A Study on Lapsation of Insurance Polices of Select Insurance Companies

Purpose: Lapsation is the discontinuation of payment premia for reasons other than death a policy holder. A majority insurance companies notice that half their policyholders do not pay regularly leading to an increase in lapsation policies. Increase only affects policyholders’ welfare but also companies’ business growth. So, present study was carried out determine where rate high and offer solutions reduce lapsation. Design/Methodology/Approach: The descriptive nature. carefully constructed questionnaire used gather study's pertinent data. Data were collected from life company employees Tamilnadu using convenience sampling method. includes inquiries about different kinds, distribution methods, agent information, commission structures. Findings: Result cross tabulation discloses noticed with term endowment policies both at LIC private companies. High under distributed by direct sale teams Further, it Private companies, agents receive low commission. Public Insurance moderate level Practical Implications: result will be immensely useful particular general. Reduction assist policyholder reap benefit availing aids expand volume greater extent. Social Life safeguard interest invests excess amount premium corporate securities, thereby assists growth industries Indian economy as well. may affect transfer towards industry investment. Thus, understand reason suitable suggestions too. Originality/Value: Questionnaire employed collecting first hand By contacting person data required has been gathered.