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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