sales and distribution of financial product of reliance life insurance

A Project Report on the Topic of

“Sales and Distribution of Financial Product”

In

Submitted In Partial Fulfillment

Of the

Requirement of Master Degree in Business Administration

(2008 – 2010)

SUBMITTED BY

SUMIT MIDHA

MBA IInd SEMESTER

SAS INSTITUTE OF IT & RESEARCH MOHALI

Serial No. Topics Page No.

1. PERFACE 4

2. ACKNOWLEDGEMENT 6

3. DECLARATION 7

4. SCOPE OF THE STUDY 8

5. EXECUTIVE SUMMAR 9

6. THE INSURANCE INDUSTRY IN INDIA AN

OVERVIEW 10

7. HISTORICAL PERSPECTIVE 11

8. KEY MILESTONE 13

9. INDUSTRY REFORMS 14

10. PRESENT SCENARIO LIFE INSURANCE INDUSTRY

IN INDIA 15

11. LIFE STAGE IN LIFE INSURANCE 17

12. NEED ANALYSIS IN LIFE INSURANCE 18

13. LIFE STAGE EXAMPLE 19

14. COMPANY PROFILE 20

15. FOUNDER 21

16. BOARD OF DIRECTORS 23

17. ABOUT RELIANCE 26

18. CORPORATE OBJECTIVES 27


19. CORPORATE MISSION 28

20. OTHER COMPETITIORS 31

21. RELIANCE POLICIES 38

22. OBJECTIVE OF STUDY 44

23. RESEARCH METHODOLOGY 45

24. MARKETING STRATEGIES OF THE

COMPANY 49

25. RESULT ANALYSIS & INTERPRETATION 50

26. CONCLUSION 73

27. SUGGESTION 74

28. QUESTIONNAIR 75

29. BIBLIOGRAPHY 80


The liberalization of the Indian insurance sector has been the

subject of much heated debate for some years. The policy

makers where in the catch 22 situation wherein for one they

wanted competition, development and growth of this insurance

sector which is extremely essential for channeling the

investments in to the infrastructure sector. At the other end the

policy makers had the fears that the insurance premium, which

are substantial, would seep out of the country; and wanted to

have a cautious approach of opening for foreign participation in

the sector.

As one of the rare occurrences the entire debate was put on the

back burner and the IRDA saw the day of the light thanks to the

maturing polity emerging consensus among factions of different

political parties. Though some changes and some restrictive

clauses as regards to the foreign participation were included

the IRDA has opened the doors for the private entry into

insurance.

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

the market will present multitude of challenges and

opportunities. But the key issues, possible trends, opportunities

and challenges that insurance sector will have still remains


under the realms of the possibilities and speculation. What is

the likely impact of opening up India’s insurance sector?

The large scale of operations, public sector bureaucracies and

cumbersome procedures hampers nationalized insurers.

Therefore, potential private entrants expect to score in the

areas of customer service, speed and flexibility. They point out

that their entry will mean better products and choice for the

consumer. The critics counter that the benefit will be slim,

because new players will concentrate on affluent, urban

customers as foreign banks did until recently. This seems to be

a logical strategy. Start-up costs-such as those of setting up a

conventional distribution network-are large and high-end niches

offer better returns. However, the middle-market segment too

has great potential. Since insurance is a volumes game.

Therefore, private insurers would be best served by a middle-

market approach, targeting customer segments that are

currently untapped


I would like to thank my project guide Mr. SUMIT NAGPAL ,

Sales Development Manager RELIANCE Life Insurance, Malout

for guiding me through my summer internship and research

project. His encouragement, time and effort are greatly

appreciated.

I would like to thank Prof. JASNOOR KHERA, for supporting

me during this project and providing me an opportunity to learn

outside the class room. It was a truly wonderful learning

experience.

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

help and constant support this project would not have been

possible.

Lastly I would like to thank all the respondents who offered

their opinions and suggestions through the survey that was

conducted by me in Malout.

Once again my gratitude to the RELIANCE Life insurance. For

their kind co-operation.


I SUMIT MIDHA DOING MBA BATCH 2008-10 of “SAS INSTITUTE

OF IT AND RESEARCH, MOHALI” hereby declare that the

summer training report entitled “INSURANCE SECTOR” IN

RELIANCE LIFE INSURACNE is an original word and the same

has not been submitted to any other institute for the award of

any other degree.


Signature of candidate

SUMIT MIDHA

The scope of the study refers to the job that to know about the

activities of the organization. The study means that the analysis

of the products of the company on which he/she has to focus.

During the summer training the volunteer need to find out the

corporate strategies of the running company and The mile stone

which the company has covered during its journey. In the summer

training, it is necessary for the student that he /she involve with

the experience guys to get the knowledge about the company.

That is how the company has got the success, Or if it is going in

the loss, why.

In my training period I have found that the reliance group is the

biggest group in Indian companies. I felt that I can learn the more

in the Reliance Life Insurance.

Reliance Life Insurance is the part of the Reliance Capital Limited

which is a growing company in the financial products.

Reliance Anil Dhirubhai ambani group is also deals in

communication, energy, natural resources, media, and

entertainment, healthcare and infrastructure.


In today’s corporate and competitive world, I find that

insurance sector has the maximum growth and potential as

compared to the other sectors. Insurance has the maximum

growth rate of 70-80% while as FMCG sector has maximum 12-

15% of growth rate. This growth potential attracts me to enter

in this sector and RELIANCE LIFE INSURANCE has given me the

opportunity to work and get experience in highly competitive

and enhancing sector.

The success story of good market share of different

market organizations depends upon the availability of the

product and services near to the customer, which can be

distributed through a distribution channel. In Insurance

sector, distribution channel includes only agents or agency

holders of the company. If a company like RELIANCE LIFE

INSURANCE, TATA AIG, MAX etc have adequate agents in

the market they can capture big market as compared to

the other companies.


Agents are the only way for a company of Insurance sector

through which policies and benefits of the company can be

explained to the customer.

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

world, Insurance happens to be a mega opportunity in India. It’s 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 country’s 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.

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

was conceived as a means to provide for English Widows.

Interestingly in those days a higher premium was charged for

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

considered more risky to cover. The Bombay Mutual Life

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

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

Indian lives.

The Oriental Assurance Company was established in 1880. The

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

trace its roots to Triton Insurance Company Limited, the first

general insurance company established in the year 1850 in

Calcutta by the British. Till the end of the nineteenth century

insurance business was almost entirely in the hands of

overseas companies.


Insurance regulation formally began in India with the passing of

the Life Insurance Companies Act of 1912 and the Provident

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

sullied insurance business in India. By 1938 there were 176

insurance companies.

The first comprehensive legislation was introduced with the

Insurance Act of 1938 that provided strict State Control over

the insurance business. The insurance business grew at a faster

pace after independence. Indian companies strengthened their

hold on this business but despite the growth that was

witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240

private life insurers and provident societies under one

nationalized monopoly corporation and Life Insurance

Corporation (LIC) was born. Nationalization was justified on the

grounds that it would create the much needed funds for rapid

industrialization. This was in conformity with the Government's

chosen path of State led planning and development.

The non-life insurance business continued to thrive with the

private sector till 1972. Their operations were restricted to

organized trade and industry in large cities. The general

insurance industry was nationalized in 1972. With this, nearly

107 insurers were amalgamated and grouped into four


companies- National Insurance Company, New India Assurance

Company, Oriental Insurance Company and United India

Insurance Company. These were subsidiaries of the General

Insurance Company (GIC).

1912: The Indian Lifesss Assurance Companies Act enacted as

the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and

non-life insurance businesses.

1938: Earlier legislation consolidated and amended by the

Insurance Act with the objective of protecting the interests of the

insuring public.

1956: 245 Indian and foreign insurers along with provident

societies were taken over by the central government and

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


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

Government of India.

Reforms in the Insurance sector were initiated with the passage

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

its incorporation as a statutory body in April 2000 has

fastidiously stuck to its schedule of framing regulations and

registering the private sector insurance companies. Since being

set up as an independent statutory body the IRDA has put in a

framework of globally compatible regulations.

The other decision taken simultaneously to provide the

supporting systems to the insurance sector and in particular the

life insurance companies was the launch of the IRDA online


service for issue and renewal of licenses to agents. The

approval of institutions for imparting training to agents has also

ensured that the insurance companies would have a trained

workforce of insurance agents in place to sell their products.

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 company’s 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).


18-25 (Unmarried)

30-45 years Couples with children

45 yrs and above Matured couple Retire

d

25-30 Marrid couples with no kids

No dependents/ liabilities

therefore need for insurance is

less

Introduction of dependents. Start

of financial planning – balance

between asset creation & protection

Peak earning age range. High asset

creation & build up of liabilities. Critical

stage for dependents Asset base build

up & liabilities reduced/ taken

care of. Need for retirement

planning more than protection.

Need for protection low.

Greater need for regular income

flow.

Endowment / ULIP’s Endowment / ULIP’s + Term Annuities

At each stage , requirements, responsibilities and Financial Needs differ


AGE STATUS INSURANCENEEDS

SUGGESTED PRODUCTS

18yrs - 25yrs Unmarried1.Go on a holiday2.Buy a new Car3.Set up a new house4.Set up Interiors5.Buy jewellery

Short Term Endowment Product

25yrs -30yrs Married

1.High Debt, high expenditure Phase2.Family dependency on your income3.Low accumulated wealth4.Need for Planning Requirement

Temporary term or whole life Product

30yrs - 45yrs Matured couple

1.Retirement Planning2.Wealth transfer or saving vehicles3.Returns on investment4.Opting for guaranteed Product

Profits or Unit Linked Endowment/Deferred annuities

60yrs and above

Post Retirement

1.Protection in case you live long2.Protection for spouse in case of death3.Wealth accumulation for children

1.Single Premium annuities2.Long term care products3.Whole life products


Hello, I am Philip, sailor. Have seen the world. Always on cruise and keep worrying about family and the loans. I need financial Protection if I do not return from one voyage

Savera has just come to our lives. As proud parents, We need to protect her as well as create her own financial standing

Endowment

Term


Few men in history have made as dramatic a contribution to

their country’s 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 India’s capital markets, the

champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of

India’s greatest wealth creator. In one lifetime, he built,

starting from the proverbial scratch, India’s largest private

sector enterprise.

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 colossus—an

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 India’s 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.

Under Dhirubhai’s extraordinary vision and leadership,

Reliance scripted one of the greatest growth stories in

corporate history anywhere in the world, and went on to

become India’s 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

world’s largest shareholder families.


Anil Dhirubhai Ambani - Chairman

Regarded as one of the foremost corporate leaders of

contemporary India, Shri Anil D Ambani, 50, is the chairman of all

listed companies of the Reliance ADA Group, namely, Reliance

Communications, Reliance Capital, Reliance Energy, Reliance

Natural Resources and Reliance Power. He is also Chairman of the

Board of Governors of Dhirubhai Ambani Institute of Information

and Communication Technology, Gandhi Nagar, Gujarat. Till

recently, he also held the post of Vice Chairman and Managing

Director in Reliance Industries Limited (RIL), India's largest private

sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-

Chief Executive Officer, and was centrally involved in every

aspect of the company's management over the next 22 years. He

is credited with having pioneered a number of path-breaking

financial innovations in the Indian capital markets. He

spearheaded the country's first forays into the overseas capital

markets with international public offerings of global depositary

receipts, convertibles and bonds. Starting in 1991, he directed

Reliance Industries in its efforts to raise over US$ 2 billion. He also

steered the 100-year Yankee bond issue for the company in

January 1997.

Amitabh Jhunjhunwala - Vice-Chairman


Shri Amitabhabh Jhunjhunwala, 51, is a Fellow Chartered

Accountant. He has vast experience in the areas of financial

services and capital markets. Shri Jhunjhunwala was appointed to

the Board on March 7, 2003 and was appointed Vice Chairman on

March 20, 2006. He is a Director on the Board of Harmony Art

Foundation and Reliance Anil Dhirubhai Ambani Group Pvt. Ltd.

Rajendra Chitale - Independent Director

Shri Rajendra P. Chitale, 46, an eminent Chartered Accountant, is

the Managing Partner of M/s M. P. Chitale & Associates. He is a

Director on boards of the National Securities Clearing Corporation

Limited, Asset Reconstruction Company (India) Ltd, Hinduja TMT

Limited, HTMT Global Solutions Ltd, Ambuja Cement Limited, SME

Rating Agency of India Limited, Ishan Real Estate PLC and

Reliance General Insurance Company Ltd. He is also a member of

the advisory board of the Insurance and Regulatory Authority of

India (IRDA). He has also served on the boards of Life Insurance

Corporation of India, Unit Trust of India, SBI Capital Markets Ltd.,

National Stock Exchange of India Ltd. and Small Industries

Development Bank of India.

Shri C. P. Jain

Shri C.P. Jain, 61, is the former Chairman and Managing Director

of NTPC Ltd. (National Thermal Power Corporation). Shri Jain has

an illustrious career spanning over four decades of contribution in

the fields of financial management, general management,


strategic management and business leadership. He is a fellow

member of the Institute of Chartered Accountants of India with an

advanced diploma in Management and is a law graduate. Shri C.

P. Jain joined the Board of NTPC in 1993 as Director (Finance), was

elevated as Chairman & Managing Director in September 2000

and superannuated in March 2006. He is Chairman of the Global

Studies Committee of World Energy Council (WEC), world's largest

energy NGO with nearly hundred member-nations. He has been

on several important committees of the Government of India,

latest being the 'Adhoc Group of Experts on Empowerment of

CPSEs'. He was Chairman of Standing Conference of Public

Enterprises (SCOPE) between April 2003 and March 2005. He is a

Director on the Board of IL & FS Infrastructure Development

Corporation and, is also a member of the Audit Advisory Board of

the Comptroller and Audit General of India.


Reliance Life Insurance Company Limited is a part of Reliance

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

Reliance Capital is one of India’s 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.


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.


“To set the standard in helping our customers manage

their financial future”.

BELOW ARE FEW OF THE PLANS THAT ARE

OFFERED BY RELIANCE LIFE INSURANCE

INSURANCE PLANS AVAILABLE

1. Products (Individual Plans)

Savings (Endowment)

2. Reliance Endowment Plan

(formerly Divya Shree)

3. Reliance Special Endowment Plan

(formerly Subha Shree)

4. Reliance Cash Flow Plan

(formerly Dhana Shree)

5. Reliance Child Plan

(formerly Yuva Shree)


http://www.reliancelife.co.in/products/ind_RCP.asp

http://www.reliancelife.co.in/products/ind_RCFP.asp

http://www.reliancelife.co.in/products/ind_RSEP.asp

http://www.reliancelife.co.in/products/ind_REP.asp

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)

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)


http://www.reliancelife.co.in/products/ebp_RCBP.asp

http://www.reliancelife.co.in/products/ebp_EDLI.asp

http://www.reliancelife.co.in/products/ebp_RCESP.asp

http://www.reliancelife.co.in/products/ind_RTP.asp

http://www.reliancelife.co.in/products/ind_RMRP.asp

http://www.reliancelife.co.in/products/ind_RGYP.asp

http://www.reliancelife.co.in/products/ind_RWLP.asp

b. Reliance Group Superannuation Policy

(formerly Group Superannuation Policy)

13. Reliance Money Guarantee Plan

Tax Benefits

INCOME TAX

SECTION

GROSS

ANNUAL

SALARY

HOW MUCH

TAX CAN YOU

SAVE?

HDFC STANDARD

LIFE PLANS

Sec. 80C Across 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

POSSIBLE

Rs37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC ,

Rs.3,399 under Sec. 80 D, calculated for a male with gross

annual income


http://www.reliancelife.co.in/products/ebp_RCPP.asp

exceeding Rs. 10,00,000.

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

tax-free, subject to the conditions laid down therein.

MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIAMAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

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 people’s 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 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

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.

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).

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India’s

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.), India’s 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. They have a national presence

with a network of 57 offices in 37 cities across India.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture

between ICICI Bank, a premier financial powerhouse and

Prudential plc, a leading international financial services group

headquartered in the United Kingdom. ICICI Prudential was

amongst the first private sector insurance companies to begin

operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). The

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

banc assurance and 150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

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

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

5.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between

Aditya Birla Group and Sun Life financial Services of Canada.

Tata AIG Life Insurance Company Ltd.

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.

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.

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.

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, marine, property and casualty, as well as

several specialized financial lines.

(1) Reliance Children Plans

What could make you happier than knowing, that your child's

future is secure? Nothing, we suppose. Which is why, Reliance

Life Insurance brings to you Reliance Secure Child Plan, a unit-

linked Insurance 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

wipe out poverty from the face of the Earth. But for them to be

able to aim for the skies, YOU NEED TO ACT NOW!

Introducing Reliance Secure Child Plan - a unique life insurance

cum savings plan. secure the future of your child.

Key Features

Insurance cover on the life of child

Your child is completely protected - we will

continue to pay the premiums even if you are not

alive

Life time income to child in the event of disability

Return Shield option to protect your investment

returns

Liquidity in the form of partial withdrawals

Capital guarantee available on maturity and on

death of the child for basic and top-up premiums


Option to package with Accidental Death and Total

and Permanent Disablement Rider, Critical

Conditions Rider and Term Life Insurance Benefit

Rider.

(2)Reliance Health + Wealth Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.

There are times when late working hours take precedence over

your health check-ups. And there are times when a visit to the

doctor seems more important than dividends on your shares. In

the rat race to make money, we often forget to take care of

ourselves.

We understand this predicament. Here is a plan that will ensure

that your wealth keeps increasing constantly and yet your

health does not take a backseat. The Reliance Wealth Health

Plan. A plan that gives you the benefits of wealth bhi. health

bhi.Life changes. And as it does, so do your priorities. After all,

the circumstances of your life can determine the type of health

coverage you need.

India has made rapid strides in the health sector. Since

Independence, life expectancy has gone up markedly and


survival rates 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

underwritten by Reliance Life Insurance Company Limited, is

designed to work in conjunction with contributions towards

savings.

Key Feature

A Unit Linked plan with Unique Savings Component

Twin benefit of market linked return and health

protection

Choose from two different plan options

Flexibility to take care of your family’s health

Flexibility to switch between funds / plan options

Option to pay Top-ups

(3) Reliance Pension Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.


Retirement means different things to different people, while

some want to relax and take a trip around the world, some

want to start up 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 the right kind of solution - A

retirement plan that allows you to save systematically and

generate the much-needed corpus to make your olden 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 Age between 45 & 70 years

Eight different investment funds to choose from

Flexibility to switch between funds

Option to pay Regular, Single as well as Top-up

premiums

Flexibility to advance / extend your Vesting Age

Tax free commutation up to one third of Fund


Value at Vesting Age

(4) Reliance Whole life insurance policy

You’ve always loved your family. As a loving person you want to

be rest assured that they will be happy, even if something were

to happen to you. With Reliance Whole Life Plan you can be

sure that your family will receive that timely financial support

they need.

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

tomorrow.

Key Features

Insurance protection till age 85

Choice of extending your insurance coverage till

age 99

Convenient Premium Payment Term

Wealth creation through bonus additions

More value for your money by way of High Sum

Assured Rebate Get Sum Assured plus Bonuses in

case of your unfortunate death


Option to add two Riders – Critical Illness and

Accidental Death Benefit and Total and Permanent

Disablement Rider

Policy Loan available after three full years

premium payment

The main of the present study of is accomplish the following

objective.

Proper understanding and analysis of life insurance

industry.


To know about brand awareness of Reliance Life

Insurance and customer’s preference about Reliance

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 Reliance Life Insurance well reputed company

in India it’s 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.

TITLE:


To determine customer-buying behavior with a focus on market

segmentation for Reliance Life Insurance.

TITLE JUSTIFICATION :

The above title is self explanatory. The study deals mainly

with studying the buying pattern in the insurance industry

with a special focus on Reliance life Insurance. The various

segments of the markets divided in terms of Insurance Needs,

Age groups , Satisfaction levels etc will also studied.

OBJECTIVE

Objective One

To determine reasons behind opting for an insurance.

To provide the company with information of customer's

Insurance policy if they have any and reasons for opting for

that particular policies.

To know the most preferred policy.

Objective Two

To determine customers perception towards private

insurance companies and their expectation form private

insurance companies.

To determine the feedback on services provided by any

other insurance agent.


To study the types of benefits provided by insurance

services.

To determine the use of Internet for valuable information

and decision-making process.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent

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

and are vying to gain market share in this rapidly improving

market. The study deals with Reliance in focus and the various

segments that it caters to. The study then goes on to evaluate

and analyse the findings so as to present a clear picture of

trends in the Insurance sector.

SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the

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

the trends across the industry. The significance for the industry

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

rapiddly changing and evolving sector. People are only

beginning to wake up to it’s 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

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 customer’s 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.

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.

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.


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.

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.

DATA ANALYSIS & INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANY’S NAMENO.OF RESPONDENT

SHARE (%)

L.I.C. 78 78

RELIANCE LIFE INSURANCE

3 3

ICICI PRUDENTIAL 10 10

SBI LIFE 7 7

HDFC 2 2

TOTAL 100 100


78

310

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.

DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

BENEFITSNO.OF RESPONDENTS

SHARE (%)

Cover Future Uncertainty

55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100


55%20%

25% Cover Future Uncer-tainty

Tax Deductions

Future Investment

INTERPRETATION

55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy.

Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.

DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS

FEATURE NO.OF RESPONDENTS

SHARE (%)

Money Back Guarantee

15 15

Larger Risk Coverance

37 37


55%20%

25% Cover Future Uncer-tainty

Tax Deductions

Future Investment

Easy Access to Agents

7 7

Low Premium 30 30

Company’s Reputation

11 11

TOTAL 100 100

15%

37%

7%

30%

11%

FEATURES OF INSURANCE POLICY

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.

DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS

POLICY TYPE NO. OF RESPONDENTS

SHARE (%)

LIFE POLICY 75 75

NON LIFE POLICY

25 25

BOTH 45 45


75

25

45

NATURE OF POLICY

LIFE POLICY

NON LIFE POLICY

BOTH

INTERPRETATION

75% of the respondents have Life Insurance Policy while 45% have both. (The % is calculated out of 280 positive response)

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF RESPONDENT

S

SHARE (%)

A saving tool 81 81%

A tax saving device 74 74%


A tool to protect your family

100 100%

81

74

100

Chart Title

S A V ING TOOL

TA X S A V ING TOOL FA MILY P ROTE CTION


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.

But 100% of the respondents are with the view that Insurance is a tool to protect your family.

DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Yes 70 70%

No 30 30%

Total 100 100%

INTERPRETATION


70%

30%

Yes

No

Of the sample size of 400 surveyed respondents 70% of the respondents are having Insurance policy.

30% of the respondents are either not having any Insurance policy at present or their policy is already matured.

And at present 100% of the respondents are with the view that Insurance is a tool to protect your family.

DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO. OF RESPONDEN

TS

SHARE (%)

Customer approached Insurance company/Agent

45 45%

Company/agent approached customer

55 555

Total 100 100%

INTERPRETATION


45%56%

Customer approached Insurance company/Agent

Company/agent approached customer

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

Whereas, 55.5% of the respondents were approached by the Company /Agent.

DATA SHOWS REASONS BEHIND FOR INSURANCE


S

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.

DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF RESPONDEN

TS

SHARE (%)

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%


80

80

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.

DATA SHOWS SATISFACTION OF +RESPONDENTS WITH RESPECT TO SERVICE AGENT


TS

SHARE (%)

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%


60%

40%

Satisfied Not satisfied Not Responded

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.

DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX


S

SHARE (%)

Paying tax 100 100%

Not paying tax - 0%

Total 100 100%


45.00%

55.00%

Satisfied Not satisfied


100%

Paying tax Not paying tax

INTERPRETATION

Of the sample size of 400 respondents, all the respondents are paying tax.

DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX SAVING

INVESTMENTS NO. OF RESPONDENT

S

SHARE (%)

LIC 51 51%

NSC 33 33%

Bonds 32 32%

PPF 25 25%

PF 21 21%

EPF 11 11%


INTERPRETATION

51% of the respondents save their tax by investing in LIC, which is the highest among all Investment. This shows that most people for getting taxes benefits invest in LIC.

33.25% of the respondents do their tax saving by investing in NSC.

32.25% of the respondents to their tax saving by investing in bonds.

DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE

NO. OF RESPONDEN

TS

SHARE (%)

Fixed Assets 75 75%

Bank deposits 11 11%

Jewellery 25 25%

Securities i.e. bonds, 40. 40%


51

3332

25

21

11

LIC NSC BOND PPF PF EPF

MFs

Shares 10 10%

Insurance 70 70%

INTERPRETATION

75.25% of the respondents as with the view that Fixed Assets is the best form of investment for securing their future.

70.5% of the respondents are with the perception that Insurance is the best form of investment for securing their future, which is one of the highest and this shows that insurance is an important key for securing your future.

DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR INVESTMENT


TS

SHARE (%)

Saving & Returns 100 100%

Security 90 90%

Tax benefits 71. 71.%


100

90

71

Saving & Returns Security Tax benefits

75

11254010

70

Fixed Assets

Bank deposits

Cash & Jewellery

Securities i.e. bonds, MFs

Shares

Insurance

INTERPRETATION

100% of the respondents intent to gain saving and returns from their investment.

90% of the respondent’s intent to gain security from their investments.

Whereas, 71.75% of the respondent’s intent to gain tax benefits from their investments.

DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE


SHARE (%)

After 25 years 29 29%

After 35 years 10 10%

After 45 years 0 0%

Anytime 60 60%


100

90

71

Saving & Returns Security Tax benefits

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.

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.

DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES


S

SHARE (%)

Rigid plans 67 67%

Non user friendly 29 29%

Unsatisfactory 26 26%


29%

10.10%61%

After 25 years After 35 years After 45 years Anytime

services

Non Aggressive 35 35%

Satisfactory 24 24%

Good 10 10%

Very good 0 0%


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.


67

2926

33

24

10

Inflexible plans Non user friendly Unsatisfactory services Non Aggressive

Satisfactory Good Very good

DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN INSURANCE COMPANY

RESPONSE NO. OF RESPOND

ENTS

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.

DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS


SHARE (%)

Planning 87 87%

Not planning 13 13%

Total 100 100%


82

71

81

49

A trusted name Friendly service & responsiveness Good plansAccessibility

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.


87.0%

13.0%

Planning Not planning

DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS


TS

SHARE (%)

Yes 43 43%

No 44 44%

Uncertain 13 13%

Total 100 100%


43%

44%

13%

Yes No Uncertain

INTERPRETATION

The interested customers i.e. 43% are ready to go for insurance even away from a city if services and products are worthwhile, which again is a good prospect (potential) for Reliance Life Insurance to take them on their favor.


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 it’s 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.


According the survey only 42% people are insured in Malout 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 Malout in that 42% there are 82 % people are under insured and other 18% people are fully insured according to their income so that is also plus point for insurance sector to capture the market


1. ARE YOU EMPLOYED?YES NO (If YES, only then proceed)

2. DO YOU HAVE ANY INSURANCE POLICY?YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick)a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______

(Specify)

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

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONS

c) FUTURE INVESTMENT

d) ANY OTHER _________ (Specify)


7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY 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)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S SCENARIO IS NOT ESSENTIAL?

_____________________________________________________

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?

a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER

12. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING


13. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

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


17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENIFITS

18. WHAT’S 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


20. ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

21. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?

a) YES

b) NO

c) UNCERTAIN

THANK YOU

NAME:_________________________

ADDRESS:______________________

______________________________

OCCUPATION:___________________


1. BOOKS/MAGAZINES REFFERED:

STUDY GUIDE- PRINCILES & PRACTICES OF LIFE /

GENERALINSURANCE, by AIMA.

Books published by INSURANCE INSTITUTE OF INDIA

LIFE-INSURANCE, by Mc GILL

INSURANCEWATCH.

MONEYOUTLOOK.

2. WEBSITES REFFERED:

WWW.RELIANCELIFE.CO.IN

WWW.CIFAINSURANCE.COM

WWW.MONEYOUTLOOK.COM

WWW.INSURANCE.IND.COM

3. REPORTS/ARTICLES REFFERED:

REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY….

Dec2005.

BRIEF PROFILE OF LIC, INDIA…Dec 2006.

REPORT: COPING WITH COMPETITION…Jan2007


http://WWW.INSURANCE.IND.COM/

http://WWW.MONEYOUTLOOK.COM/

http://WWW.CIFAINSURANCE.COM/

sales and distribution of financial product of reliance life insurance

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