contact for more project 09413991847 summer training

8/14/2019 Contact for More Project 09413991847 SUMMER TRAINING

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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 fulfillmentOf the award of the degree ofBBA (Bachelor of Business Administration)

Project guide:- Submitted by:-

Ms. Mridula Mudgal Gauarv KhandelwalSr. Lecturer BBA Part III

Alwar Managemant StudiesNorth extension road Alwar

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IET Groups of institutions

PREFACE

The liberalization of the Indian insurance sector has beenthe subject of much heated debate for some years. Thepolicy makers where in the catch 22 situation wherein for

one they wanted competition, development and growth ofthis insurance sector which is extremely essential forchanneling the investments in to the infrastructure sector.At the other end the policy makers had the fears that theinsurance premium, which are substantial, would seep outof the country; and wanted to have a cautious approach ofopening for foreign participation in the sector.

As one of the rare occurrences the entire debate was puton the back burner and the IRDA saw the day of the lightthanks to the maturing polity emerging consensus amongfactions of different political parties. Though some changesand some restrictive clauses as regards to the foreign

participation were included the IRDA has opened the doorsfor the private entry into insurance.

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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 bureaucraciesand cumbersome procedures hampers nationalizedinsurers. Therefore, potential private entrants expect toscore in the areas of customer service, speed andflexibility. They point out that their entry will mean betterproducts and choice for the consumer. The critics counterthat the benefit will be

slim, because new players willconcentrate on affluent, urban customers as foreign banksdid until recently. This seems to be a logical strategy. Startupcosts-such as those of setting up a conventionaldistribution network-are large and high-end niches offerbetter returns. However, the middle-market segment toohas great potential. Sinceinsurance is a volumes game.Therefore, private insurers would be best served by amiddle-market approach, targeting customer segmentsthat are currently untapped

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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 andresearch project. His encouragement, time and effort are

greatly appreciated.

I would like to thank Prof. Deepak Mishra, for supportingme during this project and providing me an opportunity tolearn outside the class room. It was a truly wonderfullearning experience.

I would like to dedicate this project to my parents. Withouttheir help and constant support this project would not havebeen possible.

Lastly I would like to thank all the respondents who offeredtheir opinions and suggestions through the survey that

was conducted by me in Alwar.

Once again my gratitude to the RELIANCE Lifeinsurance. For their kind co-operation.

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Gaurav Khandelwal

EXECUTIVE SUMMARY

In today s corporate and competitive world, I find thatinsurance sector has the maximum growth and potential

as compared to the other sectors. Insurance has themaximum growth rate of 70-80% while as FMCG sector hasmaximum 12-15% of growth rate. This growth potentialattracts me to enter in this sector and RELIANCE LIFEINSURANCE has given me the opportunity to work and getexperience in highly competitive and enhancing sector.

The success story of good market share of differentmarket organizations depends upon the availability ofthe product and services near to the customer, whichcan be distributed through a distribution channel. InInsurance sector, distribution channel includes only

agents or agency holders of the company. If acompany like RELIANCE LIFE INSURANCE, TATA AIG,6


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MAX etc have adequate agents in the market theycan capture big market as compared to the othercompanies.

Agents are the only way for a company of Insurance sectorthrough which policies and benefits of the company can beexplained to the customer.

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CHAPTER I

INDIAN INSURANCEINDUSTRYAN OVERVIEW

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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 inIndia. It s a business growing at the rate of 15-20 per centannually and presently is of the order of Rs 1560.41 billion(for the financial year 2006 2007). Together with bankingservices, it adds about 7% to the country s Gross DomesticProduct (GDP). The gross premium collection is nearly 2% ofGDP and funds available with LIC for investments are 8% ofthe GDP.

Even so nearly 65% of the Indian population is without lifeinsurance cover while health insurance and non-lifeinsurance continues to be below international standards. Alarge part of our population is also subject to weak social

security and pension systems with hardly any old ageincome security

A well-developed and evolved insurance sector is needed foreconomic development as it provides long term funds forinfrastructure development and strengthens the risk takingability of individuals. It is estimated that over the next tenyears India would require investments of the order of onetrillion US dollars.

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HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818when it was conceived as a means to provide for EnglishWidows. Interestingly in those days a higher premium wascharged for Indian lives than the non -Indian lives, as

Indian lives were considered more risky to cover. TheBombay Mutual Life Insurance Society started its businessin 1870. It was the first company to charge the samepremium for both Indian and non-Indian lives.

The Oriental Assurance Company was established in 1880.The General insurance business in India, on the otherhand, can trace its roots to Triton Insurance CompanyLimited, the first general insurance company establishedin the year 1850 in Calcutta by the British. Till the end ofthe nineteenth century insurance business was almostentirely in the hands of overseas companies.

Insurance regulation formally began in India with thepassing of the Life Insurance Companies Act of 1912 andthe Provident Fund Act of 1912. Several frauds during the1920's and 1930's sullied insurance business in India. By1938 there were 176 insurance companies.

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The first comprehensive legislation was introduced withthe Insurance Act of 1938 that provided strict State Controlover the insurance business. The insurance business grewat a faster pace after independence. Indian companiesstrengthened their hold on this business but despite thegrowth that was witnessed, insurance remained an urbanphenomenon.

The Government of India in 1956, brought together over240 private life insurers and provident societies under onenationalized monopoly corporation and Life InsuranceCorporation (LIC) was born. Nationalization was justified onthe grounds that it would create the much needed fundsfor rapid industrialization. This was in conformity with theGovernment's chosen path of State led planning anddevelopment.

The non-life insurance business continued to thrive withthe private sector till 1972. Their operations wererestricted to organized trade and industry in large cities.

The general insurance industry was nationalized in 1972.With this, nearly 107 insurers were amalgamated andgrouped into four companies-National InsuranceCompany, New India Assurance Company, OrientalInsurance Company and United India Insurance Company.

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INDUSTRY REFORMS

Reforms in the Insurance sector were initiated with thepassage of the IRDA Bill in Parliament in December 1999.The IRDA since its incorporation as a statutory body inApril 2000 has fastidiously stuck to its schedule of framing

regulations and registering the private sector insurancecompanies. Since being set up as an independentstatutory body the IRDA has put in a framework of globallycompatible regulations.

The other decision taken simultaneously to provide thesupporting systems to the insurance sector and inparticular the life insurance companies was the launch ofthe IRDA online service for issue and renewal of licenses toagents. The approval of institutions for imparting trainingto agents has also ensured that the insurance companies

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would have a trained workforce of insurance agents inplace to sell their products.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA

The life insurance industry in India grew by an impressive 47.38%, withpremium 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 from85.75% to 81.91%.

The 17 private insurers increased their market share from about 15% toabout 19% in a year's time. The figures for the first two months of the fiscalyear 2007-08 also speak of the growing share of the private insurers. Theshare of LIC for this period has further come down to 75 percent, while theprivate players have grabbed over 24 percent.

With the opening up of the insurance industry in India many foreign playershave entered the market. The restriction on these companies is that they arenot allowed to have more than a 26% stake in a company s ownership.

Since the opening up of the insurance sector in 1999, foreign investments ofRs. 8.7 billion have poured into the Indian market and 19 private lifeinsurance companies have been granted licenses.

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Innovative products, smart marketing, and aggressive distribution haveenabled fledgling private insurance companies to sign up Indian customersfaster than anyone expected. Indians, who had always seen life insurance asa tax saving device, are now suddenly turning to the private sector andsnapping up the new innovative products on offer. Some of these productsinclude 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

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PROFILE OFORGANIGATION

INTRODUCTION TO THE COMPANY

COMPANY PROFILE OF RELIANCE LIFE INSURANCE

FOUNDER

Few men in history have made as dramatic a contributionto their country s economic fortunes as did the founder ofReliance, Sh. Dhirubhai H Ambani. Fewer still have leftbehind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than oneunique way of describing the true genius of Dhirubhai:The corporate visionary, the unmatched strategist, the

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Undaunted, Dhirubhai managed to convince a largenumber of first-time retail investors to participate in theunfolding Reliance story and put their hard-earnedmoney in the Reliance Textile IPO, promising them, inexchange for their trust, substantial return on theirinvestments. It was to be the start of one of great

stories of mutual respect and reciprocal gain in theIndian markets.Under Dhirubhai s extraordinary vision and leadership,Reliance scripted one of the greatest growth stories incorporate history anywhere in the world, and went on tobecome India s largest private sector enterprise.Through out this amazing journey, Dhirubhai alwayskept the interests of the ordinary shareholderuppermost in mind, in the process making millionairesout of many of the initial investors in the Reliance stock,and creating one of the world s largest shareholder

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ABOUT RELIANCE

Reliance Life Insurance Company Limited is a part of Reliance CapitalLtd. of the Reliance -Anil Dhirubhai Ambani Group. Reliance Capital isone of India s leading private sector financial services companies, andranks among the top 3 private sector financial services and banking

companies, in terms of net worth. Reliance Capital has interests inasset management and mutual funds, stock broking, life and generalinsurance, proprietary investments, private equity and other activitiesin financial services.

Reliance Capital Limited (RCL) is a Non-Banking Financial Company(NBFC) registered with the Reserve Bank of India under section 45IAof the Reserve Bank of India Act, 1934.Reliance Capital sees immense potential in the rapidly growingfinancial services sector in India and aims to become a dominantplayer in this industry and offer fully integrated financial services.

Reliance Life Insurance is another step forward for Reliance CapitalLimited to offer need based Life Insurance solutions to individualsand Corporates.19


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CORPORATE OBJECTIVE

At Reliance Life Insurance, we strongly believe that as life is different atevery stage, life insurance must offer flexibility and choice to go with thatstage. We are fully prepared and committed to guide you on insuranceproducts 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 insurancecompanies in India and to become a cornerstone of RLI integratedfinancial services business in India.20


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CORPORATE MISSION

To set the standard in helping our customers manage their financialfuture .BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BYRELIANCE 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

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7.Reliance Golden Years Plan(formerly Bhagya Shree)Investments

8.Reliance Market Return Plan

(formerly Kanaka Shree)9. Risk / Protection10. 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

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Tax Benefits

INCOME TAXSECTIONGROSS ANNUALSALARY

HOW MUCHTAX CAN YOUSAVE?HDFC STANDARDLIFE PLANSSec. 80C Across All incomeSlabsUpto Rs. 33,990saved oninvestment ofRs. 1,00,000.All the life insuranceplans.

Sec. 80 CCC Across all incomeslabs.Upto Rs. 33,990saved onInvestment ofRs.1,00,000.All the pension plans.Sec. 80 D Across all incomeslabsUpto Rs. 3,399saved onInvestment ofRs. 10,000.

All the healthinsurance ridersavailable with theconventional plans.TOTAL SAVINGSPOSSIBLERs37,389Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399under Sec. 80 D, calculated for a male with gross annualincomeexceeding Rs. 10,00,000.Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completelytax-free, subject to the conditions laid down therein.

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2.2 OTHER COMPETITIORSMMMAJOR PLAAJOR PLAAJOR PLAYERS INYERS INYERS IN THE ITHE ITHE INSURNSURNSURAN

ANANCE INCE INCE INDUSTRDUSTRDUSTRYYY ININININININDIADIADIA

Life Insurance Corporation of India (LIC)Life Insurance Corporation of India (LIC) was establishedon 1 September 1956 to spread the message of lifeinsurance in the country and mobilise people s savings fornation-building activities. LIC with its central office in

Mumbai and seven zonal offices at Mumbai, Calcutta,Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operatesthrough 100 divisional offices in important cities and 2,048branch offices. LIC has 5.59 lakh active agents spread overthe country.

The Corporation also transacts business abroad and hasoffices in Fiji, Mauritius and United Kingdom. LIC isassociated with joint ventures abroad in the field ofinsurance, namely, Ken-India Assurance Company Limited,

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Nairobi; United Oriental Assurance Company Limited,Kuala Lumpur; and Life Insurance Corporation(International), E.C. Bahrain. It has also entered into anagreement with the Sun Life (UK) for marketing unit linkedlife 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 netpremium of $ 1.3 Billion. During the last 15 years, LIC'sincome grew at a healthy average of 10 per cent asagainst the industry's 6.7 per cent growth in the rest ofAsia (3.4 per cent in Europe, 1.4 per cent in the US).

LIC has even provided insurance cover to five millionpeople living below the poverty line, with 50 per centsubsidy in the premium rates. LIC's claims settlement ratioat 95 per cent and GIC's at 74 per cent are higher thanthat of global average of 40 per cent. Compounded annualgrowth rate for Life insurance business has been 19.22 percent per annum

General Insurance Corporation of India (GIC)25


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The general insurance industry in India was nationalized and agovernment company known as General Insurance Corporation of India(GIC) was formed by the Central Government in November 1972. Witheffect from 1 January 1973 the erstwhile 107 Indian and foreigninsurers which were operating in the country prior to nationalization,were grouped into four operating companies, namely, (i) NationalInsurance Company Limited; (ii) New India Assurance Company

Limited; (iii) Oriental Insurance Company Limited; and (iv) United IndiaInsurance Company Limited. (However, with effect from Dec'2000,these subsidiaries have been de-linked from the parent company andmade as independent insurance companies). All the above foursubsidiaries of GIC operate all over the country competing with oneanother and underwriting various classes of general insurancebusiness except for aviation insurance of national airlines and cropinsurance which is handled by the GIC.

Besides the domestic market, the industry is presently operating in 17countries directly through branches or agencies and in 14 countriesthrough subsidiary and associate companies.

IN ADDITION TO ABOVE STATE INSURERS THEFOLLOWING HAVE BEEN PERMITTED TO ENTER INTOINSURANCE BUSINESS:

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The introduction of private players in the industry has added to the colorsin the dull industry. The initiatives taken by the private players are verycompetitive and have given immense competition to the on timemonopoly of the market LIC. Since the advent of the private players inthe market the industry has seen new and innovative steps taken by theplayers in this sector. The new players have improved the service qualityof the insurance. As a result LIC down the years have seen the declining

phase in its career. The market share was distributed among the privateplayers. Though LIC still holds the 75% of the insurance sector but theupcoming natures of these private players are enough to give morecompetition to LIC in the near future. LIC market share has decreasedfrom 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 leadingprivate life insurance companies, which offers a range of individual andgroup insurance solutions. It is a joint venture between HousingDevelopment Finance Corporation Limited (HDFC Ltd.), India s leadinghousing finance institution and The Standard Life Assurance Company, aleading provider of financial services from the United Kingdom. Their

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cumulative premium income, including the first year premiums andrenewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. Theyhave managed to cover over 11,00,000 individuals out of which over3,40,000 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-businesscorporate, together with New York Life International, a global expert inlife insurance. With their various Products and Riders, there are morethan 400 product combinations to choose from. They have a nationalpresence with a network of 57 offices in 37 cities across India.

3. ICICI Prudential Life Insurance CompanyLtd.ICICI Prudential Life Insurance Company is a joint venture betweenICICI Bank, a premier financial powerhouse and Prudential plc, a leadinginternational financial services group headquartered in the UnitedKingdom. ICICI Prudential was amongst the first private sector insurancecompanies to begin operations in December 2000 after receiving approval

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.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 CompanyThe joint venture bringing together Royal & Sun AllianceInsurance and Sundaram Finance Limited started itsoperations from March 2001. The company is HeadQuartered at Chennai, and has two Regional Offices, one

at Mumbai and another one at New Delhi.

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Bajaj Allianz General Insurance Company Limited is a joint venturebetween Bajaj Auto Limited and Allianz AG of Germany. Both enjoy areputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory andDevelopment Authority (IRDA) certificate of Registration (R3) on May2nd, 2001 to conduct General Insurance business (including Health

Insurance business) in India. The Company has an authorized and paid upcapital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% isheld by Allianz, AG, Germany.

3. ICICI Lombard General Insurance Company LimitedICICI Lombard General Insurance Company Limited is ajoint venture between ICICI Bank Limited and the US-based$ 26 billion Fairfax Financial Holdings Limited. ICICI Bank isIndia's second largest bank, while Fairfax FinancialHoldings is a diversified financial corporate engaged in

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general insurance, reinsurance, insurance claims

management and investment management.Lombard Canada Ltd, a group company of Fairfax FinancialHoldings Limited, is one of Canada's oldest property andcasualty insurers. ICICI Lombard General InsuranceCompany 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.

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Chola-MS commenced operations in October 2002 and hasissued more than 1.4 lakh policies in its first calendar yearof operations. The company has a pan-Indian presence withoffices 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 venturecompany, formed from the Tata Group and AmericanInternational Group, Inc. (AIG). Tata AIG combines thestrength and integrity of the Tata Group with AIG'sinternational expertise and financial strength. The TataGroup holds 74 per cent stake in the two insuranceventures while AIG holds the balance 26 per cent stake.

Tata AIG General Insurance Company, which started itsoperations in India on January 22, 2001, offers thecomplete range of insurance for automobile, home,personal accident, travel, energy, marine, property and

casualty, as well as several specialized financial lines.

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Do you see your child becoming a trailblazer?Will they create the ultimate symphony or give sportsa new dimension?Our children may just be the ones to end the arms raceand wipe out poverty fromthe face of the Earth. But forthem to be able to aim for the skies, YOU NEED TO ACT

NOW!

Introducing Reliance Secure Child Plan - a unique lifeinsurance cum savings plan.secure the future of yourchild.

Key FeaturesInsurance cover on the life of child

Your child is completely protected - we willcontinue to pay the premiums even if you are notalive

Life time income to child in the event of disabilityReturn Shield option to protect your investmentreturnsLiquidity in the form of partial withdrawalsCapital guarantee available on maturity and ondeath of the child for basic and top-up premiumsOption to package with Accidental Death and Totaland Permanent Disablement Rider, CriticalConditions Rider and Term Life Insurance BenefitRider.(2)Reliance Health + Wealth PolicyUNDER THIS PLAN THE INVESTMENT RISK IN THEINVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.

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There are times when late working hours take precedenceover your health check-ups. And there are times when avisit to the doctor seems more important than dividendson your shares. In the rat race to make money, we oftenforget to take care of ourselves.

We understand this predicament. Here is a plan that will

ensure that your wealth keeps increasing constantly andyet your health does not take a backseat. The RelianceWealth Health Plan. A plan that gives you the benefits ofwealth bhi. health bhi.

Life changes. And as it does, so do your priorities. After all,the circumstances of your life can determine the type ofhealth coverage you need.

India has made rapid strides in the health sector. SinceIndependence, life expectancy has gone up markedly andsurvival rates have also increased, still critical healthissues remain. Infectious diseases continue to claim a

large number of lives.

Reliance Wealth + Health Plan, a health insurance planunderwritten by Reliance Life Insurance Company Limited,is designed to work in conjunction with contributionstowards savings.

Key FeatureA Unit Linked plan with Unique Savings Component

Twin benefit of market linked return and healthprotectionChoose from two different plan options

Flexibility to take care of your family s healthFlexibility to switch between funds / plan optionsOption to pay Top-ups(3) Reliance Pension Policy36


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UNDER THIS PLAN THE INVESTMENT RISK IN THEINVESTMENT 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 adream harnessed for years. The power to make your

autumn years special lies only with you. The RelianceSuper Golden Years Plan givesyou the power and the rightkind of solution - A retirement plan that allows you to savesystematically and generate the much-needed corpus tomake your olden years look golden.

Key Features Reliance Pension Policy :Invest systematically and secure your golden years

A flexible unit-linked pension product that isdifferent from traditional life insurance productswith Vesting Age between 45 & 70 yearsEight different investment funds to choose from

Flexibility to switch between fundsOption to pay Regular, Single as well as Top-uppremiumsFlexibility to advance / extend your Vesting AgeTax free commutation up to one third of Fund Valueat Vesting Age37


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(4) Reliance Whole life insurance policyYou ve always loved your family. As a loving person youwant to be rest assured that they will be happy, even ifsomething were to happen to you. With Reliance WholeLife Plan you can be sure that your family will receive thattimely financial support they need.

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

Key FeaturesInsurance protection till age 85

Choice of extending your insurance coverage tillage 99Convenient Premium Payment TermWealth creation through bonus additionsMore value for your money by way of High SumAssured Rebate Get Sum Assured plus Bonuses incase of your unfortunate death

Option to add two Riders Critical Illness andAccidental Death Benefit and Total and PermanentDisablement RiderPolicy Loan available after three full years premiumpayment38


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CHAPTER IIIOBJECTIVES OF STUDY

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

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.Proper understanding and analysis of lifeinsurance industry.

.To know about brand awareness of Kotak LifeInsurance and customer s preference about

Kotak Life Insurance.

.According the market survey come know abouthow much potential of insurance market in ourcity.

.And base on analysis of the result thus obtainedmake a report on that research.

.Training aims at recruiting maximum number of

Life Advisors and to Sell the maximum policiesfor the company and bring the business for thecompany which ever is going at the particularpoint of time.

.As the Kotak Life Insurance well reputedcompany in India it s great chance for me toobserved different products launch by othercompetitor companies like ICICI prudential, Bajajalliance ,LIC, Max New York life etc. In all, it is tounderstand the overall working of the Lifeinsurance sector.

.The objective behind the project is as follows:

.To find the right candidate.

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.To about their family background, occupation,social relation, Qualification, Age.

CHAPTER IV

RESEARCHMETHODOLOGY

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RESEARCH METHODOLOGYTITLE:

To determine customer-buying behavior with a focus on marketsegmentation for Reliance Life Insurance.

TITLE JUSTIFICATION:The above title is self explanatory. The study deals mainly with studyingthe buying pattern in the insurance industry with a special focus onReliance life Insurance. The various segments of the markets divided interms of Insurance Needs, Age groups , Satisfaction levels etc will alsostudied.

OBJECTIVEObjective One

To determine reasons behind opting for an insurance.

To provide the company with information of customer's Insurancepolicy if they have any and reasons for opting for that particularpolicies.42


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.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 otherinsurance agent.To study the types of benefits provided by insurance services.To determine the use of Internet for valuable information anddecision-making process.SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. Alarge number of new players have entered the market and are vying to

gain market share in this rapidly improving market. The study deals withReliance in focus and the various segments that it caters to. The studythen goes on to evaluate and analyse the findings so as to present a clearpicture of trends in the Insurance sector.

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EXPLORATORY & DISCRIPTIVE EXPERIMENTALRESEARCHThe 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 interviewswere conducted to collect the customer s perception and buying behavior,through this questionnaire.

SAMPLING METHODOLOGYSamplingTechnique:

Initially, a rough draft was prepared keeping in mind the objective of theresearch. A pilot study was done in order to know the accuracy of theQuestionnaire. The final Questionnaire was arrived only after certainimportant changes were done. Thus my sampling came out to bejudemental and convinent

Sampling Unit:

The respondants who were asked to fill out questionnaires are thesampling units. These comprise of employees of MNCs, Govt.Employees, Self Employeds etc.

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Sample size:

The sample size was restricted to only 100, which comprised of mainlypeoples 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 notnecessarily shows a pattern applicable to all of Country.2. Some respondents were reluctant to divulge personal informationwhich can affect the validity of all responses.3. In a rapidly changing industry, analysis on one day or in onesegment can change very quickly. The environmental changes are vitalto be considered in order to assimilate the findings.46


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As an alternative channel for distribution, insurance companies usually tieup with banks. In the case of banc assurance, where there is a corporateagency tie-up, the commission could range from 5 per cent to 40 per centof first-year premium depending on the commission loaded on to theproduct at the time of registration with IRDA.

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CHAPTER V

RESULT ANALYSIS&INTERPRETATION

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DATA ANALYSIS & INTERPRETATION

.DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCECOMPANIES

COMPANY S NAME NO.OF

RESPONDENT SHARE (%)L.I.C. 78 78RELIANCE LIFEINSURANCE 3 3ICICI PRUDENTIAL 10 10SBI LIFE 7 7HDFC 2 2TOTAL 100 100

2

7

3

7810LICRELICICISBIHDFC

INTERPRETATION

.78% of the people contacted prefer LIC policy to any other andtherefore it is ranked no.1 by that percent of respondents.

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.DATA GIVES BENEFITS OF INSURANCE PERCEIVED BYRESPONDENTS

BENEFITS NO.OFRESPONDENTS SHARE (%)Cover Future Uncertainty 55 55

Tax Deductions 20 20Future Investment 25 25TOTAL 100 100

55%20%25%Cover FutureUncertaintyTax DeductionsFuture InvestmentINTERPRETATION

.55% of the respondents believe that covering future uncertaintyis the biggest benefit of an insurance policy.

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.Whereas, 20% and 25% of them believe that the other benefitsare Tax deduction and future investments respectively.

.DATA PROVIDES FEATURES OF INSURANCE POLICY THATATTRACTED RESPONDENTS

FEATURE NO.OFRESPONDENTSSHARE (%)Money Back Guarantee 15 15Larger Risk Coverance 37 37Easy Access to Agents 7 7Low Premium 30 30Company s Reputation 11 11TOTAL 100 100

FEATURES OF INSURANCE POLICY15%

37%7%11%30%MONEY BACKGUAARENTEELARGER RISKCOVERANCEEASY ACCESS TOAGENTSLOW PREMIUMREPUTATION OFCOMPANY

INTERPRETATION

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.Majority of the respondent (37%) found Larger risk coveranceas the most attracted feature of the all.

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.DATA PROVIDES NUMBER OF INSURANCE POLICY TYPERESPONDENTS

POLICY TYPE NO. OFRESPONDENTSSHARE (%)

LIFE POLICY 75 75NON LIFE POLICY 25 25BOTH 45 45

NATURE OF POLICY752545LIFEPOLICYNON LIFEPOLICYBOTH

INTERPRETATION

.75% of the respondents have Life Insurance Policy while 45% haveboth. (The % is calculated out of 280 positive response)

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81 81.DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OFRESPONDENTS

SHARE (%)A saving tool 81 81%A tax saving device 74 74%A tool to protect your family 100 100%

100

SAVINGTOOLTAX SAVINGTOOLFAMILY

INTERPRETATION

81% of the respondents have perception of Insurance being asaving tool.And 74% of the respondents have perception of Insurance being atax saving device.But 100% of the respondents are with the view that Insurance is atool to protect your family.55

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.DATA SHOWS PEOPLES HAVING INSURANCE

70%30%Yes

No

RESPONSE NO. OFRESPONDENTSSHARE (%)Yes 70 70%No 30 30%Total 100 100%

INTERPRETATION

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Of the sample size of 400 surveyed respondents 70% of therespondents are having Insurance policy.30% of the respondents are either not having any Insurance policyat present or their policy is already matured.

And at present 100% of the respondents are with the view thatInsurance is a tool to protect your family..DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO. OFRESPONDENTSSHARE (%)Customer approachedInsurance company/Agent45 45%Company/agent approachedcustomer55 555

Total 100 100%

55%45%Customer approached Insurance company/AgentCompany/agent approached customer

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INTERPRETATION

44.5% of the respondents approached the Insurance Company /Agent.Whereas, 55.5% of the respondents were approached by the

Company /Agent.58


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.DATA SHOWS REASONS BEHIND FOR INSURANCE

RESPONSE NO. OFRESPONDENTSSHARE (%)

Tax saving 80 80%Saving / Investment 80 80.%Family protection 100 100%

100

8080

Slice 1

Slice 2Slice 3INTERPRETATION

80.71% of the Respondents opted for Insurance for tax savingbenefits.80.71% of the Respondents opted for saving / Investments.But all of them, i.e. 100% of the respondents have opted forinsurance for their family protection.

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.DATA SHOWS SATISFACTION OF RESPONDENTS WITHRESPECT TO POLICY


Satisfied 60 60%Not satisfied 40 40%Not Responded 0 0.0%Total 100 100%

0%

40%60%

Satisfied

Not satisfiedNot RespondedINTERPRETATION

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


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.DATA SHOWS SATISFACTION OF +RESPONDENTS WITHRESPECT TO SERVICE AGENT


Satisfied 45 45%Not satisfied 55 55%Not Responded 0 0.0%Total 100 100%

55.00%45.00%Satisfied

Not satisfiedINTERPRETATION

45% of the respondents are satisfied with their existing serviceagent.55% of the respondents are not satisfied with their existinginsurance agent.61


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All of those who have taken a policy have responded.62


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.DATA SHOWS RESPONDENT S INVESTMENTS FOR TAXSAVING

INVESTMENTS NO. OFRESPONDENTSSHARE (%)

LIC 51 51%NSC 33 33%Bonds 32 32%PPF 25 25%PF 21 21%EPF 11 11%

333225211151

LIC NSC BOND PPF PF EPFINTERPRETATION

51% of the respondents save their tax by investing in LIC, which isthe highest among all Investment. This shows that most people forgetting taxes benefits invest in LIC.33.25% of the respondents do their tax saving by investing in NSC.64


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70.5% of the respondents are with the perception that Insurance isthe best form of investment for securing their future, which is oneof the highest and this shows that insurance is an important key forsecuring your future..DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR

INVESTMENT

RESPONSE NO. OFRESPONDENTSSHARE (%)Saving & Returns 100 100%Security 90 90%Tax benefits 71. 71.%

9071100Saving & Returns Security Tax benefits

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INTERPRETATION

100% of the respondents intent to gain saving and returns fromtheir investment.90% of the respondent s intent to gain security from their

investments.Whereas, 71.75% of the respondent s intent to gain tax benefitsfrom their investments..DATA GIVES PEOPLE S PERCEPTION ON APPROPRIATE AGEFOR BUYING INSURANCE

RESPONSE NO. OFRESPONDENTSSHARE (%)After 25 years 29 29%After 35 years 10 10%

After 45 years 0 0%Anytime 60 60%

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29%10.10% 60.61%29%10.10% 60.61%0%

After 25 years

After 35 yearsAfter 45 yearsAnytimeINTERPRETATION

29% of the respondents are with the view that insurance should bebought after the age of 25 years.

10.5% of the respondents are with the view that insurance shouldbe buyed after the age of 35 years.Whereas, 60.5% of the respondents are with the view that buyingof insurance do not have any thing to do with age i.e. there is noage limitations. It can be purchased any time according to theneed.68


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.DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCECOMPANIES


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%

32410 026 29Inflexible plans

Unsatisfactory servicesSatisfactoryVery goodNon user friendlyNon AggressiveGood

INTERPRETATION

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67% of the respondents have the opinion that Indian InsuranceCompanies have Rigid plans.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 Insurancecompanies are Non-aggressive.24% of the respondents feel that products and services of IndianInsurance 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 verygood.70


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Friendly service & responsiveness and Accessibility are alsoimportant factors looked by customers in a company.DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTSRESPONSE NO. OFRESPONDENTS

SHARE (%)Planning 87 87%Not planning 13 13%Total 100 100%

13.0%87.0%

Planning

Not planningINTERPRETATION

Only 12.5% of the customers contacted are not planning for newinvestments presently.72


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Whereas, 87.5% of the customers are still planning for newinvestments this can be a great potential for Reliance LifeInsurance to take them on their favor.

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.DATA SHOWS PEOPLE INTERESTED IN GOING FORINSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITYOFFERS BETTER SERVICE & PRODUCTS

RESPONSE NO. OFRESPONDENTS

SHARE (%)Yes 43 43%No 44 44%Uncertain 13 13%Total 100 100%

43%44%13%Yes No UncertainINTERPRETATION

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

away from a city if services and products are worthwhile, which againis a good prospect (potential) for Reliance Life Insurance to take themon their favor.

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CHAPTER VICONCLUSION

CONCLUSION

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Our exhaustive research in the field of Life Insurance threwup some interesting trends which can be seen in the aboveanalysis. A general impression that we gathered duringData collection was the immense awareness andknowledge among people about various companies andtheir insurance products. People are beginning to lookbeyond 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 marketingand advertising campaigns of insurance companies. A highpenetration of print , radio and Television ad campaignsover the years is beginning to have it s impact now.

The general satisfaction levels among public with regardsto policy and agents still requires improvement. Buttherein lays the opportunity for a relative new comer likeING. LIC has never been known for prompt service orcustomer oriented methods and Reliance can build onthese factors.

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CHAPTER VIISUGGESTION

Suggestion

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CHAPTER VIIIQUESTIONNAIRE

QUESTIONNAIRE

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1. ARE YOU EMPLOYED?YES NOIf YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?LIFENON-LIFE BOTH

4.WHICH CO S INSURANCE POLICY YOU PREFERTHE MOST? (RANK THEM)a) LICb) ICICIPRUDENTIALc) SBI LIFE INSURANCEd) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFEg) ANY OTHER ________( Specify)

5.FOR HOW MANY YEARS DO YOU HAVEINSURANCE POLICY? (Please Tick)a)


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6.WHAT DO YOU THINK ARE THE BENEFITS OFINSURANCE COVER?(RANK THEM)

a) COVER FUTURE UNCERTAINIT

b) TAX DEDUCTIONSc) FUTURE INVESTMENTd) ANY OTHER _________ (Specify)

7.WHICH FEATURE OF YOUR POLICY ATTRACTEDYOU 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)

8. YOUR MONTHLY INCOME?a)


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10.WHAT S YOUR PERCEPTION ABOUT INSURANCE?(RANK THEM)a) A SAVING TOOLb) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

11. HOW HAS/WOULD YOU BOUGHT/BUY ANINSURANCE?a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER

12.ARE YOU SATISFIED WITH THE POLICY?a) SATISFIED SAVING TOOLb) NOT SATISFIED

c) NOT RESPONDING

13.ARE YOU SATISFIED WITH THE SERVICE AGENT?a) SATISFIED SAVING TOOLb) NOT SATISFIED

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17. WHAT DO YOU INTENT TO GAIN FROMINVESTMENTS?a) SAVING & RETURNSb) SECURITYc) TAX BENIFITS

18. WHAT S THE RIGHT AGE TO BUY INSURANCE?a) AFTER 25 Yrsb) AFTER 35 Yrsc) AFTER 45 Yrsd) ANYTIME

19.HOW WOULD YOU RATE INDIAN INSURANCECOs?

a) RIGID PLANSb) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVEe) SATISFACTORYf) GOODg) VERY GOOD

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20. ARE YOU PLANNING FOR NEW INVESTMENTS?PLANNING

NOT PLANING

21. WOULD YOU GO FOR INSURANCE IF A SERVICEPROVIDER AWAY FROM THE CITY OFFERS BETTER

SERVICE & PRODUCTS?a) YESb) NOc) UNCERTAIN

THANK YOU

NAME:_________________________

ADDRESS:______________________

______________________________

OCCUPATION:___________________

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CHAPTER IXBIBLIOGRAPHY

BIBLIOGRAPHY

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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 INSURANCEINDUSTRY . Dec2005.BRIEF PROFILE OF LIC, INDIA Dec 2006.REPORT: COPING WITH COMPETITION Jan2007

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THANK YOU

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