Reliance Life Insurance

Contact for more project 09413991847

SUMMER TRAINING PROJECT REPORT

ON

“RELIANCE LIFE INSURANCE" Submitted to

RAJASTHAN UNIVERSITY, Jaipur In the partial fulfillment

Of the award of the degree of BBA (Bachelor of Business Administration)

Project guide:- Submitted by:- Ms. Mridula Mudgal Gauarv KhandelwalSr. Lecturer BBA Part III

Alwar Managemant Studies North extension road Alwar

1

IET Groups of institutionsPREFACE

The liberalization of the Indian insurance sector has been

the subject of much heated debate for some years. The

policy makers where in the catch 22 situation wherein for

one they wanted competition, development and growth of

this insurance sector which is extremely essential for

channeling the investments in to the infrastructure sector.

At the other end the policy makers had the fears that the

insurance premium, which are substantial, would seep out

of the country; and wanted to have a cautious approach of

opening for foreign participation in the sector.

As one of the rare occurrences the entire debate was put

on the back burner and the IRDA saw the day of the light

thanks to the maturing polity emerging consensus among

factions of different political parties. Though some changes

and some restrictive clauses as regards to the foreign

participation were included the IRDA has opened the doors

for the private entry into insurance.

2

Whether the insurer is old or new, private or public,

expanding the market will present multitude of challenges

and opportunities. But the key issues, possible trends,

opportunities and challenges that insurance sector will

have still remains under the realms of the possibilities and

speculation. What is the likely impact of opening up India’s

insurance sector?

The large scale of operations, public sector bureaucracies and cumbersome procedures hampers nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the consumer. The critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, the middle-market segment too has great potential. Since insurance is a volumes game. Therefore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped

3

ACKNOWLEDGEMENT

I would like to thank my project guide Mr. Nitin Kataria ,

Sales Development Manager RELIANCE Life Insurance,

Alwar for guiding me through my summer internship and

research project. His encouragement, time and effort are

greatly appreciated.

I would like to thank Prof. Deepak Mishra, for supporting

me during this project and providing me an opportunity to

learn outside the class room. It was a truly wonderful

learning experience.

I would like to dedicate this project to my parents. Without

their help and constant support this project would not

have been possible.

Lastly I would like to thank all the respondents who offered

their opinions and suggestions through the survey that

was conducted by me in Alwar.

Once again my gratitude to the RELIANCE Life

insurance. For their kind co-operation.

4

DECLARATION

I VIKAS KHANDELWAL OF BBA III year of “Lords

international College” hereby declare that the summer

training report entitled “INSURANCE SECTOR” IN RELIANCE

LIFE INSURACNE is an original word and the same has not

been submitted to any other institute for the award of any

other degree.

Signature of

candidate

5

Gaurav Khandelwal

EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that

insurance sector has the maximum growth and potential

as compared to the other sectors. Insurance has the

maximum growth rate of 70-80% while as FMCG sector has

maximum 12-15% of growth rate. This growth potential

attracts me to enter in this sector and RELIANCE LIFE

INSURANCE has given me the opportunity to work and get

experience in highly competitive and enhancing sector.

The success story of good market share of different

market organizations depends upon the availability of

the product and services near to the customer, which

can be distributed through a distribution channel. In

Insurance sector, distribution channel includes only

agents or agency holders of the company. If a

company like RELIANCE LIFE INSURANCE, TATA AIG,

6

MAX etc have adequate agents in the market they

can capture big market as compared to the other

companies.

Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer.

7

CHAPTER I

INDIAN INSURANCE

INDUSTRY

“AN OVERVIEW”

8

THE INSURANCE INDUSTRY IN INDIA

AN OVERVIEW

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.

9

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

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.

10

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.

11

These were subsidiaries of the General Insurance

Company (GIC).

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.

12

INDUSTRY REFORMS

Reforms in the Insurance sector were initiated with the

passage of the IRDA Bill in Parliament in December 1999.

The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing

regulations and registering the private sector insurance

companies. Since being set up as an independent

statutory body the IRDA has put in a framework of globally

compatible regulations.

The other decision taken simultaneously to provide the

supporting systems to the insurance sector and in

particular the life insurance companies was the launch of

the IRDA online service for issue and renewal of licenses to

agents. The approval of institutions for imparting training

to agents has also ensured that the insurance companies

13

would have a trained workforce of insurance agents in

place to sell their products.

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 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.

14

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. (www.wikipedia.com)

CHAPTER II

15

PROFILE OF ORGANIGATION

INTRODUCTION TO THE COMPANY

COMPANY PROFILE OF RELIANCE LIFE INSURANCE

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.

16

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

17

market was a place patronised by a small club of elite

investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large

number of first-time retail investors to participate in the

unfolding Reliance story and put their hard-earned

money in the Reliance Textile IPO, promising them, in

exchange for their trust, substantial return on their

investments. It was to be the start of one of great

stories of mutual respect and reciprocal gain in the

Indian markets.

Under Dhirubhai’s extraordinary vision and leadership,

Reliance scripted one of the greatest growth stories in

corporate history anywhere in the world, and went on to

become India’s largest private sector enterprise.

Through out this amazing journey, Dhirubhai always

kept the interests of the ordinary shareholder

uppermost in mind, in the process making millionaires

out of many of the initial investors in the Reliance stock,

18

and creating one of the world’s largest shareholder

families.

19

ABOUT RELIANCE

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 Corporates.

20

CORPORATE OBJECTIVE

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.

21

CORPORATE MISSION

“To set the standard in helping our customers manage their

financial future”.

BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY RELIANCE LIFE INSURANCE

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

22

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)

Reliance EDLI Scheme

(formerly EDLI Scheme)

12. Pensions

a. Reliance Group Gratuity Policy (formerly Group Gratuity Policy)

b. Reliance Group Superannuation Policy (formerly Group Superannuation Policy)

13. Reliance Money Guarantee Plan

23

Tax Benefits

INCOME TAX

SECTION

GROSS

ANNUAL

SALARY

HOW MUCH

TAX CAN YOU

SAVE?

HDFC STANDARD

LIFE PLANS

Sec. 80C Across All income

Slabs

Upto Rs. 33,990

saved on

investment of

Rs. 1,00,000.

All the life insurance

plans.

Sec. 80 CCC Across all income

slabs.

Upto Rs. 33,990

saved on

Investment of

Rs.1,00,000.

All the pension plans.

Sec. 80 D Across all income

slabs

Upto Rs. 3,399

saved on

Investment of

Rs. 10,000.

All the health

insurance riders

available with the

conventional plans.

TOTAL SAVINGS

POSSIBLE

Rs37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000.

Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely

tax-free, subject to the conditions laid down therein.

24

2.2 OTHER COMPETITIORS

MAJOR PLAYERS IN THE INSURANCE INDUSTRY INMAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIAINDIA

Life Insurance Corporation of India (LIC)

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,

25

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.

In 1995-96, LIC had a total income from premium and

investments of $ 5 Billion while GIC recorded a net

premium of $ 1.3 Billion. During the last 15 years, LIC's

income grew at a healthy average of 10 per cent as

against the industry's 6.7 per cent growth in the rest of

Asia (3.4 per cent in Europe, 1.4 per cent in the US).

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)

26

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.

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: -

27

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. Though LIC still holds the 75% of the insurance sector but the

upcoming natures of these private players are enough to give more

competition to LIC in the near future. LIC market share has decreased

from 95% (2002-03) to 82 %( 2004-05).

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

28

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 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

29

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.

4. Om Kotak Mahindra Life Insurance Co.

Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint

venture between Kotak Mahindra Bank Ltd. (KMBL), and

Old Mutual plc.

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

30

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life 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

31

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

32

general insurance, reinsurance, insurance claims

management and investment management.

Lombard Canada Ltd, a group company of Fairfax Financial

Holdings Limited, is one of Canada's oldest property and

casualty insurers. ICICI Lombard General Insurance

Company received regulatory approvals to commence

general insurance business in August 2001.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited

(Chola-MS) is a joint venture of the Murugappa Group &

Mitsui Sumitomo. 

33

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.

Tata AIG General Insurance Company, which started its

operations in India on January 22, 2001, offers the

complete range of insurance for automobile, home,

personal accident, travel, energy, marine, property and

casualty, as well as several specialized financial lines.

34

2.3 Reliance Policies

(1) Reliance Children Plans

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.

35

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 FeaturesInsurance cover on the life of childYour child is completely protected - we will continue to pay the premiums even if you are not aliveLife time income to child in the event of disabilityReturn Shield option to protect your investment returnsLiquidity in the form of partial withdrawalsCapital guarantee available on maturity and on death of the child for basic and top-up premiumsOption to package with Accidental Death and Total and Permanent Disablement Rider, Critical Conditions Rider and Term Life Insurance Benefit Rider.

(2)Reliance Health + Wealth Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.

36

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 FeatureA Unit Linked plan with Unique Savings ComponentTwin benefit of market linked return and health protectionChoose from two different plan optionsFlexibility to take care of your family’s healthFlexibility to switch between funds / plan optionsOption to pay Top-ups

(3) Reliance Pension Policy

37

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 fromFlexibility 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

38

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 FeaturesInsurance 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

39

CHAPTER III

OBJECTIVES OF STUDY

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

Proper understanding and analysis of life

insurance industry.

40

To know about brand awareness of Kotak Life

Insurance and customer’s preference about

Kotak 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.

Training aims at recruiting maximum number of

Life Advisors and to Sell the maximum policies

for the company and bring the business for the

company which ever is going at the particular

point of time.

As the Kotak Life Insurance well reputed

company in India it’s great chance for me to

observed different products launch by other

competitor companies like ICICI prudential, Bajaj

alliance ,LIC, Max New York life etc. In all, it is to

understand the overall working of the Life

insurance sector.

The objective behind the project is as follows:

To find the right candidate.

41

To about their family background, occupation,

social relation, Qualification, Age.

CHAPTER IV RESEARCH

METHODOLOGY

42

RESEARCH METHODOLOGY

TITLE:

To determine customer-buying behavior with a focus on market

segmentation for Reliance Life Insurance.

TITLE JUSTIFICATION :

The above title is self explanatory. The study deals mainly with

studying the buying pattern 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

Objective One

To determine reasons behind opting for an insurance.

To provide the company with information of customer's Insurance

policy if they have any and reasons for opting for that particular

policies.

43

To know the most preferred policy.

Objective Two

To determine customers perception towards private insurance

companies and their expectation form private insurance companies.

To determine the feedback on services provided by any other

insurance agent.

To study the types of benefits provided by insurance services.

To determine the use of Internet for valuable information and

decision-making process.

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 analyse the findings so as to present a clear

picture of trends in the Insurance sector.

SIGNIFICANCE OF THE STUDY

44

SIGNIFICANCE TO THE INDUSTRY :

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

people. This data can be explorated 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 rapiddly 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.

SIGNIFICANE FOR THE RESEARCHER :

To facilitate and provide all the useful informtaion of the studt, the

company, the insurance industry and also provide marketing ways,

methods of reliance life insurance.

RESEARCH DESIGN

NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL

RESEARCH

45

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

SamplingTechnique:

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 respondants who were asked to fill out questionnaires are the

sampling units. These comprise of employees of MNCs, Govt.

Employees, Self Employeds etc.

Sample size:

46

The sample size was restricted to only 100, which comprised of mainly

peoples from different regions of Delhi due to time constraints.

Sampling Area :

The area of the research was New Delhi, India.

LIMITATIONS OF THE RESEARCH

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

necessarily shows a pattern applicable to all of Country.

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.

47

MARKETING STRATREGIES OF THE COMPANY

SOME OF THE STRATEGIES ADOPTED BY RELIANCE

LIFE INSURANCE COMPANY.

Reliance Life Insurance plans to tap Reliance Communications' 2.5-crore

telephony subscriber base to market its products.

The company is considering a series of options to leverage its relationship

with Reliance Communications.

However, a joint product or a co-branded solution would require approval

from the Insurance Regulatory and Development Authority

Customers of R World, the information and entertainment portal of

Reliance Communications, would also be able to pay premiums through a

bank account, provided the bank is listed on the network.

Reliance Life Insurance officials, however, offered no comment when

asked whether there would be an arrangement for payment of commission

to Reliance Communications.

48

As an alternative channel for distribution, insurance companies usually tie

up with banks. In the case of banc assurance, where there is a corporate

agency tie-up, the commission could range from 5 per cent to 40 per cent

of first-year premium depending on the commission loaded on to the

product at the time of registration with IRDA.

49

CHAPTER V

RESULT ANALYSIS

&

INTERPRETATION

50

DATA ANALYSIS & INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANY’S NAMENO.OF RESPONDENT

SHARE (%)

L.I.C. 78 78

RELIANCE LIFE INSURANCE

3 3

ICICI PRUDENTIAL 10 10

SBI LIFE 7 7

HDFC 2 2

TOTAL 100 100

INTERPRETATION

78% of the people contacted prefer LIC policy to any other and

therefore it is ranked no.1 by that percent of respondents.

51

DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

BENEFITSNO.OF RESPONDENTS

SHARE (%)

Cover Future Uncertainty 55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

INTERPRETATION

55% of the respondents believe that covering future uncertainty

is the biggest benefit of an insurance policy.

Whereas, 20% and 25% of them believe that the other benefits

are Tax deduction and future investments respectively.

52

DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS

FEATURE NO.OF RESPONDENTS

SHARE (%)

Money Back Guarantee 15 15

Larger Risk Coverance 37 37

Easy Access to Agents 7 7

Low Premium 30 30

Company’s Reputation 11 11

TOTAL 100 100

INTERPRETATION

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

as the most attracted feature of the all.

53

DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS

POLICY TYPE NO. OF RESPONDENTS

SHARE (%)

LIFE POLICY 75 75

NON LIFE POLICY 25 25

BOTH 45 45

INTERPRETATION

75% of the respondents have Life Insurance Policy while 45% have

both. (The % is calculated out of 280 positive response)

54

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF RESPONDENTS

SHARE (%)

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

INTERPRETATION

81% of the respondents have perception of Insurance being a

saving tool.

And 74% of the respondents have perception of Insurance being a

tax saving device.

But 100% of the respondents are with the view that Insurance is a

tool to protect your family.

55

DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Yes 70 70%

No 30 30%

Total 100 100%

INTERPRETATION

56

Of the sample size of 400 surveyed respondents 70% of the

respondents are having Insurance policy.

30% of the respondents are either not having any Insurance policy

at present or their policy is already matured.

And at present 100% of the respondents are with the view that

Insurance is a tool to protect your family.

DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO. OF RESPONDENTS

SHARE (%)

Customer approached Insurance company/Agent

45 45%

Company/agent approached customer

55 555

Total 100 100%

57

INTERPRETATION

44.5% of the respondents approached the Insurance Company /

Agent.

Whereas, 55.5% of the respondents were approached by the

Company /Agent.

58

DATA SHOWS REASONS BEHIND FOR INSURANCE

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Tax saving 80 80%

Saving / Investment 80 80.%

Family protection 100 100%

INTERPRETATION

80.71% of the Respondents opted for Insurance for tax saving

benefits.

80.71% of the Respondents opted for saving / Investments.

But all of them, i.e. 100% of the respondents have opted for

insurance for their family protection.

59

DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

60% of the respondents are more or less satisfied with their

existing policy.

40% of the respondents are not satisfied with their existing policy.

In this case all of those who have taken a policy have responded.

60

DATA SHOWS SATISFACTION OF +RESPONDENTS WITH RESPECT TO

SERVICE AGENT

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

45% of the respondents are satisfied with their existing service

agent.

55% of the respondents are not satisfied with their existing

insurance agent.

61

All of those who have taken a policy have responded.

62

DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Paying tax 100 100%

Not paying tax - 0%

Total 100 100%

INTERPRETATION

Of the sample size of 400 respondents, all the respondents are

paying tax.

63

DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX SAVING

INVESTMENTS NO. OF RESPONDENTS

SHARE (%)

LIC 51 51%

NSC 33 33%

Bonds 32 32%

PPF 25 25%

PF 21 21%

EPF 11 11%

INTERPRETATION

51% of the respondents save their tax by investing in LIC, which is

the highest among all Investment. This shows that most people for

getting taxes benefits invest in LIC.

33.25% of the respondents do their tax saving by investing in NSC.

32.25% of the respondents to their tax saving by investing in

bonds.

64

DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF

INVESTMENT FOR SECURING THEIR FUTURE

NO. OF RESPONDENTS

SHARE (%)

Fixed Assets 75 75%

Bank deposits 11 11%

Jewellery 25 25%

Securities i.e. bonds, MFs 40. 40%

Shares 10 10%

Insurance 70 70%

INTERPRETATION

75.25% of the respondents as with the view that Fixed Assets is the

best form of investment for securing their future.

70.5% of the respondents are with the perception that Insurance is

the best form of investment for securing their future, which is one

65

of the highest and this shows that insurance is an important key for

securing your future.

DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR

INVESTMENT

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Saving & Returns 100 100%

Security 90 90%

Tax benefits 71. 71.%

INTERPRETATION

66

100% of the respondents intent to gain saving and returns from

their investment.

90% of the respondent’s intent to gain security from their

investments.

Whereas, 71.75% of the respondent’s intent to gain tax benefits

from their investments.

DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING

INSURANCE

RESPONSE NO. OF RESPONDENTS

SHARE (%)

After 25 years 29 29%

After 35 years 10 10%

After 45 years 0 0%

Anytime 60 60%

67

INTERPRETATION

29% of the respondents are with the view that insurance should be

bought after the age of 25 years.

10.5% of the respondents are with the view that insurance should

be buyed after the age of 35 years.

Whereas, 60.5% of the respondents are with the view that buying

of insurance do not have any thing to do with age i.e. there is no

age limitations. It can be purchased any time according to the

need.

68

DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Rigid plans 67 67%

Non user friendly 29 29%

Unsatisfactory services 26 26%

Non Aggressive 35 35%

Satisfactory 24 24%

Good 10 10%

Very good 0 0%

INTERPRETATION

67% of the respondents have the opinion that Indian Insurance

Companies have Rigid plans.

69

29.5% feel that Indian Insurance companies are Non-user friendly.

26.5% feel that services of Indian Insurance companies are

Unsatisfactory.

35.75% of the respondents are with the view that Indian Insurance

companies are Non-aggressive.

24% of the respondents feel that products and services of Indian

Insurance companies is Satisfactory.

Whereas only 10.25% feel that it is Good enough.

And according to the data, no single person has felt that it is very

good.

70

DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN INSURANCE

COMPANY

RESPONSE NO. OF RESPONDENT

S

SHARE (%)

A trusted name 82 82%

Friendly service & responsiveness

71 71%

Good plans 81 81%

Accessibility 49 49%

INTERPRETATION

82% customers look for a Trusted name in a company for

insurance.

81.5% customers look for a good plan in a company for insurance.

71

Friendly service & responsiveness and Accessibility are also

important factors looked by customers in a company.

DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Planning 87 87%

Not planning 13 13%

Total 100 100%

INTERPRETATION

Only 12.5% of the customers contacted are not planning for new

investments presently.

72

Whereas, 87.5% of the customers are still planning for new

investments this can be a great potential for Reliance Life

Insurance to take them on their favor.

73

DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A

SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE &

PRODUCTS

RESPONSE NO. OF RESPONDENTS

SHARE (%)

Yes 43 43%

No 44 44%

Uncertain 13 13%

Total 100 100%

INTERPRETATION

The interested customers i.e. 43% are ready to go for insurance even

away from a city if services and products are worthwhile, which again

is a good prospect (potential) for Reliance Life Insurance to take them

on their favor.

74

CHAPTER VI

CONCLUSION

75

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 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

76

customer oriented methods and Reliance can build on

these factors.

CHAPTER VII

SUGGESTION

77

Suggestion

According the survey only 42% people are

insured in Alwar so reaming other part is

potential for insurance sector.

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, also its very help full for insurance

sector so they should take necessary step

for capture this potential.

Only 42% people having insurance in Alwar

in 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

78

CHAPTER VIII

QUESTIONNAIRE

79

QUESTIONNAIRE

1. ARE YOU EMPLOYED?YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

80

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick)

a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______

(Specify)

6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER?

(RANK THEM)

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONS c) FUTURE INVESTMENT

d) ANY OTHER _________ (Specify)

7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

(RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

81

8. YOUR MONTHLY INCOME?

a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S SCENARIO IS NOT ESSENTIAL?

_____________________________________________________

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE

11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?

a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER 12. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED c) NOT RESPONDING

82

13. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED c) NOT RESPONDING

14 DO YOU PAY TAXES?

YES NO

15. WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM)

a) LIC

b) NSC

c) BONDS

d) PPF

e) PF

f) EPF

16.WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM)

a) FIXED ASSETS

83

b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, i.e. Bonds, MFs

e) SHARES

f) INSURANCE

84

17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY c) TAX BENIFITS

18. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs

b) AFTER 35 Yrs c) AFTER 45 Yrs

d) ANYTIME

19.HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

e) SATISFACTORY

f) GOOD

g) VERY GOOD

85

20. ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

21. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?

a) YES

b) NO

c) UNCERTAIN

THANK YOU

NAME:_________________________

ADDRESS:______________________ ______________________________OCCUPATION:___________________

86

CHAPTER IX

BIBLIOGRAPHY

BIBLIOGRAPHY

87

1. BOOKS/MAGAZINES REFFERED:

STUDY GUIDE- PRINCILES & PRACTICES OF LIFE /

GENERALINSURANCE, by AIMA.

Books published by INSURANCE INSTITUTE OF INDIA

LIFE-INSURANCE, by Mc GILL

INSURANCEWATCH.

MONEYOUTLOOK.

2. WEBSITES REFFERED:

WWW.RELIANCELIFE.CO.IN

WWW.CIFAINSURANCE.COM

WWW.MONEYOUTLOOK.COM

WWW.INSURANCE.IND.COM

3. REPORTS/ARTICLES REFFERED:

REPORT: ISSUES & CHALLENGES FACING THE INSURANCE

INDUSTRY…. Dec2005.

BRIEF PROFILE OF LIC, INDIA…Dec 2006.

REPORT: COPING WITH COMPETITION…Jan2007

88

THANK YOU

89