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APROJECT REPORT
ON
“A STUDY ON CUSTOMER PERCEPTION ABOUT LIFE INSURANCE”
SUBMITTED TOPt.Ravishankar Shukla University, Raipur (C.G.)In partial fulfillment for the degree course of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
FOR THE ACADEMIC SESSION2013
Guided by: Submitted by: Ms Sarita Dubey Naresh Kumar Sahu Asst. Professor BBA VI SemDepartment of Management Roll No-1121035 MAIC, RAIPUR
Department Of Management
MAHARAJA AGRASEN INTERNATIONAL COLLEGESamta colony, Raipur (C.G.)
APROJECT REPORT
ON
“A STUDY ON CUSTOMER PERCEPTION ABOUT LIFE INSURANCE”
SUBMITTED TOPt.Ravishankar Shukla University, Raipur (C.G.)In partial fulfillment for the degree course of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
FOR THE ACADEMIC SESSION2013
Guided by: Submitted by:Mrs Suchitra Rathi Naresh Kumar Sahu
HEAD BBA VI SemDepartment of Management Roll No-1121035 MAIC, RAIPUR
Department Of ManagementMAHARAJA AGRASEN INTERNATIONAL COLLEGE
Samta colony, Raipur (C.G.)
Certificate
This is to certify that the Project Work entitled “A study on customer perception about life insurance” submitted by Naresh Kumar Sahu for the partial fulfillment of
Degree of Bachelor of Business Administration from Pt. Ravishankar Shukla University,
Raipur (C.G.) is an authentic work performed by the Student.
This work has been submitted for the sole purpose of academic interest.
Internal Examiner External Examiner
Certificate
This is to certify that Mr. Naresh Kumar Sahu a bonafide student of Maharaja Agrasen
International College, Raipur (C.G.) studying in B.B.A VI Semester has successfully
completed his project entitled “A study on customer perception about life insurance”.
I wish him all success in every endeavor of life.
Sarita Dubey Suchitra Rathi Dr.Samir Thakur
Project Guide Head Principal
Department of Management MAIC
MAIC
Declaration
I, Mr. Naresh Kumar Sahu hereby declare that this report is the record of authentic work
carried out by me during the academic year 2013 in Reliance Life Insurance at Ashoka
Millennium Ring Road Raipur branch.
Naresh Kumar Sahu
ACKNOWLEDGEMENT
An internship report is a result not only of the student who prepared it, but also the
combine effort of the faculty guide, staffs and members of the institute where the project
is done and most importantly the advisor who gives the final touch. On the successful
completion of my internship, I would like to express my heartfelt gratitude to the people
without whose help and kind co-operation this work would not have been possible.
The compilation of the project is a milestone in the life of the management student and
its execution is inevitable with the co-operation of the project guide. I wish to record a
deep sense of respect and gratitude to my project guide, Ms Sarita Dubey for her
encouragement to course of my work. It is due to the enduring effort and guidance of
my guide that ultimately made it success.
I also take this opportunity to express my deep regards and gratitude to the Business
Manager D.K.Sen.
I have deep admiration for my teachers at for nurturing my interest in the subject. Their
dedication has instilled my faith in academics and has continued to inspire me.
Last but not the least love, care and support of parents, sibling and friends is indeed
valuable.
Finally, I thank to one and all, who helped me directly or indirectly in completing the
internship.
Naresh Kumar Sahu
INDEX
Chapter No.
Particulars Page No.
1 Introduction 1-2
2 Company Profile 3-5
3 Review of Literature 6-7
4 Research Methodology 8-10
5 Data analysis and Interpretation 11-21
6 Findings 22-23
7 Suggestion 24-26
8 Conclusion 27-28
9 Limitation 29-30
Bibliography 31-32
Appendices 33-35
CHAPTER 1
INTRODUCTION
Introduction: Insurance is a legal contact that protects people from the financial
costs those results from loss of life, loss of health, lawsuits, or property damage.
Insurance provides a means for individual and society to cope up with some
of the risks faced in everyday life by everybody. People purchase contracts of
insurance, called a policy, from various insurance companies. A lmos t every person
ex is t ing in th i s wor ld i s assoc ia ted w i th insurance, d i rec t l y
o r indirectly. Directly, in the sense that he / she has insured his/her life by some kind of
insurance policy from any company. Indirectly, in the sense they must have
insured the assets of their won for example their house, car, or anything else.
Life is full of risk and uncertainties. Since we are the social human
being we have certain responsibilities too. Indian consumers have big influence of
emotions and rationality on their buying decisions. They believe in future rather than the
present and desire to have a better and secured future, in this direction life
insurance services have its own value in terms of minimizing risk and uncertainties.
Indian economy is developing and having huge middle class societal status and salaried
persons. Their money value for current needs and future desires here the pendulum
moves to another side which generate the reasons behind holding a policy.
Here the attempt has been made in this research paper to study the perception of
consumers towards life insurance. Life insurance is one of the best known insurance
products today. People buy these products as investment tools and also as protection
for themselves and their families. All the insurance companies the world over are
looking at attracting the eye balls of customer and positioning their solutions
innovatively to cater to niche and specific markets. One of the most critical aspects both
from the view point of the customer and the insurer is getting important and relevant
leads that can be beneficial for both.
CHAPTER 2
COMPANY PROFILE
Company Profile:
ABOUT RELIANCE LIFE INSURANCE
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 steps forward for Reliance Capital
Limited to offer need based Life Insurance solutions to individuals and
Corporate.
BRANCHES
They have so many branches and substations in the India. They have
around 160 branches in the India. And they have planned to open more branches
across the country in the coming months.
HISTORY
Reliance Capital Limited announced the launch of its life insurance
business on February 1, 2006. This was after obtaining the required regulatory
approvals from the Registrar Of Companies and the Insurance Regulatory and
Development Authority.
It was in August 2005 that the ball was set rolling when
Reliance Capital Limited, the financial arm of Reliance – Anil Dhirubhai Ambani Group
(ADAG) – announced the requisition of 100% shareholding in AMP Sanmar Life
Insurance Company Limited; and the formal transfer of shares took place in October
2005. The company will issue all policy contracts under the Reliance Life Insurance
Company limited name. All the existing policy contracts also stand transferred to the
Reliance Life Insurance entity with all the original contractual terms and commitments
intact.
MISSION
The mission of Reliance Life Insurance Company Limited is to be the best
in every sphere- business results, customer care and employee focus. The aim of the
company is to Think Bigger and Think Better.
HEAD – OFFICE
Reliance Life Insurance Company Limited,
The Trapezium,
39, First Floor,
Nelson Manickam Road,
Chennai – 600 029.
CHAPTER 3
REVIEW OF LITERATURE
Review of Literature: India is a country where the average selling of Life insurance
policies is still lower than many Western and Asian countries, with the second largest
population in world the Indian insurance market is looking very prospective to many
multinational and Indian insurance companies for expanding their business and market
share. Before the opening of Indian market for Multinational Insurance Companies, Life
Insurance Corporation (LIC) was the only company which dealt in Life Insurance and
after opening of this sector to other private companies, all the world leaders of life
insurance have started their operation in India. With their world market experience and
network, these companies have offered many good schemes to lure all type of Indian
consumers but unfortunately failed to get the major share of market. Still the LIC is the
biggest player in the life insurance market with approx 65% market share. But why
Indian consumers do not trust on many companies and why the major population of
India does not have any life insurance policy or what are the factors plays major role in
buying behaviour of consumers towards life insurance policies. Insurance constitutes
one of the major segments of the financial market.
Insurance services play predominant role in the process of financial intermediary.
Today insurance industry is one of the most growing sectors in India. There is lot of
potential in the Indian Insurance Industry. There are many issues, which require study.
The scope of the study of insurance industry of India would be very great as there are
ongoing developments in the industry after the opening of the sector.
Right now the insurance industry
has great opportunities in a country like India or China which huge population. Also the
penetration of insurance in India is very low in both life and non-life segment so there is
lot potential to be tapped.
CHAPTER 4
RESEARCH METHODOLOGY
Objective 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 customers awareness regarding the various life insurance
companies in the insurance sector.
c) To know the customers preference towards the private or public insurance sector.
d) To know the different promotion strategy used by companies to aware their
customers.
e) To evaluate the factors underlying consumer perception towards investment in life
insurance policies.
f) To develop and standardize a measure to evaluate investment pattern in life
insurance services.
SAMPLING METHOD AND SAMPLE SIZE
Introduction:- Any organization whether big or small, private or public need different
types of information are to know its popularity. The researcher have gathered secondary
data and primary data and collected information from the combination of these two data.
Research approaches:-
Research is basically of two types-
1) Exploratory.
2) Conclusive.
Conclusive Research:-My research is a conclusive type of research which includes:-
Primary data: - The researcher have taken great care while collecting primary
data to answer that it is relevant, accurate, current and unbiased. I have taken a
sample of 100 people. I have visited them personally to get data.
Secondary data: - Secondary data consist of information that already exists
somewhere, having been collected for another purpose. The researcher have gathered
secondary data from website of different operators, different magazines, newspapers
and libraries.
Sample size: - I have taken sample size of 100 respondents. Because the
population is too large so it is difficult to survey.
ANALYSIS OF QUESTIONNAIRE Here I have formed a questionnaire to
study why people go for life insurance. What is people’s major motive behind investing
in life insurance? Do they decide upon their own or they take guidance of an agent?
What is their perception about Reliance Life Insurance Company Limited?
Target Population:- I had conducted this survey among 100 people, and the
target group was a mix of people from the society. I asked the questions to Doctors,
Professionals, Professors, Advocates, Engineers, and general public.
CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
Data Analysis:
1. Do you aware with life insurance?
Particulars No. of Respondents
YES 99
NO 1
YESNO
Interpretation 1: According to the data maximum no. of people are aware with life
insurance policy (here 99% people are aware with it). Today Indians are aware with this
investment because it covers risk of the life as well as gives better return on maturity.
2. What is your purpose for buying an insurance policy?
Particulars No. of Respondents
Risk cover 51
Saving 14
Tax benefit 21
Return/Yield 14
Risk coverSavingTax benefitReturn
Interpretation 2:
There could be any motive of people behind investing in a life insurance policy. The
main purpose of life insurance is the Risk cover of one’s life.
But some people consider different advantages of a life insurance policy.
3. When you are buying an insurance policy, your decision is influenced by?
Particulars No. of Respondents
Family 37
Friends 30
Professionals and insurance agent 14
Brand and advertisement 19
Family Friends Professionals Brand & advertisement0
5
10
15
20
25
30
35
40
Interpretation 3:
Insurance is now basic investment for consumers. But this is tradition of India that we
do not believe on unknown people so when any one buy insurance policy then his or
her decision is depend on family, friends and on other factors. In the study i found that
37% of respondents believe on their family to buy insurance policy but only 19%
respondents decision depend on brand and advertisement of the company. So, a/c to
study, we see that family and friends play a big role to buy an insurance policy.
4. In which company you believe most?
Company No. of Respondents
Private Company 29
Public Company 71
Private companyPublic company
Interpretation 4:
Most of the people want to invest their money in public insurance company. In private
insurance company only 29 respondents want to invest their money. Most of the people
buy insurance from LIC and there are more than 20 private insurance companies in
India.
5. How do you want to pay your premium?
Mode No. of Respondents
Cash 35
Online Payment 38
Cheque or demand draft 27
Cash Online payment Cheque or demand draft0
5
10
15
20
25
30
35
40
Interpretation5 :
Most of the respondents (i.e. 38) pay their premium through online because of easiness
and convenience. 35 respondents pay their premium through cash and 27 of them pay
their premium through demand draft.
6. In what mode you want to give premium?
Mode No. of Respondents
Monthly 27
Half Yearly 40Yearly 33
Mode of premium
MonthlyHalf yearlyYearly
Interpretation 6 :
Insurance companies give a lot of facility to their loyal customers for payment of
premium. Costumer also pays the premium in three modes monthly, half yearly and
yearly. Here 40 % respondents pay in half yearly mode and 33% respondents pay
yearly mode premium.
7. Are you satisfied with the return on investment which you getting from policy?
Satisfaction level No. of respondents Percentage of respondents
Very Satisfied 21 21%
Satisfied 60 60%
Can't say 4 4%
Not much satisfied 4 4%
Dissatisfied 11 11%
Very Satisfied Satisfied Can't say Not much satisfied Dissatisfied0
10
20
30
40
50
60
70
Interpretation7 :
A/c to data, 60% of respondent are satisfied with the return. About 21% are very
satisfied on their investment’s return and 11% are dissatisfied with return on investment.
8. If you are not taking any insurance policy then please tell us the reason, why?
Reasons No. of
respondents
Category
We could not afford. 26 1
We don't see any benefit with it. 24 2
We don't want insurance. 15 3
I don't understand that how it
works?
35 4
Category 1 Category 2 Category 3 Category 40
5
10
15
20
25
30
Interpretation 8:
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.
9. Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy?
LICRLI
Interpretation9:
This is the most important question as it reflects the scope of the study. It is the main
theme of this questionnaire.
Reliance Life Insurance Company Limited is newly launched company. So it has fewer
customers as compared to LIC.
But the ULIP plans are sold more of Reliance life insurance as compared to LIC in
today’s environment.
Particulars No. of respondents
Reliance Life Insurance 30
LIC 70
10. Do you think that insurance policy is necessity of today's life?
Yes No0
102030405060708090
100
Interpretation10:
Life is full of risk and uncertainties. Since we are the social human being we have certain responsibilities too. This is why maximum respondents think that life insurance is necessity of today’s life for securing there family.
Particulars No. of respondents
Yes 92
No 8
CHAPTER 6
FINDINGS
Findings:
1. Now life insurance has become generic. People believe in Life Insurance Company
only and therefore, everybody wants to go in for a policy with LIC. It will take time to
private companies to win the confidence of the people.
2. As far as future decision making about the policy is concerned most of the policy
would go in for saving plan.
3. People are turning towards the ULIP as a good investment option but ULIP is in its
starting phase so customers prefer only big brands LIC, RLIC etc.
4. LIC is the oldest player in the Insurance market, so people are more aware of i.e., as
compared to new players.
5. This clearly comes out from the survey conducted that most of the people come to
know about Reliance life Insurance company through electronic media.
6. It has clearly come out that most of the people like to go in for a policy, which gives
them tax benefit.
7. A/c to survey it is cleared that most of the people don't take insurance policy because
they don't understand that how insurance policy works?
8. Most of People influenced by family and friends when they are buying insurance
policies.
CHAPTER 7
SUGGESTION
Suggestion:
Followings are the recommendations and the suggestions not only for the Reliance life
insurance company but also for other private life insurance companies if they want to
compete with public/government life insurance companies.
1. Creating positive image: Private companies should try their level best to create positive and favourable image in
the minds of people i.e. in the minds of their target customers.
2. Training and development to agents: Company must provide training to their agents and financial so that they can satisfy
customer and doubts effectively.
3. Concern towards customers: Serious concern must be given to the customers as in today's scenario it regarded as
“Customer is a king”. In formal words we can say that if can customers more loyal
towards the company.
4. Co-operation with agents and branch managers: The Company must full co-operate with branch managers and agents.
5. Availability of branch offices: There must be the branch offices in each 20-30 Km. diameter.
6. Efficient management: The management appointed must be that much capable that it can control the whole
team and improve the goodwill and image of the company.
7. Sales promotion and marketing: The marketing department must be so aggressive that it can have a close watch on the
competitor’s activities. Not only this but also it must take care of the need and wants of
the customers also.
8. Incentive schemes and permanency in job: There must be good incentive schemes to be designed as these can acts as good
motivators for the agents. The scheme of permanent job placement must be introduce
for those agents who have shown extra ordinary performance.
9. Solution of Grievances: There must regular meetings with the financial consultants and agents to motivate them
and to solve grievances if there are any.
CHAPTER 8
CONCLUSION
Conclusion:
Reliance Life insurance is one of the largest private life insurance company and it has
awakened many new hopes and aspiration for human kind, just 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 to 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 other life insurance companies and concluded that most of
the people preferred to deal with nationalized insurance companies.
People used to buy Insurance for tax exemption but time has changed now, advertising
has made the people understand the need of Life Insurance in their lives and people are
taking initiatives to buy it. Urge of people to have Insurance and strong marketing can
really make the industry reach the sky.
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.
CHAPTER 9
LIMITATION
Limitations:
Although every effort has been in to collect the relevant information through the sources
available, still some relevant information could not be gathered.
Busy Schedule of Concerned Executives: The concerned executives were having very busy schedule because of which they were
reluctant to give appointment.
Time: The time duration could not provide ample opportunity to study every detail of the
company.
Unawareness: Customers were unaware of many terms related to same while asking to them.
Confidential Information: As the company on account of confidential report has not disclosed some figures.
Moreover, in some cases separate accounts of division are not separately maintained
thereby, leading to restrictions in study.
Area: Area of study chosen was not large.
BIBLIOGRAPHY
Bibliography:
Books Referred:
Kotler Philip;(2007) Marketing Management (2007),Marketing Management, 12 th edition.
Kothari C.R.;(2004) Research Methdology, 7th edition.
Internet Resources
Websites of the organization www.reliancelife.com
Other sites www.policybazar.com, www.irdaindia.gov ,
APPENDICES
QUESTIONNAIRES
“A STUDY ON CUSTOMER PERCEPTION ABOUT LIFE INSURANCE”
Dear sir/ madam,
The project study on entitled topic the customer perception about life
insurance.Please give me valuable information for Reliance Life so that I can use it for
my project purpose. Your informtion will be kept confidential and will be used only for
academic purpose.
Thanking You
Naresh Kumar Sahu
BBA VIth SEM.
Please tick (√) out for appropriate option.
(A) Personal Information:
............................................................................................................................................
a. Name: ...................................................................................
b. Gender: a) Male b) Female
c. Age (in years) a) Below 18 b)18-35
c) 35-50 d) Above 50
d. Educational qualification: .......................................................
e. Occupation: .............................................................................
(B) Questions: ............................................................................................................................................1. Do you aware with Life Insurance?
a) Yes b) No
2. What is the purpose for buying insurance Policy?
a)Risk cover b) Tax benefit
c) Saving d) Return/Yield
3. When you are buying an insurance policy then your decision influenced by?
a) Family b) Friends
c) Professional/Agent d) Brand & Advertisement
4. On which company do you believe most?
a) Private insurance company
b) Public insurance company
5. How do you want to pay your premium?
a) Cash
b) Online payment
c) Demand draft/Cheque
6. In what interval do you want to give your premium?
a) Monthly
b) Half yearly
c) Yearly
7. Are you satisfied with the return on investment which you getting from policy?
a) Very Satisfied
b) Satisfied
c) Can't say
d) Not much Satisfied
e) Dissatisfied
8. If you are not taking any insurance policy then please tell us the reason, why?
a) I could not afford.
b) I don't see any benefit with it.
c) I don't want insurance.
d) I don't understand that how it works?
9. Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy?
a)LIC b)RLI
10. Do you think that insurance policy is necessity of today's life?
a) Yes b) No