Contact for more project 09413991847 SUMMER TRAINING PROJECT REPORT ON “RELIANCE LIFE INSURANCE" Submitted to

RAJASTHAN UNIVERSITY, Jaipur In the partial fulfillment Of the award of the degree of BBA (Bachelor of Business Administration)

Project guide:Ms. Mridula Mudgal Sr. Lecturer

Submitted by:Gauarv Khandelwal BBA Part III

Alwar Managemant Studies North extension road Alwar
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IET Groups of institutions PREFACE
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.
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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

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I would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible. time and effort are greatly appreciated. Lastly I would like to thank all the respondents who offered their opinions and suggestions through the survey that was conducted by me in Alwar. 4 . Deepak Mishra. His encouragement. Nitin Kataria . For their kind co-operation. Once again my gratitude to the RELIANCE Life insurance.ACKNOWLEDGEMENT I would like to thank my project guide Mr. Alwar for guiding me through my summer internship and research project. Sales Development Manager RELIANCE Life Insurance. I would like to thank Prof. It was a truly wonderful learning experience. for supporting me during this project and providing me an opportunity to learn outside the class room.

DECLARATION I VIKAS KHANDELWAL OF BBA III year of “Lords international College” 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 5 .

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. I find that insurance sector has the maximum growth and potential as compared to the other sectors. 6 . In Insurance 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. distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE. TATA AIG.Gaurav Khandelwal EXECUTIVE SUMMARY In today’s corporate and competitive world. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate.

7 . 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.MAX etc have adequate agents in the market they can capture big market as compared to the other companies.

CHAPTER I INDIAN INSURANCE INDUSTRY “AN OVERVIEW” 8 .

The gross premium collection is nearly 2% of GDP and funds available with LIC for investments are 8% of the GDP. 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. Insurance happens to be a mega opportunity in India. 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.41 billion (for the financial year 2006 – 2007). 9 . Together with banking services.THE INSURANCE INDUSTRY IN INDIA AN OVERVIEW With the largest number of life insurance policies in force in the world. it adds about 7% to the country’s Gross Domestic Product (GDP). It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 1560.

The General insurance business in India. as Indian lives were considered more risky to cover. can trace its roots to Triton Insurance Company Limited.Indian lives. 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.HISTORICAL PERSPECTIVE The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. 10 . The Bombay Mutual Life Insurance Society started its business in 1870. on the other hand. the first general insurance company established in the year 1850 in Calcutta by the British. Interestingly in those days a higher premium was charged for Indian lives than the non . It was the first company to charge the same premium for both Indian and non-Indian lives. Till the end of the nineteenth century insurance business was almost entirely in the hands of overseas companies. The Oriental Assurance Company was established in 1880. By 1938 there were 176 insurance companies.

Indian companies strengthened their hold on this business but despite the growth that was witnessed. brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Their operations were restricted to organized trade and industry in large cities. With this. into New four India companiesAssurance National Company. insurance remained an urban phenomenon. nearly 107 insurers were amalgamated and grouped Company. The insurance business grew at a faster pace after independence. This was in conformity with the Government's chosen path of State led planning and development.The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over the insurance business. Nationalization was justified on the grounds that it would create the much needed funds for rapid industrialization. Insurance Oriental Insurance Company and United India Insurance Company. The general insurance industry was nationalized in 1972. The Government of India in 1956. The non-life insurance business continued to thrive with the private sector till 1972. 11 .

1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of protecting the interests of the insuring public. 5 crore from the Government of India.with a capital contribution of Rs. 1956: 245 Indian and foreign insurers along with provident societies were taken over by the central government and nationalized. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.LIC Act 1956. KEY MILESTONES 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. LIC was formed by an Act of Parliament.These were subsidiaries of the General Insurance Company (GIC). 12 .

INDUSTRY REFORMS Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. 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. 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 13 .

75% to 81. 1560.7 billion have poured into the Indian market and 19 private life insurance companies have been granted licenses. 8. The restriction on these companies is that they are not allowed to have more than a 26% stake in a company’s ownership.41 billion during the fiscal year 2006-2007. The 17 private insurers increased their market share from about 15% to about 19% in a year's time.LIFE INSURANCE INDUSTRY IN INDIA The life insurance industry in India grew by an impressive 47. The share of LIC for this period has further come down to 75 percent.would have a trained workforce of insurance agents in place to sell their products. while the private players have grabbed over 24 percent. Though the total volume of LIC's business increased in the last fiscal year (2006-2007) compared to the previous one. With the opening up of the insurance industry in India many foreign players have entered the market.91%. with premium income at Rs. The figures for the first two months of the fiscal year 2007-08 also speak of the growing share of the private insurers.38%. Since the opening up of the insurance sector in 1999. foreign investments of Rs. 14 . its market share came down from 85. PRESENT SCENARIO .

Indians. who had always seen life insurance as a tax saving device. multi – purpose insurance plans. smart marketing.wikipedia. Some of these products include investment plans with insurance and good returns (unit linked plans).com) CHAPTER II 15 . (www. are now suddenly turning to the private sector and snapping up the new innovative products on offer. child plans and money back plans. pension plans.Innovative products. and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected.

Sh. there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary. • As with all great pioneers. the unmatched strategist. Fewer still have left behind a legacy that is more enduring and timeless. the 16 .PROFILE OF ORGANIGATION INTRODUCTION TO THE COMPANY COMPANY PROFILE OF RELIANCE LIFE INSURANCE FOUNDER Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the founder of Reliance. Dhirubhai H Ambani.

the leader of men. 17 . • But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In 1977. the champion of shareholder interest.000). he had a seed capital of barely US$ 300 (around Rs 14. In one lifetime. he built. Over the next three and a half decades. the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. the architect of India’s capital markets.proud patriot.000 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list. he converted this fledgling enterprise into a Rs 60. starting from the proverbial scratch. India’s largest private sector enterprise. • When Dhirubhai embarked on his first business venture. when Reliance Textile capital Industries Limited first went public. the first ever Indian private company to do so. • Dhirubhai is widely regarded as the father of India’s markets.

Reliance scripted one of the greatest growth stories in corporate history anywhere in the world. in the process making millionaires out of many of the initial investors in the Reliance stock. and went on to become India’s largest private sector enterprise. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. promising them. Dhirubhai always the interests of the ordinary shareholder kept uppermost in mind. substantial return on their investments.• 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. • Through out this amazing journey. 18 . and creating one of the world’s largest shareholder families. • Under Dhirubhai’s extraordinary vision and leadership. in exchange for their trust.

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proprietary investments. in terms of net worth. life and general insurance. Reliance Capital has interests in asset management and mutual funds. 20 .Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services companies. • 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.ABOUT RELIANCE Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. 1934. private equity and other activities in financial services. stock broking. of the Reliance . • 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. • Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporates. and ranks among the top 3 private sector financial services and banking companies.

we strongly believe that as life is different at every stage. • 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. backed by competent marketing and customer services. 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. 21 . in the best possible way.CORPORATE OBJECTIVE At Reliance Life Insurance.

BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY RELIANCE LIFE INSURANCE INSURANCE PLANS AVAILABLE 1. Reliance Whole Life Plan (formerly Nithya Shree) Pensions 22 . Reliance Child Plan (formerly Yuva Shree) 6. 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.CORPORATE MISSION • “To set the standard in helping our customers manage their financial future”.

Risk / Protection 10. Pensions Reliance Group Gratuity Policy (formerly Group Gratuity Policy) Reliance Group Superannuation Policy (formerly Group Superannuation Policy) Reliance Money Guarantee Plan 13. Reliance Term Plan (formerly Raksha Shree) Products (Group / Corporate Plans) 11. 23 . a. Reliance Golden Years Plan (formerly Bhagya Shree) Investments 8. Reliance Market Return Plan (formerly Kanaka Shree) 9. b. Risk (Protection) Reliance Group Term Assurance Policy (formerly Group Term Assurance Policy) Reliance EDLI Scheme (formerly EDLI Scheme) 12.7.

Rs37.1. 10 (10)D Under Sec.Tax Benefits INCOME SECTION TAX GROSS ANNUAL SALARY Sec. subject to the conditions laid down therein. on plans.00. saved Investment Rs.00.990 All the pension plans.389 POSSIBLE Rs.000.00. TOTAL SAVINGS conventional plans.000.990 All the life insurance Slabs saved investment Rs. slabs. 1.990 under Sec. 24 . 80C HOW MUCH HDFC STANDARD TAX CAN YOU LIFE PLANS SAVE? Across All income Upto Rs. 80 CCC Across all income Upto Rs. 33. Sec. Rs.399 All the health riders with the on insurance of available Investment Rs. 80 CCC .000.399 under Sec. the benefits you receive are completely tax-free. on of Sec. 80 D Across all income Upto slabs saved Rs. 10(10D). 3. of Sec. 33. calculated for a male with gross annual income exceeding Rs. 10.000.3. 10. 33. 80 D. 80C and under Sec.

Calcutta. The Corporation also transacts business abroad and has offices in Fiji. operates through 100 divisional offices in important cities and 2. Ken-India Assurance Company Limited.2. Chennai. Kanpur and Bhopal.048 branch offices. Hyderabad. Delhi. Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance. LIC with its central office in Mumbai and seven zonal offices at Mumbai.2 OTHER COMPETITIORS MAJOR 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. 25 .59 lakh active agents spread over the country. namely. LIC has 5.

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 had a total income from premium and investments of $ 5 Billion while GIC recorded a net premium of $ 1. United Oriental Assurance Company Limited.7 per cent growth in the rest of Asia (3. 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.22 per cent per annum • General Insurance Corporation of India (GIC) 26 .Nairobi.4 per cent in the US).4 per cent in Europe. During the last 15 years. Compounded annual growth rate for Life insurance business has been 19. E. Bahrain. Kuala Lumpur. and Life Insurance Corporation (International). LIC's income grew at a healthy average of 10 per cent as against the industry's 6. In 1995-96.3 Billion.C. 1.K. It has also entered into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension policies in U.

(iii) Oriental Insurance Company Limited. (i) National Insurance Company Limited. (ii) New India Assurance Company Limited. were grouped into four operating companies. the industry is presently operating in 17 countries directly through branches or agencies and in 14 countries through subsidiary and associate companies. Besides the domestic market. with effect from Dec'2000. 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. and (iv) United India Insurance Company Limited. namely. these subsidiaries have been de-linked from the parent company and made as independent insurance companies). IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO INSURANCE BUSINESS: - 27 . (However.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.

The new players have improved the service quality of the insurance.The introduction of private players in the industry has added to the colors in the dull industry. 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. is one of India’s leading private life insurance companies. HDFC Standard Life Insurance Company Ltd. HDFC Standard Life Insurance Company Ltd.). a leading provider of financial services from the United Kingdom. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd. Their 28 . India’s leading housing finance institution and The Standard Life Assurance Company. which offers a range of individual and group insurance solutions. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. LIC market share has decreased from 95% (2002-03) to 82 %( 2004-05). The market share was distributed among the private players. 1. 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. As a result LIC down the years have seen the declining phase in its career.

ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval 29 . Max New York Life Insurance Co. 2.000 lives have been covered through our group business tie-ups. They have managed to cover over 11.000 individuals out of which over 3. 672.Max India Limited.cumulative premium income. Max New York Life Insurance Company Limited is a joint venture that brings together two large forces . ICICI Prudential Life Insurance Company Ltd. Apr-Nov 2005. a global expert in life insurance. With their various Products and Riders. there are more than 400 product combinations to choose from.00. including the first year premiums and renewal premiums is Rs. a premier financial powerhouse and Prudential plc. 3. They have a national presence with a network of 57 offices in 37 cities across India. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank.3 for the financial year. a multi-business corporate.40. Ltd. together with New York Life International. a leading international financial services group headquartered in the United Kingdom.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Life financial Services of Canada. Kotak Mahindra Old Mutual Life Insurance Ltd. (KMBL). and Old Mutual plc.000 advisors. The company has a network of about 56. is a joint venture between Kotak Mahindra Bank Ltd.  Tata AIG Life Insurance Company Ltd. as well as 7 banc assurance and 150 corporate agent tie-ups.from Insurance Regulatory Development Authority (IRDA). Om Kotak Mahindra Life Insurance Co. 5. Ltd.  SBI Life Insurance Company Limited 30 .Birla Sun Life Insurance Company Ltd. 4.

Bajaj Allianz General Insurance Company Limited 31 . ING Vysya Life Insurance Company Private Limited  Allianz Bajaj Life Insurance Company Ltd. Ltd. Royal Sundaram Alliance Insurance Company The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance Limited started its operations from March 2001.  AMP SANMAR Assurance Company Ltd. 1. The company is Head Quartered at Chennai. Ltd.  Metlife India Insurance Company Pvt. and has two Regional Offices. 2. one at Mumbai and another one at New Delhi.  Dabur CGU Life Insurance Company Pvt.

while Fairfax Financial Holdings is a diversified financial corporate engaged in 32 . 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. 3. The Company has an authorized and paid up capital of Rs 110 crores. 2001 to conduct General Insurance business (including Health Insurance business) in India. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd. stability and strength. Both enjoy a reputation of expertise. AG. Bajaj Auto holds 74% and the remaining 26% is held by Allianz. Germany. ICICI Bank is India's second largest bank.Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany.

general insurance. Cholamandalam General Insurance Company Ltd. Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of the Murugappa Group & Mitsui Sumitomo. Lombard Canada Ltd. insurance claims management and investment management. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001. is one of Canada's oldest property and casualty insurers. 33 . a group company of Fairfax Financial Holdings Limited. 4. reinsurance.

formed from the Tata Group and American International Group. Pune. property and casualty. Delhi. offers the complete range of insurance for automobile. Indore. Inc. TATA AIG General Insurance Company Ltd. Ahmedabad. The company has a pan-Indian presence with offices in Chennai. personal accident.4 lakh policies in its first calendar year of operations. Tata AIG General Insurance Company Ltd. travel. Tata AIG combines the strength and integrity of the Tata Group with AIG's international expertise and financial strength. 34 . Coimbatore. Hyderabad. 2001. Kochi.Chola-MS commenced operations in October 2002 and has issued more than 1. Tata AIG General Insurance Company. home. (AIG). Mumbai. Chandigarh. 5. energy. marine. is a joint venture company. as well as several specialized financial lines. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake. Kolkata and Vizag. which started its operations in India on January 22. Bangalore.

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. 35 .2. Which is why. that your child's future is secure? Nothing. because his tomorrow is in safe hands. we suppose.3 Reliance Policies (1) Reliance Children Plans What could make you happier than knowing.

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.a unique life insurance cum savings plan.• • 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. YOU NEED TO ACT NOW! Introducing Reliance Secure Child Plan . 36 . secure the future of your child. (2)Reliance Health + Wealth Policy UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. But for them to be able to aim for the skies. Key Features Insurance cover on the life of child Your child is completely protected .

We understand this predicament. health bhi. the circumstances of your life can determine the type of health coverage you need. India has made rapid strides in the health sector. 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. 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 37 . Infectious diseases continue to claim a large number of lives. A plan that gives you the benefits of wealth bhi. The Reliance Wealth Health Plan. still critical health issues remain. Here is a plan that will ensure that your wealth keeps increasing constantly and yet your health does not take a backseat. a health insurance plan underwritten by Reliance Life Insurance Company Limited. Life changes. Reliance Wealth + Health Plan. is designed to work in conjunction with contributions towards savings.There are times when late working hours take precedence over your health check-ups. After all. Since Independence. we often forget to take care of ourselves. so do your priorities. life expectancy has gone up markedly and survival rates have also increased. And as it does.

The Reliance Super Golden Years Plan gives you the power and the right kind of solution . some want to start up a venture of their own. 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 38 . and pursue a dream harnessed for years. while some want to relax and take a trip around the world.UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. The power to make your autumn years special lies only with you. Retirement means different things to different people.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.

live your today to the fullest. 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 39 . Go ahead. With Reliance Whole Life Plan you can be sure that your family will receive that timely financial support they need. even if something were to happen to you.(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. without a worry about tomorrow.

40 .CHAPTER III OBJECTIVES OF STUDY The main of the present study of is accomplish the following objective.

Bajaj alliance . Max New York life etc.  And base on analysis of the result thus obtained make a report on that research.  The objective behind the project is as follows:  To find the right candidate.LIC. 41 . Proper understanding and analysis of life insurance industry.  According the market survey come know about how much potential of insurance market in our city.  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.  To know about brand awareness of Kotak Life Insurance and customer’s preference about Kotak Life Insurance. it is to understand the overall working of the Life insurance sector. In all.  As the Kotak 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.

Age. social relation. CHAPTER IV RESEARCH METHODOLOGY 42 . To about their family background. Qualification. occupation.

Satisfaction levels etc will also studied. 43 . • 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. Age groups . OBJECTIVE Objective One • • To determine reasons behind opting for an insurance.RESEARCH METHODOLOGY TITLE: To determine customer-buying behavior with a focus on market segmentation for Reliance Life Insurance. To provide the company with information of customer's Insurance policy if they have any and reasons for opting for that particular policies. The various segments of the markets divided in terms of Insurance Needs.

• • To study the types of benefits provided by insurance services. The study then goes on to evaluate and analyse the findings so as to present a clear picture of trends in the Insurance sector. A large number of new players have entered the market and are vying to gain market share in this rapidly improving market. SIGNIFICANCE OF THE STUDY 44 . Objective Two • To determine customers perception towards private insurance companies and their expectation form private insurance companies. To determine the use of Internet for valuable information and decision-making process. To know the most preferred policy. • To determine the feedback on services provided by any other insurance agent. The study deals with Reliance in focus and the various segments that it caters to. SCOPE OF THE STUDY A big boom has been witnessed in Insurance Industry in recent times.

People are only beginning to wake up to it’s vast possibilities. the company. RESEARCH DESIGN • NON-PROBABILITY • EXPLORATORY RESEARCH 45 & DISCRIPTIVE EXPERIMENTAL .SIGNIFICANCE TO THE INDUSTRY : This is a limited study which takes into consideration the responses of 100 people. the insurance industry and also provide marketing ways. methods of reliance life insurance. It is a rapiddly changing and evolving sector. The significance for the industry lies in studying these trends that emerge from the study. SIGNIFICANE FOR THE RESEARCHER : To facilitate and provide all the useful informtaion of the studt. This data can be explorated to take in the trends across the industry. A study like this can attempt to guide the future of the industry based on current trends.

A pilot study was done in order to know the accuracy of the Questionnaire. 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. through this questionnaire. The sources of information are both primary & secondary. a rough draft was prepared keeping in mind the objective of the research. These comprise of employees of MNCs. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customer’s perception and buying behavior. Employees. The final Questionnaire was arrived only after certain important changes were done. Govt. Self Employeds etc.The research is primarily both exploratory as well as descriptive in nature. Sample size: 46 . SAMPLING METHODOLOGY SamplingTechnique: Initially.

In a rapidly changing industry. Sampling Area : The area of the research was New Delhi. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 2. 47 . India.The sample size was restricted to only 100. 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. 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. which comprised of mainly peoples from different regions of Delhi due to time constraints. 3.

a joint product or a co-branded solution would require approval from the Insurance Regulatory and Development Authority Customers of R World. 48 . would also be able to pay premiums through a bank account.5-crore telephony subscriber base to market its products. the information and entertainment portal of Reliance Communications. offered no comment when asked whether there would be an arrangement for payment of commission to Reliance Communications. The company is considering a series of options to leverage its relationship with Reliance Communications. however. Reliance Life Insurance plans to tap Reliance Communications' 2. Reliance Life Insurance officials. However. provided the bank is listed on the network.MARKETING STRATREGIES OF THE COMPANY • SOME OF THE STRATEGIES ADOPTED BY RELIANCE LIFE INSURANCE COMPANY.

insurance companies usually tie up with banks.As an alternative channel for distribution. 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. 49 . In the case of banc assurance.

CHAPTER V RESULT ANALYSIS & INTERPRETATION

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DATA ANALYSIS & INTERPRETATION

 DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES
COMPANY’S NAME L.I.C. RELIANCE LIFE INSURANCE ICICI PRUDENTIAL SBI LIFE HDFC TOTAL NO.OF RESPONDENT 78 3 10 7 2 100 SHARE (%) 78 3 10 7 2 100

7 10 3

2

LIC REL ICICI SBI HDFC 78

INTERPRETATION  78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.

51

DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY

RESPONDENTS
BENEFITS Cover Future Uncertainty Tax Deductions Future Investment TOTAL NO.OF RESPONDENTS 55 20 25 100 SHARE (%) 55 20 25 100

25%

Cover Future Uncertainty Tax Deductions 55% Future Investment

20%

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

52

OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100 FEATURES OF INSURANCE POLICY MONEY BACK GUAARENTEE 11% 15% LARGER RISK COVERANCE EASY ACCESS TO AGENTS 37% 30% LOW PREMIUM REPUTATION OF COMPANY 7% INTERPRETATION 53 . Whereas.  DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS FEATURE Money Back Guarantee Larger Risk Coverance Easy Access to Agents Low Premium Company’s Reputation TOTAL NO. 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.

Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.

54

DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE

RESPONDENTS
POLICY TYPE LIFE POLICY NON LIFE POLICY BOTH NO. OF RESPONDENTS 75 25 45 SHARE (%) 75 25 45

NATURE OF POLICY

45

75

LIFE POLICY NON LIFE POLICY BOTH

25

INTERPRETATION  75% of the respondents have Life Insurance Policy while 45%

have both. (The % is calculated out of 280 positive response)

55

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE
RESPONSE NO. OF RESPONDENTS 81 74 100 SHARE (%)

A saving tool A tax saving device A tool to protect your family

81% 74% 100%

81 100

SAVING TOOL TAX SAVING TOOL
74

FAMILY PROTECTIO N

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. 56

OF RESPONDENTS 70 30 100 SHARE (%) 70% 30% 100% INTERPRETATION 57 . DATA SHOWS PEOPLES HAVING INSURANCE 30% 70% Yes No RESPONSE Yes No Total NO.

OF RESPONDENTS 45 55 100 SHARE (%) 45% 555 100% Customer approached Insurance company/Agent Company/agent approached customer Total 55% 45% Customer approached Insurance company/Agent Company/agent approached customer 58 . • And at present 100% of the respondents are with the view that Insurance is a tool to protect your family.• 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.  DATA SHOWS BUYING PROCESS OF THE PEOPLE BUYING PROCESS NO.

INTERPRETATION • 44. 55. • Whereas.5% of the respondents approached the Insurance Company / Agent. 59 .5% of the respondents were approached by the Company /Agent.

% 100% Tax saving Saving / Investment Family protection 80 100 Slice 1 Slice 2 80 Slice 3 INTERPRETATION • 80. 60 . But all of them.71% of the Respondents opted for Insurance for tax saving benefits. DATA SHOWS REASONS BEHIND FOR INSURANCE RESPONSE NO. • • 80.e.71% of the Respondents opted for saving / Investments. 100% of the respondents have opted for insurance for their family protection. OF RESPONDENTS 80 80 100 SHARE (%) 80% 80. i.

OF RESPONDENTS 60 40 0 100 SHARE (%) 60% 40% 0. DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY RESPONSE Satisfied Not satisfied Not Responded Total NO.0% 100% 0% 40% 60% Satisfied Not satisfied Not Responded INTERPRETATION • 60% of the respondents are more or less satisfied with their existing policy. 61 . • 40% of the respondents are not satisfied with their existing policy.

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

00% 45. • 55% of the respondents are not satisfied with their existing insurance agent. OF RESPONDENTS 45 55 0 100 SHARE (%) 45% 55% 0.0% 100% 55. 63 . DATA SHOWS SATISFACTION OF +RESPONDENTS WITH RESPECT TO SERVICE AGENT RESPONSE Satisfied Not satisfied Not Responded Total NO.00% Satisfied Not satisfied INTERPRETATION • 45% of the respondents are satisfied with their existing service agent.

• All of those who have taken a policy have responded. 64 .

 DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX NO. OF RESPONDENTS 100 100 SHARE (%) 100% 0% 100% RESPONSE Paying tax Not paying tax Total 0% 100% Paying tax Not paying tax INTERPRETATION • Of the sample size of 400 respondents. 65 . all the respondents are paying tax.

33. • NSC.25% of the respondents do their tax saving by investing in 66 . This shows that most people for getting taxes benefits invest in LIC. DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX SAVING INVESTMENTS LIC NSC Bonds PPF PF EPF 11 21 51 NO. which is the highest among all Investment. OF RESPONDENTS 51 33 32 25 21 11 SHARE (%) 51% 33% 32% 25% 21% 11% 25 33 32 LIC NSC BOND PPF PF EPF INTERPRETATION • 51% of the respondents save their tax by investing in LIC.

10 70 SHARE (%) 75% 11% 25% 40% 10% 70% Fixed Assets 70 75 Bank deposits Cash & Jewellery Securities i.• 32.e.25% of the respondents as with the view that Fixed Assets is the best form of investment for securing their future. MFs Shares Insurance 10 40 25 11 INTERPRETATION • 75.e.  DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE NO.25% of the respondents to their tax saving by investing in bonds. OF RESPONDENTS Fixed Assets Bank deposits Jewellery Securities i. MFs Shares Insurance 75 11 25 40. bonds. bonds. 67 .

• 70.5% of the respondents are with the perception that Insurance is the best form of investment for securing their future. SHARE (%) 100% 90% 71. OF RESPONDENTS 100 90 71.% 71 100 90 Saving & Returns Security Tax benefits 68 .  DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR INVESTMENT RESPONSE Saving & Returns Security Tax benefits NO. which is one of the highest and this shows that insurance is an important key for securing your future.

75% of the respondent’s intent to gain tax benefits from their investments. OF RESPONDENTS 29 10 0 60 SHARE (%) 29% 10% 0% 60% 69 . • Whereas. 71. • 90% of the respondent’s intent to gain security from their investments.INTERPRETATION • 100% of the respondents intent to gain saving and returns from their investment.  DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE RESPONSE After 25 years After 35 years After 45 years Anytime NO.

• Whereas. 60.10% After 25 years After 35 years After 45 years Anytime INTERPRETATION • 29% of the respondents are with the view that insurance should be bought after the age of 25 years.e.29% 60.5% of the respondents are with the view that insurance should be buyed after the age of 35 years.61% 0% 10. there is no age limitations. 70 .5% of the respondents are with the view that buying of insurance do not have any thing to do with age i. • 10. It can be purchased any time according to the need.

 DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES RESPONSE Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good NO. OF RESPONDENTS 67 29 26 35 24 10 0 SHARE (%) 67% 29% 26% 35% 24% 10% 0% 67 10 24 0 33 26 29 Inflexible plans Unsatisfactory services Satisfactory Very good Non user friendly Non Aggressive Good INTERPRETATION 71 .

• 67% of the respondents have the opinion that Indian Insurance Companies have Rigid plans.75% of the respondents are with the view that Indian Insurance companies are Non-aggressive.25% feel that it is Good enough. • 29. • 26. • 24% of the respondents feel that products and services of Indian Insurance companies is Satisfactory. And according to the data. no single person has felt that it is very good. • 35.5% feel that services of Indian Insurance companies are Unsatisfactory. • • Whereas only 10.5% feel that Indian Insurance companies are Non-user friendly. 72 .

 DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN INSURANCE COMPANY RESPONSE NO. • 81. OF RESPONDENT S 82 & 71 81 49 49 82 SHARE (%) A trusted name Friendly service responsiveness Good plans Accessibility 82% 71% 81% 49% 81 A trusted name Frie ndly service & responsiveness Good plans Acce ssibility 71 INTERPRETATION • 82% customers look for a Trusted name in a company for insurance. 73 .5% customers look for a good plan in a company for insurance.

0% Planning Not planning INTERPRETATION • Only 12. 74 .5% of the customers contacted are not planning for new investments presently.• Friendly service & responsiveness and Accessibility are also important factors looked by customers in a company. • DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS RESPONSE Planning Not planning Total NO. OF RESPONDENTS 87 13 100 SHARE (%) 87% 13% 100% 13.0% 87.

• Whereas.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. 75 . 87.

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. OF RESPONDENTS 43 44 13 100 SHARE (%) 43% 44% 13% 100% 13% 43% 44% Yes No Uncertain INTERPRETATION The interested customers i. 76 . DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS RESPONSE Yes No Uncertain Total NO.

CHAPTER VI CONCLUSION CONCLUSION 77 .

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. radio and Television ad campaigns over the years is beginning to have it’s impact now. But therein lays the opportunity for a relative new comer like ING. People in general have been impression by the marketing and advertising campaigns of insurance companies. LIC has never been known for prompt service or customer oriented methods and Reliance can build on these factors. A high penetration of print . The general satisfaction levels among public with regards to policy and agents still requires improvement.Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be seen in the above analysis. 78 .

CHAPTER VII SUGGESTION Suggestion 79 .

• According the survey only 42% people are insured in Alwar so reaming other part is potential for insurance sector. • Among that 42% people who having insurance. they have insurance 40% for self 28%for spouse 21% for children and 18% for their parents and 11% for all family member. also its very help full for insurance sector so they should take necessary step for capture this potential. • Only 42% people having insurance in Alwar in that 42% there are 82 % people are under insured and other 18% people are fully insured according to their income so that is also plus point for insurance sector to capture the market 80 .

CHAPTER VIII QUESTIONNAIRE QUESTIONNAIRE 81 .

1. only then proceed 2. DO YOU HAVE ANY INSURANCE POLICY? YES NO WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH 3. a) <5Yrs b) 5-10 Yrs Other______ c) 10-15 Yrs d) Any (Specify) 82 . ARE YOU EMPLOYED? YES NO If YES. 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) FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick) 5.

_________ (Specify) YOUR MONTHLY INCOME? a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify) 9.6. 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. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S SCENARIO IS NOT ESSENTIAL? 83 . 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 8.

ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED SAVING TOOL b) NOT SATISFIED 84 ._____________________________________________________ 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. ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED SAVING TOOL b) NOT SATISFIED c) NOT RESPONDING 13. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE? a) CUSTOMER APPROCHED INSURANCE COs b) INSURANCE COs APPROCHED CUSTOMER 12.

c) NOT RESPONDING 14 DO YOU PAY TAXES? YES NO 15.WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM) a) FIXED ASSETS b) BANK DEPOSITS c) JEWELLERY d) SECURITIES. Bonds. WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM) a) LIC b) NSC c) BONDS d) PPF e) PF f) EPF 16.e. i. MFs e) SHARES f) INSURANCE 85 .

86 .

WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS? a) SAVING & RETURNS b) SECURITY c) TAX BENIFITS 18.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 87 . WHAT’S THE RIGHT AGE TO BUY INSURANCE? a) AFTER 25 Yrs b) AFTER 35 Yrs c) AFTER 45 Yrs d) ANYTIME 19.17.

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:___________________ 88 .

CHAPTER IX BIBLIOGRAPHY BIBLIOGRAPHY 89 .

IN 90 . REPORT: COPING WITH COMPETITION…Jan2007 WWW.IN  FAINSURANCE. WEBSITES REFFERED:  WWW.IND. INDIA…Dec 2006. BRIEF PROFILE OF LIC.COM 3. BOOKS/MAGAZINES REFFERED:  STUDY GUIDEPRINCILES & PRACTICES OF LIFE / GENERALINSURANCE.CI  ONEYOUTLOOK.COM WWW.CO.  Books published by INSURANCE INSTITUTE OF INDIA  LIFE-INSURANCE. Dec2005.M  SURANCE.  MONEYOUTLOOK.1. by Mc GILL  INSURANCEWATCH. 2. by AIMA.RELIANCELIFE. REPORTS/ARTICLES REFFERED: REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY….COM WWW.

THANK YOU 91 .