Index of Paper Presentations for the Parallel Sessions - Academy of ...

exists a great potential for insurance players. But this also calls for the attention of marketers to understand theproblems that exist in the rural market for the low penetration levels.Reasons for Low Penetration of Insurance ProductsThe major reason revealed by the existing insurance agents and the customers is the non availability of rightinsurance product for rural need. The other reason being the traditional mindset that exists among the customerstowards LIC. Trust being the major factor has not paved way for private insurance companies. Insurance salesdemands trust of the customers. Evidence from primary data suggests that customers in rural areas do not trustprivate life insurance companies as much as they trust the public sector LIC of India. Table 7 brings out theperception of the customers.In order to test thefrequency of responses, the t-test is conducted and the results are tabulated below. The hypothesis formulated is:H 0 :H 1 :There is no significant difference between the perceptions of the rural people in Bangalore and Kolar aboutsafety of investments in private life insurance companies.There is significant difference between the perceptions of the rural people in Bangalore and Kolar aboutsafety of investments in private life insurance companies.The difference in perception of respondents in two different places are studied and tested with Independent t-test andthe results are tabulated.