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SUMMER TRAINING PROJECT REPORT

RELIANCE LIFE INSURANCE COMPANY LTD

Submitted in partial fulfillment of the requirement of BACHELOR OF BUSINESS ADMINISTRATION (BBA) GURU NANAK DEV UNIVERSITY, AMRITSAR

PRODUCT DIFFERENCIATION BETWEEN RELIANCE LIFE INSURANCE COMPANY LTD AND OTHER LIFE INSURANCE COMPANIES IN INDIA.

TRANING SUPERVISOR: RANJEET SINGH (SALES MANAGER)

NAME OF THE STUDENT: MUKESH BAJAJ ENROLLMENT NO: 2007. JN/D.117

SESSION: 2007-2010 GURU NANAK DEV UNIVERSITY AMRITSAR-143005

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STUDENT UNDERTAKING
This is to certify that I have completed my internship project ³PRODUCT DIFFERENTIATION BETWEEN RELIANCE LIFE INSURANCE COMPANY LTD AND OTHER INSURANCE COMPANY IN INDIA´ in the partial fulfillment of the requirement for the award of Bachelors of Business Administration. This is an original piece of work & I have not submitted it earlier elsewhere.

(MUKESH BAJAJ) Student signature

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PREFACE

This project is a study of the product differentiation between the RLIC AND OTHER INSURANCE COMPANIES. It is more of an exploratory research with more of qualitative analysis than quantitative.

The project starts with the objective and limitations of the project. It also contains meaning of insurance, some history and the insurance glossary and also contains the information about the INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY. It also contains the types of insurance and the 15 insurance players after that it consist information about the late Sh.Dhirubai Ambani with his reliance apex symbol. Then it consist about the reliance capital which consist of the reliance mutual funds, general insurance, life insurance, consumer finance and reliance money. After that it consist about the past profile of the RLIC LTD and about its individual and u-lip products/plan with the comparison between the RLIC PRODUCTS AND OTHER INSURANCE COMPANIES PRODUCTS. Then the project focuses on the research methodology and the analysis. The first part consists of the findings from the questionnaire and then its analysis. Then the project contains conclusion and then the bibliography and it ended with the sample of questionnaire.

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ACKNOWLEDGEMENT
A successful and satisfactory completion of any project is the outcome of invaluable and aggregate contribution of personal skill in the radical direction and the guidance of the concerned Authorities. Even the best efforts are wasted without a proper guidance and advice. The success of any project is the result of hard work, dedication and the support of the well wishers. I wish to express my gratitude and appreciation to all those who stood by me and gave me all the possible help. First and foremost my intellectual debt to my training supervisor MR. RANJEET SINGH for helping me in various ways, despite his preoccupation with his own Routine .My sincere Thanks to all the people in HR department for giving their valuable suggestions and help in the project. Finally I thank all the individuals whom I met during the completion of project and was obligingly granted information which eventually formed the life-blood of the project.

Mukesh Bajaj

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W.2 Profile of the organization 1.4 Competition Information 1.CONTENTS CHAPTER ± 1: INTRODUCTION 1.T.3 Objectives 2.O. Analysis of the Organization PAGE NUMBER 1 12 16 17 18 CHAPTER ± 2: OBJECTIVE AND METHODOLOGY 2.1 Overview of Industry as a whole 1.1 Significance 2.4 Scope of the study 2.5 S.3: CONCEPTUAL DISCUSSION CHAPTER ± 4: DATA ANALYSIS CHAPTER ± 5: FINDINGS AND RECOMMENDATION ANNEXURES BIBLIOGRAPHY 25 47 61 5 .3 Problems of the organization 1.5 Methodology 20 20 21 21 22 CHAPTER .2 Managerial usefulness of the study 2.

CHAPTER-1 INTRODUCTION 6 .

7 . Firstly. Usually. is the company that sells the insurance. Reimbursement in a situation of loss. individual risks are pooled and shared. insurance enables those who suffer a loss or accident to be compensated for the effects of their misfortune. the practice of appraising and controlling risk. Two factors arise when calculating the premium. whether the particular policyholder is above gold below average in risk. In other words. from one entity to another. the general likelihood that has loss will occur. The payments come from a fund of money contributed by all the holders of individual insurance policies. 2. with each policy holder making a contribution to the common fund. Secondly. in economics. has evolved as a discrete field of study and practice.these are institutions which accumulate the money into the fund from which claims are paid. a pre-payment of some type is required. In the case of typical. Insurance. in law and economics. It lets you protect yourself against everyday risks to your health. to be charged for a certain amount of insurance coverage. Put basically. called the premium. everyday general auto.1. Insurer. someone decides that insurance is needed. 1. home and financial situation. Insurance is defined as the equitable transfer of the risk of a potential loss. Premiums are paid to insurers . Meaning of premium The contributions have the premium.1 Overview of Industry as a whole Insurance allows someone who suffers a loss or accident to be compensated for the effects of their misfortune. Insurance rate is a factor used to determine the amount. The loss is in fact paid for by the policyholder making the claim and by all the other policyholders who cuts not suffered in the same way. in exchange for a premium. is a form of risk management primarily used to hedge against the risk of a contingent loss. Risk management. In order for the concept of insurance to arise. health and life insurance.

Backdating is often used to make the age of the consumer at issue lower 8 . Backdating: A procedure for making the effective date of a policy earlier than the application date. Your attained age is one of the factors life insurance companies use to determine your premiums. the greater chance you'll die while you are covered . Annually Renewable Term: A form of renewable term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year. Agent: An authorized representative of an insurance company who sells and services insurance contracts. The older you are. made and in A risk-free job will find it easier to buy life insurance. Also called yearly renewable term. Someone who is Young. Accidental Death Insurance: Insurance providing payment if the insured's death results from an accident. Accidental Death Benefit Rider: A life insurance policy rider providing for payment of an additional cash benefit related to the face amount of the base policy when death occurs by accidental means. Assignment: The transfer of the ownership rights of a Life Insurance policy from one person to another.so the higher your premium. They edge calculate the premiums needed to create has fund broad enough to cover likely loss payments. Attained Age: Your current age.Insurers are professional risk takers. and will pay lower premiums than someone who has has heart condition gold is in A risky occupation. Clearly. only has proportion of policyholders will require compensation from the fund At any one time. without evidence of insurability. They know the probability of different standard of risk happening. Insurance glossary Accelerated Benefits Rider: A life insurance rider that allows for the early payment of some portion of the policies face amount should the insured suffer from a terminal illness or injury.

Claim Notification to an insurance company that payment of an amount is due under the terms of the policy. "cash benefits" are paid directly to the insured rather than the doctor or the hospital directly. the policy cannot be contested. normally two years. Cash Benefits: Money that is paid to the insured upon settlement of a covered claim. After that time has lapsed. Beneficiary: The person designated to receive the death benefit when the insured dies. Also referred to as secondary or tertiary beneficiary. Often found with Hospital Income Programs. Example: Suicide. A binder is given to an applicant for insurance during the time the complete policy paperwork is being completed. State laws often limit to six months the time to which policies can be backdated. Contestable Clause: A provision in an insurance policy setting forth the conditions under which or the period of time during which the insurer may contest or void the policy. Assignment: The transfer of the ownership rights of a Life Insurance policy from one person to another.than it actually was in order to get lower premium. Cash Value: The equity amount or "savings" accumulation in a whole life policy. subject to any other conditions stated on the receipt. Contingent Beneficiary: Person or persons named to receive proceeds in case the original beneficiary is not alive. Conditional Receipt: Given to policy owners when they pay a premium at time of application. 9 . Such receipts bind the insurance company if the risk is approved as applied for. Binder: A temporary insurance policy that expires at the end of a specific time period or when the permanent policy is written.

financial instruments and so on) and non-money or natural economies (without money. insurance in a modern money economy.e. if a house burns down. neighbors will not receive help in the future. presented gifts to the monarch.HISTORY OF INSURANCE In some sense we can say that insurance appears simultaneously with the appearance of human society. and practiced by early Mediterranean sailing merchants. The most important gift was presented during a special ceremony.42) the 10 . he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen. the members of the community help build a new one. If a merchant received a loan to fund his shipment. Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices.35-8. The second type is a more ancient form than the first. Should the same thing happen to one's neighbor. We know of two types of economies in human societies: money economies (with markets. Turning to insurance in the modern sense (i. respectively. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread (for example countries in the territory of the former Soviet Union).000 Derrik (Achaemenian gold coin weighing 8. c. early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long Ago as the 3rd and 2nd millennia BC. The Babylonians developed a system which was recorded in the famous Code of Hammurabi. When a gift was worth more than 10. In such an economy and community. 1750 BC. For example. in which insurance is part of the financial sphere). Otherwise.. markets. the other neighbors must help. Chinese merchants traveling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year). money. financial instruments and so on). we can see insurance in the form of people helping each other. the heads of different ethnic groups as well as others willing to take part.

Before insurance was established in the late 17th century. The Greeks and Romans introduced the origins of health and life insurance c.issue was registered in a special office. the presents were fairly assessed by the confidants of the court. 600 AD when they organized guilds called "benevolent societies" which cared for the families and paid funeral expenses of members upon death. consider deductibles and what is or isn't covered. For others. the one in charge of this in the court would check the registration. debilitating 11 . The Talmud deals with several aspects of insuring goods. he or she would receive an amount of twice as much. the monarch and the court would help him. When comparing policies. The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble." A thousand years later. TYPES OF INSURANCE 1) Health insurance: Don't go without this.000 Derrik. have his children married. This was advantageous to those who presented such special gifts. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sink age. etc. If the registered amount exceeded 10. the inhabitants of Rhodes invented the concept of the 'general average'. Jahez. When given a choice. set up a feast. Then the assessment was registered in special offices. in which people donated amounts of money to a general sum that could be used for emergencies. Most people have it at work. Guilds in the Middle Ages served a similar purpose. but if you don't you will really save big by going for a group policy. writes in one of his books on ancient Iran: "[W]whenever the owner of the present is in trouble or wants to construct a building. a historian and writer. choose one that covers the huge. "friendly societies" existed in England.

the purpose of life insurance should be to replace the financial contribution made by a family member. which pays only on the death of the insured. You don't have a primary care physician who has to approve visits to specialists. y Health maintenance organizations (HMO's) are the least costly. Most of the life insurance should be on a family member whose salary is important to the family budget. That physician acts as a gatekeeper in that he decides what is medically necessary and when you may see a specialist. but that balks at the larger. They assign you (or let you select) a primary care physician. 12 . Most people who need life insurance are better off with pure insurance and saving for retirement through other vehicles. or cash value insurance. When you consider the amount of insurance to buy. Some PPO's cover other providers. and burial costs. Life insurance can be pure insurance. which also has a savings vehicle. but the most restrictive. y P r e f e r r e d p r o v i d e r o p t io n s (PPO's) allow you to self-refer to any provider in the PPO's list and generally cover a wide variety of services recommenced by those providers. consider the following: 1. allows you to go to almost any provider and covers almost anything that is medically necessary. Often the HMO itself has to permit certain treatment and can rule against your doctor 2 Life insurance: For most people. estate taxes. Proceeds from life insurance cover three types of expenses: replacement of the policyholder's income or work. more expensive claims. Health insurance comes in three types y Fee for service. but with a larger co-payment.conditions over one that is good about routine immunization. the most expensive.

get a small policy to spare your family burial expenses. Consider a relatively small life insurance policy on a stay-at-home parent to cover child care and other expenses. Don't buy life insurance on children.2. Consider reducing the amount of life insurance you have as you build more financial assets. you need to have liability insurance. These plans are restrictive and expensive. Basically. Pass on life insurance altogether if you are single and don't have anyone depending on you. don't bother. 5. If your car is expensive and if buying another one would wipe you out financially. How much you need depends on how much you have in assets. If you have an older car and wouldn't get much from the insurance company if it were totaled. Instead. Instead. consider buying comprehensive and collision. you buy auto insurance for two purposes: to insure against liability you have to others and to insure against damage that others do to you or your car. 6. buy life insurance on other family members for the benefit of children. Pass on credit life insurance and mortgage life insurance if you can. 13 . Buy more general life insurance instead if you feel a need. 3 Autos insurance: In most states you are required to have auto insurance and you don't want to be without it. 3. Whether you need insurance to protect your own car depends on your car and how detesting it would be to replace it. put the money you would have paid for comprehensive and collision toward saving for your next car. At most. 4.

consider differences among deductible. etc. Consider also buying liability insurance which covers you if someone sustains an injury or other loss on your property. Rebuilding usually provides better coverage. they do vary a little with companies. so check with the company to see what policies cover. 14 . Consider also whether the policy covers resale cost or rebuilding cost. Basic homeowner's insurance does not cover the contents. When comparing policies. coverage of property other than the house (sheds. While these ratings are fairly standard. consider whether it covers replacement value or fair market value. not what your old one is worth. Insurance companies offer different ratings of insurance and assign these ratings with codes starting with the letters "HO".4 Homeowners' Insurance: The purpose of homeowners' insurance is to protect you against damage to your home and property from natural disasters. Replacement value is a better buy because it pays to buy a new piece of furniture or appliance. and percent of loss covered.). When buying contents insurance. though you can often add it for an additional fee or buy it separately. garages. but is more expensive.

(all appointed by the Government of India) 15 . four part-time members. 1999 As per the section 4 of IRDA Act' 1999. About IRDA Composition of Authority under IRDA Act. (b) (c) five whole-time members. to regulate.INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY MISSION To protect the interests of the policyholders. which was constituted by an act of parliament) specify the composition of Authority The Authority is a ten member team consisting of (a) a Chairman. promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. Insurance Regulatory and Development Authority (IRDA.

code of conduct and practical training for intermediary or insurance intermediaries and agents. Powers and Functions of IRDA Section 14 of IRDA Act. conducting enquiries and investigations including audit of the insurers. 16 . undertaking inspection of. (b) Specifying requisite qualifications. the Authority shall have the duty to regulate. (2) Without prejudice to the generality of the provisions contained in sub-section The powers and functions of the Authority shall include. (h) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance Intermediaries. (i) Regulating investment of funds by insurance companies. renew.Duties. (1) Subject to the provisions of this Act and any other aw for the time being in force. (g) control and regulation of the rates. intermediaries.. 1938 (4 of 1938). advantages. - (a) Issue to the applicant a certificate of registration. withdraw. 1999 lays down the duties. insurance intermediaries and other organisations connected with the insurance business. (e) Promoting efficiency in the conduct of insurance business. terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act. suspend or cancel such registration. (d) Promoting and regulating professional organisations connected with the insurance and re-insurance business. modify. (e) Levying fees and other charges for carrying out the purposes of this Act. powers and functions of IRDA. (f) calling for information from. promote and ensure orderly growth of the insurance business and re-insurance business. (c) Specifying the code of conduct for surveyors and loss assessors.

(j) Regulating maintenance of margin of solvency. (k) Adjudication of disputes between insurers and intermediaries or insurance intermediaries. (m) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (n) Specifying the percentage of life insurance business and general insurance business to undertaken by the insurer in the rural or social sector 17 . (l) Supervising the functioning of the Tariff Advisory Committee.

starting from the proverbial scratch.000 crore colossus²an achievement which earned Reliance a place on the global Fortune 500 list. the proud patriot.DHIRUBHAI AMBANI Few men in history have made as dramatic a contribution to their country¶s economic fortunes as did the founder of Reliance. there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary. Fewer still have left behind a legacy that is more enduring and timeless. the unmatched strategist. India¶s largest private sector enterprise. he had a seed capital of barely US$ 300 (around Rs 14.000). the champion of shareholder interest. Sh. As with all great pioneers. he converted this fledgling enterprise into a Rs 60. he built. the leader of men.2 PROFILE OF THE ORGANIZATION ABOUT LATE SH. Over the next three and a half decades. In one lifetime. But the role Dhirubhai cherished most was perhaps that of India¶s greatest wealth creator. 18 . When Dhirubhai embarked on his first business venture. the architect of India¶s capital markets.1. Dhirubhai H Ambani. the first ever Indian private company to do so.

integrated (wireless and wire line). value chain. Reliance Communications. substantial return on their investments. to offer services spanning the entire info comm. convergent (voice. In 1977. when Reliance Textile Industries Limited first went public. create a higher quality of life. Undaunted. and went on to become India¶s largest private sector enterprise. 19 . and creating one of the world¶s largest shareholder families. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Energy Ltd). Reliance scripted one of the greatest growth stories in corporate history anywhere in the world. an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002). It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. high-capacity. with over 30 million subscribers. Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind. and giving wing to a million dreams and aspirations Reliance ± Anil Dhirubhai Ambani Group. Reliance ± ADA Group¶s flagship company. Through out this amazing journey. promising them. It has established a pan-India. the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks. in exchange for their trust. Under Dhirubhai extraordinary vision and leadership. data and video) digital network.Dhirubhai is widely regarded as the father of India¶s capital markets. Their new identity reflects our commitment and passion to shape a better future. 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. is India's largest private sector information and Communications Company. ranks among India¶s top three private sector business houses in terms of net worth. in the process making millionaires out of many of the initial investors in the Reliance stock.

the self belief. The BLUE in Reliance APEX represents the inner strength. the quiet confidence. achievement and success.Their symbol µReliance APEX conveys the spirit of excellence. the human urge for progress. the sense of purpose that go into the making of an epic journey. The RED in Reliance APEX represents the energy and dynamism that propels one to the pinnacle of one¶s ambition. ³the resolve to shape a better future ³ The APEX is the highest point ± the pinnacle ± an abiding symbol of hope and optimism. Brand Colors 20 . the desire to reach higher.

HIERARCHIAL STRUCTURE 21 .

Vision and mission: Vision: To become the most admired life insurance Company in India. Hence. Since RLIC is a private player in the insurance industry. it has high cost due to which its premiums are high as compared to Other Insurance Companies. It has to compete with the wide range of products that its competitors offer. 5. It has to create credibility in the public. 3. 2. It has to focus towards rural segment also which has a great scope of growth. It has to focus on providing effective training to its agents so that the customer base can be increased and moreover customer satisfaction can be ensured. of branches and also enhance its network of agents so that it can compete with Other Insurance Companies. 22 . It has to increase its no. It has to decide on the strategies to be adopted which will help to counter competition.3 PROBLEMS OF RLIC 1. Mission: Become one of the top quartile life insurance companies in India Be a national player Be the brand of first choice Be the employer of choice Become principal of choice for agents 1. 6. it has not yet reached break-even. 4. 7.

1. 1) LIFE INSURANCE 2) RELIANCE LIFE INSURANCE 3) HDFC INSURANCE 4) ICICI PRUDENTIAL 5) RELIANCE 6) BAJAJ ALLIANCE 7) AVIVA 8) BIRLA SUNLIFE 9) ING VYSA 10) BHARTIA AXA LIFE INSURANCE 11) KOTAK MAHINDRA 12) TATA AIG LIFE INSURANCE 13) MET LIFE 14) SBI INSURANCE 15) ROYAL SUNDURAM 23 .4 COMPETITION INFORMATION There are fifteen players in India or we can say fifteen insurance companies which providing insurance and they are dealing with India.

W. Strengths Weaknesses Opportunities Threats Strengths y y y y Marketing expertise Big distributional channel Innovative product or services Brand name Weakness y y y y Similar products offered by the competitors Undifferentiated price in comparison to the competitors Anticipated returns are told to the customers Less of organization culture 24 .W.1.W.T.O.O. The S.O.5 S. Analysis is a technique used for identifying an organization¶s strength¶s and weakness and examining the opportunities and threats which the organization is facing.T. weakness.T. opportunities and threats of an organization. ANALYSIS S. Analysis is a technique for understanding strengths.

Opportunities y y y y y No startup capital required Flexible working environment Be your own boss Unlimited earning potential To be part of a world-class team Threats y y y y Price conflicts with the competitors Product and service conflicts with competitors Change in government policy regarding taxation Rapid launch of more companies in the same industry 25 .

CHAPTER 2 OBJECTIVE & METHODOLOGY 26 .

and OTHER INSURANCE COMPANIES IN INDIA.1SIGNIFICANCE OF THE STUDY: This is a limited study which takes into consideration the responses of 50 people. The significance lies in studying these trends that emerge from the study. People are only beginning to wake up its vast possibilities.2. This data can be explorated to differentiate various plans of RELIANCE LIFE INSURANCE CO. A study like this can attempt to guide the future of the industry based on current trends. y To provide ongoing financial advise for his/her clients: o Identifying future clients o Making appointments o Conduct financial review meetings with clients/prospects o Close sale o Get referrals o Provide service to clients y Follows internal sales and reporting system 2.2 MANAGERIAL USEFULNESS OF THE STUDY y y y y y Helps to have sale experience Helps to deal with different customers Helps to overcome the objections of the customers Helps to understand the problems of agents in a broader prospect It provides a platform where managerial role can be played effectively and efficiently 27 . Insurance sector is a rapidly changing and evolving sector.

2.3 OBJECTIVES
The objective of the project is to know about the product differentiation between Reliance Life Insurance Company And other insurance Companies. ³Insurance should exist everywhere and should be available to anyone one who want its protection and who wants his/her life secured, whenever, wherever on this planet´. To fulfill this goal just producing high quality product is not sufficient, an effective distribution system holds the key to achieve a ultimate goal. Another major objective of the project is to know about the consumer preferences towards the insurance and also aware the consumer about the reliance life insurance co.

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2.4 SCOPE OF THE STUDY
1) To study the present consumer buying behavior towards insurance policies process in the organization at various levels, 2) To find the awareness level of employees vis-à-vis consumer buying behavior towards insurance policy and 3) To compare the company¶s consumer buying behavior towards insurance policy with the best HR practices in consumer buying behavior process.

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2.5 METHODOLOGY
In order to make this project effective and to show the real picture of the status and the reach of those life insurance companies, I have undertaken the following steps: 1. First searched the premium payment options of Reliance Life Insurance and then understood them through their website. 2. Then collected and chose the names of 9 of the most satisfactory life insurance companies 3. After that searched for the modes for collecting the information regarding the premium payment channels of other insurance companies like through logging on to their websites, through phone enquiry or by visiting their branch office. 4. I opted all of the three modes for the completion of this project. 5. Then started off one by one with all the selected life insurance companies. 6. I also collected information regarding the untouched places or the places where Reliance Life Insurance has its branch offices yet. 7. Also swapped all those premium payment options that Reliance Life Insurance offer but which are available with other life insurance companies and elaborated them. 8. At last after collecting all the essential data, I omitted the incomplete / unnecessary data and then made a comparison between Reliance Life Insurance Company and all the other chosen life insurance companies along with it elaborating about the 9 companies.

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DATA SOURCE:
POPULATION:

In statistics, a statistical population is a set of entities concerning which statistical inferences are to be drawn, often based on a random sample taken from the population. For example, if we were interested in generalizations about crows, then we would describe the set of crows that is of interest. Notice that if we choose a population like all crows, we will be limited to observing crows that exist now or will exist in the future. TYPES OF DATA USED: PRIMARY DATA: It is collected directly from people and organization via questionnaires or surveys before being analyzed to reach conclusions concerning the issues covered in the questionnaire or survey.

VARIOUS SOURCES: y y y QUESTIONNAIRE PRODUCT PAMPHLET PERSONAL OBSERVATION

SECONDARY DATA: Secondary data - collected by are others to be "re-used" by the researcher. VARIOUS SOURCES y y y NEWSPAPERS INTERNET PROSPECTOUS

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Ways of Using Secondary Sources: o Exploratory phase - getting ideas o Design Phase - definitions & sampling frames, question wording o Supplement to Main Research o Re-Enforcement &/Or Comparison o Main Mode of Research o Direct Data Collection Impossible o Or Costly & Time Consuming

y

How to Search & Use Secondary Sources?

o Documents - Bibliographic Skills, Use of Keywords, Boolean Operators o Published Statistics o Guide to Official Statistics o Digests & Abstracts

Methods used:

Sample Size: 50 Sample unit: Different areas of North Delhi. Sampling Technique: Convenient sampling

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CHAPTER-3 CONCEPTUAL DISCUSSION 32 .

It is a flexible plan which works all through your life and meets the changing requirements like additional protection. with maximum maturity age of 80 years y y y y y y y Option to create your own portfolio depending on your risk appetite Choose from 4 different investment funds Flexibility to switch between funds Option to pay regular as well as single premium & Top-ups Option to package with Accidental riders Flexibility to increase the Sum Assured Liquidity through partial withdrawals Benefits Life Cover Benefit: You can choose the basic Sum Assured within the minimum and maximum levels mentioned below 33 . steady golden years and many more.INTRODUCTION OF RELIANCE LIFE INURANCE PRODUCTS A. Market Return Plan With Reliance Market Return plan you can have the twin advantage of insurance protection as well as reaping the benefits of investment growth. Key Features ± Reliance Market Return Plan: y y Twin benefit of market linked return and insurance protection A Unit Linked Plan. option to invest in different asset class. liquidity through cash. different form traditional Life Insurance products.

000 for age up to 12 years) In case of unfortunate loss of life. 34 . at maturity the value of your Unit Account will be paid out Rider Benefit: You can add the Accidental Death & Accidental Total and Permanent Disablement Benefit Rider (available only with regular premium option). Money Guarantee Plan For the select few like you. your Beneficiary will get sum Assured or Unit Account Value whichever is higher. The maximum cover is Rs. the Reliance Money Guarantee Plan is a Unit Linked product addressing comprehensive need to strike that perfect balance of Protection and Savings.Minimum Sum Assured: y y Regular Premium: Annualized Premium for 5 years or for half the Policy term Single Premium: 125% of the single premium Maximum Sum Assured: No Limit (Rs 500. This benefit doubles the life coverage in case of accidental death or accidental total and permanent disablement at a very nominal additional cost. 50. B. 00. Maturity Benefit: On survival. The Reliance Money Guarantee Plan is a Regular Premium Unit Linked Policy which guarantees the entire premium (including premiums for top. This is a plan which helps you reap all the benefits of a rising market simultaneously protecting you from the downside risk of the market.000 per life. that you deserve as you grow successfully.ups) paid by you.

The returns earned under the Basic Plan and top-ups will be transferred to Return Shield Fund if Return Shield option is selected. Funds available in respect of Return Shield Option: Return Shield Fund will be available if Return Shield Option is selected. y Capital Guarantee is available on both the basic premiums as well as on top-up premiums y y y Unique Return Shield feature to protect your returns Choice to invest from 3 pre-packaged investment fund options Unmatched flexibility through our µExchange Option¶ to move between the Reliance Money Guarantee suite of products offered. then Fund C would apply by default during the settlement period.Key Features y Capital Guarantee The sum of all premiums paid is guaranteed on maturity or on death before the maturity. Fund E and Fund F. c. as you grow up the ladder y y Liquidity in the form of partial withdrawals from top-up fund Option to package with Accidental Death & Disability and Term Insurance riders The Funds Options are: a. Funds available in respect of Basic Plan and top-up premium: The plan offers three funds for Basic Plan and top-ups . b. 35 . You have the option to decide your own fund mix with respect to premiums under the Basic Plan and top-ups.Fund D. Funds available during settlement period If you have opted for the settlement option.

even if something were to happen to you. With Reliance Whole Life Plan you can be sure that your family will receive that timely financial support they need. Reliance Automatic Investment Plan: The Key benefits of Reliance Automatic Investment Plan are as follows: y y A smart plan which adapts to your changing risk profile with increasing age Option to lower the average cost of units through systematic transfer of your funds y y Flexibility to switch between funds and plans Options for additional Insurance cover available through riders 36 .C. Key Features y y y y y y Insurance protection till age 85 Choose to extend 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 & Total & Permanent Disablement Rider y Policy Loan available after three full years¶ premium payment D. Reliance Whole Life Plan You always loved your family. live your today to the fullest without a worry about tomorrow. Go ahead. As a loving person you also wanted to be rest assured in the knowledge that they will be happy.

limited. under the Ready-made Plan option y Freedom to decide your own fund mix based on your risk profile under the Tailormade Plan y y y y Regular. Premium Disability and Term Insurance riders E. UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. Reliance Golden Year Plan: The Reliance Golden Years Plan Value gives you the right kind of solution. single premium paying options Unmatched flexibility through our µExchange Option¶ Liquidity in the form of partial withdrawal Option to avail of Accidental Death Benefit. Key Features y y y y y Invest systematically and secure your golden years Four different investment funds to choose from Flexibility to advance your Vesting Age Tax free commutation of up to one third of fund value at vesting age Life cover and optional Accidental rider 37 . Accidental Total. A retirement plan that allows you to save systematically to generate a much needed corpus to make your olden years look golden.Key Features Reliance Automatic Investment Plan y y Two plan options to choose from Ready-made and Tailor-made Life Stage asset allocation to ensure automatic change in investment patterns.

providing a good education. Just imagine how much you'll need when your child takes these important steps in life! So that your child is able to lead a life of respect and dignity with a secured financial future. then fixed benefits payable will be Rs 25. 18th. establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. your priority is your child's future and being able to meet your child's dreams and aspirations. guaranteed fixed benefits on specified dates and all future premiums will be waived.000 each at the end of 17th. your Beneficiary will receive the Sum Assured immediately and all future premiums will be waived. All attached bonuses are payable at the end of the Policy Term and will remain attached to your Policy even after payment of Life Cover Benefit. Reliance Child Plan: You pay premium every year for the entire term and get guaranteed fixed benefits every year during the last four years of the Policy Term. Today. Guaranteed Fixed Benefit: Get 25% of Sum Assured every year on the last four Policy Anniversaries irrespective of the survival of the Life Assured. Benefits: Life Cover Benefit: In the unfortunate event of loss of life.PRODUCT DIFFERENCIATION BETWEEN RLIC AND OTHER INSURANCE COMPANIES. 19th and 20th year. For example if you have taken a Policy for Rs 1 lakh for 20 years. 38 . 1. On death. your Beneficiary will get the Sum Assured. Child Plan As a parent.

000 5 years 20 years 20 years 60 years 25 years 70 years No Limit 39 . Rider Benefit: You also have the option to add two additional benefits to customize the policy as per your needs. a.Maturity Benefit: On maturity you get accumulated bonuses irrespective of the survival of the Life Assured. Critical Illness Rider The Policy Term Minimum Policy term: Maximum Policy term: Age of entry Minimum age at entry: Maximum age at entry: Minimum age at maturity: Maximum age at maturity: Sum Assured Minimum Sum Assured: Maximum Sum Assured: Rs 25. Accidental Death Benefit & Total and Permanent Disablement Rider b.

Flexible Premium Payment Modes a.Surrendering the policy: We provide you the option to surrender your Policy and receive the Surrender Value. less the total of any periodic lump sum fixed benefits already paid under this Policy. 1961. We guarantee a minimum Surrender Value of 30% of the total premiums paid (excluding any extra premiums and premiums for additional benefits) subsequent to the first year premium. Your plan acquires a Surrender Value after 3 years¶ premium has been paid and after three years have elapsed form date of commencement of Policy. Under Section 80C. If your Policy has accumulated any bonuses. Quarterly d.000 (Rs 15.000 for senior citizens) are allowed as deduction from your taxable income. the insurance protection provided under the Policy will also cease. Yearly b. Under Section 80 D premium upto Rs 10. Tax Benefit Premiums paid are eligible for tax deduction under Section 80C & 80D of the Income Tax Act. Half-yearly c. On surrender. Monthly (with salary deduction schemes only) Grace Period: One month or 30 days from the due date for the payment of premiums. 40 . then you will also receive the cash value of that total amount upon surrendering your Policy.000 are allowed as deduction from your taxable income. premiums upto Rs 100. Maturity & Death Benefit are tax free under Section 10(10) D of the Income Tax Act. 1961.

1.000 : Rs. LIC child plan: Introduction: This plan is specially designed to meet the increasing educational.00. 100. Eligibility Conditions (a) Minimum Entry Age (b) Maximum Entry Age (c) Minimum Maturity Age (d) Maximum Maturity Age (e) Minimum Sum Assured (f) Maximum Sum Assured (g) Policy term (h) Premium Paying term : 0 years (last birthday) : 12 years (last birthday) : 23 years (last birthday) : 27 years (last birthday) : Rs. Payment of Premiums: You may pay the premiums regularly at yearly.00.e. quarterly or through Salary deductions over the term of policy. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i. 7 years after the expiry of policy term). half-yearly. Premiums may be paid either for 6 years or up to 5 years before the policy term. The Guaranteed Surrender Value will be as under: 41 . A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations. marriage and other needs of growing children.2.000 : 11 to 27 years : 6 years and Policy term less 5 years Surrender Value: You may surrender the policy for cash after at least three full years¶ premiums have been paid.

The Special Surrender value will be payable provided the same is higher than Guaranteed Surrender value. The Guaranteed Surrender value calculated above will be subject to the deduction of the total amount of survival benefits that might have become due on or before the date of surrender. After commencement of risk: 90% of the total amount of premiums (excluding premium for the first year) paid before commencement of risk and 30% of premiums paid on and after the commencement of risk. ii. when you experience various emotions you never thought you had. The cash value of any existing vested bonuses. What will your child grow up to be in the future? Will his/her future be as secure as you want it to be? Or more importantly what can you do to make sure his/her future is hassle-free and secure? So. Further all extra premiums and/or any other premium including premium for Premium Waiver Benefit shall not be considered in the premiums refunded. But parenthood also brings its own set of apprehensions and worries. however. Corporation may. as applicable on date of surrender. Grace Period: A grace period of one calendar month but not less than 30 days will be allowed for payment of premium 3. planning ahead for your child¶s future needs such as higher education is extremely important and ensuring that you have the ability to fulfill those needs is even more critical.i. if any. Parenthood is wonderful and it is one such stage. Max New York Child Plan: Life has innumerable surprises stored for us. Before commencement of risk: 90% of the total amount of premiums (excluding premiums for the first year) paid. 42 . will also be paid. pay Special Surrender value as the discounted value of Paid up value and existing vested bonus.

000/Premium Regular Benefits: Maturity Benefit: Face Amount plus Accrued bonus (if any) on life insured's survival to maturity Death Benefit (Life Insured): Refund of Premiums plus Interests plus Accrue bonus (if any) On Surrender of Policy: Cash value as built in the policy will be paid at the time of surrender of policy.000.Max New York Life presents Children's Endowment Participating Insurance to age 18 with an option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time). Bonus Options: Bonus is not declared for the first 3 years of the policy.000/Maximum Face Amount Rs. This policy which is especially designed to enable you to provide for higher education of your child and take care of your child¶s future needs in case of spiraling costs. 100. 5. Features: Eligibility Criteria Eligibility Age at Entry Criteria 91 days to 13 years Maturity Age Minimum Face Amount 18 years Rs. 43 . There is no cash value till 3 years premiums have been paid in full.

Bonus declared by the company will be paid out to the policy holder Non-Forfeiture Options: Reduced Paid Up: A lower Sum Assured for the remaining term of your policy. The rider covers all the disability benefits under the WOP along with the Death. you can choose to take cash value by Cheque.45 Years (Whole Life Participating) 20 . this rider covers the life of the proposer of the policy. ³Total Disability´ or Totally Disabled´ refers to the proposer becoming permanently and totally disabled as a result of injury or sickness and thereby totally incapable of engaging in any 44 .55 Years (All other plans) Benefits A variant of the WOP rider. this will ensure the policy continues even if the proposer were to be disabled or is no longer there to pay the premiums. the benefits payable under the policy shall automatically vest with your child ± so that your child receives the benefits. A wonderful add-on to children products. Payor Rider Age 20 . In case you do not want the above. Unique Features in This Policy: Upon your child attaining the age of 18.At the time of Bonus declaration the following Bonus Option is available: Paid in Cash . he/she will have the option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time). On maturity of the policy.

This is ideally suited for Children¶s Endowment product issued by Max New York Life Insurance. Quarterly and Monthly Modes Level Multiply by the appropriate factor: Annual Semi Annual Quarterly Monthly 1.000 0.265 0. compensation.520 0. or profession to earn or obtain any wages.090 45 . remuneration or profit.gainful activity or carry out any work. Individual/Group Expiry Age Individual 55 Years (Whole Life Participating) 60 Years (All other plans) Face Amount Range Linked to base and relevant rider premiums subject to underwriting Premium Payment Term Calculation of Modal Premiums Semi Annual. occupation.

at a nominal extra cost. y Free Look Period . 1961. 46 this . Tax Benefits. Tata AIG child plan: This is a first-of-its-kind juvenile endowment policy geared toward funding your child¶s education. Key features of both of these plans include: y A guaranteed payment of 10% of the sum assured at maturity or on death (policy must be in force for a minimum 10 years). nominal y Sum Assured is payable on death or on maturity. payable to you at maturity. y A non-guaranteed compounded annual bonus credited on the policy anniversary (depending on Company performance). depending on your needs: y Assure Educare 18: This plan matures when your child turns 18 and is open to children between 0 years and 8 years of age. Section 80C of plan is exempt from y A Payor Benefit Rider is available which waives all future payments for policy in the event of your death or disability.A money-back guarantee. Riders and Age Eligibility: y Premiums paid under this plan are eligible for tax benefits under the Income Tax Act. y A terminal bonus which is payable on death or maturity (policy must be in force for a minimum 10 years). and is open to children between 0 years and 11 years of age. which allows you to return the policy within 15 days of receipt for a full refund (minus administrative charges). You can choose between Tata AIG Life Assure Educare 18(Assure Educare 18) and Tata AIG Life Assure Educare 21(Assure Educare 21). Any sum received under this tax under section 10(10D) of the Income Tax Act. 1961. y An additional guaranteed education benefit of 20% of sum assured.4. y Assure Educare 21: This plan matures when your child turns 21.

Key Features: y y y y y y On maturity receive Sum Assured plus bonuses Wealth creation through bonus additions More value for your money by way of High Sum Assured Rebate Increase your insurance protection by adding Term Cover Choose to pay regular or single premium Choose to add the benefit of two riders . Rider Benefit: You also have the option to add three additional benefits to customize the Policy as per your needs for the regular premium plan a. Life Cover Benefit: In the unfortunate event of loss of life.Critical Illness Rider and Accidental Death Benefit & Total and Permanent Disablement Rider y Choose to avail of a Policy Loan after three full years¶ of premium payment Benefits: Maturity Benefit: On maturity you get Sum Assured plus accumulated bonuses (if any) till that date. RELIANCE ENDOWEMENT PLAN: Reliance Endowment Plan gives you just the financial independence to realize your dreams in the future. your family will receive the Sum Assured plus accumulated bonuses (if any) till that date. It lets you decide how much you would like to set as your sum assured based on your current financial position and your expected future expenses. Term Life Insurance Benefit Rider b. Accidental Death Benefit & Total and Permanent Disablement Rider c.ENDOWMENTS PLAN: 1. Critical Illness Rider 47 .

Term Insurance Minimum / Maximum Age at entry Maximum Age at expiry Sum Assured Policy Term Minimum Policy Term: Maximum Policy Term: Premium 18 / 59 64 yrs (policy anniversary immediately following age) Rs 1. There is no Maturity Benefit.00.35 years (Single) 15 years The Policy Term: Minimum Policy Term: Maximum Policy Term: Premium 5 years Regular Premium ± 35 years (Single) 15 years 48 .000 Equal to basic policy sum assured Equal to basic policy term 5 years Regular Premium .Term Life Insurance Benefit Rider: Add the advantage of the Term Life Insurance Benefit rider to your basic Policy and increase risk coverage. In the event of unfortunate loss of life the Term Life Insurance Benefit is payable and the amount payable is equal to the rider Sum Assured.

Rs 5.00.000 No Limit 49 .Entry age: Minimum age at entry: Maximum age at entry: Minimum age at maturity: Maximum age at maturity: 5 years 65 years 18 years 75 years The Sum Assured: Minimum Sum Assured: Premium it is determined Maximum Sum Assured: Entry age 18 years and above Regular Premium ± Rs 25.000 For Single by the minimum premium Entry age below 18 years .

Surrendering the policy: You have the option to Surrender your Policy and receive the Surrender Value. plus the cash surrender value of any vested bonuses. We guarantee a minimum surrender value of 70% of the single premium paid excluding any extra premium plus the cash surrender value of any vested bonuses. then you will also receive the cash value of that total amount upon surrendering your Policy. We guarantee a minimum surrender value of 30% of the total premiums paid (excluding any extra premiums and premiums for additional benefits) subsequent to the first year premium. 50 . LIC Endowment Assurance Plan: Features: y y y y Moderate Premiums High bonus High liquidity Savings oriented. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time. This policy not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. the insurance protection provided under the policy will also cease 2. Premiums are usually payable for the selected term of years or until death if it occurs during the term period. Your regular premium plan acquires a surrender value after 3 years¶ premium has been paid and after three years have elapsed from date of commencement of Policy. Your single premium plan acquires a surrender value as soon as you pay your premium. If your Policy has accumulated any bonuses. On surrender.

Suitable For: Being an endowment assurance policy. but also assures a lump sum at any desired age. becomes payable at the end of the endowment term when it may be invested to provide an annuity during the remainder of his life or in any other way he may think most suitable at the time. Yearly. Quarterly.) Term (years) 12 50000 5 65 NO LIMIT 55 Maximum Mode Of Payment Monthly. if not paid by reason of his earlier death. Salary Saving Maximum Premium Paying Period Policy Loan Available 75 Years Yes 51 .Benefits: This is the most popular form of life assurance since it not only makes provision for the family of the Life Assured in the event of his early death. Minimum Entry Age Sum Assured (Rs. The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder's life or in any other way he may think most suitable at that time. The amount assured. this plan is apt for people of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. HalfYearly.

424 for 15 year term Premium Limited 6 pay for 12 years term 6 or 12 pay option for 15 years term 52 . which would cater to your insurance needs. 3. 2. Features: Eligibility Criteria: Criteria Entry Age Max Maturity Age Eligibility 18 to 50 year 65 years for 15 year plan 62 years for 12 year plan Policy Term Minimum Sum Assured (SA) Maximum Sum Assured (per life) 12. Max MangalŒ Endowment (Participating) Policy is a unique plan with limited premium paying term by which you can reduce your financial burden and enjoy increasing life cover for the entire term. This Policy will let the customers enjoy a ³Mangalmay Life´ without any stress and strain. Max New York Endowment Plan: An ideal insurance plan is one that addresses the exact insurance and financial needs of individuals and Max New York Life offers an array of excellent insurance plans.236 for 12 year term Rs. 2. As the name suggests itself.Scheme.33. 50.09. 000 Rs.15 years Rs.

your dependants will receive the sum assured. A Terminal bonus paid on maturity or death if the policy has been in force for a minimum 10 years. you will receive both the sum assured as well as a host of bonuses. 53 .Key benefits: y y y y y y y y y y y Assured High Returns : Guaranteed 110% of sum assured at maturity Higher Security: Increasing life cover @ 6. Key features include: ‡ A guaranteed addition of 10% of the sum assured if the policy has been in force for 10 years or more.5% per annum Additional Maturity Benefit: Additional regular bonus payable at maturity Peace Of Mind: Life Cover Increases even after premiums are fully paid Flexibility: Option to choose tenor of 12 or 15 years Easy To Plan: Pay premium only for 6 or 12 years Easy to Own: No Medicals Easy To Apply: Easy to fill proposal form Save Tax: Tax benefits u/s 80C & 10(10D) No Obligation: 15 days free look period Quality Of Service: Service from an ISO 9001:2000 company 4. ‡ ‡ A reversionary bonus is payable on death or maturity. In the unfortunate event of your death. Should you live past the term of the policy. is payable on death or maturity. otherwise your savings will continue to grow. Tata AIG Life Endowment Plan: Tata AIG Life Assure Golden Years (Assure Golden Years) is an endowment policy that provides both safety and steady returns.

Riders and Age Eligibility:  Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act.   Term. Disability and Critical Illness riders are available for added protection.Tax Benefits. Policy duration runs from the time of purchase up to age 60. 1961. Any sum received under this plan is exempt from tax under section 10(10D) of the Income Tax Act. Accident. 1961. 54 .

CHAPTER-4 DATA ANALYSIS 55 .

12 8 6 2 2 very good good average below average poor very poor Interpretation: Out of 50 consumers surveyed 20 voted for having a very good trust on insurance co. In both of them 2(4%) respondent voted f for poor and 2(4%) respondent voted for very poor trust on insurance 56 .DATA ANALYSIS 1. Poor and very poor trust both are voted for the same ranks. TRUST ON INSURANCE COMPANIES Trust on insurance co. 25 20 20 15 10 5 0 2. which is 40%.

2. TRUSTABLE FIRMS TRUSTABLE FIRMS 18. Out of 50 respondents 18 voted for the private firms. 36% 32. which is 36%. which is 64%. 64% government private Interpretation: Out of 50 respondents32 voted for the government firms. 57 .

PREFERABLE COMPANIES PREFERABLE COMPANIES HDFC LIC RLIC ICICI PRUDENTIAL OTHERS 2. which is 12%. 64% 6.3. which is 4%. 6 of them voted for the RLIC. 58 . 4 voted for the ICICI PRUDENTIAL. 12% Interpretation: Out of 50 respondents 6 of them voted for the HDFC. And rest of the 2 respondents voted for the others. 8% 6. 12% 32. which is 64%. 32 respondent responses for the LIC as a preferred company.. 4% 4. which is 4%. which is 12%.

which is 2%. 98% Interpretation: Out of 50 respondents 49 of them voted for the ³yes´. BRAND NAME IS IMPORTANT BRAND NAME IS IMPORTANT NO. And rest of the 2 voted for ³NO´. 2% YES NO YES. 59 . 1.4. 49. which is 98%.

2 of them get ³5%-10% rate of benefit. RATES OF BENEFIT RECEIVED 25 20 NO. 9 voted for the ³10%-20%´ rate of benefit.5. RATES OF BENEFIT RECEIVED FROM PREFERABLE CO.OF 15 INSURERS 10 5 0 21 9 10 3 1 BENEFIT RATES Interpretation: Out of 50 respondent 3 get ³below 5% ³rate of benefit from their preferred co. 4 3 BELOW 5% 5-10% 10-20% 20-40% 40-60% ABOVE 60% 60 . 4 respondents voted for the ³40%-60%´ rate of benefit. 10 voted foe ³20%-40%´ rate of benefit. 3 of them voted for the ³above 60%´ rate of benefit.

6. 4% 8. 16% 25. 50% 15. of members insured in the family below 3 btw 3-5 btw 5-6 above 6 2. NUMBER OF MEMBERS INSURED IN THE FAMILY no. 30% Interpretation: Out of 50 respondents 25 voted for the ³below 3´. which is 30% 8 voted for the ³5-6´. which is 50% 15 respondents voted for the ³3-5´. which is 4% 61 . which is 16% 2 respondent voted for the above´6´.

which is 70% 62 .7. INVEST ENT PLAN WITH THE PREFER CO. INVESTMENT PLAN WITH THE PRFER CO. 35 respondents voted for the ³no´. 30% NO. 35. 15. 70% Interpretation: Out of 50 respondents 15 respond for the ³yes´ which is 30%. YES NO YES.

SATISFACTION FROM THE PREFER CO.OF INSURERS Series1 20 15 10 5 0 18 12 14 6 QUITE 63 VER SATISFIED Interpretation: Out of 50 respondents 12 voted for the ³very satisfied´ 14 voted for the ³somewhat satisfied´. they voted ³not at all´ SOMEWHA T NOT AT ALL . NO.8. 6 respondents are not satisfied with their prefer co. 18 respondents are ³quite satisfied´ with its preferred company. SATISFACTION FROM THE PREFER CO.

30 voted for the ³insurance´. facilites received 30 25 20 no. DIFFERENT KINDS OF FACILITIES RECEIVED FROM THE PREFERD CO. 2 voted for the ³others´. 64 .9. 10 voted for the ³funds´. 20 voted for the ³loan´.of 15 insurers 10 5 0 30 20 10 2 1 facilites 18 credit card loan insurance funds others Interpretation: Out of the 50 respondents 18 voted for the ³credit card´. .

SATISFACTION WITH THE BETTER PERFORMANCE pr fer o.10.provi ing etter products 30 30 20 no of 20 insur rs 10 0 yes no Series1 Interpretation: Out of 50 respondents 30 voted for the ³YES´. 20 voted for the ³NO´ 65 .

11. 18Voted for the ³RLIC´. 20 NO OF 15 CUSTOME 10 RS 5 0 8 18 12 6 6 HDFC ICICI RLIC LIC 1 OTHERS COMPANIES Interpretation: 8 voted for the ³HDFC´. 6 Voted for the ³ICICI PRUDENTIAL. 66 . 6 Voted for the ³OTHERS´. 12 Voted for the ³LIC´. PREFER AS SUPPLEMENTED COMPANY PREFER AS SUPPLEMENTED CO.

PROVIDING A TRANSPARENCY TRANCEPRACY 24% 28% YES NO CAN'T SAY 48% Interpretation: Out of 50 respondents 28% voted for the ³YES´ 48% respond for the ³NO´. PREFERD CO. 24% respondents voted for the ³CAN¶T SAY´ 67 .12.

PREFERD CO.13. 15 voted for the ³NO´. 68 .OF 10 INSURERS 5 0 YES NO DON' T KNOW 15 15 Series1 PREFERANCES Interpretation: 20 respondents voted for the ³YES´. PROVIDING A SWITCHING SYSTEM SWITCHING SYSTEM 20 20 15 NO. 15 voted for the ³DON¶T KNOW´.

PREFERD CO. 12 respondents voted for the ³NO´. 69 . 18 voted for the ³DON¶T KNOW´.OF 10 INSURERS 5 0 YES NO DON' T KNOW 12 18 Series1 PREFERANCES Interpretation: Out of 50 respondents 20 voted for the ³YES´.14. PROVIDING A SURCHARGE BENEFIT SURCHARGE BENEFIT 20 20 15 NO.

CHAPTER-5 FINDINGS & RECOMMENDATIONS 70 .

64% voted for the government firm and they having a more trust on the government firm but the rest of the insurers are insured from the private firm. 4. 5. 71 . 10. due to which new insurance companies are facing trouble in capturing market share. People have started living in nuclear families.FINDINGS: As after the survey forms where filled we done a research as to what generally people are looking for and the key thing is the 64%people prefer LIC because it¶s a government firm. 8. Majority of the people don¶t know Reliance Life Insurance. LIC has created a branded image in 3-4 decades. People are less aware about the private insurance company in market. Maximum of the people haven¶t planned their future. People don¶t trust private players. retirement and some for medical illness etc. Biggest concern of the people about there future is a mixed bag according to there age and responsibility some look for child education. that easily. Mostly people have 4 to 6 members in there families. 3. 7. 2. People don¶t give there Address and Phone no. 6. 1. People want to earn extra money but don¶t want to devote time. 36% insurer prefer the private firm because the believe that the private firm provide better facilities as compared to the government firm. Most of the insurers does not having an investment plan they only having a insurance with their prefer company most of the insurer prefer that brand name of the company is important for the company product. Some of the insurers don¶t prefer the reliance insurance company because they are not aware about their products. 9.

The market players needs to explore this untapped potential through their marketing and sales network. This makes it harder for competitors to overcome switching banks by simply offering higher interest rates to other switching inducements.RECOMMENDATIONS: o Advertisements should be on mass basis. o The penetration of insurance in India is around 22%. o More and more branches should be opened. This indicates that a vast majority of rural population is not covered. o The best way to strengthen customer retention is to deliver high customer satisfaction. o There should be professional attitude amongst agent and advisors as well. The buzz work today is ³Relationship Marketing´ which can be carried out very effectively by conducting continuous training & development programs for the customer care officers. 72 .

ANNEXURE: 73 .

LTD. LTD. y NAME y AGE y GENDER ADDRESS MALE FEMALE y y OCCUPATION CONTACT NO. And we are conducting a survey concerned with products of RELIANCE LIFE INSURANCE CO. Will you please be kind enough to spare few minutes to answer some questions I assure you that answer will be kept confidential. y 74 . and OTHER INSURANCE PLAYERS IN THE MARKET.QUESTIONNAIRE HELLO! I am from RELIANCE LIFE INSURANCE CO.

HDFC 2. RLIC 4. Ltd. HDFC Standard Life Insurance Co. From which company have you bought an insurance product? Reliance insurance Co Ltd. Ltd. Life Insurance Ltd. ICICI 5. Any other Q 2) IF YES THAN WHICH FIRM IS MORE TRUSTABLE ACCORDING TO YOU? GOVERNMENT PRIVATE PUBLIC Q 3) WHICH COMPANY YOU PRFER THE MOST? AND WHY? 1. LIC 3.Q 1). ICICI Prudential Life Insurance Co. OTHERS (PLEASE SPECIFY!) Q 4) DO YOU THINK BRAND NAME IS IMPORTANT? YES NO 75 .

Q 5) HOW MUCH RATE OF BENEFIT ARE YOU RECEIVING FROM YOUR PREFER COMPANY? a) Below 5% b) 5% .6) HOW MUCH PEOPLE ARE INSURED IN YOUR FAMILY? y y y y Below 3 3-5 5-6 Above 6 Q.7) DO YOU HAVE ANY INVESTMENT PLAN WITH YOUR CO.10 % c) 10%-20% d) 20%-40% e) 40%-60% f) Above 60% Q. YES NO 76 .

IN WHICH FUNDS YOU MAKE AN INVESTMENT y y y y y Capital fund Mutual funds Bonds Equity fund Balance fund y Others(please specify) Q 9) WHAT KIND OF FACILITIES YOU ARE RECEIVING BY YOUR PREFER CO.Q 8) IF YES. SERVICES OR FROM IT¶S PERFORMANCE a) Very satisfied b) Somewhat satisfied c) Quite satisfied d) Not at all 77 .? a) Credit cards b) Loan c) Insurance d) Funds e) Others (specify) Q 10) ARE YOU SATISFIED WITH THE CO.

? a) HDFC b) ICICI c) RLIC d) LIC Others (specify) Q 12) DOES YOUR PREFER CO.Q 11) WHICH CO YOU PREFER AS SUPPLEMENTED CO.PROVIDING A SURCHARGE BENEFIT? AS THE RLIC HAS ONE! Yes No 78 . PROVIDING A SWITCHING SYSTEM? AS THE RLIC HAS ONE! Yes No Q 14) DOES YOUR PREFER CO.PROVIDING A TRANSEPRACY? AS THE RLIC HAS ONE! Yes No Q 13) DOES YOUR CO.

80 15.909.55 13.45 2.338.65 3.91 4.836.68 169.88 2.12 2.65 16.95 8.26 3.700.29 5.24 870.144.51 1.294.85 5.750.043.59 1.34 2.62 11.20 62.086.05 6.60 2.76 1.473.01 491.346.65 79 .414.35 2.38 3.881.15 858.153.393.80 26.784.36 15.24 2.488.408.40 1.29 1.66 3.975.44 2.11 5.76 7.682.97 5.67 2.66 1.323.56 1.55 11.19 0.57 5.85 3.586.42 3.756.99 1.74 1.05 12.399.532.243.843.86 1.23 17.48 684.102.06 154.73 4.336.01 675.17 6.12 28.31 102.26 4.201.61 456.173.094.792.66 14.86 2.29 1.12 28.90 5.65 8.05 12.358.21 3.249.067.30 - 4.28 1.50 5.Profit loss account (In Lacs) Mar ' 09 Mar ' 08 Mar ' 07 Dec ' 05 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Administrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Equity dividend Preference dividend Dividend tax Retained earnings 29.425.389.61 8.933.65 165.57 4.325.802.95 758.37 - Earnings before appropriation 9.66 1.513.618.

93 45.098.126.01 3.01 9.56 2.93 45.37 31.625.01 1.000.783.63 18.31 0.454.01 1.022.555.01 18.46 35.69 2.32 20.688.154.533.107.365.00 950.60 31.38 0.117. loans & advances Less : current liabilities & provisions Total net current assets Total Notes: Book value of unquoted investments 31.374.177.392.658.032.57 14.032.63 13.57 15.27 82.38 4.04 0.781.238.126.527.434.13 9.61 19.82 4.25 3.515.43 9.43 Market value of quoted investments 0.395.336.844.12 Contingent liabilities 12.30 - 80 .45 3.85 166.14 5.09 31.96 4.70 15.01 1.593.04 27.503.732.14 5.Balance sheet (In Lacs) Mar ' 09 Mar ' 08 Mar ' 07 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets.05 611.364.158.02 19.55 7.10 25.43 Mar ' 05 Dec ' 05 50.903.86 7.093.887.185.364.434.23 - Miscellaneous expenses not written - 6.14 16.38 0.074.576.844.24 12.46 35.31 23.29 20.593.73 3.643.093.77 16.04 37.277.00 5.46 11.10 3.074.90 0.808.15 21.82 6.75 13.43 198.01 0.543.407.113.16 10.01 82.941.395.

27 20640.58 205.57 845.604.883.98 11.15 0.54 11.01 2.85 Mar ' 05 Dec ' 05 8.815.04 0.07 2.02 0.12 - -4.01 0.74 10.86 7.75 639.86 -10.00 20640.80 2.10 Cash flow (In Lacs) Mar ' 09 Mar ' 08 Mar ' 07 Profit before tax Net cash flow-operating activity Net cash used in investing activity Net cash used in fin.469.01 -2.231.420.405.18 0.982.240.92 0.66 10.234.Mar ' 09 Mar ' 08 Mar ' 07 Number of equity shares outstanding (Lacs) Mar ' 05 Dec ' 05 1.263.27 20446.25 6. activity Net increase/decrease in cash and equivalent Cash and equivalent begin of year Cash and equivalent end of year 4.15 4.650.162.87 2.01 81 .87 6.884.047.40 192.09 1.05 10.645.45 0.73 68.

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