Rambir Singh

Case of Mr. Rambir Singh and his Family: Buying Insurance
The case is all about Rambir Singh, a trader in agricultural commodities living in a small town called Rampur being approached by Ratan Sharma, the friendly neighborhood life insurance agent to purchase an insurance for his daughter’s future needs i.e. college studies, marriage etc. This makes Rambir Singh think about it. He takes advice from his two younger brothers who are professionals for his saving needs. Rambir Singh is the head of the family and wants his family to stay comfortably even when he is not around.
Also Rambir Singh is in dire need of clients and feels making Rambir Singh a prospect would increase his business as Rambir would be a perfect referral for others due to his strong social position.
We analyze how various factors like demographics, psychographics and people around you affect the choices of consumers.
To sell maximum insurance policies, there are two segments that Ratan can look into:
Sell lower number of high premium policies to small number of rich people.
Sell large number of small premium policies to the lower people.
Effect of Education
As the insurance has huge clauses and criteria, it needs detailed explanation to convince the people.
Educated people will understand it better and it would be easy to convince them and they would understand the need of such a commodity better.
Very tough to explain to uneducated people.
Effect of Occupation
The people who have steady income that is not affected by changes in climate and other external factors believe in depositing the money in FDs and PPF.
In case of Rambir, agricultural products are affected by vagaries of business so, it is difficult for him to pay insurance premium continuously.
The key factors affecting Decision are:
The level of standard of living.
The premium paying ability.
The cause of taking insurance.
The risk taking ability.
The return expected.
People around you