A Study on the Behaviour of Micro (Life) Insurance Policy Holders′ with Reference to Coimbatore, India

Abstract

Insurance Regulatory and Development Authority (IRDA) has created a special category of insurance policies called micro-insurance(MI) policies to promote insurance coverage among economically vulnerable sections of society. Micro insurance contributes significantly to alleviate poverty and to raise the living standard of the people of the country. Hence it is imperative to conduct a research study on the performance of MI and find out the relevant problems. The research study was conducted in Coimbatore during 2013 with a sample of 100 MI(life) Policy holders. The objectives are i. To identify socio-economic determinants of MI(life) demand in Coimbatore. ii. To ensure the level of satisfaction of MI(life) holders. iii. To identify specific problems relating to MI(life). To achieve these objectives a research methodology was framed. The research design is both descriptive and analytical. Both primary (questionnaire) and secondary data were used. The data collected was analyzed with relevant statistical tools like percentage, mean score, Kruskal Wallis H-Test, factor analysis and Likert scale technique. From the analyzed data results were derived. Findings were summarized and presented in the research study. The study shows the growing popularity of MI(life) policy and the awareness among the public. Micro Insurance can play a crucial role as a comprehensive tool to reduce poverty, inequality and vulnerability, particularly where public social protection measures are inadequate and unevenly distributed.