reliance life insurance (customer buying behaviour towards i
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SUMMER TRAINING PROJECT REPORT
ON
Submitted in partial fulfillment of the requirement of ba helor of !u"ine"" Admini"tration #!!A$
GURU JAM!%ES%&AR UNI'ERSIT() %ISAR
CUSTOMER !U(ING !E%A'IOUR TO&AR*SINSURANCE PO+ICIES
Trainin, Super-i"or.
Mr/ Ra0nee"h Sharma
#%/R/ Mana,er$
Submitted !1.2 3333333333333
Enrollment .
SESSION. 455624557
GURU JAM!%ES%&AR UNI'ERSIT(%ISAR
0
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PRE8ACE
As a part of course curriculum of my BBA program we are asked to undergo two
months summer training in any organization so as to give us exposure to practical
management & to get us familiar with various activities taking place in an organization.
I have put my sincere efforts to accomplish my ob ectives within the stipulated
time. !espite all the limitations" obstructs#hurdles" and hindrances" I have filed and
worked to my optimum potential to achieve the desired goal. Being neophytes in the
highly competitive world of business. I come across some difficulties to make my
ob ective a reality. Any how" with the kind help and genuine interest of one all all
formally supported by guidance of my guide. I am presenting this hand carved effort is
coloured. I tried my level best to conduct a research to gain a through knowledge about
the pro ect in the topic 9Cu"tomer !u1in, !eha-iour to:ard" In"uran e Poli ie"9 I
have put the best of my efforts and have also tried to be ustice with the available. If
anywhere something is found unacceptable or unnecessary to the theme you are
welcomed with your valuable suggestions.
$hanks and regards.
3333333333333
%
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AC;NO&+E*GEMENT
A successful and satisfactory completion of any pro ect is the outcome of invaluable and
aggregate contribution of personal skill in the radical direction and the guidance of the
concerned Authorities. ven the best efforts are wasted without a proper guidance and
advice. $he success of any pro ect is the result of hardwork" dedication and the support of
the well wishers. I wish to express my gratitude and appreciation to all those who stood
by me and gave me all the possible help. 'irst and foremost my intellectual debt to my
pro ect guide (r. )arish (alhotra director is one for helping me in various ways" despite
his preoccupation with his own *outine and (r. +anka ,handen -Asstt. (anager ).*.
(y sincere $hanks to all the people in )* department for giving their valuable
suggestions and help in the pro ect.
'inally I thank all the individuals whom I met during the completion of pro ect and was
obligingly granted information which eventually formed the life#blood of the pro ect.
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CONTENTS
C%APTER < = . INTRO*UCTION >2?@
%.% verview of Industry as a whole
%./ +rofile of the organization
%.1 +roblems of the organization
%.2 ,ompetition Information
%.3 4.5. .$. Analysis of the rganization
C%APTER < 4 . O!JECTI'E AN* MET%O*O+OG( ?72>?
/.% 4ignificance of the study
/./ (anagerial usefulness of the study
/.1 b ectives of the study
/.2 4cope of the study
/.3 (ethodology
C%APTER < ? . CONCEPTUA+ *ISCUSSION >>2 6
C%APTER < > . *ATA ANA+(SIS B26B
C%APTER < . 8IN*INGS AN* RECOMMEN*ATION 6@2B>
ANNE URES B 2@5
!I!+IOGRAP%( @=
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C%APTER =
INTRO*UCTION
2
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INTRO*UCTION
=/= O'ER'IE& O8 IN*USTR( AS A &%O+E
Insurance allows someone who suffers a loss or accident to be compensated for the
effects of their misfortune. It lets you protect yourself against everyday risks to your
health" home and financial situation
Insurance" in law and economics " is a form of risk management primarily used to
hedge against the risk of a contingent loss. Insurance is defined as the e6uitable transfer
of the risk of a potential loss" from one entity to another" in exchange for a premium.
Insurer" in economics" is the company that sells the insurance. Insurance rate is a factor
used to determine the amount" called the premium" to be charged for a certain amount of
insurance coverage. *isk management " the practice of appraising and controlling risk" has
evolved as a discrete field of study and practice.
*eimbursement in a situation of loss. 7sually" someone decides that insurance is
needed. In order for the concept of insurance to arise" a pre#payment of some type is
re6uired. In the case of typical" everyday general auto" health and life insurance.
+ut basically" insurance enables those who suffer a loss or accident to be compensated
for the effects of their misfortune. $he payments come from a fund of money
contributed by all the holders of individual insurance policies. In other words"
individual risks are pooled and shared" with each policy holder making a contribution
to the common fund.
$he contributions have the premium. +remiums are paid to insurers # these areinstitutions which accumulate the money into the fund from which claims are paid. $he
loss is in fact paid for by the policyholder making the claim and by all the other
policyholders who cuts not suffered in the same way.
$wo factors arise when calculating the premium.
3
http://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Risk_management -
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%. 'irstly" the general likelihood that has loss will occur.
/. 4econdly" whether the particular policyholder is above gold below average in risk.
Insurer are professional risk takers. $hey know the probability of different standard of
risk happening. $hey edge calculate the premiums needed to create has fund broad
enough to cover likely loss payments. ,learly" only has proportion of policyholders will
re6uire compensation from the fund At any one time.
4omeone who is 8oung" made and in A risk#free ob will find it easier to buy life
insurance" and will pay lower premiums than someone who has has heart condition gold
is in A risky occupation.
Accelerated Benefits *ider9 A life insurance rider that allows for the early payment of some portion of the policy:s face amount should the insured suffer from a terminal illness
or in ury.
Accidental !eath Benefit *ider9 A life insurance policy rider providing for payment of an
additional cash benefit related to the face amount of the base policy when death occurs by
accidental means.
Accidental !eath Insurance9 Insurance providing payment if the insured:s death resultsfrom an accident.
Agent9 An authorized representative of an insurance company who sells and services
insurance contracts.
Annually *enewable $erm9 A form of renewable term insurance that provides coverage
for one year and allows the policy owner to renew his or her coverage each year" without
evidence of insurability. Also called yearly renewable term.
Assignment Assignment9 $he transfer of the ownership rights of a ;ife Insurance policy
from one person to another.
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Attained Age9 8our current age. 8our attained age is one of the factors life insurance
companies use to determine your premiums. $he older you are" the greater chance you:ll
die while you are covered # so the higher your premium.
Backdating9 A procedure for making the effective date of a policy earlier than theapplication date. Backdating is often used to make the age of the consumer at issue lower
than it actually was in order to get lower premium. 4tate laws often limit to six months
the time to which policies can be backdated.
Beneficiary9 $he person designated to receive the death benefit when the insured dies.
Binder9 A temporary insurance policy that expires at the end of a specific time period or
when the permanent policy is written. A binder is given to an applicant for insurance
during the time the complete policy paperwork is being completed. Assignment
Assignment9 $he transfer of the ownership rights of a ;ife Insurance policy from one
person to another.
,ash Benefits9 (oney that is paid to the insured upon settlement of a covered claim.
ften found with )ospital Income +rograms" =cash benefits= are paid directly to the
insured rather than the doctor or the hospital directly.
,ash >alue9 $he e6uity amount or =savings= accumulation in a whole life policy. ,laim ?otification to an insurance company that payment of an amount is due under the terms
of the policy.
,onditional *eceipt9 @iven to policy owners when they pay a premium at time of
application. 4uch receipts bind the insurance company if the risk is approved as applied
for" sub ect to any other conditions stated on the receipt.
,ontestable ,lause9 A provision in an insurance policy setting forth the conditions under which or the period of time during which the insurer may contest or void the policy. After
that time has lapsed" normally two years" the policy cannot be contested. xample9
4uicide.
,ontingent Beneficiary9 +erson or persons named to receive proceeds in case the original
beneficiary is not alive. Also referred to as secondary or tertiary beneficiary
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%ISTOR( O8 INSURANCE
In some sense we can say that insurance appears simultaneously with the appearance of
human society. 5e know of two types of economies in human societies9 money
economies -with markets" money" financial instruments and so on and non#money or
natural economies -without money" markets" financial instruments and so on . $he second
type is a more ancient form than the first. In such an economy and community" we can
see insurance in the form of people helping each other. 'or example" if a house burns
down" the members of the community help build a new one. 4hould the same thing
happen to one:s neighbour" the other neighbours must help. therwise" neighbours will
not receive help in the future. $his type of insurance has survived to the present day in
some countries where modern money economy with its financial instruments is notwidespread -for example countries in the territory of the former 4oviet 7nion .
$urning to insurance in the modern sense -i.e." insurance in a modern money economy" in
which insurance is part of the financial sphere " early methods of transferring or
distributing risk were practiced by ,hinese and Babylonian traders as long
ago as the 1rd and /nd millennia B," respectively. ,hinese merchants traveling
treacherous river rapids would redistribute their wares across many vessels to limit theloss due to any single vessel:s capsizing. $he Babylonians developed a system which was
recorded in the famous ,ode of )ammurabi " c. % 30 B," and practiced by early
(editerranean sailing merchants . If a merchant received a loan to fund his shipment" he
would pay the lender an additional sum in exchange for the lender:s guarantee to cancel
the loan should the shipment be stolen.
Achaemenian monarchs were the first to insure their people and made it official by
registering the insuring process in governmental notary offices. $he insurance tradition
was performed each year in ?orouz -beginning of the Iranian ?ew 8ear the heads of
different ethnic groups as well as others willing to take part" presented gifts to the
monarch. $he most important gift was presented during a special ceremony. 5hen a gift
was worth more than %0"000 !errik -Achaemenian gold coin weighing C.13#C.2/ the
C
http://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/2nd_millennium_BChttp://en.wikipedia.org/wiki/Millenniumhttp://en.wikipedia.org/wiki/Code_of_Hammurabihttp://en.wikipedia.org/wiki/Mediterraneanhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/2nd_millennium_BChttp://en.wikipedia.org/wiki/Millenniumhttp://en.wikipedia.org/wiki/Code_of_Hammurabihttp://en.wikipedia.org/wiki/Mediterraneanhttp://en.wikipedia.org/wiki/Merchant -
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issue was registered in a special office. $his was advantageous to those who presented
such special gifts. 'or others" the presents were fairly assessed by the confidants of the
court. $hen the assessment was registered in special offices.
$he purpose of registering was that whenever the person who presented the gift
registered by the court was in trouble" the monarch and the court would help him. Dahez"
a historian and writer" writes in one of his books on ancient Iran9 =E5Fhenever the owner
of the present is in trouble or wants to construct a building" set up a feast" have his
children married" etc. the one in charge of this in the court would check the registration. If
the registered amount exceeded %0"000 !errik" he or she would receive an amount of
twice as much.=
A thousand years later" the inhabitants of *hodes invented the concept of the : general
average: . (erchants whose goods were being shipped together would pay a
proportionally divided premium which would be used to reimburse any merchant whose
goods were ettisoned during storm or sinkage.
$he @reeks and *omans introduced the origins of health and life insurance c.
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=/4 PRO8I+E O8 T%E ORGANIDATION
A!OUT S%/*%IRU!%AI AM!ANI
'ew men in history have made as dramatic a contribution to their countryHs economic
fortunes as did the founder of *eliance" 4h. !hirubhai ) Ambani. 'ewer still have left
behind a legacy that is more enduring and timeless.
As with all great pioneers" there is more than one uni6ue way of describing the true
genius of !hirubhai9 $he corporate visionary" the unmatched strategist" the proud patriot"
the leader of men" the architect of IndiaHs capital markets" the champion of shareholder
interest.
But the role !hirubhai cherished most was perhaps that of IndiaHs greatest wealth creator.
In one lifetime" he built" starting from the proverbial scratch" IndiaHs largest private sector
enterprise.
5hen !hirubhai embarked on his first business venture" he had a seed capital of barely
74 100 -around *s %2"000 . ver the next three and a half decades" he converted this
fledgling enterprise into a *s
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!hirubhai is widely regarded as the father of IndiaHs capital markets. In %G " when
*eliance $extile Industries ;imited first went public" the Indian stock market was a place
patronised by a small club of elite investors which dabbled in a handful of stocks.
7ndaunted" !hirubhai managed to convince a large number of first#time retail investors
to participate in the unfolding *eliance story and put their hard#earned money in the
*eliance $extile I+ " 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.
7nder !hirubhaiHs extraordinary vision and leadership" *eliance scripted one of the
greatest growth stories in corporate history anywhere in the world" and went on to
become IndiaHs largest private sector enterprise.
$hrough out this amazing ourney" !hirubhai 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 *eliance stock" and creating one of the worldHs largest shareholder
families.
$heir new identity reflects our commitment and passion to shape a better future" create a
higher 6uality of life" and giving wing to a million dreams and aspirations
*eliance K Anil !hirubhai Ambani @roup" an offshoot of the *eliance @roup founded by
4hri !hirubhai ) Ambani -%G1/#/00/ " ranks among IndiaHs top three private sector
business houses in terms of net worth. $he group has business interests that range from
telecommunications -*eliance ,ommunications ;imited to financial services -*eliance
,apital ;td and the generation and distribution of power -*eliance nergy ;td .
*eliance K A!A @roupHs flagship company" *eliance ,ommunications" is India:s largest
private sector information and communications company" with over 10 million
subscribers. It has established a pan#India" high#capacity" integrated -wireless and
wireline " convergent -voice" data and video digital network" to offer services spanning
the entire infocomm value chain.
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$heir symbol L*eliance A+ M conveys the spirit of excellence" the human urge for
progress" the desire to reach higher" Nthe resolve to shape a better future N
$he A+ M is the highest point K the pinnacle K an abiding symbol of hope and optimism"
achievement and success.
$he B;7 in *eliance A+ M represents the inner strength" the self belief" the 6uiet
confidence" the sense of purpose that go into the making of an epic ourney.
$he * ! in *eliance A+ M represents the energy and dynamism that propels one to the
pinnacle of oneHs ambition.
Brand Colors
%/
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INTRO*UCTION O8 RE+IANCE CAPITA+
RE+IANCE CAPITA+ +IMITE*
*,; is registered as a depository participant with ?ational 4ecurities !epository ;td
-?4!; and ,entral !epository 4ervices ;td -,!4; under the 4ecurities and xchange
Board of India -!epositories and +articipants *egulations" %GG
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=$ Relian e Mutual 8und #RM8$
*eliance (utual 'und" a part of the *eliance # Anil !hirubhai Ambani @roup -*#
A!A@ is one of the fastest growing mutual funds in the country .*eliance (utual 'und
offers investors a well rounded portfolio of products to meet varying investor
re6uirements. *eliance (utual 'und -*(' is one of IndiaHs leading (utual 'unds" with
Assets 7nder (anagement -A7( of *s. 3G"C3 crore -A7( as on 10th Dune /00 and
an investor base of over 1.2million. *eliance (utual 'und constantly endeavours to
launch innovative products and customer service initiatives to increase value to
investors.*eliance (utual 'und schemes are managed by *eliance ,apital Asset(anagement ;td." a wholly owned subsidiary of *eliance ,apital ;td. *eliance ,apital
is one of India:s leading and fastest growing private sector financial services companies"
and ranks among the top 1 private sector financial services and banking
companies.*eliance ,apital has interests in asset management and mutual funds" life and
* ;IA?,;I'
I?47*A?,
* ;IA?,
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* ;IA?,, ?47( *
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* ;IA?,,A+I$A; ;$!.
%2
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general insurance" private e6uity and proprietary investments" stock broking and other
financial services
-http9OOwww.reliancemutual.co.in
4$ Relian e Mone1
*eliance (oney is a group company of *eliance ,apital one of India:s leading and
fastest growing private sector financial services companies" ranking among the top 1
private sector financial services and banking companies" in terms of net worth. *eliance
,apital is a part of the *eliance Anil !hirubhai Ambani @roup.
*eliance (oney is a comprehensive electronic transaction platform offering a wide rangeof asset classes. Its endeavour is to change the way India transacts in financial markets
and avails financial services. *eliance (oney is a single window" enabling you to access"
amongst others in 6uities" 6uity & ,ommodities !erivatives" (utual 'unds" I+ s"
;ife & @eneral Insurance products" ffshore Investments" (oney $ransfer" (oney
,hanging and ,redit ,ards.
-http9OOwww.reliancemoney.com
?$ Relian e Con"umer 8inan e
*eliance ,apital is entering the consumer finance business through a tie#up with )!',
Bank. $he credit card business is first on its list of preferences and the present move
would facilitate ust that. $his would be followed up by an entire range of activities like
housing" auto and personal loans.
According to sources" the agreement would basically cater to the credit card business.
$he formal announcement will come in the next few weeks as the final modalities are
being worked out. 5hen contacted by $" a *eliance ,apital spokesman confirmed that
discussions were on with a bank" but declined to divulge any details.
%3
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As per industry estimates" there are around %C.1m credit cards currently in use in the
Indian market. $he field is dominated by ,itibank" 4tandard ,hartered Bank" )4B, and
the 4tate Bank of India. $he other prominent players include I,I,I" )!', and AB?
Amro.
$he issuing potential is estimated at a significantly higher //0m by H%0. 5hat also
enthuses new players is the low penetration levels in the Indian credit card market.
Against a global average of 2.
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>$ Relian e +ife In"uran e
+ast profile of reliance life insurance
*eliance ;ife Insurance ,ompany ;imited is a part of *eliance ,apital ;td. of the*eliance # Anil !hirubhai Ambani @roup. *eliance ,apital is one of IndiaHs leading
private sector financial services companies" and ranks among the top 1 private sector
financial services and banking companies" in terms of net worth. *eliance ,apital has
interests in asset management and mutual funds" stock broking" life and general
insurance" proprietary investments" private e6uity and other activities in financial
services.
*eliance ,apital ;imited -*,; is a ?on#Banking 'inancial ,ompany -?B',
registered with the *eserve Bank of India under section 23#IA of the *eserve Bank of
India Act" %G12.
*eliance ,apital 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.
*eliance ;ife Insurance is another step forward for *eliance ,apital ;imited to offer
need based ;ife Insurance solutions to individuals and ,orporates.
*eliance ;ife Insurance has a pan presence and a range of products catering to individual
as well as corporate needs
A total of %< products covering savings" protection & investment re6uirements
%
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GOA+
*eliance ;ife Insurance would strive hard to achieve the following goals9#
merge as transnational ;ife Insurer of global scale and standard
Achieve impeccable reputation and credentials through best business practices
@uiding +rinciples
#,ustomer ,are and 4atisfaction
#,orporate@overnance
#,reativityandInnovation
#,ompetitiveness
>ision 9 mpowering everyone live their dreams
(ission 9 ,reate unmatched value for everyone through dependable" effective"
transparent and profitable life insurance and pension plans
#
%C
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PRO*UCTS O8 RE+IANCE +I8E INSURANCE
Indi-idual plan"
4avings - ndowment *eliance ndowment +lan *eliance 4pecial ndowment +lan *eliance ,ash 'low +lan *eliance ,hild +lan *eliance 5hole ;ife +lan *eliance ,onnect / ;ife +lan
*etirement *eliance @olden 8ears +lan *eliance @olden 8ears +lan >alue *eliance @olden 8ears +lan +lus
7nit ;inked *eliance Automatic Investment +lan
*eliance (oney @uarantee +lan *eliance (arket *eturn +lan
Emplo1ee benefit plan"*isk -+rotection *eliance @roup $erm Assurance +olicy *eliance !;I 4cheme+ensions *eliance @roup @ratuity +olicy *eliance @roup 4uperannuation +olicy
*isk O +rotection *eliance $erm +lan *eliance 4imple $erm +lan *eliance 4pecial $erm +lan *eliance ,redit @uardian +lan
%G
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&or in, En-ironment
$o be a part of world#class sales team
5ork from your own office or residence 5ork full time or part time
arn commission" Bonus" & Incentives
?o upper limits on earnings
'lexible career.
+ife +ine
A#A@
( #( ? 8 A*? !
;#;AQ)
A#20A#/0( #/.2;
A#20( #3;
A#
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+ife +ine
'or example 9# If the person starts earning from the age of /% and earns *s./0000 per
month that means *s./.2 lacks per annum and now the current age of the man is 20 yrs so
we can assume with the nominal increment in his income he will earn approx *s.2 crore.
And he would like to have retirement probably at the age of
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There are t:o t1pe" plan" :hi h the ompan1 offered to me for "ale) the1 are
a" follo:" 9#
a ;ife maker insurance investment plan
b ,hild money back plan
=/ +ife ma er in"uran e in-e"tment plan
A unit linked insurance plan that enables you to manage your investments and fulfill your
lifeHs needs.
;ife gives you a lot of choices#especially when youHre looking for ways to protect your
family" build the business you aim to own and the life style you hope to establish. But
things may change along the way and you may have to ad ust to the changes which life
brings to you and this adaptability should also be available with your life insurance plan.ur 7nit linked ;ife Insurance plan can be the financial cornerstone for your ob ectives.
;ife (aker $( +remium Investment +lan provides you a solution to fulfill all your
dreams" whether youHre buying a home" starting a family" launching a business venture.
* ;IA?, ;ife Insurance provides you a powerful investment#cum#insurance plan that
empowers you to manage your investments through your insurance policy. In this unit
linked plan" you can direct your investments in our customized unit linked funds" which
offer investments of different types9 'ixed Income -e.g. @ovt. 4ecurities" ,ompany
!ebentures and 6uities -i.e. shares . )ence it is a one#stop option to fulfill all your
plans without the hassle of managing multiple products
;E( !ENE8ITS
Prote tion
Attra ti-e Return"
+iquidit1
TaF !enefit"
8leFible In-e"tment"
PROTECTION2 Thi" poli 1 pro-ide" 1ou omprehen"i-e prote tion in a"e of <
//
http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f1http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f2http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f3http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f4http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f5http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f1http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f2http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f3http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f4http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Premium.aspx#f5 -
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*eath
+e-el In"uran e Co-er # In the unfortunate event of your death anytime during the tenor
of the plan" we will pay to your nominee-s the higher of the 4um Assured or the 'und>alue in the policy .
*i"abilit1
+ersonal Accident Benefit -+AB *ider K $his rider provides a lump#sum amount if you
die by accident or are involved in an accident" which results in $otal and +ermanent
!isability.
*i"ea"e
!read !isease -!! *ider K $his rider provides a lump#sum amount on you being
diagnosed with any of the ten dread diseases covered or your undergoing the surgery
covered .
+lease note that the rider 4um Assured cannot exceed the 4um Assured of the base plan
and the rider 4um Assured is sub ect to limits .
RETURNS 2Thi" poli 1 pro-ide" 1ou ompetiti-e return" in the form of 2
Maturit1 !enefit
n maturity" we will pay you the 'und >alue. )owever" if you do not want the proceeds
on maturity -due to adverse market movements or to take advantage of a bull run etc. "you may choose to defer it up to 3 year by opting for the 4ettlement option .
+o1alt1 Unit"
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5e will allocate free units -called +ersistency 7nits to your unit account on the Gth
policy anniversary and on every 1rd anniversary thereafter. $hese will be e6ual to 0. 3P
of your fund values on the immediately preceding 1< month anniversaries
+I UI*IT( 2 Thi" poli 1 pro-ide" 1ou ea"1 liquidit1 -ia2
Partial &ithdra:al2 5ithdraw up to /0P of your 'und value as on previous policy
anniversary" to take care of any irregular expenses. +artial 5ithdrawals are allowed once
+olicy completes 1 8ears.
Surrender" 2 Incase of unforeseen needs ensures easy li6uidity to you by accessing your
fund through surrender benefit. )owever" full surrender is possible only after the
completion of three policy years.
TA !ENE8ITS2 Thi" plan entitle" 1ou to taF benefit" under 27Os %0-%0! of the Income $ax Act %G
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8leFible In-e"tment . 8ou have the flexibility to direct your investments in any one or
more of the following five unit linked investment funds of the ,ompany9 4 ,7* "
, ?4 *>A$I> " BA;A?, !" @* 5$) and @* 5$) 47+ *. $hese funds invest
in 'ixed Income and e6uity assets as follows9.
8UN* 2HSECURE
8UN*
CONSER'ATI'E
8UN*
!A+ANCE*
8UN*
GRO&T%
8UN*
GRO&T%
SUPER
8UN*IN'ESTMENT T(PE
@overnment
4ecurities30#%00P 30#C0P /0#30P 0#10P 0#/0P
,orporate Bond
-Investment @rade 0#30P 0#30P /0#20P 0#10P 0#/0P
(oney (arket
InstrumentO,ash0#/0P 0#/0P 0#/0P 0#/0P 0#/0P
6uities ?il 0K%0P %0#20P %0# 0P 0#%00P
In-e"t more throu,h fund Top2up" to mat h 1our a"h flo:" . 8ou can invest
extra money in your policy through occasional top#ups at anytime post the policy
commencement dates. )owever" cumulative top ups will be allowed only up to /3P of
the cumulative Annual $arget +remium till date. $op ups will not effect the 4um Assured
S:it h a ro"" fund" . $his plan allows you to switch between funds and allows you to
change your risk return profile of your existing investments. $he switch option we offer
is one of the most powerful and flexible ones in the market where money from one fund
can be switched to multiple funds in a single switch. < 'ree switches are available to you
in a +olicy 8ear.
Re2dire tion . $his plan allows you to re#direct your future premiums. 8ou can invest
your future premiums in a fund different from your earlier fund" or to multiple funds in a
ratio different from your earlier ratio. 1 free re#directions are available to you in a policy
year
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Eli,ibilit1 Condition"
ntry Age -age as at
last birthday
Any age between G% days to
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4/ Child mone1 ba plan
As a loving parent" you dream for a bright future of your children. $his depends on the
education and the support they receive from you. 8ou work hard to ensure their 6uality of
education and support them with sufficient capital for their future endeavors.
8ou want to be sure that the dream you have for your child is secure and fulfilled" under
all circumstances.
Introducing * ;IA?, ;ifeHs 4tepping 4tones $(" a smart way to plan your childrenHs
future. It is a life insurance plan with regular paybacks ensuring money when it is
re6uired" during all scenarios.
;E( !ENE8ITS
=/ Guaranteed mone1 :hen 1ou need it
8ou get a guaranteed %00P of sum assured in three convenient installments designed to
give you money at important milestones in your childHs life9 10P of sum assured at 3 years before maturity
13P of sum assured at / years before maturity
13P of sum assured on maturity
Additional guaranteed 10P of the sum assured on maturity
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/ / Pea e of mind
In the event of the unfortunate incident of your early death during the plan period" your
childHs future remains secure .
%00P sum assured is paid to your nominee immediately to meet unforeseen
expenses.
8our nominee would still receive all remaining money back payments on due
dates as the policy continues.
(oreover" a full waiver of future premiums benefits is built in" ensuring that your
family is not financially burdened" and not re6uired to pay future premiums.
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A**ITIONA+ !ENE8ITS
Bonus
$his is a participating plan" eligible for bonuses. $he company may declare bonuses from
time to time" from the third policy year. $hese will be paid out to you" based on your
choice of bonus options.
$ax Benefits
$he premiums paid by the individual under this plan 6ualify for income tax rebate under
4ection C0, of the Income $ax Act-if applicable " while the payback and maturity
benefits are exempt from tax under 4ection %0-%0! of the Income $ax Act.+;A? ! $AI;4
Minimum MaFimumntry Age /% years
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$he following example would help you understand how a 4tepping 4tones $( +lan
works. 'or a male" aged 13 and planning to buy a 4tepping 4tones $( plan with basic
sum assured of *s.%"00"000 % years plan tenor" the basic annual premium would be
*s. "230.
$he various benefits under the plan are 9
Sur-i-al !enefit
'irst money back installment at
3 years before maturity
*s.10"000
4econd money back installment
At / years before maturity
*s.10"000
(aturity benefit *s.
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=/? PRO!+EMS O8 T%E ORGANIDATION
$o determine customers level of satisfaction aspire plans with the 6uality of their
transaction with *eliance ;ife Insurance.
$he biggest challenge faced by the @overnment today is that of a regulator with the
prospect of about 10 or 20 players" each represented by thousands of agents" brokers and
intermediaries. $o evolve a free and fair method of assessing the companies" to ensure
fair play between the competitors and to safeguard the interests of the largely uninformed
customers are the main tasks ahead. $he other and e6ually serious aspect is to ensure that
the vast amounts collected by the insurance and pension funds are utilised for the welfare
of the people. $hough the @overnment itself would not be the guarantor of the policy
monies" nevertheless" it is accountable through its regulatory mechanism" to put in place
prudential norms of investment and accounting" revenue recognition" fair valuation of
assets and liabilities" determining necessary margins towards any contingencies and
proper reserves for shrinkage of investments will have to be made. ?evertheless" care has
to be taken to see that there is not too much of control and regulation. A certain degree of
autonomy in the functioning of insurance companies has to be allowed so that they get
necessary freedom and space to perform and excel. $he I*!A" along with the advisory
committee constituted recently" is eminently 6ualified to undertake these tasks. Inaddition" a proposal has also been mooted to constitute a federation of insurance
companies analogous to the Indian BanksH Association. 4uch an institution will provide
guiding principles" lay down a code of insurance ethics and generally act as a facilitator
for both the life and non#life industry.
As for the existing player" the public sector giant" the ;ife Insurance ,orporation of
India" the challenge is one of sustaining the huge growths it has shown in the recent
times. It has to face competition for the first time in its history" particularly in the urban
centres. It has to manage its huge operations more efficiently than at any other time in the
past. It has to think of e6uipping its personnel -staff and agents to face competitors and it
may have to think of diversifying its activities to achieve economies in some areas.
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As far as the prospective entrants are concerned" the greatest challenge is to establish
their presence in the minds of the public. Insurance" particularly life insurance" it is said"
is never bought but sold. $o convince a large population" which is comparatively not well
informed about the intangible benefits of life insurance is indeed an onerous task. n top
of that" to establish the brand e6uity of a new name in a new field is 6uite a challenge.
$he second most important challenge facing a new entrant is that of setting up
infrastructure and to reach out to as many areas as possible" since life insurance is based
on probability and the wider the spread" the greater are the chances of success in
maintaining the expense ratios at a reasonable level.
(odern life perhaps offers challenges that will be common to all the above.
Improvements in health and longevity" the recent breakthroughs in the mapping of thehuman genome and the fre6uent changes in the economy may have far#reaching effects
on life and health insurance. !evising products that match the changing needs of the
people and managing the funds in a volatile scenario are two problems that will have to
be tackled by every player in the days to come.
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=/> COMPETITION IN8ORMATION
NAME O8 T%E COMPAN( NO/ O8 !RANC%ES
* ;IA?, ;I' I?47*A?, 8484A ;I' I>A I?!IA %0/
4BI ;I' I?47*A?, 31
11
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In terms of premium payment options
, (+A?I 4 ,4
,* !I$
,A*!
BI;;
D7?,$I ?
BI;;
! 4Q ,A4)O,) V7
A48
BI;;
!*
* ;IA?, ;I'
I?47*A?, 8 4 8 4 8 4 8 4 8 4 8 4 8 4I,I,I +*7 ;I' 8 4 8 4 8 4 8 4 8 4 8 4 8 4(AM ? 5 8 *Q
;I' 8 4 8 4 8 4 ? 8 4 ? 8 4( Q $AQ
(A)I?!*A 8 4 ? ? 8 4 8 4 ? 8 4BADAD
A;;IA?, 8 4 8 4 8 4 ? 8 4 ? 8 4BI*;A 47? ;I' 8 4 8 4 ? ? 8 4 ? 8 4)!',
4$A?!A*! ;I' 8 4 ? ? ? 8 4 ? 8 4;I, ' I?!IA 8 4 ? 8 4 8 4 8 4 ? ?I?@ >848A ;I' 8 4 ? 8 4 ? 8 4 ? 8 4A>I>A ;I' I?4. 8 4 ? ? ? 8 4 ? 8 44BI ;I' I?4. 8 4 8 4 ? ? 8 4 8 4 8 4
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=/ S&OT ANA+(SIS O8 T%E ORGANIDATION
45 $ Analysis is a techni6ue for understanding strengths" weakness" opportunities and
threats of an organization.
$he 45 $ Analysis is a techni6ue used for identifying an organizationHs strengthHs and
weakness and examining the opportunities and threats which the organization is facing.
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Strengths Weaknesse
sOpportuniti
e"
threat"
Stren,th"
(arketing expertise
Big distributional channel
Innovative product or services
Brand name
>ery 4trong +rivate +layer in the insurance industry in India.
;ife Insurance linked with Investments
$ax benefits
4ecurity against loans
)elps in future planning and provides financial consultancy.
,overs risk.
&ea ne""e"
4imilar products offered by the competitors
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7ndifferentiated price in comparison to the competitors
Anticipated returns are told to the customers
;ess of organization culture
?egativity relating insurance and LAgentsH. ?o fixed 4alary.
Opportunitie"
?o startup capital re6uired
'lexible working environment
Be your own boss
7nlimited earning potential
$o be part of a world#class team
Threat"
+rice conflicts with the competitors
+roduct and service conflicts with competitors
,hange in government policy regarding taxation
*apid launch of more companies in the same industry
!ynamic environment
Increasing ,ompetition
?on#creativity
An 7nfocused approach
+rice conflicts with the competitors
+roduct and service conflicts with competitors
,hange in government policy regarding taxation
*apid launch of more companies in the same industry
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1C
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C%APTER 2 4
O!JECTI'E
MET%O*O+OG(
1G
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O!JECTI'E MET%O*O+OG(
4/= SIGNI8ICANCE
$o provide ongoing financial advise for hisOher clients9
o Identifying future clients
o (aking appointments
o ,onduct financial review meetings with clientsOprospects
o ,lose sale
o @et referrals
o +rovide service to clients 'ollows internal sales and reporting system
SIGNI8ICANCE TO T%E IN*USTR( .
$his is a limited study which takes into consideration the responses of %00 people. $his
data can be explorated to take in the trends across the industry. $he significance for theindustry lies in studying these trends that emerge from the study. It is a rapiddly changingand evolving sector. +eople are only beginning to wake up to itHs vast possibilities. Astudy like this can attempt to guide the future of the industry based on current trends.
SIGNI8ICANE 8OR T%E RESEARC%ER .
$o facilitate and provide all the useful informtaion of the studt" the company" theinsurance industry and also provide marketing ways" methods of reliance life insurance.
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4/4 MANAGERIA+ USE8U+NESS O8 T%E STU*(
)elps to have sale experience
)elps to deal with different customers
)elps to overcome the ob ections of the customers
)elps to understand the problems of agents in a broader prospect
It provides a platform where managerial role can be played effectively and
efficiently
$he pro ect is based on competitive strategies of the different insurance companies . thereare many experienced and new companies in the insurance sector with their own uni6ue
and different plans to convince the people . people preferences " their tastes directlyeffects the companyHs performance " so in this competitive world there is a need toundergo a proper study of the consumer tastes and preferences and also the steps taken byvarious insurance companies to attract the consumers.
4o" in this way this pro ect " which is based on the marketing strategies of differentinsurance companies focuses on the steps which are taken by these companies to attract
buyers. 5ith the help of this pro ect the company can easily modify or bring anynecessary changes in itHs saving bonds in order to compete in the insurance sector. $his
pro ect helps management in number of ways9
!ecision makingfocusing a particular group or sector
better study of the insurance sector
formation of policies
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4/? O!JECTI'ES
$he ob ective of the pro ect is to know about the consumer preferences towards the
insurance and also aware the consumer about the reliance life insurance co.
NInsurance should exist everywhere and should be available to anyone one who want
its protection and who wants hisOher life secured" whenever" wherever on this planetW.
$o fulfill this goal ust producing high 6uality product is not sufficient" an effective
distribution system holds the key to achieve a ultimate goal
(ain ob ective of the pro ect is to find out the strategies of different insurance agencies
and evaluate them. +ro ect is about to penetrate the competitors of *eliance life
Insurance. ,onclusion of this pro ect can give an idea of strategies of different companies
which may be helpful to the company. ?ow days all the insurance companies in India are
trying to establish themselves in the competitive market. $hey are introducing innovative
marketing strategies to survive in the market. (any other private companies are looking
to enter in the Indian insurance market .so it is very essential to a company to innovate
their marketing strategies in terms of 'ind out the marketing strategies of different
insurance companies which are the competitors of *eliance ;ife insurance.
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4/> SCOPE O8 T%E STU*(
% $o study the present consumer buying behavior towards insurance policies
process in the organization at various levels"
/ $o find the awareness level of employees vis#X#vis consumer buying behavior
towards insurance policy and
1 $o compare the companyHs consumer buying behavior towards insurance
policy with the best )* practices in consumer buying behavior process.
A big boom has been witnessed in Insurance Industry in recent times. A largenumber of new players have entered the market and are vying to gain market share
in this rapidly improving market. $he study deals with *eliance in focus and the
various segments that it caters to. $he study then goes on to evaluate and analyse
the findings so as to present a clear picture of trends in the Insurance sector
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4/ MET%O*O+OG(
In order to make this pro ect effective and to show the real picture of the status and the
reach of those life insurance companies" I have undertaken the following steps9 #
%. I first searched the premium payment options of *eliance ;ife Insurance and then
understood them through their website.
/. $hen I collected and chose the names of G of the most satisfactory life insurance
companies
1. After that I searched for the modes for collecting the information regarding the
premium payment channels of other insurance companies like through logging on
to their websites" through phone en6uiry or by visiting their branch office.
2. I opted all of the three modes for the completion of this pro ect.
3. $hen I started off one by one with all the selected life insurance companies.
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*ATA SOURCE
POPU+ATION.2
In statistics" a statistical population is a set of entities concerning which statistical
inferences are to be drawn" often based on a random sample taken from the population.
'or example" if we were interested in generalizations about crows" then we would
describe the set of crows that is of interest. ?otice that if we choose a population like all
crows" we will be limited to observing crows that exist now or will exist in the future.
Sample SiKe.2
$he number of population items selected when a sample is drawn from a population. 'or
causal#comparative" correlation research 10 in each group" and %3 in experimental
research are generally recommended as minimum sample size.
T(PES O8 *ATA USE*.2
Primar1 *ata.2
It is collected directly from people and organization via 6uestionnaires or surveys before
being analyzed to reach conclusions concerning the issues covered in the 6uestionnaire or
survey.
'ariou" Sour e"
V7 4$I ??AI*
+* !7,$ +A(+); $ + *4 ?A; B4 *>A$I ?
Se ondar1 *ata.2
4econdary data # collected by are others to be =re#used= by the researcher.
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'ariou" Sour e"
? 54+A+ *4
I?$ *? $
+* 4+ ,$ 74
&a1" of U"in, Se ondar1 Sour e"
o xploratory phase # getting ideas
o !esign +hase # definitions & sampling frames" 6uestion wording
o 4upplement to (ain *esearcho *e# nforcement &O r ,omparison
o (ain (ode of *esearch
o !irect !ata ,ollection Impossible
o r ,ostly & $ime ,onsuming
%o: to Sear h U"e Se ondar1 Sour e"
o !ocuments # Bibliographic 4kills" 7se of Qeywords" Booleanperators
o +ublished 4tatistics
@uide to fficial 4tatistics
!igests & Abstracts
+rimary +ublication
+imitation"%. $he sample size was very small.
/. $here is bias on the part of the respondents.
1. $here is lack of information as everyone is not ready to share their
personal matters with everybody. 4ome people resist the answers.
2. It is impossible to cater every class of the society.
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C%APTER2?
CONCEPTUA+ *ISCUSSION
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CONCEPTUA+ *ISCUSSION
&hat i" +ife In"uran e
;ife insurance is a guarantee that your family will receive financial support" even in your absence. +ut simply" life insurance provides your family with a sum of money should
something happen to you. It thus permanently protects your family from financial crises.
In addition to serving as a protective cover" life insurance acts as a flexible money#saving
scheme" which empowers you to accumulate wealth#to buy a new car" get your children
married and even retire comfortably.
;ife insurance also triples up as an ideal tax#saving scheme. $o know more" read the Qey
Benefits of ;ife Insurance.
;e1 !enefit" of +ife In"uran e
;ife insurance" especially tailored to meet financial needs .
Need for +ife In"uran e
$oday" there is no shortage of investment options for a person to choose from. (odern
day investments include gold" property" fixed income instruments" mutual funds and of
course" life insurance. @iven the plethora of choices" it becomes imperative to make the
right choice when investing your hard#earned money.
;ife insurance is a uni6ue investment that helps you to meet your dual needs # saving for
life:s important goals" and protecting your assets
;et us look at these uni6ue benefits of life insurance in detail.
A""et Prote tion
'rom an investor:s point of view" an investment can play two roles # asset appreciation or
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asset protection. 5hile most financial instruments have the underlying benefit of asset
appreciation" life insurance is uni6ue in that it gives the customer the reassurance of asset
protection" along with a strong element of asset appreciation.
$he core benefit of life insurance is that the financial interests of oneHs family remain
protected from circumstances such as loss of income due to critical illness or death of the
policyholder. 4imultaneously" insurance products also have a strong inbuilt wealth
creation proposition. $he customer therefore benefits on two counts and life insurance
occupies a uni6ue space in the landscape of investment options available to a customer.
Goal ba"ed "a-in,"
ach of us has some goals in life for which we need to save. 'or a young" newly married
couple" it could be buying a house. nce" they decide to start a family" the goal changes
to planning for the education or marriage of their children. As one grows older" planning
for one:s retirement will begin to take precedence.
,learly" as your life stage and therefore your financial goals change" the instrument in
which you invest should offer corresponding benefits pertinent to the new life stage.
;ife insurance is the only investment option that offers specific products tailormade for
different life stages. It thus ensures that the benefits offered to the customer reflect the
needs of the customer at that particular life stage" and hence ensures that the financial
goals of that life stage are met.
$he table below gives a general guide to the plans that are appropriate for different life
stages.
+ife Sta,e Primar1 Need +ife In"uran e Produ t
8oung & 4ingle Asset creation 5ealth creation plans
8oung & Dust married Asset creation & protection 5ealth creation and mortgage
protection plans
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(arried with kids ,hildren:s education" Asset
creation and protection
ducation insurance" mortgage
protection & wealth creation
plans(iddle aged with grown up
kids
+lanning for retirement & asset
protection
*etirement solutions &
mortgage protectionAcross all life#stages )ealth plans )ealth Insurance
%uman +ife 'alue
&hat i" 1our %uman +ife 'alue
Beyond all doubt" your life is invaluable. 8et" there is a certain worth that can be
attributed to the financial support you offer your parents" spouse or children. $his worth
is referred to as )uman ;ife >alue -);> . In the future" if your family does not have the
protective blanket of your presence" they will no longer be able to en oy the benefits of
the income you earned. +ut simply" )uman ;ife >alue is the present value of your future
earnings .
&h1 "hould 1ou al ulate 1our %uman +ife 'alue
8ou should calculate your )uman ;ife >alue so you can accordingly invest in insurance
plans that provide your family with ade6uate finances and hence security even in your
absence.
%o: do 1ou determine 1our %uman +ife 'alue
8our )uman ;ife >alue is determined by 1 factors9
%. your age
/. ,urrent and future expenses
1. ,urrent and future income
30
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As a thumb rule" if you are 10 years of age" you should insure yourself for an amount
approximately C times your annual income. At 13" your investment should be close to I>A
C BI*;A 47?;I'
G I?@ >84A
%0 B)A*$IA AMA ;I' I?47*A?,%% Q $Ak (A)I?!*A
%/ $A$A AI@ ;I' I?47*A?,
%1 ( $ ;I'
%2 4BI I?47*A?,
%3 * 8A; 47?!7*A(
3
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INSURANCE REGU+ATOR( AN*
*E'E+OPMENT AUT%ORIT(
( I 4 4 I ?
$o protect the interests of the policyholders" to regulate" promote and ensure orderly growth of the
insurance industry and for matters connected therewith or incidental thereto.
About I*!A
,omposition of Authority under I*!A Act" %GGG
As per the section 2 of I*!A Act: %GGG" Insurance *egulatory and !evelopment Authority -I*!A" which
was constituted by an act of parliamentspecify the composition of Authority
$he Authority is a ten member team consisting of
-a a ,hairman
-b five whole#time members
-c four part#time members"
-all appointed by the @overnment of India
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*utie") Po:er" and 8un tion" of IR*A
4ection %2 of I*!A Act" %GGG lays down the duties" powers and functions of I*!A..
-% 4ub ect to the provisions of this Act and any other aw for the time being in force"
the Authority shall have the duty to regulate" promote and ensure orderly growth
of the insurance business and re#insurance business.
-/ 5ithout pre udice to the generality of the provisions contained in sub#section
-% " the powers and functions of the Authority shall include" #
-a issue to the applicant a certificate of registration" renew" modify" withdraw"
suspend or cancel such registration
-b protection of the interests of the policy holders in matters concerning assigning
of policy" nomination by policy holders" insurable interest" settlement of insurance
claim" surrender value of policy and other terms and conditions of contracts of
insurance
-c specifying re6uisite 6ualifications" code of conduct and practical training for
intermediary or insurance intermediaries and agents
-d specifying the code of conduct for surveyors and loss assessors
-e promoting efficiency in the conduct of insurance business
-f promoting and regulating professional organisations connected with theinsurance and re#insurance business
-g levying fees and other charges for carrying out the purposes of this Act
-h calling for information from" undertaking inspection of" conducting en6uiries
3C
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and investigations including audit of the insurers" intermediaries" insurance
intermediaries and other organisations connected with the insurance business
-i control and regulation of the rates" advantages" terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the $ariff Advisory ,ommittee under section
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C%APTER2>
*ATA ANA+(SIS
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*ATA ANA+(SIS
=/ *o 1ou thin in-e"tment plannin, i" important for 1our
health
8es ?o4ervice class C0P /0PBusiness class %/P CCP
After analyzing the data it was found that C0P of the service class ust %/P of
business class were interested in going for investment planning.
4ervice class had to save their tax and simultaneously they realize the need of
investment of future.
Business class had an attitude of thinking about the things when incidents will be
on head.
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V/. &hat i" the pattern of in-e"tment
property shares insurance
fixed
deposit others4ocial ,lass /P 1P
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?/ &hat i" the in"uran e ob0e ti-e
short#term ob ective
long#term
ob ective
retirement
ob ective
children savings
ob ectiveservice
class 23P 3P /3P /3P business
class C3P 3P 3P 3P
After analyzing the data it was found that 23P of service class wanted to go for short#term
ob ective" 3P for long#term ob ective" /3P for retirement#ob ective" and /3P for children
saving ob ective.
In business class" C3P wanted to go for short#term ob ective" ust 3P for long#term ob ective"
retirement ob ective and children saving ob ective .
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>/ &hi h indu"tr1 do 1ou prefer to in-e"t the mo"t
insurance bank shares othersservice
class
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/ %a-e 1ou done life in"uran e plannin,
yes noservice
class 3P /3P business
class %3P C3P
After analyzing the data it was found that" in social class"
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V
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B/ A ordin, to 1ou :hat are the ba"i" 1ou ta in, life in"uran e
long premium larger risk cover reputation of the
companymoney back
guaranteeservice class /3P /3P /3P
business class 33P 13P 3P 3P
After analyzing the data" it was found that" /3P of social class wants to invest for high
premium" larger risk cover" reputation of the country" money back guarantee. In business
class" 33P" and 13P want to go for high premium and larger risk cover and only 3P want to
for money back guarantee plan .
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@/ A ordin, to 1ou in :hi h ompan1 1ou :ill do in"uran e or
in-e"tment;I, * ;IA?, I,I,I $) *4
service class %GP 10P 23P
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7/ %o: do 1ou rate 1our in-e"tment profile
conservative aggressive secured balancedservice class 3P 33P 3P 13P
business
class # C0P # /0P
After analyzing the data" it was found that" in social class" 3P want to invest conservative
and secured fund" 33P want to invest in aggressive fund" and 13P in the balance fund.
In business class" C0P of the population wants to go for aggressive fund" and /0P of
population wants to go for the balance fund .
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=5/ %o: ha-e 1ou planned to arran,e the fund in a"e of
emer,en 1
critical
illness accident
pre#matured
death
saving
from
bank
life medical
insurance
*elatives O
friends otherssocial class /0P /0P /0P /0P /0P # #
business class # # # # # 3P G3P
After analyzing the data" it was found that in social class" /0P have arranged for critical
illness" accident" pre#matured death" savings from bank" and for life medical insurance.
In business class" 3P want to invest in relativeOfriends plan and G3P for others.
0
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C%APTER2
8IN*INGS
RECOMMEN*ATION
%
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8IN*INGS
It is very imperative to ascertain the needs" priority and actual worth of a client before
providing any insurance plan or investment plan. And sometimes the need for buying life
insurance has to be arisen. It can be seen as follows9
rea"on" :h1 health o-er" are a mu"t
A health cover insures you against several illnesses and guarantees you stay financially
secure should you ever re6uire treatment. $he cover ensures you are taken care of by
compassionate and competent doctors at the best hospitals. It thus safeguards your peace of
mind" eliminates all worries about treatment expenses" and allows you to focus your energy
on more important things" like healing.
Indian" at ,reater ri"
Rea"on =. ;ifestyles have changed9 Indians today suffer from high levels of stress. ;ong
hours at work" little exercise" disregard for a healthy balanced diet and a conse6uent
dependence on unk food have weakened our immune systems and put us at an increased risk
of contracting illnesses.
Rea"on 4. *are non#communicable diseases now common9 besity" high blood pressure"
strokes" and heart attacks" which were earlier considered rare" now affect an increasing
number of urban Indians#almost every day.
Sho in, Truth"
%CP of the urban population suffers from hypertension" which leads to renal failure" stroke
and cardio vascular diseases
10P of the population suffers heart attacks before age 20
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health. 5e ignore the fact that illnesses strike without warningJand seriously impact our
finances and eat into our savings in the absence of a good health cover.
)ealth cover9 A must#have
?o financial plan is complete without a comprehensive health cover. I,I,I +rudential offers
1 critical illness covers9 )ealth Assure" )ealth Assure +lus and ,ancer ,are. ach of these
plans provides you with guaranteed sums should you ever be diagnosed with a critical illness.
$he benefit amount takes care of all your treatment costs and ensures your hard#earned
savings stay intact.
?eed can be arise by doing the life line as I did with my customers to ascertain their needsand their worth. $hey have to be made understood whether they are ade6uately insured.
Are 1ou adequatel1 in"ured
4ound health cover planning ensures you receive both" direct medical expenses and indirect
expenses" as soon as the need arises. 5hen investing" choose a range of health plans that9
,over a wide spectrum of medical conditions from the most basic to the most critical.
Include reimbursement and benefit#based plans" which enable you to meet specific health
risks and expenses as mentioned in the diagram below
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An example9 ,ancerJalthough it does not occur as fre6uently as the common cold or feverJ
severely drains oneHs finances as its treatment expenses are very high. )ence" it is imperative to
insure ourselves with a health plan that provides cover against ,ancer.
ui tip.while selecting a health plan" ensure the plan9
+rovides long#term coverage
,learly mentions exclusions of cover
Is guaranteed renewable
Is backed by trusted name and gives the assurance of paying claims.
Per"onaliKed "er-i e :hi h I ha-e pro-ided to the u"tomer.
)andling telephonic 6ueries.
(eeting new prospects to understand their re6uirement and offering them best product in the
market.
Insuring that all customer en6uiries are dealt effectively and updating customer data base.(aintaining regular contact with clients to generate references.
*esponsible for providing regular and consistent service to the customers.
CONC+USION
Insurance is a social device in which a group of individuals -insured transfer the risk to
another party -insurer in order to combine the loss experience" which permits statistical
prediction of the losses and provides from payment of losses from the funds contributed
-premiums by all the members who transferred risk.
*eliance ;ife Insurance ,o. ;td. is a very upcoming insurance company. $his company is
expanding its customer base at a very high speed and also with satisfaction of the customers.
*eliance ;ifeHs customers are happy and this company does not force the customer to take up
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the policy but it steps into the shoes of the clients and help them in each and every possible
way.
I would like to conclude both the positive as well as the negative aspects of this study9#
Po"iti-e A"pe t i" a" follo:".
* ;IA?, ;ife I?47*A?, , (+A?8 is at the apex as it provides the maximum
number of premium payment options to its customers and has maintained the healthiest
customer satisfaction level in comparison of other life insurance companies. Also" it stands at
fourth position for having %03 branch offices all over India. 4ome life insurance companies
6ualifies with * ;IA?, ;ife for providing online premium payment service" they are
I,I,I +*7! ?$IA; ;I' " ( Q $AQ (A)I?!*A ;I' " BADAD A;;IA?U ;I' " ;I,
' I?!IA and I?@ >848A. Also" this co. is at the rapid increasing rate in terms of number
of applications 6ualified.
Ne,ati-e A"pe t i" a" follo:".
In comparison of all these life insurance companies" BADAD A;;IA?U ;I' I?47*A?,
, (+A?8 stands % st for having the most number of branch offices all over India-313
branches . Also" * ;IA?, ;ife doesnHt provide various premium payment options like
A$(" QI 4Q4" , 7*I *4O+ 4$A@ & 4$A?!I?@I?4$*7,$I ?4 (A?!A$ as
offered by other insurance companies. $he area of operations of * ;IA?, ;ife is limited"
it have to enlarge its network as it have not reached most of the rural areas where there is a
desperate need of providing insurance policies. Also" the company do not do mass
advertisement" like other insurance companies do" which is the most basic techni6ue of sales
promotion.
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RECOMMEN*ATION
Better organizational culture should be established by recruiting 6ualified managers.
$here should be professional attitude amongst agent and advisors as well.
(ore and more branches should be opened.
Advertisements should be on mass basis .
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ANNE URE
C
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ue"tionnaire
V%. !o you think investment planning is important for your healthS
8es
?o
V/. 5hat is the pattern of investmentS
+roperty
4hares
Insurance 'ixed deposit
thers
V1. 5hat is the insurance ob ectiveS 4hort#term ob ective
;ong#term ob ective
*etirement ob ective
,hild ob ectiveV2. 5hich industry do you prefer to invest the mostS
Insurance
Bank
4hares
thers
V3. )ave you done life insurance planningS
8es
?o
V
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*s.%" 00"000
*s.3"00"000
*s.%0"00"000
*s.%"00"00"000
V . According to you what are the basis you taking life insuranceS
;ong premium
;arger risk cover
*eputation of the company
(oney back guarantee
VC. According to you in which company you will do insurance or investmentS
;I,
*eliance
I,I,I thers
VG. )ow do you rate your investment profileS
,onservative
Aggressive
4ecured
Balanced
C0
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V%0. )ave you planned to arrange the fund in case of emergencyS
,ritical illness
Accident
+re#matured death in your family
4aving from the bank
;ife medical insurance
*elativesOfriends
thers
C%
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!A+ANCE S%EET
)oldings 5eightage
-P6uities G%.32*eliance Industries ;td
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SECTOR A++OCATION
Indu"tr1 Allo ationBanks %0.
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8INANCIA+ P+AN
;ife insurance is also now being regarded as a versatile financial planning tool. Apart fromthe traditional term and saving insurance policies" industry has seen the entry and growth of
unit linked products. $his provides market linked returns and is among the most flexible policies available today for investment. ?ow products are priced" flexible" and realistic andsustain so people in better position to understand the risk and benefits of the product and theyare accepting these innovative products.
4o it is clear that the face of life insurance in India is changing" but with the changes come ahost of challenges and it is only the credible players with a long term vision and a robust
business strategy that will survive. 5hatever the developments" the future and theopportunities in this industry will surely be exciting.
$here are %/ private players in Indian life insurance market.
6 ban o:ned in"urer". 2 )!', standard life" I,I,I prudential" I?@ >ysya" (et;ife" (Qotak" 4BI life.
6 independent in"urer". 2 Relian e +ife In"uran e) Aviva" A?+ sanmar" Birla sun life"Ba a Allianz" (ax ?ew 8ork life" $ata AI@.
C2
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!I!+IOGRAP%(
C3
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!oo ".
%. Insurance and *isk (anagement#!r. +.Q. @upta
/. *isk (anagement and insurance
#)arrington
1. *esearch (ethodology
# 4.,. Qothari
&eb"ite" .
www.reliancelife.co.in
www.reliancegeneral.com
www.reliancecapital.com
www.reliancemutualfunds.com
www.iciciprulife.com
www.google.com
www.ba a allianze.com
www.yahoo.com
http://www.reliancegeneral.com/http://www.reliancecapital.com/http://www.reliancemutualfunds.com/http://www.reliancegeneral.com/http://www.reliancecapital.com/http://www.reliancemutualfunds.com/