30879932 Reliance Life Insurance

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A

PROJECT REPORT

ON

A STUDY ON AWARENESS TOWARDS LIFE

INSURANCE POLICY "

Submitted to

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

In the partial fulfillment

Of the award of the degree of

BBA (Bachelor of Business Administration)

PROJECT GUIDE: SUBMITTED BY:. SIDDARTH KUMAR

BBA-5TH SEM

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Whether the insurer is old or new, private or public, expanding the

market will present multitude of challenges and opportunities. But

the key issues, possible trends, opportunities and challenges that

insurance sector will have still remains under the realms of the

possibilities and speculation.

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ACKNOWLEDGEMENT

I would like to thank ., for supporting me during this

project and providing me an opportunity to learn outside the class

room. It was a truly wonderful learning experience.

I would like to dedicate this project to my parents. Without their

help and constant support this project would not have been

possible.

Lastly I would like to thank all the respondents who offered their

opinions and suggestions through the survey that was conducted byme.

Once again my gratitude to the Life insurance Policy. For their

kind co-operation.

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DECLARATION

I Siddarth Kumar OF BBA III year of MAHARAJA SURAJMAL

INSTITUTE hereby declare that the summer training report

entitled in LIFE INSURACNE POLICY is an original word and

the same has not been submitted to any other institute for the

award of any other degree.

Signature of candidate

SIDDARTH KUMAR

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EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance

sector has the maximum growth and potential as compared to the

other sectors. Insurance has the maximum growth rate of 70-80%

while as FMCG sector has maximum 12-15% of growth rate. This

growth potential attracts me to enter in this sector and LIFE

INSURANCE POLICY has given me the opportunity to work and

get experience in highly competitive and enhancing sector.

The success story of good market share of different market

organizations depends upon the availability of the product

and services near to the customer, which can be distributed

through a distribution channel. In Insurance sector,

distribution channel includes only agents or agency holders

of the company. If a company like LIFE INSURANCE

POLICY, have adequate agents in the market they can

capture big market as compared to the other companies.

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CHAPTER I

INDIAN INSURANCE

INDUSTRY

AN OVERVIEW

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THE INSURANCE INDUSTRY IN INDIA

AN OVERVIEW

With the largest number of life insurance policies in force in the

world, Insurance happens to be a mega opportunity in India. Its a

business growing at the rate of 15-20 per cent annually and

presently is of the order of Rs 1560.41 billion (for the financial

year 2006 2007). Together with banking services, it adds about

7% to the countrys Gross Domestic Product (GDP). The grosspremium collection is nearly 2% of GDP and funds available with

LIC for investments are 8% of the GDP.

Even so nearly 65% of the Indian population is without life

insurance cover while health insurance and non-life insurance

continues to be below international standards. A large part of our population is also subject to weak social security and pension

systems with hardly any old age income security

A well-developed and evolved insurance sector is needed for

economic development as it provides long term funds for

infrastructure development and strengthens the risk taking abilityof individuals. It is estimated that over the next ten years India

would require investments of the order of one trillion US dollars.

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HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818 when it

was conceived as a means to provide for English Widows.

Interestingly in those days a higher premium was charged for

Indian lives than the non - Indian lives, as Indian lives were

considered more risky to cover. The Bombay Mutual Life

Insurance Society started its business in 1870. It was the first

company to charge the same premium for both Indian and non-

Indian lives.

The Oriental Assurance Company was established in 1880. The

General insurance business in India, on the other hand, can trace its

roots to Triton Insurance Company Limited, the first general

insurance company established in the year 1850 in Calcutta by the

British. Till the end of the nineteenth century insurance business

was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of

the Life Insurance Companies Act of 1912 and the Provident Fund

Act of 1912. Several frauds during the 1920's and 1930's sullied

insurance business in India. By 1938 there were 176 insurance

companies.

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The first comprehensive legislation was introduced with the

Insurance Act of 1938 that provided strict State Control over the

insurance business. The insurance business grew at a faster pace

after independence. Indian companies strengthened their hold on

this business but despite the growth that was witnessed, insurance

remained an urban phenomenon.

The Government of India in 1956, brought together over 240

private life insurers and provident societies under one nationalized

monopoly corporation and Life Insurance Corporation (LIC) was

born. Nationalization was justified on the grounds that it would

create the much needed funds for rapid industrialization. This was

in conformity with the Government's chosen path of State led

planning and development.

The non-life insurance business continued to thrive with the

private sector till 1972. Their operations were restricted to

organized trade and industry in large cities. The general insurance

industry was nationalized in 1972. With this, nearly 107 insurers

were amalgamated and grouped into four companies- National

Insurance Company, New India Assurance Company, OrientalInsurance Company and United India Insurance Company. These

were subsidiaries of the General Insurance Company (GIC).

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KEY MILESTONES

1912: The Indian Life Assurance Companies Act enacted as the

first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and

non-life insurance businesses.

1938: Earlier legislation consolidated and amended by the

Insurance Act with the objective of protecting the interests of the

insuring public.

1956: 245 Indian and foreign insurers along with provident

societies were taken over by the central government and

nationalized. LIC was formed by an Act of Parliament- LIC Act

1956- with a capital contribution of Rs. 5 crore from the

Government of India.

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INDUSTRY REFORMS

Reforms in the Insurance sector were initiated with the passage of

the IRDA Bill in Parliament in December 1999. The IRDA since

its incorporation as a statutory body in April 2000 has fastidiously

stuck to its schedule of framing regulations and registering the

private sector insurance companies. Since being set up as an

independent statutory body the IRDA has put in a framework of

globally compatible regulations.

The other decision taken simultaneously to provide the supporting

systems to the insurance sector and in particular the life insurance

companies was the launch of the IRDA online service for issue and

renewal of licenses to agents. The approval of institutions for

imparting training to agents has also ensured that the insurance

companies would have a trained workforce of insurance agents in

place to sell their products.

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PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN

INDIA

The life insurance industry in India grew by an impressive 47.38%,

with premium income at Rs. 1560.41 billion during the fiscal year

2006-2007. Though the total volume of LIC's business increased in

the last fiscal year (2006-2007) compared to the previous one, its

market share came down from 85.75% to 81.91%.

The 17 private insurers increased their market share from about

15% to about 19% in a year's time. The figures for the first two

months of the fiscal year 2007-08 also speak of the growing share

of the private insurers. The share of LIC for this period has further

come down to 75 percent, while the private players have grabbed

over 24 percent.

With the opening up of the insurance industry in India many

foreign players have entered the market. The restriction on these

companies is that they are not allowed to have more than a 26%

stake in a companys ownership.

Since the opening up of the insurance sector in 1999, foreign

investments of Rs. 8.7 billion have poured into the Indian market

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and 19 private life insurance companies have been granted

licenses.

Innovative products, smart marketing, and aggressive distribution

have enabled fledgling private insurance companies to sign up

Indian customers faster than anyone expected. Indians, who had

always seen life insurance as a tax saving device, are now suddenly

turning to the private sector and snapping up the new innovative

products on offer. Some of these products include investment plans

with insurance and good returns (unit linked plans), multi

purpose insurance plans, pension plans, child plans and money

back plans.

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CHAPTER II

PROFILE OFORGANIGATION

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When Dhirubhai embarked on his first business venture, he

had a seed capital of barely US$ 300 (around Rs 14,000). Over

the next three and a half decades, he converted this fledgling

enterprise into a Rs 60,000 crore colossusan achievement

which earned Reliance a place on the global Fortune 500 list,

the first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of Indias capital

markets. In 1977, when Reliance Textile Industries Limited first

went public, the Indian stock market was a place patronised by a

small club of elite investors which dabbled in a handful of

stocks.

Undaunted, Dhirubhai managed to convince a large number

of first-time retail investors to participate in the unfolding

Reliance story and put their hard-earned money in the Reliance

Textile IPO, promising them, in exchange for their trust,

substantial return on their investments. It was to be the start of

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one of great stories of mutual respect and reciprocal gain in the

Indian markets.

Under Dhirubhais extraordinary vision and leadership,

Reliance scripted one of the greatest growth stories in corporate

history anywhere in the world, and went on to become Indias

largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the

interests of the ordinary shareholder uppermost in mind, in the

process making millionaires out of many of the initial investors

in the Reliance stock, and creating one of the worlds largest

shareholder families.

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ABOUT RELIANCE

Reliance Life Insurance Company Limited is a part of Reliance

Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group.

Reliance Capital is one of Indias leading private sector financial

services companies, and ranks among the top 3 private sector

financial services and banking companies, in terms of net worth.

Reliance Capital has interests in asset management and mutual

funds, stock broking, life and general insurance, proprietary

investments, private equity and other activities in financial

services.

Reliance Capital Limited (RCL) is a Non-Banking Financial

Company (NBFC) registered with the Reserve Bank of India

under section 45-IA of the Reserve Bank of India Act, 1934.

Reliance Capital sees immense potential in the rapidly

growing financial services sector in India and aims to become a

dominant player in this industry and offer fully integrated

financial services.

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Reliance Life Insurance is another step forward for Reliance

Capital Limited to offer need based Life Insurance solutions to

individuals and Corporates.

CORPORATE OBJECTIVE

At Reliance Life Insurance, we strongly believe that as life is

different at every stage, life insurance must offer flexibility and

choice to go with that stage. We are fully prepared and committed

to guide you on insurance products and services through our well-

trained advisors, backed by competent marketing and customer

services, in the best possible way.

It is our aim to become one of the top private life insurance

companies in India and to become a cornerstone of RLI

integrated financial services business in India.

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CORPORATE MISSION

To set the standard in helping our customers manage their

financial future.

BELOW ARE FEW OF THE PLANS THAT ARE OFFERED

BY RELIANCE LIFE INSURANCE

INSURANCE PLANS AVAILABLE

1. Products (Individual Plans)

Savings (Endowment)

2. Reliance Endowment Plan

(formerly Divya Shree)

3. Reliance Special Endowment Plan

(formerly Subha Shree)

4. Reliance Cash Flow Plan

(formerly Dhana Shree)

5. Reliance Child Plan

(formerly Yuva Shree)

6. Reliance Whole Life Plan

(formerly Nithya Shree)

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http://www.reliancelife.co.in/products/ind_REP.asphttp://www.reliancelife.co.in/products/ind_RSEP.asphttp://www.reliancelife.co.in/products/ind_RCFP.asphttp://www.reliancelife.co.in/products/ind_RCP.asphttp://www.reliancelife.co.in/products/ind_RWLP.asphttp://www.reliancelife.co.in/products/ind_REP.asphttp://www.reliancelife.co.in/products/ind_RSEP.asphttp://www.reliancelife.co.in/products/ind_RCFP.asphttp://www.reliancelife.co.in/products/ind_RCP.asphttp://www.reliancelife.co.in/products/ind_RWLP.asp


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13. Reliance Money Guarantee Plan

Tax Benefits

INCOME

TAX

SECTION

GROSS

ANNUAL

SALARY

HOW MUCH

TAX CAN

YOU SAVE?

HDFC

STANDARD

LIFE PLANS

Sec. 80C Across Allincome Slabs

Upto Rs.33,990 saved

on investment

of

Rs. 1,00,000.

All the lifeinsurance plans.

Sec. 80 CCC Across all

income slabs.

Upto Rs.

33,990 saved

on Investment

of

Rs.1,00,000.

All the pension

plans.

Sec. 80 D Across all

income slabs

Upto Rs. 3,399

saved on

Investment of

Rs. 10,000.

All the health

insurance riders

available with the

conventional

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activities. LIC with its central office in Mumbai and seven zonal

offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur

and Bhopal, operates through 100 divisional offices in important

cities and 2,048 branch offices. LIC has 5.59 lakh active agents

spread over the country.

The Corporation also transacts business abroad and has offices in

Fiji, Mauritius and United Kingdom. LIC is associated with joint

ventures abroad in the field of insurance, namely, Ken-India

Assurance Company Limited, Nairobi; United Oriental Assurance

Company Limited, Kuala Lumpur; and Life Insurance Corporation

(International), E.C. Bahrain. It has also entered into an agreement

with the Sun Life (UK) for marketing unit linked life insurance and

pension policies in U.K.

In 1995-96, LIC had a total income from premium and investments

of $ 5 Billion while GIC recorded a net premium of $ 1.3 Billion.

During the last 15 years, LIC's income grew at a healthy average of

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10 per cent as against the industry's 6.7 per cent growth in the rest

of Asia (3.4 per cent in Europe, 1.4 per cent in the US).

LIC has even provided insurance cover to five million people

living below the poverty line, with 50 per cent subsidy in the

premium rates. LIC's claims settlement ratio at 95 per cent and

GIC's at 74 per cent are higher than that of global average of 40 per

cent. Compounded annual growth rate for Life insurance business

has been 19.22 per cent per annum

General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a

government company known as General Insurance Corporation of

India (GIC) was formed by the Central Government in November

1972. With effect from 1 January 1973 the erstwhile 107 Indian

and foreign insurers which were operating in the country prior to

nationalization, were grouped into four operating companies,

namely, (i) National Insurance Company Limited; (ii) New India

Assurance Company Limited; (iii) Oriental Insurance Company

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Limited; and (iv) United India Insurance Company Limited.

(However, with effect from Dec'2000, these subsidiaries have

been de-linked from the parent company and made as independent

insurance companies). All the above four subsidiaries of GIC

operate all over the country competing with one another and

underwriting various classes of general insurance business except

for aviation insurance of national airlines and crop insurance which

is handled by the GIC.

Besides the domestic market, the industry is presently operating in

17 countries directly through branches or agencies and in 14

countries through subsidiary and associate companies.

IN ADDITION TO ABOVE STATE INSURERS THE

FOLLOWING HAVE BEEN PERMITTED TO ENTER

INTO INSURANCE BUSINESS: -

The introduction of private players in the industry has added to the

colors in the dull industry. The initiatives taken by the private

players are very competitive and have given immense competition

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to the on time monopoly of the market LIC. Since the advent of the

private players in the market the industry has seen new and

innovative steps taken by the players in this sector. The new

players have improved the service quality of the insurance. As a

result LIC down the years have seen the declining phase in its

career. The market share was distributed among the private

players. Though LIC still holds the 75% of the insurance sector but

the upcoming natures of these private players are enough to give

more competition to LIC in the near future. LIC market share has

decreased from 95% (2002-03) to 82 %( 2004-05).

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of Indias

leading private life insurance companies, which offers a range of

individual and group insurance solutions. It is a joint venture

between Housing Development Finance Corporation Limited

(HDFC Ltd.), Indias leading housing finance institution and The

Standard Life Assurance Company, a leading provider of financial

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services from the United Kingdom. Their cumulative premium

income, including the first year premiums and renewal premiums

is Rs. 672.3 for the financial year, Apr-Nov 2005. They have

managed to cover over 11,00,000 individuals out of which over

3,40,000 lives have been covered through our group business tie-

ups.

2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture

that brings together two large forces - Max India Limited, a multi-

business corporate, together with New York Life International, a

global expert in life insurance. With their various Products and

Riders, there are more than 400 product combinations to choose

from. They have a national presence with a network of 57 offices

in 37 cities across India.

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3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture

between ICICI Bank, a premier financial powerhouse and

Prudential plc, a leading international financial services group

headquartered in the United Kingdom. ICICI Prudential was

amongst the first private sector insurance companies to begin

operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). The

company has a network of about 56,000 advisors; as well as 7 banc

assurance and 150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture

between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

5.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between

Aditya Birla Group and Sun Life financial Services of Canada.

Tata AIG Life Insurance Company Ltd.

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SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.

Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint

venture between Bajaj Auto Limited and Allianz AG of Germany.

Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory

and Development Authority (IRDA) certificate of Registration

(R3) on May 2nd, 2001 to conduct General Insurance business

(including Health Insurance business) in India. The Company has

an authorized and paid up capital of Rs 110 crores. Bajaj Auto

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holds 74% and the remaining 26% is held by Allianz, AG,

Germany.

2. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint

venture between ICICI Bank Limited and the US-based $ 26

billion Fairfax Financial Holdings Limited. ICICI Bank is India's

second largest bank, while Fairfax Financial Holdings is a

diversified financial corporate engaged in general insurance,

reinsurance, insurance claims management and investment

management.

Lombard Canada Ltd, a group company of Fairfax Financial

Holdings Limited, is one of Canada's oldest property and casualty

insurers. ICICI Lombard General Insurance Company received

regulatory approvals to commence general insurance business in

August 2001.

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3. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture

company, formed from the Tata Group and American International

Group, Inc. (AIG). Tata AIG combines the strength and integrity

of the Tata Group with AIG's international expertise and financial

strength. The Tata Group holds 74 per cent stake in the two

insurance ventures while AIG holds the balance 26 per cent stake.

Tata AIG General Insurance Company, which started its operations

in India on January 22, 2001, offers the complete range of

insurance for automobile, home, personal accident, travel, energy,

marine, property and casualty, as well as several specialized

financial lines.

2.3 Reliance Policies

(1) Reliance Children Plans

What could make you happier than knowing, that your child'sfuture is secure? Nothing, we suppose. Which is why, Reliance

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Life Insurance brings to you Reliance Secure Child Plan, a unit-linked Insurance Plan, that gives you the freedom to enjoy todaywith your child, because his tomorrow is in safe hands.

Do you see your child becoming a trailblazer? Will they create the ultimate symphony or give sports a new

dimension?

Our children may just be the ones to end the arms race and wipeout poverty from the face of the Earth. But for them to be able toaim for the skies, YOU NEED TO ACT NOW!

Introducing Reliance Secure Child Plan - a unique life insurance

cum savings plan. secure the future of your child.

Key FeaturesInsurance cover on the life of childYour child is completely protected - we will continue to

pay the premiums even if you are not aliveLife time income to child in the event of disability

Return Shield option to protect your investment returnsLiquidity in the form of partial withdrawalsCapital guarantee available on maturity and on death ofthe child for basic and top-up premiumsOption to package with Accidental Death and Total andPermanent Disablement Rider, Critical Conditions Riderand Term Life Insurance Benefit Rider.

(2)Reliance Health + Wealth Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THEINVESTMENT PORTFOLIO IS BORNE BY THEPOLICYHOLDER.

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There are times when late working hours take precedence overyour health check-ups. And there are times when a visit to thedoctor seems more important than dividends on your shares. In therat race to make money, we often forget to take care of ourselves.

We understand this predicament. Here is a plan that will ensurethat your wealth keeps increasing constantly and yet your healthdoes not take a backseat. The Reliance Wealth Health Plan. A planthat gives you the benefits of wealth bhi. health bhi.

Life changes. And as it does, so do your priorities. After all, thecircumstances of your life can determine the type of healthcoverage you need.

India has made rapid strides in the health sector. SinceIndependence, life expectancy has gone up markedly and survivalrates have also increased, still critical health issues remain.Infectious diseases continue to claim a large number of lives.

Reliance Wealth + Health Plan, a health insurance planunderwritten by Reliance Life Insurance Company Limited, is

designed to work in conjunction with contributions towardssavings.

Key FeatureA Unit Linked plan with Unique Savings ComponentTwin benefit of market linked return and health protectionChoose from two different plan optionsFlexibility to take care of your familys health

Flexibility to switch between funds / plan optionsOption to pay Top-ups

(3) Reliance Pension Policy

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UNDER THIS PLAN THE INVESTMENT RISK IN THEINVESTMENT PORTFOLIO IS BORNE BY THEPOLICYHOLDER.

Retirement means different things to different people, while somewant to relax and take a trip around the world, some want to startup a venture of their own, and pursue a dream harnessed for years.The power to make your autumn years special lies only with you.The Reliance Super Golden Years Plan gives you the power andthe right kind of solution - A retirement plan that allows you tosave systematically and generate the much-needed corpus to makeyour olden years look golden.

Key Features Reliance Pension Policy :Invest systematically and secure your golden yearsA flexible unit-linked pension product that is differentfrom traditional life insurance products with Vesting Age

between 45 & 70 yearsEight different investment funds to choose fromFlexibility to switch between funds

Option to pay Regular, Single as well as Top-uppremiumsFlexibility to advance / extend your Vesting AgeTax free commutation up to one third of Fund Value atVesting Age

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CHAPTER III

OBJECTIVES OF STUDY

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The main of the present study of is accomplish the followingobjective.

Proper understanding and analysis of life insurance

industry.

To know about brand awareness of Kotak Life

Insurance and customers preference about Kotak Life

Insurance.

According the market survey come know about how

much potential of insurance market in our city.

And base on analysis of the result thus obtained make a

report on that research.

Training aims at recruiting maximum number of Life

Advisors and to Sell the maximum policies for the

company and bring the business for the company which

ever is going at the particular point of time.

As the Kotak Life Insurance well reputed company in

India its great chance for me to observed different

products launch by other competitor companies like

ICICI prudential, Bajaj alliance ,LIC, Max New York

life etc. In all, it is to understand the overall working ofthe Life insurance sector.

The objective behind the project is as follows:

To find the right candidate.

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To about their family background, occupation, social

relation, Qualification, Age.

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CHAPTER IV

RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

TITLE:

To determine customer-buying behavior with a focus on market

segmentation for Reliance Life Insurance.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with

studying the buying pattern in the insurance industry with a

special focus on Reliance life Insurance. The various segments of

the markets divided in terms of Insurance Needs, Age groups ,

Satisfaction levels etc will also studied.

OBJECTIVE

Objective One

To determine reasons behind opting for an insurance.

To provide the company with information of customer's

Insurance policy if they have any and reasons for opting for

that particular policies.

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To know the most preferred policy.

Objective Two

To determine customers perception towards private insurance

companies and their expectation form private insurance

companies.

To determine the feedback on services provided by any

other insurance agent.

To study the types of benefits provided by insurance

services.

To determine the use of Internet for valuable information

and decision-making process.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent

times. A large number of new players have entered the market and

are vying to gain market share in this rapidly improving market.

The study deals with Reliance in focus and the various segments

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that it caters to. The study then goes on to evaluate and analyse the

findings so as to present a clear picture of trends in the Insurance

sector.

SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the responses

of 100 people. This data can be explorated to take in the trends

across the industry. The significance for the industry lies in

studying these trends that emerge from the study. It is a rapiddly

changing and evolving sector. People are only beginning to wake

up to its vast possibilities. A study like this can attempt to guide

the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER :

To facilitate and provide all the useful informtaion of the studt, the

company, the insurance industry and also provide marketing ways,

methods of reliance life insurance.

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RESEARCH DESIGN

NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL

RESEARCH

The research is primarily both exploratory as well as descriptive in

nature. The sources of information are both primary & secondary.

A well-structured questionnaire was prepared and personal

interviews were conducted to collect the customers perception and

buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

SamplingTechnique:

Initially, a rough draft was prepared keeping in mind the objective

of the research. A pilot study was done in order to know the

accuracy of the Questionnaire. The final Questionnaire was arrived

only after certain important changes were done. Thus my sampling

came out to be judemental and convinent

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2. Some respondents were reluctant to divulge personal

information which can affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one

segment can change very quickly. The environmental changes

are vital to be considered in order to assimilate the findings.

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CHAPTER V

RESULT ANALYSIS

&

INTERPRETATION

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DATA ANALYSIS & INTERPRETATION

DATA GIVES PREFERENCE OFRESPONDENTS OF INSURANCE COMPANIES

COMPANYS NAME

NO.OF

RESPONDEN

T

SHARE (%)

L.I.C. 78 78

RELIANCE LIFE

INSURANCE

3 3

ICICI

PRUDENTIAL10 10

SBI LIFE 7 7

HDFC 2 2

TOTAL 100 100

78

3

10

7 2

LIC

REL

ICICI

SBI

HDFC

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INTERPRETATION

78% of the people contacted prefer LIC policy to any other

and therefore it is ranked no.1 by that percent of respondents.

DATA GIVES BENEFITS OF INSURANCE

PERCEIVED BY RESPONDENTS

BENEFITS

NO.OF

RESPONDEN

TS

SHARE (%)

Cover FutureUncertainty

55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

50

55%

20%

25%Cover Future

Uncertainty

Tax Deductions

Future Investment


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INTERPRETATION

55% of the respondents believe that covering future

uncertainty is the biggest benefit of an insurance policy.

Whereas, 20% and 25% of them believe that the other

benefits are Tax deduction and future investments

respectively.

DATA PROVIDES FEATURES OF INSURANCE

POLICY THAT ATTRACTED RESPONDENTS

FEATURE NO.OF

RESPONDEN

TS

SHARE

(%)

Money Back Guarantee 15 15Larger Risk Coverance 37 37

Easy Access to Agents 7 7

Low Premium 30 30

Companys Reputation 11 11

TOTAL 100 100

51


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FEATURES OF INSURANCE POLICY

15%

37%

7%

11%

30%

MONEY BACK

GUAARENTEE

LARGER RISK

COVERANCE

EASY ACCESS TO

AGENTS

LOW PREMIUM

REPUTATION OF

COMPANY

INTERPRETATION

Majority of the respondent (37%) found Larger risk

coverance as the most attracted feature of the all.

52


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DATA PROVIDES NUMBER OF INSURANCE

POLICY TYPE RESPONDENTS

POLICY TYPE NO. OF

RESPONDENT

S

SHARE (%)

LIFE POLICY 75 75

NON LIFEPOLICY

25 25

BOTH 45 45

NATURE OF POLICY

75

25

45

LIFE

POLICYNON LIFE

POLICYBOTH

53


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INTERPRETATION

75% of the respondents have Life Insurance Policy while

45% have both. (The % is calculated out of 280 positive

response)

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DATA GIVES PEOPLE PERCEPTION ABOUT

INSURANCE

RESPONSE NO. OF

RESPONDENT

S

SHARE

(%)

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect yourfamily

100 100%

81

74

100

SAVING

TOOL

TAX SAVING

TOOL

FAMILY

INTERPRETATION

81% of the respondents have perception of Insurance

being a saving tool.

55


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And 74% of the respondents have perception of Insurance

being a tax saving device.

But 100% of the respondents are with the view that

Insurance is a tool to protect your family.

DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF

RESPONDENTS

SHARE

(%)

Yes 70 70%

No 30 30%

Total 100 100%

56


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INTERPRETATION

Of the sample size of 400 surveyed respondents 70% of

the respondents are having Insurance policy.

30% of the respondents are either not having any

Insurance policy at present or their policy is already matured.

And at present 100% of the respondents are with the view

that Insurance is a tool to protect your family.

DATA SHOWS BUYING PROCESS OF THE

PEOPLE

57

70%

30%

Yes

No


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BUYING PROCESS NO. OF

RESPONDEN

TS

SHARE

(%)

Customer approachedInsurancecompany/Agent

45 45%

Company/agentapproached customer

55 555

Total 100 100%

INTERPRETATION

44.5% of the respondents approached the Insurance

Company / Agent.

58

55%45%

Customer approached Insurance company/Agent

Company/agent approached customer


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Whereas, 55.5% of the respondents were approached by

the Company /Agent.

DATA SHOWS REASONS BEHIND FOR

INSURANCE

RESPONSE NO. OF

RESPONDENT

S

SHARE (%)

Tax saving 80 80%

Saving / Investment 80 80.%

Family protection 100 100%

INTERPRETATION

59

80

100

80

Slice 1 Slice 2 Slice 3


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80.71% of the Respondents opted for Insurance for tax

saving benefits.

80.71% of the Respondents opted for saving /

Investments.

But all of them, i.e. 100% of the respondents have opted

for insurance for their family protection.

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DATA SHOWS SATISFACTION OF

RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

60% of the respondents are more or less satisfied with

their existing policy.

61

0%

40%

60%

Satisfied Not satisfied Not Responded


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40% of the respondents are not satisfied with their

existing policy.

In this case all of those who have taken a policy have

responded.

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DATA SHOWS SATISFACTION OF

+RESPONDENTS WITH RESPECT TO SERVICE

AGENT

RESPONSE NO. OF

RESPONDEN

TS

SHARE

(%)

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

63

55.00%45.00%

Satisfied Not satisfied


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45% of the respondents are satisfied with their existing

service agent.

55% of the respondents are not satisfied with their

existing insurance agent.

All of those who have taken a policy have responded.

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DATA SHOWS NUMBER OF RESPONDENTS

PAYING TAX

RESPONSE NO. OF

RESPONDENTS

SHARE

(%)

Paying tax 100 100%

Not paying tax - 0%

Total 100 100%

INTERPRETATION

Of the sample size of 400 respondents, all the respondents

are paying tax.

65

0%

100%

Paying tax Not paying tax


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DATA SHOWS RESPONDENTS INVESTMENTS

FOR TAX SAVING

INVESTMENTS NO. OF

RESPONDENT

S

SHARE (%)

LIC 51 51%

NSC 33 33%

Bonds 32 32%

PPF 25 25%PF 21 21%

EPF 11 11%

INTERPRETATION

66

33

32

25

2151

LIC NSC BOND PPF PF EPF


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51% of the respondents save their tax by investing in LIC,

which is the highest among all Investment. This shows that

most people for getting taxes benefits invest in LIC.

33.25% of the respondents do their tax saving by

investing in NSC.

32.25% of the respondents to their tax saving by investing

in bonds.

DATA SHOWS RESPONDENTS PERCEPTION

ABOUT BEST FORM OF INVESTMENT FOR

SECURING THEIR FUTURE

NO. OF

RESPONDEN

TS

SHARE (%)

Fixed Assets 75 75%

Bank deposits 11 11%

Jewellery 25 25%

Securities i.e. bonds, MFs 40. 40%

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Shares 10 10%

Insurance 70 70%

INTERPRETATION

75.25% of the respondents as with the view that Fixed

Assets is the best form of investment for securing their future.

70.5% of the respondents are with the perception that

Insurance is the best form of investment for securing their

future, which is one of the highest and this shows that insurance

is an important key for securing your future.

DATA SHOWS WHAT PEOPLE INTENT TO GAIN

FROM THEIR INVESTMENT

68

11

2540

10

7075

Fixed Assets

Bank deposits

Cash &

JewellerySecurities i.e.

bonds, MFsShares

Insurance


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RESPONSE NO. OF

RESPONDEN

TS

SHARE (%)

Saving & Returns 100 100%Security 90 90%

Tax benefits 71. 71.%

INTERPRETATION

100% of the respondents intent to gain saving and returns

from their investment.

69

90

71

100

Saving & Returns Security Tax benefits


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90% of the respondents intent to gain security from their

investments.

Whereas, 71.75% of the respondents intent to gain tax

benefits from their investments.

DATA GIVES PEOPLES PERCEPTION ON

APPROPRIATE AGE FOR BUYING INSURANCE

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

After 25 years 29 29%

After 35 years 10 10%

After 45 years 0 0%

Anytime 60 60%

70


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DATA SHOWS PEOPLE OPINION ABOUT INDIAN

INSURANCE COMPANIES

RESPONSE NO. OF

RESPONDENT

S

SHARE (%)

Rigid plans 67 67%

Non user friendly 29 29%

Unsatisfactory services 26 26%

Non Aggressive 35 35%Satisfactory 24 24%

Good 10 10%

Very good 0 0%

72

2926

24

10 0

Inflexible plans Non user friendlyUnsatisfactory services Non AggressiveSatisfactory GoodVery good


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INTERPRETATION

67% of the respondents have the opinion that Indian

Insurance Companies have Rigid plans.

29.5% feel that Indian Insurance companies are Non-user

friendly.

26.5% feel that services of Indian Insurance companies

are Unsatisfactory.

35.75% of the respondents are with the view that Indian

Insurance companies are Non-aggressive.

24% of the respondents feel that products and services of

Indian Insurance companies is Satisfactory.

Whereas only 10.25% feel that it is Good enough.

And according to the data, no single person has felt that it

is very good.

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DATA SHOWS WHAT PEOPLE WOULD LOOK

FOR IN AN INSURANCE COMPANY

RESPONSE NO. OF

RESPONDE

NTS

SHARE

(%)

A trusted name 82 82%

Friendly service &responsiveness

71 71%

Good plans 81 81%

Accessibility 49 49%

74

71

81

49

82

A trusted name

Friendly service & responsiveness

Good plans

Accessibility


75/94

INTERPRETATION

82% customers look for a Trusted name in a company for

insurance.

81.5% customers look for a good plan in a company for

insurance.

Friendly service & responsiveness and Accessibility are

also important factors looked by customers in a company.

DATA SHOWS PEOPLE PLANNING FOR NEW

INVESTMENTS

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Planning 87 87%

Not planning 13 13%

Total 100 100%

75


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INTERPRETATION

Only 12.5% of the customers contacted are not planning

for new investments presently.

Whereas, 87.5% of the customers are still planning for

new investments this can be a great potential for Reliance Life

Insurance to take them on their favor.

76

87.0%

13.0%

Planning Not planning


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DATA SHOWS PEOPLE INTERESTED IN GOING

FOR INSURANCE IF A SERVICE PROVIDER AWAY

FROM THE CITY OFFERS BETTER SERVICE &

PRODUCTS

RESPONSE NO. OF

RESPONDEN

TS

SHARE (%)

Yes 43 43%

No 44 44%

Uncertain 13 13%

Total 100 100%

INTERPRETATION

77

43%

44%

13%

Yes No Uncertain


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The interested customers i.e. 43% are ready to go for insurance

even away from a city if services and products are worthwhile,

which again is a good prospect (potential) for Reliance LifeInsurance to take them on their favor.

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CHAPTER VI

CONCLUSION

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CONCLUSION

Our exhaustive research in the field of Life Insurance threw up

some interesting trends which can be seen in the above analysis. A

general impression that we gathered during Data collection was the

immense awareness and knowledge among people about various

companies and their insurance products. People are beginning to

look beyond LIC for their insurance needs and are willing to trust

private players with their hard earned money.

People in general have been impression by the marketing and

advertising campaigns of insurance companies. A high penetration

of print , radio and Television ad campaigns over the years is

beginning to have its impact now.

The general satisfaction levels among public with regards to policy

and agents still requires improvement. But therein lays the

opportunity for a relative new comer like ING. LIC has never been

known for prompt service or customer oriented methods and

Reliance can build on these factors.

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CHAPTER VII

SUGGESTION

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Suggestion

According the survey only 42% people are insured in

Bareilly so reaming other part is potential for insurance

sector.

Among that 42% people who having insurance, they

have insurance 40% for self 28%for spouse 21% for

children and 18% for their parents and 11% for all

family member, also its very help full for insurance

sector so they should take necessary step for capture

this potential.

Only 42% people having insurance in Bareilly in that

42% there are 82 % people are under insured and other

18% people are fully insured according to their incomeso that is also plus point for insurance sector to capture

the market

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CHAPTER VIII

QUESTIONNAIRE

83


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QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH COS INSURANCE POLICY YOU PREFER THE

MOST? (RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. FOR HOW MANY YEARS DO YOU HAVE

INSURANCE POLICY? (Please Tick)

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a)


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a)


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16.WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS

b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, i.e. Bonds, MFs

e) SHARES

f) INSURANCE

88


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17. WHAT DO YOU INTENT TO GAIN FROM

INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENIFITS

18. WHATS THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs

b) AFTER 35 Yrs

c) AFTER 45 Yrs

d) ANYTIME

19.

HOW WOULD YOU RATE INDIAN INSURANCECOs?

a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

e) SATISFACTORY

f) GOOD

89


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CHAPTER IX

BIBLIOGRAPHY

92


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BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFFERED:

STUDY GUIDE- PRINCILES & PRACTICES OF LIFE /

GENERALINSURANCE, by AIMA.

Books published by INSURANCE INSTITUTE OF

INDIA

LIFE-INSURANCE, by Mc GILL

INSURANCEWATCH.

MONEYOUTLOOK.

2. WEBSITES REFFERED:

WWW.RELIANCELIFE.CO.IN

WWW.

CIFAINSURANCE.COM

WWW.

MONEYOUTLOOK.COM

WWW.

INSURANCE.IND.COM

3. REPORTS/ARTICLES REFFERED:

93
http://www.cifainsurance.com/http://www.cifainsurance.com/http://www.moneyoutlook.com/http://www.moneyoutlook.com/http://www.insurance.ind.com/http://www.insurance.ind.com/http://www.cifainsurance.com/http://www.cifainsurance.com/http://www.moneyoutlook.com/http://www.moneyoutlook.com/http://www.insurance.ind.com/http://www.insurance.ind.com/


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REPORT: ISSUES & CHALLENGES FACING THE

INSURANCE INDUSTRY. Dec2005.

BRIEF PROFILE OF LIC, INDIADec 2006.

Documents

30879932 Reliance Life Insurance