A PROJECT REPORT ON RELIANCE LIFE INSUCERCE

SUBMITED BY:-

» NAME:-SUBHAJIT GOSWAMI

» ROLL NO: DURD BM 2008/09 » REG.NO: 2014 of 2007-2008

CONTESTS:-Acknowledgement.

• Introducction/Bacground – History of Life Insurance.– Insurance in India. – About Insurance. – Need of Life Insurance.– Insurance Penetration

. Company Profile _ Background _ List of some Competitors of RELIANCE LILE INSURANCE. _ Products Offered. _ Tax Benefits.

. Justification / Purpose

. Objective. . Market Strategies. . Advisership.

. Mode Of Data Collection. . Research Methodology.

. Present market share of various Life Insurance. .Findings. .Conclusion.

. Bibliography. . Proferma of Questionnaire.

ACKNOWLEDGEMENT• I Humbly take this opportunity to thank (RELIANCE LIFE

INSURANCE) for giving me the scope to work with the company and success-fully completing project work which is a part of our course curriculum. I am thankful to the entire marketing department of (RELIANCE LIFE INSURANCE) & specially the BRANCH MANAGER Mr. & most importantly to my ASSOCIATE MANAGER Mr. ANIL KUMER MALI, without whose guidance it was hardly possible for me to take the project.

• I am also thankful to the faculty members of my Institution who

have also helped me with their best efforts. I would be very grateful to Sir. Partho Ghosh, for giving me his precious time & support in completing my project.

• ……………………………………………..

SUBHAJIT GOSWAMIDURGAPUR INSTETUTE OF MANAGEMENT(DIM)

HISTORY OF LIFE INSURENCE

• The earliest type of LIFE INSURANCE was started by the Greeks & Romans. All surviving members made contribution for the burial cost a member. In case of the death of a member the cost of burial was made out of the contributed fund.

• In the 17th century, the Tontine Annuity system was introduced where associations of individuals were formed without any reference to ago, & a fund was created by equal contributions from each member. The sum collected was invested, & at the end of each year the interest was divided among the survivors. The last remaining survivors received both the year`s interest & the entire amount of principle.

. The first org. LIFE INSURANCE Co, was founded in 1759 in Philadelphia, in North America. Subsequently, over the past three countries, numerous LIFE INSURANCE Co sprung up, making LIFE INSURANCE a popular tool for protection coupled with investment.

INSURANCE in INDIA

• The British introduced INSURANCE in INDIA in the beginning of the 19th century. In 1818, a British firm called ORIENTAL LIFE INSURANCE Co was established. Later, the Bombay LIFE INSURANCE Co was established in 1823. In 1874, the Oriental Government Security Life Assurance Co was set up. The mismanagement & misutilization of funds led to the nationalization of Insurance Business in 1956. Five decades after nationalization & post liberalization in 2000, today there are over 14 Life Insurance Co in India.

INSURANCE PENETRATION INTERNATIONAL COMPOSITIOHN

Countries

Insurance Penetration

(Premium as% of GDP

2000)(Non-life+Life)

Insurance Penetration

(Premium as % of GDP

2001)(Non-life+Life)

United States 8.76 8.97

Canada 6.56 6.42

Brazil 2.11 2.14

United Kingdom 15.78 14.18

Germany 6.54 6.59

India 2.32 2.71

China 1.79 2.20

South Africa 16.86 17.97

Australia 9.41 9.15

ABOUT INSURANCE

• Principle of utmost good faith:

• As for INSURANCE contracts, the product sold in intangible.

• It cann`t be seen or felt. Moreover, most of the facts relating to heal, habits personal history & family history are known to one part only, the prosper. The Insurer can also know most of these facts only if the law imposes a greater duty on these parties to an INSURANCE contract than in the case of other commercial contracts.

•

• Principle of Insurable Interest:

• The Insurance Act, 1938 does not define insurable interest. Insurable interest is said to exist when the person insuring stand to lose if the insured again occurred. It is presumed that a person has insurable interest in his own life to an unlimited extent. Employees have insurable interest in the life of employment contract countries.

NEED OF LIFE INSURANCE • Life Insurance has come a long way from the earlier day when it

was originally conceived as a risk covering medium for short period of time, covering temporary risk situation .

• 1.Financial Independence:- One needs Life Insurance because typically the need for income continues for those who are financially dependent on him/her, but there is no guarantee one's ability to earn consistently & for the rest of his/her life.

• 2.NEW GENERATION FAMILY SYSTEM:- This need has become even more important due to steady disintegration of the prevalent joint family system, & emergence of nuclear families. The need to protect the family's ever growing needs is why one needs of the family.

• 3.TEMPORARY NEEDS / THREATS:- The original purpose of LIFE INSURANCE remains an important element, namely providing for replacement of income on death etc.

• 4.REGULAR SAVINGS:- Providing for one's family & oneself, as a medium to long term exercise. This has become relevant in recent time as people seek financial independence for their family.

• • 5.INVESTMENT:- Put simply, the building up of savings

while safeguarding it from the ravages of inflation. Unlike regular savings products, investment products are traditionally lump sum investments, where the individual makes a one off payments.

• 6.RETIREMENT:- Provisions for later years becomes increasingly necessary, especially in a changing culture & social environment. One can buy a suitable insurance policy which will provide periodical payments in one's old age.

INTEGRATED FINANCIAL PLANNING

• 1.PROTECTION:- • FAMILY PROTECTION • PRO.AGAINST DISABILITY • PRO.AGAINST DREADED

DIESEASES..

• 2.SAVINGS:- • RETIREMENT • CHILDREN EDUCATION • ASSET CREATION

• 3.INVESTMENTS:- • VARIOUS INVESTMENT • OPTION TO CREATE

WEALTH.

SAVINGSSAVINGS

INVESTMENTINVESTMENT

PROTECTIONPROTECTION

ABOUT RELIANCE LIFE INSURANCE• • The name “RELIANCE” is all to know about his

“RELIANCE LIFE INSURANCE Co”. From the name we can understand that this company can be reliable from other private companies in the market.

• “RELIANCE LIFE INSURANCE Co” has been start in India on 6th Oct 2005.The growth of this company is 14% at the starting time but now it has been reached to 49%.This company’s present share in the market is 10.3%. This company has spread his branches in all over India at a huge amount. In present it has 1145 branches in all over the India.

LISTS OF SOME COMPETITORS OF RELIANCE LIFE INSURANCE

• 1. .Life Insurance Corp of India (Govt. Undertaken).

• 2. ICICI PRUDENTIAL. • 3. Bajaj Allianz Life Insurance Co. • 4. Birla Sun Life Insurance Co. • 5. Max New York Life Insurance Co. • 6. HDFC Standard Life Insurance Co. • 7. ING Vyasa Life Insurance Co. • 8. SBI Life Insurance Co. • 9. Tata AIG Life Insurance Co. • 10. AVIVA.

PRODUCTS OF THE COMPANY

• 1. RELIANCE SUPER INVESTASSURE PLLN(RSIP).

• 2.RELIANCE Fixed Plan. • 3.RELIANCE Child Plan. • 4.Health & Wealth Plan. • 5.RELIANCE Pension Plan. • 6.RELIANCE Premier Life. • 7.RELIANCE Term Plan. • 8.RELIANCE Investment Plan. • 9.Credite Guardian Plan. • 10.Money Back.

TRADITIONAL PRODUCTS

• Traditional Products are those policies which covers the traditional norms and conditions of LIFE INSURANCE POLICY.

• These are more similar to the LIC policies. In RELIANCE LIFE INSURANCE there are many traditional products available likes …….

• CHILDS PLAN, MONEY BACK, etc.. • These policies are

basically with profit plans and the application value depends upon the bonus declared at the end of the policy year.

• The surrender value for this plans are available after the 3rd year. Paid up value also there in TDLP.

RELIANCE SUPER INVEST ASSURE PLAN

• 1.Top-up facility is available to increase investment component by maximum of 25% of the regular premium paid till that time.

2. Switching there are 52 free switches available under this plan during any policy year.

3. Flexibility to choose your Sum Assured between 5 times to 20 times of annual premium.

4. Premium Redirection help you to invest your future premium into fund options based on your risk capacity.

5. Settlement Option provides the facility to receive the maturity proceeds in periodic installments within a maximum of 5 years from the date of maturity.

6. Exchange Option is available after completion of three policy years from the data of commencement of the policy.

7. Surrender is allowed after first three policy years & at no cost after 5th policy year.

8. Optional Rider Benefits Reliance Major Surgical Benefit Rider, Reliance Critical Conditions(25)Rider, Reliance Term Life Insurance Benefit Rider, Reliance Accidental Death & Total & Permanent Disablement Rider.

RELIANCE PREMIER LIFE• In Reliance Premier Life 94% of our premium is invested

towards your • saving fund. As a result, you save more with the same

premium investment. And that's only for the first year. From the second year onwards, there are no allocation charges on your premium. Which means, 100% premium is allocated to your savings fund! It doesn't get any better!

• Key Features:- • Very high allocation of 94% of premium during the first year. • 100% allocation during the second & subsequent years.• Choice of a wide range of fund option to customize the plan to suit

your risk appetite. • Tax Benefit U/S 80C & 10(10D) of the Income Tax Act, 1961.

RELIANCE CHILD PLAN:• “RELIANCE CHILD PLANRELIANCE CHILD PLAN” is an investment plan designed to meet your

child’s future financial needs. It’s a plan that gives your child the “azaadi” to realize his dreams. The plan is participating plan with a 15-day free look period.

• ““Who can avail of this plan?”Who can avail of this plan?” • How old the child have to be to avail of this plan? • Minimum age- 0year. • Maximum age-17years.

• ““For what term can I avail of this plan?” For what term can I avail of this plan?” • 10-30 years.

• ““What is the maximum sum assured allowed under this plan?” What is the maximum sum assured allowed under this plan?” • Rs.25,00,000.

HEALTH & WEALTH PLAN• ““HEALTH & WEALTH PLAN” HEALTH & WEALTH PLAN” is a investment plan where

you can take a policy for your Health as well as Wealth also. It’s a plan that gives you more encourage to spend your life, with out any tension of any accident on your life.

• ““Who can avail of this plan?”Who can avail of this plan?” • How old you have to be to avail this plan? • Minimum age – 0 year. • Maximum age – 65 years.

• “for what term can you avail of this plan?”for what term can you avail of this plan?” • 5-55 years.

• advantage:- advantage:- • It provides you risk coverage as well as you invested sum

assured profit also, so this plan is called Health & Wealth Plan.

SOME MORE POLICIES• MONEY BACK PLAN: • This plan is old plan used by every

private companies. But “RELIANCE LIFE INSURANCE Co” has launched this plan by modifying the whole plan.

• It provide huge benefit to the customers those who wants to invest money in this plan. It also covered the customer life risk also.

• CREDIT GUARDIAN PLAN: • This plan has been newly launched in

the market. It provides benefits as well as life coverage to the customer who purchased this plan.

UNIT LINKED PLAN• It is a unit linked insurance plan. A unit

linked plan is the advancement of traditional insurance policy. Under this plan a person can invest his or her money in market securities with their life insurance coverage. Unit linked plans customers money is invested in different funds of different companies. As the money is invested in top blue companies, the rate of the returns can be higher. More over with this investment, a customer can invest flexibly with maintaining their liquidity. This investments are very transparent to the customers & they get different options to increase their returns & maintain their liquidity.

TAX BENEFITS ON INSURANCE & PENSIONS PLANS

• Life Insurance & retirement plans are effective ways to saving taxes. The tax breaks that are available under our various insurance & pension policies are described below:-

• • 1. Our Life Insurance Plans are eligible for

a deduction U / S 80C• 2. Our pension plans are eligible for a

deduction 80CCC. • 3. Our health riders are eligible for

deduction U / S 80D. • 4. The proceeds or withdrawals of our

LIFE INSURANCE POLICIES are exempt U / S 10(10D). Subject to norms prescribed in that section.

JUSTIFICATION & PURPOSE• Marketing servey entails an exercise to know the marketability of a

product or a set of product of a particular company. One of the best ways to understand the consumer's perception about a product is to carry out marketing research.

• Being a part of my study B.B.A at Banwarilal Bhalotia College under Burdwan University , I had the opportunity of carrying out a market servey for finding out market potentials of “RELIANCE LIFE INSURANCE Co”.

• For the project I had chosen the insurance sector bcoz world over the insurance sector constitution a major segment of the financial services industry & plays a key role in economic development. With recent opening up the economy and also the insurance sector by the Government of India has resulted in more participation by the private & global players, for which the insurance industry is going to witness phenomenal growth in terms of both numbers of new entrants & launching of new insurance products & services. Again insurance business is a service industry that relies heavily on the marketing function for promoting and selling its products. Effective marketing strategies & operations, strong distribution network, competitive pricing etc, are vital for the success of the insurance business.

PROJECT OBJECTIVE

• 1. To study & analyze the pulse of the Insurance Market in Kolkata.

• 2. To make a strategic & analytical study about “RELIANCE LIFE INSURANCE” as one of the growing & leading Insurance companies India.

• 3. To gain a practical exposure of the role as a Sales manager department of marketing.

• 4. To have a knowledge of the corporate culture & its environment. • 5. To study the company & it recruitment methodologies of

Financial Advisors. • 6. To study & analyze the contribution of quality advisors from

both the middle upper middle class & the upper segments of the society.

• 7. To study & analyze the benefits enjoyed by the company through recruitment of quality advisors.

MARKET STRATEGIES• Marketing at “RELIANCE LIFE INSURANCE”

covers an array of activities such as advertising, branding, market development, cannel support, direct & alliance marketing & corporate communication. The advertising & branding section has schedules of advertising campaigns & a branding section has schedules of advertising campaigns & a detailing on what “RELIANCE” corporate identity stands for. This section also details the branding across training & advertising collaterals with reference.

• • Direct channel comprises direct

marketing & alliance marketing. Direct marketing taps databases to generate high quality for profitable business. Alliance marketing seeks to be up with channel partners that have synergies with “RELIANCE” & develop programmed that benefits the customer, “RELIANCE” & the channel partners.

ADVISERSHIP

• At “RELIANCE,” they believe that their Advisors are their ambassadors to the customers. They are the key source for the organization & are continuting link with their client. So they take a lot of care in recruiting & developing their Advisors, force to set higher standards of quality in service & salesmanship.

• Some of the qualities they look for in time of the recruitment:-

• 1. Self motivation. • 2. A master communicator. • 3. A go-getter. • 4. A graduate.

• After the recruitment, advisors go through a training programme. A 17 days training schedule covers the mandatory IRDI training requirements & “RELIANCE” training module.. After the training they have to seat in a examination. After doing pass in the examination the advisors get their license. From that they can start their business.

• Job of the advisors:- Advisors function is to prospect a consumer, convince him/her & close the sale. It is a prestigious & concept oriented job.

•

MODE OF DATA COLLECTION• 1. Primary Data Source:- The primary data was the relevant

data collected through personal visit & phone calls. Data & information has been collected by way of observation, structural interview through questionnaires.

• 2. Secondary data source:- The secondary data few Insurance Magazine s which were obtained from the “RELIANCE LIFE INSURANCE Co” Ballygunge New Market, American Centre Library, Banwarilal Bhalotia College library & Literature,& the Requisite Published Data. Current market report & some financial details for reference study and some financial details for reference study & some published & unpublished documents. The data source are:-

• 1. The Economic Time. • 2. India Today. • 3. Insurance Watch. • 4. Web Sites:- • www.reliancelife.co.in • www.intelligentinvestment.com

RESEARCH METHODOLOGY• THE RESEARCH PROCESS:- • 1.problem definitions: Attempt has been made to understand the

brand impression of “RELIANCE LIFE INSURANCE” in relation to other brands in the Life Insurance market & to motivate more & more people to join “RELIANCE” as Advisors.

2.data collection: The data used in this study has been primary as well as secondary.

The Primary Data has aided to understand the response & attitude of different segment.

Secondary Data collected from various literature, report & also various websites have helped to draw up the life insurance industry profile.

3.research design: Selection is made regarding the method of research to be adopted in the study. Here the methods used are Observation Method & Personal Interviews.

4.observational method: In this method information is collected by personal observation of the different segments of people during the interview process which reveals about their behavioral pattern.

PRESENT MARKET SHARE OF VARIOUS LIFE INSURANCE

COMPANY

Companies Market Share in (%)

CompaniesMarket Share in (%)

LIC 75.5 Max New York

1

ICICI Pru Life 6 Tata AIG 1Rel. Life Insu 10.3 Bajaj Allianz 2HDFC Std Life

2

Birla Sun life 2

FINDINGS REGARDING INTERNAL FACTORS

• 1. security consideration:- “Security” is an important criterion of human life. It is a common perception that people fear to invest in private sectors. Since last 30 years various private financial companies were formed & they cheated people by not paying their assured amount their maturity. Now a day the insecurity complex spread out all over the market. Though all of the private companies are certified by IRDA norms, still most of the common man investors are unaware about it. So people like to invest in Govt. sectors rather than private companies.

• During the survey of 220 customers, I was able to find out 98 customers who think that RELIANCE LIFE INSURANCE COMPANY is a secured concern does not cheat any way.

• 2.Reputation:- Reputation is one important factor which heavily matters if ones need to expand ones own shares in terms of business volume. Mainly by maintaining good customers relations, increasing consumer awareness & looking to satisfy customers as per their service requirements “RELIANCE LIFE INSURANCE COMPANY” can increase their reputation level.

• During my survey of 220 customers, I was able to find out only 90 customers who rated “RELIANCE LIFE INSURANCE Co” as reputed insurance company.

• 3. better offers from other companies:- People like to invest their money in those companies which are giving more benefits and profits. “RELIANCE LIFE INSURANCE Co” & all other private insurance are offering most similar kind of product benefits. So “RELIANCE LIFE INSURANCE Co” has to increase the profitability level for the customers, which will force them to invest in “INSURANCE Co” rather than other companies. RELIANCE LIFE

• • During the survey,

out of 220 customers only 93 customers satisfied with the products & their benefits offered by the “RELIANCE LIFE INSURANCE Co”.

FINDINGS REGARDING EXTERNAL FACTORS

• 1. MARKETING STRATEGIES:- •

Globalization has brought several changes in the society. Targeting some particulars segment does not bring in profitability at a greater level. “RELIANCE LIFE INSURANCE Co”, has mainly focused on one particular segment exp:- top level. This is the area where “RELIANCE” has to work upon. It has to expand its mode of operation to reach out middle level investors. If “RELIANCE LIFE INSURANCE Co” adopt this strategy then this will be helpful for the company to step one step ahead of its competitors.

SWOT ANALYSIS• Strength:- • 1.Working for Brand of

“RELIANCE”. • 2. Good Training facilities

by the company. • 3. Good administrative

setup. • 4. Wide rang of Products. • 5. Good incentive schemes

of the company. • 6. High operational

efficiency. • 7. Good back up & after

sales services by the company.

• 8. Young, enthusiastic & competent staff.

. Weakness:- 1. Low customers

relationship. 2. Reliability & assurance

are yet to be proved. 3. Consistency & credibility

are yet not tested. 4. Professional has little time

to spare for the insurance activities .

5. Very little personal involment by the professionals in providing service to the clients.

OPPORTUNITIES• 1. Huge market potential in term of insurable population vs.

insured population. It is estimated that the number of insurable population is 300 million. (India).

• 2. Insurance awareness has been man folded in the wake of opening up of the insurance sectors. So growth opportunities are very high.

• 3. Schemes are highly suitable for higher as well as lower investors.

• 4. Gives risk coverage plus multiple investment option. • 5. Information gathering & environment scanning much easier

with the help of information technology. •

• THREATS:- • Other private insurance companies are consistently improving

their services by being aggressive in their approach & attracting customers.

CONCLUSION• From the textual presentation & tables shown under ‘computation &

data analysis’ it is clear that since starting its business from the year 2005, “RELIANCE LIFE INSURANCE Co” achieved its growth in market share on 10.3% on present insurance sectors which is very much significant in compare to other private insurance competitors. But it is also true; this growth rate is far behind than the present growth rate of LIC which is 75.5% market share of insurance sectors.

• Although “RELIANCE LIFE INSURANCE Co” already captured the 49% market share in comparison to the rest other private insurance companies.

• Now to fulfill the future opportunity to increase the market potentials, “RELIANCE LIFE INSURANCE Co” should have to take relative steps. The company has an opportunity of 91.2% is captured by LIC. So at present position “RELIANCE” have to focus on the opportunity of 11% to increase the growth rate of their business.

• With the help of the questionnaire I have tried to assimilate information that can throw light on the customer’s perception.

• @ Most of interviewees were not aware of the players in the insurance sectors. Senior & Middle aged employees still believe with a Govt. Co’s as it is less risky & reliable.

• @ Most of the interviewees ranked reliability & security more important then profitability, when asked to chose a particular company.

RECOMMENDATION• @ “RELIANCE LIFE INSURANCE Co” has to set up the example

of reliability of its brands through advertisement by the celebrity persons.

• @ To attract & aware more customer, advertisement sector should be developed. Apart from T.V. & English newspapers, advertisement should be on local language newspapers, bill boards,& neon sign boards.

• @ Need positive focus on expanding its business in rich interior based.

• @ Company advisors have to take positive initiative to increase consumer awareness.

• @ To highly motivate the advisors, interaction between upper management & company advisors should be more.

• @ Upper management should focus on frequent advisor development programmed.

• @ The strategies adopted or being adopted by the private insurance companies are also to be monitored.

BIBLOGRAPHY• PRIMARY DATA: • (BOOKS):- • 1. Kotler, (Philip); Marketing Management; • 2. Saxena, (Rajen); Marketing Management; • 3. Insurance Related Books; • 4.Lewise & Thornhill; Research Methods for business

studies; • 5. Insurance Concepts, IRDA…..

• SECONDARY DATA SOURCE : (Magazines):- • • 1. Insurance Watch, issues ; • 2. India Today……..

PROFORMA OF THE QUESTIONNAIRS EXECUTED

• Name:- • Age:- • Address:- • Occupation:- • Contact no:-

• (Tick the appropriate box):- • 1. Are you aware about life insurance ? • Yes……………. No……………….. • 2. Do you feel life insurance is a must for every body ? • Yes……………. No……………….. • 3. Have you insured yourself under Life Insurance

Scheme ? • Yes……………. No……………….. • If ‘Yes’ then- • 4. Name the company / companies you have chosen.. • ……………………………………………………………..

• 5. Are you satisfied with the services you are availing from the above company /companies?

• Yes……………. No……………….. • If ‘No’ then- • 6. Will you insurance yourself in the future under Life Insurance

Scheme ? • Now……………….. Later………………… Never………………….. • 7. Do you have any existing relationship with “RELIANCE LIFE

INSURANCE Co” ? • Yes……………………. No………………………. • If ‘Yes’ then- • 8. What is your overall perception about the products of “RELIANCE

LIFE INSURANCE Co” ? • Excellent…………………. Good………………………….. • Satisfactory……………………… Poor…………………………… • 9. Would you like to build a relationship with “RELIANCE LIFE

INSURANCE Co” ? • Yes………………………… No………………………….. If ‘No’ then- 10. Reasons for not building up a relationship with “RELIANCE LIFE

INSURANCE Co” ? ………………………………………………………………………………………..

• • 11. Which prominent Indian Insurance Company will you choose ? • (Rank from 1-5, 5 being the maximum) • LIC…………………… “RELIANCE LIFE

INSURANCE”…………………… • ICICI Prudential……………………. Tata AIG………………………… • Bajaj Sunlife……………………. Birla Sunlife…………………………

• Date……………………. ……………………………………………..

• (Signature of the respondent)