A THESIS ON

´A comparative study on the offerings of Insurance products between Reliance Life Insurance Company Ltd Vs Life Insurance Corporation of Indiaµ By Kunj bihari paliwal (7NBJD032) (2007-09) A report submitted in partial fulfillment Of the requirements of MBA PROGRAM (Class of 2007-09) ICFAI National College J P NAGAR
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TABLE OF CONTENTS
1. Acknowledgment«««««««««««««««««««««««««««..3 2. Abstract/Summary .«««««««««««««««««««««««««««4 3. Introduction 3.1 Introduction««««««««««««««««««««««««««««.5 3.2 3.3

Objectives««««««««««««««««««««««««««««...7 Limitations««««««««««««««««««««««««««««.8 4. Research of design 4.1 Industry profile««««««««««««««««««««««««««..9 4.3 4.5 4.6 4.7 4.8 Advantage of Review 4.2

Company Company SWOT of Research life

profile«««««««««««««««««««««««««...11 product«««««««««««««««««««««««««.12 analysis««««««««««««««««««««««««««..15 literature««««««««««««««««««««««««.16 methodology«««««««««««««««««««««««17 insurance«««««««««««««««««««««.20 5.

Conclusion«««««««««««««««««««««««««««««.22

6. 7.

References«.««««««««««««««««««««««««««««.23 Appendices«««««««««««««««««««««««««««««24 2

I would like to express my sincere gratitude to Principal.ACKNOWLEDGEMENT The success of this final report is the outcome of Guidance and valuable suggestions provided by all the concerned without whom the report could not fide on the right back. . ICFAI. if I do not thank my parents. KUNJ BIHARI PALIWAL (7NBJD032) 3 . Finally. faculty supervisor of ICFAI NATIONAL COLLEGE. National College. I will be failing in my duty. and JP NAGAR for giving me an opportunity to do this project work. friends and well wishers for their enthusiastic support and who have directly or indirectly helped in some way or the other in making this final report a success. I express my sense of deep gratitude to Mrs. JP NAGAR for her inclusions and timely suggestions in the preparation of this final report. Mrs.

When the groups start to examine its experiences and reflect upon them. perceptual awareness etc. 4 . mind mapping. group training. A Management Thesis is the culmination of training provided to the student on practical applicability of the theoretical concepts learned by them. are extremely important. The objective of a Management Thesis is to train the student in designing and implementing a research project in respect of a business problem. In this study we look at the options of experiential learning and embedding to the skills and how the organization get the accreditation from its training course and develop the employee exactly and smartly using applying different models like 360o feedback. training by telephone. The purpose of the action situation is to have participants generate their own data about each of the key concepts to be studied. the trainer must be a good observer of behavior. Training is essential to order to understand how to implement the core principle of coaching and learning. he is in a position to assist with this process. People with integrity like helping other and enjoy making different others.SUMMARY Management Thesis is a part of the MBA Program. Most of the people attracted up to the profession or precisely the once who are likely to make good trainers. His responsibilities in focusing learning. Experiential learning and embedding skills is an action oriented behavioral situation. To get the best from experiential learning and embedding skills method. and making it clearer for each participant.

9. There are fifteen private life insurance companies has entered the industry. For the past five years private players have launched many innovations in the industry in terms of products. The various life insurers entered India:1. 5. But nowadays the market opened up and there are many private players competing in the market. 6. HDFC Standard Life Insurance Company Ltd. in India the year 2000 was a landmark year for life insurance industry. Max New York Life Insurance Co.INTRODUCATION Insurance is an upcoming sector. 7. Tata AIG Life Insurance Company Ltd. ING Vysya Life Insurance Company Private Limited. 5 . with LIC as the only company. 8. 2. 4. In the last five years the private players is able to expand the market (growing at 30% per annum) and also has improved their market share to 18%. in this year the life insurance industry was liberalized after more than fifty years. SBI Life Insurance Company Limited. the market share of LIC has been considerably reduced. 10. Met life India Insurance Company Ltd. ICICI Prudential Life Insurance Company Ltd. Insurance sector was once a monopoly. Birla Sun Life Insurance Company Ltd. Ltd. a public sector enterprise. 3. Kotak Mahindra Old Mutual Life Insurance Limited. market channels and advertisement of products. After the entry of these private players. agent training and customer services etc. Royal Sundaram Life Insurance Company Limited.

11. They are. 13. Shriram Life Insurance Company 14. Reliance Life Insurance Company Limited. 12. Through this project I want to study about the life insurance industry and also doing the comparative analysis between two insurance players in this industry. 15. Ltd. India Pvt. Reliance life insurance company limited Life insurance corporation of India 6 . Aviva Life Insurance Co. Life Insurance Corporation of India. Bharti AXA Life Insurance Company Limited. 16. Sahara India Insurance Company Ltd.

Respondents may have to be contacted repeatedly or alternate respondent may have to be identified. This study is limited to two private insurance companies only. For want of time is restricted. it may be hampered due to certain limitations. (Reliance life insurance company limited & Life insurance corporation of India) This study is limited to Bangalore city only.LIMITATIONS Thought the present study aims to achieve the above mentioned objectives in full earnest and accuracy. And getting accurate responses from the respondents due to their inherent problems. They may be refusing to co-operate. 8 INDUSTRY PROFILE . some of the limitations of this study may be summarized as follows.

This is the essence of insurance.´Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed amount of money on the happening of a certain event. In the western world. From then on life insurance made great strides in the country.Initially. life insurance evolved mainly from the maritime industry. It was in the early part of the 20th century that some kind of legislation was made to regulate the industry. A loss is paid out of the premiums collected from the insuring public and the insurance companies act as trustees of the amount collected. In is a system by which the losses suffered by a few are spread over many. Insurance in it's various forms protects against such misfortunes by having the losses of the unfortunate few paid by the contribution of the many who are exposed to the same risk. At the time of independence and thereafter. there were more than 200 companies operating in India and not all of them on sound ethical principles. .µ Insurance is a protection against financial loss arising on the happening of an unexpected event.the sharing of losses and substitution of certainty for uncertainty. Indians were not considered on par with Europeans as far as their insurability was concerned. Many factors combined 9 together to prompt the then government to nationalize the life insurance industry in 1956 to form the Life Insurance Corporation of India. Insurance companies collect premiums to provide for this protection. The primary purpose of Life Insurance is the protection of the family. There were also many other failures. exposed to similar risks. life insurance has its origin in England and made its debit in India in the year 1818. Started by private financiers who used to gamble on the lives of seafarers by offering five times the money deposited with them in case of certain contingencies? In its present form.

The life insurance industry in India has become fiercely competitive with the entry of several new players including major multinational insurers after the deregulation of the sector. It has witnessed a big growth as many Indian and foreign were entered in to the Indian insurance sector. By the passing of the IRDA Bill. Liberalization ensured competition in many fields and there was a clamor that the insurance industry too is opened up to Private Indian and foreign players to provide the customer with a choice. the Insurance sector has been opened up for the private companies to carry on insurance business. It has opened up a range of untapped opportunities for new entrants into the industry.The years from 1956 to 1999 saw the life insurance corporation of India emerge as a giant financial institution and the lone organization purveying life insurance. The Malhotra committee. It was in the 1990·s that the winds of change started sweeping over India and brought in their wake many changes in the economy. 10 ‡ 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 ‡ Flexibility to switch between funds and plans ‡ Options for additional Insurance cover available through riders . if we ignore the minimal presence of postal life insurance. Now the life insurance industry in India is rapidly evolving and growing. as the potential market for buyers is high since the emerging market in India has a low insurance penetration and high growth rates. The report submitted by the committee was the precursor of the IRDA Bill. appointed in 1993 was given the mandate to study the industry and to suggest the changes that were necessary to make it modern and in tune with people·s aspirations. The institution succeeded in penetrating in many areas and segments of the population and in garnering public money for public welfare.

under the Ready-made Plan option ‡ Freedom to decide your own fund mix based on your risk profile under the Tailor-made Plan ‡ Regular. net of Premium Allocation Charges and Sum . The premium contributions made by you. limited. Accidental Total.Key Features Reliance Automatic Investment Plan ‡ Two plan options to choose from Ready-made and Tailor-made ‡ Life Stage asset allocation to ensure automatic change in investment patterns. Premium Disability and Term Insurance riders How does this Plan work? As a customer you will have the liberty to choose between the Ready-made and Tailor-made Plan options. single premium paying options ‡ Unmatched flexibility through our µExchange Option¶ ‡ Liquidity in the form of partial withdrawal ‡ Option to avail of Accidental Death Benefit.

The Fund Value is the total value of units that you hold in the fund/ funds. Reliance Automatic Investment Plan at a glance Basic Plan Minimum .Assured Related Charges are invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units. whereas the Fund Management Charge is priced in the Unit Value.

whichever higher Single Premium 125% of the single premium amount Max Sum Assured No Limit Minimum primium 13 Regular Premium option .Maximum Age at Entry 30 days 65 years last birthday Age at Maturity 18 years last birthday 80 years last birthday Premium Paying Term 5 years 30 years Min Sum Assured Regular / Limited Premium: Annualised Premium for 5 years or Annualised Premium for half of the policy term.

500 Rs 1. The LIC of India retirement income plan is a participating plan.500 PENSION PLAN PRODUCTS OF LIC INDIA & ITS FEATURES ‡ LIC of India retirement income plan ‡ LIC of India retirement income plan (unit linked) What is the LIC of India retirement income plan? 14 The LIC of India retirement Income plan is a saving plan designed to meet your post ²retirement needs.Rs 10.000 Limited Premium Rs 20.000 Single Premium Rs 25. It is a plan that gives you ´jeene ki azaadi ´.000 Rs 2. The plan comes in two forms: .000 Rs5.000 Rs 2.000 Min Top Up amount Rs 2.000 Rs10.000 Rs 5. It gives you the choice to remain independent even after retirement.

Well Efficient Management.One with cover and one without cover Who can avail of the LIC of India retirement income plan?µ How old do you have to be to avail of this plan?µ Minimum age -18 years Maximum age ± 60 years For what term can choose to pay the premiums? 5 years ± 30 years At what intervals can you pay premiums?´ ‡ Quarterly ‡ Half yearly ‡ Annually What are the advantages of this plan?´ ‡ You can choose to retire at any age between 45 years and 65 years. b. Dedicated Employees. ‡ On retirement: ‡ Annuity option: ‡ Early retirement benefits: Other products are: ‡ Money plus ‡ Auto plus ‡ Child plan ‡ Health plan SWOT ANALYSIS Strengths: a. .

TYPE OF RESEARCH The research includes different options. Descriptive research was adopted since it provides accurate picture about some aspect of market environment 18 such as which brand is performing well and what the company can do to improve its market share. SAMPLING PROCEDURE How should the respondents be chosen? To obtain a representative sample and non-probability . or frequency. This research is about understanding the market stand and also find the strength & weakness of the products of three insurance companies by making comparing analysis of the products of the companies. mainly descriptive research methodology are adopted. casual research must be undertaken. especially when dealing with people·s attitudes and motivation. Casual research: If the objective is too determined which variable might be causing a certain behavior that is whether there is a cause and effect relationship between variable. It is the initial research. before more conclusive research is under taken. It provides the number of time something occurs. it is important to hold the variable that is assumed to cause the change in the other variable constant and than measure the changes in the variable. In order to determine causality. They are: Exploratory research: It is usually a small-scale study undertaken to define the exact nature of a problem and to gain a better understanding of the environment within which the problem has occurred. lends itself to satisfied calculations such as determining average number of occurrences. This type of research is very complex and the researcher can never be completely certain that there are no other factors influencing the casual relationship. Descriptive research is used when the objective is to provide a systematic description that is as factual and accurate as possible. Descriptive research: It is to provide an accurate picture of some aspects of market environment.

ACTUAL COLLECTION OF DATA Data sources: The sources of data include either secondary data or primary data and even some times the combination of both. The present study is more concentration on both primary and secondary data. For collection of research data judgment-sampling technique is used where all of them are employees of the three insurance companies as they are good prospect for accurate information. Secondary data: The secondary data used for their study are inclusive of the data collected from the internet. they are Judgment sample: The researcher selects population numbers who are good prospects for accurate information. by meeting them in personal. . 19 METHODOLOGY The study will conduct on the bases of survey through questionnaires given to respondents. Primary data: Primary data is collected through face-to face interaction with employees of the insurance companies. catalogues and brochures and magazines.sample can be drawn.

Sampling Design Population:Bangalore Sample Size: Population of 100 Sample Technique: Convenience Sampling Statistical Tools: Correlation. 20 REFERENSES BOOKS: .

Life and Health Insurance ±Kenneth Black and Harold D.co m www.licindia.org www.com 24 APPENDICES QUESTIONNAIRE .reliance life insurance.Emmet J Vaughan and John Willy WEBSITES www. Fundamental of Risk and Insurance.irdaindia.

pursuing my MBA.I. Please mark the appropriate answer . student of ICFAI National Collage.Kunj bihari paliwal. I hereby request you to give your feed back on the questionnaire given below. I am undertaking a project ´A comparative study on the offerings of Insurance products between Reliance Life Insurance Company Ltd Vs Life Insurance Corporation of Indiaµ In view of this. carrying out a project work in partial fulfillment of my live project. Please note that your response will be kept confidential.

Is there any age. gender. Are you aware about the various plans offered by Insurance Company? a)Yes b) No 5. . or other limitation in getting insurance? a)Yes b) No 25 7.NAME--------------------------------------------------------------------------------AGE----------.Income-----------------------Contact number--------------------------------. According to you. Have u heard about Reliance Life Insurance? a)Yes b) No 4. Insurance policies are for? a) Child [ ] b) Adults [ ] c) Couple [ ] d) Old people [ ] 6.-------------------------------------------Address--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1.Nationality----------------------. Occupation a) Businessman [ ] b) Professional [ ] c) Students [ ] d) House wife [ ] 2. At what age should a person think about taking an insurance policy? ««. Do u have Insurance? If yes of which company? a)Yes b) No «««««««««««««««««««« 3.

How did you come to know about ULIP? Friends/Close circle Advertisements Agents Periodicals/Books/Internet Investors 11. Did you try out any other Company¶s policy? Yes No If any other please specify«««««««««««. Why did you prefer above-mentioned Reliance Life policy? High returns Security wide acceptance Less risk Flexible Tax benefit If any other please specify«««««««««««. Do you know about Unit Linked Insurance Plans (ULIP)? a) Yes b) No 10. How long have you been investing in the above Reliance Life policy? Less than 1 year 1 year-2 years 2 year-3years 3 years and more 14. In which Reliance Life¶s scheme did you invest? life invest life maker investment life maker premium life maker gold If any other please specify«««««««««««. How do you rate Reliance Life by our other company insurance Policy? Good Very good Average Bad can¶t say Thank you Date: Signature 26 . 16. 12. How do you rate the quality of service provided by Reliance Life? Good Very good Average Bad can¶t say 15. Have you or any of your family members got the benefit out of Insurance? a)Yes b) No 9. 13.8.

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