & SUGGESTIONS
• There remains need of creating awareness by IDBI Federal Life
Insurance Company Limited specially among people of rural areas.
• More and more seminars and meetings are required to be arranged to
cover a large market. Do not make people wait who meet for the
important insurance purpose.
• Need to increase advertising at local level and various sales
promotional activities.
RESEARCH FINDINGS & CONCLUSION
• Majority of people are still not aware about the benefits of having life
insurance policy. They need to be made aware about the various
products according to the individual needs of the prospects & its
benefits.
• LIC is still the most preferred life insurance provider mainly because
it is a government undertaking.
• People prefer to buy life insurance policy for tax benefits, life
insurance & investment tool.
AITS, Department of Management

12. 12
 Sometimes we can not get proper response from the respondents.
 It is very hard to get information from each & every individual by
filling questionnaire. Sometimes we can not get proper response
from the respondents.
 Language also becomes barriers. Some persons can not understand
English & can not give proper response.
 It is also difficult to know whether willing respondents are true
representative.
 Time was the major constraint.
 The study is limited to specific area only and the data is collected
from the 100 respondents.
 Sometimes we can not get proper response from the respondents.
 It is very hard to get information from each & every individual by
filling questionnaire. Sometimes we can not get proper response
from the respondents.
 Language also becomes barriers. Some persons can not understand
English & can not give proper response.
 It is also difficult to know whether willing respondents are true
representative.
 Time was the major constraint.
 The study is limited to specific area only and the data is collected
from the 100 respondents.
AITS, Department of Management
LIMITATIONS OF STUDY