14686844 reliance life insurance

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CHAPTER IINDIANINSURANCE

INDUSTRYAN OVERVIEW

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THE INSURANCE INDUSTRY IN INDIAAN 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 gross premium

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 ability of

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

conceived as a means to provide for English Widows. Interestingly inthose 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.

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

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this business but despite the growth that was witnessed, insurance

remained an urban phenomenon.

The Government of India in 1956, brought together over 240 privatelife 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, Oriental Insurance

Company and United India Insurance Company. These were

subsidiaries of the General Insurance Company (GIC).

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KEY MILESTONES1912: The Indian Life Assurance Companies Act enacted as the firststatute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable thegovernment 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 societieswere 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 REFORMSReforms 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 ININDIA

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 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. (www.wikipedia.com)

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CHAPTER IIPROFILE

OFORGANIGATION

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INTRODUCTION TO THE COMPANY

COMPANY PROFILE OF RELIANCE LIFE INSURANCE

FOUNDER

Few men in history have made as dramatic a contribution to their

countrys economic fortunes as did the founder of Reliance, Sh.

Dhirubhai H Ambani. Fewer still have left behind a legacy that is

more enduring and timeless.

As with all great pioneers, there is more than one unique way

of describing the true genius of Dhirubhai: The corporate

visionary, the unmatched strategist, the proud patriot, the leader

of men, the architect of Indias capital markets, the champion of

shareholder interest.

But the role Dhirubhai cherished most was perhaps that of

Indias greatest wealth creator. In one lifetime, he built, starting

from the proverbial scratch, Indias largest private sector

enterprise.

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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 one of great

stories of mutual respect and reciprocal gain in the Indian

markets.

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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.

Reliance Life Insurance is another step forward for Reliance Capital Limited

to offer need based Life Insurance solutions to individuals and Corporates.

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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.

CORPORATE MISSION

To set the standard in helping our customers manage their financial

future.

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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)

Pensions

7. Reliance Golden Years Plan

(formerly Bhagya Shree)

Investments

8. Reliance Market Return Plan

(formerly Kanaka Shree)

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9. Risk / Protection

10. Reliance Term Plan

(formerly Raksha Shree)

Products (Group / Corporate Plans)

11. Risk (Protection )

Reliance Group Term Assurance Policy

(formerly Group Term Assurance Policy)

Reliance EDLI Scheme

(formerly EDLI Scheme)

12.Pensions

a. Reliance Group Gratuity Policy

(formerly Group Gratuity Policy)

b. Reliance Group Superannuation Policy

(formerly Group Superannuation Policy)

13.Reliance Money Guarantee Plan

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Tax Benefits

INCOME TAXSECTION

GROSS ANNUALSALARY

HOW MUCH TAXCAN YOU SAVE?

HDFC STANDARDLIFE PLANS

Sec. 80C Across All income

Slabs

Upto Rs. 33,990

saved on

investment of

Rs. 1,00,000.

All the life insurance

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 plans.

TOTAL SAVINGS

POSSIBLERs37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 underSec. 80 D, calculated for a male with gross annual incomeexceeding Rs. 10,00,000.

2.2 OTHER COMPETITIORS

Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-

free, subject to the conditions laid down therein.

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MAJOR PLAYERS IN THE INSURANCE INDUSTRY INMAJOR PLAYERS IN THE INSURANCE INDUSTRY IN

INDIAINDIA

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1

September 1956 to spread the message of life insurance in the

country and mobilise peoples savings for nation-building 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

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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 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

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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 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.

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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 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).

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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 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.

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3. ICICI Prudent ia l L ife Insurance CompanyLtd.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.

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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.

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.

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1. Royal Sundaram Alliance Insurance Company

The joint venture bringing together Royal & Sun Alliance Insurance

and Sundaram Finance Limited started its operations from March

2001. The company is Head Quartered at Chennai, and has two

Regional Offices, one at Mumbai and another one at New Delhi.

2. 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 holds 74% and the remaining 26% is

held by Allianz, AG, Germany.

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3. 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.

4. Cholamandalam General Insurance Company Ltd.

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Cholamandalam MS General Insurance Company Limited (Chola-MS)

is a joint venture of the Murugappa Group & Mitsui Sumitomo.

Chola-MS commenced operations in October 2002 and has issued

more than 1.4 lakh policies in its first calendar year of operations.

The company has a pan-Indian presence with offices in Chennai,

Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore,

Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag.

5. 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,

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marine, property and casualty, as well as several specialized

financial lines.

2.3 Reliance Policies(1) Reliance Children Plans

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What could make you happier than knowing, that your child's futureis secure? Nothing, we suppose. Which is why, Reliance LifeInsurance brings to you Reliance Secure Child Plan, a unit-linkedInsurance Plan, that gives you the freedom to enjoy today with 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 cumsavings plan. secure the future of your child.

Key FeaturesInsurance cover on the life of child

Your child is completely protected - we will continue to paythe premiums even if you are not alive

Life time income to child in the event of disabilityReturn 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 Rider andTerm Life Insurance Benefit Rider.

(2)Reliance Health + Wealth Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENTPORTFOLIO IS BORNE BY THE POLICYHOLDER.

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There are times when late working hours take precedence over yourhealth check-ups. And there are times when a visit to the doctorseems more important than dividends on your shares. In the ratrace to make money, we often forget to take care of ourselves.

We understand this predicament. Here is a plan that will ensure thatyour wealth keeps increasing constantly and yet your health doesnot take a backseat. The Reliance Wealth Health Plan. A plan thatgives 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 health coverageyou 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 plan underwrittenby Reliance Life Insurance Company Limited, is designed to work inconjunction with contributions towards savings.

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

(3) Reliance Pension Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENTPORTFOLIO IS BORNE BY THE POLICYHOLDER.

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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 and theright kind of solution - A retirement plan that allows you to savesystematically and generate the much-needed corpus to make yourolden years look golden.

Key Features Reliance Pension Policy :Invest systematically and secure your golden years

A flexible unit-linked pension product that is different from

traditional life insurance products with Vesting Agebetween 45 & 70 yearsEight different investment funds to choose fromFlexibility to switch between fundsOption to pay Regular, Single as well as Top-up premiumsFlexibility to advance / extend your Vesting AgeTax free commutation up to one third of Fund Value at

Vesting Age

(4) Reliance Whole life insurance policy

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Youve always loved your family. As a loving person you want to berest assured that they will be happy, even if something were tohappen to you. With Reliance Whole Life Plan you can be sure thatyour family will receive that timely financial support they need.

Go ahead, live your today to the fullest, without a worry abouttomorrow.

Key FeaturesInsurance protection till age 85Choice of extending your insurance coverage till age 99Convenient Premium Payment Term

Wealth creation through bonus additionsMore value for your money by way of High Sum AssuredRebate Get Sum Assured plus Bonuses in case of yourunfortunate deathOption to add two Riders Critical Illness and AccidentalDeath Benefit and Total and Permanent Disablement RiderPolicy Loan available after three full years premiumpayment

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CHAPTER III

OBJECTIVESOFSTUDY

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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 of the

Life insurance sector.

The objective behind the project is as follows:

To find the right candidate.

To about their family background, occupation, social

relation, Qualification, Age.

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CHAPTER IV RESEARCHMETHODOLOGY

RESEARCH METHODOLOGY

TITLE:

To determine customer-buying behavior with a focus on market

segmentation for Reliance Life Insurance.

TITLE JUSTIFICATION:

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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.

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.

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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 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

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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.

RESEARCH DESIGN

NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL

RESEARCH

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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

Sampling Unit:

The respondants who were asked to fill out questionnaires are the sampling

units. These comprise of employees of MNCs, Govt. Employees, Self

Employeds etc.

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Sample size:

The sample size was restricted to only 100, which comprised of mainly

peoples from different regions of Delhi due to time constraints.

Sampling Area :

The area of the research was New Delhi, India.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Delhi and does not

necessarily shows a pattern applicable to all of Country.

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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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MARKETING STRATREGIES OF THE COMPANY

SOME OF THE STRATEGIES ADOPTED BY RELIANCE

LIFE INSURANCE COMPANY.

Reliance Life Insurance plans to tap Reliance Communications' 2.5-crore

telephony subscriber base to market its products.

The company is considering a series of options to leverage its relationship

with Reliance Communications.

However, a joint product or a co-branded solution would require approval

from the Insurance Regulatory and Development Authority

Customers of R World, the information and entertainment portal of

Reliance Communications, would also be able to pay premiums through a

bank account, provided the bank is listed on the network.

Reliance Life Insurance officials, however, offered no comment when

asked whether there would be an arrangement for payment of commission

to Reliance Communications.

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As an alternative channel for distribution, insurance companies usually tie

up with banks. In the case of banc assurance, where there is a corporate

agency tie-up, the commission could range from 5 per cent to 40 per cent of

first-year premium depending on the commission loaded on to the product

at the time of registration with IRDA.

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CHAPTER V

RESULT ANALYSIS

&

INTERPRETATION

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DATA ANALYSIS & INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OFINSURANCE COMPANIESCOMPANYS NAME NO.OFRESPONDENT SHARE (%)L.I.C. 78 78RELIANCE LIFEINSURANCE 3 3ICICI PRUDENTIAL 10 10SBI LIFE 7 7HDFC 2 2

TOTAL 100 100

78

3

10

7 2

LIC

REL

ICICI

SBI

HDFC

INTERPRETATION 78% of the people contacted prefer LIC policy to any other and therefore it

is ranked no.1 by that percent of respondents.

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DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

BENEFITS NO.OFRESPONDENTS SHARE (%)

Cover Future Uncertainty 55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

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.

46

55%

20%

25%Cover Future

Uncertainty

Tax Deductions

Future Investment


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DATA PROVIDES FEATURES OF INSURANCE POLICY THATATTRACTED RESPONDENTSFEATURE NO.OF

RESPONDENTSSHARE (%)

Money Back Guarantee 15 15

Larger Risk Coverance 37 37

Easy Access to Agents 7 7

Low Premium 30 30

Companys Reputation 11 11

TOTAL 100 100

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.

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DATA PROVIDES NUMBER OF INSURANCE POLICY TYPERESPONDENTS

POLICY TYPE NO. OFRESPONDENTS SHARE (%)LIFE POLICY 75 75

NON LIFE POLICY 25 25

BOTH 45 45

NATURE OF POLICY

75

25

45

LIFE

POLICYNON LIFE

POLICYBOTH

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 INSURANCERESPONSE NO. OFRESPONDENTS SHARE (%)

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

81

74

100

SAVING

TOOL

TAX SAVING

TOOL

FAMILY

INTERPRETATION 81% of the respondents have perception of Insurance being a saving

tool.

And 74% of the respondents have perception of Insurance being a tax

saving device.

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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. OFRESPONDENTS SHARE (%)

Yes 70

No 30 30%

Total 100 100%

INTERPRETATION

50

70%

30%

Yes

No


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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 PEOPLEBUYING PROCESS NO. OFRESPONDENTS SHARE (%)

Customer approached Insurancecompany/Agent

45 45%

Company/agent approachedcustomer

55 555

Total 100 100%

51

55%

45%

Customer approached Insurance company/Agent

Company/agent approached customer


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INTERPRETATION 44.5% of the respondents approached the Insurance Company / Agent.

Whereas, 55.5% of the respondents were approached by the

Company /Agent.

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DATA SHOWS REASONS BEHIND FOR INSURANCERESPONSE NO. OFRESPONDENTS SHARE (%)

Tax saving 80 80%

Saving / Investment 80 80.%

Family protection 100 100%

INTERPRETATION 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.

53

80

100

80

Slice 1 Slice 2 Slice 3


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DATA SHOWS SATISFACTION OF RESPONDENTS WITHRESPECT TO POLICYRESPONSE NO. OFRESPONDENTS 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.

40% of the respondents are not satisfied with their existing policy.

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

54

0%

40%

60%

Satisfied Not satisfied Not Responded


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DATA SHOWS SATISFACTION OF +RESPONDENTS WITHRESPECT TO SERVICE AGENT

RESPONSE NO. OFRESPONDENTS SHARE (%)Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION 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.

55

55.00%45.00%

Satisfied Not satisfied


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DATA SHOWS NUMBER OF RESPONDENTS PAYING TAXRESPONSE NO. OFRESPONDENTS 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.

56

0%

100%

Paying tax Not paying tax


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DATA SHOWS RESPONDENT S INVESTMENTS FOR TAXSAVING

INVESTMENTS NO. OFRESPONDENTS SHARE (%)LIC 51 51%

NSC 33 33%

Bonds 32 32%

PPF 25 25%

PF 21 21%

EPF 11 11%

INTERPRETATION 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.

57

33

32

25

2151

LIC NSC BOND PPF PF EPF


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DATA SHOWS RESPONDENTS PERCEPTION ABOUT BESTFORM OF INVESTMENT FOR SECURING THEIR FUTURE

NO. OFRESPONDENTS SHARE (%)Fixed Assets 75 75%

Bank deposits 11 11%

Jewellery 25 25%

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

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.

58

11

2540

10

7075

Fixed Assets

Bank deposits

Cash &

JewellerySecurities i.e.

bonds, MFsShares

Insurance


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DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIRINVESTMENT

RESPONSE NO. OFRESPONDENTS

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.

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

59

90

71

100

Saving & Returns Security Tax benefits


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DATA GIVES PEOPLES PERCEPTION ON APPROPRIATE AGEFOR BUYING INSURANCE

RESPONSE NO. OFRESPONDENTS

SHARE (%) After 25 years 29 29%

After 35 years 10 10%

After 45 years 0 0%

Anytime 60 6

INTERPRETATION 29% of the respondents are with the view that insurance should be

bought after the age of 25 years.

10.5% of the respondents are with the view that insurance should be

buyed after the age of 35 years.

60

0%

29%

10.10%60.61%

After 25 years After 35 years After 45 years Anytime


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Whereas, 60.5% of the respondents are with the view that buying of

insurance do not have any thing to do with age i.e. there is no age limitations.

It can be purchased any time according to the need.

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DATA SHOWS PEOPLE OPIN ION ABOUT INDIAN INSURANCECOMPANIES

RESPONSE NO. OFRESPONDENTS 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%

62

2926

24

10 0

Inflexible plans Non user friendlyUnsatisfactory services Non Aggressive

Satisfactory 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 ANINSURANCE COMPANY

RESPONSE NO. OFRESPONDENTS SHARE (%) A trusted name 82 82%

Friendly service & responsiveness

71 71%

Good plans 81 81%

Accessibility 49 49%

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.

64

71

81

49

82

A trusted name

Friendly service & responsiveness

Good plans

Accessibility


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DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OFRESPONDENTS SHARE (%)

Planning 87 87%

Not planning 13 13%

Total 100 100%

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.

65

87.0%

13.0%

Planning Not planning


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DATA SHOWS PEOPLE INTERESTED IN GOING FORINSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITYOFFERS BETTER SERVICE & PRODUCTS

RESPONSE NO. OFRESPONDENTS SHARE (%) Yes 43

No 44 44%

Uncertain 13 13%

Total 100 100%

INTERPRETATIONThe 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 Life Insurance to take them on their favor.

66

43%

44%

13%

Yes No Uncertain


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CHAPTER VICONCLUSION

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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 VIISUGGESTION

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Suggestion

According the survey only 42% people are insuredin Alwar 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 Alwar in that

42% there are 82 % people are under insured andother 18% people are fully insured according to

their income so that is also plus point for insurance

sector to capture the market

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CHAPTER VIIIQUESTIONNAIRE

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QUESTIONNAIRE1. 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 THEMOST? (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 HAVEINSURANCE POLICY? (Please Tick)a)


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(Specify)

6. WHAT DO YOU THINK ARE THE BENEFITS OFINSURANCE COVER?(RANK THEM)

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONSc) FUTURE INVESTMENT

d) ANY OTHER _________(Specify)

7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TOBUY IT?(RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

8. YOUR MONTHLY INCOME?a)


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9. DO YOU REALLY THINK INSURANCE POLICY COVERIN TODAYS SCENARIO IS NOT ESSENTIAL?__________________________________________________

10. WHATS YOUR PERCEPTION ABOUT INSURANCE?(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICEc) A TOOL TO PROTECT FUTURE

11. HOW HAS/WOULD YOU BOUGHT/BUY ANINSURANCE?a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER

12. AREYOU SATISFIED WITH THE POLICY?a) SATISFIED SAVING TOOL

b) NOT SATISFIEDc) NOT RESPONDING

13. ARE YOU SATISFIED WITH THE SERVICE AGENT?a) SATISFIED SAVING TOOL

b) NOT SATISFIEDc) NOT RESPONDING

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14. DO YOU PAY TAXES? YES NO

15. WHERE HAVE YOU INVESTED FOR TAX SAVING?(RANK THEM)

a) LIC

b) NSC

c) BONDS

d) PPF

e) PF

f) EPF

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

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17.WHAT DO YOU INTENT TO GAIN FROMINVESTMENTS?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 INSURANCE COs?a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

e) SATISFACTORY

f) GOOD

g) VERY GOOD

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20.ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

21. WOULD YOU GO FOR INSURANCE IF A SERVICEPROVIDER AWAY FROM THE CITY OFFERS BETTERSERVICE & PRODUCTS?a) YES

b) NO

c) UNCERTAIN

THANK YOU

NAME:_________________________ADDRESS:____________________________________________________OCCUPATION:___________________

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CHAPTER IX

BIBLIOGRAPHY

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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.CI

FAINSURANCE.COM

WWW.M

ONEYOUTLOOK.COM

WWW.IN

SURANCE.IND.COM

3. REPORTS/ARTICLES REFFERED:

79
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.

REPORT: COPING WITH COMPETITIONJan2007

THANK YOU

14686844 reliance life insurance

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