A Study of Customer Behavior in Rural Sector towards Life Insurance: (A Study of Village Radthana in Haryana)

Insurance sector is one among the most lucrative sector in current scenario with respect to not only financial products but also the job opportunities in General. Not only individuals but also the banking and Non Banking Financial Corporations (NBFC) are raising revenues and thereby profits by selling life insurance policies. They are either selling their own products of life insurance like Kotak Mahindra Bank selling Kotak Life Insurance or working as an representative like Corporation Bank selling LIC products via Bank Assurance channel.

There is a rapid growth visible in past for selling life insurance policies in rural areas and remote areas. The reason is taken to be the increase in the disposal income in the hands of villagers by selling their lands or may be the family member got urbanized for better income. The rise in disposable income can be attributed to purchase of local lands by corporate houses at lucrative prices. Although some of the villagers are having surplus money, still it is a big challenge as to how they can be encouraged to invest this money in the life insurance sector. Also the basic focus is not the encouragement to invest but to keep the customers satisfied as in villages most of the business is generated through word of mouth publicity.

The study is focused to have some insight to understand the satisfaction of the policyholders in rural sector with private life insurance companies and their sales professionals.

The study helps us to recognize understanding of the villagers for their policies with private life insurers for which information has been collected personally and analyzed. This helps us in acquainting with the popularity of life insurance in the rural sector along with all the difficulties they face while buying life insurance schemes from private insurers.

The study also focuses on viable solutions, which might help companies in popularizing and selling the life insurance schemes to rural people providing due satisfaction the villagers as existing and potential customers.