A STUDY OF VARIOUS FINANCIAL PRODUCTS OF RELIANCE LIFE INSURANCE COMPANY

Submitted in partial fulfillment of the requirements for Master of Business Administration (MBA)

By Name:- Aarti Rani Enrollment No:- 09020803912 Batch of 2012-14

BHAGWAN PARSHURAM INSTITUTE OF TECHNOLOGY ROHINI, SECTOR-17, DELHI SEPTEMBER, 2013

ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentor who graciously gave me their time and expertise.

They have provided me with the valuable guidance, sustained efforts and friendly approach. It would have been difficult to achieve the results in such a short span of time without their help.

I deem it my duty to record my gratitude towards the External project supervisor Mr. Arindam Mazumdar and Internal project supervisor Dr. B.S Sharma who devoted their precious time to interact, guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project.

Student Name – Aarti Rani

Signature……………………… Date ………………………..

CERTIFICATE OF ORIGINALITY

I_____________________________________ Roll No __________________, a full time bonafide student of III Semester of Master of Business Administration (MBA) Programme of Bhagwan Parshuram Institute of Technology, Delhi. I hereby certify that this project work carried out by me at _________________________________________________ the report submitted in partial fulfillment of the requirements of the programme is an original work of mine under the guidance of the industry mentor ____________________________________________ ___________________________________________________________________________ and faculty mentor_______________________________________________________and is not based or reproduced from any existing work of any other person or on any earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else at any time.

(Student's Signature) Date:

(Faculty Mentor's Signature) Date:

EXECUTIVE SUMMARY

Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholdings in AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance Company Limited is officially launched on February 1, 2006. This was after obtaining the required regularity approval from the Registrar of Companies and the Insurance Regulatory and Development Authority. Reliance Life Insurance is the part of Reliance Capital. Reliance Life Insurance has plenty of plans. It has 118 branches, with strong presence in South and a number of products catering savings, protection and investment needs of individuals and corporates. Reliance Life Insurance aims to be the consumer‘s preferred life insurer by understanding and meeting his needs In today‘s corporate and competitive world, I find that insurance sector has the maximum growth and potential compared to the other sectors. Insurance has the maximum growth as compared to FMCG sector. This growth potential attracts me to enter in this sector and Reliance Life Insurance has given me the opportunity to work and get experience in highly competitive and enhancing sector. The success story of good market share of different market organizations depends upon the availability of the products and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can capture big markets as compared to the other companies. Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer. .

S.No 1. Introduction 1. 2. 3. 4. 5. 6. 2.

Topic

Page No.

Meaning of Insurance Importance of Insurance Difference between Insurance & Assurance Principles of Life Insurance Meaning of Life Insurance Benefits of Life Insurance 6 - 10

History of Reliance Life Insurance 2.1 Reliance our Founder 2.2 Company complete address & Location 2.3 Vision & Mission 11 - 17

3.

Management & Administration 3.1 Board of Directors 3.2 Top Management team 3.3 Achievements 3.4 Milestones 18 - 22

4.

Products of Reliance Life Insurance 4.1 Protection Plans 4.2 Savings & Investment Plans 4.3 Unit Linked Plans 4.4 Retirement Plans 23 - 28

4.6 Child Plans 4.7 Health Plans 5. Research Methodology 5.1 Research Methodology of the study 5.2 Research Design 5.3 Data Collection 5.4 Research Instrument 5.5 Sampling Technique & Size 5.6 Limitations Of Research 6. 7. 8. 9. 10. Swot Analysis Data Analysis & Interpretation Findings & Recommendations Conclusion Bibliography 39 - 41 42 - 51 52 - 54 55 - 56 57 - 58 29 - 38

Chapter - 1 Introduction

1.

Meaning of Insurance

Insurance may be described as a social device to reduce or eliminate risk of life and property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big uncertain and changing

liability. Insurance can be defined as a ― legal contract between two parties where by one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain.‖ The other party called insured pays in exchange a fixed sum known as premium. Insurance is desired to safeguard oneself and one‘s family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events.

2.

Importance of Insurance

Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sector in India. There is lot of potential in the Indian Insurance Industry. The scope of the study of insurance industry of India would be very great as there are on going developments in the industry.

3.

Difference between Insurance and Assurance

The word assurance indicated certainty. It is exclusively used to denote the risks covered by marine, fire etc. In life insurance, there is an assurance from insurance company to make payment under the policy either on the maturity or at earlier death. On the other hand the word insurance was used to denote indemnity type of insurances where the insurance company was liable to pay only in case of the loss or damage of property. The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance.

4.

Principles of Life Insurance

1.

Principle of utmost good faith

It means maximum truth. Both the parties should disclose all the material information regarding the subject matter of insurance.

2.

Principle of Indemnity

This means if the insured suffered a loss against which the policy has been made he shall be fully indemnified only to the extent of loss.

3.

Principle of subrogation

This means the insurer has the right to stand in the place of insured after settlement of claims in so far as insured rights of recovery from an alternative source is required.

4.

Principle of Causa proxima

The cause of loss must be direct and an insured one in order to claim compensation.

5.

Principle of Insurable interest

The assured must have insurable interest in the life or property insured. Insurable interest is that interest which considerably alters the position of assured in the event of loss taking place and if the event does not take placed, he remains in the same old position.

1.

Meaning of Life Insurance

There are three parties in a life insurance transaction : the insurer, the insured and the owner of the policy , although the owner and the insured are often the same person. Another person involved in life insurance is beneficiary. The beneficiary is the person who will receive the policy proceeds upon the death of the insured. Life insurance may be divided into two basic classes - term and permanent.

1.

Term Life Insurance provides for life insurance coverage for a specific term of years for a specified premium. The policy does not accumulate cash value.

2.

Permanent Life Insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due.

3.

Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantage of whole life are guaranteed death benefits, guaranteed cash values, fixed and known

annual premiums and mortality and expense charges will not reduce the cash value shown in the policy.

4.

Universal Life Insurance is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return.

1.

Benefits of Life Insurance

1.

Risk Cover :-

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future.

2.

Tax Deduction :-

Under section 80C of the Income Tax Act of 1961 one can get tax deduction premiums upto one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual.

3.

Loans :-

An individual can easily access loans from different financial institutions by pledging his insurance policies.

4.

Retirement Planning:-

What had provided protection against the financial consequences of premature death may be used to help them enjoy their retirement years.

5.

Educational Needs :-

Similar to retirement planning the cash values that flow from one life insurance schemes can be utilized for educational needs of the insurer or his children.

.

Chapter- 2 History Of Reliance

2.1

RELIANCE

OUR FOUNDER

Few men in history have made as dramatic a contribution to their country's economic progress as did the founder of Reliance, Shri. Dhirubhai H. Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: the corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India's capital markets, and the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of India's greatest wealth creator. In one lifetime, he built from scratch, India's largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of only about US$ 300 (around Rs. 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a 60,000 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of India's capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding the Reliance story and put their hard-earned money into the Reliance Textile IPO, promising them in exchange for their trust, substantial return on their investments. It was to be the start of one of the greatest stories of mutual respect and reciprocal gain in the Indian market. Under Dhirubhai's extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become India's largest private sector enterprise. .

Reliance Life Insurance Company (RLIC)

RLIC is amongst the leading private sector life insurance companies in terms of new business premium with a market share of 5% of the private sector life insurance industry. The company has over 7 million policy holders with a strong distribution network of close to 1,230 branches with over 124,000 agents as of March 31, 2013. Reliance Life offers life insurance products targeted at individuals and groups, catering to four distinct segments: protection, children, retirement and investment plans. As of March 31, 2013, the Total Premium (net of re-insurance) was Rs. 4,015 crores, whereas new business premium stood at Rs. 1,188 crores. The company achieved a profit of Rs. 380 crores. The company sold 7.6 lakh policies during 2012-13 with total managed funds valuing to Rs. 18,189 crores, through a wide network of distribution with 1,230 offices and over 1,24,000 advisors. Rated amongst the Top 3 Most Trusted Service Brands in the Insurance Category, the company aims to emerge as a transnational life insurer of global scale and standards. Reliance Life Insurance is a part of Reliance Capital of the Reliance Anil Dhirubhai Ambani Group. Reliance Capital is one of India's leading private sector financial services companies, and ranks among the top private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Group also has presence in Communications, Energy, Natural Resources, Media, Entertainment, Healthcare and Infrastructure. Nippon Life Insurance Company acquired 26% interest in equity share capital of the Company effective October 7, 2011 subsequent to receipt of all regulatory approval. Nippon Life Insurance (26% share), also called Nissay, is Japan's largest private life insurer with revenues of Rs. 346,834 crore (US$ 80 Billion) and profits of over Rs. 12,199 crore (US$ 3 billion). The Company has over 14 million policies in Japan, offers a wide range of products, including individual and group life and annuity policies through various distribution channels and mainly uses face-to-face sales channel for its traditional insurance products. The company primarily operated in Japan, North America, Europe and Asia and is headquartered in Osaka, Japan. It is ranked 81st in Global Fortune 500 firms in 2011.

2.2

Name of the Company and Location

Registered Office :H Block, 1st Floor, Dhirubhai Ambani knowledge City, Navi Mumbai, Maharashtra – 400710

Corporate Office :9th floor/ 10th floor, Building No.2 R-Tech Park, Nirlon Compound, Next to Hub Mall, Behind I – Flex Building, Goregaon (East) Mumbai – 400063

Head Offices :Reliance Life Insurance

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2.3 Vision & Mission

Company’s Vision

Empowering everyone live their dreams.

Company’s Mission

Create unmatched value for everyone through dependable, effective,transparent and profitable life insurance and pension plans.

2.4 Goals

Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below: 1. 2. 3. Emerge as transnational Life Insurer of global scale and standard. Create best value for Customers, Shareholders and all Stake holders. Achieve impeccable reputation and credentials through best business practices.

Chapter – 3 Management & Achievement

3.1

Board of Directors

1.

Satya Pal Talwar, Independent Director Satya Pal is an Independent Director of Reliance Life Insurance Company Limited. Rajendra Chitale, Independent Director Rajendra is an independent Director at Reliance Life Insurance Company Limited. Upendra Joshi, Independent Director Upendra is an Independent Director of Reliance Life Insurance Company Limited. Takeshi Furuichi, Non Executive Director Takeshi is a Non Executive Director at Reliance Life Insurance Company Limited. Soumen Ghosh, Non Executive Director Soumen is currently the Group President of Reliance Capital Limited and Non-Executive Director of Reliance Life Insurance Company Limited. Amit Bapna, Non Executive Director Amit is currently the Chief Financial Officer at Reliance Capital Limited and Non - Executive Director of Reliance Life Insurance Company Limited. Malay Ghosh, Non Executive Director He has been associated with Reliance Life for over 5 years and is the erstwhile Executive Director and President of Reliance Life.

. 2.

3.

4.

5.

6.

1.

3.2 Top Management Team

1.

Anup Rau – Chief Executive Officer and Executive Director Anup Rau, is the Chief Executive Officer and Executive Director of Reliance Life Insurance Company Limited, one of the largest life insurance companies Srinivasan Iyengar – Chief Operating Officer Srinivasan Iyengar is the Chief Operating Officer of Reliance Life Insurance Company Andleeb Rabbi – Chief Human Resources Officer Andleeb is the Chief Human Resources Officer and is responsible for providing leadership for Human Resources, Administration and Infrastructure functions of Reliance Life Insurance Company. S V Sunder Krishnan, Chief Risk Officer Sunder is the Chief Risk officer for Reliance Life Insurance and is responsible for overseeing Risk Management, Internal Audit and Compliance functions at Reliance Life Insurance. . Sunil Agrawal, Chief Financial Officer Sunil Agrawal is the Chief Financial Officer at Reliance Life Insurance. Sunil has over 14 years of experience of which 13 years experience comes from the insurance industry. Sameer Karekatte, Head - Legal and Compliance Sameer Karekatte heads the Legal and Compliance functions of Reliance Life Insurance'. He has twenty years of valuable experience in the Corporate Legal, Litigation, Advisory, and Regulatory Compliances. Rajesh Dalmia, Appointed Actuary Rajesh is the Appointed Actuary and has the overall responsibility for statutory reporting, risk appetite, pricing, valuation, reinsurance, etc.

2.

3.

4.

5.

6.

7.

8.

Manoranjan Sahoo , Head - Agency Manoranjan is the Head- Agency at Reliance Life Insurance Company Limited. Manoranjan has 20 years of experience in insurance industry. He has indepth knowledge of Life Insurance Murli Nambiar , Chief Technology Officer Murli Nambiar is the Chief Technology Officer of Reliance Life Insurance and is responsible for Information technology and Information security strategy and implementation.

9.

3.3

Achievements

1. 2. 3. 4. 5. 6.

Largest Private Life Insurance in terms of Number of Policies for two consecutive years as of 31st March 2012 A wide network of 1230 branches and 1,50,000 advisors Over 9 million policies RLIC continues to be amongst the foremost Life Insurance companies in India to be certified ISO 9008:2001 Winner of ― est on-Urban overage‖ ward at Indian Insurance wards RLI ‘s oundaries for ooks ampaign won the 'Silver' at the Indian igital edia Awards (IDMA) 2012, under Best Integrated Campaign – Social Cause and Best Use of Social Network – Social Cause Amongst the top 3 Most Trusted Service Brands in the Insurance category as per the rand quity‗s ‗ ost Trusted Service rands ‘ Survey

7.

3.4

Milestones

Largest Private Life Insurance in terms of Number of Policies for two consecutive years as of 31st March 2012

A wide network of 1230 branches and 1,50,000 advisors

Over 9 million policies

RLIC continues to be amongst the foremost Life Insurance companies in India to be certified ISO 9008:2001

Winner of "Best Non-Urban Coverage" Award at Indian Insurance Awards 2011

Chapter – 4 Products Of RLIC

Products

1.

Protection Plans

Reliance Life Insurance e term plan Life, as we know, is full of uncertainties. And to keep pace with it, you need to plan ahead and protect the well being of your family in your absence. Reliance Term Plan Invest in the Reliance Term Plan, a pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit your needs. Reliance Simple term Plan Make a smart investment move by investing in the cost-effective Reliance Simple Term Plan, which offers you comprehensive coverage for a specified period of time to suit your needs. Reliance Special Term Plan Imagine a life insurance policy, which on maturity returns to you all the premiums you had paid for your basic policy. The Reliance Special Term Plan offers that and much more. Reliance Credit Guardian Plan The Reliance Credit Guardian Plan secures your family from any loan liabilities you have incurred in case of your untimely demise. On survival at maturity, you will be returned all the premiums paid for the basic policy. Reliance Special Credit Guardian Plan Invest in the Reliance Special Credit Guardian Plan and protect your family from any loan liabilities you have incurred. On survival at maturity, all premiums paid for the basic policy will be returned to you.

2.

Savings & Investment Plans

Reliance Life Insurance Smart Maturity Benefit Plan Non Linked, Non-Participating, Single Premium, Savings cum Protection Plan, where you pay the premium only once throughout the policy term. On maturity, you receive the amount that is guaranteed. Reliance Life Insurance Super Endowment Plan Reliance Life Insurance Super Endowment Plan gives you the financial independence to achieve your dreams in the future. It lets you decide how much amount you would like to set aside as your Sum Assured based on your current financial position and your expected future expenses. Reliance Life Insurance Guaranteed Money Back Plan Reliance Life Insurance Guaranteed Money Back Plan is a Non-linked, Nonparticipating. Reliance Life Insurance Money Multiplier Plan You want to do everything you can to protect the people you care about. But what‘s the best way to protect your family and loved ones from financial consequences now and in your absence? Reliance Cash Flow Plan Invest in the Reliance Cash Flow Plan and reap the dual benefits of a life insurance plan and easy liquidity through lump sum cash, which means you can get a percentage of the Sum Assured at periodic intervals. Reliance Endowment Plan The Reliance Endowment Plan gives you financial independence by allowing you to decide the amount of Sum Assured based on your current financial position and expected future expenses… ream!

Reliance Super Five Plus Imagine an endowment plan that protects you for a certain period even after you have received your lump sum—that is exactly what the Reliance Super Five Plus offers you with other added benefits. Reliance Whole Life Plan Give your family a lifetime of timely financial support by investing in the Reliance Whole Life Plan.

3.

Unit linked Plans

Reliance Life Insurance Guaranteed Maturity Insurance Plan An insurance plan which guarantees atleast double your money plus all the upside for you at maturity. Reliance Life Insurance Classic Plan – II To keep pace in the race of life where financial planning is one of the key requirements, it is imperative that you move fast and act smart. Reliance Life Insurance Classic Plan – Limited Premium To keep pace in the race of life where financial planning is one of the key requirements, it is imperative that you move fast and act smart. Reliance Life Insurance Pay Five Plan Reliance Life Insurance Co. Ltd. Offers one such plan that helps you achieve all that you have wished for by paying just 5 annual premiums and reap benefits for as long as 15 years. Reliance Life Insurance Classic Plan To keep pace in the race of life where financial planning is one of the key requirements, it is imperative that you move fast and act smart.

4.

Retirement Plans

Reliance Life Insurance Smart Pension Plan In the blissful journey of life,we work endlessly so that our children receive the best of education, get the desired job which they have dreamt of and are happily married. Reliance Immediate Annuity Plan In life, some things should just never be compromised, such as your lifestyle, your independence, your desires, your happiness, the annual family vacation and all the things you‘‘ve always loved to indulge in.

5.

Child Plans

Being a parent is one of the joys of life. Your child looks up to you and depends on you for love, protection and support. You want to provide your child with the best in life. The Reliance Child Plan helps you save systematically so that you can secure your child‘s future needs. Be it higher education, his or her first home or any other requirement, you will always be there for your child when he or she needs you. So, invest in a Reliance Child Plan right away—it is the best gift you could ever give your child.

6.

Health Plans

With Reliance Life Insurance Health Plans, you can protect yourself and your family from unexpected financial burdens that arise with health ailments. Our comprehensive health plans offer you the benefit of lump sum cash, irrespective of the expenses you incur during 32ospitalization. This ensures that your savings remain intact and go towards fulfilling your family‘s dreams and securing their financial stability.

1.

Reliance Life Easy Care Fixed Benefit Plan With Reliance Life Easy Care Fixed Benefit Plan you can now sleep peacefully at night while we take care of your worries.

2.

Reliance Life Care For You Advantage Plan A very innovative plan for the entire family including children, dependant parents and parents-in-law.

3.

Reliance Life Care for You Plan Health care costs are getting higher and higher and one needs to be financially prepared for an emergency

Chapter - 5 Research Methodology

RESEARCH METHODOLOGY

5.1 Research Methodology of the study

Research methodology is a collective term for the structured process of conducting research. There are many different methodologies used in various types of research and the term is usually considered to include research design, data gathering and data analysis.

Research methodologies can be quantitative (for example, measuring the number of times someone does something under certain conditions) or qualitative (for example, asking people how they feel about a certain situation). Ideally, comprehensive research should try to incorporate both qualitative and quantitative methodologies but this is not always possible, usually due to time and financial constraints.

Research methodologies are generally used in academic research to test hypotheses or theories. A good design should ensure the research is valid , ie it clearly tests the hypothesis and not extraneous variables, and that the research is reliable, ie It yields consistent results every time.

Part of the research methodology is concerned with the how the research is conducted. This is called the study design and typically involves research conducted using questionnaires, interviews.

The term research methodology also referred to as research methods, usually encompasses thee procedures followed to analyse and interpret the data gathered.

5.2 Research Design

A research design specifies the methods and procedures for conducting a particular study. Research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance.

TYPES OF RESEARCH DESIGN

Quantitative Research Design

Descriptive

1.

Describe phenomena as they exist. Descriptive studies generally take raw data and summarize in a useable form. Can also be qualitative in nature if the sample size is small and data are collected from questionnaires, interviews or observations.

2.

Experimental

1.

The art of planning and implementing an experiment in which the research has control over some of the conditions where the study takes place and control over some aspects of the independent variables.

Quasi –experimental

2.

A form of experimental research. One of which the researcher cannot control at least one of the three elements of an experimental design: Environment Intervention

3. 4.

Qualitative Research Design

Historical

1.

Collection and evaluation of data related to past events that are used to describe causes, effects and trends that may explain present or future events. Data are often archival . Data includes interviews.

2.

Ethnographic

1.

The collection of extensive narrative data over an extended period of time in natural settings Data are collected through observations at particular points of time over a sustained period.

2.

Case Studies

1.

An in-depth study of an individual group, institution, organization or program. Data includes interviews, field notes of observations, archival data and biographical data.

2.

5.3 Data Collection
Data collection is a term used to describe a process of preparing and collecting data, for

example, as an part of a process improvement or similar project. The purpose of data collection is to obtain information to keep on record, to make decisions about important issues, to pass information on to others.

Sources Of Data Collection 1. Primary Source
Primary data means first hand data. It has been collection through questionnaire. The questionnaire can be classified into four main types1. 2. 3. 4. Structured non disguised questionnaire Structured disguised questionnaire Non- Structured non disguised questionnaire Non- Structured disguised questionnaire

5.

Secondary Data :Secondary data means data that are already available ie tha data which have already been collected and analyzed by someone else. When the researcherutilizes secondary data, than he has to look into various sources from where he can obtain them, in this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. Usually published data are available in :-

1. 2. 3. 4. 5. 6.

Various publications of central, state and local government; Various publications of foreign government or of international bodies and their subsidiary organizations; Technical and trade journals; Books, magazines and newspapers Reports and publications of various associations connected with business and industry, stock exchanges Reports prepared by research scholars, universities

The research is primarily both exploratory as well as descriptive in nature. The sources of

information are both primary & secondary. A well-structured questionnaire was prepared.

SAMPLING METHODOLOGY

Sampling Design
Sampling is concerned with the selection of a subset of individuals from within a population to estimate characterstics of whole population.

7.

Population

In sampling this includes defining the population from which our sample is drawn. A population can be defined as including all people or items with the characteristics one wishes to understand.

8.

Sampling Unit

A sampling unit is one of the units into which an aggregate is divided for the purpose of sampling, each unit being regarded as individual and indivisible when the selection is made. The respondants who were asked to fill out questionnaires are the s a m p l i n g u n i t s

9.

Sampling Size

Sample size determination is the act of choosing the number of observations to include to include in a statistical sample. The sample size is an important feature of any empirical study in which the goal is to make inferences about a population from a sample.

The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Delhi due to time constraints.

10.

Sampling Area

Sampling area means the area from where sample has been taken. The area of the research was New Delhi, In

5.4 Research Instrument

Research instrument used is questionnaire
.

Types of Questions:-

1.

Open ended questions- Open ended questions typically begin with words such as ―Why‖ and ― ow‖, or phases such as ―tell me about‖.

2.

Dichotomous questions- Fixed alternative questions that can only be answered in one of the two indicated ways, such as ‗ ‘ or ‗ ‘ , gree or isagree , True or alse , Yes or

No.

3.

Multiple choice questions- Multiple choice is a form of assessment in which respondents are asked to select the best possible answer out of the choices from a list.

Types of Questionnaire 1.
1. 2.

Structured non disguised questionnaire
Questions are listed in a pre- arranged order Respondents are told about the purpose of collecting information

3.
1. 2.

Structured- disguised questionnaire
Questions are listed in a pre- arranged order Respondents are told about the purpose of collecting information

3.
1. 2. 3.

Non Structured non disguised questionnaire
Questions are not structured. Researcher is free to ask questions in any sequence he/she wants. Respondents are told about the purpose of collecting information.

4.
1. 2.

Non structured disguised questionnaire
Questions are not structured. Researcher is free to ask questions in any sequence he/she wants. Respondents are not told about the purpose of collecting information

3.

1.

Sampling Techiques

1.

A Simple random sample is selected so that all samples of the same size have an equal chance of being selected from the population.

2.

Stratified Sampling involves selecting independent samples from from a number of sub populations, group or strata within the population.

3.

Cluster Sampling involves selecting the sample units in groups. For example, a sample of telephone calls may be collected by first taking a collection of telephone lines and collecting all the calls on the sampled lines.

5.6

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. Some respondents were reluctant to divulge personal information which can affect the validity of all responses.

2.

3.

I n a r a p i d l y c h a n g i n g i n d u s t r y , a n a l y s i s o n o n e d a y can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

Chapter - 6 Swot Analysis

6.1 Strengths & Weaknesses

Strengths

1. 2. 3.

Reliance Life Insurance Company is the part of the Reliance Capital. The brand name is enough to sell the product easily. Private placement of Rs. 10000 crore worth of securities with RBI by the govt. lead to an improvement in the market securities Strong liquidity from FII was the major reason for the up move range of products Reliance has a long and strong history of solvency, Financial stability

4. 5.

Weakness

1. Newly established company so people seems it risky. 2. Lack of staff. 3. Lack of advertisement

6.2 Opportunities & Threats

Opportunities

1. 2.

Opportunities in the newer semi- urban and rural markets Earning Urban Youth looking for investments.

Threats

1. 2.

Economic crisis and global financial problems. Entry of new NBCs in the sector.

Chapter - 7 Data Analysis & Interpretation

Analysis
The findings of the project are derived from the questionnaire which is used for collecting primary data.

1.

Where do you prefer to invest ?

Mutual Funds 30%

Stocks 20%

Insurance 40%

Others 10%

Interpretation:About 40% people invest in insurance, 30% in mutual funds , 20% in stock and 10% in others. So, Insurance sector seems to have more growth in comparison to other sectors.

2.

What are your priorities for investment ?

Protecting your Family 30%

Wealth creation

Retirement Needs

Child education

20%

30%

20%

Priorities for Investment

Protecting Family wealth Creation Retirement Needs child Education

Interpretation :About 30% people Invest in insurance sector for protecting their family, 20% invest for wealth creation, 30% invest for retirement needs and remaining 20% for Child education.

3.

How do you decide about investing in life Insurance?

On my own

Family decision

Employer decides

As per guidance of agent

58%

14%

0%

28%

Decision about investing in Insurance

On my Own Family Decision Employer decides Agent Guidance

Interpretation :About 58% of people take decision on their own for investing in life insurance, 14% people depend upon their family for taking decision and 28% are dependant upon Agent guidance.

4.

What is your main motive behind investing in life insurance ?

Tax Benefit

Savings

Risk cover

25%

40%

35%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Tax Benefit Savings Risk cover

Interpretation :-

About 25% people invest in life insurance for tax benefit, 40% invest for savings and 40% for risk cover. So, investment for risk cover purpose is more in comparison to tax benefit and savings purpose.

5.

How do you come to know about Reliance Life Insurance ?

Print Media

Advertising

Friends

Other

50%

15%

10%

25%

Print Media Advertising Friends others

Interpretation:About 50% people come to know about reliance life insurance through print media, 15% through advertising, 10% through friends and 25% through other sources. So print media plays an important role.

Yes 55%

No

45%
6. Are you interested to invest in Traditional Plans ?

Traditional Plans

Yes No

Interpretation

About 55% people are interested in investing in Traditional plans and 45% people are not interested in investing in traditional plans. So it means more know about traditional plans and they are willing to invest in it.

7.

In reliance life insurance, which particular plan you would like to invest in

Plans

Term Plan Whole Life Plan Endowment Plan
Term Plan

Special Endowment

whole Life Plan Plan Endowment Plan Special Endowment Plan

25% 30% 25%

20%

Interpretation

About 25% people like to invest in term plans, 30% in whole life plan, 25% people like to invest in endowment plans and 20% people invest in special endowment plans.

8.

What kind of investment do you prefer ?

High Risk High Gain Low Risk Low Gain Moderate

Vary time to time

40%

10%

30%

20%

preferance in investmment

High Risk High Gain Low risk low gain Moderate Vary time to time

Interpretation
About 40% people want to invest in high risk high gain plans, 30% in low risk low gain plans, 10% in moderate plans and 20% people invest in plans that vary from time to time.

9.

Are you satisfied with the return on investment which you getting from policy?

Very Satisfied

Satisfied

an‘t say

Not satisfied

much dissatisfied

21%

60%

4%

4%

11%

Return on Investment

very Satisfied Satisfied Can't say Not much satisfied Dissatisfied

Interpretation
About 21% of people are very satisfied with the return on investment, 60% people are satisfied, % people can‘t say, % people are not satisfied much and % are dissatisfied.

Chapter -8 Findings & Recommendations

1.

Findings

1. Now life insurance has become generic. People believe in Life Insurance Company only and therefore, everybody wants to go in for a policy with LIC. It will take time to private companies to win the confidence of the people. 2. As far as future decision making about the policy is concerned most of the policy would go in for saving plan. 3. People are turning towards the ULIP as a good investment option but ULIP is in its starting phase so customers prefer only big brands LIC, RLIC etc . 4. LIC is the oldest player in the Insurance market, so people are more aware of i.e., as compared to new players. 5. This clearly comes out from the survey conducted that most of the people come to know about Reliance life Insurance company through print media 6. It has clearly come out that most of the people like to go in for a policy, which gives them tax benefit. . c to survey it is cleared that most of the people don‟t take insurance policy because they don‟t understand that how insurance policy works? 8. Most of People influenced by family and friends when they are buying insurance policies.

2.

RECOMMENDATIONS

Followings are the recommendations and the suggestions not only for the Reliance life insurance company but also for other private life insurance companies if they want to complete with public/government life insurance companies. 1. Creating positive image: Private companies should try their level best to create positive and favourable image in the minds of people i.e. in the minds of their target customers. 2. Training and development to agents: Company must provide training to their agents and financial so that they can satisfy customer and doubts effectively . 3. Concern towards customers: Serious concern must be given to the c ustomers as in today‟s scenario it regarded as ― ustomer is a king‖. In formal words we can say that if can customers more loyal towards the company. 4. Co-operation with agents and branch managers: The Company must full co-operate with branch managers and agents. 5. Availability of branch offices: There must be the branch offices in each 20-30 Km. diameter. 6. Efficient management: The management appointed must be that much capable that it can control the whole team and improve the goodwill and image of the company. 7. Sales promotion and marketing: The marketing department must be so aggressive that it can have a close watch on the competitors‟ activities. ot only this but also it must take care of the need and wants of the customers also. 8. Incentive schemes and permanency in job: There must be good incentive schemes to be designed as these can acts as good motivators for the agents. The scheme of permanent job placement must be introduce for those agents who have shown extra ordinary performance. 9. Solution of Grievances: There must regular meetings with the financial consultants and agents to motivate them and to solve grievances if there are any.

Chapter – 9 Conclusion

Results

Reliance Life insurance is one of the largest private life insurance company and it has awakened many new hopes and aspiration for human kind, just based on a noble human passion of law, compassion tolerance and mutual understanding. Globalization has opened new formalities of technology, knowledge, communication and information. Reliance Life insurance is a gift of globalization to maintain development of these formalities there before is a daunting challenge i.e. the utilization of these facilities to create a brave new worlds in which a qualitative and a clear change between yesterdays and hormones can easily perceived. I have done a detailed the comparative study of Reliance Life insurance with other life insurance companies and concluded that most of the people preferred to deal with nationalized insurance companies.

People used to buy Insurance for tax exemption but time has changed now, advertising has made the people understand the need of Life Insurance in their lives and people are taking initiatives to buy it. Urge of people to have Insurance and strong marketing can really make the industry reach the sky. Reliance Life insurance has set all the strategies and mission after proper vision and is achieving the largest by working in co-operative and co-ordinate manner and giving the people full services and facilities and making easy. So I would like to conducted by saying that Reliance Life insurance is a wonderful gift given to the mankind in the new are for people development and maintenance of the world as well as India.

Bibliography

Internet Resources Search Sites www.google.co.in , www.msn.com www.reliancelife.com

Websites of the organization Other sites

www.bimaonline.com, www.irdaindia.gov ,

www.yahooanswer.com, www.wikipedia.com Company Resources roduct rochures Inputs from company personnel‟s.

Annexure Questionnaire

Name - ______________________ Age - _______________________ Occupation - __________________

Q-1 Where do you prefer to invest ? 1. 2. 3. 4. Mutual Funds Stocks Insurance Others

Q-2 What are your priorities for investment ? 1. 2. 3. Protecting your Family Wealth Creation Retirement Needs

4.

Child Education

Q-3 How do you decide about investing in life Insurance?
1. 2. 3. 4.

On my own Family decision Employer decides As per guidance of agent

Q-4 What is your main motive behind investing in life insurance ? 1. 2. 3. Tax Benefit Savings Risk cover

Q-5 How do you come to know about Reliance Life Insurance ? 1. 2. 3. 4. Print Media Advertising Friends Others

Q-6 Are you interested to invest in Traditional Plans ? 1. 2. Yes No

Q-7 In reliance life insurance, which particular plan you would like to invest in. 1. 2. 3. 4. Term plan Whole Life Plan Endownent Plan Special Endowment Plan

Q-8 What kind of investment do you prefer ? 1. 2. 3. 4. High Risk High Gain Low Risk Low Gain Moderate Vary time to time

Q-9 Are you satisfied with the return on investment which you getting from policy? 1. 2. 3. 4. 5. Very Satisfied Satisfied Can’t Say Not much satisfied Dissatisfied