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Final ProjectComparative Study of Reliance Life Insurance Amp Bajaj Allianz Life Insurance
Final ProjectComparative Study of Reliance Life Insurance Amp Bajaj Allianz Life Insurance
Create best value for Customers, Shareholders and all Stake holders.
1. RLIC closed the last financial year with New Business Premium of Rs 3513
Crores.
2. For 3 successive years, since inception, the Company has been amongst the fastest
growing Companies in the Life Insurance Industry achieving a growth rate of
28% in the last financial year against a market growth of -6%. In the Individual
Business segment, the company achieved a growth rate of 59% in terms of WRP
against the private industry growth of 1%.
3. Reliance Life has been one of the fastest gainers in market share growing from
1.9% amongst private players in Mar'06 to 10.3% as of Mar'09. This has resulted
in the Company growing to becoming the 4th largest private player in just two
years starting at position of 11.
4. The Company has been the fastest company to reach the 3 million policy mark
and was the 3rd largest private insurer in terms of Policy count in 2008-09
5. Reliance Life has accomplished a large distribution ramp-up in the Industry in a
short span of time by opening 1145 branches in just over 2 year.
6. RLIC continues to be amongst the foremost Life Insurance companies in India to
be certified ISO 9001:2000 for all the processes.
7. Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of Merit
in the Financial Services category by Council for Fair Business Practices (CFBP).
8. The Company has been the fastest company to reach the 3 million policy mark
and was the 3rd largest private insurer in terms of Policy count in 2008-09.
9. The Company has also won the DL Shah Quality Council of India Commendation
Award in the services category in feb 2008 for its work on promoting 'self help
channels for service'
LEADERSHIP TEAM
BOARD OF DIRECTORS
Gautam Doshi, Director
Gautam is the Group Managing Director of Reliance Anil Dhirubhai Ambani Group and
Director of Reliance Life Insurance Company Limited.
In his long and illustrious career spanning 30 years, Gautam has held key positions in
various organisations such as M/s. Bansi S. Mehta, RSM & Co. and Ambit Corporate
Finance Pvt. Ltd. Presently, as a Board member of various reputed public limited
companies, Gautam continues to power the industry with his profound knowledge and
expertise.
Gautam, a qualified Chartered Accountant, has served as the Chairman of the Institute of
Chartered Accountants of India for the year 198283. He was also elected to the Council
of the Institute of Chartered Accountants of India for two consecutive terms spanning
over 1992 to 1998.
HISTORY
Reliance Capital Limited announced the launch of its life insurance business on February
1, 2006. This was after obtaining the required regulatory approvals from the Registrar Of
Companies and the Insurance Regulatory and Development Authority.
It was in August 2005 that the ball was set rolling when Reliance Capital Limited, the
financial arm of Reliance Anil Dhirubhai Ambani Group (ADAG) announced the
requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited; and
the formal transfer of shares took place in October 2005. The company will issue all
policy contracts under the Reliance Life Insurance Company limited name. All the
existing policy contracts also stand transferred to the Reliance Life Insurance entity with
all the original contractual terms and commitments intact.
SWOT ANALYSIS
STRENGTHS:
Dedicated Employees.
Well Efficient Management.
Strong and popular brand name.
Adaptability to changes.
Goodwill of the company.
Transparency in service.
WEAKNESS:
Lack of good services.
Lack of awareness about insurance among people.
Less coverage in Rural Areas.
Lack of credibility among the people because Reliance life insurance being a
private player
OPPORTUNITIES:
Fast growing economy.
Increasing per capita income in India.
Saving behavior.
High growth of Traditional industry.
THREATS:
Arrival of new entrants in the insurance industry.
Cut throat competition within the industry
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CORE VALUES
Reliance Life Insurance Company Limited has some core values which are listed as
follows:
1) Result Oriented
2) Performance Driven
3) Customer Focused
4) Learning and Development Oriented
5) Employee Centric
6) Informal and Fun
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Vision
To be the first choice insurer for customers
To be the preferred employer for staff in the insurance industry.
To be the number one insurer for creating shareholder value.
Mission
As a responsible, customer focused market leader, we will strive to understand the
insurance needs of the consumers and translate it into affordable products that deliver
value for money.
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firms that wish to provide financial security to their business against the sudden loss of
partners or valuable manpower. Since there is no saving element or bonus provision, the
premium is very low.
Hence, this is a high-risk plan with a low premium.
Features: a) Purely a term plan
b) Entry age minimum 18 years and maximum 65 year
c) Maximum premium paying term is 30 year
d) Loan facility N.A.
e) Maturity amount = Sum assured
2) Reliance Whole Life Plan: This insurance policy is designed for people who do not wish to avail of any benefits
themselves but wish to create an immediate estate to protect their family by availing of
insurance cover on their life at a very low cost.
Features: a) It is a whole life insurance policy with profits
b) Low cost life cover
c) Maturity age is 85 year or 99 years last birthday as chosen
d) Maturity amount = Sum assured + Vested bonus
e) Tax benefit is available
3) Reliance Endowment Plan: Reliance Life Insurances Reliance Endowment Plan is the key to all your financial
needs. It is an inexpensive and easy way to protect you, your family or your business.
In a nutshell this plan will keep you financially prepared for all the special occasions in
your life - your daughters wedding, your childs university education or even a new
office for your business - by eliminating the burden that a shortage of money creates.
In the event of your untimely death, Reliance Endowment Plan will also assist your loved
ones through this difficult time by the financial support that it provides.
Reliance Endowment Plan also gives you the additional benefit of participating in the
companys profits, which you will receive at the end of the policy period.
Features: a) Entry age minimum is 5 year and maximum 65 year
b) Maturity age minimum is 18 year and maximum 75 year
c) Minimum premium paying term is 5 year and maximum 35 year in case of regular and
in case of single 15 year
d) Minimum sum assured is Rs. 25,000 or as determined by the minimum premium
e) Maximum sum assured is Rs. 5, 00,000 (entry age below 18 years and no limit for
entry age 18 and above)
f) Premium mode annual, half yearly, quarterly and monthly (by salary deduction only)
g) Loan up to 90% of the surrender value of the policy
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ENDOWMENT PLAN
Saving plan, which offer bonuses, are excellent long term plan with complete safety.
Our products offer additional benefits which include 4 times life cover at a little
extra cost, limited premium payment terms and compounded reversionary bonuses
making it a very good long term investment.
Invest Gain
Save Care Economy SP
Life Time Care
Super Saver
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II.
Additional Benefits:
a) Accidental Death Benefit and Disability Benefit.
b) Critical Illness Benefit and Hospital Cash Benefit.
c) Family Income Benefit: In case of death or accidental total permanent disability
of insured, all future premiums are waived and 1% of the sum assured is paid
monthly.
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HISTORY OF INSURANCE
The concept of insurance is believed to have emerged almost 4500 years ago in the
ancient land of Babylonia where traders used to bear risk of the carvan by giving loans,
which were later repaid with interest when the goods arrived safely.
The concept of insurance as we know today took shape in 1688 at a place called Lloyds
Coffee House in London where risk bearers used to meet to transact business. This coffee
house became so popular that Lloyds became the one of the first modern insurance
companies by the end of the eighteenth century.
Marine insurance companies came into existence by the end of the eighteenth century.
These companies were empowered to write fire and life insurance as well as marine. The
Great Fire of London in 1966 caused huge loss of property and life. With a view to
providing fire insurance facilities,
Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire
office.
Life insurance in its modern form came to India from England in 1818. The Oriental Life
Insurance Company was the first insurance company to be set up in India to help the
widows of European community. The insurance companies, which came into existence
between 1818 and 1869, treated
Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. The first
Indian insurance company, the Bombay Mutual Life
Assurance Society came into existence in 1870 to cover Indian lives at normal rates.
The Insurance Act, 1938, the first comprehensive legislation governing both life and nonlife branches of insurance were enacted to provide strict state control over insurance
business. This amended insurance Act looked into investments, expenditure and
management of these companies.
By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident
societies carrying on life insurance business in India. Insurance business flourished and
so did scams, irregularities and dubious investment practices by scores of companies. As
a result the government decided to nationalize the life assurance business in India. The
Life Insurance
Corporation of India (LIC) was set up in 1956. The nationalization of life insurance was
followed by general insurance in 1972.
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years for a specified premium. The policy does not accumulate cash value.
Permanent life insurance is life insurance that remains in force until the policy
matures, unless the owner fails to pay the premium when due.
Whole life insurance provides for a level premium, and a cash value table
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death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and
two years later formed a New Lloyds Coffee House that became known as the real
Lloyds. Making wagers on people's deaths ceased in 1774 when parliament forbade the
practice.
Insurance moves to America
The U.S. insurance industry was built on the British model. The year 1735 saw the birth
of the first insurance company in the American colonies in
Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored the first life
insurance corporation in America for the benefit of ministers and their dependents. And
the first life insurance policy for the general public in the United States was issued, in
Philadelphia, on May 22, 1761.
But it wasn't until 80 years later (after 1840), that life insurance really tookoff in a big
way. The key to its success was reducing the opposition from religious groups.
In 1835, the infamous New York fire drew people's attention to the need to provide for
sudden and large losses. Two years later, Massachusetts became the first state to require
companies by law to maintain such reserves. The great Chicago fire of 1871 further
emphasized how fires can cause huge losses in densely populated modern cities. The
practice of reinsurance, wherein the risks are spread among several companies, was
devised specifically for such situations.
With the creation of the automobile, public liability insurance, which first made its
appearance in the 1880s, gained importance and acceptance?
More advancement was made to insurance during the process of industrialization. In
1897, the British government passed the Workmen's Compensation Act, which made it
mandatory for a company to insure its employees against industrial accidents.
During the 19th century, many societies were founded to insure the life and health of their
members, while fraternal orders provided low-cost, members only insurance. Even today,
such fraternal orders continue to provide insurance coverage to members, as do most
labor organizations. Many employers sponsor group insurance policies for their
employees, providing not just life insurance, but sickness and accident benefits and oldage pensions. Employees contribute a certain percentage of the premium for these
policies.
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ROLE OF IRDA
MISSION
To protect the interests of the policyholders, to regulate, promote
and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto
The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act
as a strong and powerful supervisory and regulatory authority for insurance. Post
nationalization, the role of Controller of Insurance diminished considerably in
significance since the Government owned the insurance companies. But the scenario
changed with the private and foreign companies foraying in to the insurance sector. This
necessitated the need for a strong, independent and autonomous Insurance Regulatory
Authority was felt. As the enacting of legislation would have taken time, the then
Government constituted through a Government resolution an Interim Insurance
Regulatory Authority pending the enactment of a comprehensive legislation.
The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for
the establishment of an Authority to protect the interests of holders of insurance policies,
to regulate, promote and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto and further to amend the Insurance Act, 1938,
the Life Insurance Corporation Act, 1956 and the General insurance Business
(Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of
India (for life insurance business) and General Insurance Corporation and its subsidiaries
(for general insurance business). The act extends to the whole of India and will come
into force on such date as the Central Government may, by notification in the Official
Gazette specify. Different dates may be appointed for different provisions of this Act.
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The Act has defined certain terms; some of the most important ones are as follows:
Appointed day means the date on which the Authority is established under the act.
Authority means the established under this Act. Interim Insurance Regulatory Authority
means the Insurance Regulatory Authority set up by the Central Government through
Resolution
No.
17(2)/
94-lns-V
dated
the
23rd
January,
1996.
Words and expressions used and not defined in this Act but defined in the Insurance Act,
1938 or the Life Insurance Corporation Act, 1956 or the General Insurance Business
(Nationalization) Act, 1972 shall have the meanings respectively assigned to them in
those Acts. A new definition of "Indian Insurance Company" has been inserted. "Indian
insurance company" means any insurer being a company
(a)
Which
is
formed
and
registered
under
the
Companies
Act,
1956
(b) in which the aggregate holdings of equity shares by a foreign company, either by
itself or through its subsidiary companies or its nominees, do not exceed twenty-six
percent, paid up capital in such Indian insurance company
(c) Whose sole purpose is to carry on life insurance business, general insurance business
or re-insurance business?
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CURRENT SCENERIO
2.1) CURRENT SCENERIO OF THE INSURANCE INDUSTRY
With 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. 450 billion. Together with banking services,
it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per
cent of GDP and funds available with LIC for investment are 8 per cent of GDP.
Yet, nearly 80 percent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. And this
part of the population is also subject to weak social security and pension systems with
hardly any old age income security. This it is an indicator that growth potential for the
insurance sector is immense. A well-develop and evolved insurance sector is needed for
economic development as it provides long term funds for infrastructure development and
at the same time strengthens the risk taking ability. It is estimated that over the next ten
years India would require investments of the order of one trillion US dollar. The
insurance sector, to some extent, can enable investment in infrastructure development to
sustain economic growth of the country. Insurance is a federal subject in India. There are
two legislation that govern the sector - The Insurance Act-1938 and The IRDA Act-1999.
In India, insurance is generally considered as a tax-saving device instead of its other
implied long term financial benefits. Indian people are prone to investing in properties
and gold followed by bank deposits. They selectively invest in shares also but the
percentage is very small. Even to this day, Life Insurance Corporation of India dominates
India insurance sector. With the entry of private sector players backed by foreign
expertise, Indian insurance market has become more vibrant. Business is becoming
increasingly vulnerable due to wide variety of risk particularly after September 11, 2001
disaster in which twin tower located in the hearts of New York city were crashed by
terrorist attack resulting in loss of 6000 human lives as well as financial loss to the extent
of $45 billion. The impact of this terrorist attack has created new horizon of risk to the
business world today.
However, rapid changes in the global economy, development of technology and ebusiness already gathered momentum. Increased dependency on technology has
originated new risks that have resulted in well-published incidents. Computer hackers
obtaining credit card information from visa and Power-Gen, the love bug virus, cyber
extortion, web content liability, professional errors and omissions, computers and other
crimes and activities such as terrorism, kidnapping and companys executive and
extortion of money, commercial liability etc have significant impact on business resulting
in extreme financial loss, commercial embarrassment or regulatory implications.
Corporation insurance/risk managers, under the circumstances, have to demand
increasingly complex insurance products. They have to be more attentive and
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knowledgeable about emerging risks, how those risks are managed effectively and
efficiently, and how they could ultimately affect a companys financial situation and
therefore its position in the market place. In short, how such risks are managed and can
give to an insured a competitive advantage.
In the changing times, adoption of e-commerce into business models, the integration of
web-based communication and data transfer capabilities into the business operations, and
leveraging of advanced network and technology architecture for maximum benefit are the
new horizon of the risks. For the corporate insurance/risks managers, these new
exposure-cyber-risks-can lead to cyber losses, widening the interpretation of what
constitute insure property damage, particularly as it relates to information technology and
data.
All the while, organizations are tremendous pressure to reduce expenses and increase
profit margin, and cannot afford to suffer a property loss of business interruption due to
any cause (risk). How a company identifies, quantifies, qualifies and manages these new
risks exposure, in addition to the well-known tradition risks, is becoming an important
factor in creating shareholders value. This often means changing the way. Everyone in the
organization have to think about risk.
Insurance managers are seeing price levels (premium) continue to rise-albeit modestly-in
todays primarily commercial property and reinsurance markets. They are demanding that
insurers improve their risk assessment and quantification offerings so that an insured may
avail the benefit in cost (premium rate) on account of well-managed risk.
The good news for insurance managers is that as the economy evolves, insurers are
increasingly matching that evaluation with new products, services and capabilities due to
opening up the insurance market to the private players.
Insurers who are truly listening to their customers and striving to be more in tune with
their needs are responding to the fast changing corporate insurance and risk management
landscape. They are listening to their customers. They are making fresh approaches to
address the new challenges faced by insured organization by designing the new products
as per the needs. Insurers are providing value added services to insured to protect the
value created by the business.
Insurers are increasingly required to develop and expand their information technology
platforms to ensure that the vast amount of data they collect about their customers.
Insurance/risk portfolio can easily and seamlessly be transformed into valuable risk
management information. To help their customers, insurers should make better-informed
decisions. They must be able to swiftly deliver this data to their customers (insured)
anywhere in the world. Insurer are also discovering that risk assessment have to be
customized to meet policyholders new exposures and needs. The insurance industry is
stepping up and addressing these challenges in several different ways.
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If we talk the growth of Insurance industrys private players in recent years, the data will
reflect:-
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CH - 3) RESEARCH METHODOLOGY
RESEARCH DESIGN:COMPARITIVE STUDY- A comparative study has been undertaken to compare the
traditional Plans of Reliance Life Insurance with that of Bajaj Allianz life insurance.
DATA TYPE
INTRODUCTION: - Any organization whether big or small, private or public needs
different type of information to know its popularity. I have gathered secondary data and
primary data and collected information from the combination of these two data.
PRIMARY DATA: - Primary data collection method was decided for observing
working of the company and approaching the customers directly face to face .A
great care was taken while collecting the primary data to answer that it is relevant,
accurate, current and unbiased.
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RESEARCH INSTRUMENT USED:SAMPLING MEDIA: - Printed questionnaires consisting several questions were asked
to have an idea of customers view about Reliance Life Insurance plans followed by
personal questions.
FIELD WORK: - Rigorous field work was undertaken to locate the interested and
potential respondents to fulfill the objectives of the study.
THE PRIMARY OBJECTIVEOF THE STUDY:The primary objective of the research study is to have a detailed analysis of Reliance Life
Insurance bringing in focus the future prospects of the (Anil Dhirubhai Ambani group)
with relevance to the customer perception regarding the various plans and products
offered by Reliance Life Insurance.
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NO. OF RESPONDENTS
PERCENTAGE
18-30
21
42%
31-50
19
38%
51-65
10
20%
TOTAL
50
100%
RES
PONNO.
DENOF
TS
45
40
35
30
25
20
15
10
5
0
42
38
20
18 to 30
31 to 50
51 to 65
36
a)
b)
c)
d)
e)
Service
Business
Profession
Housewife
Retired
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Service
16
32%
Business
14
28%
Profession
10%
Housewife
16%
Retired
14%
TOTAL
50
100%
32
28
30
25
20
16
14
15
10
10
5
0
Service
Retired
OCCUPATION
37
a) 150000-300000
b) 300000-500000
c) Above 500000
OPTION
NO. OF RESPONDENTS
PERCENTAGE
150000-300000
24
48%
300000-500000
14
28%
Above 500000
12
24%
TOTAL
50
100%
RE
SP N
ON O.
DE OF
NT
S
48
28
24
INTERPRETATION:-The above bar graph reveals that out of the total respondents
48% lie in the income group of 150000-300000, 28% of the total respondents
belonged to the income group of 300000-500000 and 24% lie in the income group of
people earning an income of above Rs. 500000p.a.
4) FAMILY MEMBERS
38
a)
b)
c)
d)
2
3
4
Above 4
OPTION
2
3
NO. OF RESPONDENT
11
9
PERCENTAGE
22%
18%
4
Above 4
24
6
48%
12%
TOTAL
50
100%
No.
of
resp
ond
ents
48
22
18
12
4
Above 4
INTERPRETATION: The above bar graph shows that 22% of the total respondents had
a family of 2 members, 18% of them had 3 family members, 48% of them had 4 family
members, and 12% of them had the no. of family members above 4.
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b) stock
c) mutual funds
d) insurance
e) others
Option
No. of respondents
Percentage
Fixed deposits
10%
Stock
10
20%
Mutual fund
10
20%
Insurance
18
36%
others
14%
TOTAL
50
100%
Interpretation: The above pie chart shows that out of 50 respondents, 10% preferred to
invest in fixed deposits, 20% in stocks, 20% in mutual funds, 36% in insurance and 14%
in others like property, gold, etc.
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b) wealth creation
c) retirement needs
d) child education and marriage
e) protect income against disability, sickness or critical illness
Option
No. of respondents
Percentage
10
20%
Wealth creation
14
28%
Retirement needs
10%
14%
14
28%
TOTAL
50
100%
Interpretation: The above pie chart shows that out of 50 respondents, 20% of them
invest for protecting their family against premature death, 28% for creating wealth, 10%
for meeting their future retirement needs, 14% for child education & marriage and 28%
for protection against disability and sickness.
Q3. What is your main motive behind investing in life insurance?
a) tax benefit
b) savings
41
c) risk cover
Option
No. of respondents
Percentage
Tax benefits
27
54%
Savings
10%
Risk cover
18
36%
TOTAL
50
100%
Interpretation: The above pie chart shows that out of the sample respondents, 54% have
tax benefit 10% have savings and 36% have risk cover as their main motive for making
an investment in life.
No. of respondents
Percentage
16%
10%
Moderate
12
24%
25
50%
TOTAL
50
100%
Interpretation: The above pie chart shows that out of 50 respondents, 16% preferred
high risk- high gain form of investment 10% preferred low risk- low gain form of
investment, 24% preferred moderate investment and 50% preferred varied form of
investment.
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Option
No. of respondents
Percentage
YES
36
72%
NO
14
28%
TOTAL
50
100%
Interpretation: The above pie chart shows that 72% of the respondents preferred to
invest in Traditional Plans.
Option
No. of respondents
Percentage
Below 20000
41
82%
20000-40000
14%
Above 40000
4%
TOTAL
50
100%
Interpretation: The above pie chart shows that 82% of the respondents, are willing to
invest below Rs 20,000 per annum, 14% of them want to invest within Rs 20,000 per
annum to Rs 40,000 and 4% wanted to invest over and above Rs 40,000.
Q7. What factors would you consider most important before choosing an insurance
policy?
a) publicity of the company
b) reputation of the company
45
No. of respondents
Percentage
20%
25
50%
10
10%
After sale-services
10
20%
TOTAL
50
100%
Interpretation: out of the sample respondents, 20% considers publicity of the company,
50% considers reputation of the company, 10% considers quality of life advisors, and
20% considers after sales support of the company as the most important factor for
choosing an insurance company.
Q8. Which life insurance company would you prefer the most to invest in?
a) reliance life insurance (RLIC)
b) Bajaj Allianz life insurance
Option
No. of respondents
Percentage
46
RLIC
21
42%
BAJAJ ALLIANZ
29
58%
TOTAL
50
100%
Q9. If reliance life insurance, then which particular plan you would like to invest in?
a) Reliance Term Plan
b) Reliance Whole Life Plan
c) Reliance Endowment Plan
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No. of respondents
Percentage
28.58%
14.28%
42.86%
14.28%
TOTAL
21
100%
Q10. If Bajaj Allianz life insurance, then which particular plan you would like to
invest in?
I.
ENDOWMENT PLAN
a) Bajaj Allianz Invest Gain
b) Bajaj Allianz save Care Economy SP
c) Bajaj Allianz life time care
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No. of respondents
Percentage
10.35%
6
7
3
10
20.69%
24.15%
10.35%
34.46%
TOTAL
29
100%
Interpretation: Out of 29 respondents, 10.35% of them plan to invest in Bajaj Allianz- Invest
Gain, 20.69% wish to invest in Bajaj Allianz save Care Economy SP, 24.15% want to invest in
Bajaj Allianz life time care, 10.35% in Bajaj Allianz Super Saver plan and 34.46% prefer to
invest in Bajaj Allianz Cash Gain plan.
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opportunities are present everybody tends to enter the industries. This growth hence,
fetches the new competitors as well as new strategies from existing players. To sustain in
any competitive industry, the organization must adapt to existing strategies and adopt new
ones. This study will focus on the analysis of Reliance Life Insurance in comparison with
the present scenario of Bajaj Allianz Life Insurance with respect to the Traditional Plans
of both the companys. This will mainly cover the following aspects:
To know about the awareness and popularity of various Traditional Plans offered
by Reliance Life Insurance and Bajaj Allianz Life Insurance.
How Reliance Life Insurance can develop and sustain a good distribution
network.
These will provide it benefit both in terms of better market coverage as well as better
penetration.
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4.) This study was conducted by comparing the performances & products of three private
& government insurance players in insurance industry.
5.) This study was conducted to analyze the market stand of Reliance life insurance
Company limited and Bajaj Allianz Life Insurance Company Limited of India insurance
companies.
6.) This study is done to eliminate all the myths which people have in their minds
regarding Insurance Sector.
3.4) OBJECTIVES
To have a detailed understanding of Reliance Life Insurance and Bajaj Allianz
Life Insurance.
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CHAPTER 4
52
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2.) Basically people make varied form of investment for creating wealth, to protect their
families against pre-mature death and to protect income against disability, sickness or
critical illness.
3.) The main motive of the individuals investing is receives benefits U/S 10/10D. People
generally consider insurance as a tax saving device.
4.) Mostly people prefer time to time form of investment as they are not willing to take
high degree of risk.
5.) 72% of the respondents are preferred to invest in Traditional Plans.
6.) Most of the people prefer to make an annual investment up to a maximum of Rs.20,
000 per annum.
7.) When the product is like life insurance, reputation of the company, publicity of the
company & after sale services of the company matters a lot. This means that people
would choose that insurance company only, where the quality of life advisors is
satisfactory.
8.) Most people prefer to invest in Bajaj Allianz Life Insurance as compared to making an
investment in Reliance Life Insurance.
9.) The most preferable Traditional plan of Reliance Life Insurance is Endowment Plan.
10.) The most preferable plan of Bajaj Allianz Life Insurance co. is Cash Gain Plan.
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2.) Company should increase its budget on publicity so that awareness can be increased.
3.) Clarity and transparency should be provided to the customer regarding various
products.
4.) Training sessions should be planned in advance so that schedule can be provided to
the advisor in advance.
5.) Apart from the Brand Positioning in urban area, a strategy should be adopted by
Reliance to make its brand also near to middle level, or high aspirant people because they
are the main source of the business in India
6.) Awareness Camp to the sub urban area should be focused by Reliance.
7.) Some innovative technique or product is required in order to attract the consumer.
according to the risk appetite and desired rate of return. The study shows that life
insurance sector mainly invests in government bond which are low return and low risk
instrument. The investment in government bond it shows that life insurance companies
are more conservative in investment.
3.) K. Subhash has presented the history of Indias life insurance industry in three stages
before independence, after independence and post liberalization which not only provides
information but also help in analyzing the impact of these major changes. The authors
have also discussed the huge potential which exists in the rural India. The insurance
company must realize the importance of rural sector because the future lies there. The
author commented about the increasing share of private player in the existing market.
This confirms the availability of opportunity in this sector. The paper also provides the
importance of professional and focused approach which was given no importance.
4.) Tapen Sinha has discussed the various challenges and opportunities in the insurance
market. One of the very important factors which have been discussed in the study is the
importance of developing new and better products. As the scenario changes the need of
an individual also changes so any organization must understand and fulfill these needs.
The new product development requires constant research so organization must also focus
on it.
5.) Roger G. Ibbotson discusses how financial planners and advisors have recently started
to recognize that human capital must be taken into account when building optimal
portfolios for individual investors. Any investors human capital has a unique mortality
risk. However, life insurance in its forms can hedge against this mortality risk. Thus,
human capital affects both the optimal asset allocation and the optimal demand for life
insurance. This paper provides a unified framework based on human capital in order to
enable individual investors to make both decisions jointly.
6.) Rakesh Niraj study tells how the flow of information in any organization is important.
For any organization to grow, the flow of information must be good both upwards as well
as ownwards. The proper flow of information will also ensure proper flow of good and
services from organization to customer and proper flow of information from customer to
organization. The information from customers will help the organization in providing
better goods and services to the customer. For the above purpose, organization must
ensure good channel partner who can provide the organization with correct feedback.
Hence it becomes very important for any organization to acquire good channel partners.
7.) Stephen P. Robbins has discussed how group dynamics works in any organization.
The success of any organization depends on the success of its various teams and how
these teams work together. The book provides various techniques which can be used by
any organization to get result from the team effort. The conflict resolution is a major task
in any group. Various techniques which the organization can use in conflict resolution are
also discussed. Another important aspect covered is the importance of leadership in the
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organization. The various forms of leadership have been discussed and the kinds of
leadership which can be effective in particular situations are also discussed.
8.) R. Wayne Mondy has discussed the importance of training and development in any
organization. The training provides skills to perform the current job where as the
development involve learning beyond present need. The various type of training are
discussed which can be used according to the requirement. Training and development are
not only important for better performance of an individual but it also gives satisfaction.
The major factors which influence training and development are found to be management
support, commitment of trainee and trainer, complexity of the organization. The process
of developing good training plans is also provided. In another part author has discussed
the importance of right man for right job. The compensation strategies are also given
which are very crucial for ant industry.
9.) Philip Kotler has discussed the importance of channels partners. Better the channel
partners better will be the delivery model. Detailed discussion about how to design the
channel structure so that all the requirements could be fulfilled is provided. The various
issues faced by the organization while managing the channels are also given. When an
organization has more than one channel it becomes very important that all the channels
should be integrated in such a way that the organization get the best out of all. At times
due to the conflicting benefit of the different channels the conflict arise so various
strategies to manage these issues is also discussed in the chapter.
10.) Michael J. Etzel has written about the marketing of services. The marketing of
services is different from the goods because of the characteristic of service like
intangibility, inseparability, heterogeneity etc. Brief about pricing strategies is also given
in case of services. The authors have also given the impact of technological development
on the services marketing. The author has also given the importance of brand and after
sales support in case of services as perception of the customers plays an important role. In
other part of the book the authors has described the importance of distribution channels
and designing of the same. A channel partner should be consider as partner according to
discussion. The legal complications associated with channels are also discussed. These
complications are necessary to take into the consideration while managing the channels.
The conflicting interest of channels both horizontally and vertically are also taken into
the consideration.
11.) Boone has discussed about the importance of personal financial planning. The
concept of time value of money has also been elaborated. The importance of creating and
implementing budget is given under money management. The other important concepts
for financial planning like credit management and understanding taxes are also explained.
In one section the authors have discussed the importance of investment and what should
be the major considerations while making any investment. The considerations include the
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risk associated with the investment, return on the investment etc. The importance and
benefits of life insurance has also been given. The discussion also includes various legal
aspects associated with life insurance. The overview of retirement planning is also given
which includes importance and benefit of retirement planning. Various tools for proper
retirement planning are also discussed.
4.4) CONCLUSION
1.) The customers are very much sensitive towards their investment. They would like to
invest only in that insurance company which enjoys good public image along with quality
good services
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2.) The result of the survey conducted shows that Bajaj Allianz Life Insurance is the
leader in life insurance industry but Reliance Life Insurance and other private players are
giving it a close competition.
3.) The motive of the people behind investing in life insurance is the tax benefits that they
would receive under sec 80C and 10/10D.
4.) In Life Insurance industry, the after sales support of the company is as important as
the quality of life advisors.
4.5) LIMITATIONS
There were some limitations faced during the study as discussed below:
Since the study was taken for two months, so there was a constraint of time and
effort.
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The study was limited only to some of the Delhi regions so the results may be
biased.
Questionnaire was given to 125 people however only 50 responded to it, which is
very small for such type of study.
The biasness of consumer or responses error cannot be eliminated.
Most of the people are not aware about the Importance and the necessity of
insurance in their life.
Adverse perception of the people towards insurance sector- People consider
insurance as a tax saving device.
Lack of awareness about the earning opportunity in the insurance sector.
4.6) BIBLIOGRAPHY
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www.reliancelifeinsurance.com
www.adagroup.com
www.irda.com
www.bajajallianzlifeinsurance.com
www.allianzbajaj.com
4.7) ANNEXURE
QUESTIONNAIRE
A comparative analysis of consumer perception regarding Traditional plans of
Reliance Life Insurance with that of Bajaj Allianz Life Insurance.
NAME: ___________________________
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PERSONAL DETAILS
1) AGE:_________________
1) OCCUPATION:______________
2) INCOME:___________________
3) FAMILY MEMBERS:_________
Q1. Where do you prefer to invest?
a) Fixed deposits
b) Stock
c) Mutual funds
d) Insurance
e) Others
Q2. What are your priorities for investment?
a) Protecting your family against pre-mature death
b) Wealth creation
c) Retirement needs
d) Child education and marriage
e) Protect income against disability, sickness or critical illness
Q3. What is your main motive behind investing in life insurance?
a) Tax benefit
b) Savings
c) Risk cover
Q4. What kind of investment do you prefer?
a) High risk high gain
b) Low risk low gain
c) Moderate
d) Vary times to times
Q5.Are you interested to invest in Traditional Plans?
a) Yes
b) No
Q6. What is your level of annual investment?
a) below 20000
b) 20000-40000
c) above 40000
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Q7. What factors would you consider most important before choosing an insurance
company?
a) publicity of the company
b) reputation of the company
c) quality of life advisors
d) after sales-supporting of the company
Q8. Which life insurance company would you prefer the most to invest in?
a) Reliance life insurance
b) Bajaj Allianz life insurance
Q9. If reliance life insurance, then which particular plan you would like to invest in?
a) Reliance Term Plan
b) Reliance Whole Life Plan
c) Reliance Endowment Plan
d) Reliance Special Endowment Plan
Q10. If Bajaj Allianz life insurance, then which particular plan you would like to
invest in?
I.
ENDOWMENT PLAN
a) Bajaj Allianz Invest Gain
b) Bajaj Allianz save Care Economy SP
c) Bajaj Allianz life time care
d) Bajaj Allianz Super Saver plan
II. MONEY BACK PLAN
a) Bajaj Allianz Cash Gain plan
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