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A
PROJECT REPORT
ON
A STUDY ON AWARENESS TOWARDS LIFE
INSURANCE POLICY "
Submitted to
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY
In the partial fulfillment
Of the award of the degree of
BBA (Bachelor of Business Administration)
PROJECT GUIDE: SUBMITTED BY:. SIDDARTH KUMAR
BBA-5TH SEM
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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.
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ACKNOWLEDGEMENT
I would like to thank ., for supporting me during this
project and providing me an opportunity to learn outside the class
room. It was a truly wonderful learning experience.
I would like to dedicate this project to my parents. Without their
help and constant support this project would not have been
possible.
Lastly I would like to thank all the respondents who offered their
opinions and suggestions through the survey that was conducted byme.
Once again my gratitude to the Life insurance Policy. For their
kind co-operation.
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DECLARATION
I Siddarth Kumar OF BBA III year of MAHARAJA SURAJMAL
INSTITUTE hereby declare that the summer training report
entitled in LIFE INSURACNE POLICY is an original word and
the same has not been submitted to any other institute for the
award of any other degree.
Signature of candidate
SIDDARTH KUMAR
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EXECUTIVE SUMMARY
In todays corporate and competitive world, I find that insurance
sector has the maximum growth and potential as compared to the
other sectors. Insurance has the maximum growth rate of 70-80%
while as FMCG sector has maximum 12-15% of growth rate. This
growth potential attracts me to enter in this sector and LIFE
INSURANCE POLICY has given me the opportunity to work and
get experience in highly competitive and enhancing sector.
The success story of good market share of different market
organizations depends upon the availability of the product
and services near to the customer, which can be distributed
through a distribution channel. In Insurance sector,
distribution channel includes only agents or agency holders
of the company. If a company like LIFE INSURANCE
POLICY, have adequate agents in the market they can
capture big market as compared to the other companies.
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CHAPTER I
INDIAN INSURANCE
INDUSTRY
AN 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 in India. Its a
business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 1560.41 billion (for the financial
year 2006 2007). Together with banking services, it adds about
7% to the countrys Gross Domestic Product (GDP). The grosspremium collection is nearly 2% of GDP and funds available with
LIC for investments are 8% of the GDP.
Even so nearly 65% of the Indian population is without life
insurance cover while health insurance and non-life insurance
continues to be below international standards. A large part of our population is also subject to weak social security and pension
systems with hardly any old age income security
A well-developed and evolved insurance sector is needed for
economic development as it provides long term funds for
infrastructure development and strengthens the risk taking abilityof individuals. It is estimated that over the next ten years India
would require investments of the order of one trillion US dollars.
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HISTORICAL PERSPECTIVE
The history of life insurance in India dates back to 1818 when it
was conceived as a means to provide for English Widows.
Interestingly in those days a higher premium was charged for
Indian lives than the non - Indian lives, as Indian lives were
considered more risky to cover. The Bombay Mutual Life
Insurance Society started its business in 1870. It was the first
company to charge the same premium for both Indian and non-
Indian lives.
The Oriental Assurance Company was established in 1880. The
General insurance business in India, on the other hand, can trace its
roots to Triton Insurance Company Limited, the first general
insurance company established in the year 1850 in Calcutta by the
British. Till the end of the nineteenth century insurance business
was almost entirely in the hands of overseas companies.
Insurance regulation formally began in India with the passing of
the Life Insurance Companies Act of 1912 and the Provident Fund
Act of 1912. Several frauds during the 1920's and 1930's sullied
insurance business in India. By 1938 there were 176 insurance
companies.
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The first comprehensive legislation was introduced with the
Insurance Act of 1938 that provided strict State Control over the
insurance business. The insurance business grew at a faster pace
after independence. Indian companies strengthened their hold on
this business but despite the growth that was witnessed, insurance
remained an urban phenomenon.
The Government of India in 1956, brought together over 240
private life insurers and provident societies under one nationalized
monopoly corporation and Life Insurance Corporation (LIC) was
born. Nationalization was justified on the grounds that it would
create the much needed funds for rapid industrialization. This was
in conformity with the Government's chosen path of State led
planning and development.
The non-life insurance business continued to thrive with the
private sector till 1972. Their operations were restricted to
organized trade and industry in large cities. The general insurance
industry was nationalized in 1972. With this, nearly 107 insurers
were amalgamated and grouped into four companies- National
Insurance Company, New India Assurance Company, OrientalInsurance Company and United India Insurance Company. These
were subsidiaries of the General Insurance Company (GIC).
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KEY MILESTONES
1912: The Indian Life Assurance Companies Act enacted as the
first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and
non-life insurance businesses.
1938: Earlier legislation consolidated and amended by the
Insurance Act with the objective of protecting the interests of the
insuring public.
1956: 245 Indian and foreign insurers along with provident
societies were taken over by the central government and
nationalized. LIC was formed by an Act of Parliament- LIC Act
1956- with a capital contribution of Rs. 5 crore from the
Government of India.
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INDUSTRY REFORMS
Reforms in the Insurance sector were initiated with the passage of
the IRDA Bill in Parliament in December 1999. The IRDA since
its incorporation as a statutory body in April 2000 has fastidiously
stuck to its schedule of framing regulations and registering the
private sector insurance companies. Since being set up as an
independent statutory body the IRDA has put in a framework of
globally compatible regulations.
The other decision taken simultaneously to provide the supporting
systems to the insurance sector and in particular the life insurance
companies was the launch of the IRDA online service for issue and
renewal of licenses to agents. The approval of institutions for
imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in
place to sell their products.
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PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN
INDIA
The life insurance industry in India grew by an impressive 47.38%,
with premium income at Rs. 1560.41 billion during the fiscal year
2006-2007. Though the total volume of LIC's business increased in
the last fiscal year (2006-2007) compared to the previous one, its
market share came down from 85.75% to 81.91%.
The 17 private insurers increased their market share from about
15% to about 19% in a year's time. The figures for the first two
months of the fiscal year 2007-08 also speak of the growing share
of the private insurers. The share of LIC for this period has further
come down to 75 percent, while the private players have grabbed
over 24 percent.
With the opening up of the insurance industry in India many
foreign players have entered the market. The restriction on these
companies is that they are not allowed to have more than a 26%
stake in a companys ownership.
Since the opening up of the insurance sector in 1999, foreign
investments of Rs. 8.7 billion have poured into the Indian market
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and 19 private life insurance companies have been granted
licenses.
Innovative products, smart marketing, and aggressive distribution
have enabled fledgling private insurance companies to sign up
Indian customers faster than anyone expected. Indians, who had
always seen life insurance as a tax saving device, are now suddenly
turning to the private sector and snapping up the new innovative
products on offer. Some of these products include investment plans
with insurance and good returns (unit linked plans), multi
purpose insurance plans, pension plans, child plans and money
back plans.
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CHAPTER II
PROFILE OFORGANIGATION
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When Dhirubhai embarked on his first business venture, he
had a seed capital of barely US$ 300 (around Rs 14,000). Over
the next three and a half decades, he converted this fledgling
enterprise into a Rs 60,000 crore colossusan achievement
which earned Reliance a place on the global Fortune 500 list,
the first ever Indian private company to do so.
Dhirubhai is widely regarded as the father of Indias capital
markets. In 1977, when Reliance Textile Industries Limited 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.
Undaunted, Dhirubhai managed to convince a large number
of first-time retail investors to participate in the unfolding
Reliance story and put their hard-earned money in the Reliance
Textile IPO, promising them, in exchange for their trust,
substantial return on their investments. It was to be the start of
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one of great stories of mutual respect and reciprocal gain in the
Indian markets.
Under Dhirubhais extraordinary vision and leadership,
Reliance scripted one of the greatest growth stories in corporate
history anywhere in the world, and went on to become Indias
largest private sector enterprise.
Through out this amazing journey, Dhirubhai always kept the
interests of the ordinary shareholder uppermost in mind, in the
process making millionaires out of many of the initial investors
in the Reliance stock, and creating one of the worlds largest
shareholder families.
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ABOUT RELIANCE
Reliance Life Insurance Company Limited is a part of Reliance
Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group.
Reliance Capital is one of Indias leading private sector financial
services companies, and ranks among the top 3 private sector
financial services and banking companies, in terms of net worth.
Reliance Capital has interests in asset management and mutual
funds, stock broking, life and general insurance, proprietary
investments, private equity and other activities in financial
services.
Reliance Capital Limited (RCL) is a Non-Banking Financial
Company (NBFC) registered with the Reserve Bank of India
under section 45-IA of the Reserve Bank of India Act, 1934.
Reliance Capital sees immense potential in the rapidly
growing financial services sector in India and aims to become a
dominant player in this industry and offer fully integrated
financial services.
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Reliance Life Insurance is another step forward for Reliance
Capital Limited to offer need based Life Insurance solutions to
individuals and Corporates.
CORPORATE OBJECTIVE
At Reliance Life Insurance, we strongly believe that as life is
different at every stage, life insurance must offer flexibility and
choice to go with that stage. We are fully prepared and committed
to guide you on insurance products and services through our well-
trained advisors, backed by competent marketing and customer
services, in the best possible way.
It is our aim to become one of the top private life insurance
companies in India and to become a cornerstone of RLI
integrated financial services business in India.
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CORPORATE MISSION
To set the standard in helping our customers manage their
financial future.
BELOW ARE FEW OF THE PLANS THAT ARE OFFERED
BY RELIANCE LIFE INSURANCE
INSURANCE PLANS AVAILABLE
1. Products (Individual Plans)
Savings (Endowment)
2. Reliance Endowment Plan
(formerly Divya Shree)
3. Reliance Special Endowment Plan
(formerly Subha Shree)
4. Reliance Cash Flow Plan
(formerly Dhana Shree)
5. Reliance Child Plan
(formerly Yuva Shree)
6. Reliance Whole Life Plan
(formerly Nithya Shree)
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http://www.reliancelife.co.in/products/ind_REP.asphttp://www.reliancelife.co.in/products/ind_RSEP.asphttp://www.reliancelife.co.in/products/ind_RCFP.asphttp://www.reliancelife.co.in/products/ind_RCP.asphttp://www.reliancelife.co.in/products/ind_RWLP.asphttp://www.reliancelife.co.in/products/ind_REP.asphttp://www.reliancelife.co.in/products/ind_RSEP.asphttp://www.reliancelife.co.in/products/ind_RCFP.asphttp://www.reliancelife.co.in/products/ind_RCP.asphttp://www.reliancelife.co.in/products/ind_RWLP.asp8/9/2019 30879932 Reliance Life Insurance
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13. Reliance Money Guarantee Plan
Tax Benefits
INCOME
TAX
SECTION
GROSS
ANNUAL
SALARY
HOW MUCH
TAX CAN
YOU SAVE?
HDFC
STANDARD
LIFE PLANS
Sec. 80C Across Allincome Slabs
Upto Rs.33,990 saved
on investment
of
Rs. 1,00,000.
All the lifeinsurance plans.
Sec. 80 CCC Across all
income slabs.
Upto Rs.
33,990 saved
on Investment
of
Rs.1,00,000.
All the pension
plans.
Sec. 80 D Across all
income slabs
Upto Rs. 3,399
saved on
Investment of
Rs. 10,000.
All the health
insurance riders
available with the
conventional
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activities. LIC with its central office in Mumbai and seven zonal
offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur
and Bhopal, operates through 100 divisional offices in important
cities and 2,048 branch offices. LIC has 5.59 lakh active agents
spread over the country.
The Corporation also transacts business abroad and has offices in
Fiji, Mauritius and United Kingdom. LIC is associated with joint
ventures abroad in the field of insurance, namely, Ken-India
Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur; and Life Insurance Corporation
(International), E.C. Bahrain. It has also entered into an agreement
with the Sun Life (UK) for marketing unit linked life insurance and
pension policies in U.K.
In 1995-96, LIC had a total income from premium and investments
of $ 5 Billion while GIC recorded a net premium of $ 1.3 Billion.
During the last 15 years, LIC's income grew at a healthy average of
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10 per cent as against the industry's 6.7 per cent growth in the rest
of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people
living below the poverty line, with 50 per cent subsidy in the
premium rates. LIC's claims settlement ratio at 95 per cent and
GIC's at 74 per cent are higher than that of global average of 40 per
cent. Compounded annual growth rate for Life insurance business
has been 19.22 per cent per annum
General Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized and a
government company known as General Insurance Corporation of
India (GIC) was formed by the Central Government in November
1972. With effect from 1 January 1973 the erstwhile 107 Indian
and foreign insurers which were operating in the country prior to
nationalization, were grouped into four operating companies,
namely, (i) National Insurance Company Limited; (ii) New India
Assurance Company Limited; (iii) Oriental Insurance Company
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Limited; and (iv) United India Insurance Company Limited.
(However, with effect from Dec'2000, these subsidiaries have
been de-linked from the parent company and made as independent
insurance companies). All the above four subsidiaries of GIC
operate all over the country competing with one another and
underwriting various classes of general insurance business except
for aviation insurance of national airlines and crop insurance which
is handled by the GIC.
Besides the domestic market, the industry is presently operating in
17 countries directly through branches or agencies and in 14
countries through subsidiary and associate companies.
IN ADDITION TO ABOVE STATE INSURERS THE
FOLLOWING HAVE BEEN PERMITTED TO ENTER
INTO INSURANCE BUSINESS: -
The introduction of private players in the industry has added to the
colors in the dull industry. The initiatives taken by the private
players are very competitive and have given immense competition
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to the on time monopoly of the market LIC. Since the advent of the
private players in the market the industry has seen new and
innovative steps taken by the players in this sector. The new
players have improved the service quality of the insurance. As a
result LIC down the years have seen the declining phase in its
career. The market share was distributed among the private
players. Though LIC still holds the 75% of the insurance sector but
the upcoming natures of these private players are enough to give
more competition to LIC in the near future. LIC market share has
decreased from 95% (2002-03) to 82 %( 2004-05).
1. HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of Indias
leading private life insurance companies, which offers a range of
individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited
(HDFC Ltd.), Indias leading housing finance institution and The
Standard Life Assurance Company, a leading provider of financial
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services from the United Kingdom. Their cumulative premium
income, including the first year premiums and renewal premiums
is Rs. 672.3 for the financial year, Apr-Nov 2005. They have
managed to cover over 11,00,000 individuals out of which over
3,40,000 lives have been covered through our group business tie-
ups.
2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited is a joint venture
that brings together two large forces - Max India Limited, a multi-
business corporate, together with New York Life International, a
global expert in life insurance. With their various Products and
Riders, there are more than 400 product combinations to choose
from. They have a national presence with a network of 57 offices
in 37 cities across India.
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3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture
between ICICI Bank, a premier financial powerhouse and
Prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). The
company has a network of about 56,000 advisors; as well as 7 banc
assurance and 150 corporate agent tie-ups.
4. Om Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
5.Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a joint venture between
Aditya Birla Group and Sun Life financial Services of Canada.
Tata AIG Life Insurance Company Ltd.
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SBI Life Insurance Company Limited
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.
Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint
venture between Bajaj Auto Limited and Allianz AG of Germany.
Both enjoy a reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory
and Development Authority (IRDA) certificate of Registration
(R3) on May 2nd, 2001 to conduct General Insurance business
(including Health Insurance business) in India. The Company has
an authorized and paid up capital of Rs 110 crores. Bajaj Auto
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holds 74% and the remaining 26% is held by Allianz, AG,
Germany.
2. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a joint
venture between ICICI Bank Limited and the US-based $ 26
billion Fairfax Financial Holdings Limited. ICICI Bank is India's
second largest bank, while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance,
reinsurance, insurance claims management and investment
management.
Lombard Canada Ltd, a group company of Fairfax Financial
Holdings Limited, is one of Canada's oldest property and casualty
insurers. ICICI Lombard General Insurance Company received
regulatory approvals to commence general insurance business in
August 2001.
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3. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture
company, formed from the Tata Group and American International
Group, Inc. (AIG). Tata AIG combines the strength and integrity
of the Tata Group with AIG's international expertise and financial
strength. The Tata Group holds 74 per cent stake in the two
insurance ventures while AIG holds the balance 26 per cent stake.
Tata AIG General Insurance Company, which started its operations
in India on January 22, 2001, offers the complete range of
insurance for automobile, home, personal accident, travel, energy,
marine, property and casualty, as well as several specialized
financial lines.
2.3 Reliance Policies
(1) Reliance Children Plans
What could make you happier than knowing, that your child'sfuture is secure? Nothing, we suppose. Which is why, Reliance
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Life Insurance brings to you Reliance Secure Child Plan, a unit-linked Insurance Plan, that gives you the freedom to enjoy todaywith your child, because his tomorrow is in safe hands.
Do you see your child becoming a trailblazer? Will they create the ultimate symphony or give sports a new
dimension?
Our children may just be the ones to end the arms race and wipeout poverty from the face of the Earth. But for them to be able toaim for the skies, YOU NEED TO ACT NOW!
Introducing Reliance Secure Child Plan - a unique life insurance
cum savings plan. secure the future of your child.
Key FeaturesInsurance cover on the life of childYour child is completely protected - we will continue to
pay the premiums even if you are not aliveLife time income to child in the event of disability
Return Shield option to protect your investment returnsLiquidity in the form of partial withdrawalsCapital guarantee available on maturity and on death ofthe child for basic and top-up premiumsOption to package with Accidental Death and Total andPermanent Disablement Rider, Critical Conditions Riderand Term Life Insurance Benefit Rider.
(2)Reliance Health + Wealth Policy
UNDER THIS PLAN THE INVESTMENT RISK IN THEINVESTMENT PORTFOLIO IS BORNE BY THEPOLICYHOLDER.
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There are times when late working hours take precedence overyour health check-ups. And there are times when a visit to thedoctor seems more important than dividends on your shares. In therat race to make money, we often forget to take care of ourselves.
We understand this predicament. Here is a plan that will ensurethat your wealth keeps increasing constantly and yet your healthdoes not take a backseat. The Reliance Wealth Health Plan. A planthat gives you the benefits of wealth bhi. health bhi.
Life changes. And as it does, so do your priorities. After all, thecircumstances of your life can determine the type of healthcoverage you need.
India has made rapid strides in the health sector. SinceIndependence, life expectancy has gone up markedly and survivalrates have also increased, still critical health issues remain.Infectious diseases continue to claim a large number of lives.
Reliance Wealth + Health Plan, a health insurance planunderwritten by Reliance Life Insurance Company Limited, is
designed to work in conjunction with contributions towardssavings.
Key FeatureA Unit Linked plan with Unique Savings ComponentTwin benefit of market linked return and health protectionChoose from two different plan optionsFlexibility to take care of your familys health
Flexibility to switch between funds / plan optionsOption to pay Top-ups
(3) Reliance Pension Policy
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UNDER THIS PLAN THE INVESTMENT RISK IN THEINVESTMENT PORTFOLIO IS BORNE BY THEPOLICYHOLDER.
Retirement means different things to different people, while somewant to relax and take a trip around the world, some want to startup a venture of their own, and pursue a dream harnessed for years.The power to make your autumn years special lies only with you.The Reliance Super Golden Years Plan gives you the power andthe right kind of solution - A retirement plan that allows you tosave systematically and generate the much-needed corpus to makeyour olden years look golden.
Key Features Reliance Pension Policy :Invest systematically and secure your golden yearsA flexible unit-linked pension product that is differentfrom traditional life insurance products with Vesting Age
between 45 & 70 yearsEight different investment funds to choose fromFlexibility to switch between funds
Option to pay Regular, Single as well as Top-uppremiumsFlexibility to advance / extend your Vesting AgeTax free commutation up to one third of Fund Value atVesting Age
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CHAPTER III
OBJECTIVES OF STUDY
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The main of the present study of is accomplish the followingobjective.
Proper understanding and analysis of life insurance
industry.
To know about brand awareness of Kotak Life
Insurance and customers preference about Kotak Life
Insurance.
According the market survey come know about how
much potential of insurance market in our city.
And base on analysis of the result thus obtained make a
report on that research.
Training aims at recruiting maximum number of Life
Advisors and to Sell the maximum policies for the
company and bring the business for the company which
ever is going at the particular point of time.
As the Kotak Life Insurance well reputed company in
India its great chance for me to observed different
products launch by other competitor companies like
ICICI prudential, Bajaj alliance ,LIC, Max New York
life etc. In all, it is to understand the overall working ofthe Life insurance 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.
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CHAPTER IV
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
TITLE:
To determine customer-buying behavior with a focus on market
segmentation for Reliance Life Insurance.
TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with
studying the buying pattern in the insurance industry with a
special focus on Reliance life Insurance. The various segments of
the markets divided in terms of Insurance Needs, Age groups ,
Satisfaction levels etc will also studied.
OBJECTIVE
Objective One
To determine reasons behind opting for an insurance.
To provide the company with information of customer's
Insurance policy if they have any and reasons for opting for
that particular policies.
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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
other insurance agent.
To study the types of benefits provided by insurance
services.
To determine the use of Internet for valuable information
and decision-making process.
SCOPE OF THE STUDY
A big boom has been witnessed in Insurance Industry in recent
times. A large number of new players have entered the market and
are vying to gain market share in this rapidly improving market.
The study deals with Reliance in focus and the various segments
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that it caters to. The study then goes on to evaluate and analyse the
findings so as to present a clear picture of trends in the Insurance
sector.
SIGNIFICANCE OF THE STUDY
SIGNIFICANCE TO THE INDUSTRY :
This is a limited study which takes into consideration the responses
of 100 people. This data can be explorated to take in the trends
across the industry. The significance for the industry lies in
studying these trends that emerge from the study. It is a rapiddly
changing and evolving sector. People are only beginning to wake
up to its vast possibilities. A study like this can attempt to guide
the future of the industry based on current trends.
SIGNIFICANE FOR THE RESEARCHER :
To facilitate and provide all the useful informtaion of the studt, the
company, the insurance industry and also provide marketing ways,
methods of reliance life insurance.
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RESEARCH DESIGN
NON-PROBABILITY
EXPLORATORY & DISCRIPTIVE EXPERIMENTAL
RESEARCH
The research is primarily both exploratory as well as descriptive in
nature. The sources of information are both primary & secondary.
A well-structured questionnaire was prepared and personal
interviews were conducted to collect the customers perception and
buying behavior, through this questionnaire.
SAMPLING METHODOLOGY
SamplingTechnique:
Initially, a rough draft was prepared keeping in mind the objective
of the research. A pilot study was done in order to know the
accuracy of the Questionnaire. The final Questionnaire was arrived
only after certain important changes were done. Thus my sampling
came out to be judemental and convinent
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2. Some respondents were reluctant to divulge personal
information which can affect the validity of all responses.
3. In a rapidly changing industry, analysis on one day or in one
segment can change very quickly. The environmental changes
are vital to be considered in order to assimilate the findings.
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CHAPTER V
RESULT ANALYSIS
&
INTERPRETATION
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DATA ANALYSIS & INTERPRETATION
DATA GIVES PREFERENCE OFRESPONDENTS OF INSURANCE COMPANIES
COMPANYS NAME
NO.OF
RESPONDEN
T
SHARE (%)
L.I.C. 78 78
RELIANCE LIFE
INSURANCE
3 3
ICICI
PRUDENTIAL10 10
SBI LIFE 7 7
HDFC 2 2
TOTAL 100 100
78
3
10
7 2
LIC
REL
ICICI
SBI
HDFC
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INTERPRETATION
78% of the people contacted prefer LIC policy to any other
and therefore it is ranked no.1 by that percent of respondents.
DATA GIVES BENEFITS OF INSURANCE
PERCEIVED BY RESPONDENTS
BENEFITS
NO.OF
RESPONDEN
TS
SHARE (%)
Cover FutureUncertainty
55 55
Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100
50
55%
20%
25%Cover Future
Uncertainty
Tax Deductions
Future Investment
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INTERPRETATION
55% of the respondents believe that covering future
uncertainty is the biggest benefit of an insurance policy.
Whereas, 20% and 25% of them believe that the other
benefits are Tax deduction and future investments
respectively.
DATA PROVIDES FEATURES OF INSURANCE
POLICY THAT ATTRACTED RESPONDENTS
FEATURE NO.OF
RESPONDEN
TS
SHARE
(%)
Money Back Guarantee 15 15Larger Risk Coverance 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Companys Reputation 11 11
TOTAL 100 100
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FEATURES OF INSURANCE POLICY
15%
37%
7%
11%
30%
MONEY BACK
GUAARENTEE
LARGER RISK
COVERANCE
EASY ACCESS TO
AGENTS
LOW PREMIUM
REPUTATION OF
COMPANY
INTERPRETATION
Majority of the respondent (37%) found Larger risk
coverance as the most attracted feature of the all.
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DATA PROVIDES NUMBER OF INSURANCE
POLICY TYPE RESPONDENTS
POLICY TYPE NO. OF
RESPONDENT
S
SHARE (%)
LIFE POLICY 75 75
NON LIFEPOLICY
25 25
BOTH 45 45
NATURE OF POLICY
75
25
45
LIFE
POLICYNON LIFE
POLICYBOTH
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INTERPRETATION
75% of the respondents have Life Insurance Policy while
45% have both. (The % is calculated out of 280 positive
response)
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DATA GIVES PEOPLE PERCEPTION ABOUT
INSURANCE
RESPONSE NO. OF
RESPONDENT
S
SHARE
(%)
A saving tool 81 81%
A tax saving device 74 74%
A tool to protect yourfamily
100 100%
81
74
100
SAVING
TOOL
TAX SAVING
TOOL
FAMILY
INTERPRETATION
81% of the respondents have perception of Insurance
being a saving tool.
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And 74% of the respondents have perception of Insurance
being a tax saving device.
But 100% of the respondents are with the view that
Insurance is a tool to protect your family.
DATA SHOWS PEOPLES HAVING INSURANCE
RESPONSE NO. OF
RESPONDENTS
SHARE
(%)
Yes 70 70%
No 30 30%
Total 100 100%
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INTERPRETATION
Of the sample size of 400 surveyed respondents 70% of
the respondents are having Insurance policy.
30% of the respondents are either not having any
Insurance policy at present or their policy is already matured.
And at present 100% of the respondents are with the view
that Insurance is a tool to protect your family.
DATA SHOWS BUYING PROCESS OF THE
PEOPLE
57
70%
30%
Yes
No
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BUYING PROCESS NO. OF
RESPONDEN
TS
SHARE
(%)
Customer approachedInsurancecompany/Agent
45 45%
Company/agentapproached customer
55 555
Total 100 100%
INTERPRETATION
44.5% of the respondents approached the Insurance
Company / Agent.
58
55%45%
Customer approached Insurance company/Agent
Company/agent approached customer
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Whereas, 55.5% of the respondents were approached by
the Company /Agent.
DATA SHOWS REASONS BEHIND FOR
INSURANCE
RESPONSE NO. OF
RESPONDENT
S
SHARE (%)
Tax saving 80 80%
Saving / Investment 80 80.%
Family protection 100 100%
INTERPRETATION
59
80
100
80
Slice 1 Slice 2 Slice 3
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80.71% of the Respondents opted for Insurance for tax
saving benefits.
80.71% of the Respondents opted for saving /
Investments.
But all of them, i.e. 100% of the respondents have opted
for insurance for their family protection.
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DATA SHOWS SATISFACTION OF
RESPONDENTS WITH RESPECT TO POLICY
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
Satisfied 60 60%
Not satisfied 40 40%
Not Responded 0 0.0%
Total 100 100%
INTERPRETATION
60% of the respondents are more or less satisfied with
their existing policy.
61
0%
40%
60%
Satisfied Not satisfied Not Responded
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40% of the respondents are not satisfied with their
existing policy.
In this case all of those who have taken a policy have
responded.
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DATA SHOWS SATISFACTION OF
+RESPONDENTS WITH RESPECT TO SERVICE
AGENT
RESPONSE NO. OF
RESPONDEN
TS
SHARE
(%)
Satisfied 45 45%
Not satisfied 55 55%
Not Responded 0 0.0%
Total 100 100%
INTERPRETATION
63
55.00%45.00%
Satisfied Not satisfied
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45% of the respondents are satisfied with their existing
service agent.
55% of the respondents are not satisfied with their
existing insurance agent.
All of those who have taken a policy have responded.
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DATA SHOWS NUMBER OF RESPONDENTS
PAYING TAX
RESPONSE NO. OF
RESPONDENTS
SHARE
(%)
Paying tax 100 100%
Not paying tax - 0%
Total 100 100%
INTERPRETATION
Of the sample size of 400 respondents, all the respondents
are paying tax.
65
0%
100%
Paying tax Not paying tax
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DATA SHOWS RESPONDENTS INVESTMENTS
FOR TAX SAVING
INVESTMENTS NO. OF
RESPONDENT
S
SHARE (%)
LIC 51 51%
NSC 33 33%
Bonds 32 32%
PPF 25 25%PF 21 21%
EPF 11 11%
INTERPRETATION
66
33
32
25
2151
LIC NSC BOND PPF PF EPF
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51% of the respondents save their tax by investing in LIC,
which is the highest among all Investment. This shows that
most people for getting taxes benefits invest in LIC.
33.25% of the respondents do their tax saving by
investing in NSC.
32.25% of the respondents to their tax saving by investing
in bonds.
DATA SHOWS RESPONDENTS PERCEPTION
ABOUT BEST FORM OF INVESTMENT FOR
SECURING THEIR FUTURE
NO. OF
RESPONDEN
TS
SHARE (%)
Fixed Assets 75 75%
Bank deposits 11 11%
Jewellery 25 25%
Securities i.e. bonds, MFs 40. 40%
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Shares 10 10%
Insurance 70 70%
INTERPRETATION
75.25% of the respondents as with the view that Fixed
Assets is the best form of investment for securing their future.
70.5% of the respondents are with the perception that
Insurance is the best form of investment for securing their
future, which is one of the highest and this shows that insurance
is an important key for securing your future.
DATA SHOWS WHAT PEOPLE INTENT TO GAIN
FROM THEIR INVESTMENT
68
11
2540
10
7075
Fixed Assets
Bank deposits
Cash &
JewellerySecurities i.e.
bonds, MFsShares
Insurance
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RESPONSE NO. OF
RESPONDEN
TS
SHARE (%)
Saving & Returns 100 100%Security 90 90%
Tax benefits 71. 71.%
INTERPRETATION
100% of the respondents intent to gain saving and returns
from their investment.
69
90
71
100
Saving & Returns Security Tax benefits
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90% of the respondents intent to gain security from their
investments.
Whereas, 71.75% of the respondents intent to gain tax
benefits from their investments.
DATA GIVES PEOPLES PERCEPTION ON
APPROPRIATE AGE FOR BUYING INSURANCE
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 60 60%
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DATA SHOWS PEOPLE OPINION ABOUT INDIAN
INSURANCE COMPANIES
RESPONSE NO. OF
RESPONDENT
S
SHARE (%)
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%Satisfactory 24 24%
Good 10 10%
Very good 0 0%
72
2926
24
10 0
Inflexible plans Non user friendlyUnsatisfactory services Non AggressiveSatisfactory GoodVery good
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INTERPRETATION
67% of the respondents have the opinion that Indian
Insurance Companies 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
Insurance companies are Non-aggressive.
24% of the respondents feel that products and services of
Indian Insurance companies is Satisfactory.
Whereas only 10.25% feel that it is Good enough.
And according to the data, no single person has felt that it
is very good.
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DATA SHOWS WHAT PEOPLE WOULD LOOK
FOR IN AN INSURANCE COMPANY
RESPONSE NO. OF
RESPONDE
NTS
SHARE
(%)
A trusted name 82 82%
Friendly service &responsiveness
71 71%
Good plans 81 81%
Accessibility 49 49%
74
71
81
49
82
A trusted name
Friendly service & responsiveness
Good plans
Accessibility
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INTERPRETATION
82% customers look for a Trusted name in a company for
insurance.
81.5% customers look for a good plan in a company for
insurance.
Friendly service & responsiveness and Accessibility are
also important factors looked by customers in a company.
DATA SHOWS PEOPLE PLANNING FOR NEW
INVESTMENTS
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
Planning 87 87%
Not planning 13 13%
Total 100 100%
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INTERPRETATION
Only 12.5% of the customers contacted are not planning
for new investments presently.
Whereas, 87.5% of the customers are still planning for
new investments this can be a great potential for Reliance Life
Insurance to take them on their favor.
76
87.0%
13.0%
Planning Not planning
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DATA SHOWS PEOPLE INTERESTED IN GOING
FOR INSURANCE IF A SERVICE PROVIDER AWAY
FROM THE CITY OFFERS BETTER SERVICE &
PRODUCTS
RESPONSE NO. OF
RESPONDEN
TS
SHARE (%)
Yes 43 43%
No 44 44%
Uncertain 13 13%
Total 100 100%
INTERPRETATION
77
43%
44%
13%
Yes No Uncertain
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The interested customers i.e. 43% are ready to go for insurance
even away from a city if services and products are worthwhile,
which again is a good prospect (potential) for Reliance LifeInsurance to take them on their favor.
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CHAPTER VI
CONCLUSION
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CONCLUSION
Our exhaustive research in the field of Life Insurance threw up
some interesting trends which can be seen in the above analysis. A
general impression that we gathered during Data collection was the
immense awareness and knowledge among people about various
companies and their insurance products. People are beginning to
look beyond LIC for their insurance needs and are willing to trust
private players with their hard earned money.
People in general have been impression by the marketing and
advertising campaigns of insurance companies. A high penetration
of print , radio and Television ad campaigns over the years is
beginning to have its impact now.
The general satisfaction levels among public with regards to policy
and agents still requires improvement. But therein lays the
opportunity for a relative new comer like ING. LIC has never been
known for prompt service or customer oriented methods and
Reliance can build on these factors.
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CHAPTER VII
SUGGESTION
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Suggestion
According the survey only 42% people are insured in
Bareilly so reaming other part is potential for insurance
sector.
Among that 42% people who having insurance, they
have insurance 40% for self 28%for spouse 21% for
children and 18% for their parents and 11% for all
family member, also its very help full for insurance
sector so they should take necessary step for capture
this potential.
Only 42% people having insurance in Bareilly in that
42% there are 82 % people are under insured and other
18% people are fully insured according to their incomeso that is also plus point for insurance sector to capture
the market
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CHAPTER VIII
QUESTIONNAIRE
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QUESTIONNAIRE
1. ARE YOU EMPLOYED?
YES NO
If YES, only then proceed
2. DO YOU HAVE ANY INSURANCE POLICY?
YES NO
3. WHICH INSURANCE POLICY DO YOU HAVE?
LIFE NON-LIFE BOTH
4. WHICH COS INSURANCE POLICY YOU PREFER THE
MOST? (RANK THEM)
a) LIC
b) ICICIPRUDENTIAL
c) SBI LIFE INSURANCE
d) ING VYSYA LIFE
e) RELIANCE LIFE INSURANCE
f) TATA AIG LIFE
g) ANY OTHER ________( Specify)
5. FOR HOW MANY YEARS DO YOU HAVE
INSURANCE POLICY? (Please Tick)
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a)
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a)
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16.WHICH IS THE BEST FORM OF INVESTMENTS?
(RANK THEM)
a) FIXED ASSETS
b) BANK DEPOSITS
c) JEWELLERY
d) SECURITIES, i.e. Bonds, MFs
e) SHARES
f) INSURANCE
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17. WHAT DO YOU INTENT TO GAIN FROM
INVESTMENTS?
a) SAVING & RETURNS
b) SECURITY
c) TAX BENIFITS
18. WHATS THE RIGHT AGE TO BUY INSURANCE?
a) AFTER 25 Yrs
b) AFTER 35 Yrs
c) AFTER 45 Yrs
d) ANYTIME
19.
HOW WOULD YOU RATE INDIAN INSURANCECOs?
a) RIGID PLANS
b) NON-USER FRIENDLY
c) UNSATISFATORY SREVICES
d) NON-AGGRESSIVE
e) SATISFACTORY
f) GOOD
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CHAPTER IX
BIBLIOGRAPHY
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BIBLIOGRAPHY
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:
93
http://www.cifainsurance.com/http://www.cifainsurance.com/http://www.moneyoutlook.com/http://www.moneyoutlook.com/http://www.insurance.ind.com/http://www.insurance.ind.com/http://www.cifainsurance.com/http://www.cifainsurance.com/http://www.moneyoutlook.com/http://www.moneyoutlook.com/http://www.insurance.ind.com/http://www.insurance.ind.com/8/9/2019 30879932 Reliance Life Insurance
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REPORT: ISSUES & CHALLENGES FACING THE
INSURANCE INDUSTRY. Dec2005.
BRIEF PROFILE OF LIC, INDIADec 2006.
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