Comparative Analysis of LIC and Reliance Life Insurance

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A comparative analysis of lic insurance v-s reliance insurance

company
B.com(hons) (Guru Gobind Singh Indraprastha University)
Studocu is not sponsored or endorsed by any college or university

Downloaded by Mrunmayee Kulkarni (kulkarnimrunmayee15@gmail.com)
lOMoARcPSD|16803712
A RESEARCH PROJECT
ON
"A COMPARATIVE ANALYSIS OF LIC
INSURANCE V/S RELIANCE
INSURANCE"
Submitted in partial fulfilment of the
requirement of
Bachelor of Commerce B.Com(H)
UNDER THE GUIDANCE

SUBMITTED BY
Ms. Shalu Chauhan
Himanshi
Assistant Professor
B.Com(H) 6"sem
CPJ-CHS
50621588817
ECP Group of Institutions

GATEWAY TO KNOWLEDGE
(SESSION 2019-2020)
CHANDERPRABHU JAIN COLLEGE

OF HIGHER STUDIES
& SCHOOL OF LAW
AN ISO 9001:2008 CERTIFIED INSTITUTE
(APPRPOVED BY GOVT. Of
NCT of Delhi)
Plot no.OCF Sector A-8 Narela New Delhi-40

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DECLARATION
This is to certify that report entitled "Study and Comparison between Reliance
insurance and LIC' which is submitted by me in partial fulfilment of the
requirement for the award of degree B.Com(H) to GGSIP University, Dwarka,
Delhi comprises only my original work and due acknowledgement has been
made in the text to all other material used.
Date: Name of the Student: Himanshi
Approved by:
Ms. Shalu Chauhan

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CERTIFICATE
This is to certify that Report entitled "Study and Comparison between Reliance
insuranceand LIC which is submitted by Himanshi in partial fulfilment of the
requirement for the award of degree of Bachelor of Commerce (Hons) (2017-2020)
to G.G.S.I.P.U. University, Dwarka, Delhi, is a record of candidate own work
carried out by her under my supervision, the matter embodied in this thesis is
original and has not been submitted for the award of any mother degree.
Date: Supervisor Signature:

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ACKNOWLEDGEMENT
Ioffer my sincere thanks and humble regards to Chanderprabhu Jain College
of
Higher Studies & School of Law, GGSIPU University, New Delhi for imparting
us
very valuable professional training in B.COM (HONS.)
I pay my gratitude and sincere regards to Ms. Shalu Chauhan, my project
guide
for giving me the cream of her knowledge. I am thankful to heras she has been a
constant source of advice, motivation and inspiration. I am also thankful to her for
giving her suggestions and encouragement throughout the project work.
I take the opportunity to express my gratitude and thanks to our Computer Lab
Staff and Library Staff for providing me opportunity to utilize their resources for
the completion of the project.
I am also thankful to my family and friends for constantly motivating me to
complete the project and providing me an environment which enhanced my
knowledge.
Student's Signature

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APPENDIX
Table of Contents
Student declaration... .. ** * ****
Certificate from Guide *** *** *** *** * ****
Acknowledgement * . ** *** III

CHAPTER- 1: INTRODUCTION Page No
1.I Introduction oI InsSurancc * * : ** *** ***
1.2 Insurance Inaustiy ** * * *** *** *** *** *** *** ***
1.3 Methods of Insurance. * *** ***
1.4Insurance Principles...
1.5Insurance Companies. ******
****
******
1.6 Insurance Regulatory and Development Authority.

1.7 Why 'Sabse Pehle Life Insurance'?... .. ..
**
(1-32)
**** *** *
*
1.8 Role of Life Insurance in the Growth of the Economy ** ***
1.9 Types of Life Insurance in India....

1.10 Initial public offer (IPO) rules for insurance companies..
1.11 Insurer's Business Model. ***** *** *** *** *** *** **
1.12 Certain Competitors of LIC & Reliance Insurance

1.13 Key Highlights of Reliance Insurance
*** ** ** ** *** ***
1.14 Benefits of Reliance Life Insurance.

** **** ** ** ***
1.15 Different Types of Life Insurance Policies Offered by Reliance.

1.16 How to Claim Insurance with Reliance... ....
1.17 Reliance Life Insurance Customer Care...
1.18 Why to Opt For LIC Life Insurance Plans?
1.19 LIC Withdrawn Plans... ... ** ***** ***
1.20LIC Life Insurance Customer Care...

1.21 S.W.O.T Analyss... .. . .. ** **
CHAPTER-2: LITERATURE REVIEW (33-36)

CHAPTER- 3: RESEARCH METHODLOGY
3.1 Objective of the Research. ** ***
*** ** *** *** *** *** * *******
3.2 Types of Research...

3.3 Research used in Project. .... * ******* ***
3.4 Sources of Data... ** ** ***********
3.5 Sources of data used in Project.. * *** ** (37-40)

3.6Population **
** ** *** *** **
3.7 Sample... **
. ***
**
3.8 Sample Size ..

*** ******* *****
**
3.9 Limitation of the Study... . *** **
CHAPTER-4: ANALYSIS& INTERPRETATION OF DATA (41-73)

CHAPTER-5: FINDINGS & SUGGESTIONS
5.1 Findings... * ******** ***** ***
(74-75)
5.2Suggestions..
CHAPTER- 6: CONCILUSION 76
BIBLOGRAPHY
Bibliography .... ****
77
ANNEXURES (if any) (77-82)

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CHAPTER-1
INTRODUCTION

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1.1INTRODUCTION OF INSURANCE
Every risk involves the loss of one or other kind. In older time, the contribution by the person
was made at the time of loss. Today, only one business, which offers all walks of life, is
insurance business. Owing to growing complexity of life, trade and commerce, individual
and business firms and turning to insurance to manage various risks. Every individual in this
world is subject to unforeseen uncertainties which may make him and his family vulnerable.
At this place, only insurance helps him not only to survive but also recover his loss and
continue his life in a normal manner.
ComprehERSE
property
fiigt
at w.arine
roup INSURANCE Aurricane
titie jmajor-aedisai
hsosinduao iunen
eszriojnent
enterprise involves large

Insurance is an important aid to commerce and industry. Every business
machinery, raw material and
number of risks and uncertainties. It may involve risk to premises,
other things destroyed due to fire or flood.
1.2 Insurance Industry

of which 24 are in life
The insurance industry of India consists of 57 insurance companies
life insurers, Life Insurance
insurance business and 33 are non-life insurers. Among the
from that, among the non-life
Corporation (LIC) is the sole public sector company. Apart
to these, there is sole national re-insurer,
insurers there are six public sector insurers. In addition
Re). Other stakeholders in Indian
namely, General Insurance Corporation of India (GIC
surveyors and third party
Insurance market include agents (individual and corporate), brokers,
administrators servicing health insurance claims.

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Out of 33 non-life insurance companies, five private sector insurers are registered to underwrite
policies exclusively in health, personal accident and travel insurance segments. They are Star
Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max
Bupa Health Insurance Company Ltd, Relegate Health nsurance Company Ltd and Cigna TTK
Health Insurance Company Ltd. There are two more spccialized insurers belonging to public
sector, namely, Export Credit Guarantee Corporation of India for Credit Insurance and
Agriculture Insurance Company Ltd for crop insurance.
The future looks promising for the life insurance industry with several changes in regulatory
framework which will lead to further change in the way the industry conducts its business and
engages with its customers.
Early Methods:
Insurance can have various effects on society through the way that it changes who bears the cost
of losses and damage. On one hand it can increase fraud; on the other it can help societies and
individuals prepare for catastrophes and mitigate the effects of catastrophes on both households
and societies.
Insurance can influence the probability of losses through moral hazard, insurance fraud, and
preventive steps by the insurance company. Insurance scholars have typically used moral
hazard to refer to the increased loss due to unintentional carelessness and insurance fraud to refer
to increased risk due to intentional carelessness or indifference. Insurers attempt to address
carelessness through inspections, policy provisions requiring certain types of maintenance, and
possible discounts for loss mitigation efforts. While in theory insurers could encourage
had
investment in losS reduction, some commentators have argued that in practice insurers
measures particularly to prevent disaster
istorically not aggressively pursued loss control
battles. However,
losses such as hurricanes -because of concerns over rate reductions and legal
in loss mitigation, such as
since about 1996 insurers have begun to take a more active role
through building codes.
1.3 Methods Of Insurance:-
Co-1nsurance -
risks shared between insurers
coverage ofa risk (both
Dual insurance having two or more policies with overlapping
a concept named contribution,
the individual policies would not pay separately under
-
policyholder's losses. However, in case of

they would contribute together to make up the
payment is allowed).
contingency insurances such as life insurance, dual
and
Self-insurance situations where risk is not transterred to insurance companies
themselves.
solely retained by the entities or individuals
part of or all risks to another
Reinsurance situations when the insurer passes some
Insurer, called the reinsurer.
1.4 Insurance Of Principles:

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involves pooling funds from many insured cntities (known as exposures) to pay for the
Insurance risk for a fee, with
losses that some may incur. The
insured entities are therefore protected from
In order to be
upon the frequency and severity of the event occurring.
the fee being dependent
against must meet certain characteristics. Insurance
as
an insurable risk, the risk insured
financial services
a commercial enterprise and a major part of the
a financial intermediary is
self-insure through saving money for possible future
industry, but individual entities can also
losses.
Insurability
common characteristics
Risk which can be insured by private companies typically shares seven
(a) Large number of similar exposure units:
majority of insurance
Since insurance operates through pooling resources, the allowing insurers to
policies are provided for individual members of large classes, are similar to the
benefit from the law of large numbers in which predicted losses
which is famous for ensuring
actual losses. Exceptions include Lloyd's of London,
life or health of actors, sports figures, and other famous individuals. However, all
the to different premium
exposures will have particular differences, which may lead
rates.
(b) Definite loss:
place, and from a known cause. The classic
The loss takes place at a known time, in a known
policy. Fire, automobile accidents,
example is death of an insured person on a life insurance
criterion. Other types of losses may only be
and worker injuries may all easily meet this
may involve prolonged exposure to
definite in theory. Occupational disease, for instance,
place, or cause is identifiable. Ideally, the time,
injurious conditions where no specific time,
a reasonable person, with sufficient
place, and cause of a loss should be clear enough that
information, could objectively verify all three elements.
(c) Accidental loss:
a claim should be fortuitous, or at least outside the
The event that constitutes the trigger of
beneficiary of the insurance. The loss should be pure, in the sense that it
control of the contain
is only the opportunity for cost. Events that
results from an event for which there
such as ordinary business risks or even
purchasing a lottery ticket are
speculative elements
generally not considered insurable.
(d) Large loss:
Insurance
size of the loss must be meaningful from the perspective of the insured.
The cost of losses, plus the cost of issuing and
premiums need to cover both the expected
supplying the capital needed to reasonably
administering the policy, adjusting losses, and
able to pay claims. For small losses, these latter costs
assure that the insurer will be
There is hardly
may be several times the size of the expected cost of losses.
value to a
anypoint in paying such costs unless the protection offered has real
buyer.

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Legal:
When a company insures an individual entity, there are basic legal requirements and regulations.
Several commonly cited legal principles of insurance include:
(a) Indemnity:
The insurance company indemnifies, or compensates, the insured in the case of certain losses
only up to the insured's interest.
(b) Insurable Interest:
The insured typically must directly suffer from the loss. Insurable interest must exist whether
property insurance or insurance on a person is involved. The concept requires that the insured
have a "stake" in the loss or damage to the life or property insured. What that "stake" is will be
determined by the kind of insurance involved and the nature of the property ownership or
relationship between the persons. The requirement of an insurable interest is what distinguishes
insurance from gambling.
(c) Utmost Good Faith:
The insured and the insurer are bound by a good faith bond of honesty and fairness. Material
facts must be disclosed.
Indemnification:
To "indemnify" means to make whole again, or to be reinstated to the position that one was in, to
the extent possible, prior to the happening of a specified event or peril. Accordingly, life
insurance is generally not considered to be indemnity insurance, but rather "contingent"
insurance (i.e., a claim arises on the occurrence of a specified event). There are generally three
types of insurance contracts that seek to indemnify an insured:
1. A "reimbursement" policy
2. A "pay on behalf" or "on behalf of policy
3. An "indemnification" policy
4. From an insured's standpoint, the result is usually the same: the insurer pays the loss and
claims expenses.
5. If the Insured has a "reimbursement" policy, the insured can be required to pay for a loss
and then be "reimbursed" by the insurance carrier for the loss and out of pocket costs
including, with the permission of the insurer, claim expenses
6. Under a "pay on behalf" policy, the insurance carrier would defend and pay a claim on
behalfof the insured who would not be out of pocket for anything. Most modern liability
insurance is written on the basis of "pay on behalf" language which enables the insurance
carrier to manage and control the claim.

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7. Under an "indemnification" policy, the insurance carrier can generally either "reimburse"
or "pay on behalf of", whichever is more beneficial to it and the insured in the claim
handling process.
8. If the Insured has a "reimbursement" policy, the insured can be required to pay for a loss
and then be "reimbursed" by the insurance carricr for the loss and out of pocket costs
including, with the permission of the insurer, claim expenses
Exclusions:
Policies typically include a number of exclusions, including typically:
Nuclear exclusion clause, excluding damage caused by nuclear and radiation accidents
War exclusion clause, excluding damage from acts of war or terrorism.
1.5 Insurance Companies

Insurance companies may sell any combination of insurance types, but are often classified into
three groups:
Life insurance companies, which sell life insurance, annuities and pensions products and
bear similarities to asset management businesses
Non-life or property/casualty insurance companies, which sell other types of insurance.
Health insurance companies, which sometimes sell life insurance or employee benefits as
well.
General insurance companies can be further divided into these sub categories.
Standard lines
Excess lines
and
In most countries, life and non-life insurers are subject to different regulatory regimes
the two types of
different tax and accounting rules. The main reason for the distinction between
for life
company is that life, annuity, and pension business is very long-term in nature coverage
-
insurance cover
assurance or a pension can cover risks over many decades. By contrast, non-life
usually covers a shorter period, such as one year.
or proprietary companies. Mutual

Insurance companies are generally classified as either mutual
shareholderS (who may or may not own
companies are owned by the policyholders, while
policies) own proprietary insurance companies.
as well as the formation of a hybrid
Demutualization of mutual insurers to form stock companies,
common in some countries, such as the United
known as a mutual holding company, became states permit mutual holding companies.
States, in the late 20th century. However, not all
Reinsurance companies

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that sell policies to other insurance companies,

Reinsurance companies are insurance companies large losses. The
and protect themsclves from very
allowing them to reduce their risks A reinsurer
market is dominated by a few very large companics, with huge reserves.
reinsurance
insurance risks as well.
may also be a direct writer of
Captive insurance compaies companies

may be defined as limited-purpose insurance
Captive insurance companies financing risks emanating from their parent
group or
established with the specific objective of the parent
definition can sometimes be extended to include some of the risks of the
groups. This self-insurance vehicle. Captives may take
it is an in-house
company's customers. In short, the self-insured parent company); of
a
(which is a 100% subsidiary of
form of a "pure" entity risks of members of an industry);
and of an
insures the collective
"mutual" captive (which a professional,
(which self-insures individual risks of the members of
"association" captive
Captives represent commercial, economic and tax
commercial or industrial association). reductions in costs they help create and for the ease
the
advantages to their sponsors because offlexibility for cash flows they generate. Additionally, they
and the insurance
of insurance risk management which is neither available nor offered in the traditional
may provide coverage of risks
market at reasonable prices. public
underwrite for their parents include property damage,
The types of risk that a
captive can liability, motor and
indemnity, employee benefits, employers'
and product liability,
professional by the use of
exposure to such risks may be limited
captive's
medical aid expenses. The
reinsurance. management and risk
important component of the risk
increasingly background:
Captives are becoming an can be understood against the following
parent. This
financing strategy of their
in almost every line
of coverage
premium costs
Heavy and increasing types of fortuitous risk
Difficulties in insuring certain the world
coverage standards in various parts of experience
Differential
market trends rather than individual loss
reflect
.Rating structures which deductibles or loss control
efforts
Insufficient credit for
Development Authority
1.6 Insurance Regulatory And Authority of India (IRDAI)
is an
and Development and re-

Regulatory promoting the insurance
The Insurance and
tasked with regulating Insurance Regulatory and Development
autonomous, statutory body the agency's
in India. It was constituted by Government of India. The
insurance industries by the
Parliament passed in 2001.
Authority Act, 1999, an Act ofTelangana, where it moved from Delhi
Hyderabad,
headquarters are in
Structure & Functions:

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Section 4 of the IRDAI Act 1999 specifies the authority's composition. It is a

ten-member body
consisting of a chairman, five full-time and four part-time members appointed by
the government
of India. At present ( Sept, 2018 ), the authority is chaired by Dr. Subhash C. Khuntia and its
1
full-time members are Mrs T.L.Alamelu, K.Ganesh, Pournima Gupte, Praveen Kutumbe
and
Sujay Banarji.
The functions of the IRDAI are defined in Section 14 of the IRDAI Act,
1999, and include:
Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations

Protecting policyholder interests
Specifying qualifications, the code of conduct and training for intermediaries and agents
Specifying the code of conduct for surveyors and loss assessors
Promoting efficiency in the conduct of insurance businesses
Promoting and regulating professional organizations connected with the insurance and re-
insurance industry
Levying fees and other charges
Inspecting and investigating insurers, intermedjaries and other relevant organization's
Regulating rates, advantages, terms and conditions which may be offered by insurers not
covered by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4
of 1938)
Specifying how books should be kept
Regulating company investment of funds
Regulating a margin of solvency
Adjudicating disputes between insurers and intermediaries or insurance intermediaries
Supervising the Tariff Advisory Committee
Specifying the percentage of premium income to finance schemes for promoting and
regulating professional organizations
Specifying the percentage of life- and general-insurance business undertaken the rural
in or
social sector
shall be maintained, and
Specifying the form and the manner in which books of accounts
intermediaries.
statement of accounts shall be rendered by insurers and other insurer
7 Why 'Sabse Pehle Life Insurance

The Life
Pehle Life Insurance' is India's first Life Insurance awareness campaign.
Sabse
companies, through this campaign aims to
Insurance Council along with 24 Life Insurance
owning a Life Insurance policy.
educate the Indian audience about the importance of
we always taught to stress on the most essential things first, and then
As adults, have been Building up from the same cultural nuance, 'Sabse
Pehle Life
prioritise the rest accordingly.

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Insurance should be the first step to building a robust

Insurance' explains to us how buying Life
seen as a fundamental requirement in our lives.
financial plan, and therefore should be
Why do I need Life Insurance?

somethingg
A Life Insurance policy ensures that your family is financially secured in the event of
unfortunate happening to you. A policyholder gets into a
contract with the insurance company
policyholder's family on the
wherein the company agrees to pay a large sum of money the
to
to the insurance company

event of the life insured passing away. The policyholder pays premium
in exchange.
Sabse Pehle
LifeLife Insurance
Fighting Chance Against

Uncertointies
Short&Long term Goais
WIN Be Happy
A Dream of Living Debt

free

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Buying Life Insurance has the following benefits:
It offers financial security to your loved ones and protects them from
financial burden
Takes care of life goals such as child's higher education, marriage, etc.
It helps save on tax, as premiums paid towards a Life Insurance policy is eligible for tax
deduction under Section 80C up to a limit of Rs.I.5 lakh
What led to the 'Sabse Pehle Life Insurance' campaign?

Simply put, a lot of people buy Life Insurance to save on taxes little knowing Life Insurance is
capable of securing the lives and dreams of their loved ones. Even though there is a considerable
amount of people with Life Insurance policies, understanding the real purpose of needing a Life
Insurance policy is low.
It's important for everyone to know that Life Insurance is in fact the only financial instrument
that provides protection to families in unfortunate eventualities.
The 'Sabse Pehle Life Insurance' campaign is thus a simple initiative to stress on the importance
of buying a Life Insurance policy.
1.8 ROLE OF LIFE INSURANCE IN THE GROWTH OF THE
ECONOMY
It has a
The Life Insurance Industry has an enviable track record among public sector units.
growth in its financial
Consistent profit and dividend paying record acompanied by steady
a
oriented sectors the
resources. Through investments in the Government sector and socially-
The industry is recognized as
Industry has contributed immensely to the nation's development.
country. The ventures initiated by the industry in
one of the largest financial Institutions in the
the areas of Mutual Fund,
recent years. To protect the country's foreign
Housing Finance has done exceedingly well in
arrangement are so organized that maximum retention is
exchange reserves, the reinsurance
the country while at the same time protecting interests of the policy
made possible within
holders.
CURRENT SCENERIO

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insurance happens to be a
largest number of life insurance policies in force in the world,
With 15-20 per cent annually and
opportunity in India. It's a business growing at the rate of
mega
with banking services, it adds about per
7
Rs.450 billion. Together
presently is of the order of cent of GDP and funds
Gross premium collection is nearly per
2
cent to the country's GDP.
cent of GDP.
available with LIC for investment are per
8
cover while health insurance

nearly 80 percent of Indian population is without life insurance the
Yet, international standards. And this part of
insurance continues to be below
and non-life old age
and pension systems with hardly any
population is also subject to weak social security sector is immense.
that growth potential for the insurance
income security. This it is an indicator as it provides
evolved insurance sector is needed for economic development
A well-develop and risk taking
funds for infrastructure development and at the same time strengthens the
long term the order of
It is estimated that over the next ten years India would require investments of
ability.
to some extent, can enable investment
in
dollar. The insurance sector,
one trillion US is a federal
development to sustain economic growth of the country. Insurance
infrastructure Act-1938 and
India. There are two legislation that govern the sector - The Insurance
subject in
The IRDA Act-1999.
a tax-saving device instead of its
other implied long
In India, insurance is generally considered as
gold followed by
financial benefits. Indian people are prone to investing in properties and
term is very small. Even to
selectively invest in shares also but the percentage
bank deposits. They With the entry of
Life Insurance Corporation of India dominates India insurance sector.
this day, become more
players backed by foreign expertise, Indian insurance market has
private sector particularly
is becoming increasingly vulnerable due to wide variety of risk
vibrant. Business hearts of New York city
September 11, 2001 disaster in which twin tower located in the
after as well as financial loss to
crashed by terrorist attack resulting in loss of 6000 human lives the
were attack has created new horizon of risk to
impact of this terrorist
the extent of $45 billion. The
business world today.
the global economy, development of technology and e-business
However, rapid changes in risks that
Increased dependency on technology has originated new
already gathered momentum. information
well-published incidents. Computer hackers obtaining credit card
have resulted in
love bug virus, cyber extortion, web content liability, professional
from visa and Power-Gen, the kidnapping
computers and other crimes and activities such as terrorism,
errors and omissions, money, commercial liability etc have
significant
and extortion of
and company's executive loss, commercial
embarrassment or regulatory
in extreme financial
impact on business resulting
implications.
increasingly
managers, under the circumstances, have to demand
Corporation insurance/risk more attentive and knowledgeable about
emerging
They have to be
complex insurance products. and efficiently, and how they could
ultimately
managed effectively
risks, how those risks are therefore its position in the market
place. In short, how
financial situation and
affect a company's a competitive advantage.
Suchrisks are managed and can give to an insured

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In the changing times, adoption of e-commerce into business models, the integration of web-
based communication and data transfer capabilities into the business operations, and leveraging
of advanced network and technology architecture for maximum benefit are the new horizon of
the risks. For the corporate insurance/risks managers, these new exposure-cyber-riskS-can lead to
cyber losses, widening the interpretation of what constitute insure property damage, particularly
as it relates to information technology and data.
All the while, organizations are tremendous pressure to reduce expenses and increase profit
margin, and cannot afford to suffer a property loss of business interruption due to any cause
(risk). How a company identifies, quantifies, qualifies and manages these new risks exposure, in
addition to the well-known tradition risks, is becoming an important factor in creating
shareholders value. This often means changing the way. Everyone in the organization have to
think about risk.
Insurance managers are seeing price levels (premium) continue to rise-albeit modestly-in today's
primarily commerCial property and reinsurance markets. They are demanding that insurers
improve their risk assessment and quantification offerings so that an insured may avail the
benefit in cost (premium rate) on account of well-managed risk.
The good news for insurance managers is that as the economy evolves, insurers are increasingly
matching that evaluation with new products, services and capabilities due to opening up the
insurance market to the private players.
Insurers who are truly listening to their customers and striving to be more in tune with their
needs are responding to the fast changing corporate insurance and risk management landscape.
to address the new
They are listening to their customers. They are making fresh approaches
challenges faced by insured organization by designing the new products as per the needs. Insurers
by the business.
are providing value added services to insured to protect the value created
individuals and groups.
RLIC offers wide range of innovative life insurance products, targeted at
namely protection, child,
It offers need based products that caters to four distinct segments
retirement and investment plans. RLIC is committed to emerge as a transnational Life Insurer of
global scale and standard.
1.9 Types Of Life Insurance In India

Life insurance products come in a variety of offerings catering to the investment needs and
life
objectives of different kinds of investors. Following is the list of broad categories of
insurance products:
Term insurance policiess

immediate needs of nominees or
The basic premise of a term insurance policy is to secure thedemise of the policy holder. The
beneficiaries in the event of the sudden or unfortunate
term except for the tax
policyholder does not get any monetary benefit at the end of the policy

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benefits he or she can choose to avail of throughout the tenure of the policy. In the event of the
death of the policyholder, the sum assured is paid to his or her beneficiaries. Term insurance
policies are also relatively cheaper to acquire as compared to other insurance products.
Money-back policies
Money back policies are basically an extension of endowment plans wherein the policyholder
receives a fixed amount at specific intervals throughout the duration of the policy. In the event of
the death of the policyholder, the full sum assured is paid to the beneficiaries. The terms again
might slightly vary from one insurance company to another.
Whole life policies

A whole life insurance plan covers the insured over his life. The primary feature of this product
is that the validity of the policy is not defined so the policyholder enjoys the life cover
throughout his life.
. Unit-linked investment policies (ULIP)

Unit-linked insurance policies again belong to the insurance-cum-investment category where one
gets to enjoy the benefits of both insurance and investment. While a part of the monthly premium
pay-out goes towards the insurance cover, the remaining money is invested in various types of
funds that invest in debt and equity instruments. ULIP plans are more or less similar in
comparison to mutual funds except for the difference that ULIPs offer the additional benefit of
insurance.
Pension policies
retirement. This
Pension policies let individuals determine a fixed stream of income post
or the monthly pay-
basically is a retirement planning investment scheme where the sum assured
the investment timeframe, and the
out after retirement entirely depends on the capital invested,types
ageat which one wishes to retire. There are again several of pension plans that cater to
as an insurance product and is regulated by
different investment needs. Now it is recognized
IRDA.
18, 201l6, the government allowed
Seeking more investment in the insurance sector, on March
up to 49%, up from 26%, without the prior approval.
FDIin domestic insurance companies automatic route. For FDI up to 49% approval of Foreign
Earlier 26% FDI was approved through
verification of insurance regularity
Investment Promotion Board is required subject to the
in India out of which 24 are life insurance
authority of India. There are 57 insurance companies
Companies and 33 are general insurance companies.
companies
1.10 Initial public offer (IPo) rules for Indian life insurance

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A key picce of legislation impacting on the Life Insurance industries capital raising abilities is
the lock-in period of 10 years for investment to be limited to promoter group equity investments.
Under the Insurance Guidelines, Indian Life Insurance companies can opt for a public issue of
equity through an Initial Public Offer (1PO) after 10 years of operations.
In October 2010, the securitics market regulator, Securitics and Exchange Board of India (SEB),
issued disclosure norms for Indian Life Insurance Companies secking to make an initial public
offer for sale of equity shares to the public.
1.11 Insurer's Business Model

The business model is to collect more in premium and investment income than is paid out in
losses, and to also offer a competitive price which consumers will accept. Profit can be reduced
to a simple equation:
Profit earned premium + investment income -
incurred loss -
underwriting expenses.
Insurers make money in two ways:
Through underwriting, the process by which insurers select the risks to insure and decide
how much in premiums to charge for accepting those risks
. By investing the premiums they collect from insured parties
The most complicated aspect of the insurance business is the actuarial science of ratemaking
(price-setting) of policies, which uses statistics and probability to approximate the rate of
future claims based on a given risk. After producing rates, the insurer will use discretion to
reject or accept risks through the underwriting process.
At the most basic level, initial ratemaking involves looking at the frequency and
severity of
perils. Thereafter an
insured perils and the expected average payout resulting from these
insurance company will collect historical loss data, bring the loss data to present value, and
to assess rate adequacy,3 Loss
compare these prior losses to the premium collected in order
characteristics involves at the
ratios and expense loads are also used. Rating for different risk
policy with twice as many
most basic level comparing the losses with "loss relativities"-a
multivariate analyses are
losses would therefore be charged twice as much. More complex
a univariate analysis could
sometimes used when multiple characteristies are involved and
may be used in assessing the
produce confounded results. Other statistical methods
probability of future losses.
premium collected minus the amount paid
Upon termination of a given policy, the amount of Underwriting performance is
out in claims is the insurer's underwriting profit on that policy.
is the ratio of expenses/losses to
measured by something called the "combined ratio", which
an underwriting profit, while
premiums.41 A combined ratio of less than 100% indicates
A company with a combined ratio over
anything over 100 indicates an underwriting loss.
to investment earnings.
100% may nevertheless remain profitable due
on "float". Float, or available reserve, is the
Insurance companies earn investment protits an insurer has collected in insurance
amount of money on hand at any given moment that
start investing insurance premiums as soon
premiums but has not paid out in claims. Insurers
or other income on them until claims are
as they are collected and continue to earn interest 400 insurance companies and 94% of
paid out. The Association of British Insurers (gathering

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UK insurance services) has almost 20% of the investments in the London Stock
Exchange. In 2007, U.S. industry profits from float totalled $58 billion. In a 2009 letter to
investors, Warren Buffett wrote, "we were paid $2.8 billion to hold our float in 2008."
In the United States, the underwriting loss of property and casualty insurance companies was
S142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4
billion, as the result of float. Some insurance industry insiders, most notably Hank
Greenberg, do not believe that it is forever possible to sustain a profit trom tloat without an
underwriting profit as well, but this opinion is not universally held. Rcliance on float for
profit has led some industry experts to call insurance companies "investment companies that
raise the money for their investments by selling insurance."
Naturally, the float method is difficult to carry out in an economically depressed period. Bear
markets do cause insurers to shift away from investments and to toughen up their
underwriting standards, so a poor economy generally means high insurance premiums. This
tendency to swing between profitable and unprofitable periods over time is commonly
known as the underwriting, or insurance, cycle.
Claims
Claims and loss handling is the materialized utility of insurance; it is the actual "product"
paid for. Claims may be filed by insureds directly with the insurer or through brokers or
agents. The insurer may require that the claim be filed on its own proprietary forms, or may
accept claims on a standard industry form, such as those produced by ACORD.
Insurance company claims departments employ a large number of claims adjusters supported
by a staff of records management and data entry clerks. Incoming claims are
classified based
their
on severity and are assigned to adjusters whose settlement authority varies with
knowledge and experience. The adjuster undertakes an investigation of each claim, usually
in
the terms of the
close cooperation with the insured, determines if coverage is available under
authorizes
insurance contract, and if so, the reasonable monetary value of the claim, and
payment.
the settlement with the
The policyholder may hire their own public adjuster to negotiate
where claims may be
insurance company on their behalf. For policies that are complicated,
called loss recovery
complex, the insured may take out a separate insurance policy add-on,
insurance, which covers the cost of a public adjuster in the case ofa
claim.
because there is a third party
Adjusting liability insurance claims is particularly difficult
to cooperate with the insurer
involved, the plaintiff, who is under no contractual obligation
may fact regard the insurer as a deep pocket. The adjuster must obtain legal counsel
and in
counsel or outside "panel" counsel), monitor litigation
forthe insured (either inside "house" appear in person or over the telephone with settlement
thatmay take years to complete, andconference when requested by the judge.
authority at amandatory settlement
condition of average may come into play to
If a claims adjuster suspects under-insurance, the
limitthe insurance company's exposure.
function, insurers seek to balance the elements of customer
Inmanaging the claims handling
handling expenses, and claims overpayment leakages. As part of
satisfaction, administrative must be
balancing act, fraudulent insurance practices are a major business risk that
this

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managed and overcome. Disputes between insurers and insureds over the validity of claims
or claims handling practices occasionally escalate into litigation (sce insurance bad faith).
Marketing
Insurers will often use insurance agents to initially market or underwrite their customers.
Agents can be captive, meaning they write only for one company, or independent, meaning
that they can issue policies from several companies. The existence and success of companies
using insurance agents is likely duc to improved and personalized service. Companics also
use Broking firms, Banks and other corporate entities (like Self Help Groups, Microfinance
Institutions, NGOs, etc.) to market their products.
The policyholder may hire their own public adjuster to negotiate the settlement with the
insurance company on their behalf. For policies that are complicated, where claims may bi
complex, the insured may take out a separate insurance policy add-on, called loss recovery
insurance, which covers the cost of a public adjuster in the case of a claim.
Adjusting liability insurance claims is particularly difficult because there is a third party
involved, the plaintiff, who is under no contractual obligation to cooperate with the insurer
and may in fact regard the insurer as a deep pocket. The adjuster must obtain legal counsel
for the insured (either inside "house" counsel or outside "panel" counsel), monitor litigation
that may take years to complete, and appear in person or over the telephone with settlement
authority at a mandatory settlement conference when requested by the judge.

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DOCUMENT POLICY ISSUACE ANDD

MANAGEMENT ADMINISTRATION
INSURANCE BILLING
cOMPLIANCE & STATUTORY ACCOUNTING
REPORTING
INSURANCE
PORTAL
CLAIMS
REGULATORY MANAGEMENT
INSURANCE
BROKERAGE
are:
1.12 There are certain competitors of LIC Reliance Insurance, following
&
Other competitors:-
Bajaj Allianz Life Insurance
BAJAJ |Allianz
Jiyo Beikar
Bajaj Allianz Life Insurance began operations on 12
March 2001 and today has a pan-India presence of 759 branches. It is headquartered in Pune,
India. Bajaj Allianz Life Insurance received the Insurance Regulatory and Development

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on 3 August 2001 to conduct Life Insurance

Authority (IRDA) certificate of Registration
business in India.
Max Life Insurance
MAX
LIFE
INSURANCE
Your Partner for Life
Max Life Insurance is a part of the Max India Ltd. Group. It is a joint venture
between Max
owns 68% of the
Financial Services and Mitsui Sumitomo Insurance Company. The former
with Mitsui
company while the latter owns 26%. After forming the joint venture partnership
In February 2016,
Sumitomo, Max Life changed its name from Max New York Life in 2012.
Axis Bank held a 6% share in Max Life.
TATA AIG
|TATA
AIG
LIF E
Company Limited (Tata AIG General)
Aanew look at life Tata AIG General Insurance
isTata AIG General merges
businesscollaboration of the Tata Group and American International Group, Inc. (AIG).
two major finance organizations: the Tata Group's prominent
headship place in India and AIG's global presence as the world's leading international
insurance and financial services organization. This joint venture has started its operations in

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Inc.,an international financial services

organizations from Canada. BSLI has a customer base
of over two and half million policy holders.
IDBI Federal LifeInsurance

OIDBI FEDERAL
1DBI Federal Life Insurance Co Ltd
Litesurance
IDBI Federal Litesurance Savings Insurance Plan
IDBI Federal Life Insurance Co Ltd. is a three way joint-
venture of IDBI Bank, an Indian development and commercial bank; Federal Bank, one of
India's leading[peacock term] private sector banks and Ageas, a multinational
insurance giant
based out of Europe. In the year 2006, IDBI Bank, Federal Bank and Belgian-Dutch
insurance
major Fortis Insurance International NV signed a MoU to start a life insurance company in India.
The company received its license from Insurance Regulatory and Development Authority of
India (IRDAI) G.Arul jegadeesh one of the trainee in the IDBI federal life insurance company
in Madurai) in December 2007.
DBI Fortis Life Insurance Co. Ltd. officially began its operations in March 2008. In August
2008, the company collected the premium of over Rs.100 crore within a record time of five
months, thus becoming the fastest growing new life insurance company in the private sector.
India-Sri Lanka ODI series that took place in October 2009, found a title sponsor in
insurance major IDBI Fortis. The company's AUM crossed the Rs.1000 crore mark for
the first time in March 2010.
In August 2010, the company was rechristened as IDBI Federal Life Insurance
Company. In 2012-13, it declared its maiden profits in record 5 years, thus was one of
the fastest to do so in the industry. It yet again clocked Rs.80 crore profits for the
financial year 2013-14 and has maintained its profitable trajectory from thereon.
DBI Bank, an Indian development and commercial bank; Federal Bank, one of India's
leading[peacock term] private sector banks and Ageas, a multinational insurance giant based out
of Europe. In the year 2006, IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis
Insurance International NV signed a MoU to start a life insurance company in India.
Star Health & Allied Insurance:

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STAR ersonal & Carin8

Health
Insurance
The Health Insurance Specialist
Star Health and Allied Insurance Co Ltd commenced its

operations in 2006 with the
business interests in Health Insurance, Overseas
Med claim Policy (Travel Insurance) and
Personal Accident Insurance. Star Health is India's
first stand-alone Health Insurance
Company. Star Health Insurance has products to cater everybody, be it individuals,
families
or corporates. The Company works directly as well as through various channels like agents,
brokers, online etc., Star Health is also prominently into Banc assurance having long standing
relationship with various Banks. Star Health has underwritten a gross written premium of
Rs.5401 Cr during the FY 2018-19 and has built up a promising path with an appreciable net
Worth of Rs.1480 Cr, as on 3lst March 2019. Currently Star Health has l0600+ employees
and 500+ branch offices all over India.
HDFC Lifeinsurance:
|
HDFC
Life
Sar utha kejuro!
Company Ltd.) is a long-term life insurance provider with its
HDFC Life (HDFC Life Insurance
individual and group insurance.
headquarters in Mumbai, offering (HDFC), one of
Housing Development Finance Corporation Ltd
between leading well known
ltis ajoint venture institution and Standard Life Aberdeen PLC,
India'sleading housing finance investments services in the United Kingdom. On 14 August 2015
provider of financial savings & agreement with Standard Life to sell a 9.00% stake
in
share sale approvals. Post the
DFC Ltd. entered into aThe transaction is subject to receipt of regulatory Standard
iDFCLifeto the abovelatter,
HDFC will hold 61.65% stake in HDFC Life and
transaction,
Completion of the with rest to be held by
others.
35.00%,
Llte's stake will increase to
SBI Life Insurance

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SBI Life
INS URA NCE
With US, You're Sure
SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI),
the largest state-owned banking and financial services company in India, and BNP
Paribas Cardift. BNP Paribas is a French multinational bank and financial services company with
global headquarters in Paris. SBI owns 62.1% of the total capital and BNP Paribas Cardiff 22%
of the capital. Other investors are Value Line Pt. Ltd. and Mac Ritchie Investments Pt. Ltd.,
holding 1.95% of the total capital each and remaining 12% with Public. SBI Life Insurance has
an authorized capital of R20 billion (USS280 million) and a paid up capital of R10
billion (USS140 million).
In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave company a
AAA/Stable/P1+ rating.
Kotak Life Insurance:
kotak
Life Insurance
Limited is a private Life Insurance company

Kotak Mahindra Life Insurance Company
It caters to 15 million customers with 232 branches
in India. The company was founded in 2001.
ln around 167 cities and towns
in India with 99,275 agents.
various protection plans, savings and
investment plans,
Under the umbrella, the company offers
Mahindra Group was founded in 1985 as a provider
child plans and retirement plans. The Kotak Group's
In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the
of financial services.
company, banking license from the Reserve Bank of India (RBI) to conduct
Tlagship received the parent
the country and was renamed as Kotak Mahindra Bank Ltd,
Danking operations in
Company of Kotak Life Insurance.
Shriram lifeinsurance:

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SHRIRAM
Life Insurance
Shri ram Group is an Indian conglomerate founded on 5 April 1974 by Ramamurthy Thyagarajan,
AVS Raja and T. Jaya Ranman. They have their headquarters in Chennai, Tamil Nadu, and India. The
group had its beginning in chit funds business and later on entered the lending business through Shri ram
Transport Finance (Commercial Vehicle Finance) and Shri ram City Union Finance (Consumer and
MSME Finance). In 2018, the company forayed into metallurgy by setting up a unit in Odisha.
1.13 KEY HIGHLIGHTS OF RELIANCE INSURANCE
Documentation needed to apply for a Reliance Life Insurance
1. Identity Proof
2. Age Proof
3. Income Proof
4. Address Proof
5. PAN Number
Insurance
1.14 Benefits of Reliance Life to the
covers a variety of life insurance plans that caters
With a comprehensive
portfolio that Insurance Company makes it relatively
customer base, Reliance Life
financial needs of a diverse Equity's Most
your requirements. According to Brand
perfectly mets
casy to find the policy that ranked among the Top Three
Reliance Life Insurance Company
Trusted Brand Survey 2015, Whether it is child plans, retirement solutions,
Service Brands. Nippon has made all kinds of
plans
Most Trusted Life Insurance plans, Reliance
plans, or protection
Savingsand investment individual entities as well as groups.
and policies available to

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1.15 Diferent Types of Life Insurance Policies Offered by Reliance:

Reliance Life Insurance Company has emerged as one of the leading insurance providers in the
country fora reason, which, apart from its provision of quality products and services, is its knack
of designing a comprehensive set of insurance policies to ensure that the varying needs of a
life
diverse customer base are met with relative ease. Following are the different kinds of
insurance policies sold by Reliance Nippon Life Insurance Company. Reliance Life Protection
Plans.
Reliance Life protection plans are diverse to meet the needs and requirements of vast
a customer
base. Since the world is full of uncertainties and it is essential to ensure that
our near and decar
ones are financially secure at all stages of their lives, protection plans gain prime
importance as
are taken care of in
they offer your family a lump sum amount to ensure that their financial needs
case of your untimely demise. Following are the protection plans offered
by Reliance Life
Insurance Company.
1.16 How to Claim Insurance with Reliance:

Reliance Life Insurance Company has the highest claim settlement ratio
among all private life
in only 12 days, and agree to pay
insurers in India. The company guarantees to settle your claims
to claim insurance with Reliance
6.5% interest per annum for any delay on their part. In order
Nippon, you will have to keep the following documents ready.
Documents required for Death claim:

filled by the nominee or claimant
Claim form A: This form need to beillness to be filled, signed and stamped by the doctor in
form B - Certificate of last
Claim the deceased life assured Original policy documents.
attendance during the last illness of
Birth Registrar Death certificate by the doctor.
Original death certificate by Death and
attested by Insurance company official.
Nominees photo identification card copy
All hospital reports, if
hospitalized during the last sickness
report, if performed.
Post Mortem Report and Viscera
Comparison of Other Private company

Insurance's Market Sharein
market share in comparison of other private
If we look at the status of Reliance Life Insurance's
earned:
cOmpany in comparison of premium

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gti svivA gilteM

BEsYV DI
E.S OIA stGT
Ps.s PE.E
E.E
219rtto
Isitnebu9 1OID
Pc.E
Pa.rs sibnirlsM Asto
MO
P0.A
1OY wsM xsM

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st 182 °0.2
P8.AF
bicbnst2 010H
sNsillA isjsa P0.8
PS.er
st 9onsileA stilnu2 shia
e.e 2.8
Reliance Claim Settlement Ratio:
al Total Total Total

mium Premiu Premiu Claim Claim Claim Claim
Premiu Settlem
m in m in m in Settlemen Settlemen Settlemen
pres Crores Ratio t Ratio t Ratio t Ra
Crores Crores
18- (2017- (2015- (2016-17) (2015-16) (2014-15) (2013-1
(2018-
17) 16) 14)
26.82 4283.4 94.53% 93.82% 83.84% 81.97%

4398.12 4621.08

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1.17 Reliance LifeInsurance Customer Care:

Reliance Life Insurance is one of India's leading insurer's
offering a variety of attractive life
insurance plans. Handling a large volume of customers, the
insurer has ensured to set up a
dedicated customer care department which assists customers
with all queries, issues and
complaints they may have relating to their policy. The insurer
has set up various channels via
which customers can get in touch with the support staff at Reliance.
Customers can call on the
24x7 customer support helpline, register their details on the website
to get a call back, and also
write to the customer care department on the email address provided.
KEY HIGHLIGHTS OFLIFE INSURANCE COMPANY:

Documentation needed to apply for an LIC Life Insurance
1. Identity Proof
2. Age Proof
3. Income Proof
4. Address Proof
5. PAN Number
1.18 Why To Opt For LIC LifeInsurance Plans2

Customers and counting. In India, LIC is synonymous with life insurance with some of the most
reasonably rated premiums and sufficient coverage options, regardless of which walk of life an
individual belongs to. The brand name is not the sole LIC is said to be the largest life insurance
company in the world with 23 crore reason one should opt for LIC since it is not ideal to rely on
life insurance products from a single brand. Here is why one should opt for LIC as a life
insurance provider
Technologically superior Network: LIC has been the leader as an insurance provider for
its efforts to stay ahead of the game by being at par if not better in terms of its network
when it comes to providing advanced and efficient services with over 2000 branch offices
and 156 satellite branches. The company uses technology such as WAN, IVRS,
LAN,IVRS & even EDMS which allows people to go paperless when dealing with
insurance documentation.
Not Alone in the Game: The company does not work alone but partners with insurance
and financial tycoons including NSE, LIC Mutual Fund, NCDEX, Stock Holding

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Corporation of India, Insurance institute

of India and National insurance Academy among
many similar organizations. Hence, it is
working through convergence as well.
Going International: It has fully functional
offices in countries such as Nepal, Sri Lanka,
Saudi Arabia and Bahrain. LIC has also
been ambitious enough to plan opening offices
in Australia, Canada and USA.
Product Variety: You will soon discover from

the below given list that this company
boasts of one of the highest number of policy
types available in life insurance alone. It
has the largest portfolios when it comes to life insurance group
schemes to be one of their
highlights. They have a huge clientele
of corporates for group insurance.
Innovation in the Industry: The company's launches new products every
other quarter
and they are mostly to serve the society than to make profits although they are doing
pretty well as an insurance company, financially. They were the first to launch micro-
insurance products so that people living below the poverty line in India could afford
insurance for a certain amount of discount.
Performance in The Stock Market: When it comes to stock market positioning, LIC
stocks are one of the most stable stocks available in the BSE. Some of the most well-
performing stock lists almost always feature this company especially when it comes to
insurance providers.

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Types of Plans Available From LIC:
Plan Type Basic Sum Assured Term
LIC Single Premium Endowment Plan Rs. 50,000 25 years
LIC New Endowment Plan Rs. 1

lakh 35 years
LIC's New Jeevan Rakshak Rs. 1

lakh 20 years
LIC's Limited Premium Endowment Rs. 3 lakhs 21 years

Plan
New Jeevan Anand Rs. 1

lakh 35 years
LIC's Jeevan Labh N.A. N.A.
N.A. N.A.
LIC's Jeevan Pragati

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1.19LIC Withdrawn Plans:

1. Fortune Plus
2. LIC New Jeevan Suraksha-I
3. Jeevan Vriddhi
4. LIC Jeevan Vaibhav (Single Premium Endowment Assurance Plan)
5. Jeevan Sugam
6. Two Y ear Temporary Assurance Policy
7. LIC Mortgage Redemption
8. Flexi Plus
9. CDA Endowment Vesting At 21
10. CDA Endowment Vesting At 18
11. Profit Plus
12. Jeevan Varsha
13. Child Fortune Plus
14. The Whole Life Policy- Limited Payment
15. Health Protection Plus
16. Jeevan Arogya
17. Market Plus
1.20LIC Life Insurance Customer Care: provider for several

Corporation has been India's largest life insurance
LIC or Life insurance millions of policies over the years but also has a
not only issued
decades. The insurance giant has has been made possible only
with the help of
This achievement
record of satisfied customers. support service that the insurer offers to
its policyholders.
efficient and dedicated customer representative is easy and can be done
by calling on
customer are address
Getting in touch with an LIC in to the company at the provided email
number or by writing
the designated helpline life insurance with some of
the
synonymous with
India, LIC is regardless of which walk of life
Customers and counting. In coverage options,
reasonably rated premiums and sufficient LIC is said to be the largest life
most name is not the sole
to. The brand since it is not ideal
an individual belongs crore reason one should opt for LIC
LIC as a
in the world with 23 why one should opt for
insurance company brand. Here is
products from a single
to rely on life insurance
life insurance provide.

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1.21 S.W.o.T ANALYSIS

swOT analysis is the analysis of
the internal and external
survival of organization. factors, which have impact on the
Now let's make SWOT analysis for reliance
life insurance and life insurance
co.
Reliance Life Insurance Company.
Strengths
Reliance life insurance company
ltd.is the part of reliance capital
The brand name is enough to sell
the products easily.
Strong liquidity from FII was the major
reason for up move.
Range of products
Reliance has a long and strong history solvency,
of financial stability.
The biggest strength of the organization:
Money power which makes them ignorant about the gestation period
Brand image , business experience and innovative products
Large network branches which is helped to customer for the payment.
WEAKNESS:
Newly established company, so people seems it risky.
Lack ofstaff
Lack of advertisement, so most of the customers are not aware for the insurance.
High targets for the financial advisors and for the sales department
Try to catch middle-lower level people also.
OPPURNITIES:-
There is a vast untapped market in India. The life insurance penetration in India
is
approximately 2.5% so it has large potential.

by the company has been growing
The average insurance premium being collected
exponentially build up a target fund.
coverage both to the parent and child.
Reliance life insurance should give the insurance
THREATS:
players who have grabbed approximately 15%of the
The main threat is from the other
market share. on the life insurance premium, the people
the government has scrapped the rebate
As life insurance tor sole motive of tax benefit may turn to other
who used to invest in
investment.

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Current government policies

do not encourage
domestic saving.
1.22Life insurance company
Life Insurance Corporation
of India or LIC
insurance and Investment as it is popularly
Company. With known as a government-Owned
the largest insurance headquarters in
provider in India with Mumbai, LIC is credited
hillion USD. The total the value of an with being
life fund of LIC approximate asset to the tune of 240
continues to sell policies is estimated at143
worth millions billion USD and the company
yearly. still
1.23 SWOT analysis

of LIC:
Strengths are defined
as what each business
it an upper hand over its competitors. does best in its gamut
The following are the of operations which can give
strengths of LIC are:
India's largest Insurance
service provider: LIC
2048 fully computerized currently has pan India
branch offices, 8 zonal operations with
2,048 branches and 1381 offices, around 113 divisional
satellite offices and corporate offices,
classified under 54 customer offices. The entire country 1s
zones and 25 metro-area service
cities and towns of India. hubs based across various
Currently, LIC has 1,337,064
Agents, 89 Referral Agents, 98 individual agents, 242 Corporate
Brokers and 42 Banks for
general public. selling life insurance to the
Brand Image: LIC has a strong

branding in India. Its tagline
Mahamyaham which means welfare for Yogakshemam
all is well recognized. The Economic
Brand Equity Survey of the year 2015 voted LIC Time
as the most trusted Insurance
in India. provider
Fund Base: LIC has a huge found base of around 150 billion
USD and is also India's
biggest investor making it immensely powerful in the domain
of finance in India.
A network of Agents: LIC has around 1,337,064 individual

agents, 242 Corporate
Agents, 89 Referral Agents, 98 Brokers and 42 Banks across India who cover
each nook
and corner of the country.
Weaknesses in the SWOT analysis of LIC:

vcaknesses are used to refer to areas where the business or the brand needs improvement. Some
OIthe key weaknesses of LIC are

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Culture:
Cult LIC has Deen strongly
associated with the
ad
and slow paced work Culure. This works government and thus follows a very slack
as a weakness when compared to modern-day
insuranceplayers who are adept at strategy. pivate
Poor advertisement strateEy: In
comparison to its private counterparts
ch on advertisement and this shows in the quality LIC does not spend too
of ads that they release.
Too many restrictions: The
Company has a lot of restriction
entity
enti and there is always red tape challenges.
imposed on ti being a government
This makes decision making slow at
LIC.
Opportunities in theSWOTanalysis
of LIC:
Opportunities refer to those avenues in
can capitalize to increase the environment that surrounds the business
its returns. Some of the
on which it
opportunities include:
Cybersecurity: There are many cases of
information threats and breaches in security systems.
Thus at an age where cybersecurity
is a threat Insurance policies
huge opportunity. against this can prove to De a
Online Services: AS online services grown

people have started looking more into options like
insurance and the awareness levels are
also higher than the earlier days.
A network of Agents: LIC has around 1,337,064
individual agents, 242 Corporate
Agents, 89 Referral Agents, 98 Brokers and 42 Banks
across India who cover each nook
and corner of the country.
Cybersecurity: There are many cases of information threats and

breaches in
security systems. Thus at an age where cybersecurity is a threat
Insurance policies
againstthis can prove to bea huge opportunity.
Online Services: As online services grown people have started looking more into
options like insurance and the awareness levels are also higher than the earlier
days.
Shiltfrom protection to prevention: There is a general shift of trend from protection to

prevention which is a pointer for insurance companies who should now be focusing on risk
prevention than risk mitigation policies.
More disposable income: Insurance today is seen not as a protection but also as a form of
investment. By capitalizing on this new appr0ach insurance companies can design new products.
Threats in the SWOT analysis of LIC:

Lhreats are those factors in the environment which can be detrimental to the growth of the
uSiness. Some of the threats include:
Cor
Competition: With privatization of insurance LlC has lost its older glory and today faces stiff
ompetition from private insurance players who have brought in more glamour into the industry.

lOMoARcPSD|16803712
Chan
ande of governments: With every new government the fiscal and monctary policies change
need to be reworked accordingly. This creates a lot of hassles.
th
with the result that policies
Tochnology: Today most financial services make technology an integral; part of their business
through online banking and financial broking services online. However, LIC still has a lot to
through onl
achieve in terms of staying abreast with technology. There is a general shift of
trend from
nrotection to prevention which is a pointer for insurance companies who should now be focusing
on risk prevention than risk mitigation policies.

lOMoARcPSD|16803712
CHAPTER-2
LITERATURE REVIEW

lOMoARcPSD|16803712
LiteratureReview
Aditya Nath Jha, (2019) studied
proper analysis of various
channels in life insuranceindustry distribution
in India has been done. Before
rivatization only individual
insurance agent was allowed
Insurance. But After the IRDA sell
Act, distribution channel further
to e
expanded.
Anand Thakur, (2019)
studied critical review of present marketing
strategies in health insurance
sector has been availed and usefu
marketing ideas has been suggested.
Health insurance has vast potentia
in Indian Insurance
market. But at present, there are limited
produces
and less awarenesSs resulting in
poor
penetration.
Anshuja Tiwari, (2018) evaluated banc assurance model
of distribution
of insurance services has been discussed
with reference to lift insurance
industry. Insurance sector was opened up in
the year of 2000. Before
that only individual insurance agent was allowed to sell life
insurance
products But catering the need of industry IRDA introduced several
other distribution option like corporate agent, broker, direct selling and
bancassurance
Arvind Kumar Singh, (2018) studied the current scenario of life
insurance sector has been taken up. At present the market is moving
rapidly and aggressively. There is competition and force to more ahead.
Ine features of this expansion strategy is hunting for new business
looking up for potential and grabbing it.
Arup Mazumdar, (2018) analysed the broking system, challenges &
opportunities are discussed and new marketing concept as Relationship
IOdel approach has been argued. Indian insurance industry is growing
last after privatization and moving ahead.
Arnika Srivastava, (2017) studied the review of life insurance industry in
Lne country has taken up. Life insurance is the backbone of economy. LIC
e. Life insurance Corporation has monopoly in life insurance sector. But
anterthe IRDA Act, the sector is opened up tor private Sectors.

Didyadhar Padhi, (2017) emphasized the role and performance of
Vate insurance companies in Indian insurdnce SectOr arter opening up
Or the sector in 1999 has been examined and studied. Before liberations,
C&GIC had monopoly over the Sector. But in the period of 2001 to
U12, 23 private insurance companies in life insurance sector and 28
20
sector started the business.
Vate companies in General insurance

lOMoARcPSD|16803712
Bhagabat Barik, (2017) Ageneral study of

has been done. Life insurance is life insurance sector in India
rotective tool. not merely an investment
protective tool The protection but it 15 d
of human being
financial compensation against an
gainst calamities and
in term of
insurance. Insurance Is the death is the basic idea of lite
tastest growing industry
in the country.
B. Muthukrishnan, (2016)
accessed health insurance
een done. There is very sector in India has
less penetration of health
of the population has got some insurance. Oniy 70
what health insurance. Unfortunately
health insurance is purchased
only to save income tax. The reason
behind this is very poor
level of awareness
about health insurance
products.
.B.S. Bodla, (2016) studied ICICI
Prudential Life Insurance Company is a
leading life insurance company in
private sector. A study of this company
has been done. Quality service is
the key for growth of any insurance
company. Studied the quality of
.
service is accessed through following
parameters. 1) Reliability 2) Responsiveness
B. Charumathi, (2017) reviewed the various factors which are affecting
the profitability of life insurance companies in India have been studied
and discussed. Indian life insurance industry has been ranked 9th
largest
market among 156 countries and 5th fastest growing life insurance
industry in the world.
D.Rajasekar, (2017) The SwOT analysis i.e. strengths, weakness,
opportunities and threats for bancassurance has been studied
Bancassurance is a distribution model for insurance products. World
Dancassurance is a combination of bank insurance. Bank is a vehicle
which selling different types of financial products like loans, PPF, Money
ransfer, Share & debentures, deposits, etc.
Karunanithi, (2016) took overall review of performance and
a Keting strategies of LIC of India. Before Privatization LIC has
Onopoly over the sector. But after privatization now there 24
companies in life insurance market. has eroded
ins LIC share to
urance It
71 market and more than
oOf the market. LIC was not able to tap all the
80% c
population of India does not have any insurance cover.
OT the
Harpreet of life insurance before
Singh Bedi, (2015) analysed of business
thefinancial
ancial and economic reforms and after
their eforms. Also present
insura
scenario and competitive environment has been discussed in
ldhce LIC has been studied.
Cl, The investment strategy of

lOMoARcPSD|16803712
ita Swain, (2015) Service

psita
delivery and
insurance industry has been relationship management
critically analysed. agement in in ne
life
imnortant factor in Quality
lity of service is very
service industry. veryY
Life insurance
industry. Customers is related to service
satisfaction is key
been studied.
for success in life insurance
has
. loginder Singh Arora, (2015)
the distribution
sector has been critically channels in life insurance
examined from
Distribution channels the period of 2001 to 2011.
are means to
efficiency professionalism, reach potential customers. The
effectively of
directly result into the distribution channels will
the performance of the company.
.Kavita Mahajan, (2013) studied
quality of service in
analysed and importance insurance sector is
of delivery of quality service is
Service is the key for stressed upon.
better performance. It is easy to get new
from existing customers by delivering business
good service that to develop new
business.
Kishor Kumar Meena, The impact of foreign investment in life insurance
sector has been studied. It is observed
that private sector life insurance
companies are breading life insurance market and
creating new business
records. Easier it was LIC monopoly over this Sector.
Due to foreign
Investment, the needed capital is available. It has helped to boost life
insurance business in the country.
Naresh Ramdas Madhavi (2014) studied and narrated about the growth
potential in insurance sector in India. There is huge potential as only 7%
O tne population has life insurance cover and hardly 1% of the
population has general insurance cover. Insurance sector in India is ruled
Dy Insurance
Act 1938, LIC Act 1956, General Insurance Business Act
972 and IRDA Act 1999. Insurance plays a vital role in development of
economy.
N. P
Frasanna Kumar, (2014) took overall review of Indian insurance
drket. There are 52 insurance companies out of which 24 are in life
insurance
sector and 28 are general insurance sector. 8 ompanies
in
belo
Ong to public sector and 44 companies are private insurance
Companies.
reeti The Satisfaction
has studied The
Upadhyay, (2013) the main objective
u Upadh
the policy folders. Simultaneously It is aimed to study the trends
in Or
surance sector before privatization and after a decade of
ratization.Various products and plans offered by insurance

lOMoARcPSD|16803712
panies has
companies ha been studied
and awareness about publiC sector
public Secto
mnanies and private sector
companies has been analysed.
o Sridhar, (2013) It is emphasized
that the growth of insurance sector in
iodiawill goin hand with Public
d sector and private sector. 54 insurance
mpanies are working in India
Com out of which 25 are in life insurance
sector
sect and 28 are n non-life sector. Out of there 54 companies
companies
Com are from public sector and remaining
46 companies are from
orivate sector. Ihe penetration of insurance is improving in the country
and density of insurance.
.Sriman Srichandan, (2014) Reviewed of life insurance sector in India.
Life insurance business in India Started in 1918 with Oriental Life
Insurance Company's followed by Bombay Assurance Company in 1923
andMadras equitable life insurance company in 1929. The life insurance
sector was nationalized in the year 1956 when more than 250 insurance
companies were working at that time, with introduction of IRDA Act in
1999, the sector was again opened up for private players.
life insurance
Sonika Chaudhary, (2014) Studied present scenario of
open sources.
sector in India. The tools used for this study are from all
utilized for this study are comparative increase in
The benchmark
insurance companies, number of offices of insurance
humber of
of insurance agents, increased number of products
Companies, number
life insurance new business, growth of premium
and riders, growth of
and increase in number of settlement of death
income in life insurance
claims.
advertisement on decision making of
ouman Si, (2014) the impact of The Study also focuses on
Policyholder has been studied.
Onsumer i.e. it has taken overview of the
body and
Kole of IRDA as governing advertising efforts on the insurance
Durance companies and their
ns
sector.

lOMoARcPSD|16803712
CHAPTER-3
RESEARCH METHODOLGY

lOMoARcPSD|16803712
OBJECTIVES OF THE STUDY

3.1 Objectives for this research are:-
To carry out nation-wide, Danish non-life and life

insurance and pension fund
business.
To be attractive to customers by being a competitive
independent and pre-eminent
insurance group.
To improve our position in the Danish insurance market.
To ensure that our expense ratio is lower than the general market.
To ensure that our growth in non-life and life insurance as well as
pension fund
business is higher than that of the market.
To attract and keep profitable customers by delivering a high level of customer
service.
3.2TYPES OF RESEARCH
Onthe basis of application:- Pure or Applied.
Pure Research:-Aims to advance technology mainly concerned with generalization and
formulation of a theory. It is conducted without a particular goal in mind. It is futuristic in
nature and results in universal principles through new ideas and innovative ways of thinking.
Time dimensions for pure research is flexible timescales.
Applied Research:-Aims at finding a solution for an immediate and specific problem related
to real life. It is conducted with a certain goal in mind. It Focus on problems at hard rather
than the ones that can rise in future and the results are in solution to the problem. Time
dimensions for applied research is tight timescales.
On the basis of Purpose:- Exploratorv. Descriptiveand Causal.

Exploratory Research:-To analyse the data and to explore the possibilities of obtaining as
many relationships as possible between different variables without knowing their end
applications. It is flexible or unstructured. Researcher's skill is observing and recording all
possible information and impression.
Descriptive Research:-To describe the characteristics of objects, people, groups

organizations, environment, situations, phenomenon or progranmmes. It is planned and
Structured. It is also known as statistical rescarch.
Causal Research:-To explain the cause and effect relationship. They are conducted through
theuse of experiments. They are highly structured and sequential. Researcher's strong
AOWledge of theoretical background is required.

lOMoARcPSD|16803712
Onthebasis of easurement: -Quantitative

and Qualitative.
ntitative Research:-lt
reters
numbers. The emphasis to the one that describes,
aferences from is placed on infers and resolves
infere data. The main the collection problems
objective is to and summary
theories.
of data and drawing
develop and
employ mathematical
models,
ualitative Research:-It
Qua 1s an inquiry process
nroblem or issues in
their natural settings. that helps in-depth
understanding of
emotions, sounds Qualitative research the
and other non-numerical is based on words, feelings,
researcher's experience and techniques.
and the questions It is heavily dependent
asked for an investigation. on the
Onthe basis of research
method: -Conceptual or
Empirical.
Conceptual Research:-It
is the study related
conducted by observing to some abstract ideas
and analysing already or theory which is
methodology is breaking present information on
down a theorem or concept a given topic. The
and deeper understanding into its constituent parts to gain a
of the issue concerning the theorem. better
concepts or to reinterpret The purpose is to develop new
existing ones in some new light.
Empirical Research:-It relies
on experiences or observation alone.
up with conclusions The objective is to come
which are capable of being verified by observation
these studies are often or experiment. Hence
called experimental research. Evidences gathered
experimental and empirical through
studies are today considered to be the most powerful support
particular research. Empirical for a
research is appropriate when proof is sought that
vanables affect other variables in certain
some way.
5 Research used in this project:

The type
of research used in this project is DESCRIPTIVE STUDY.
desc
CTIbes characteristics of objects, people, groups, organizations, environment, situations,
Omenon or programmes.
COunted In short deseriptive research deals with everything that can be
and studied, which has an impact on the lives of the people it deals with.
4SOURCES OF DATA
Ther
are basically 2 sources of data:-
Primary Data
Secondary Data

lOMoARcPSD|16803712
Primary data:- It i1s that data which

is collected by a researcher
1sing methods like surveys, interviews, from first-hand sources,
research project in mind, questionnaire or experiments. It is collected with
directly from primary sources. the
o Designing of interview questionnaire

for consumers based on various
parameters. brand awareness
o Sample selection on basis of area.
o Data collection by primary survey
of consumers by questionnaire method.
o Analysis of data.
o Drawing conclusions.
Secondary data:-The term is used in

contrast with the term secondary data.
collected by someone else for some This data is
other purpose (but being utilised by the investigator
another purpose).This data is gathered for
from studies, surveys or experiments that have
run by other people or for other research. been
Eg: Books, magazines, newspaper, trade
journals
-
and public records.
Finding about the insurance industry in India.

Finding about Reliance Life Insurance and its competitors.
Understanding the various factors that need to be found out to assess the brand
awareness in the market.
The secondary sources will help in the historical framework of insurance companies of post
independent India as well as the pre-privatization and post-privatization
insurance
environment in India. This secondary study will help in serving the theoretical groundwork
tor the study. Data collected from reliance life insurance and other insurance companies.
www.insurance.lic.in
Today, after 33 years of privatization of the mutual fund industry, UTI has been pushed to the
ith slot in terms of assets under management.
www.livemint.com
Digitization, including use of artificial intelligence and internet of things with an aim to
enhance customer experience at all touch points, innovations that address the savings and
Teturn mind-set of Indians and offer wellness based incentives, and government's
Commitment towards Universal Health Coverage have marked 2017 in Indian health
insurance sector.
Sources of data used in this project::

He
Cre, under this project PRIMARY SOURCE OF DATA is used & method selected under
pri
ary source of data is Questionnaire where pre-determined set of questions are made in
uential format which is designed to suit the respondent 's understanding and language
Command.

lOMoARcPSD|16803712
CONDARY SOURCE
SEC OF DATA was
customer perception regarding insurance. also used to gather
the information about
3.6 POPULATION
Population is a collection of
items of interest in research.
that you wish to generalize your research to. The population represent a groupP
The symbol
'u' represents the population mean.
Under this study, population includes
each and every customer
and also employee because they who is having bank accounts
have a salary account.
3:7SAMPLE
It is a group of people, objects, or

items that are taken from a larger
measurement. It should be population for
representative of the population
the findings from the research to ensure that we can generalize
sample to the population as a whole.
thesample. The symbol xrepresents
3.8 SAMPLE SIZE
The sample size constitutes the number

of total elements to be drawn. The (n) number of
observations taken from a population through
which statistical inferences for the whole
population are made.
The sample size under this study is of 100

respondents.
39 LIMITATIONS OF THE STUDY

This research work also possesses certain limitations. Some of the
unavoidable limitations of
the study are as follows:-
The sample size for the survey is limited to respondents.

The time horizon for the second part of the research to view the effectiveness of the
promotional activities in short.
Ihe respondents may be biased. Thus, rational analysis may not be possible.
he duration of the project was 6-8 weeks, so the data collected and analysis made
thereof is not comprehensive.
Large funds could not be invested.

lOMoARcPSD|16803712
CHAPTER-4
DATAANALYSIS AND INTERPRETATION

lOMoARcPSD|16803712
4.1 DATA ANALYSIS

All the observation are
ctudents based upon the
of college. primary data collected through
The observation questionnaire filled
dealt separately. made on both by
customers's or students questionnaire
1s
Observation based on
customer' squestionnaire
The customer's questionnaire
question related to
is attached with
it and as we can see
respondent's
insurance companies it consists of different
and
particulars. The questionnaire its personal details area
single open-ended consist for knowing
question. mainly closed-needed question
with a
The questionnaire is
divided into 2 categories
insurance company. meant for both reliance company
and life
As the questionnaire
was long but consist
or ranking is to of closed-ended question
be done, filling them was where only a choice of 2
interest in filling them. less time consuming and
customers have taken
The observation
are done question wise let see it
below:-

lOMoARcPSD|16803712
GENDER:
Gender plays a vita
ital role in purchase
decisions. Gender
ole
femal Gender classification is is classified on ssex basis i.e.
requiring to marketer male and
different perception towards products. because different gender
exhibit
Sex No. of respondents
Percentage%
Male
Female 35
65
Total 65
100 100
Source: Primary Data
Interpretation:
35% of the respondents are male and 65% of
the respondents are female. From the above
table we can conclude that, the majority
of the respondents were belongs to female group.
Sales
Male
35%
Female
65%

lOMoARcPSD|16803712
Occupation:
is also inf
n is nfluences a person's
Occupation consumption pattern. Similarly
pants. The following occupants
rious occupants. the insurance taking
of the respondents are classifies for the data
collection.
Occupation No. of respondent

Percentage
Selfemployed 20
20
Professional 10
10
House wife 65 65
Students 05 05
Total 100 100
Interpretation:
206ofthe respondents are selfemployed, 10% of the respondents are professional ,and 65%
ofthe respondents are house wives, 05% of the respondents are other group
Sales
students
5%
self employed
20%
professional
10%
house wifes
65%

lOMoARcPSD|16803712
al Which
urance you are
taking?
Insurance No. of respondent

Reliance 40 Percentage%
LIC 54 40
Others 06 54
Total 100 06
100
Interpretation:
A0P% of respondent taking reliance insurance,
54% of respondent taking n LIC
respondent taking others. , 6% of
Others
6%
rellance
40%
LIC
54%

lOMoARcPSD|16803712
Q2. What is
is the most
important factor
insurance? that matters
tters while taking
Factors No. of respondents

Percentage
Quality 23
13 23
Price
Service 57
Others 7
101a 100 7
100
Interpretation:
23% of respondent depend upon quality of insurance, 13%
of respondent depend upon price
of the insurance, 57% of respondent depend
upon service of the insurance, and 7% depend
upon others.
others
7%
quality
23%
price
13%
service
57%

lOMoARcPSD|16803712
How
Q3. LHow did come to know about
the insurance company?
Opinions No. of respondent

Percentage%
Byfriends/tamily 64
T.V. Ads 14
64
14
Others 22
22
Total 100
100
Interpretation:
64% of respondent are know about the insurance by friends/family, 14% of respondent
know about the insurance, 22% of respondent are know about the insurance by others.
others
22%
by families/friends
t.v. ads. 64%
14%

lOMoARcPSD|16803712
Q4. Are you satisfied with quality

of the insurance?
Satistaction No. of respondent

Percentage%
Yes 90
90
No 10
10
Total 100
100
Interpretation:
90% of respondent are satisfied with quality of the insurance and 10% of respondent are not
satisfied with quality of insurance.
no
10%
yes
90%

lOMoARcPSD|16803712
hat is more important in life insurance policy?
Features No. of respondent

Percentage %
Feature ofthe policy 43 43
Name of the company 12

12
Cash incentive 45
45
Others 24
24
Total 100 100
Interpretation:
5% of respondent like feature of the policy, as follows.
others
19%
feature of the policy

35%
cash incentive
36
name of the
company
10%

lOMoARcPSD|16803712
hich according to you

Whi is the largest company in the life insurance
Q6 sector?
company in private
Company
No. of respondent Percentage%
Reliance
60 60
TCIC pru
15 15
Tata AlG 20 20
Others
Total 100 100
Interpretation:-
respondent know about
Out of 100 respondent 60% respondent know about reliance 15%
industry.
ICicpru20% respondent know about tataaig and rest about other insurance
others
5%
tata AlG
20%
reliance
icic pru 60%
15%

lOMoARcPSD|16803712
Which insurance you currently

taking?
Insurance No. of respondent
Reliance
Percentage%
28
28
LIC 2
Max life 52
15
15
Others 5
5
Total 100
100
Interpretation;-
28% of respondent using reliance,
52% of respondent
max life and 5%
of respondent using others. using LIC, 15% of respondent
using
others
5%
Max life
reliance
15%
28%
LIC
52%

lOMoARcPSD|16803712
Q8 hat do you look in life insurance policy?

Qualities No. of respondent
Security 20 Percentage
Liquidity 10 20%
Savings 20 10%
All of the above 50 20%
Total 100 50%
100
Interpretation:-
20% of respondent looks security part for benefits 10% respondent liquidity 20% savings and
rest 50% 1looks all the above mentioned qualities in insurance.
security
20%
all if the above liquidity

50% 10%
savings
20%
liquidityy savings all if the above

security

lOMoARcPSD|16803712
09.Do you have reliance life insurance policy?

Policy No. respondent
percentage%
Yes 58
58
No 42
42
Total 100
100
Interpretation:
58% of respondent are using reliance policy and 42% of respondent using other policy.
no
42%
yes
58%

lOMoARcPSD|16803712
hat is your opinion about

insurance company?
Opinion No. of respondent
Outstanding Percentage%
45
45
Excellent 25
25
Good 28
28
Average
Total 100
100
Interpretation:
45%of respondent opinion are outstanding, 25% of respondent
opinion are excellent, 28% of
respondent opinion are good, and rest of opinion are average.
average
2%
good
28%
outstanding
45%
excellent
25%

lOMoARcPSD|16803712
Do you think the price of policies

npared to competitors? of insurance
anies isis high/low
companies
Percentage%
Very high 15
15
High 25
25
Average 60
60
Total 100
100
Interpretation:
159%
of respondent opinion are very high, 25%
of respondent opinion are high , 60% of
respondent opinion are average.
very high
15%
high
average 25%
60%

lOMoARcPSD|16803712
Doyvou various schemes/promotional activities affect

Q12. your purchase plans?
Activities
No. of respondent
Percentage%
30
Yes 30
70
NO 70
100
Total 100
Interpretation:
30% of respondent are affected by activities, 70% of respondent are not affected by activities
yes
30%
no
70%

lOMoARcPSD|16803712
is the most favorable

13. hich life insurance
scheme of the bank?
nk?
Schemes No. of respondent

Percentage %
-life plan 60
60
Finance 15
15
SampoornRaksha plan
Online term plan 20

20
Total 100 100
Interpretation:-
60%of respondent use I life plan, 159% of respondent use finance, 5% respondent use
sampoornRaksha plan, 20% respondent use online plan
Sales
online term
plan
20%
sampoorn raksha
plan
5% 1 life plan
finance 606
15%

lOMoARcPSD|16803712
Thinking of milar
insurance offered
Compare your insurance? by other companies
panies how would you
Better 15 Percentage
Same 65 15%
Don't know 20 65%
Total 20%
100
100
Interpretation:-
15% of respondent thinking
of better opinion 65% of
respondent of same opinion and rest
20% respondent don't compare the insurances.
better
15%
don't know
20%
same
65%

lOMoARcPSD|16803712
Q15. Which of the following policies

you have?
Types of
policies No. of respondent
Endowiment policy 15 Percentage
Single premium policy 15%
Children policy 13 25%
Money back policy 13%
46
1otal 100
45%
100%
Interpretation:-
15% respondent have endowment policy 26%%
respondent have single premiumn
policy 15% respondent have children
policy and rest 46% respondent have
money back policy.
endowment
policy
15%
money back policy

46% single prernium
policy
26%
children policy
13%

lOMoARcPSD|16803712
Q16 Have you eceived survival benefits

so far against policy.
Survival benefits No. of respondent
60 Percentage
Yes 60%
No 40
40%
Total 100
100%
Interpretation:-
60% of respondent received survival benefits and 40% of respondent didn't received survival
benefits.
Yes No
40%
60%

lOMoARcPSD|16803712
18. How would you like to pay premium?
Option No. of the respondent

Monthly 20 Percentage
20%
Quarterly 30 30%
Half yearly 15
15%
Yearly 35
35%
Total 100
100%
Interpretation:-
20% of respondent pay premium monthly 30% of respondent pay premium

quarterly 15% respondent pay half yearly and rest 35% respondent pay yearly.
monthly
20%
yearly
35%
2nd Qtr
302%
half yearly
15%

lOMoARcPSD|16803712
a19. Are you gularly paying

the premium?
Yes 90 Percentage
No 10 90%
Total 100 10%
100%
Interpretation:
g0% of respondent pay premium regularly
and rest 10% of respondent didn't
pay premium regularly
no
10%
yes
90%

lOMoARcPSD|16803712
Have you rece ved any incentive from

220
20. insurance
nce agent on insurance
premium?
Option No.ofrespondent
85 Percentage
Yes
15 85%
No 15%
Total 100
100%
Interpretation:-
89% of respondent receive incentive from

agent and rest 15% of respondent
didn't receive any incentive from
agent.
no
15%
yes
85%

lOMoARcPSD|16803712
021. If
yes, up to how
021 much percentage?
Option No. of respondent
0-5% 40 Percentagge
5-10%
10-15% 15 40%
25 15%
15-20%
20 25%
Total
100 20%
100%
Interpretation:-
40% of respondent
receive 0-5% incentive
receive 5-10% 15% respondent
and 25% respondent of respondent
receive 15-20% receive l10-15%
incentives. rest 20% respondent
15-20%
20%
0-5%
40%
10-15%
25%
5-10%
15%

lOMoARcPSD|16803712
Have you
surrendered your insurance policies?
vou suri
(22h
No. of respondent
Percentage
piro
5%
95
95%
NO 100
100%
ola
nterpretation:
responde
ndent surrendered policies and rest 95% respondent didn't
5%of
Surrendered policies.
2nd Qtr
95%

lOMoARcPSD|16803712
you
u find that surer is cooperative?
223. Do
No. of respondent
Percentage
Option 99 99%
Yes 1%
No 100 100%
Total
Interpretation:-
find insurer cooperative and rest
1% of respondent find insurer
of respondent
99%i of
uncooperative.
no
1%
yes
99%

lOMoARcPSD|16803712
Tollows the rules of IRDA2

lows
1sLC
4UOn No. of respondent
100 Percentage
100%
100
100%
nterpretation:
follows all the rules of IRDA.

LIC
yes
100%

lOMoARcPSD|16803712
Have availed any

25. loan against
insurance
policy
Availed loan No. of respondent
Yes 80 Percentage
No 20 80%
Total 100 20%
100%
Interpretation:-
G of the
respondent availed l0an against the insurance and rest 20%
espondent didn't take loan against insurance.
of
no
20%
yes
80%

lOMoARcPSD|16803712
Q26. Most likely periodicity of policy

No. of years No. of respondent Percentage
Upto 5years 20 20%
5-15years 40 40%
15-25 years 25 25%
Above 25 years 15 15%
Total 100 100%
Interpretation:-
20% of respondent pay 5yearly 40% of respondent pay 5-15 yearly basis 25%
respondent pay 15-25 yearly basis and rest above 25 years.
above 25 years upto 5 years

15% 20%
15-25 years
25%
5-15 years
40%

lOMoARcPSD|16803712
027. What do you feel after

Q27. What
investing in insurance plans?
Options No. of respondent

Percentage
Good 65 65%
Average 30
30%
Cheated 5
5%
Total 100 100%
Interpretation:-
65% of respondent feel good investing in insurance plans 30% of respon dent
feel average in investing in insurance plans and rest feel cheated in plans.
cheated
5%
average
30%
good
65%

lOMoARcPSD|16803712
Q28. What is overall perception about insurance in india?
Perception No. of respondent Percentage

Positive 98 98%
Negative 2 2%
Total 100 100%
Interpretation:-
98% of respondent have positive perception towards insurance and rest 2% of
respondent have negative respondent towards insurance.
Negative
25%
Positive
98%

lOMoARcPSD|16803712
029. Which you preferred insurance company in future?
Types ofinsurance No. of respondent Percentage

HDFClife 35 35%
BAJAJ life 25 25%
STAR HEALTH 16 16%
Others 24 24%
Total 100 100%
Interpretation:-
35% of respondent prefer hdfe life insurance 25% of respondent prefer bajaj life insurance
16% of respondent prefer star health insurance
and rest 24% of prefer other insurance.
Sales
Others
24%
HDFC Life
35%
STAR Health
16%
BAIAJ Life
25%

lOMoARcPSD|16803712
feel
eel that insurance company
30. Do you helps people to save money
Opinion No. of respondent Percentage
98
Yes 98%
No 2%
Total 100 100%
Interpretation:-
98% of the respondent feel to take insurance policy and rest 2% of the
respondent don't feel to take insurance policy.
no
2%
yes
98%

lOMoARcPSD|16803712
CHAPTER-5
FINDINGS& SUGGESTIONS

lOMoARcPSD|16803712
5.2 Suggestion of the study
Product knowledge of life insurance agents is a must. So that

they can guide the
prospects in ight direction and clear their doubts. The agents
have to develop their
traits, update their knowledge to attract theattention of the public and make
them
invest immediately. They should have clear cut knowledge about
the life insurance
policies, premium payment and other benefits of the policies.
The agents act as a bridge between policyholders and life insurance
companies. They
must take efforts to popularize the life insurance policies among the people
and create
awareness about life insurance.
It is also suggested that the life insurance
companies may give a wide publicity and
advertisement in an attractive medium like television, wall
painting, posters and
banners. By doing so, more number of people may be aware of
the life insurance
companies and their products.
One of the major problems faced by the agents
is unwillingness of the prospects and
policyholders to take up the policy. Banks often organize
loan mela to disburse loans.
Life insurance companies can also organize
loan mela to disburse loans against the
value of policy. This will attract the attention
of many people and new policyholders
can be added to the life insurance companies.
At the same time, the financial crisis of
the policyholders can be met by the loan sanctioned
so that surrender and causation of
the policies can be avoided.
The agents, acting on behalf of the life insurance
companies should avoid making
false promises and misleading information to the policyholders
in terms of premium
details, maturity details and repayment terms. They
must guide the prospects in
choosing the policy according to their requirement. Some
agents concentrate on the
policies for which they will get more commission not on
the requirement of the
prospects. Such a practice is to be avoided.
With regard to reasons for not investing more amount in
life insurance policies
majority of the policyholders of SBI Life, ICICI Prudential Life
and LIC of India
assigned first rank to 'Not profitable'. Return on the life insurance
policies in the form
of bonus should be increased in order to make the life insurance products
as a more
attractive investment. The bonus amount can be increased by the life
insurance
companies to compensate the decreased money value for the long term policies.
Policies with lesser maturity period will also attract many policyholders as
majority of
the respondents feel that return is after a long period. Liquidity of life insurance
policies can be improved by introducing short term products and it would increase
the
satisfaction among the policyholders.
A good customer relationship management 1s very essential to compete
in the
competitive environment. The life insurance companies have to reorient themselves
in
termsofcustomer service and the service quality measures have to be improved.
The agents act as a bridge between policyholders and life insurance companies. Thev
must take efforts to popularize the life insurance policies among the people and create
awareness about life insurance.

lOMoARcPSD|16803712
5.1 Findings of the study

&58% of respondent are using reliance policy and 42% of respondent using other policy.
15% respondent have endowment policy 26% respondent have single premium policy
13% respondent have children policy and rest 46% respondent have money back policy.
&0% of respondent received once in a time 45% of respondent received twice 15% of
respondent received thrice and 10% of respondent didn't received yet.
It has been observed that the total premium was found to be high in National Insurance
Company followed by Oriental Insurance Company, New India Assurance Company and
United India Insurance Company during the study period.
&Majority of 51.25% of policy holders have made their first approach to the company
through agents.
&It is heartening to note that 272 customers are satisfied on response given by general
insurance companies in the study area.
It is inferred that the industrial customers are more satisfied with services of the officers
than the retail customers.
The survey made in this regard exposes that 94.69% of respondents do not move for
further insurance company due to dissatisfaction of the first one.
are of the view that they have hold policies with
&It is inferred that 52.94% of respondents
the current insurer on sentimental ground in spite of noted lapses on their service.
The survey brings to light the fact that 100 policy holders decipher the policy and
understood the ingredients of the policy in the right perspective.
I0% respondent liquidity 20% savings
20% of respondent looks secunty part Ior benefits
mentioned qualities in insurance.
and rest 50% looks all the above
from agent and rest 15% of respondent didn't
85% of respondent receive incentive
receive any incentive from agent.
incentive 15% respondent of respondent receive 5-10%
40% of respondent receive 0-5%
10-15%% rest 20% respondent receive 15-20% incentives.
and 25% respondent receive
5yearly 40o oI respondent pay 5-15 yearly basis 25% respondent
20% of respondent pay and rest above 25 years.
pay 15-25 yearly basis plans 30% of respondent feel averaoe
of respondent feel good investing in insurance
65% rest feel cheated in plans.
investing in insurance plans and
in

lOMoARcPSD|16803712
CHAPTER-6
CONCLUSION

lOMoARcPSD|16803712
6.1 Conclusion
The competitive climate in the life
insurance market has changed
due to regulations of IRDA and the expectations over the last few years
Insurance companies are targeting upon of the policyholders are also
changing.
the policyholders by giving
mission to make them delighted them returns with the
and satisfied. The life insurance
care to ensure that every policyholder companies must take
is totally satisfied and as a result
has grown significantly. While designing its customer base
the marketing strategy, life the
companies have to consider the marketing insurance
strategies, promotional methods and policy
innovations of competitorS. They have to frame
the strategies in two aspects i.e., to win
over the hearts of the policyholders and to tackle
the competition. This is possible only
through agents and employees in life insurance companies. A lot
is to be done by the life
insurance companies to maximize the satisfaction of the policyholders and improve
the
quality of service.The study area with all its industrial and trade potentialities and also
with population to have properties insurable under general insurance folio. The current
number of general insurance companies both belong to both public sector and private
sector make penetrating marketing endeavour in an intensified nature. They have
achieved increasing business every year. Yet comparing with the vast untapped potential
business, the current marketing efforts are not commensurate and they have to tune up the
marketing force. Especially they have to bring a mind get to the people making them to
recognize general insurance as a cost to the trade and industries and also an important
expense to the common people in safeguarding the financial loss caused by damage or
destruction to their properties. The vast premium income mobilized by LIC helped the
infrastructure. In 2018-2019.
nation in economic development, especially in building up
was Rs1,11,888 crore, helping the country in
its accumulated investment ininfrastructure enhancement of basic amenities
improving the quality of the people at large through the
electrification and transport.LIC has made notable
like potable water, drainage, housing, market. It has participated in the
contributions to the development of the equity
UTI and NIA. LIC has taken advantage of
establishment of institutions lie NSC, IDBI,
Technology and initiated measures for the convenience of the policy
information and
holders.

lOMoARcPSD|16803712
REFRENCES:
G.C. Beri (2016) "reliance insurance police's and principles

Reliance life Insurance Journal: Reliance Life Insurance internal magazine and Brochures
Kenneth Black and Harold D. (2014) Life and Health Insurance and their life cyele', types of
insurances in field of insurance industry'

Retrieved from: www.insuranceconcept.org
principles of insurance'
M.Eswari Karthikeyan (2016) 'fundamental
www.meminnlaw.com/principlesofinsurance
Retrieved from :
principles and insurance Practices

Mishra M.N. (2017) 'Insurance
www.schandinsuranceprinciples.org
Retrieved from:
insurance
refrence to LIC and Relaince
Pope,D(2017) 'behaviour and attitude with
www.researchgate.net
Retrieved from:

lOMoARcPSD|16803712
Personal profile:
Name:
AddresS:
Sex:
Male ) Female
Age
Occupation:-
Self-employed
House-wife
Professional
Student
Q1. Which insurance you
are taking?
LIC
Relaince
Max life
Others
Q2. What is the most important factor that matters while taking insurance?
Quality
Price
Service
Q3. How did you come to know about the insurance companies?
By friends/family
T.V. Ads.
Press Ads.
Q4. Are you satisfied with quality of the insurance?
Yes
No
Q5. What is more important life insurance policy?

Feature ofthe policy
Name of the company
Cash incentive

lOMoARcPSD|16803712
Q6. Which
Ok according to you is the largest company in the life insurance
industry in private sector?
Reliance
Pru
ICIC
Tata AlIG
Others
Q7. Which insurance you currently taking?
Reliance
LIC
Max life
Others
Q8. What do you look in life insurance policy?
Security
Liquidity
Savings
All of the above
Q9. Do you have a reliance life insurance policy?
Yes
No
Q10.What is your opinion about insurance policy'?
Outstanding
Excellent
Good
Average
Q11. Do you think the price of policies of insurance companies is high/low

compared to competitors?
Very good
High
Average
Q12. Do the various schemes/promotional activities affect your purchase plans?
Yes
No

lOMoARcPSD|16803712
W/hich is the most

Q13. favorable life insurance
scheme of the bank?
I- life plan
Finance
SampoornRaksha plan
Online term plan
o14. Thinking of similar insurance
offered by other companies, how
Compare your insurance? would you
Better
Same
Don't know
Q15. Which of the following policies you have?
Endowment policy
Single premium policy
Children policy
Money back policy
Ql6. Have you received survival benefits so far against back policy
>Yes
No
Q17. If yes, how many times you have received?
1
2
3
Not yet
Q18. How would you like to pay premium?
Monthly
Quarterly
Half yearly
Yearly
Iy. Arc you regularly paying the premium?
Yes
No
.
premium?
Have you received any
incentive irom insurance agent
on insurance

lOMoARcPSD|16803712
Yes
No
021. If yes, up to how much percentage?
0-5%
05-10%
10-15%
>15-20%
022.Have you surrendered your
insurance policies?
Yes
No
Q23. Do you find that the
insurer is cooperative?
Yes
No
Q24. Is LIC follows the rules
of IRDA?
Yes
No
25. Have you availed any loan against insurance policy?
Yes
No
Q26. Most likely periodicity
of policy
Upto5yrs
5-15yrs
15-25yrs
Above 25yrs
Q27. What
do you feel after investing in insurance plans?
Good
Average
Cheated
28. What is overall perception about insurance in india?
Positive
Negative

lOMoARcPSD|16803712
029. Which you preferred insurance company in future, if any

HDFC life
BAJAJ life
STAR HEALTH
Others
to save money
Q30. Do you feel that the insurance company helps people
Yes
No

Comparative Analysis of LIC and Reliance Life Insurance

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lOMoARcPSD|16803712

A comparative analysis of lic insurance v-s reliance insurance

Studocu is not sponsored or endorsed by any college or university

UNDER THE GUIDANCE

ECP Group of Institutions

CHANDERPRABHU JAIN COLLEGE

Plot no.OCF Sector A-8 Narela New Delhi-40

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Date: Name of the Student: Himanshi

Ms. Shalu Chauhan

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Date: Supervisor Signature:

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Certificate from Guide *** *** *** *** * ****

Acknowledgement * . ** *** III

1.3 Methods of Insurance. * *** ***

1.6 Insurance Regulatory and Development Authority.

1.9 Types of Life Insurance in India....

1.12 Certain Competitors of LIC & Reliance Insurance

1.14 Benefits of Reliance Life Insurance.

1.15 Different Types of Life Insurance Policies Offered by Reliance.

1.20LIC Life Insurance Customer Care...

CHAPTER-2: LITERATURE REVIEW (33-36)

3.2 Types of Research...

3.4 Sources of Data... ** ** ***********

3.5 Sources of data used in Project.. * *** ** (37-40)

3.8 Sample Size ..

3.9 Limitation of the Study... . *** **

CHAPTER-4: ANALYSIS& INTERPRETATION OF DATA (41-73)

ANNEXURES (if any) (77-82)

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enterprise involves large

1.2 Insurance Industry

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policyholder's losses. However, in case of

1.4 Insurance Of Principles:

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1.5 Insurance Companies

or proprietary companies. Mutual

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that sell policies to other insurance companies,

Captive insurance compaies companies

and Development and re-

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Section 4 of the IRDAI Act 1999 specifies the authority's composition. It is a

Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations

7 Why 'Sabse Pehle Life Insurance

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Insurance should be the first step to building a robust

Why do I need Life Insurance?

to the insurance company

Fighting Chance Against

A Dream of Living Debt

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Buying Life Insurance has the following benefits:

What led to the 'Sabse Pehle Life Insurance' campaign?

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cover while health insurance

Certificate from Guide * * * * * ****

Acknowledgement * . * III

1.3 Methods of Insurance. * * *

3.4 Sources of Data... ***********

3.5 Sources of data used in Project.. * * (37-40)

3.9 Limitation of the Study... . *