A Summer Training Project Report (Reliance Life Insurance)

Reliance Life InsuranceAnil Dhirubhai Ambani Group

INTRODUCTION

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.

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What is insurance

Insurers call this general insurance to differentiate it from life

assurance. It is natural to think of insurers of physical assets such

as motor car insurance of fire insurance but often we forget that

creator of all these assets is human being whose efforts have gone a

long way in building up the assets. In that sense, human life is a

unique income generating assets. Unlike the physical assets, which

decrease in value with the passage of time, the individual becomes

more experienced and more matured as he advanced in age. This

raise his earning capacity and the purpose of life insurance is to

protect the income of individual and provide financial security to

his family, which is dependent on his income in the event of his

premature death. The individual himself also needs financial

security for the old age or on his becoming permanently disabled

when his income will stop. Insurance also has an element of saving

in certain cases.

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Classification of Insurance

Uncertainty in life is certain, filled with trials and tribulations in

every aspect of life. Prediction or estimation of what the future has

in store for him is not possible. Insurance is expected to aid in

partially overcoming these vagaries of life. Insurance can never

replace or repair a loss. But the monetary value offered by

insurance helps in adjusting to the new circumstances. Despite

offering innumerable options and immense scope, insurance can be

classified into four main categories.

Insurance of Person

Insurance of Property

Insurance of Interest

Insurance of Liability

Insurance of Person:

The risk associated with human life and health, resulting from

unplanned contingencies could be covered under insurance up to the

limit specified. In the event of his death, his dependants will be

reimbursed to the full amount that he was insured for. Or if the

insured person meets with an accident or suffers from an illness that

cripples him forever, he will be compensated with the complete sum

assured anyway since he may not be able to lead a normal life again.

In case, the accident is not that severe, he should be able to recover

after medical treatment and rehabilitation. If he has opted for

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medical cover, then his medical expenses, treatment and medication

will be paid for by his insurance policy.

Insurance of Property:

Every individual would be an owner of tangible assets in the form

of land, Estate, vehicles, share holdings or plain paper money. The

tangible assets are associated with risk of fire, theft, robbery etc.

The life times’ achievements marked by these assets could be

washes off without a trace within fraction of a second. But if a

person judiciously invests in insurance for his property prior to any

unexpected contingency then he will be suitably compensated for

his loss as soon as the extent of damage is ascertained.

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Insurance of Interest:

Every individual is bound to discharge certain duties, maintain a

certain standard of conduct. But then, it is an intrinsic part of

human nature to err. No one is infallible and no one will ever be.

This trait may lead us to commission of occasional error or

omission, leading to a loss for our clients or customers. As a result,

we might have to pay them damages or compensation out of our own

personal resources. But, if our chosen profession qualifies for

insurance of interest, then our insurance policy will more than

suffice in arranging for the funds and court formalities that might

ensue in the aftermath of legal libel.

Insurance of Liability:

Every person has to regulate his actions and behaviour so as not to

cause injury or damage to other people and their property. Everyone

is personally responsible and liable for his actions. If due to lack of

control over his actions or prejudiced behaviour, a person incurs

any liability then he has to provide compensation out of his personal

resources. Liabilities: legal, civil or criminal can have severe

repercussions on social standing and prestige besides the financial

status. By investing in liability insurance, an individual can ward

off any liabilities he might incur due to his actions and behaviour.

Besides, the premiums payable on liability insurance are fairly

minimal when compared to the damages that have to be

compensated in the long run.

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Life Insurance – India

Life Insurance in India was nationalized b life Insurance

Corporation (LIC) in 1956 . All private life insurance companies at

that time were taken over by LIC.

In 1993 the Government of Republic of India appointed RN

Malhotra Committee to lay down a road map for privatization of the

life insurance sector.

While the committee submitted its report in 1994, it took another

six years before the enabling legislations was passed in the year

2000, legislation amending the Insurance act of 1938 and legislating

the Insurance Regulatory and Development Authority Act of 2000.

The ame year that the newly appointed insurance regulator –

Insurance Regulatory and Development Authority IRDA – started

issuing licenses to private life insurers.

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List of Life Insurers (as of March, 2006)

Apart from Life Insurance Corporation, the public sector life

insurer, there are 14 other private sector life insurers, most of them

joint ventures between blue blooded Indian groups and global

insurance giants.

Life Insurer in Public Sector

1. Life Insurance Corporation of India

Life Insurers in Private Sector

1. Bajaj Allianz Life

2. ICICI Prudential Life Insurance

3. HDFC Standard Life

4. Birla Sunlife

5. SBI Life Insurance

6. Kotak Old Mutual Life Insurance

7. Aviva Life Insurance

8. Reliance Life Insurance – Formarly known as AMP Sanmar

LIC

9. Tata AIG Life

10. Metlife India Life Insurance

11. ING Vysya Life Insurance

12. Max Newyork Life Insurance

13. Sahara Life insurance – Now they are not into business

14. Shriram Life Insurance

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Uses of life Inssurance

Life Insurance has many uses for both individuals and businesses.

Some common uses include:

Individual Uses

Funeral – Life Insurance proceeds can ensure that there is enough

money for proper funeral and burial expenses.

Dept – Personal bills, credit card debt, student loans, and personal

notes can be covered by life insurance in the event of an

individual’s death.

Mortgage Protection – The proceeds of a life insurance policy can

pay off the balance of a mortgage or provide an income stream to

pay monthly mortgage or rent payments.

Income Replacement – In the event of an individual’s death life

insurance proceeds can provide a supplemental income stream to

ensure that the surviving family members are able to maintain the

same standard of living.

Education – Life insurance proceeds can ensure that the education

costs of the insured’s children are covered.

Taxes – Federal estate and state inheritance taxes can be pre-funded

using life insurance to preserve the value of an estate.

Donations/Gifts – An individual can use a life insurance policy to

fund a donation to a charity or leave a gift to a family member.

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Business Uses

Key-person – A life insurance policy can be used to protect a

business from the loss of profits caused by the death of a key

employee.

Business Continuation – Life insurance can be used to fund a

buy/sell agreement or stock redemption plan to enable a partner or

group of employees to buy the business interest of a deceased

partner.

Business Loans – Life insurance protection on a key employee or

business owner can be used pay off the debts of a business in the

event of that individual’s death.

Employee Benefits – Life insurance protection for employees is

commonly included in company employee benefits plans.

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Needs for Life Insurance

Temporary needs / threats: - The original purpose of life

Insurance remains an important element, namely providing the

replacement of income on death etc.

Regular saving: - Providing for one’s family and oneself as a

medium to long term exercise. This has become more relevant

in recent times as people seek financial independence from

their family.

Investment: - Put simply, the building up of saving while

safeguard it from ravages products are trationally lump sum

investment, where the individual makes a one time payment.

Retirement: - provision for one’s own later becomes

increasingly necessary, especially in a changing cultural &

social environment one can buy a suitable policy, which will

provide periodical payment in one old age.

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BENEFITS FOM LIFE INSURANCE

It is Superior to a traditional saving vehicle.

It encourages saving and forces thrift.

It provides easy settlement & protection against creditors.

It can be encased & facilities borrowing.

Tax Relief.

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ROLE INSURANCE IN ECONOMIC DEVELOPMENT

For economic development investment are necessary. Investments

are made out of saving a life Insurance Company is a major

instrument for the mobilization of the saving of people. These

investments are channeled into the investment for economics

growth. Investments are made in the area like.

1. Road transport

2. Setting up Industrial Estate

3. Directly financing Industry

4. investment in corporate sector like

5. Share

6. Debentures

7. Term Loan

These were the areas, which directly affect the live of the people

and their economic well beings.

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HEAD OFFICE

Reliance Life Insurance Company Li

Regd. Office: The Trapezium, mited, First Floor,

#39 Nelson Manickam Road, Chennai – 600 029

Phone No: +91-44-30588200

Fax No. : +91-44-30588220

Email: [email protected]

OFFICES IN PUNJAB

Branch Manager

Reliance Life Insurance Company Limited

C/o. Reliance General Insurance Office, No. 32, 4 t h Floor, Central

Mall, Mall Road,

Amritsar, Amritsar, Punjab – 143001

Branch Manager


First Floor, Sharma Complex, Powe House Road, Bhatinda,

Bhatinda , Punjab – 151001

Branch Manager


SCO 141-142, Sector 8C (Ground Floor) Chandigarh, Punjab –

160009.

Branch Manager


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mailto:[email protected]


C/o. Reliand Business Centre, 3 rd Floor Suite No. 308/309, SCO 60-

62, Sector 17 C, Chandigarh, Chandigarh, Punjab – 160009

Branch Manager


No. 916-917, Lower Ground Floor, Nimrata Complex, Adjuscent.

WIMPY, G. T. Road, Jalandhar, Jalandhar, Punjab – 144001.

Ph: 0181-3201066

Branch Manager


Company Limited C/o. Reliance general insurance, Suryamall,

Above Ebony, 3 rd floor, Mall road, Ludhiana.

Branch Manager


Cabin No. F3, SCO 131, Chotti Baradari, Near Sandhu Furnishes,

Patiala, Patiala, Punjab – 147001

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PREMIUM PAYING OPTIONS

The life insurance policy owner may designate a specific settlement

option to be paid upon his or her death. If the policy owner does not

choose a specific option , the beneficiary (s) will be given a number

of choices These usually include:

Lump Sum Payment: The death proceeds of a life insurance policy

are paid to the beneficiary (s) for a fixed period.

Fixed Period Payments: The death proceeds of a life insurance

policy are paid to the beneficiary (s) for a fixed period.

Life Income with Installments Certain: The death proceeds of a

life insurance policy are paid to the beneficiary (s) in installment

payments through a certain period. After the certain period,

payments will continue to be made throughout the beneficiary’s

lifetime but the payment may very from the payments during the

certain period.

Interest Payments: The death proceeds of a life insurance policy

remain with the insurance company and the company pays the

beneficiary interest payments.

Fixed Installments: The death proceeds of a life insurance policy

are paid to the beneficiary (s) in fixed installments until the

proceeds and interest on the unpaid balance of the proceeds are

exhausted.

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Single Premium Annuity: The death proceeds of a life insurance

policy are used to purchase a single premium annuity from the

insurance company.

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PRODUCTS OF RELIANCE LIFE INSURACNE

Individual Plans

Reliance Endowment Plan

Reliance Special Endowment Plan

Reliance Cash Flow Plan

Reliance Child Plan

Reliance Term Plan

Reliance Whole Life Plan

Reliance Market Return Plan

Reliance Golden Years Plan

Employee Benefit Plans

Reliance Group Term Assurance Policy

Reliance EDLI Scheme

Reliance Group Gratuity Policy

Reliance Group Superannuation Policy

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Reliance Endowment Plan

Reliance Life Insurance’s Reliance Endowment Plan is the key to all

the financial needs. It is an inexpensive and easy way to protect

you, your family or your business.

In a nutshell this plan will keep you financially prepared for all the

special occasions in you life – your daughter’s wedding, your

child’s university education or even a new office for your business

– by eliminating the burden that a shortage of money creates.

In the event of your untimely death, Reliance Endowment plan will

also assist your loved ones through this difficult time by the

financial support that it provides.

Reliance Endowment Plan also gives you the additional benefit of

participating in the company’s profits, which you will receive at the

end of the policy period.

Specialty of Reliance Endowment Plan

Reliance Endowment Plan is an endowment plan, where you decide

how much you would like to set as your sum assured based on your

current financial position and your expected future expenses. You

also get to choose how long you would like your policy to operate.

Then all you need to do is pay your single premium or regular

premium for the policy term.

You may choose to pay your regular premiums yearly, half-yearly,

quarterly or monthly for the policy term.

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Working of Reliance Endowment Plan

As soon as you pay your single premium, or as long as you continue

to pay your regular premiums, your policy will participate in the

profits of our company. This means that each year, we will declare a

bonus, the amount of which may very from one year to the next. The

cash value of the bonuses which you accumulate over the policy

term will be paid to you along with the basic sum assured when it

falls due.

Eligibility

Any healthy male or female, who has completed the age of 5 years

and is not older than 65 years, can avail of this policy.

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Premium rebates for high sum assure

Premium rebate is allowed on high sum assured policy

Sum Assured Premium Rebate per

1,000 Sum

Assured

Rs. 1,00,000 – Rs. 2,49,000 Rs. 1

Rs. 2,50,000 - Rs. 4,99,000 Rs. 2

Rs. 5,00,000 - Rs. 9,99,000 Rs. 3

Rs. 10,00,000 and above Rs. 4

Additional benefits

Yes, for a marginal additional premium payment, you can opt to

have the Accidental Death & Total and Permanent Disablement

Benefit, the Critical Condition Benefit and / or Term Life Insurance

Benefit.

These riders may be attached to your policy at the beginning or at

any policy anniversary during the term of your policy, subject to

under-writing conditions prevailing at that time. Please note that

these riders are not available if you choose our single premium

plan.

Term Life Insurance Benefit Rider

If you would like to increase the sum assured payable to your family

in the unfortunate event of loss of life, all you have to do is add this

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rider to your policy. This rider will provide an additional sum

assured payable in the event of death before the rider benefit expiry

date. This rider has no maturity benefits and is available only on

policies with a basic sum assured of at least Rs. 1,00,000.

Accidental Death & Total and Permanent Disablement Benefit Rider

If the life assured becomes totally and permanently disabled or dies

due to an accident, then this rider will give you additional

protection. By selecting this rider you will safeguard yourself

against any unexpected expenditure that an accident could cause.

In case of death due to an accident, your family will receive an

additional benefit equal to the Accidental Death & Total and

Permanent Disablement sum assured that you selected.

In case of total and permanent disability of the life assured, you

will receive the Accidental Death & Total and Permanent

Disablement sum assured in 10 equal, annual installments for 10

years. Your future premiums will be waived subject to a maximum

of Rs. 40, 000 per annum. On the maturity date or on the

unfortunate death of the life assured, the remaining unpaid

installments, if any, will be paid in a lump sum. The accident cover

component will cease if the life assured is totally and permanently

disabled.

Critical Conditions Rider

The sudden onset of a major illness may cause worries and

unexpected expenditures. The optional Critical Conditions Rider

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provides financial relief in such cases. The Critical Conditions

Rider benefit is the payment of a lump sum amount chosen by you,

while purchasing the Reliance Endowment Plan as a cover against

major illnesses that can afflict you. Reliance Life Insurance’s

Critical Conditions Rider covers ten major critical conditions –

Cancer

Coronary artery by-pass graft surgery

Heart attack

Aorta surgery

Heart valve replacement

Kidney failure

Stroke

Major organ transplant

Coma

Reliance Special Endowment Plan

This insurance policy is designed for people who wish to combine

savings with extended security. The unique feature of this policy is

that life protection continues for five years after you have stopped

the payment of premium. Payment of sum assured at the end of

period paying term and extension of life cover thereafter for the full

sum assured for a period of 5 years, are characteristics of the

policy.

This plan also participates in the profits.

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Special about this policy

The special benefit under this policy is that it ensures securing a

fund for the future when it is most needed and gives much needed

financial security for the family.

The unique feature of this policy is that the risk cover continues for

the full sum assured for an extended period of 5 years even, after

payment of the full sum assured at the end of the premium paying

term.

This policy also participates in the profits. Bonus is compounded

yearly (i.e. bonus declared in the previous year earns bonus in the

next year) and is payable at the end of the policy term.

Limiting Conditions

The minimum amount for which a Reliance Special Endowment Plan

policy can be taken is Rs. 25, 000. There is also a limitation on the

minimum premium paying term which is 10 years, while the

maximum term is 40 years.

Sum assured after paying the premiums for the full duration of

the policy

The full sum assured under the policy will be paid at the end of the

premium paying term instead of waiting till the maturity of the

policy, that is, a full five years in advance. Again, at the end of the

policy term, the full bonuses will be paid.

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If the death occurs during the term of the policy

If death takes place during the term when the premiums are still

being paid, the full sum assured along with accrued bonus up to the

date of death will be paid immediately.

If death takes place after all the premiums have been paid, an

amount equal to the sum assured under the policy along with

accrued bonuses up to the date of death will be paid immediately.

This will be in addition to the sum assured already paid at the time

of completion of premium paying term.

Reliance Cash Flow Plan

This insurance policy is designed for those who have a recurring

need for reinvestment in business or look for short-term investment

channels. The advantage of the policy is that they need not part with

a sizable amount of money at any one time, but create, through

regular premium payments, a periodic return of lump sums which

become available for reinvestment at higher returns, while

providing simultaneously, substantial life cover.

Alternatively, it can be used to meet any immediate financial crisis

in the family like your son’s college admission, your daughter’s

engagement, renovation of your home or perhaps, a holiday abroad.

The money is payable in installments. The first installment is paid

at the end of the 4 t h year and thereafter at the end of every 3 rd year.

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The special benefit under this policy is that it ensures liquidity

through a periodical return of a specified amount of money, once in

every 3 years. It averts the necessity to look elsewhere for loan

facilities.

A unique feature of this policy is that the risk cover continues for

the full sum assured even though the periodical payments are being

made. This policy also participates in the profits and is eligible for

bonus.

Eligibility for this policy

Any healthy male or female, who has completed the age of 15 and is

not older than 63 can avail of this policy,.

Limiting conditions

Yes, the minimum amount for which a Reliance Cash Flow Plan

policy can be taken is Rs. 25,000. There is also a limitation on the

minimum premium paying term which is 7 years, while the

maximum term is 34 years. An important point to note is that since

periodical payments are available, it will not be necessary for you

to raise a loan. Hence, there is no provision for granting a loan

under this policy.

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Sum assured after paying the premiums for the full duration of

the policy

You receive the first payment at the end of the 4 t h year and

subsequent payments at intervals of 3 years. The entire vested bonus

is paid along with the last installment on the date of maturity of

policy.

Anything more……

Yes, there is the usual exemption from tax, under section 88

premiums paid, as per the IT Act, 1961. The money you have

invested earns interest and comes to you in the form of terminal

benefits and Bonus, without the insecurities attached to the ups and

downs of the money market.

All your policy benefits, which you receive, are exempt from tax

under Subsection 10(d) of Section 10 of the IT Act, 1961

Above all, at Reliance Life Insurance, we offer you the best of

courtesy, prompt service and a high level of financial security.

Reliance Child Plan

This insurance policy is designed for people who wish to save

money for a future time when there will be recurring need for

substantial amounts of money. This is especially true when it comes

to paying large sums of money for higher education as and when

your son or daughter is studying to become an Engineer, a Doctor or

specialize in some other field, or is perhaps planning to go abroad.

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This money is payable in equal installments over the last 4 years of

the policy term.


A unique feature of this policy is that the risk cover continues for

the full sum assured even though the periodical payments are being

made. This policy also participates in the profits for the full term of

the policy.

Eligibility for this policy

Any healthy male or female with adequate income, who has

completed the age of 20 and is not older than 60.

What else

There is the usual exemption from tax, for premiums paid, as per the

IT Act. The money you have invested earns interest and comes to

you in the from of terminal benefits and Bonus, without the

insecurities attached to the ups and downs of the money market.

Further, at Reliance Life Insurance, we offer you the best of

courtesy, prompt service and a high level of financial security.

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OBJECTIVES OF THE STUDY

Following are the main objectives of the study are –

a) To know the customers awareness regarding the Life

insurance.

b) To know the Customer awareness regarding the various life

Insurance Companies in the Insurance Sector.

c) To know the Customer preference towards the private or

public Insurance Sector. People comes to know about Reliance

Life Insurance Company through Print Media.

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RESEARCH METHODOLOGY

Introduction and Meaning

Research is a careful investigation or inquiry especially through

search for new facts in branch of knowledge: market research

specifies the information. Required to address these issues: designs

the method for collecting information: manage and implements the

data collection process analyses the results and communicates the

finding and the implications. Research problem is the one which

requires a researcher to find out the best solution for the given

problem that is to find out the course of action, the action the

objectives can be obtained optimally in the context of a given

environment.

Techniques

The problem definition can be said to be the quite essential part of

the research process; as it determine precisely. What the managerial

problem is and the type of information that the research can

generate to help the problem before conducting the fieldwork. It is

better to decide upon the method/technique of data collection.

Generally, there are two technique of data collection are:

1. Census Technique 2. Sample Technique or Convenient

sampling

The census method is costlier and more time Consuming as

Compared to sampling method but the result is near

representatives.

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RESEARCH METHODS

Research is literally everywhere, and knowing about research

methods will help us understand how we came to know what we

accept as fact. We all know that 4 out of 5 dentists recommend

sugarless gum for their patients who chew gum, and that taste-tests

show that Burger King’s Croissanwich is preferred 2 to lover

McDonald’s Egg McMuffin. We also know that proper nutrition is

important for children’s development, and that heroin is addictive.

The question is: How did we come to know these things ?

We learned about these things through research. Someone

somewhere did a study and found each of the above findings. While

most of us accept the value of good nutrition for children and the

dangers of heroin, at least some of us (especially

Certs Sugarless Mint and Egg McMuffin fans) would quibble with

the other two findings. Just how did the researchers do the studies

that found those numbers (by the way, get in the habit of

questioning how researchers find their, even those you agree with)?

Who knows, maybe they did the Croissanwich study at Burger King

one morning and asked people which sandwich they preferred. The

fact that the participants had already gone to Burger King for

breakfast meant that they had at least some tolerance for

Croisanwiches. What about the dentists ?

What percentage of them “recommended” candies of any kind ?

Which dentists participated in the study and what exactly do they

prefer about sugarless gum over sugarless mints ?

When we ask questions like these, we are questioning the methods

the researchers employed in their studies. Research methods are a

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variety of techniques that people use when studying a given

phenomenon. They are planned, scientific, and value-neutral., What

that means is that good research methods don’t “just happen.”

Instead, they are deliberately employed in a way that is designed to

maximize the accuracy of the results. Assume, for example, that you

want to do a survey to Asses students’ level of satisfaction with the

parking situation on your campus. Because no one wants to take

time to be interviewed, you are forced to start interviewing the

people sitting in their cars waiting for parking places. Since they’re

bored anyway and have nothing better to do, they agree to answer

your questions. Lo and behold, you find that all 50 people you talk

to are VERY unhappy about the lack of parking spaces on campus.

A better way for you to do your survey would be to randomly select

names from a list of all enrolled students (there will be more on

random samples in a later section). You could ask them what they

think about the parking situation. Because your sample was

randomly selected, you would expect their answers to reflect what

students as a whole felt about the parking situation. The use of

random samples is just one way that researchers try to ensure that

the answers they find are accurate.

Common errors made in research

When we do research, we can make many errors. Some of them

occur often enough to have names. Here are nine common ones

Selective observation

Inaccurate observation

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Selective observation

Selective observation happens when our attention is drawn to

answers or observations that confirm our pre-existing beliefs. It’s a

lot like selective hearing (i.e., when people, especially children,

hear only the things they want to hear). For example, if I

hypothesize that blacks are more likely than whites to speed, I am

probably likely to not the blanks who are speeding while paying less

attention to speeding whites and blacks who are not speeding. A

better approach to this study would be to write down the speed of

every car going by and the race of the driver. I could then make

tables and compare the percentages of speeding drivers of each race.

Chances are that I’ll find that race isn’t related to one’s likelihood

of speeding. A few ways you can try to avoid selective observation

in your research are to do a literature

Review (so you’ll know which relationship other researchers found),

decide your research approach beforehand (e.g., when I decided

above to write down the speed of every car rather than just depend

on my memory), take thorough notes (to prevent biases from

affecting you memory), watch for “disconfirm Tory” information

(such as speeding whites and non-speeding blacks), and consider

both “sides” of your study (i.e., try to argue against you hypothesis;

if you can’t poke holes in your theory then you’re more likely to be

on the mark). You could also use time or area sampling. Time or

area sampling means that you focus your attention on a smaller part

of the action for a given amount of time. Instead of trying to watch

the entire crowd at a basketball game, for example, I could look at

the rightmost four columns of people for ten minutes, then the next

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four columns for ten minutes, and so on. By doing this, I would be

able to get a picture of what the shole crowd was doing. And, most

importantly for selective observation, I would be forced to look at

all parts of the crowd at some point time, rather than just those who

were doing what I expected them to do.

Inaccurate observation

Inaccurate observation happens when we “misremember” or

misreport data. How many times have you missed a question on an

exam because you incorrectly copied down something from lecture?

That’s one form of inaccurate observation. You thought you

correctly observed the information when you really hadn’t done so.

Have you ever misunderstood what someone said, and thought s/he

said something that rhymed with his/her actual utterances? That’s

another form of inaccurate observation. Your brain somehow

miscoded the information at the processing stage. Inability to

remember what you saw is another form. Your brain somehow

jumbles or changes the original memory during the recall stage.

Observations before actually doing it for real. Practice will make it

easier to quickly and accurately record or summarize a given

situation, and will show you the parts of the task about which you

are less clear.

Methodology Adopted

The methodology adopted by me studding the objectives was

surveying the working segment in the city of Distt. Kapurthala So

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keeping in view the nature of requirement of study to collect all the

relevant information regarding the privatization of the insurance

sector direct personal interview’ method with structured

questionnaire method was found to be the best for the collection of

primary data. For this a set of questionnaire was designed for the

working segment. The survey was conducted. Although this method

was difficult and required the researcher to visit and meet the

respondents at different places and at different times, but had the

advantage of higher accuracy.

Secondary data has been collected through the various magazines,

books and by surfing on Internet. And the guide in the organization

was consulted at many times.

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DATA ANALYSIS

Keeping in mind the objectives of the study, the survey was being

done and following interpretation were being drawn.

1. Have you heard about Privatization in Life Insurance

Sector ?

Objective :- To know the awareness of Privatization in insurance

sector, this question is asked. As there are a number of private

insurance companies, which provide a variety of products and

services as compared to, nationalized insurance companies.

Awareness of Privatization in Insurance sector

Interpretation

The evident from above finding showed that out of 100 respondents,

78 respondents are aware of private companies present in the

insurance sector and rest of the respondents i.e., 22 is not aware of

private insurance companies.

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2. Have you heard about Private Insurance Company Reliance

life insurance?

Objective :- To know the awareness of customer regarding.

Reliance life insurance.

4.2 Awareness of Customer Regarding. Reliance life insurance.

Interpretation

The above figure depicts that out of 100 respondents, 75

respondents are aware Reliance life insurance and rests of the

respondent’s i.e., 15 are not aware of Reliance life insurance.

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3. From where did you come to know about Reliance Life

Insurance ?

Objective :- To know the media, which helps in promotion of

Reliance Life Insurance. As we know in the present era media

plays an important role in the promotion of companies.

4.3 Role of Media in the Promotion of Reliance Life Insurance

Interpretation

According to above data Electronic Media plays a vital role in

the promotion of Reliance Life Insurance. As 56 of the

respondents are aware through Electronic Media, 20 through

Agents, 10 through Print Media and 14 through other like friends

and relatives.

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4. Do you think services provided by Private Sector will be

better than Public Sector companies ?

Objective :- To know the priority given by customer to the

private sector over public sector. As we know that more and more

customers are moving towards private sector because of better

facilities and services provided by private sector.

4.4 Priority of Private sector over the public sector.

Interpretation

The above figure depicts that 68 of the total respondents agree that

private sector was providing better services as compared to the

public sector.

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5. Do you have Insurance Policy ?

Objective :- To know the number of persons who presently have

life insurance policy. As most of the persons are very muh

concerned about their family and life so cover the risk by an

insurance policy.

4.5 No. of persons having insurance policy

Interpretation

The above evident shows that as most of 62 of the total respondents

have insurance policy to cover the risk of the life and tax. This

shows that most peoples are interested in buying insurance policy.

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6. With which company do you have Insurance Policy ?

Objective :- To known the number of customers dealing with

different insurance companies. As the there are a number of

companies providing different products.

4.6 No. of customers dealing with different insurance

companies.

Interpretation

The above evident shows that out of the total respondents 62

dealing with LIC, which is a public sector insurance company, 18

respondents were dealing with ICICI Pru and HDFC Std. Life

respectively, 03 respondents are dealing with Reliance Insurance

company.

40


7. What according to you are the motives of buying Life

Insurance Policy?

Objective :- To know the motive of buying insurance policy.

There is always a reason to buy life insurance policy as it

protects the insurer from different aspects even after death.

Interpretation

As the above figure showed that most of the respondents buy

insurance policy for the purpose of saving tax, 42 respondents are in

favour of this, 22 respondents gave preference to secure investment,

30 and 06 are with life cover and liquidity respectively.

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8. Do you have any plan to buy Insurance Policy in near

future ?

Objective :- To know the customer preference to buy insurance

policy in near future.

4.8 Preference to buy insurance policy in future

Interpretation

As the above figure depicts that mostly respondents are interested

to buy insurance policy in the future. 40 of the total respondents

are in favour of this and rest 42 respondents want any insurance.

9. If you have any plan to buy an Insurance Policy,

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Which policy would you prefect?

Objective: - To knows the customer preference regarding various

insurance plans provided by the insurance companies.

4.9 Preference regarding various insurance plans

Interpretation

As the above evident shows that as most as 32 of the total

respondents prefer to invest in endowment plan, 26 prefer to have

child plan, 24 prefer to Spl. Endowment Plan and rest 18 cash

flow plan.

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10. If you are not taking any insurance policy, please tell us

the reasons why?

Objective: - To know the reasons not to buy any insurance plan

by the respondents.

4.10 Reasons not to buy any insurance plan

Interpretation

As the evident shows that as most as 35 of the total respondents

don’t understand the working of the insurance system and nearly

24 of the respondents don’t see any benefit with the system, 15

and 26 of the respondents don’t want insurance and could not

afford respectively.

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FINDINGS OF THE STUDY

a) Life insurance has becomes generic now. People believe in

Life Insurance Company only and therefore, everybody

wants to go in for a policy with LIC. It will take a lot of

time, to private companies to win the confidence of the

people.

b) As far as future decision making about the policy is

concerned most of the policy would go in for saving plan.

c) It is a service class, which has maximum number of LIC and

private sector policies. As far as future decision-making is

concerned most of the service class prefers to protection

plan

d) LIC is the oldest player in the Insurance market, so people

are more aware of i.e., as compared to new players.

e) This clearly comes out of the survey conducted that most of

the people comes to know about Reliance life Insurance

company through print media.

f) It has clearly comes out that most of the people like to go in

for a policy, which gives them tax.

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LIMITATIONS OF STUDY

All efforts have been made to make study a complete and

comprehensive survey of the customer perception. Although all

efforts have been made so that the study present a true picture of the

customers’ perception. The limitations of the study are :-

1) Time Factor :-

Time available was very short.

2) Fake Information’s :-

The information’s provided by the customers may be fake,

for example customer of Reliance Life Insurance may be

shown interest in ICICI Prudential.

3) Limited Survey :-

As the project was limited to Ludhiana only, therefore

overall picture can’t be presented.

4) Randomly Survey :-

The customers of LIC, ICICI and RELIANCE LIFE

INSURANCE were randomly selected without any

constrains.

5) Area :-

Area of study chosen was not large.

CONCLUSION

46


Reliance Life insurance is one of the largest life insurance

Companies in the world with Insurance and Investment funds

exceeding Rs. 11,00,000 Crore Reliance Life Insurance is the

challenge against the other Insurance Companies in the 21 s t century

with the emerging hope and aspiration. Reliance Life insurance is a

bless to the maintain which has awakened many new hopes and

aspiration for human kind a vision of a new, just equitable and fair

global order governed by a time tested value system based on a

noble human passion of law, compassion tolerance and mutual

understanding.

Globalization has opened new formalities of technology

knowledge communication and information Reliance Life insurance

is a gift of globalization for the maintain development of these

formalities there before is a daunting challenge i.e. the utilization of

these facilities to create a brave new worlds in which a qualitative

and a clear change between yesterdays and hormones can easily

perceived.

I have done a detailed the comparative study of Reliance Life

insurance with LIC as well as other private companies and

concluded that most of the people proffered to deal with

nationalization insurance companies.

About the awareness regarding the products offered regarding

by Reliance Life insurance, I conduced that most of the people are

but they still needs more publicity among the citizens of the city.

47


Reliance Life insurance has set all the strategies and mission after

proper vision and is achieving the largest by working in co-

operative and co-ordinate manner and giving the people full

services and facilities and making easy. So I would like to

conducted by saying that Reliance Life insurance is a wonderful gift

given to the mankind in the new are for people development and

maintenance of the world as well as India.

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QUESTIONNAIRE

1. Have you heard about privatization in Life Insurance sector ?

a) Yes b) No

2. Have you heard about Private Insurance Company Reliance

Life Insurance ?

a) Yes b) No

3. From where did you come to know about Reliance Life

Insurance ?

a) Electronic Media b) Print Media

c) Agents d) Others

4. Do you think services provided by Private sector will be better

than Public

Sector companies ?

a) Yes b) No

If yes, Remarks___________________________________________

If no, Why_______________________________________________

5. Do you have Insurance Policy ?

a) Yes b) No

6. With which company do you have Insurance Policy ?

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7. What according to you are motives of buying Life Insurance

Policy ?

a) Tax Saving b) Life cover

c) Liquidity d) Secure Investment

8. Do you have any plan to buy Insurance Policy in near future ?

a) Yes b) No

9. If you have any plan to buy an Insurance Policy, which Policy

would you prefer ?

a) Saving Plan b) Protection Plan

c) Pension Plan d) Children’s Plan

10. If you are not taking any Insurance Policy, please tell us the

reason’s why ?

a) We could not afford

b) We don’t see any benefit with the system

c) We don’t want insurance

d) We don’t understand how system works

BACKGROUND DATA

1. Name__________________________

2. Sex : a) Male b) Female

3. Age : a) Below 18 b) 18-35

c) 35-50 d) Above 50

4. Education :

4. Education :

a) Under Graduate b) Profession

c) Business d) Others

5. Occupation:

a) Service b) Profession

c) Business d) Others

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6. Income:

a) Less than Rs. 50,000

b) Rs. 50,000 to Rs. 1,50,000

c) Rs. 1,50,000 to 3,00,000

d) Rs. 3,00,000 & above

7. Address________________________ __________________

_________________________________________

8. Phone No. ____________________________________

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A Summer Training Project Report (Reliance Life Insurance)

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