A Study on Customer Satisfaction of Reliance Life Insurance

A

Research Project Report

ON

“A STUDY ON CUSTOMER SATISFACTION OF RELIANCE LIFE INSURANCE”

Submitted in the partial fulfillment for the degree of

Master of Business Administration

Session (2009-2011)

Under

The Guidance Of: Submitted By :

Mrs. Pooja Bindlish ASHOK KUMAR

Department Of Management MBA 4rth Sem.

SIMT Roll No: 109002

Exam Roll No………..

1

Sarswati Institute of Management &Technology KaithalKurukshetra University, Kurukshetra

092543-291000172-5002920

Fax : 0172-4616994Mobile : 98767-38000

SARASWATI INSTITUTE OF MANAGEMENT & TECHNOLOGY

Teek, Distt. Kaithal-136027 (Haryana)Run by : Shiv Bhola Hi-Tech Education Society# 99, SECTOR 7, PANCHKULA (HARYANA)

Present Correspondence Address : Plot No. 994, Ind. Area, Phase-II, Chandigarh-160002, E-mail : [email protected]

Ref. No. _______________ Dated _______________

To whomsoever it may concern

This is to certify that the Research Project of MBA entitled, “A STUDY ON CUSTOMER

SATISFACTION OF RELIANCE LIFE INSURANCE”, done by Mr. ASHOK

KUMAR, Roll No. 109002 is a beneficed work carried out by him under my guidance. The

matter embodied in this project work has not been submitted in our college earlier for award of

any degree or diploma to the best of my knowledge and belief.

Mrs. Pooja Bindlish Lecturer

2

DECLARATION

I ASHOK KUMAR Roll No. 109002, here by declare that this project report entitle “A STUDY

ON CUSTOMER SATISFACTION OF RELIANCE LIFE INSURANCE” has not

been presented as a par of any other academic except to get my MBA from Sarswati Institute of

Management &Technology, Kaithal

( ASHOK KUMAR )

3

ACKNOWLEDGEMENTS

In this present world of competition there is a race of existence in which those who are having

will to come forward will succeed. Project is a bridge between practical and theoretical working,

with this will I have joined the project. I really wish to express my gratitude towards all those

people who have helped me.

My project guide Mrs. POOJA BINDLISH (lecturer) who provided me her expert advise,

inspiration & moral support in spite of her busy schedule & assignments, has mainly provided

my understanding of this project. I am very grateful to her kindhearted approach &

encouragement, which helped me immensely in completion of this project report.

I take this opportunity to express my gratitude to Mr. K.K AGGARWAL (Director), for his

invaluable help & guidance throughout the course.

Last, but not the least, I say only this much that all are not to be mentioned but none is forgotten and I will like to extend my special thanks and gratitude to all my classmates who always encourage me in pursuit of excellence.

(ASHOK KUMAR)

4

PREFACE

This project has been prepared, as a part of our MBA Program. This will also serve as basis

knowledge of “A STUDY ON CUSTOMER SATISFACTION OF RELIANCE LIFE

INSURANCE ” The Project Report is accompanied with number of Formats, charts & flow

diagram, which will be helpful in understanding the subject matter. We are thankful to Mrs.

Pooja Bindlish ; Lastly we are grateful to all the seen and unseen hands that have been kind

enough to help me in preparing the above project report from the beginning to end.

( ASHOK KUMAR )

5

Contents

Particulars Page No.

Introduction to the study 01

Introduction to the company 10

Objectives of study 21

Research Methodology 23

A. Research Design 25

Non- Probability

Exploratory & descriptive experimental research

B. Sampling Methodology 26

Sampling Technique

Sampling Unit

Sample Size

Sampling Area

Data Interpretation 27

Findings 39

Limitation 41

Suggestions 43

Conclusions 45

References 47

Questionnaire 49

6

“AN OVERVIEW”

THE INSURANCE INDUSTRY IN INDIA

7

With the largest number of life insurance policies in force in the world, Insurance

happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20

per cent annually and presently is of the order of Rs 1560.41 billion (for the financial

year 2006 – 2007). Together with banking services, it adds about 7% to the country’s

Gross Domestic Product (GDP). The gross premium collection is nearly 2% of GDP and

funds available with LIC for investments are 8% of the GDP.

Even so nearly 65% of the Indian population is without life insurance cover while health

insurance and non-life insurance continues to be below international standards. A large

part of our population is also subject to weak social security and pension systems with

hardly any old age income security

A well-developed and evolved insurance sector is needed for economic development as

it provides long term funds for infrastructure development and strengthens the risk

taking ability of individuals. It is estimated that over the next ten years India would

require investments of the order of one trillion US dollars.

HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818 when it was conceived as a

means to provide for English Widows. Interestingly in those days a higher premium was

8

charged for Indian lives than the non - Indian lives, as Indian lives were considered

more risky to cover. The Bombay Mutual Life Insurance Society started its business in

1870. It was the first company to charge the same premium for both Indian and non-

Indian lives.

The Oriental Assurance Company was established in 1880. The General insurance

business in India, on the other hand, can trace its roots to Triton Insurance Company

Limited, the first general insurance company established in the year 1850 in Calcutta by

the British. Till the end of the nineteenth century insurance business was almost entirely

in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance

Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during the

1920's and 1930's sullied insurance business in India. By 1938 there were 176

insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of 1938 that

provided strict State Control over the insurance business. The insurance business grew

at a faster pace after independence. Indian companies strengthened their hold on this

business but despite the growth that was witnessed, insurance remained an urban

phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and

provident societies under one nationalized monopoly corporation and Life Insurance

Corporation (LIC) was born. Nationalization was justified on the grounds that it would

create the much needed funds for rapid industrialization. This was in conformity with the

Government's chosen path of State led planning and development.

The non-life insurance business continued to thrive with the private sector till 1972.

Their operations were restricted to organized trade and industry in large cities. The

general insurance industry was nationalized in 1972. With this, nearly 107 insurers were

amalgamated and grouped into four companies- National Insurance Company, New

India Assurance Company, Oriental Insurance Company and United India Insurance

Company. These were subsidiaries of the General Insurance Company (GIC).

9

KEY MILESTONES

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers along with provident societies were taken over by

the central government and nationalized. LIC was formed by an Act of Parliament- LIC

Act 1956- with a capital contribution of Rs. 5 crore from the Government of India.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA

The life insurance industry in India grew by an impressive 47.38%, with premium

income at Rs. 1560.41 billion during the fiscal year 2006-2007. Though the total volume

10

of LIC's business increased in the last fiscal year (2006-2007) compared to the previous

one, its market share came down from 85.75% to 81.91%.

The 17 private insurers increased their market share from about 15% to about 19% in a

year's time. The figures for the first two months of the fiscal year 2007-08 also speak of

the growing share of the private insurers. The share of LIC for this period has further

come down to 75 percent, while the private players have grabbed over 24 percent.

With the opening up of the insurance industry in India many foreign players have

entered the market. The restriction on these companies is that they are not allowed to

have more than a 26% stake in a company’s ownership.

Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7

billion have poured into the Indian market and 19 private life insurance companies have

been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled

fledgling private insurance companies to sign up Indian customers faster than anyone

expected. Indians, who had always seen life insurance as a tax saving device, are now

suddenly turning to the private sector and snapping up the new innovative products on

offer. Some of these products include investment plans with insurance and good returns

(unit linked plans), multi – purpose insurance plans, pension plans, child plans and

money back plans.

MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIAMAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

Life Insurance Corporation of India (LIC)

11

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

spread the message of life insurance in the country and mobilise people’s savings for

nation-building activities. LIC with its central office in Mumbai and seven zonal offices at

Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through

100 divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh

active agents spread over the country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius and

United Kingdom. LIC is associated with joint ventures abroad in the field of insurance,

namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance

Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C.

Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit

linked life insurance and pension policies in U.K.

LIC has even provided insurance cover to five million people living below the poverty

line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95

per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent.

Compounded annual growth rate for Life insurance business has been 19.22 per cent

per annum

General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company

known as General Insurance Corporation of India (GIC) was formed by the Central

Government in November 1972. With effect from 1 January 1973 the erstwhile 107

Indian and foreign insurers which were operating in the country prior to nationalization,

were grouped into four operating companies, namely, (i) National Insurance Company

Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company

Limited; and (iv) United India Insurance Company Limited. (However, with effect from

Dec'2000, these subsidiaries have been de-linked from the parent company and made

as independent insurance companies). All the above four subsidiaries of GIC operate all

over the country competing with one another and underwriting various classes of

general insurance business except for aviation insurance of national airlines and crop

insurance which is handled by the GIC.

12

Besides the domestic market, the industry is presently operating in 17 countries directly

through branches or agencies and in 14 countries through subsidiary and associate

companies.

IN ADDITION TO ABOVE STATE INSURERS THE

FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO

INSURANCE BUSINESS: -

The introduction of private players in the industry has added to the colors in the dull

industry. The initiatives taken by the private players are very competitive and have given

immense competition to the on time monopoly of the market LIC. Since the advent of

the private players in the market the industry has seen new and innovative steps taken

by the players in this sector. The new players have improved the service quality of the

insurance. As a result LIC down the years have seen the declining phase in its career.

The market share was distributed among the private players.

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life

insurance companies, which offers a range of individual and group insurance solutions.

It is a joint venture between Housing Development Finance Corporation Limited (HDFC

Ltd.), India’s leading housing finance institution and The Standard Life Assurance

Company, a leading provider of financial services from the United Kingdom. Their

cumulative premium income, including the first year premiums and renewal premiums is

Rs. 672.3 for the financial year, Apr-Nov 2005. They have managed to cover over

11,00,000 individuals out of which over 3,40,000 lives have been covered through our

group business tie-ups.

2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together

two large forces - Max India Limited, a multi-business corporate, together with New York

13

Life International, a global expert in life insurance. With their various Products and

Riders, there are more than 400 product combinations to choose from. They have a

national presence with a network of 57 offices in 37 cities across India.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse and Prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was amongst the

first private sector insurance companies to begin operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA). The

company has a network of about 56,000 advisors; as well as 7 banc assurance and 150

corporate agent tie-ups.

5. Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and

Sun Life financial Services of Canada.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

1. Royal Sundaram Alliance Insurance Company

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram

Finance Limited started its operations from March 2001. The company is Head

Quartered at Chennai, and has two Regional Offices, one at Mumbai and another one

at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

14

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto

Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and

strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development

Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General

Insurance business (including Health Insurance business) in India. The Company has

an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the

remaining 26% is held by Allianz, AG, Germany.

3. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint venture between ICICI

Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI

Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified

financial corporate engaged in general insurance, reinsurance, insurance claims

management and investment management.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture

of the Murugappa Group & Mitsui Sumitomo.

Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh

policies in its first calendar year of operations. The company has a pan-Indian presence

with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune,

Indore, Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the

Tata Group and American International Group, Inc. (AIG). Tata AIG combines the

strength and integrity of the Tata Group with AIG's international expertise and financial

strength. The Tata Group holds 74 per cent stake in the two insurance ventures while

AIG holds the balance 26 per cent stake.

15

ABOUT RELIANCE

16

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the

Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading

private sector financial services companies, and ranks among the top 3 private sector

financial services and banking companies, in terms of net worth. Reliance Capital has

interests in asset management and mutual funds, stock broking, life and general

insurance, proprietary investments, private equity and other activities in financial

services.

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve Bank

of India Act, 1934.

Reliance Capital sees immense potential in the rapidly growing financial services

sector in India and aims to become a dominant player in this industry and offer fully

integrated financial services.

Reliance Life Insurance is another step forward for Reliance Capital Limited to offer

need based Life Insurance solutions to individuals and Corporate.

COMPANY PROFILE OF RELIANCE LIFE INSURANCE

17

FOUNDER

Few men in history have made as dramatic a contribution to their country’s economic

fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left

behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true

genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud

patriot, the leader of men, the architect of India’s capital markets, the champion of

shareholder interest.

But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth

creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest

private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of

barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he

converted this fledgling enterprise into a Rs 60,000 crore colossus—an achievement

which earned Reliance a place on the global Fortune 500 list, the first ever Indian

private company to do so.

Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when

Reliance Textile Industries Limited first went public, the Indian stock market was a

place patronised by a small club of elite investors which dabbled in a handful of

stocks.

CORPORATE OBJECTIVE

18

At Reliance Life Insurance, we strongly believe that as life is different at every stage, life

insurance must offer flexibility and choice to go with that stage. We are fully prepared

and committed to guide you on insurance products and services through our well-

trained advisors, backed by competent marketing and customer services, in the best

possible way.

It is our aim to become one of the top private life insurance companies in India

and to become a cornerstone of RLI integrated financial services business in

India.

CORPORATE MISSION

“To set the standard in helping our customers manage their financial future”.

RELIANCE POLICIES

(1) Reliance Children Plans

19

What could make you happier than knowing, that your child's future is secure? Nothing,

we suppose. Which is why, Reliance Life Insurance brings to you Reliance Secure Child

Plan, a unit-linked Insurance Plan, that gives you the freedom to enjoy today with your

child, because his tomorrow is in safe hands.

Do you see your child becoming a trailblazer?

Will they create the ultimate symphony or give sports a new dimension?

Our children may just be the ones to end the arms race and wipe out poverty from the

face of the Earth. But for them to be able to aim for the skies, YOU NEED TO ACT

NOW!

Introducing Reliance Secure Child Plan - a unique life insurance cum savings plan.

secure the future of your child.

Key Features

Insurance cover on the life of child Your child is completely protected - we will continue to pay the

premiums even if you are not alive

Life time income to child in the event of disability

Return Shield option to protect your investment returns

Liquidity in the form of partial withdrawals

Capital guarantee available on maturity and on death of the child

for basic and top-up premiums

(2) RELIANCE HEALTH + WEALTH POLICY

20

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS

BORNE BY THE POLICYHOLDER.

There are times when late working hours take precedence over your health check-ups.

And there are times when a visit to the doctor seems more important than dividends on

your shares. In the rat race to make money, we often forget to take care of ourselves.

We understand this predicament. Here is a plan that will ensure that your wealth keeps

increasing constantly and yet your health does not take a backseat. The Reliance

Wealth Health Plan. A plan that gives you the benefits of wealth bhi. health bhi.

Life changes. And as it does, so do your priorities. After all, the circumstances of your

life can determine the type of health coverage you need.

India has made rapid strides in the health sector. Since Independence, life expectancy

has gone up markedly and survival rates have also increased, still critical health issues

remain. Infectious diseases continue to claim a large number of lives.

Reliance Wealth + Health Plan, a health insurance plan underwritten by Reliance Life

Insurance Company Limited, is designed to work in conjunction with contributions

towards savings.

Key Feature

A Unit Linked plan with Unique Savings Component

Twin benefit of market linked return and health protection

Choose from two different plan options

Flexibility to take care of your family’s health

(3) Reliance Pension Policy

21

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS

BORNE BY THE POLICYHOLDER.

Retirement means different things to different people, while some want to relax and take a trip

around the world, some want to start up a venture of their own, and pursue a dream harnessed for

years. The power to make your autumn years special lies only with you. The Reliance Super

Golden Years Plan gives you the power and the right kind of solution - A retirement plan that

allows you to save systematically and generate the much-needed corpus to make your olden

years look golden.

Key Features – Reliance Pension Policy :

Invest systematically and secure your golden years

A flexible unit-linked pension product that is different from traditional

life insurance products with Vesting Age between 45 & 70 years

Eight different investment funds to choose from

Flexibility to switch between funds

Option to pay Regular, Single as well as Top-up premiums

Flexibility to advance / extend your Vesting Age

Tax free commutation up to one third of Fund Value at Vesting Age

(4) Reliance Whole life insurance policy

22

You’ve always loved your family. As a loving person you want to be rest assured that

they will be happy, even if something were to happen to you. With Reliance Whole Life

Plan you can be sure that your family will receive that timely financial support they need.

Go ahead, live your today to the fullest, without a worry about tomorrow.

Key Features

Insurance protection till age 85

Choice of extending your insurance coverage till age 99

Convenient Premium Payment Term

Wealth creation through bonus additions

More value for your money by way of High Sum Assured Rebate Get

Sum Assured plus Bonuses in case of your unfortunate death

Option to add two Riders – Critical Illness and Accidental Death

Benefit and Total and Permanent Disablement Rider

Policy Loan available after three full years premium payment

BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY RELIANCE

LIFE INSURANCE

23

INSURANCE PLANS AVAILABLE

1. Products (Individual Plans)

Savings (Endowment)

2. Reliance Endowment Plan (formerly Divya Shree)

3. Reliance Special Endowment Plan (formerly Subha Shree)

4. Reliance Cash Flow Plan (formerly Dhana Shree)

5. Reliance Child Plan (formerly Yuva Shree)

6. Reliance Whole Life Plan (formerly Nithya Shree)

Pensions

7. Reliance Golden Years Plan (formerly Bhagya Shree)

Investments

8. Reliance Market Return Plan (formerly Kanaka Shree)

9. Risk / Protection

10. Reliance Term Plan (formerly Raksha Shree)

Products (Group / Corporate Plans)

11. Risk (Protection )

Reliance Group Term Assurance Policy

(formerly Group Term Assurance Policy)

OTHER COMPETITIORS

CUSTOMER SATISFACTION

Customer satisfaction is defined in the general satisfaction is a persons feeling of

pleasure or disappointed resulting from comparing a product/service perceived

24

http://www.reliancelife.co.in/products/ebp_RCESP.asp

http://www.reliancelife.co.in/products/ind_RTP.asp

http://www.reliancelife.co.in/products/ind_RMRP.asp

http://www.reliancelife.co.in/products/ind_RGYP.asp

http://www.reliancelife.co.in/products/ind_RWLP.asp

http://www.reliancelife.co.in/products/ind_RCP.asp

http://www.reliancelife.co.in/products/ind_RCFP.asp

http://www.reliancelife.co.in/products/ind_RSEP.asp

http://www.reliancelife.co.in/products/ind_REP.asp

performance in relation to his or her expectation. If the performance fells short of

expectation the customer is not satisfied. If the performance matches the expectation

the customer is satisfied. If the performance exceeds expectations the customer is

highly satisfied or delighted.

Although the customer centered firms seeks to create high customer satisfaction,

that is not its ultimate goal. If the company increases customer satisfaction by lowering

its price or increasing its services the result may be lower profit. The company might be

able to increase profitability by means other than increased satisfaction. Defined as the

feeling of pleasure or disappointment by comparing the perceived performance of the

product or service to expectation perceived with product.

Customer Satisfaction = Performance / Expectation

Customer Satisfaction = Benefits / Conceived

All marketing strategies is built on STP- segmentation, Training, and Positioning. A

company discovers different needs and groups in the superior way, and then positioning

its offering so that the target market recognizes the company’s distinctive offering and

image .If a company does a poor job of poisoning, the market will be confused as to

what to expect .If a company does an excellent job of positioning, then it can work out

the rest of its marketing planning and differentiation from its positioning strategy.

A must have decide how many ideas to convey in its positioning to its target

customers. Many marketers advocate promoting only one central benefit.

A market offering can be differentiated along five dimensions

Product:- Form, feature, performance quality, conformance quality, durability, reliability,

responsibility, style, design.

Service:- Order as, delivery, installation, customer training ,customer consulting ,

maintenance and repair, miscellaneous services.

Because economic conditions change and competitive activity varies, companies

normally find it necessary to reformulate their marketing strategy several times during a

product’s life cycle.

The definition of customer satisfaction has been widely debated as organizations

increasingly attempt to measure it. Customer satisfaction can be experienced in a

variety of situations and connected to both goods and services. It is a highly personal

assessment that is greatly affected by customer expectations. Satisfaction also is based

25

on the customer’ experience of both contact with the organization (the “moment of truth”

as it is called in business literature) and personal outcomes. Some researchers define a

satisfied customer within the private sector as “one who receives significant added

value” to his/her bottom line—a definition that may apply just as well to public services.

26

OBJECTIVES OF STUDY

The main of the present study of is accomplish the following objective.

27

Proper understanding and analysis of life insurance industry.

To know about brand awareness of RELIANCE Life Insurance and

customer’s satisfaction about Life Insurance.

According the market survey come know about how much potential of

insurance market in our city.

And base on analysis of the result thus obtained make a report on that

research.

28

RESEARCH METHODOLOGY

Research can be defined as systematized effort to gain new knowledge. A

research is carried out by different methodology, which has their own pros and cons.

29

Research methodology is a way to solve research problem along with the logic

behind them. Thus when we talk of the research methodology we not only take of

research method but also context of our research study and explain why we are using a

particular method or techniques and why we are not using other so that research result

are capable of being evaluated either by the researchers himself or by others.

Research methodology means the method carried out to study the problem . It

shows the type of the sample design used, its size and the procedure used to dew

sample. The extent of precision achieved and the method used for handling any special

problem during the course of the study.

RESEARCH METHODOLOGY

TITLE:

To determine customer satisfaction for Reliance Life Insurance.

30

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the customer

satisfaction in the insurance industry with a special focus on Reliance life Insurance.

The various segments of the markets divided in terms of Insurance Needs, Age

groups , Satisfaction levels etc will also studied.

OBJECTIVE

To determine customer satisfaction on reliance life insurance

To provide the company with information of customer's Insurance policy if they have

any and reasons for opting for that particular policies.

To know the most preferred policy.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number

of new players have entered the market and are vying to gain market share in this

rapidly improving market. The study deals with Reliance in focus and the various

segments that it caters to. The study then goes on to evaluate and analyze the findings

so as to present a clear picture of trends in the Insurance sector.

SIGNIFICANCE OF THE STUDY

This is a limited study which takes into consideration the responses of 100 people. This

data can be exported to take in the trends across the industry. The significance for the

industry lies in studying these trends that emerge from the study. It is a rapidly changing

and evolving sector. People are only beginning to wake up to it’s vast possibilities. A

study like this can attempt to guide the future of the industry based on current trends.

RESEARCH DESIGN

NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

31

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

of information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were conducted

to collect the customer’s perception and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A

pilot study was done in order to know the accuracy of the Questionnaire. The final

Questionnaire was arrived only after certain important changes were done. Thus my

sampling came out to be judemental and convinent

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units.

These comprise of employees of Reliance life insurance customers.

Sample size:

The sample size was restricted to only 50, which comprised of mainly peoples from

different regions of Kaithal due to time constraints.

Sampling Area :

The area of the research was Kaithal, India.

32

DATA INTERPRETATION

1. On scale of “extremely dissatisfied” to “extremely satisfied” how

would you rate your level of satisfaction with reliance life insurance?

33

BENEFITSNO.OF

RESPONDENTSSHARE (%)

Excellent 28 55

Good 10 20

Poor 12 25

TOTAL 50 100

INTERPRETATION

55% of the respondents believe that they are reliance life insurance service is

excellent

Whereas, 20% and 25% of them believe that the reliance life insurance service

good and poor respectively

2. How likely are you to recommend reliance life insurance to a friend or

relative? Would you say the chances are

BENEFITSNO.OF


34

Excellent 28 55

Good 10 20

Poor 12 25

TOTAL 50 100

INTERPRETATION

Majority of the respondent (37%) found Larger risk coverance as the most

attracted feature of the all.

DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS

INTERPRETATION

55% of the respondents believe that they are reliance life insurance service is

excellent



3. How likely are you to repurchase products and services from reliance life insurance?

Would you say the chances are?

BENEFITSNO.OF


35

Excellent 55

Good 20

Poor 25

55%

20%

25%

Excellent Good Poor

Excellent 33 66

Good 10 20

Poor 7 14

TOTAL 50 100

INTERPRETATION

65% of the respondents believe that they repurchaseare reliance life insurance

service



4.How likely you rate the overall quality of your relationship with reliance

life insurance all of your experiences?would you say the chances are?

BENEFITSNO.OF


36

Excellent 30 60

Good 10 20

Poor 10 20

TOTAL 50 100

INTERPRETATION

60% of the respondents believe that they have excellent experience of reliance

life insurance service

Whereas, 20% ,and 20% of them believe that the reliance life insurance service

good and poor respectively.

5 How would you rate your satisfaction level in regards to customer service ?

BENEFITSNO.OF


Excellent 35 70

37

Good 7 14

Poor 8 16

TOTAL 50 100

INTERPRETATION

70% of the respondents believe that they have excellent experience of

customer service of reliance life insurance service



6.How would you rate your level of satisfaction with reliance life insurance

in regards to price?

BENEFITSNO.OF


38

Excellent 33 65

Good 12 25

Poor 5 10

TOTAL 50 100

INTERPRETATION


satisfaction in regards to price



7.How would you rate satisfaction in regards to value for money?

BENEFITSNO.OF


Excellent 28 55

39

Good 15 30

Poor 7 15

TOTAL 50 100

INTERPRETATION


satisfaction in regards to value for money



8. How would you rate your satisfaction in regards to processing system of

reliance life insurance service?

BENEFITSNO.OF


Excellent 30 60

Good 13 25

40

Poor 7 15

TOTAL 50 100

INTERPRETATION


satisfaction in regards to value for money



9.How would you rate your satisfaction level in regards to service of reliance life

insurance service?

BENEFITSNO.OF


Excellent 33 65

41

Good 15 30

Poor 2 5

TOTAL 50 100

INTERPRETATION


satisfaction in regards to service .



10 Which policy would you choose out of all reliance insurance policies. ?

A. Reliance endowment plan

B. Reliance special endowment plan

C. Reliance cash flow plan

D. Reliance child plan

42

35%

25

20

20

INTERPRETATION

35% of the respondents believe that they have excellent experience of reliance

endowment plan

25 % of the respondents believe that they will go for special endowment plan..

Whereas, 20% ,and 20% of of the respondents believe that they will choose cash

flow and child plan respectively.

11.How would you rate your satisfaction level in regards to your current policy

plan?

BENEFITSNO.OF


Excellent 38 75

Good 10 20

43

Poor 2 5

TOTAL 50 100

INTERPRETATION


satisfaction in regards to their current policy .


good and poor respectively in regards to their current policy .

44

FINDINGS

It is found the Customers are satisfy with the Reliance life insurance service.

Reliance life insurance service. Gives best satisfaction to its customers.

45

Most of the customers want Reliance life insurance service again.

It is found that life cover plan, investment plan attract customer.

46

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Kaithal and does not necessarily

shows a pattern applicable to all of Country.

47

2. Some respondents were reluctant to divulge personal information which can

affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can

change very quickly. The environmental changes are vital to be considered in order

to assimilate the findings.

48

Suggestion

According the survey only 42% people are insured in Reliance life

insurance service so reaming other part is for other insurance companies.

49

Among that 42% people who having insurance, they have insurance 40%

for self 28%for spouse 21% for children and 18% for their parents and

11% for all family member.

Only 42% people having insurance in Kaithal that 42% there are 82 %

people are under insured and other 18% people are fully insured

according to their income so that is also plus point for insurance sector to

capture the market

50

Conclusion

Our exhaustive research in the field of Life Insurance threw up some interesting trends

which can be seen in the above analysis. A general impression that we gathered during

Data collection was the immense awareness and knowledge among people about

various companies and their insurance products. People are beginning to look beyond

51

LIC for their insurance needs and are willing to trust private players with their hard

earned money.

People in general have been impression by the marketing and advertising campaigns of

insurance companies. A high penetration of print , radio and Television ad campaigns

over the years is beginning to have it’s impact now.

The general satisfaction levels among public with regards to policy and agents still

requires improvement. But therein lays the opportunity for a relative new comer like

ING. LIC has never been known for prompt service or customer oriented methods and

Reliance can build on these factors.

52

REFERENCES

1. BOOKS/ REFFERED :-

Basic Marketing – Pereaurt W.D (2nd edition), Page 450 Consumer Behaviour – Della A.J (4th edition), Page 15 Research Methodology – C.R.Kothari.

53

Marketing Research – Donald T.S (6th edition), Page 49

2. WEBSITES REFFERED :-

WWW.RELIANCELIFE.CO.IN

WWW.CIFAINSURANCE.COM

WWW.MONEYOUTLOOK.COM

WWW.INSURANCE.IND.COM

54

http://WWW.INSURANCE.IND.COM/

http://WWW.MONEYOUTLOOK.COM/

http://WWW.CIFAINSURANCE.COM/

http://www.reliancelife.co.in/

QUESTIONNAIRE

Q1. On scale of “extremely dissatisfied” to “extremely satisfied” how would you rate your level of satisfaction with reliance life insurance?

Excellent Good Poor

55

Q2. How likely are you to recommend reliance life insurance to a friend or relative? Would you say the chances are?

Excellent Good Poor

Q3. How likely are you to repurchase products and services from reliance

life insurance? Would you say the chances are?

Excellent Good Poor

Q4. How likely you rate the overall quality of your relationship with reliance life insurance all of your experiences? would you say the chances are?

Excellent Good Poor

Q5. How would you rate your satisfaction level in regards to customer

service ?

Excellent Good PoorQ6. How would you rate your level of satisfaction with reliance life

insurance in regards to price?

Excellent Good Poor

Q7. How would you rate satisfaction in regards to value for money?

Excellent Good Poor

56

Q8. How would you rate your satisfaction in regards to processing system of reliance life insurance service?

Excellent Good Poor

Q9. How would you rate your satisfaction level in regards to service of reliance life insurance service?

Excellent Good Poor

Q10. Which policy would you choose out of all reliance insurance policies?

A. Reliance endowment plan

B. Reliance special endowment plan

C. Reliance cash flow plan

D. Reliance child plan

57

A Study on Customer Satisfaction of Reliance Life Insurance

Documents

indias capital

life insurance

general insurance

reliance capital

reliance endowment

reliance life

life insurance

general insurance