t Reliance Life Insurance

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A SUMMER TRAINING REPORT

ON

“ANALYSIS OF COSTUMER PREFRENCES TOWARDS

RELIANCE LIFE INSURANCE ”

A study conducted in

(RELIANCE LIFE INSURANCE COMPANY)

Submitted in partial fulfillment of requirement of degree of master of business

administration (M.B.A) kurukshetra university kurukshetra

Project Super!"or #$ SU%MITTED %Y#$

Mr"& SING'

Assistant professor

MBA

DEPARTMENT OF MANAGMENT

1



CONTENTS

S&NO PARTICULARS PAGE NO

&

C'APTER

INTRODUCTION

L!*e !+"ur,+ce co-p,+.

Re/!,+ce /!*e !+"ur,+ce

Pre*ere+ce" re0,r1!+0 !+"ur,+ce co&

2 C'APTER 2

Re"e,rc3 Met3o1o/o0.

O4ject!e o* "tu1.

Re"e,rc3 De"!0+

Scope o* "tu1.

D,t, co//ect!o+

L!-!t,t!o+ o* "tu1.

5 C'APTER 5

A+,/."!" 6 !+terpret,t!o+

7 C'APTER $ 7

F!+1!+0"

Co+c/u"!o+

Su00e"t!o+"

8

%!4/!o0r,p3.

Appe+1!9

2



C'APTER No&

I+tro1uct!o+

Life is full of risk and uncertainties. Since e are the social human being e have certain

responsibilities too. !ndian consumers have big influence of emotions and rationality on

their buying decisions. "hey believe in future rather than the present and desire to have a

better and secured future# in this direction life insurance services have its on value in

terms of minimi$ing risk and uncertainties. !ndian economy is developing and having

huge middle class societal status and salaried persons. "heir money value for current

needs and future desires here the pendulum moves to another side hich generate

the reasons behind holding a policy. %ere the attempt has been made in this

research paper to study the buying behaviour of consumers toards life insurance

services. Life insurance is one of the best knon insurance products today. &eople

buy these products as investment tools and also as protection for themselves and their

families. All the insurance companies the orld over are looking at attracting the

eye balls of customer and positioning their solutions innovatively to cater to niche

and specific markets. 'ne of the most critical aspects both from the vie point of

the customer and the insurer is getting important and relevant leads that can bebeneficial for both.

3



'!"tor. o* I+"ur,+ce I+1u"tr.

'!"tor. o* !+"ur,+ce "ector !+ I+1!,

!n !ndia# insurance has a deeprooted history. !t finds mention in the ritings of Manu (

Manusmrithi )# agnavalkya ( Dharmasastra ) and *autilya ( Arthasastra ). "he ritings

talk in terms of pooling of resources that could be redistributed in times of calamities

such as fire# floods# epidemics and famine. "his as probably a precursor to modern

day insurance. Ancient !ndian history has preserved the earliest traces of insurance in

the form of marine trade loans and carriers+ contracts. !nsurance in !ndia has evolved

over time heavily draing from other countries# ,ngland in particular.

-- sa the ,1e+t o* /!*e !+"ur,+ce 4u"!+e"" !+ I+1!, ith the establishment of the

'riental Life !nsurance /ompany in /alcutta. "his /ompany hoever failed in -01. !n

-23# the Madras ,quitable had begun transacting life insurance business in the Madras

&residency. -45 sa the enactment of the British !nsurance Act and in the last threedecades of the nineteenth century# the Bombay Mutual (-4-)# 'riental (-41) and

,mpire of !ndia (-34) ere started in the Bombay 6esidency. "his era# hoever# as

dominated by foreign insurance offices hich did good business in !ndia# namely Albert

Life Assurance# 6oyal !nsurance# Liverpool and London 7lobe !nsurance and the !ndian

offices ere up for hard competition from the foreign companies.

!n -3-1# the 7overnment of !ndia started publishing returns of !nsurance /ompanies in

!ndia. "he !ndian Life Assurance /ompanies Act# -3-2 as the first statutory measure to

4



regulate life business. !n -32# the !ndian !nsurance /ompanies Act as enacted to

enable the 7overnment to collect statistical information about both life and nonlife

business transacted in !ndia by !ndian and foreign insurers including provident insurance

societies. !n -30# ith a vie to protecting the interest of the !nsurance public# the

earlier legislation as consolidated and amended by the !nsurance Act# -30 ith

comprehensive provisions for effective control over the activities of insurers.

"he !nsurance Amendment Act of -385 abolished &rincipal Agencies. %oever# there

ere a large number of insurance companies and the level of competition as high.

"here ere also allegations of unfair trade practices. "he 7overnment of !ndia# therefore#

decided to nationali$e insurance business.

An 'rdinance as issued on -3th 9anuary# -38: nationalising the Life !nsurance sector

and Life !nsurance /orporation came into e;istence in the same year. "he L!/ absorbed

-81 !ndian# -: non!ndian insurers as also 48 provident societies<218 !ndian and

foreign insurers in all. "he L!/ had monopoly till the late 35s hen the !nsurance sector

as reopened to the private sector.

"he 3!"tor. o* 0e+er,/ !+"ur,+ce 1,te" back to the !ndustrial 6evolution in the est

and the consequent groth of seafaring trade and commerce in the -4th

century. !t cameto !ndia as a legacy of British occupation. 7eneral !nsurance in !ndia has its roots in the

establishment of "riton !nsurance /ompany Ltd.# in the year -85 in /alcutta by the

British. !n -354# the !ndian Mercantile !nsurance Ltd# as set up. "his as the first

company to transact all classes of general insurance business. -384 sa the formation

of the 7eneral !nsurance /ouncil# a ing of the !nsurance Associaton of !ndia. "he

7eneral !nsurance /ouncil framed a code of conduct for ensuring fair conduct and sound

business practices.

!n -3:# the !nsurance Act as amended to regulate investments and set minimum

solvency margins. "he "ariff Advisory /ommittee as also set up then.

!n -342 ith the passing of the 7eneral !nsurance Business (=ationalisation) Act# general

insurance business as nationali$ed ith effect from - st 9anuary# -340. -54 insurers

ere amalgamated and grouped into four companies# namely =ational !nsurance

/ompany Ltd.# the =e !ndia Assurance /ompany Ltd.# the 'riental !nsurance /ompany

Ltd and the >nited !ndia !nsurance /ompany Ltd. "he 7eneral !nsurance /orporation of

5



!ndia as incorporated as a company in -34- and it commence business on 9anuary

-sst -340.

"his millennium has seen insurance come a full circle in a ?ourney e;tending to nearly

255 years. "he process of re$ope+!+0 o* t3e "ector had begun in the early -335sand the last decade and more has seen it been opened up substantially. !n -330# the

7overnment set up a committee under the chairmanship of 6= Malhotra# former

7overnor of 6B!# to propose recommendations for reforms in the insurance sector."he

ob?ective as to complement the reforms initiated in the financial sector. "he committee

submitted its report in -331 herein # among other things# it recommended that the

private sector be permitted to enter the insurance industry. "hey stated that foreign

companies be alloed to enter by floating !ndian companies# preferably a ?oint ventureith !ndian partners.

@olloing the recommendations of the Malhotra /ommittee report# in -333# the

!nsurance 6egulatory and evelopment Authority (!6A) as constituted as an

autonomous body to regulate and develop the insurance industry. "he !6A as

incorporated as a statutory body in April# 2555. "he key ob?ectives of the !6A include

promotion of competition so as to enhance customer satisfaction through increased

consumer choice and loer premiums# hile ensuring the financial security of the

insurance market.

"he !6A opened up the market in August 2555 ith the invitation for application for

registrations. @oreign companies ere alloed onership of up to 2:. "he Authority

has the poer to frame regulations under Section --1A of the !nsurance Act# -30 and

has from 2555 onards framed various regulations ranging from registration of

companies for carrying on insurance business to protection of policyholders+ interests.

!n ecember# 2555# the subsidiaries of the 7eneral !nsurance /orporation of !ndia ere

restructured as independent companies and at the same time 7!/ as converted into a

national reinsurer. &arliament passed a bill delinking the four subsidiaries from 7!/ in

9uly# 2552.

"he !+"ur,+ce "ector !" , co/o"",/ o+e and is groing at a speedy rate of -825.

"ogether ith banking services# insurance services add about 4 to the country+s 7&. A

elldeveloped and evolved insurance sector is a boon for economic development as it

6



provides long term funds for infrastructure development at the same time strengthening

the risk taking ability of the country.

"racing the developments in the !ndian insurance sector reveals the 0:5degree turn

itnessed over a period of almost -35 years.

"he business of life insurance in !ndia in its e;isting form started in !ndia in the year --

ith the establishment of the 'riental Life

Life insurance company in /alcutta.

So-e o* t3e !-port,+t -!/e"to+e" !+ t3e /!*e !+"ur,+ce 4u"!+e"" !+ I+1!, ,re#

:2 $ "he !ndian Life Assurance /ompanies Act enacted as the first statute to regulate

the life insurance business.

:2; $ "he !ndian !nsurance /ompanies Act enacted to enable the government to collect

statistical information about both life and nonlife insurance businesses.

:5; $ ,arlier legislation consolidated and amended to by the !nsurance Act ith the

ob?ective of protecting the interests of the insuring public.

:8< $ 218 !ndian and foreign insurers and provident societies taken over by the central

government and nationali$ed. L!/ formed by an Act of &arliament# vi$. L!/ Act# -38:#

ith a capital contribution of 6s. 8 crore from the 7overnment of !ndia.

"he 7eneral insurance business in !ndia# on the other hand# can trace its roots to the

"riton !nsurance /ompany Ltd.# the first general insurance company established in the

year -85 in /alcutta by the British.

7



I+"ur,+ce Re0u/,tor. ,+1 Dee/op-e+t Aut3or!t.(IRDA)

"he I+"ur,+ce Re0u/,tor. ,+1 Dee/op-e+t Aut3or!t. (!6A) is a national agency of the 7overnment of !ndia based in %yderabad. !t as formed by an act of !ndian

&arliament knon as !6A Act -333# hich as amended in 2552 to incorporate some

emerging requirements. Mission of !6A as stated in the act is Cto protect the interests of

the policyholders# to regulate# promote and ensure orderly groth of the insurance

industry and for matters connected thereith or incidental thereto.C

8

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Hyderabad_(India)

http://en.wikipedia.org/wiki/Hyderabad_(India)

http://en.wikipedia.org/wiki/Government_of_India



Co+tr!4ut!o+ to I+1!,+ eco+o-.#$

-. Life insurance is the only sector hich garners long term savings .2. Spread of financial services in rural areas and amongst socially less privileged.0. ,mployment generation.1. Long term fund for infrastructure.8. Strong positive correlation beteen development of capital markets and and

insuranceDpension structure.

RELIANCE LIFE INSURANCE

9



@e men in history have made as dramatic a contribution to their country economyfortunes as did the founder of 6eliance# Shri. hirubhai % Ambani . feer still have leftbehind legends that is more enduring and timeless.

As ith great pioneers there is more than one unique ay of describing the true genius

of hirubhai. "he corporate visionary # the unmatched strategist# the proud patriot theleader of men# the architect of !ndia capital markets the champion of shareholder interest.

But the role hiruhai cherished most as perhaps that of !ndia+s greatest ealth creatorin one lifetime he built starting from the proverbial scratch !ndia+s largest private sectorenterprise.

hirubhai is idely regarded as the father of !ndia capital markets. !n -344 hen reliancete;tile industries limited first ent public the !ndian stock market as a place patronisedby a small club of elite investor hich dabbled in a handful of stocks.>ndaunted dhirubhai managed to convince a large number of first time retail investor to

participate in the unfolding reliance story and put their hard earned money in the6eliance "e;tile !&'# promising them in e;change for their trust# substantial return ontheir investment gain in the !ndian markets.

>nder hirubhai e;traordinary vision and leadership reliance scripted one of the greatestgroth stories in corporate history anyhere in the orld and ent on to becomes !ndialargest private sector enterprise.

"hrough out this ama$ing ?ourney hiubhai alays kept the interest of the ordinaryshareholders uppermost in the mind in process making millionaires out of many of theinitial investors in the reliance stock and creating one of the orld largest shareholderfamilies.

CAREER OF RELAINCE

Co-p,+. 4e/!e*

Ee believe that you are the force behind the company. And ith your groth ill comethe drive that can take this company to higher and strongly levels. /reating a huge aveof satisfaction not only for our customer and us but for your career.

W3. u"=Ehatever your career goal reliance life insurance is a company big enough fro yourdreams. Ee along ith other businesses or reliance capital en?oy strong position in thefinancial services category# and this may be the place here you can have the careeryou alays anted. Ee endeavour to be unique in creating an environment that makepitting your skill against that bigger the challenging that e set for ourselves the higherthey ill take us. And finding resonance ith this credo is everincrease.

Re/!,+ce L!*e I+"ur,+ce Co-p,+. L!-!te1 is a part of reliance capital Ltd of thereliance Anil hirubhai Ambani 7roup. 'f the reliance Anil hirubhai Ambani 7roup6eliance Life insurance another step toards for reliance capital limited to offer need

based life insurance solutions to individuals and corporate reliance /apital Ltd is one ofindia leading and fastest groing private sector financial services companies and ranks

10



among the top 0 private sector financial services and banking life and general insuranceprivate equity and proprietary investments stock broking and other financial services.

>!"!o+

,mpoering everyone live their dreams.

M!""!o+

/reate unmatched value for everyone through dependable# effective# transparent and

profitable life insurance and pension plans.

Our Go,/

6eliance Life !nsurance ould strive hard to achieve the 0 goals mentioned beloF

-. ,merge as transnational Life !nsurer of global scale and standard.2. /reate best value for /ustomers# Shareholders and all Stake holders.0. Achieve impeccable reputation and credentials through best business practices.

Achievements

-. Largest private Life insurance in terms of number of policies for to consecutive

years as of 0- march 25-2.2. A ide netork of -205 branches and -#85#555 advisors.0. 'ver 3 million policies.1. Einner of GBest =on>rban coverageH Aard at !ndian !nsurance Aard 25--.8. Amongst the top 0 most trusted services brands n the insurance category as per

the brand equity most trusted services brands 25-- survey.:. 6L!/ continues to be the foremost life insurance companies in !ndia to be certified

!S' 355F255-.

I+"ur,+ce co-p,+!e" !+ I+1!,

%!r/, "u+ L!*e I+"ur,+ce Co& Lt1&

11



'DFC L!*e I+"ur,+ce Co& Lt1&

ICICI L!*e I+"ur,+ce Co& Lt1&

ING >."., L!*e I+"ur,+ce Co& Lt1&

L!*e !+"ur,+ce corpor,t!o+ o* I+1!,&

M,9 Ne? Yor@ L!*e I+"ur,+ce Co& Lt1&

S%I L!*e I+"ur,+ce Co& Lt1&

ot,@ M,3!+1r, o/1 -utu,/&

TATA AIG L!*e I+"ur,+ce Co& Lt1&

Re/!,+ce L!*e I+"ur,+ce Co& Lt1&

%3,rt! ABA /!*e !+"ur,+ce&

Future 0e+er,/ /!*e !+"ur,+ce&

ID%I Fort!" /!*e !+"ur,+ce&

Re/!0,re /!*e !+"ur,+ce&

C3o/,-,+1,/,- MS Ge+er,/ !+"ur,+ce&

S3r!r,- /!*e !+"ur,+ce Co Lt1&

S,3,r, I+1!, /!*e !+"ur,+ce&

DLF Pr,-er!c, L!*e !+"ur,+ce&

Apo//o D> !+"ur,+ce&

ICICI Lo-4,r1 0e+er,/ !+"ur,+ce&

12



I+"ur,+ce

!nsurance may be described as a social device to reduce or eliminate risk of lossto life and property. !nsurance is a collective bearing of risk. !nsurance spreads the risks

and losses of fe people among a large number of people as people prefer small

fi;ed liability instead of big uncertain and changing liability. !nsurance is a scheme of

economic cooperation by hich members of the community share the unavoidable risks.

!nsurance can be defined as a legal contract beteen to parties hereby one party

called !nsurer undertakes to pay a fi;ed amount of money on the happening of a

particular event# hich may be certain or uncertain. "he other party called !nsure or !nsurant pays in e;change a fi;ed sum knon as premium. "he insurer and the

13



insurant are also knon as Assurer or >nderriter and Assurant# respectively. "he

document hich embodies the contract is called the policy.

St,0e" !+ /!*e !+"ur,+ce

& Propo",/ A proposal stage is the first stage before the policy is issued at /'&S. At this

stage the application from is received by /'&S but it us pending for insurance

due to further clarification from the customer.2& Lo0!+

A proposal hich is complete duly filled ith all necessary documents attached to

it I accepted by the branch office is called login.5& Reject

An application gets re?ected at the branch ops level due to necessary details notfilled in the form or necessary documents not submitted is re?ect it is them sent

back to the advisor for completion.7& I""u,+ce

!ssuance means a policy that is issued to the customer by central operations.8& Dec/!+e "t,tu"

Ehen a customer refuses to take a policy post login but before issuance is called

a decline<& C,+ce//,t!o+

Ehen the cheque given by the customer bounces it amounts to cancelation of the

policy.& L,p"e

A policy for hich the customer fails to pay premiums is a lapsed policy.;& Free/oo@

&ost issuance of the policy the policyholder has the option to turn over the policy

ithin -8 days from the date of issuance. "his period of -8 days is called freelook

period.

PRODUCTS POLICIES

6eliance Life !nsurance has a ide array of insurance plans that have been designed

ith the philosophy that different individuals are bound to have differing insurance needs.

"he ideal insurance plan is one that addresses the e;act insurance needs of the

individual that ill depend on the age and life stage of the individual apart of the host of

other factors.

LIFE INSURANCE PLANS#

14



>nder Life insurance plans# 6eliance Life !nsurance offers plans under the folloing

ma?or categoriesF

-. ,ducation !nsurance &lans

2. Eealth creation &lans0. &remium 7uarantee &lans

1. &rotection &lans

S,!+0 6 I+e"t-e+t p/,+"

Ee all carry dreams in our lives. ou can reali$e these dreams by investing in a plan that

orks as hard as you.

!n life# you have alays given your family hatever they have anted. et# there aresome promises you have to fulfil# such as taking your family for a vacation# or buying that

dream house.

Set aside some money to achieve these specific goals ith the help of 6eliance Savings

I !nvestment &lans. "he plan allos you to e;perience the ?oys of life and provide for

your familyJs needs.

,n?oy life ithout orrying about the promises you have made<e are here to fulfil

them.

Re/!,+ce L!*e I+"ur,+ce S-,rt M,tur!t. %e+e*!t P/,+&

Re/!,+ce L!*e I+"ur,+ce Super E+1o?-e+t P/,+&

Re/!,+ce L!*e I+"ur,+ce Gu,r,+tee1 Mo+e. %,c@ P/,+&

Re/!,+ce L!*e I+"ur,+ce Mo+e. Mu/t!p/!er P/,+&

Re/!,+ce C,"3 F/o? P/,+&

Re/!,+ce E+1o?-e+t P/,+&

Re/!,+ce Super F!e P/u"&

Re/!,+ce W3o/e L!*e P/,+&

Re/!,+ce Co++ect 2 L!*e P/,+&

15



RETIREMENT SOLUTIONS#

"he primary ob?ective of retirement plan is to help you provide for your financial needs in

your post retirement years.

-. @orever Life

2. Life "ime Super &ension

0. Life Link Super &ension

'EALT' PRODUCT SUIT#

>nder %ealth &roduct Suit# 6eliance Life !nsurance offers plans under the folloing

ma?or categoriesF

-. %ealth Assure

2. %ealth Assure &lus

0. %ospital /are

1. /ancer /are

8. /ancer /are &lus

:. iabetes /are4. iabetes /are &lus

I+"ur,+ce So/ut!o+" *or I+1!!1u,/"

Re/!,+ce L!*e I+"ur,+ce L!*e I+"ur,+ce offers a range of innovative# customercentric

products that meet the needs of customers at every life stage. !ts products can be

enhanced ith up to 1 riders# to create a customi$ed solution for each policyholder.

16



S,!+0" 6 We,/t3 Cre,t!o+ So/ut!o+"

&S,e+Protect is a traditional endoment savings plan that offers life protection along

ith adequate returns.

2&C,"3%,@ is an anticipated endoment policy ideal for meeting milestone e;penses like

a childJs marriage# e;penses for a childJs higher education or purchase of an asset. !t is

available for terms of -8 and 25 years.

!& L!*e T!-e Go/1 is a unitlinked plan that offers customers the fle;ibility and control to

customi$e the policy to meet the changing needs at different life stages. !t offers 4

fund options $ Pre"erer Protector %,/,+cer F/e9! %,/,+ce1 Mu/t!p/!er R&I&C&'

and F/e9! Gro?t3&

ii. L!*e St,0e RP is unit linked plan that provides you ith an option of lifecyclebased

portfolio strategy that continuously redistributes your money across various asset

classes based on your life stage. "his ill help you achieve the right Asset Allocation

to meet your desired financial goals.

!!!& L!*e L!+@ Super is a single premium unit linked insurance plan hich combines life

insurance cover ith the opportunity to stay invested in the stock market.

!& Pre-!er L!*e Go/1 is a limited premium paying plan specially structured for longterm

ealth creation.

v. I+e"t S3!e/1 L!*e Ne? is a unit linked plan that provides premium guarantee on the

invested premiums and ensures that the customer receives only the benefits of fund

appreciation ithout any of the risks of depreciation.

vi. I+e"t S3!e/1 C,"3 4,c@ is a unit linked plan that provides premium guarantee on

the invested premiums along ith fle;ible liquidity options.

vii. L!*e St,0e RP is a unique and poerful ealth creation insurance solution# hich

combines the benefits of automatic asset allocation and quarterly rebalancing along

ith increased protection.

Protect!o+ So/ut!o+"

17



i. L!*e Gu,r1 is a protection plan# hich offers life cover at lo cost. !t is available in 0

options level term assurance# level term assurance ith return of premium I single

premium.

ii. 'o-e A""ure is a mortgage reducing term assurance plan designed specifically to

help customers cover their home loans in a simple and costeffective manner.

E1uc,t!o+ So/ut!o+"

i. S-,rt !1 Ne? ULRP provides guaranteed educational benefits to a child along ith

life insurance cover for the parent ho purchases the policy. "he policy is designed to

provide money at important milestones in the childJs life. Smart*id plans are also

available in traditional form.

Ret!re-e+t So/ut!o+"

& Foreer L!*e is a traditional retirement product that offers guaranteed returns for the

first 1 years and then declares bonuses annually.

2& L!*e T!-e Super Pe+"!o+ is a regular premium unit linked pension plan that helps one

accumulate over the long term and offers 8 annuity options (life annuity# life annuity ith

return of purchase price# ?oint life last survivor annuity ith return of purchase price# life

annuity guaranteed for 8# -5 and -8 years I for life thereafter# ?oint life# last survivor

annuity ithout return of purchase price) at the time of retirement.

i. L!*e St,0e Pe+"!o+ is a regular premium unit linked pension plan that provides

you ith a unique lifecyclebased strategy that continuously redistributes your

money across various asset classes based on your life stage# eventually providing

you ith a customi$ed retirement solution.

ii. L!*e L!+@ Super Pe+"!o+ is a single premium unit linked pension plan.

!!!& I--e1!,te A++u!t. is a single premium annuity product that guarantees income

for life at the time of retirement. !t offers the benefit of 8 payout options.

18



!& Pre-!erL!*e Pe+"!o+ is a unique and convenient retirement solution ith a limited

premium paying term of three or five years# to suit professionals and

businessmen# especially those ho require more fle;ibility and customi$ation

hile planning their finances.

'e,/t3 So/ut!o+"

'e,/t3 A""ure P/u"# %ealth Assure is a regular premium plan hich provides long

term cover against : critical illnesses by providing policyholder ith financial

assistance# irrespective of the actual medical e;penses. %ealth Assure &lus offers the

added advantage of an equivalent life insurance cover.

!& C,+cer C,re# is a regular premium plan that pays cash benefit on the diagnosis

as ell as at different stages in the treatment of various cancer conditions.

!!& C,+cer C,re P/u"# is a ellness plan that includes all the benefits of /ancer /are

and also provides an additional benefit of free periodical cancer screenings.

!!!& D!,4ete" C,re# iabetes /are is a unique critical illness product specially

developed for individuals ith "ype 2 diabetes and prediabetes. !t makes

payments on diagnosis on any of : diabetes related critical illnesses# and also

offers a coordinated care approach to managing the condition. D!,4ete" C,re

P/u" also offers life cover.

!& D!,4ete" C,re P/u"# is a unique insurance policy that provides an additional

benefit of life cover for T.pe 2 1!,4et!c" ,+1 pre$1!,4et!c"

v. 'o"p!t,/ C,re# is a *!9e1 4e+e*!t p/,+ covering various stages of treatment $

3o"p!t,/!,t!o+ ICU proce1ure" 6 recuper,t!+0 ,//o?,+ce. !t covers a range

of -e1!c,/ co+1!t!o+" (: "ur0er!e") and has , /o+0 ter- 0u,r,+tee1

coer,0e upto 25 years.

!& Cr!"!" Coer# is a 0:5degree product that ill provide longterm coverage

against 08 critical illnesses# total and permanent disability# and death.

Group I+"ur,+ce So/ut!o+"

19



Re/!,+ce L!*e I+"ur,+ce L!*e also offers 7roup !nsurance Solutions for companies

seeking to enhance benefits to their employees.

-. Group Gr,tu!t. P/,+# Re/!,+ce L!*e I+"ur,+ce L!*e" group gratuity plan helps

employers fund their statutory gratuity obligation in a scientific manner and also avail

of ta; benefits as applicable to approved gratuity funds.

2. Group Super,++u,t!o+ P/,+# 6eliance Life !nsurance Life offers a fle;ible market

linked scheme that provides substantial benefits to both employers and employees.

Both defined contribution (/) and defined benefit (B) schemes are offered to

optimi$e returns for members of the trust and rationali$e cost. Members have the

option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.

i. Group I--e1!,te A++u!t!e"# 6eliance Life !nsurance Life reali$es the importance of

prudent retirement planning. Eith this in mind# e have developed a suite of annuity

products that not only give you an income for life but also provide you options to

match your needs. !n addition to the annuities offered to e;isting superannuation

customers# e offer immediate annuities to superannuation funds not managed by us.

ii. Group Ter- P/,+# 6eliance Life !nsurance LifeJs fle;ible group term solution helps

provide an affordable cover to members of a group. "he cover could be uniform or

based on designationDrank or a multiple of salary. "he benefit under the policy is paid

to the beneficiary nominated by the member on hisDher death.

F/e9!4/e R!1er Opt!o+"

Re/!,+ce L!*e I+"ur,+ce L!*e offers fle;ible riders# hich can be added to the basic

policy at a marginal cost# depending on the specific needs of the customer.

& Acc!1e+t 6 1!",4!/!t. 4e+e*!t# !f death occurs as the result of an accident during the

term of the policy# the beneficiary receives an additional amount equal to the rider

20



sum assured under the policy. !f an accident results in total and permanent disability#

-5 of rider sum assured ill be paid each year# from the end of the -st year after the

disability date for the remainder of the base policy term or -5 years# hichever is

lesser. !f the death occurs hile traveling in an authori$ed mass transport vehicle# the

beneficiary ill be entitled to tice the sum assured as additional benefit.

2. Cr!t!c,/ I//+e"" %e+e*!t# protects the insured against financial loss in the event of 3

specified critical illnesses. Benefits are payable to the insured for medical e;penses

prior to death

5& W,!er o* Pre-!u-# !n case of total and permanent disability due to an accident# the

future premiums continue to be paid by the company till the time of maturity. "his rider

is available ith S-,rt!1 L!*eT!-e P/u" L!*eT!-e Super and L!*eT!-e Super

Pe+"!o+&

7& I+co-e 4e+e*!t r!1er# !n case of death of the life assured during the term of the

policy# -5 of the sum assured is paid annually to the nominee on each policy

anniversary till the maturity of the rider.

8& W,er o* pre-!u-# !n case of total and permanent disability due to an accident. "he

premium are aived till maturity. "his rider is available ith secure plans and cash

plans.

So-e p/,+" ?!t3 1et,!/

CAS' %AC

21



W3o c,+ ,pp/.=

!f you are -: year old and not older than 88 years# the minimum sum is 6s. 48#555. ou

have the option of paying yearly# halfyearly and also monthly premium.

De,t3 4e+e*!t#

Sum assured K guaranteed additions (7A 0.8 compound annually on SA for the 1

years) K vested bonus (B)

M,tur!t. 4e+e*!t#

85 of sum assured guaranteed additions for four years K B ob entire sum assured.

Sur!,/ 4e+e*!t#

At t3e e+1 o*

t3e .e,r

S%AS H o* S&S& E+1 o* t3e

.e,r"

S%AS H o* S&S&

5 H 7 H

< 8H ; 8H

: 2H 2 2H

2 28H < 28H

M,tur!t. 8HGA>% M,tur!t. 8HGA>%

A11!t!o+,/ *e,ture"#

22



@or protection to your family against unfortunate health# ha$ards or eventuality# e offer

you the folloings ridersF

-. /ritical illness 6iders

2. Ma?or surgical 6iders

0. Accident I isability benefit

1. accident benefit 6iders

Ge+er,/ *e,ture"#

Surre+1er$ after 0 policy years# you get certain amount on surrender of the policy.

SMART ID

W3o c,+ ,pp/.=

!f you are a parent+s aged beteen 25 I :5 years ith children in the age group of 5 to

-8 years ith minimum sum assured 6s. -#55#555.

De,t3 4e+e*!t#

=ominee get -55 sum assured K profit accrued on the plan till such date K Eavier of

premium

23



Sur!,/ 4e+e*!t#

"his policy pays out money at regular interval coinciding ith important Miles tones in

child+s life. !t has to options for payment.

Opt!o+ #

At t3e e+1 o* C3!/1 A0e P,. out

"erm4 8 years 5 of S.A.



"erm 2 years 5 of S.A.K7AKB

Opt!o+ 2#

At t3e e+1 o* C3!/1 A0e P,. out

"erm1 years 8 of S.A.



"errm- - years 5 of S.A.

24



"erm 2 years 5 of S.A.

R!1er"#

& !ncome benefit riders

2& Accident I isability Benefit riders

5& Accident benefit riders

Ge+er,/ *e,ture"#

Surre+1er# after three policy years have been completed

Te9$4e+e*!t# Sec 5(c) on premium payment Sec -5(-5) benefit on death I maturity

claim.

FORE>ER LIFE PENSION PLAN

W3o c,+ ,pp/.=

!f a person age beteen 25 I :5 year ith minimum term 8 years and ma;imum 05

years.

L!*e coer 4e+e*!t#

25



@orever life pension plan provides life covers during the deferment phase. !n unfortunate

event of the death# the spouse has the option to receive the sum assured ith

guaranteed additions and vested bonuses(if any) as a lump sum or get an annuity that

ould provide a regular income for life.

M,tur!t. 4e+e*!t#

-. Life AnnuityF annuity for life

2. Life annuity ith return of purchase priceF life annuity for the annuitant ith the

return of the purchase price.

0. Life annuity guaranteed for 8# -5# -8 yearsF guaranteed annuity paid for chosen

term and after that the annuity as long as the annuitant is alive.

1. 9oint life# last survivor ith return of purchase priceF in this case# the annuity is first

paid to annuitant. After the death of annuitant# the spouse starts getting a pension#

hich is an amount that equal to the annuity paid to the annuitant. After the death

of last survivor# the purchase price is return to the beneficiary.

O4ject!e" o* L!*e I+"ur,+ce

-. "o spread life insurance and provide life insurance protection to the masses at

reasonable cost.2. "o mobili$e peoples savings through insurancelinked savings schemes.0. "o invest the funds to serve the best interests of both the policy holders and the

nation.1. "o conduct business ith ma;imum economy# alays remembering that the

money belongs to the policy holders.8. "o act as trustees of the policy holders and protect their individual and collective

interests.:. "o innovate and adapt to meet the changing life insurance needs of the

community.

26



Cu"to-er pre*ere+ce" ,+1 percept!o+ re0,r1!+0 /!*e !+"ur,+ce

L!*e !+"ur,+ce is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy . ,ssentially a life insurance policy is a contract

beteen the named insured and the insurance and the insurance company herein theinsurance company agrees to pay an agreed upon sum of money to the insuredbeneficiary so long as the insured premiums re currents

Eith a large population and the untapped market area of this population insurancehappen to be a very big opportunity in !ndia. "oday it stands as a business groing at therate of -25 annually. "ogether ith banking services it adds about 4 percent to thecountries is very poor. =early 5 is an indicator that groth potential for the insurancesector is immense in !ndia.

!t as due to this immense groth that the regulations ere introduced in the insurancesector and in continuation H Malhotra /ommittee H as constituted by the government in-330 to e;amine the various aspects of the industry. "he key elements of the reformsprocess as participation of overseas insurance companies ith 2: capital. /reating amore competitive financial system suitable for the requirements of the company as themain idea behind this reform.

Since then the insurance has gone through many changes. "he liberali$ation of theindustry the insurance has never looked back and today stand as one of the mostcompetitive and e;ploring industry in !ndia. "he entry of the private players and the

increased use of the ne distribution are in the limelight today. "he use of nedistribution techniques and !" has increased the scope of the industry in the longer run.

27



!nsurance in the business of providing protection against financial aspect or risk such asthose to property life health and legal liability. !t is one of a great concept knon as riskmanagement hich is the need to manage uncertainty on account if e;posure to loss#in?ury# disadvantage or destruction.

!nsurance is the method of spreading and transfer of risk fortunate ho are e;posed tosome or similar risk shares loss of the unfortunate. !nsurance does not protect the assetbut only compensates the economic or financial loss.

!n insurance the insured makes payments called GpremiumH to an insurer and in return itable to claim a payments from the insurer. !f the insured suffers a defined type of loss.6elationship is usually dran up in a formal legal contract.

!n insurance the insured companies also earn investment profits because they have theuse of the premium money from the time they received it until the time they need it to pay

this money is called the float. Ehen the investment of float are successful they may earnlarge profits# even if the insurance company pays out in claims every penny received aspremiums. !n facts most amount that they pay to policyholder is the cost of the float. Asinsurance company ill profits if they invest this money at a greater return than there of float.

An insurance contract or policy ill set out in detail the e;act circumstances under hich

a benefits payments ill be made and the amount of the premiums.

C/,""!*!c,t!o+ o* !+"ur,+ce#

"he insurance in !ndia can broadly classified in to parts.

-) Life insurance.2) =onlife (7eneral) insurance .

L!*e !+"ur,+ce#

Life insurance can be defined as Nlife insurance provides a sum of money if the person

ho is insured dies hile the policy is in effectH.

!n -- British introduced to !ndia ith the establishment of the oriental life insurance

company in /alcutta. "he first !ndian oned life insurance company the Bombay mutual

life insurance society as set up in -45 the life insurance act -32 as the first

measure to regulate the life insurance business in !ndia. !n -30# ith comprehensive

provision for detailed effective control over insurance. "he union government had opened

the insurance sector for private participation in -333# also alloing the private companies

to have foreign up to 2:. @olloing the opening up of the insurance sector# -8 private

companies have entered the life insurance business.

28



%e+e*!t" o* I+"ur,+ce#

(-) T,9 %e+e*!t"F

6elief in income ta; is available for amount paid by ay of premium for life insurance.

!nvestment qualifying for rebate vi$. insurance premium# premium paid toard annuity

plans for life insurance are specified under section (2) of the income ta; Act.

(2) S,*et.F !n life insurance# on death# the full sum assured is payable (ith bonuses

herever applicable) hereas in other saving scheme# only the amount (saved ith

interest) is payable.

(0) L!Ju!1!t.#

Loans can be raised on sole security of the policy hich has acquired a paidup value.

Besides# a Life !nsurance policy is also generally accepted as security for even a

commercial loanDhousing loan.

(1) A!1 to T3r!*tF

Life !nsurance encourages Nthrift+ Long term saving can be made in a relatively painless

manner because of Neasy instalment facility+ (&remium can be made through

monthly# quarterly# halfyearly or yearly instalment). "he Salary Saving Scheme#

popularly knon as SSS provide a convenient method if paying premium each

month through deduction from one+s salary. "he Salary Saving Scheme can be

introduced in an institution of establishment sub?ect to specified terms and condition.

(8) Mo+e. ,t t3e t!-e o* ReJu!re-e+t"#

A suitable insurance plan or a combination of different plans can be taken to meet

specific needs that are likely to arise in future such as children+s education# start inlife or

marriage provision or even periodical needs for cash ones a predetermined stretch of

time. Alternatively# policy money can be so arranged to be used for other investments

sub?ect to certain conditions# loans are granted to policy holders for house or for

purchase of flats.

(<) I+"ur,+ce ,**or1" pe,ce o* -!+1#

29



"he security is the prime motivating factor. "he security ends the tension and finally

leads to peace to mind.

() I+"ur,+ce E/!-!+,te Depe+1e+c.

At the death of husband or the father or any lead person# the family ould suffer

a lot. "he insurance is here to assist then like to provide adequate amount at the

time of suffering. "he economic dependency if the family is reduced.

(;) I+"ur,+ce e+cour,0e" ",!+0"#

!n most of the life policies# element of saving is predominant# this policies combine of

programme of !nsurance and saving. Saving ith insurance has certain e;tra advantage.

(:) Eco+o-!c Gro?t3 o* t3e cou+tr.#

@or the groth of the country insurance provides string hand and mid to protect against

loss of death. @rom the insurance government get more financial resource and

utili$e strengthen the economic condition of the country.

@undamental principal of life insurance contractF

-) &rincipal of almost good faith.

A positive duty to voluntary# accurately and fully all facts material to risk being

proposed hether requested or not.

2) &rincipal of insurable interestF

6elationship ith the sub?ect matter (a person) hich is recognised in la and gives

legal right to insure that person.

L!-!t,t!o+ o* L!*e !+"ur,+ce#

some of the difficulties and limitations faced by me during my training are as folloF

) L,c@ o* ,?,re+e"" ,-o+0 t3e peop/e O this is the biggest limitation found in this

sector. Most of the people are not aare about the importance and the necessarily

of the insurance in their life . they are not aare ho useful life insurance can be

found for their family members if something happens to them.2) Percept!o+ o* t3e peop/e to?,r1" !+"ur,+ce "ector# people still consider

insurance ?ust as a ta; device. So today also there is alays a rush to buy an

30



insurance policy only at the end of the financial year like 9anuary# @ebruary and

march.5) I+"ur,+ce 1oe" +ot 0!e 0oo1 retur+"# still today people think that insurance

does not give good return. "hey are not aare of the modern unit linked insurance

plans hich are offered by most of the private sector players. "hey are still under

the perception that if they take insurance they ill get only 8: return hich is

not true no a days.7) L,c@ o* ,?,re+e"" ,4out t3e e,r+!+0 opportu+!t. !+ t3e !+"ur,+ce "ector#

people still today are not aare about the earning opportunity that the insurance

sector gives. After the privati$ation of the insurance sector many private giants

have entered the insurance sector. "hese private companies in order to beat the

competition and to increase their insurance advisors to increase their reach to thecustomer are giving very high commission rates but people are not aare o that.

8) I+cre,"e1 co-pet!t!o+# today the competition in the insurance sector has

became very stiff currently there are -1 life insurance companies orking in !ndia

including the L!/. "oday each and every company is trying to increase their

insurance advisors so that they can increase their reach in market.

Ge+er,/ I+"ur,+ce

"riton insurance co. Ltd as the first general insurance company to be established in

!ndia in -85# hose shares ere mainly held by the British. "he first general insurance

company to be set up by an !ndian as !ndian mercantile insurance co Ltd# hich as

stabili$ed in -354 there emerged many a player on the !ndian scene thereafter.

7eneral (nonlife) insurance provides a shortterm coverage# usually for a period of one

year. 7eneral insurers transact fire insurance# motor insurance# marine insurance# and

miscellaneous insurance business. Among these categories fire and motor insurance

business are predominant. Motor vehicle insurance is compulsory in !ndia and the motor

insurance industry.Moreover# motor insurance due to third party liability claims has substantially contributed

to underriting losses.

Ge+er,/ I+"ur,+ce Pro1uct"

F!re I+"ur,+ce#

31



@ire !nsurance is a comprehensive policy hich covers loss on account of fire# earth

quake# riots# floods# strikes# and malicious intent. !t can be taken only by the oner of the

premises to be insured.

Motor I+"ur,+ce# "his coversF

!n motor insurance# the rates ere revised. >pards tice# once in -32 and then

in-335 as the high cost of repairs coupled ith third party claims had adversely affect the

insured loss ratio. Motor insurance is mandatory leading to good amount of premium

collection but it is not being fancied upon as it could lead to litigation problem.

M,r!+e C,r0o I+"ur,+ceF "his coversF

a. /argo in "ransit.b. /argo eclaration policy.

!t includes insurance of Marine %ull !nsurance !nland essels# 'cean going essels#

fishing and scaling vessels# freight at risk# construction of ships# voyage insurance of

various vessels# ship breaking insurance# oil and energy in respect of onshore and

offshore risks# including construction risk.

T3e Co+"u-er A1opt!o+ Proce""#

"he consumer adoption process is the process by hich customer learn about neproducts try them and adopt or re?ect them. "oday many marketers are targeting heavyusers and early adopters of ne products recogni$ing that specific media can reach bothgroups and tend to be opinion leader. "he consumer adoption process is influenced bymany factors to try ne products personal influences and the characteristics of the neproducts or innovations.

St,0e" o* A1opt!o+ Proce""#

an innovation refers to any good services or idea. "hat is perceived by someone as ne."he idea may have long history# but it is an innovation to the person ho sees it as ne.!nnovation takes time to spread through the special the special system. "he consumer adoption process focuses on the mental process through hich an individual passesfrom first hearing about an innovation to final adoption. Adopters of ne products havemoved through the folloing five stagesF

32



) A?,re+e""# the consumer becomes aare of the innovation but lacks informationabout it.

2) I+tere"t# the consumer is stimulated to see the information about the innovation.

5) E,/u,t!o+# the consumer consider hether to try the innovation or not.

7) Tr!,/# the consumer tries the innovation to improve his estimate of its value.

8) A1opt!o+# the consumer decided to make full and regular use of the innovation.

CUSTOMER PREFRENCES AND PERCEPTION

Co+"u-er pre*ere+ce"

/onsumer preferences is a business hich is used to capture the idea of measuring hosatisfied an enterprise customer are ith the organi$ation efforts in a market place. ,veryorgani$ation has customer of some kind. "he organi$ation provides products(goods andservices) of some kind of its customer through the mechanism of a marketplace. "heproducts the organi$ation provides are sub?ect to competition hether by similar productsor by substitution products. "he reason on organi$ation is interested in the satisfaction of its customer is because customer purchase the organi$ations products. "he organi$ationis interested in retaining its e;isting customer and increasing the number of its customer Mutual @und and Share "rading is the topic head of the report. !n present scenario is notonly confined to the selling of products# advertising and sales promotions hichemphasi$es in making ne customer and keeping the relations ith the e;istingcustomer .

@inancial products are those products hich have values in monetary terms. "hefinancial products are intangible in nature that means the customer cannot even touchsmell or feel it. !n this manner it become a challenges for the sales personnel in financialsector to convince the customer to invest in it. "he sales personnel can only guaranteefor the benefits that the customer ill get after a certain period of time span.

"he evaluation of financial planning has been increased through decades hich is bestseen in customer rise. =o a days investment of saving has assumed great importance.

33



34



C'APTER No& 2

RESEARC' MET'ODOLOGY

Re"e,rc3 Met3o1o/o0.

6esearch is a common language refers to a search of knoledge. 6esearch is

scientific I systematic search for pertinent information on a specific topic# in fact

research is an art of scientific investigation. 6esearch Methodology is a scientific ay

to solve research problem. !t may be understood as a science of studying ho research

is doing scientifically. !n it e study various steps that are generally adopted by

researchers in studying their research problem. !t is necessary for researchers to kno

not only kno research method techniques but also technology.

"he research problem consists of series of closely related activities. At times# the first

step determines the native of the last step to be undertaken. Ehy a research has

been defined# hat data has been collected and hat a particular methods have

been adopted and a host of similar other questions are usually ansered hen e talk of

research methodology concerning a research problem or study.

2&& Re"e,rc3 De"!0+

A research design is defined as the specific methods and procedures for acquiring the

information needed. !t is a plant or organi$ing frameork for doing the study and

collecting the data. esigning a research plan requires decisions all the data sources#

research approaches# research instruments# sampling plan and contact methods.

6esearch design is mainly of folloing typesF

-. ,;ploratory research2. escriptive research

35



0. /asual research

E9p/or,tor. Re"e,rc3

"he ma?or purposes of e;ploratory studies are the identification of problems# themore precise formulation of problems and the formulations of ne alternative courses

of action. "he design of e;ploratory studies is characteri$ed by a great amount of

fle;ibility and adhoc veracity.

De"cr!pt!e Stu1!e"

escriptive research in contrast to e;ploratory research is marked by the prior

formulation of specific research questions. "he investigator already knos asubstantial amount about the research problem. &erhaps as a result of an e;ploratory

study# before the pro?ect is initiated. escriptive research is also characteri$ed by a pre

planned and structured design.

C,"u,/ or E9per!-e+t,/ De"!0+

A casual design investigates the cause and effect relationships beteen to or more

variables. "he hypothesis is tested and the e;periment is done. "here are folloing types

of casual designsF

!. After only design!!. Before after design!!!. Before after ith control group design!. @our groups# si; studies design. After only ith control group design

!. /onsumer panel design!!. ,;posit factor design

36



2&&2 D,t, Co//ect!o+ Met3o1

DATA COLLECTION MET'OD

&6!MA6 S,/'=A6

irect personal !ntervie

!ndirect personal !ntervie &ublished Sources>npublished Sources

!nformation from correspondents 7ovt. &ublication

Mailed questionnaire 6eport /ommittees I

Puestion filled by enumerators /ommissions

&rivate &ublication

6esearch !nstitute

Per!o1 o* Stu1.F "his study has been carried out for a ma;imum period of eeks.

Are, o* "tu1.F "he study is e;clusively done in the area of marketing. !t is a process

requiring care# sophistication# e;perience# business ?udgment# and imagination for hich

there can be no mechanical substitutes.

S,-p/!+0 De"!0+F "he random sampling is done because any probability sampling

procedure ould require detailed information about the universe# hich is not easily

available further# as it is being an e;ploratory research.

S,-p/e Proce1ureF !n this study Grandom sampling procedure is used. 6andom

sampling is preferred because of some limitation and the comple;ity. Area sampling is

37



used in combination ith random sampling so as to collect the data from different regions

of the city.

S,-p/!+0 S!eF "he sampling si$e of the study is -55.

D,t, Co//ect!o+

ata is collected from various customers through personal interaction. Specific

questionnaires are prepared for collecting data. ata is collected ith mere interaction

and formal discussion ith different respondents and face to face contact ith the

persons from hom the information is to be obtained (knon as informants). ! ask them

questions pertaining to the survey and collect the desired information. ! contact the

orkers of 6eliance Life !nsurance /ompany Ltd. to obtain some of the information."he information obtained is first hand and original in character.

C'APTER No& 5

DATA ANALYSIS

5& D,t, A+,/."!"

5&& A?,re+e"" o* /!*e !+"ur,+ce !+ co+"u-er&

@ig.-

"able no. -

=o. of respondents &ercentage of respondents

es -55 -55

=o 5 5

38



!nterpretation -F According to the data ma;imum no. of people are aare ith life insurance policy (here

-55 people are aare ith it). "oday !ndians are aare ith this investment because it

covers risk of the life as ell as gives better return on maturity.

5&&2 W3,t !" .our purpo"e *or 4u.!+0 ,+ !+"ur,+ce po/!c.=

"able no. 2

=o. of respondents &ercentage of

respondents@or old age saving 8- 8-

@amily needs -1 -1

"ime to time needs 2- 2-

'pposite

circumstances

-1 -1

@ig. 2

!nterpretation 2F

Most of the people buy insurance policy for their old age saving because they ant to

save money or back up for old age and only 2- people buy insurance for time to time

needs.

39



5&&5 'o? -uc3 -o+e. .ou ?,+t to !+e"t !+ !+"ur,+ce=

@ig. 0

"able no. 0F

&remium amount =o. of respondents

6s. -5#555 to -8#555 -8

6s. -8#55- to 25#555 23

6s. 25#55- to 28#555 0-

6s. 28#55- to 05#555 2-

6s. 05#55- to 08#555 1

!nterpretation 0F

Mostly people invest in insurance on the basis of their saving and according to their

saving they purchase insurance policies. %ere most of the people invest 2555- 6s. to

28555 6s. and very less number of people invest huge amount in insurance.

5&&7 W3e+ .ou ,re 4u.!+0 ,+ !+"ur,+ce po/!c. .our 1ec!"!o+ !" !+*/ue+ce1 4.=

40



@ig. 1

"able no. 1=o. of respondents

@amily 04@riends 05&rofessional and trade union group -8Brand and advertisement -

!nterpretation 1F

!nsurance is no basic investment for consumers. But this is tradition of !ndia that e do

not believe on unknon people so hen any one buy insurance policy then his or her decision is depend on family# friends and on other factors. !n the study i found that 04

of respondents believe on their family to buy insurance policy but only - respondent+s

decision depend on brand and advertisement of the company. So# aDc to study# e see

that family and friends play a big role to buy an insurance policy.

5&&8 I+ ?3!c3 co-p,+. .ou 4e/!ee -o"tQ

41



@ig.8

"able no. 8

!nterpretation 8F

Most of the people ant to invest their money in public insurance company. !n privateinsurance company only 0 respondents ant to invest their money. Most of the peoplebuy insurance from L!/ and there are more than 25 private insurance companies in!ndia.

5&&< 'o? 1o .ou ?,+t to p,. .our pre-!u-=

42

/ompany =o. of respondents&rivate company 0&ublic company :2



@ig. :

"able no. :

Mode =o. of respondents/ash 08/heque I /reditcard

03

emand draft 2:

!nterpretation :F

Most of the respondents (i.e. 03) pay their premium through cheque I credit card

because of easiness and convenience. 08 respondents pay their premium through cash

and 2: of them pay their premium through demand draft.

5&& I+ ?3,t -o1e .ou ?,+t to 0!e pre-!u-=

"able no. 4

Mode =o. of respondents &ercentage of

respondentsMonthly 2: 2:%alfyearly 03 03early 08 08

43



@ig.4

!nterpretation 4F

!nsurance companies give a lot of facility to their loyal customers for payment of

premium. /ostumer also pays the premium in three modes monthly# half yearly and

yearly. %ere 03 respondents pay in half yearly mode and 08 respondents pay yearly

mode premium.

5&&; Do .ou ?,+t ?3!c3 t.pe o* !+"ur,+ce p/,+=

"able no.

&lans =o. of respondents

>L!& 2-"raditional plans 15

%ealth plans 20

"erm plans -:

44



@ig.

!nterpretation F

Most of respondents ant mostly traditional plan. 15 respondents use traditional plan

and 2- respondents ant to buy >L!& &lan. &eople sho their interest toards >L!&+s

because it provides both risk coverage for life and investment opportunity in securities.

5&&: Are .ou ",t!"*!e1 ?!t3 t3e retur+ o+ !+e"t-e+t ?3!c3 .ou 0ett!+0 *ro-

po/!c.=

45



@ig. 3

"able no. 3

Satisfaction level =o. of respondents &ercentage of

respondentsery Satisfied 2- 2-Satisfied :5 :5/an+t say 1 1=ot much satisfied 1 1issatisfied -- --

!nterpretation 3F

ADc to data# :5 of respondent are satisfied ith the return. About 2- are very satisfied

on their investment+s return and -- are dissatisfied ith return on investment.

5&& I* .ou ,re +ot t,@!+0 ,+. !+"ur,+ce po/!c. t3e+ p/e,"e te// u" t3e re,"o+

?3.=

@ig. --

46



"able no. -5

6easons =o. of respondentsEe could not afford. 2:Ee don+t see any benefit .ith it. 21Ee don+t ant insurance. -8! don+t understand that ho it

orksQ

08

!nterpretation -5F

As the evident shos that as most as 08 of the total respondents don+t understand theorking of the insurance system and nearly 21 of the respondents don+t see any benefit

ith the system# -8 and 2: of the respondents don+t ant insurance and could not afford

respectively.

O%KECTI>ES OF T'E STUDY

@olloing are the main ob?ectives of the study are

a) "o kno the customers aareness regarding the life insurance.b) "o kno the customers aareness regarding the various life insurance companies

in the insurance sector.c) "o kno the customers preference toards the private or public insurance sector.d) "o kno the different promotion strategy used by companies to aare their

customers.e) "o evaluate the factors underlying consumer perception toards investment in life

insurance policies.

"o develop and standardi$e a measure to evaluate investment pattern in life insurance

services.

47



C'APTER No& 7

FINDINGS

'n the analysis and evaluation of the data collected from the respondents the folloing

findings ere foundF

-. Before establishment of private concern the share of L!/ as 22 hence there is a

ide range for private concerns to enter into market.2. "otal -55 respondents have been approached out of hich 48 are the potential

respondents ho have shon there interest for investment and finance plan.0. About 25 of respondents are shon interest for investment and financial plan.1. About 00.00 of respondents are not interested to give there personal records.8. About 2.14 of respondents have already been covered by other insurance

companies.:. About -5 of respondents have given invalid records.4. About 08 of respondents are nely employed or trainees.

. /ompany introduced a ne fund to invest fund that+s Gfle;i grothH this is themodification of the ma;imiser fund.

48



Co+c/u"!o+"o study represents the most of the people prefer L!/ company for taking insurance

policies after tan private insurance companies. Money back plan is all time favourite for

people. "a; benefits and savings are the main purpose for taking up the insurance

policies. Aareness about the basic term rides and surrender value is lo for not taking

the insurance policy is =o savings.

C3,pter 8SUGGESTIONS

-. /ompany should provide better facilities to there customer.2. /ompany should come ith ne ideas hich help company to enhance there

customer base.

49



0. /ompany should alays fill the feedback form from the customer after

maturity of policy1. /ompany should provide more sitching option in the year as the other

competitor providing.

C'APTER No& <

%I%LIOGRAP'Y%oo@" Re*erre1

RMarketing Management by &hilip *otler

50



I+ter+et Re"ource"

• Search Sites .google.co.in # .msn.com

• Eebsites of the organi$ation .reliancelife.com

• 'ther sites .bimaonline.com# .irdaindia.gov #

.yahooanser.com# .ikipedia.com

Co-p,+. Re"ource"

•

&roduct Brochures• !nputs from company personnel+s.

UESTIONNAIRES

%ello sirDmadam#

! am an M B A student and conducting a very prestigious marketing research pro?ect on

GANALYSIS OF COSTUMER PREFRENCES TOWARDS RELIANCE LIFEINSURANCE .H ou are requested to cooperate me by filling this questionnaire.

51

http://www.google.co.in/

http://www.msn.com/

http://www.reliancelife.com/

http://www.bimaonline.com/

http://www.irdaindia.gov/

http://www.yahooanswer.com/

http://www.google.co.in/

http://www.msn.com/

http://www.reliancelife.com/

http://www.bimaonline.com/

http://www.irdaindia.gov/

http://www.yahooanswer.com/



&lease tick () out for appropriate option.

PuestionsF

-. Are you aare ith Life !nsuranceQ

a) es b) =o

!f yes then have you invested in insuranceQ

a) es b) =o

2. Ehich company you have preferred for your investment Q

a) 6eliance life insurance b) %@/ life insurance

c) Bharti ATA Life insurance d) !/!/! life insurance

0. Ehat is the purpose for buying insurance &olicyQ

a) @or old age saving b) @amily needs

c) "ime to time needs d) 'pposite circumstances

1. Ehen you are buying an insurance policy then your decision influenced byQ

a) @amily b) @riends

c) &rofessional I >nion groups d) Brand I Advertisement

8. Ehat is your saving as percentage () of annual incomeQ

a) -5 to 25 b) 2- to 05

c) 0- to 15 d) 1- to 85

52



:. %o much money do you ant to invest in insurance plansQ

a) 6s. -5#555 to 6s. -8#555 b) 6s. -8#55- to 6s. 25#555

c) 6s. 25#555 to 6s. 28#555 d) 6s. 28#55- t5 6s. 05#555

e) 6s. 05#55- to 6s. 08#555

4. 'n hich company do you believe mostQ

a) &rivate insurance company

b) &ublic insurance company

. %o do you ant to pay your premiumQ

a) /ash

b) /heque I /redit card

c) emand draft

3. o you think that insurance policy is necessity of today+s lifeQ

a) es b) =o

-5.!n hat interval do you ant to give your premiumQ

a) Monthly

b) %alf yearly

c) early

53



--. o you ant hich type of insurance policyQ

a) >L!& (>nit Linked !nsurance &lan)

b) "raditional

c) %ealth

d) "erm &lan

-2.Are you satisfied ith the return on investment hich you getting from policyQ

a) ery Satisfied

b) Satisfied

c) /an+t say

d) =ot much Satisfied

e) issatisfied

-0. !f you are not taking any insurance policy then please tell us the reason# hyQ

a) ! could not afford.

b) ! don+t see any benefit ith it.

c) ! don+t ant insurance.

d) ! don+t understand that ho it orksQ

Documents

t Reliance Life Insurance