A Project Report on the Topic of
“Sales and Distribution of Financial Product”
In
Submitted In Partial Fulfillment
Of the
Requirement of Master Degree in Business Administration
(2008 – 2010)
SUBMITTED BY
SUMIT MIDHA
MBA IInd SEMESTER
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 1
Serial No. Topics Page No.
1. PERFACE 4
2. ACKNOWLEDGEMENT 6
3. DECLARATION 7
4. SCOPE OF THE STUDY 8
5. EXECUTIVE SUMMAR 9
6. THE INSURANCE INDUSTRY IN INDIA AN
OVERVIEW 10
7. HISTORICAL PERSPECTIVE 11
8. KEY MILESTONE 13
9. INDUSTRY REFORMS 14
10. PRESENT SCENARIO LIFE INSURANCE INDUSTRY
IN INDIA 15
11. LIFE STAGE IN LIFE INSURANCE 17
12. NEED ANALYSIS IN LIFE INSURANCE 18
13. LIFE STAGE EXAMPLE 19
14. COMPANY PROFILE 20
15. FOUNDER 21
16. BOARD OF DIRECTORS 23
17. ABOUT RELIANCE 26
18. CORPORATE OBJECTIVES 27
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19. CORPORATE MISSION 28
20. OTHER COMPETITIORS 31
21. RELIANCE POLICIES 38
22. OBJECTIVE OF STUDY 44
23. RESEARCH METHODOLOGY 45
24. MARKETING STRATEGIES OF THE
COMPANY 49
25. RESULT ANALYSIS & INTERPRETATION 50
26. CONCLUSION 73
27. SUGGESTION 74
28. QUESTIONNAIR 75
29. BIBLIOGRAPHY 80
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The liberalization of the Indian insurance sector has been the
subject of much heated debate for some years. The policy
makers where in the catch 22 situation wherein for one they
wanted competition, development and growth of this insurance
sector which is extremely essential for channeling the
investments in to the infrastructure sector. At the other end the
policy makers had the fears that the insurance premium, which
are substantial, would seep out of the country; and wanted to
have a cautious approach of opening for foreign participation in
the sector.
As one of the rare occurrences the entire debate was put on the
back burner and the IRDA saw the day of the light thanks to the
maturing polity emerging consensus among factions of different
political parties. Though some changes and some restrictive
clauses as regards to the foreign participation were included
the IRDA has opened the doors for the private entry into
insurance.
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
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 4
under the realms of the possibilities and speculation. What is
the likely impact of opening up India’s insurance sector?
The large scale of operations, public sector bureaucracies and
cumbersome procedures hampers nationalized insurers.
Therefore, potential private entrants expect to score in the
areas of customer service, speed and flexibility. They point out
that their entry will mean better products and choice for the
consumer. The critics counter that the benefit will be slim,
because new players will concentrate on affluent, urban
customers as foreign banks did until recently. This seems to be
a logical strategy. Start-up costs-such as those of setting up a
conventional distribution network-are large and high-end niches
offer better returns. However, the middle-market segment too
has great potential. Since insurance is a volumes game.
Therefore, private insurers would be best served by a middle-
market approach, targeting customer segments that are
currently untapped
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I would like to thank my project guide Mr. SUMIT NAGPAL ,
Sales Development Manager RELIANCE Life Insurance, Malout
for guiding me through my summer internship and research
project. His encouragement, time and effort are greatly
appreciated.
I would like to thank Prof. JASNOOR KHERA, for supporting
me during this project and providing me an opportunity to learn
outside the class room. It was a truly wonderful learning
experience.
I would like to dedicate this project to my parents. Without their
help and constant support this project would not have been
possible.
Lastly I would like to thank all the respondents who offered
their opinions and suggestions through the survey that was
conducted by me in Malout.
Once again my gratitude to the RELIANCE Life insurance. For
their kind co-operation.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 6
I SUMIT MIDHA DOING MBA BATCH 2008-10 of “SAS INSTITUTE
OF IT AND RESEARCH, MOHALI” hereby declare that the
summer training report entitled “INSURANCE SECTOR” IN
RELIANCE LIFE INSURACNE is an original word and the same
has not been submitted to any other institute for the award of
any other degree.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 7
Signature of candidate
SUMIT MIDHA
The scope of the study refers to the job that to know about the
activities of the organization. The study means that the analysis
of the products of the company on which he/she has to focus.
During the summer training the volunteer need to find out the
corporate strategies of the running company and The mile stone
which the company has covered during its journey. In the summer
training, it is necessary for the student that he /she involve with
the experience guys to get the knowledge about the company.
That is how the company has got the success, Or if it is going in
the loss, why.
In my training period I have found that the reliance group is the
biggest group in Indian companies. I felt that I can learn the more
in the Reliance Life Insurance.
Reliance Life Insurance is the part of the Reliance Capital Limited
which is a growing company in the financial products.
Reliance Anil Dhirubhai ambani group is also deals in
communication, energy, natural resources, media, and
entertainment, healthcare and infrastructure.
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In today’s corporate and competitive world, I find that
insurance sector has the maximum growth and potential as
compared to the other sectors. Insurance has the maximum
growth rate of 70-80% while as FMCG sector has maximum 12-
15% of growth rate. This growth potential attracts me to enter
in this sector and RELIANCE LIFE INSURANCE has given me the
opportunity to work and get experience in highly competitive
and enhancing sector.
The success story of good market share of different
market organizations depends upon the availability of the
product and services near to the customer, which can be
distributed through a distribution channel. In Insurance
sector, distribution channel includes only agents or agency
holders of the company. If a company like RELIANCE LIFE
INSURANCE, TATA AIG, MAX etc have adequate agents in
the market they can capture big market as compared to
the other companies.
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Agents are the only way for a company of Insurance sector
through which policies and benefits of the company can be
explained to the customer.
With the largest number of life insurance policies in force in the
world, Insurance happens to be a mega opportunity in India. It’s a
business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 1560.41 billion (for the financial
year 2006 – 2007). Together with banking services, it adds about
7% to the country’s Gross Domestic Product (GDP). The gross
premium collection is nearly 2% of GDP and funds available with
LIC for investments are 8% of the GDP.
Even so nearly 65% of the Indian population is without life
insurance cover while health insurance and non-life insurance
continues to be below international standards. A large part of our
population is also subject to weak social security and pension
systems with hardly any old age income security
A well-developed and evolved insurance sector is needed for
economic development as it provides long term funds for
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infrastructure development and strengthens the risk taking ability
of individuals. It is estimated that over the next ten years India
would require investments of the order of one trillion US dollars.
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.
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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.
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
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companies- National Insurance Company, New India Assurance
Company, Oriental Insurance Company and United India
Insurance Company. These were subsidiaries of the General
Insurance Company (GIC).
1912: The Indian Lifesss 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
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1956- with a capital contribution of Rs. 5 crore from the
Government of India.
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
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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.
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
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period has further come down to 75 percent, while the private
players have grabbed over 24 percent.
With the opening up of the insurance industry in India many
foreign players have entered the market. The restriction on
these companies is that they are not allowed to have more than
a 26% stake in a company’s ownership.
Since the opening up of the insurance sector in 1999, foreign
investments of Rs. 8.7 billion have poured into the Indian
market and 19 private life insurance companies have been
granted licenses.
Innovative products, smart marketing, and aggressive
distribution have enabled fledgling private insurance
companies to sign up Indian customers faster than anyone
expected. Indians, who had always seen life insurance as a tax
saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer. Some of
these products include investment plans with insurance and
good returns (unit linked plans), multi – purpose insurance
plans, pension plans, child plans and money back plans.
(www.wikipedia.com).
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18-25 (Unmarried)
30-45 years Couples with children
45 yrs and above Matured couple Retire
d
25-30 Marrid couples with no kids
No dependents/ liabilities
therefore need for insurance is
less
Introduction of dependents. Start
of financial planning – balance
between asset creation & protection
Peak earning age range. High asset
creation & build up of liabilities. Critical
stage for dependents Asset base build
up & liabilities reduced/ taken
care of. Need for retirement
planning more than protection.
Need for protection low.
Greater need for regular income
flow.
Endowment / ULIP’s Endowment / ULIP’s + Term Annuities
At each stage , requirements, responsibilities and Financial Needs differ
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AGE STATUS INSURANCENEEDS
SUGGESTED PRODUCTS
18yrs - 25yrs Unmarried1.Go on a holiday2.Buy a new Car3.Set up a new house4.Set up Interiors5.Buy jewellery
Short Term Endowment Product
25yrs -30yrs Married
1.High Debt, high expenditure Phase2.Family dependency on your income3.Low accumulated wealth4.Need for Planning Requirement
Temporary term or whole life Product
30yrs - 45yrs Matured couple
1.Retirement Planning2.Wealth transfer or saving vehicles3.Returns on investment4.Opting for guaranteed Product
Profits or Unit Linked Endowment/Deferred annuities
60yrs and above
Post Retirement
1.Protection in case you live long2.Protection for spouse in case of death3.Wealth accumulation for children
1.Single Premium annuities2.Long term care products3.Whole life products
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Hello, I am Philip, sailor. Have seen the world. Always on cruise and keep worrying about family and the loans. I need financial Protection if I do not return from one voyage
Savera has just come to our lives. As proud parents, We need to protect her as well as create her own financial standing
Endowment
Term
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Few men in history have made as dramatic a contribution to
their country’s economic fortunes as did the founder of
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 21
Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a
legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way
of describing the true genius of Dhirubhai: The corporate
visionary, the unmatched strategist, the proud patriot, the
leader of men, the architect of India’s capital markets, the
champion of shareholder interest.
But the role Dhirubhai cherished most was perhaps that of
India’s greatest wealth creator. In one lifetime, he built,
starting from the proverbial scratch, India’s largest private
sector enterprise.
When Dhirubhai embarked on his first business venture, he
had a seed capital of barely US$ 300 (around Rs 14,000).
Over the next three and a half decades, he converted this
fledgling enterprise into a Rs 60,000 crore colossus—an
achievement which earned Reliance a place on the global
Fortune 500 list, the first ever Indian private company to do
so.
Dhirubhai is widely regarded as the father of India’s capital
markets. In 1977, when Reliance Textile Industries Limited
first went public, the Indian stock market was a place
patronised by a small club of elite investors which dabbled in
a handful of stocks.
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Undaunted, Dhirubhai managed to convince a large number
of first-time retail investors to participate in the unfolding
Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their
trust, substantial return on their investments. It was to be
the start of one of great stories of mutual respect and
reciprocal gain in the Indian markets.
Under Dhirubhai’s extraordinary vision and leadership,
Reliance scripted one of the greatest growth stories in
corporate history anywhere in the world, and went on to
become India’s largest private sector enterprise.
Through out this amazing journey, Dhirubhai always kept the
interests of the ordinary shareholder uppermost in mind, in
the process making millionaires out of many of the initial
investors in the Reliance stock, and creating one of the
world’s largest shareholder families.
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Anil Dhirubhai Ambani - Chairman
Regarded as one of the foremost corporate leaders of
contemporary India, Shri Anil D Ambani, 50, is the chairman of all
listed companies of the Reliance ADA Group, namely, Reliance
Communications, Reliance Capital, Reliance Energy, Reliance
Natural Resources and Reliance Power. He is also Chairman of the
Board of Governors of Dhirubhai Ambani Institute of Information
and Communication Technology, Gandhi Nagar, Gujarat. Till
recently, he also held the post of Vice Chairman and Managing
Director in Reliance Industries Limited (RIL), India's largest private
sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-
Chief Executive Officer, and was centrally involved in every
aspect of the company's management over the next 22 years. He
is credited with having pioneered a number of path-breaking
financial innovations in the Indian capital markets. He
spearheaded the country's first forays into the overseas capital
markets with international public offerings of global depositary
receipts, convertibles and bonds. Starting in 1991, he directed
Reliance Industries in its efforts to raise over US$ 2 billion. He also
steered the 100-year Yankee bond issue for the company in
January 1997.
Amitabh Jhunjhunwala - Vice-Chairman
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Shri Amitabhabh Jhunjhunwala, 51, is a Fellow Chartered
Accountant. He has vast experience in the areas of financial
services and capital markets. Shri Jhunjhunwala was appointed to
the Board on March 7, 2003 and was appointed Vice Chairman on
March 20, 2006. He is a Director on the Board of Harmony Art
Foundation and Reliance Anil Dhirubhai Ambani Group Pvt. Ltd.
Rajendra Chitale - Independent Director
Shri Rajendra P. Chitale, 46, an eminent Chartered Accountant, is
the Managing Partner of M/s M. P. Chitale & Associates. He is a
Director on boards of the National Securities Clearing Corporation
Limited, Asset Reconstruction Company (India) Ltd, Hinduja TMT
Limited, HTMT Global Solutions Ltd, Ambuja Cement Limited, SME
Rating Agency of India Limited, Ishan Real Estate PLC and
Reliance General Insurance Company Ltd. He is also a member of
the advisory board of the Insurance and Regulatory Authority of
India (IRDA). He has also served on the boards of Life Insurance
Corporation of India, Unit Trust of India, SBI Capital Markets Ltd.,
National Stock Exchange of India Ltd. and Small Industries
Development Bank of India.
Shri C. P. Jain
Shri C.P. Jain, 61, is the former Chairman and Managing Director
of NTPC Ltd. (National Thermal Power Corporation). Shri Jain has
an illustrious career spanning over four decades of contribution in
the fields of financial management, general management,
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 25
strategic management and business leadership. He is a fellow
member of the Institute of Chartered Accountants of India with an
advanced diploma in Management and is a law graduate. Shri C.
P. Jain joined the Board of NTPC in 1993 as Director (Finance), was
elevated as Chairman & Managing Director in September 2000
and superannuated in March 2006. He is Chairman of the Global
Studies Committee of World Energy Council (WEC), world's largest
energy NGO with nearly hundred member-nations. He has been
on several important committees of the Government of India,
latest being the 'Adhoc Group of Experts on Empowerment of
CPSEs'. He was Chairman of Standing Conference of Public
Enterprises (SCOPE) between April 2003 and March 2005. He is a
Director on the Board of IL & FS Infrastructure Development
Corporation and, is also a member of the Audit Advisory Board of
the Comptroller and Audit General of India.
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Reliance Life Insurance Company Limited is a part of Reliance
Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group.
Reliance Capital is one of India’s leading private sector financial
services companies, and ranks among the top 3 private sector
financial services and banking companies, in terms of net
worth. Reliance Capital has interests in asset management and
mutual funds, stock broking, life and general insurance,
proprietary investments, private equity and other activities in
financial services.
Reliance Capital Limited (RCL) is a Non-Banking Financial
Company (NBFC) registered with the Reserve Bank of India
under section 45-IA of the Reserve Bank of India Act, 1934.
Reliance Capital sees immense potential in the rapidly
growing financial services sector in India and aims to become
a dominant player in this industry and offer fully integrated
financial services.
Reliance Life Insurance is another step forward for Reliance
Capital Limited to offer need based Life Insurance solutions
to individuals and Corporates.
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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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“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)
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6. Reliance Whole Life Plan
(formerly Nithya Shree)
Pensions
7. Reliance Golden Years Plan
(formerly Bhagya Shree)
Investments
8. Reliance Market Return Plan
(formerly Kanaka Shree)
9. Risk / Protection
10.Reliance Term Plan
(formerly Raksha Shree)
Products (Group / Corporate Plans)
11. Risk (Protection )
Reliance Group Term Assurance Policy
(formerly Group Term Assurance Policy)
Reliance EDLI Scheme
(formerly EDLI Scheme)
12. Pensions
a. Reliance Group Gratuity Policy
(formerly Group Gratuity Policy)
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b. Reliance Group Superannuation Policy
(formerly Group Superannuation Policy)
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 All income
Slabs
Upto Rs. 33,990
saved on
investment of
Rs. 1,00,000.
All the life insurance
plans.
Sec. 80 CCC Across all income
slabs.
Upto Rs. 33,990
saved on
Investment of
Rs.1,00,000.
All the pension plans.
Sec. 80 D Across all income
slabs
Upto Rs. 3,399
saved on
Investment of
Rs. 10,000.
All the health
insurance riders
available with the
conventional plans.
TOTAL SAVINGS
POSSIBLE
Rs37,389
Rs. 33,990 under Sec. 80C and under Sec. 80 CCC ,
Rs.3,399 under Sec. 80 D, calculated for a male with gross
annual income
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 31
exceeding Rs. 10,00,000.
Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely
tax-free, subject to the conditions laid down therein.
MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIAMAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) was established on 1
September 1956 to spread the message of life insurance in the
country and mobilise people’s savings for nation-building
activities. LIC with its central office in Mumbai and seven zonal
offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur
and Bhopal, operates through 100 divisional offices in
important cities and 2,048 branch offices. LIC has 5.59 lakh
active agents spread over the country.
The Corporation also transacts business abroad and has offices
in Fiji, Mauritius and United Kingdom. LIC is associated with
joint ventures abroad in the field of insurance, namely, Ken-
India Assurance Company Limited, Nairobi; United Oriental
Assurance Company Limited, Kuala Lumpur; and Life Insurance
Corporation (International), E.C. Bahrain. It has also entered
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into an agreement with the Sun Life (UK) for marketing unit
linked life insurance and pension policies in U.K.
In 1995-96, LIC had a total income from premium and
investments of $ 5 Billion while GIC recorded a net premium of
$ 1.3 Billion. During the last 15 years, LIC's income grew at a
healthy average of 10 per cent as against the industry's 6.7 per
cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per
cent in the US).
LIC has even provided insurance cover to five million people
living below the poverty line, with 50 per cent subsidy in the
premium rates. LIC's claims settlement ratio at 95 per cent and
GIC's at 74 per cent are higher than that of global average of
40 per cent. Compounded annual growth rate for Life insurance
business has been 19.22 per cent per annum
General Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized and a
government company known as General Insurance Corporation
of India (GIC) was formed by the Central Government in
November 1972. With effect from 1 January 1973 the erstwhile
107 Indian and foreign insurers which were operating in the
country prior to nationalization, were grouped into four
operating companies, namely, (i) National Insurance Company
Limited; (ii) New India Assurance Company Limited; (iii) Oriental
Insurance Company Limited; and (iv) United India Insurance
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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 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
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the insurance sector but the upcoming natures of these private
players are enough to give more competition to LIC in the near
future. LIC market share has decreased from 95% (2002-03) to
82 %( 2004-05).
1. HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of India’s
leading private life insurance companies, which offers a range
of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited
(HDFC Ltd.), India’s leading housing finance institution and The
Standard Life Assurance Company, a leading provider of
financial services from the United Kingdom. Their 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
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Limited, a multi-business corporate, together with New York Life
International, a global expert in life insurance. With their
various Products and Riders, there are more than 400 product
combinations to choose from. They have a national presence
with a network of 57 offices in 37 cities across India.
3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture
between ICICI Bank, a premier financial powerhouse and
Prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). The
company has a network of about 56,000 advisors; as well as 7
banc assurance and 150 corporate agent tie-ups.
4. Om Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
5.Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a joint venture between
Aditya Birla Group and Sun Life financial Services of Canada.
Tata AIG Life Insurance Company Ltd.
SBI Life Insurance Company Limited
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 36
ING Vysya Life Insurance Company Private Limited
Allianz Bajaj Life Insurance Company Ltd.
Metlife India Insurance Company Pvt. Ltd.
AMP SANMAR Assurance Company Ltd.
Dabur CGU Life Insurance Company Pvt. Ltd.
1. Royal Sundaram Alliance Insurance Company
The joint venture bringing together Royal & Sun Alliance
Insurance and Sundaram Finance Limited started its operations
from March 2001. The company is Head Quartered at Chennai,
and has two Regional Offices, one at Mumbai and another one
at New Delhi.
2. Bajaj Allianz General Insurance Company Limited
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
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 37
110 crores. Bajaj Auto holds 74% and the remaining 26% is
held by Allianz, AG, Germany.
3. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a joint
venture between ICICI Bank Limited and the US-based $ 26
billion Fairfax Financial Holdings Limited. ICICI Bank is India's
second largest bank, while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance,
reinsurance, insurance claims management and investment
management.
Lombard Canada Ltd, a group company of Fairfax Financial
Holdings Limited, is one of Canada's oldest property and
casualty insurers. ICICI Lombard General Insurance Company
received regulatory approvals to commence general insurance
business in August 2001.
4. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited
(Chola-MS) is a joint venture of the Murugappa Group & Mitsui
Sumitomo.
Chola-MS commenced operations in October 2002 and has
issued more than 1.4 lakh policies in its first calendar year of
operations. The company has a pan-Indian presence with
offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore,
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 38
Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh, Kolkata
and Vizag.
5. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture
company, formed from the Tata Group and American
International Group, Inc. (AIG). Tata AIG combines the strength
and integrity of the Tata Group with AIG's international
expertise and financial strength. The Tata Group holds 74 per
cent stake in the two insurance ventures while AIG holds the
balance 26 per cent stake.
Tata AIG General Insurance Company, which started its
operations in India on January 22, 2001, offers the complete
range of insurance for automobile, home, personal accident,
travel, energy, marine, property and casualty, as well as
several specialized financial lines.
(1) Reliance Children Plans
What could make you happier than knowing, that your child's
future is secure? Nothing, we suppose. Which is why, Reliance
Life Insurance brings to you Reliance Secure Child Plan, a unit-
linked Insurance Plan, that gives you the freedom to enjoy
today with your child, because his tomorrow is in safe hands.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 39
Do you see your child becoming a trailblazer?
Will they create the ultimate symphony or give sports a
new dimension?
Our children may just be the ones to end the arms race and
wipe out poverty from the face of the Earth. But for them to be
able to aim for the skies, YOU NEED TO ACT NOW!
Introducing Reliance Secure Child Plan - a unique life insurance
cum savings plan. secure the future of your child.
Key Features
Insurance cover on the life of child
Your child is completely protected - we will
continue to pay the premiums even if you are not
alive
Life time income to child in the event of disability
Return Shield option to protect your investment
returns
Liquidity in the form of partial withdrawals
Capital guarantee available on maturity and on
death of the child for basic and top-up premiums
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 40
Option to package with Accidental Death and Total
and Permanent Disablement Rider, Critical
Conditions Rider and Term Life Insurance Benefit
Rider.
(2)Reliance Health + Wealth Policy
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDER.
There are times when late working hours take precedence over
your health check-ups. And there are times when a visit to the
doctor seems more important than dividends on your shares. In
the rat race to make money, we often forget to take care of
ourselves.
We understand this predicament. Here is a plan that will ensure
that your wealth keeps increasing constantly and yet your
health does not take a backseat. The Reliance Wealth Health
Plan. A plan that gives you the benefits of wealth bhi. health
bhi.Life changes. And as it does, so do your priorities. After all,
the circumstances of your life can determine the type of health
coverage you need.
India has made rapid strides in the health sector. Since
Independence, life expectancy has gone up markedly and
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 41
survival rates have also increased, still critical health issues
remain. Infectious diseases continue to claim a large number of
lives.
Reliance Wealth + Health Plan, a health insurance plan
underwritten by Reliance Life Insurance Company Limited, is
designed to work in conjunction with contributions towards
savings.
Key Feature
A Unit Linked plan with Unique Savings Component
Twin benefit of market linked return and health
protection
Choose from two different plan options
Flexibility to take care of your family’s health
Flexibility to switch between funds / plan options
Option to pay Top-ups
(3) Reliance Pension Policy
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDER.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 42
Retirement means different things to different people, while
some want to relax and take a trip around the world, some
want to start up a venture of their own, and pursue a dream
harnessed for years. The power to make your autumn years
special lies only with you. The Reliance Super Golden Years Plan
gives you the power and the right kind of solution - A
retirement plan that allows you to save systematically and
generate the much-needed corpus to make your olden years
look golden.
Key Features – Reliance Pension Policy :
Invest systematically and secure your golden years
A flexible unit-linked pension product that is
different from traditional life insurance products
with Vesting Age between 45 & 70 years
Eight different investment funds to choose from
Flexibility to switch between funds
Option to pay Regular, Single as well as Top-up
premiums
Flexibility to advance / extend your Vesting Age
Tax free commutation up to one third of Fund
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Value at Vesting Age
(4) Reliance Whole life insurance policy
You’ve always loved your family. As a loving person you want to
be rest assured that they will be happy, even if something were
to happen to you. With Reliance Whole Life Plan you can be
sure that your family will receive that timely financial support
they need.
Go ahead, live your today to the fullest, without a worry about
tomorrow.
Key Features
Insurance protection till age 85
Choice of extending your insurance coverage till
age 99
Convenient Premium Payment Term
Wealth creation through bonus additions
More value for your money by way of High Sum
Assured Rebate Get Sum Assured plus Bonuses in
case of your unfortunate death
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Option to add two Riders – Critical Illness and
Accidental Death Benefit and Total and Permanent
Disablement Rider
Policy Loan available after three full years
premium payment
The main of the present study of is accomplish the following
objective.
Proper understanding and analysis of life insurance
industry.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 45
To know about brand awareness of Reliance Life
Insurance and customer’s preference about Reliance
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 Reliance Life Insurance well reputed company
in India it’s great chance for me to observed different
products launch by other competitor companies like
ICICI prudential, Bajaj alliance ,LIC, Max New York life
etc. In all, it is to understand the overall working of
the Life insurance sector.
The objective behind the project is as follows:
To find the right candidate.
To about their family background, occupation, social
relation, Qualification, Age.
TITLE:
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 46
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.
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.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 47
To study the types of benefits provided by insurance
services.
To determine the use of Internet for valuable information
and decision-making process.
SCOPE OF THE STUDY
A big boom has been witnessed in Insurance Industry in recent
times. A large number of new players have entered the market
and are vying to gain market share in this rapidly improving
market. The study deals with Reliance in focus and the various
segments that it caters to. The study then goes on to evaluate
and analyse the findings so as to present a clear picture of
trends in the Insurance sector.
SIGNIFICANCE OF THE STUDY
SIGNIFICANCE TO THE INDUSTRY :
This is a limited study which takes into consideration the
responses of 100 people. This data can be explorated to take in
the trends across the industry. The significance for the industry
lies in studying these trends that emerge from the study. It is a
rapiddly changing and evolving sector. People are only
beginning to wake up to it’s vast possibilities. A study like this
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 48
can attempt to guide the future of the industry based on
current trends.
SIGNIFICANE FOR THE RESEARCHER :
To facilitate and provide all the useful informtaion of the studt,
the company, the insurance industry and also provide
marketing ways, methods of reliance life insurance.
RESEARCH DESIGN
NON-PROBABILITY
EXPLORATORY & DISCRIPTIVE EXPERIMENTAL
RESEARCH
The research is primarily both exploratory as well as descriptive
in nature. The sources of information are both primary &
secondary.
A well-structured questionnaire was prepared and personal
interviews were conducted to collect the customer’s perception
and buying behavior, through this questionnaire.
SAMPLING METHODOLOGY
SamplingTechnique:
Initially, a rough draft was prepared keeping in mind the
objective of the research. A pilot study was done in order to
know the accuracy of the Questionnaire. The final
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 49
Questionnaire was arrived only after certain important changes
were done. Thus my sampling came out to be judemental and
convinent
Sampling Unit:
The respondants who were asked to fill out questionnaires are
the sampling units. These comprise of employees of MNCs,
Govt. Employees, Self Employeds etc.
Sample size:
The sample size was restricted to only 100, which comprised of
mainly peoples from different regions of Delhi due to time
constraints.
Sampling Area :
The area of the research was New Delhi, India.
LIMITATIONS OF THE RESEARCH
1. The research is confined to a certain parts of Delhi and
does not necessarily shows a pattern applicable to all of
Country.
2. Some respondents were reluctant to divulge personal
information which can affect the validity of all responses.
3. In a rapidly changing industry, analysis on one day or in
one segment can change very quickly. The environmental
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 50
changes are vital to be considered in order to assimilate the
findings.
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SOME OF THE STRATEGIES ADOPTED BY RELIANCE
LIFE INSURANCE COMPANY.
Reliance Life Insurance plans to tap Reliance Communications'
2.5-crore telephony subscriber base to market its products. The
company is considering a series of options to leverage its
relationship with Reliance Communications.
However, a joint product or a co-branded solution would require
approval from the Insurance Regulatory and Development
Authority
Customers of R World, the information and entertainment portal
of Reliance Communications, would also be able to pay
premiums through a bank account, provided the bank is listed
on the network.
Reliance Life Insurance officials, however, offered no comment
when asked whether there would be an arrangement for
payment of commission to Reliance Communications.
As an alternative channel for distribution, insurance companies
usually tie up with banks. In the case of banc assurance, where
there is a corporate agency tie-up, the commission could range
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 52
from 5 per cent to 40 per cent of first-year premium depending
on the commission loaded on to the product at the time of
registration with IRDA.
DATA ANALYSIS & INTERPRETATION
DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES
COMPANY’S NAMENO.OF RESPONDENT
SHARE (%)
L.I.C. 78 78
RELIANCE LIFE INSURANCE
3 3
ICICI PRUDENTIAL 10 10
SBI LIFE 7 7
HDFC 2 2
TOTAL 100 100
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78
310
7
2
LIC
REL
ICICI
SBI
HDFC
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
BENEFITSNO.OF RESPONDENTS
SHARE (%)
Cover Future Uncertainty
55 55
Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100
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55%20%
25% Cover Future Uncer-tainty
Tax Deductions
Future Investment
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 RESPONDENTS
SHARE (%)
Money Back Guarantee
15 15
Larger Risk Coverance
37 37
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55%20%
25% Cover Future Uncer-tainty
Tax Deductions
Future Investment
Easy Access to Agents
7 7
Low Premium 30 30
Company’s Reputation
11 11
TOTAL 100 100
15%
37%
7%
30%
11%
FEATURES OF INSURANCE POLICY
MONEY BACK GUAARENTEE
LARGER RISK COVERANCE
EASY ACCESS TO AGENTS
LOW PREMIUM
REPUTATION OF COMPANY
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 56
INTERPRETATION
Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.
DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS
POLICY TYPE NO. OF RESPONDENTS
SHARE (%)
LIFE POLICY 75 75
NON LIFE POLICY
25 25
BOTH 45 45
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75
25
45
NATURE OF POLICY
LIFE POLICY
NON LIFE POLICY
BOTH
INTERPRETATION
75% of the respondents have Life Insurance Policy while 45% have both. (The % is calculated out of 280 positive response)
DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE
RESPONSE NO. OF RESPONDENT
S
SHARE (%)
A saving tool 81 81%
A tax saving device 74 74%
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A tool to protect your family
100 100%
81
74
100
Chart Title
S A V ING TOOL
TA X S A V ING TOOL FA MILY P ROTE CTION
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 59
INTERPRETATION
81% of the respondents have perception of Insurance being a saving tool.
And 74% of the respondents have perception of Insurance being a tax saving device.
But 100% of the respondents are with the view that Insurance is a tool to protect your family.
DATA SHOWS PEOPLES HAVING INSURANCE
RESPONSE NO. OF RESPONDENTS
SHARE (%)
Yes 70 70%
No 30 30%
Total 100 100%
INTERPRETATION
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 60
70%
30%
Yes
No
Of the sample size of 400 surveyed respondents 70% of the respondents are having Insurance policy.
30% of the respondents are either not having any Insurance policy at present or their policy is already matured.
And at present 100% of the respondents are with the view that Insurance is a tool to protect your family.
DATA SHOWS BUYING PROCESS OF THE PEOPLE
BUYING PROCESS NO. OF RESPONDEN
TS
SHARE (%)
Customer approached Insurance company/Agent
45 45%
Company/agent approached customer
55 555
Total 100 100%
INTERPRETATION
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 61
45%56%
Customer approached Insurance company/Agent
Company/agent approached customer
44.5% of the respondents approached the Insurance Company / Agent.
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%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 62
INTERPRETATION
80.71% of the Respondents opted for Insurance for tax saving benefits.
80.71% of the Respondents opted for saving / Investments.
But all of them, i.e. 100% of the respondents have opted for insurance for their family protection.
DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY
RESPONSE NO. OF RESPONDEN
TS
SHARE (%)
Satisfied 60 60%
Not satisfied 40 40%
Not Responded 0 0.0%
Total 100 100%
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80
80
100
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 64
INTERPRETATION
60% of the respondents are more or less satisfied with their existing policy.
40% of the respondents are not satisfied with their existing policy.
In this case all of those who have taken a policy have responded.
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%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 65
60%
40%
Satisfied Not satisfied Not Responded
INTERPRETATION
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.
DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX
RESPONSE NO. OF RESPONDENT
S
SHARE (%)
Paying tax 100 100%
Not paying tax - 0%
Total 100 100%
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45.00%
55.00%
Satisfied Not satisfied
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100%
Paying tax Not paying tax
INTERPRETATION
Of the sample size of 400 respondents, all the respondents are paying tax.
DATA SHOWS RESPONDENT’S 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%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 68
INTERPRETATION
51% of the respondents save their tax by investing in LIC, which is the highest among all Investment. This shows that most people for getting taxes benefits invest in LIC.
33.25% of the respondents do their tax saving by investing in NSC.
32.25% of the respondents to their tax saving by investing in bonds.
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, 40. 40%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 69
51
3332
25
21
11
LIC NSC BOND PPF PF EPF
MFs
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
RESPONSE NO. OF RESPONDEN
TS
SHARE (%)
Saving & Returns 100 100%
Security 90 90%
Tax benefits 71. 71.%
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100
90
71
Saving & Returns Security Tax benefits
75
11254010
70
Fixed Assets
Bank deposits
Cash & Jewellery
Securities i.e. bonds, MFs
Shares
Insurance
INTERPRETATION
100% of the respondents intent to gain saving and returns from their investment.
90% of the respondent’s intent to gain security from their investments.
Whereas, 71.75% of the respondent’s intent to gain tax benefits from their investments.
DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE
RESPONSE NO. OF RESPONDENTS
SHARE (%)
After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 60 60%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 71
100
90
71
Saving & Returns Security Tax benefits
INTERPRETATION
29% of the respondents are with the view that insurance should be bought after the age of 25 years.
10.5% of the respondents are with the view that insurance should be buyed after the age of 35 years.
Whereas, 60.5% of the respondents are with the view that buying of insurance do not have any thing to do with age i.e. there is no age limitations. It can be purchased any time according to the need.
DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES
RESPONSE NO. OF RESPONDENT
S
SHARE (%)
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory 26 26%
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29%
10.10%61%
After 25 years After 35 years After 45 years Anytime
services
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
Very good 0 0%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 73
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.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 74
67
2926
33
24
10
Inflexible plans Non user friendly Unsatisfactory services Non Aggressive
Satisfactory Good Very good
DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN INSURANCE COMPANY
RESPONSE NO. OF RESPOND
ENTS
SHARE (%)
A trusted name 82 82%
Friendly service & responsiveness
71 71%
Good plans 81 81%
Accessibility 49 49%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 75
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%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 76
82
71
81
49
A trusted name Friendly service & responsiveness Good plansAccessibility
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.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 77
87.0%
13.0%
Planning Not planning
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%
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 78
43%
44%
13%
Yes No Uncertain
INTERPRETATION
The interested customers i.e. 43% are ready to go for insurance even away from a city if services and products are worthwhile, which again is a good prospect (potential) for Reliance Life Insurance to take them on their favor.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 79
Our exhaustive research in the field of Life Insurance threw up
some interesting trends which can be seen in the above
analysis. A general impression that we gathered during Data
collection was the immense awareness and knowledge among
people about various companies and their insurance products.
People are beginning to look beyond LIC for their insurance
needs and are willing to trust private players with their hard
earned money.
People in general have been impression by the marketing and
advertising campaigns of insurance companies. A high
penetration of print , radio and Television ad campaigns over
the years is beginning to have it’s impact now.
The general satisfaction levels among public with regards to
policy and agents still requires improvement. But therein lays
the opportunity for a relative new comer like ING. LIC has never
been known for prompt service or customer oriented methods
and Reliance can build on these factors.
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 80
According the survey only 42% people are insured in Malout 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 Malout in that 42% there are 82 % people are under insured and other 18% people are fully insured according to their income so that is also plus point for insurance sector to capture the market
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 81
1. ARE YOU EMPLOYED?YES NO (If YES, only then proceed)
2. DO YOU HAVE ANY INSURANCE POLICY?YES NO
3. WHICH INSURANCE POLICY DO YOU HAVE?LIFE NON-LIFE BOTH
4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM)
a) LIC
b) ICICIPRUDENTIAL
c) SBI LIFE INSURANCE
d) ING VYSYA LIFE
e) RELIANCE LIFE INSURANCE
f) TATA AIG LIFE
g) ANY OTHER ________( Specify)
5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick)a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______
(Specify)
6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM)
a) COVER FUTURE UNCERTAINITY
b) TAX DEDUCTIONS
c) FUTURE INVESTMENT
d) ANY OTHER _________ (Specify)
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7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM)
a) LOW PREMIUM
b) LARGER RISK COVERANCE
c) MONEY BACK GUARNTEE
d) REPUTATION OF COMPANY
e) EASY ACCESS TO AGENTS
f) ANY OTHER _________ (Specify)
8. YOUR MONTHLY INCOME?
a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)
9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S SCENARIO IS NOT ESSENTIAL?
_____________________________________________________
10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM)
a) A SAVING TOOL
b) A TAX SAVING DEVICE
c) A TOOL TO PROTECT FUTURE
11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?
a) CUSTOMER APPROCHED INSURANCE COs
b) INSURANCE COs APPROCHED CUSTOMER
12. ARE YOU SATISFIED WITH THE POLICY?
a) SATISFIED SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING
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13. ARE YOU SATISFIED WITH THE SERVICE AGENT?
a) SATISFIED SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING
14 DO YOU PAY TAXES?
YES NO
15. WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM)
a) LIC
b) NSC
c) BONDS
d) PPF
e) PF
f) EPF
16.WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM)
a) FIXED ASSETS
b) BANK DEPOSITS
c) JEWELLERY
d) SECURITIES, i.e. Bonds, MFs
e) SHARES
f) INSURANCE
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 84
17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?
a) SAVING & RETURNS
b) SECURITY
c) TAX BENIFITS
18. WHAT’S THE RIGHT AGE TO BUY INSURANCE?
a) AFTER 25 Yrs
b) AFTER 35 Yrs
c) AFTER 45 Yrs
d) ANYTIME
19.HOW WOULD YOU RATE INDIAN INSURANCE COs?
a) RIGID PLANS
b) NON-USER FRIENDLY
c) UNSATISFATORY SREVICES
d) NON-AGGRESSIVE
e) SATISFACTORY
f) GOOD
g) VERY GOOD
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20. ARE YOU PLANNING FOR NEW INVESTMENTS?
PLANNING NOT PLANING
21. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?
a) YES
b) NO
c) UNCERTAIN
THANK YOU
NAME:_________________________
ADDRESS:______________________
______________________________
OCCUPATION:___________________
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 86
1. BOOKS/MAGAZINES REFFERED:
STUDY GUIDE- PRINCILES & PRACTICES OF LIFE /
GENERALINSURANCE, by AIMA.
Books published by INSURANCE INSTITUTE OF INDIA
LIFE-INSURANCE, by Mc GILL
INSURANCEWATCH.
MONEYOUTLOOK.
2. WEBSITES REFFERED:
WWW.RELIANCELIFE.CO.IN
WWW.CIFAINSURANCE.COM
WWW.MONEYOUTLOOK.COM
WWW.INSURANCE.IND.COM
3. REPORTS/ARTICLES REFFERED:
REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY….
Dec2005.
BRIEF PROFILE OF LIC, INDIA…Dec 2006.
REPORT: COPING WITH COMPETITION…Jan2007
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 87
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 88
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