Project Report on

Comparative study of
With other insurance
Brand

SUBMITTED FOR

Partial fulfillment of the requirements of two years full time

Post Graduate Diploma in Management (PGDM)

1
 SCHOOL OF BUSINESS MANAGEMENT

Submitted by

Tarun Kumar Pandit

2K9PGD006

Company Guide Faculty Guide

Ms. Jyoti Kharwar Prof. Umesh Kumar

( Training Manager) (H.O.D., VSBM)
Prof. Neeraj Vijay
Saraswat
(Registrar)

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 Table of Contents

Contents
Preface........................................................................................................................ 5
Certificates................................................................................................................ 6
Acknowledgement................................................................................................. 7
Executive Summary.............................................................................................. 8
Index........................................................................................................................... 9

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 Preface

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 under the realms of the
possibilities and speculation.

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 Acknowledgement

My sincere thanks are due to the management of Reliance Life

Insurance Co. Ltd for having provided the summer internship
opportunity.

I take this opportunity to express my sincere gratitude and

profound regards to Prof. Umesh Kumar (HOD) and Prof. Neeraj Vijay
Saraswat (Registrar) my faculty guide, who has always given me
motivational boost to go and perform. I would further like to thank him
for his persistence to listen to my problems and to give apart solutions.

I would like to thank my company guide Ms. Jyoti Kharwar

(Training Manager) who in spite of his busy schedule has cooperated
with me continuously and indeed, his valuable contribution and
guidance have been certainly indispensable for my project work.

I would also like to thank Mr. Sanjay Sinha (Branch Manager), Mr.
Rakesh Kumar Mondal (Sales Manager), for their invaluable advice and
enlightening my path at every stage of my project and all the senior
executives and every associate of Reliance Life Insurance Co. Ltd,
without their cooperation this project would have been impossible. Last
but not the least, I feel indebted to all those person and organization
who have provided help directly or indirectly in successful completion
of this study.

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 Executive Summary

Anil Dhirubhai Ambani Group (ADAG) announces the acquisition

of 100 percent shareholding in AMP Sanmar Life Insurance Company
Limited. Reliance Life Insurance Company Limited is officially launched
on February 1, 2006. This was after obtaining the required regulatory
approvals from the Registrar of Companies and the Insurance
Regulatory and Development Authority. Reliance Life Insurance is the
part of the Reliance Capital.

Reliance Life Insurance has plenty of plans on the anvil. It has also
118 branches, with strong presence in South and a bouquet of products
catering savings protection and investment need of individuals and
corporate. The head-office of it is at Chennai.

The company has already added 600 employees in addition to the

1000 plus staff of the erstwhile AMP Sanmar Life Insurance Company
Limited. Reliance Life Insurance aims to be the consumer has preferred
life insurer by understanding and meeting his needs.

Think Bigger, Think Better!

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Index

7
 Introduction

Insurance is an upcoming sector, in India the year 2000 was a

landmark year for life insurance industry, in this year the life insurance
industry was liberalized after more than fifty years.
Insurance sector was once a monopoly, with LIC as the only
company, a public sector enterprise. However, nowadays the market
opened up and there are many private players competing in the
market. There are fifteen private lives insurance companies has entered
the industry.
After the entry of these private players, the market share of LIC
has been considerably reduced. In the last five years the private players
is able to expand the market (growing at 30-34% per annum) and has
improved their market share to 28%.
For the past five years, private players have launched many
innovations in the industry in terms of products, market channels and
advertisement of products, agent training and customer services etc.

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 Meaning of Insurance

Insurance may be described as a social device to reduce or

eliminate risk of loss to life and property. Insurance is a collective
bearing of risk. Insurance is a financial device to spread the risks and
losses of few people among a large number of people, as people prefer
small fixed liability instead of big uncertain and changing liability.

Insurance can be defined as a “legal contract between two parties

whereby one party called insurer undertakes to pay a fixed amount of
money on the happening of a particular event, which may be certain or
uncertain.” The other party called insured pays in exchange a fixed sum
known as premium.

Insurance is desired to safeguard oneself and one’s family against

possible losses on account of risks and perils. It provides financial
compensation for the losses suffered due to the happening of any
unforeseen events.

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 Importance of Insurance

Insurance constitutes one of the major segments of the financial

market. Insurance services play predominant role in the process of
financial intermediary. Today insurance industry is one of the most
growing sectors in India. There is lot of potential in the Indian Insurance
Industry.

There are many issues, which require study. The scope of the
study of insurance industry of India would be very great as there are
ongoing developments in the industry after the opening of the sector.

The major issue right now is the hike in FDI (Foreign Direct
Investment) limit from 26% to 49% in the insurance sector.
Government may in near future allow 49% FDI in Insurance. This would
lead to more capital inflow by foreign partners.

Another major issue is the effects on LIC after the entry of private
players in the market. Though market share of LIC has been affected, it
has improved in terms of efficiency.

There are number of other hot topics like penetration of Health

Insurance, Rural marketing of insurance, new distribution channels,
new product ranges, insurance brokers’ regulation, incentive scheme of
development officers of LIC etc. Therefore, it offers lot of scope for
studying the insurance industry.

Right now, the insurance industry has great opportunities in a

country like India or China which huge population. In addition, the
penetration of insurance in India is very low in both life and non-life
segment so there is lot potential to be tapped.

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11
 Meaning of Life Insurance

There are three parties in a life insurance transaction: the insurer, the
insured, and the owner of the policy (policyholder), although the owner
and the insured are often the same person. Another important person
involved in a life insurance policy is the beneficiary. The beneficiary is
the person or persons who will receive the policy proceeds upon the
death of the insured.

Life insurance may be divided into two basic classes – term and
permanent.

I. Term life insurance provides for life insurance coverage for a

specified term of years for a specified premium. The policy does
not accumulate cash value.

II. Permanent life insurance is life insurance that remains in force

until the policy matures, unless the owner fails to pay the
premium when due.

III. Whole life insurance provides for a level premium, and a cash
value table included in the policy guaranteed by the company.
The primary advantages of whole life are guaranteed death
benefits; guaranteed cash values, fixed and known annual
premiums, and mortality and expense charges will not reduce the
cash value shown in the policy.

IV. Universal life insurance (UL) is a relatively new insurance product

intended to provide permanent insurance coverage with greater
flexibility in premium payment and the potential for a higher

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 internal rate of return. A universal life policy includes a cash
account. Premiums increase the cash account.

If you want insurance protection only, and not a savings and

investment product, buy a term life insurance policy.

If you want to buy a whole life, universal life, or other cash value
policy, plan to hold it for at least 15 years.

Canceling these policies after only a few years can more than
double your life insurance costs. Check the National Association of
Insurance Commissioners website (www.naic.org/cis) or your local
library for information on the financial soundness of insurance
companies.

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 History of Life Insurance

Risk protection has been a primary goal of humans and

institutions throughout history. Protecting against risk is what insurance
is all about.

Over 5000 years ago, in China, insurance was seen as a

preventative measure against piracy on the sea. Piracy, in fact, was so
prevalent, that as a way of spreading the risk, a number of ships would
carry a portion of another ship's cargo so that if one ship was captured,
the entire shipment would not be lost.

In another part of the world, nearly 4,500 years ago, in the

ancient land of Babylonia, traders used to bear risk of the caravan trade
by giving loans that had to be later repaid with interest when the goods
arrived safely. In 2100 BC, the Code of Hammurabi granted legal status
to the practice. It formalized concepts of “bottomry” referring to vessel
bottoms and “respondentia” referring to cargo. These provided the
underpinning for marine insurance contracts. Such contracts contained
three elements: a loan on the vessel, cargo, or freight; an interest rate;
and a surcharge to cover the possibility of loss. In effect, ship owners
were the insured and lenders were the underwriters.

Life insurance came about a little later in ancient Rome, where

burial clubs were formed to cover the funeral expenses of its members,
as well as help survivors monetarily. With Rome's fall, around 450 A.D.,
most of the concepts of insurance were abandoned, but aspects of it
did continue through the Middle Ages, particularly with merchant and
artisan guilds. These provided forms of member insurance covering
risks like fire, flood, theft, disability, death, and even imprisonment.

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 During the feudal period, early forms of insurance ebbed with the
decline of travel and long-distance trade. However, during the 14th to
16th centuries, transportation, commerce, and insurance would again
reemerge.

Insurance in India can be traced back to the Vedas. For instance,

yogakshema, the name of Life Insurance Corporation of India's
corporate headquarters, is derived from the Rig Veda. The term
suggests that a form of "community insurance" was prevalent around
1000 BC and practiced by the Aryans.

Moreover, similar to ancient Rome, burial societies were formed

in the Buddhist period to help families build houses, and to protect
widows and children.

Modern Insurance

Illegal almost everywhere else in Europe, life insurance in England

was vigorously promoted in the three decades following the Glorious
Revolution of 1688. The type of insurance we see today owes its roots
to 17th century England. Lloyd is of London, or as they were known
then, Lloyd's Coffee House, was the location where merchants, ship
owners and underwriters met to discuss and transact business deals.

While serving as a means of risk-avoidance, life insurance also

appealed strongly to the gambling instincts of England's burgeoning
middle class. Gambling was so rampant, in fact, that when newspapers
published names of prominent people who were seriously ill, bets were
placed at Lloyd’s on their anticipated dates of death. Reacting against
such practices, 79 merchant underwriters broke away in 1769 and two
years later formed a “New Lloyd’s Coffee House” that became known as
the “real Lloyd’s.” Making wagers on people’s deaths ceased in 1774
when parliament forbade the practice.

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 Insurance moves to America

The U.S. insurance industry was built on the British model. The year
1735 saw the birth of the first insurance company in the American
colonies in Charleston, SC. The Presbyterian Synod of Philadelphia in
1759 sponsored the first life insurance corporation in America for the
benefit of ministers and their dependents. And the first life insurance
policy for the general public in the United States was issued, in
Philadelphia, on May 22, 1761.

But it wasn't until 80 years later (after 1840), that life insurance
really took off in a big way. The key to its success was reducing the
opposition from religious groups.

In 1835, the infamous New York fire drew people's attention to the
need to provide for sudden and large losses. Two years later,
Massachusetts became the first state to require companies by law to
maintain such reserves. The great Chicago fire of 1871 further
emphasized how fires can cause huge losses in densely populated
modern cities. The practice of reinsurance, wherein the risks are spread
among several companies, was devised specifically for such situations.

With the creation of the automobile, public liability insurance, which

first made its appearance in the 1880s, gained importance and
acceptance?

More advancement was made to insurance during the process of

industrialization. In 1897, the British government passed the
Workmen's Compensation Act, which made it mandatory for a
company to insure its employees against industrial accidents.

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 During the 19th century, many societies were founded to insure the
life and health of their members, while fraternal orders provided low-
cost, members only insurance. Even today, such fraternal orders
continue to provide insurance coverage to members, as do most labor
organizations. Many employers sponsor group insurance policies for
their employees, providing
not just life insurance, but sickness and accident benefits and old-age
pensions. Employees contribute a certain percentage of the premium
for these policies.

Final Thoughts

Even though the American insurance industry was greatly influenced

by Britain, the US market developed somewhat differently from that of
the United Kingdom. Contributing to that was America's size; land
diversity and the overwhelming desire to be independent. As America
moved from a colonial outpost to an independent force, from a farming
country to an industrial nation, the insurance business developed from
a small number of companies to a large industry.

Insurance became more sophisticated, offering new types of

coverage and diversified services for an increasingly complex country.

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 Key Features of Life Insurance

Nomination: - When one makes a nomination, as the

policyholder you continue to be the owner of the policy and the
nominee does not have any right under the policy so long as you
are alive. The nominee has only the right to receive the policy
monies in case of your death within the term of the policy.

Assignment: - If your intention is that your policy monies should

go only to a particular person, you need to assign the policy in
favor of that person.

Death Benefit: - The primary feature of a life insurance policy is

the death benefit it provides. Permanent policies provide a death
benefit that is guaranteed for the life of the insured, provided the
premiums have been paid and the policy has not been
surrendered.

Cash Value: - The cash value of a permanent life insurance

policy is accumulated throughout the life of the policy. It equals
the amount a policy owner would receive, fter any applicable
surrender charges, if the policy were surrendered before the
insured's death.

Dividends: - Many life insurance companies issue life insurance

policies that entitle he policy owner to share in the company's
divisible surplus.

Paid-Up Additions: - Dividends paid to a policy owner of a

participating policy can be used in numerous ways, one of which is

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toward the purchase of additional coverage, called paid-up
additions.

Policy Loans: - Some life insurance policies allow a policy owner

to apply for a loan against the value of their policy. Either a fixed
or variable rate of interest is charged. This feature allows the
policy owner an easily accessible loan in times of need or
opportunity.

Conversion from Term to Permanent: - When in need of

temporary protection, individuals often purchase term life
insurance. If one owns a term policy, sometimes a provision is
available that will allow her to convert her policy to a permanent
one without providing additional proof of insurability.

Disability Waiver of Premium: - Waiver of Premium is an

option or benefit that can be attached to a life insurance policy at
an additional cost. It guarantees that coverage will stay in force
and continue to grow.

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 Benefits of Life Insurance

Protection against risk of untimely death

Life insurance is a product, which offers protection against the
risk of death the full sum assured is made available under a life
assurance policy, whereas under other savings schemes, the total
accumulated savings alone will be available.
Protection during old age
Life insurance can also be used as a means of saving for one’s
future. There are a number of life insurance policies, which in addition
to life cover also provide the means of investing one’s income. The sum
as per the policy will be received only after a period of time. This
amount thus provides for the old age.
Forced savings
Payment of life insurance premiums is compulsory and
becomes a habit. Savings in other scheme can be easily withdrawn and
may be used for less worthy purpose. Termination of a life insurance
policy by the policyholder usually results in substantial loss in benefits
under the policy to the policyholder. One is thus encouraged to save
and keep one’s policy alive.
Educational requirements and charity
The object of insurance may be to serve as a security to
educational funds in respect of loans advanced for educational purpose
or to provide donations to charitable institutions like hospital and
school.

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Nomination and assignment
The life insured can name the person or persons to whom the
policy money would be payable in the event of his death .the proceeds
of a life insurance policy can be protected against the claims of the
creditors of the life insured by effecting a valid assignment of the policy.
The beneficiaries are fully protected from creditors expect to the extent
of any interest in the policy retained by the insured.
Marketability and suitability for borrowing
After 3 years, if the policyholder finds that he is unable to
continue payment of premiums he can surrender a policy for a cash
sum. A life insurance policy is accepted as a security for a commercial
loan.
Loans from the insurance company
A policy holder can take a loan from his insurance company
against the security of his life insurance policy provided the terms of
the terms of his policy allow such a loan. This loan can be taken usually
after a period of 3 years from commencement of the policy and is a
percentage of its surrender value.
Investment options
The unit link products gives comprehensive insurance solutions
that cater to an individual’s dual need of earning potentially high
returns as well as stay for life. Thus there is an option to invest money
in the products that combine the best of insurance and investment. In a
volatile market conditions it is possible to secure both as one can hedge
the investment with saver investment vehicles that provide a
diversified portfolio.
Tax benefits
The Indian income tax act provides tax concessions to the
policyholder both on payment of premium and on the maturity

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amount. Under sec 88 the tax benefits on premium paid by an
individual for life insurance policies on his own life\on the life of spouse
\children minor or major, including married daughters.

Reliance Life
Insurance

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Protection to wife and children
Under sec 6 of the married women’s property act if a married
man takes a policy of life insurance on his own life and expenses on
the face of it to be for the benefit of his wife or of his wife and children
or any of them, then it shall be deemed to be a trust for the benefit of
his wife and children or any of them,
According to the interest so expressed and shall not so long as any
object of trust remains be subject to the control of the husband or to
his creditors or form part of his estate. An insurance policy taken by a
married man in the above manner is ideal way to protect the interest of
his wife and children, even after his untimely death.

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 Role of Life Insurance in the Growth of Economy

The Life Insurance Industry has an enviable track record among

public sector units. It has a Consistent profit and dividend paying record
accompanied by a steady growth in its financial resources. Through
investments in the Government sector and socially- oriented sectors
the Industry has contributed immensely to the nation's development.
The industry is recognized as one of the largest financial Institutions in
the country. The ventures initiated by the industry in the areas of
Mutual Fund, Housing Finance has done exceedingly well in recent
years. To protect the country's foreign exchange reserves, the
reinsurance arrangement are so organized that maximum retention is
made possible within the country while at the same time protecting
interests of the policy holders.

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 Objectives

1. To get some good market exposure by dealing with the prospects

face to face.
2. To improve our ability to sell a financial product like life insurance.
3. To know about the customer preference level associated with
different insurance brand.
4. To find out the customer satisfaction towards the various
insurance brand.
5. Major features, which a customer looks for in an insurance policy
before making a purchase.
6. To get some information about market share of Reliance Life
Insurance as compared with other insurance brand.
7. To know the market strategy of Reliance Life Insurance, which is
used to attract customer?
8. To find out the factors, which help in increasing the market share
of Reliance Life Insurance.

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Research Design

26
 Company Profile

Reliance Life Insurance Company Limited is a part of Reliance Capital

Ltd., a part of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital
is one of India's leading private sector financial services companies,
which ranks among the top 3 private sector financial services and
banking companies. Reliance Life Insurance is not only one of India's
fastest growing life insurance companies, but also counts among the
top 4 private sector insurers. In just 2 years, the Company has crossed
the mark of 1.7 Million policies.

RLIC launched around 600 branches in 10 months, taking the overall

branch network above to 740. Reliance Life Insurance Co. is one of the
only two ISO 9001:2000 certified Life Insurance companies in India. It
has been awarded with the Jamnalal Bajaj Uchit Vyavahar Puraskar
2007- Certificate of Merit in the Financial Services category by Council
for Fair Business Practices (CFBP).

Vision & Mission

Vision
Empowering everyone to live their dreams.
Mission
Create unmatched value for everyone through dependable,
effective, transparent and profitable life insurance and pension plans.
Our Goal
Reliance Life Insurance would strive hard to achieve the 3 goals
mentioned below:

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  Emerge as transnational Life Insurer of global scale and standard

 Create best value for Customers, Shareholders and all Stake

holders
Achieve impeccable reputation and credentials through best business
practices

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 Company Products

Given below is the list of the policies provided by Reliance Life

Insurance Company:

Protection Plans

 Reliance Term Plan

 Reliance Simple Term Plan
 Reliance Special Term Plan
 Reliance Credit Guardian Plan
 Reliance Special Credit Guardian Plan
 Reliance Endowment Plan
 Reliance Special Endowment Plan
 Reliance Connect 2 Life
 Reliance Whole Life Plan
 Reliance Wealth + Health Plan
 Reliance Cash Flow Plan

Child Plans

 Reliance Super Invest Assure Plan

 Reliance Child Plan
 Reliance Secure Child Plan
 Reliance Wealth + Health Plan

Savings & Investment Plans

 Reliance Savings Linked Insurance Plan

 Reliance Super Invest Assure Plus Plan
 Reliance Super Invest Assure Plan

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  Total Investment Plan I - Insurance
 Reliance TIPS -Series I- Insurance
 Reliance Wealth + Health Plan
 Reliance Super Automatic Investment Plan
 Reliance Money Guarantee Plan
 Reliance Cash Flow Plan
 Reliance Super Market Return Plan
 Reliance Endowment Plan Reliance Special Endowment Plan
 Reliance Whole Life Plan
 Reliance Super Golden Years Plan
 Reliance Super Golden Years Plan - Value
 Reliance Super Golden Years Plan - Plus
 Reliance Connect 2 Life Plan
 Reliance Imaan Investment Plan

Retirement Plans

 Total Investment Plan II - Pension

 Reliance Super Golden Years Plan
 Reliance Super Golden Years Plan - Value
 Reliance Super Golden Years Plan - Plus
 Reliance Wealth + Health Plan
 Reliance Super Automatic Investment Plan
 Reliance Money Guarantee Plan

Group Plans

 Employers Liability Solutions

 Employee Protection Solutions
 Employee Voluntary Benefits

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 Reliance Policies

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.

· 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

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· Option to package with Accidental Death and Total and Permanent
Disablement Rider, Critical Conditions Rider and Term Life Insurance
Benefit Rider.

Reliance Health + Wealth Policy

There are times when late working hours take precedence over
your health check-ups. And there are times when a visit to the doctor
seems more important than dividends on your shares. In the rat race to
make money, we often forget to take care of ourselves. We understand
this predicament. Here is a plan that will ensure that your wealth keeps
increasing constantly and yet your health does not take a backseat. The
Reliance Wealth Health Plan. A plan that gives you the benefits of
wealth bhi. health bhi. Life changes. And as it does, so do your
priorities. After all, the circumstances of your life can determine the
type of health coverage you need. India has made rapid strides in the
health sector. Since Independence, life expectancy has gone up
markedly and survival rates have also increased, still critical health
issues remain. Infectious diseases continue to claim a large number of
lives. Reliance Wealth + Health Plan, a health insurance plan
underwritten by Reliance Life Insurance Company Limited, is designed
to work in conjunction with contributions towards savings.

Key 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

Reliance Pension Policy

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 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 Feature

· 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 Value at Vesting Age

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 Feature

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· 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
· 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

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 SWOT Analysis

Strength
1. Reliance Life Insurance Company Limited is the part of the
Reliance Capital.
2. The brand name is enough to sell the products easily.
3. Private placement of Rs. 10,000 crore worth of securities with RBI
by the government. Led to an improvement in market securities.
4. Strong liquidity from FII was the major reason for the up move.
5. Range of products
6. Reliance has a long and strong history of solvency, financial
stability.
7. Diversification of funds
8. Adaptability to change

Weakness

1. Newly established company, so people seems it risky.

2. Lack of staff.
3. Lack of advertisement, so most of the customers are not aware of
the Reliance Life Insurance.
4. Less coverage in rural areas.

Opportunity

1. There is a vast untapped market in India. The life insurance

penetration in India is approximately 2.5%. So it has large
potential.
2. Intention of traditional products is to encourage long term,
regular and disciplined savings to systematically build up a target
fund.

35
 3. The average insurance premium being collected by the company
has been growing exponentially year on year.
4. High growth of ULIP industry.

Threat

1. The main threat is from the other players who have grabbed
approximately 15% of the market share.
2. As the government has scrapped the rebate on the life insurance
premium, the people who used to invest in life insurance for the
sole motive of tax benefit may turn to other instruments.
3. Arrival of new entrants in the insurance industry.

4.

36
 Marketing Strategies of the RLIC

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 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.

37
 Research Methodology

TYPE OF RESEARCH

The research includes different options. They are:

Exploratory research:
It is usually a small-scale study undertaken to define the exact
nature of a problem and to gain a better understanding of the
environment within which the problem has occurred. It is the initial
research, before more conclusive research is under taken.
Descriptive research:
It is to provide an accurate picture of some aspects of market
environment. Descriptive research is used when the objective is to
provide a systematic description that is as factual and accurate as
possible. It provides the number of time something occurs, or
frequency, lends itself to satisfied calculations such as determining
average number of occurrences.
Casual research:
If the objective is too determined which variable might be causing
a certain behavior that is whether there is a cause and effect
relationship between variable, casual research must be undertaken. In
order to determine causality, it is important to hold the variable that is
assumed to cause the change in the other variable constant and than
measure the changes in the variable. This type of research is very
complex and the researcher can never be completely certain that there
are no other factors influencing the casual relationship, especially when
dealing with people’s attitudes and motivation.

38
 This research is about understanding the market stand and also
find the strength & weakness of the products of three insurance
companies by making comparing analysis of the products of the
companies, mainly descriptive research methodology are adopted.
Descriptive research was adopted since it provides accurate picture
about some aspect of market environment such as which brand is
performing well and what the company can do to improve its market
share.

SAMPLING PROCEDURE

How should the respondents be chosen? To obtain a

representative sample and non-probability sample can be drawn, they
are
Judgment sample:
The researcher selects population numbers who are good
prospects for accurate information.
For collection of research data judgment-sampling technique is
used where all of them are employees of the three insurance
companies as they are good prospect for accurate information.

ACTUAL COLLECTION OF DATA

Data sources:
The sources of data include either secondary data or primary data
and even some times the combination of both. The present study is
more concentration on both primary and secondary data.

39
Primary data:
Primary data is collected through face-to face interaction with
customers, by meeting them in personal.
Secondary data:
The secondary data used for their study are inclusive of the
data collected from the internet, catalogues and brochures
and magazines.

METHODOLOGY

The study will conduct on the bases of survey through

questionnaires given to respondents.
Sampling Design

Sample area: Asansol

Sample Size: Population of 50

Sample unit: Employed and Businessmen customer

Sample Technique: Random Sampling

Statistical Tools: Correlation

40
 Comparative Analysis

Presently there are 23 Life insurance companies in the country.

There is only one public sector company LIC and the rest 22 are private
sector. Although LIC has been dominating the Life Insurance business
since past few years the private players have now started to take the
momentum.

1) Major Market Players: -

Birla Sun Life Insurance Company: - Birla Sun Life Insurance

Company is a 74:26 joint venture between Birla group and Sun
Life Financial. It is a private sector company. The company was
registered on 31/1/2001. The market share for FY 2009- 10 was
8.50%.

HDFC – Standard: - HDFC standard is a 74:26 joint venture

between HDFC and Standard Life. It is a private sector company.
The company was registered on 23/10/2000. The market share for
FY 2009-10 was 8.00%.

ICICI Prudential Life Insurance: - ICICI Prudential Life is a 74:26

joint venture between ICICI and Prudential. It is a private sector
company. The company was registered on 24/11/2000. The
market share for FY 2009-10 was 21.60%.

Life Insurance Corporation of India (LIC): - Life Insurance

Corporation of India is a 100% government held Public Sector
Company. Being the first to be established LIC is the forerunner in
the Life Insurance sector. The market share for FY 2009-10 was
71.44%.

41
 Kotak Mahindra OLD Mutual: - Kotak Mahindra OLD Mutual is a
74:26 joint venture between Kotak Mahindra bank and Old
Mutual. It is a private sector company. The company was
registered on 10/1/2001. The market share for FY 2009-10 was
4.00%.

Max New York Life: - Max New York Life is a 74:26 joint venture
between J & Bank, Pallonji & Co and MetLife. It is a private sector
company. The company was registered on 6/8/2001. The market
share for FY 2009-10 was 5.60%.

Aviva Life Insurance India: - Aviva Life insurance is a 74:26 joint

venture between Aviva and Dabur. It is a private sector company.
The company was registered on 14/5/2002. The market share for
FY 2009-10 was 2.30%.

ING Vysya Life insurance: - ING Vysya Life Insurance is joint

venture between Exide (50%), Gujarat Cements (14.87%), Enam
(9.13%) and ING (26 %). It is a private sector company. The
company was registered on 2/8/2001. The market share for FY
2009-10 is 2.00%.

Met Life India: - Met Life India is a 74:26 joint venture between
74:26 JV between J & Bank, Pallonji & Co and MetLife. It is a
private sector company. The company was registered on
6/8/2001. The market share for FY 2009-10 was 3.30%.

Bajaj Allianz Life Insurance Co.: - Bajaj Allianz Life Insurance

Company is a 74: 26 Joint venture between Bajaj Auto limited and
Allianz AIG. The company was registered on 3/8/2001. The market
share for FY 2009-10 was 13.20%.

42
SBI Life Insurance Company Ltd: - SBI Life Insurance Company is a
74: 26 Joint venture between SBI and Cardiff S.A. The company
was registered on 31/3/2001.It is a private sector company. The
market share for FY 2009-10 was 14.80%.

The TATA AIG Group: - TATA AIG group is a 74:26 JV between

Tata Group and AIG. It belongs to the private sector. The company
was registered on 12/2/2001. The market share for FY 2009-10
was 3.30%.

Reliance Life Insurance Company Ltd.: - First Wholly Indian

Owned Private Life Insurance Company. The Company
commenced operations from 1st February 2006. The market share
for FY 2009-10 was 9.90 %.

43
2) Market share of private players

ICICI Prudential 21.60%

SBI Life 14.80%
Reliance Life 13.20%
Bajaj Allianz 9.90%
Birla Sunlife 8.50%
HDFC Standard 8.00%
Max New York Life 5.60%
Kotak Mahindra OM 4.00%
Others 3.50%
Tata AIG 3.30%
Metlife 3.30%
Aviva Life 2.30%
ING Vyasa 2.00%

Metlife Aviva Life ING Vyasa

Tata AIG 3% 2% 2%
3% ICICI Prudential
22%
Others
4%
Kotak Mahindra OM
4%
Max New York Life
6%
HDFC Standard
8%
SBI Life
15%

Birla Sunlife
9% Bajaj Allianz
13%

Reliance Life
10%

44
3)Business Figure of first year premium of life insurers for the period ended april 2010

First Year Premium of Life Insurers for the Period ended April, 2010 (Rs Crore)

No. of lives covered under

Premium   No. of Policies / Schemes
Sl Group Schemes
Insurer
No.
Upto April, Upto April, Upto April,
April, 10 April, 10 April, 10
09 09 09
1 Bajaj Allianz            
  Individual Single Premium 26.65 4.83 5341 2820    
  Individual Non-Single Premium 117.90 87.42 106379 76108    
  Group Single Premium 4.80 1.08 1 1 6001 183
  Group Non-Single Premium 14.68 69.87 106 34 1646877 141645
2 ING Vysya            
  Individual Single Premium 0.01 0.40 2 72    
  Individual Non-Single Premium 28.94 36.77 14409 21880    
  Group Single Premium 0.54 0.56 0 0 106 228
  Group Non-Single Premium 0.00 0.03 0 0 43 221
3 Reliance Life            
  Individual Single Premium 8.19 0.25 2159 555    
  Individual Non-Single Premium 110.81 88.25 91249 92281    
  Group Single Premium 1.77 18.82 24 0 41226 29
  Group Non-Single Premium 11.72 3.46 17 59 3922 59309
4 SBI Life            
  Individual Single Premium 19.35 10.99 2442 1971    
  Individual Non-Single Premium 87.38 108.72 22622 34317    
  Group Single Premium 4.06 12.89 1 0 261 14210
  Group Non-Single Premium 74.61 327.66 1 4 20119 38604
5 Tata AIG            
  Individual Single Premium 2.29 1.84 321 624    
  Individual Non-Single Premium 61.46 43.46 42480 48964    
  Group Single Premium 2.06 1.63 0 0 3828 1992
  Group Non-Single Premium 1.16 2.31 7 8 13183 11022
6 HDFC Standard            
  Individual Single Premium 3.85 7.58 1998 1196    
  Individual Non-Single Premium 117.07 71.78 29559 31004    
  Group Single Premium 1.38 19.43 21 10 22320 52457
  Group Non-Single Premium 41.04 0.16 6 0 21434 161
7 ICICI Prudential            
  Individual Single Premium 1.11 8.59 54 1022    
  Individual Non-Single Premium 266.42 91.87 99199 114899    
  Group Single Premium 10.25 18.21 88 67 95207 52628
  Group Non-Single Premium 25.90 17.15 130 128 117032 152788
8 Birla Sunlife            
  Individual Single Premium 1.92 3.94 21765 7266    
  Individual Non-Single Premium 70.74 61.76 125867 67267    
  Group Single Premium 0.22 0.04 0 0 81 28

45
  Group Non-Single Premium 12.57 17.18 22 21 45322 14238
9 Aviva            
  Individual Single Premium 1.10 5.34 62 1114    
  Individual Non-Single Premium 23.39 23.83 11170 9831    
  Group Single Premium 0.01 0.00 0 0 29 0
  Group Non-Single Premium 2.53 3.40 8 4 179336 132856
10 Kotak Mahindra Old Mutual            
  Individual Single Premium 5.28 0.31 437 52    
  Individual Non-Single Premium 32.14 25.02 10300 9543    
  Group Single Premium 3.93 0.78 0 0 16877 2853
  Group Non-Single Premium 8.21 3.18 50 42 101518 27003
11 Max New York            
  Individual Single Premium 12.66 19.07 102 1547    
  Individual Non-Single Premium 119.20 124.57 65392 80852    
  Group Single Premium 1.17 0.03 6 4 365749 205683
  Group Non-Single Premium 5.40 1.52 161 111 201213 93576
12 Met Life            
  Individual Single Premium 1.30 0.04 321 23    
  Individual Non-Single Premium 19.70 14.75 8506 5097    
  Group Single Premium 1.90 10.50 0 16 912 44480
  Group Non-Single Premium 3.98 0.00 20 0 44048 0
13 Sahara Life            
  Individual Single Premium 0.71 0.95 175 281    
  Individual Non-Single Premium 2.06 2.17 2231 2277    
  Group Single Premium 0.00 0.00 0 0 0 0
  Group Non-Single Premium 0.00 1.64 0 0 0 209570
14 Shriram Life            
  Individual Single Premium 13.19 1.63 1488 246    
  Individual Non-Single Premium 12.65 13.96 4772 7874    
  Group Single Premium 1.80 0.00 0 0 7427 0
  Group Non-Single Premium 0.00 0.00 0 0 0 0
15 Bharti Axa Life            
  Individual Single Premium 0.56 0.22 378 24    
  Individual Non-Single Premium 20.09 16.57 7851 8145    
  Group Single Premium 1.48 1.49 0 1 1017 1420
  Group Non-Single Premium 0.00 0.00 0 0 0 0
16 Future Generali Life            
  Individual Single Premium 0.16 0.27 24 46    
  Individual Non-Single Premium 13.11 7.22 10567 6524    
  Group Single Premium 0.03 0.00 0 0 604 0
  Group Non-Single Premium 2.06 3.51 7 8 498181 24633
17 IDBI Fortis Life            
  Individual Single Premium 3.84 4.66 836 745    
  Individual Non-Single Premium 12.42 9.94 3724 3088    
  Group Single Premium 0.00 0.00 0 0 0 0
  Group Non-Single Premium 0.03 0.00 5 2 7434 2503
18 Canara HSBC OBC Life            

46
  Individual Single Premium 0.68 0.40 31 28    
  Individual Non-Single Premium 53.18 45.49 6385 4906    
  Group Single Premium 1.02 0.00 0 0 574 0
  Group Non-Single Premium 0.00 0.00 0 0 0 0
19 Aegon Religare            
  Individual Single Premium 0.38 0.06 23 9    
  Individual Non-Single Premium 6.29 1.89 1649 792    
  Group Single Premium 0.05 0.00 0 0 110 0
  Group Non-Single Premium 0.00 0.00 0 0 0 0
20 DLF Pramerica            
  Individual Single Premium 0.27 0.00 44 0    
  Individual Non-Single Premium 5.47 1.03 2305 786    
  Group Single Premium 0.00 0.00 0 0 0 0
  Group Non-Single Premium 0.00 0.00 0 0 0 0
21 Star Union Dai-ichi @            
  Individual Single Premium 5.40 1.40 346 249    
  Individual Non-Single Premium 4.64 2.70 1339 1166    
  Group Single Premium 2.38 0.00 0 0 572 0
  Group Non-Single Premium 0.51 0.00 1 0 5536 0
22 IndiaFirst #             
  Individual Single Premium 6.49   655      
  Individual Non-Single Premium 28.98   8957      
  Group Single Premium 0.00   0   0  
  Group Non-Single Premium 0.00   0   0  
  Private Total            
  Individual Single Premium 115.38 72.77 39004 19890    
  Individual Non-Single Premium 1214.02 879.18 676912 627601    
  Group Single Premium 38.85 85.46 141 99 562901 376191
  Group Non-Single Premium 204.38 451.07 541 421 2905198 908129
23 LIC            
  Individual Single Premium 1610.67 426.90 268824 122646    
  Individual Non-Single Premium 1446.02 756.59 1449607 1271573    
  Group Single Premium 1037.00 929.62 832 787 864579 952179
  Group Non-Single Premium 80.00 0.00 0 0 54125 0
  Grand Total            
  Individual Single Premium 1726.06 499.67 307828 142536    
  Individual Non-Single Premium 2660.04 1635.76 2126519 1899174    
  Group Single Premium 1075.85 1015.08 973 886 1427480 1328370
  Group Non-Single Premium 284.38 451.07 541 421 2959323 908129

47
4) Comparison of Life Insurance Policies

Features\Companie Shahara Life Reliance life HDFC Standard Bajaj Allianz

s
Plan Name Shahara Vishesh Super Invest Assure Unit Linked New Unit Gain
Endowment PlusII
Min/Max age entry 14-60 Yrs 30 days – 60 yrs 18-65 yrs 0–60 yrs
Max age at maturity 75 Yrs 75 Yrs 75 Yrs 75 Yrs
Terms 15 Yrs 15 - 30 yrs 10-30 yrs 15, 20 or 25 yrs
Min Max Premium Rs 10,000/no limit Rs 5,000 / No limit Rs 12,000/No Limit Rs 10,000 / Rs 30,000
Premium Type Regular Regular Regular Regular
Min/Max Sum SA is based on age at Min SA = 5 times Min SA = 0.5 * Policy Min SA = 0.5 * Policy
Assured entry Annualised Term * annual Term * annual
Age Band Max SA Premium Max SA is premium premium
0-45 10 Time based on age at Max SA = 40 times the Max SA = Multiplier *
45-50 5 Times entry AP Annual Premium
Age Band Max SA (Multiplier would
0-40 20 depend on the age at
41-45 15 entry and any riders
46-50 10 chosen)
51-60 5
Death Benefit Sum assured or fund Death before Max of SA or FV Death before 7th
value whichever is commencement of birthday = FV
higher risk Death after 7th and
cover = FV before the 60th
Death after birthday = Higher of
commencement of FV OR SA (net of PW
risk made during the 24
cover but before 60th months prior to date
birthday = of
Higher of FV OR SA death)
(net of PW made Death on or after
during the 24 months 60th birthday =
prior to date of Higher
death) FV OR SA (net of PW
Death on or after 60th made from 58 yrs
birthday = age till date of death)
Higher FV OR SA (net
of PW made
from 58 yrs age till
date of death
Maturity Benefit FV FV FV FV
Partial Withdrawals After 3 yrs 50% of FV After 3 years. Min Rs After 5 yrs. Min Rs 10, After 3 years. Min Rs
but FV should be > 5,000. Max PW 000.Min FV of 5,000. Minimum FV
20,000 after W/D amount should not 150% of the Original of three annual
exceed 20% of the Annualised Premium premiums needs to
FV should be maintained be
maintained at any
given time
Fund Surrender No of Comp Yrs % After 3 yrs. After 3 yrs After 3 yrs. SC = [1 –
of SC PY SC No of Comp Yrs SC (1/1.06)^N ] * first
2<yr<3 1-3 100 % 1 100% years’ annualized
20% 4 5% 2 95% premium.
3<yr<4 5 3% 3 35% No SC after 10 yrs.
10% 6+ Nil 4 15% Before 3rd Year SC =
4<yr<5 5% 5 5% first years’ allocated
Yr>5 6+ Nil premium.
0%

48
Riders Accident Benefit, Major Surgical Benefit, ADB, CI ADB, Accidental
Accidental Total & Critical Permanent Total/
Permanenet Disability Conditions, Term Life Partial
Benefit (Rs. 50,000 Insurance Disability Benefit, CI
Fix) Benefit, Accidental Benefit, Hospital Cash
Death and Total Benefit, Waiver of
and Permanent Premium Benefit,
Disablement Family
Income Benefit
Top-Ups 25% of premium paid Allowed Min Rs 10,000 Min Rs 5,000
till date
Fund Management Rs. 0.75% p.a. of fund Money Market, Gilt, Liquid Fund, Stable Equity Growth Fund
Charges value Corporate Bond Managed Fund, and Accelerator
– 1.25% p.a. Secure Managed Mid-Cap Fund –
Equity, Infrastructure, Fund, Defensive 1.75% p.a.; Equity
Energy, Managed Fund, Index
Midcap, Pure Equity Balanced Managed Fund II and Asset
Fund– 1.5% p.a. Fund, Equity Managed Allocation Fund -
Fund, Growth 1.25%
Fund – 1.25% p.a. p.a.; Bond Fund and
Liquid Fund - 0.95%
p.a.
Policy Rs. 25 p.m. Rs. 50 per month Rs 60 per month Rs. 50 per month
Administration
Charges
Charges on Top-Ups 2% of top-ups 2% of top-ups Paid during Yr 1: 2.5% 2% of top-ups
of top-ups; Paid
during Yr 2: 2% of top-
ups
Premium Allocation PY AC PY AC Yr 1 PY AC
Charges 1 75% 1 80% Premium range 1 yr 55%
2+ 5% 2+ 6 % AC 2-5yrs 4%
12000- 199,999 6-13yrs 2%
60%
200,000-499,999
48%
500,000-999,999
36%
1,000,000-1,999,999
23%
2,000,000+
10%
Yr 2 - 7%
Yr 3+ - 2%

49
 Findings and Interpretations

We have presented below the findings and analysis of the questionnaire

addressed to the respondents to gauge the attitude and perception of the people
towards insurance.

Data gives preference of respondents of insurance companies

COMPANY’S NAME NO.OF RESPONDENT SHARE (%)

L.I.C. 38 76
BAJAJ ALLIANZ 1 2
RELIANCE LIFE INSURANCE 3 6
TATA AIG 0 0
ICICI PRUDENTIAL 4 8
BIRLA SUN LIFE 0 0
SBI LIFE 3 6
HDFC 1 2
TOTAL 50 100

Preference of respondents

6% 2%
8% L.I.C. BAJAJ ALLIANZ
6%
RELIANCE LIFE TATA AIG
2% INSURANCE
ICICI PRUDENTIAL BIRLA SUN LIFE
SBI LIFE HDFC
76%

Interpretation

76% of respondents contacted prefer LIC Policy to any other and there for
it is ranked no. 1 by that percent of respondents.

50
 Data gives respondents attract towards features of insurance
policies
Policy Features NO.OF RESPONDENT SHARE (%)
Low premium 7 14
Larger risk coverage 19 38
Money back guarantee 10 20
Reputation of
company 9 18
Easy access to advisor 4 8
Any other 1 2
Total 50 100

Chart Title

8% 2% 14%
Low premium
18% Larger risk coverage
Money back guarantee
Reputation of company
Easy access to advisor
Any other
38%
20%

Interpretation

38% people believe that larger risk coverage is the biggest feature of any
life insurance policies.

Where as 20% respondents believe in money back guarantee and 18% and
14% respondents care about reputation of companies and low premium
respectively.

51
 Data gives benefits of insurance perceived by respondents

BENEFITS NO.OF RESPONDENTS SHARE (%)

Cover Future
Uncertainty 27 54
Tax Deductions 10 20
Future Investment 13 26
TOTAL 50 100

Cover Future Uncertainty

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.

52
 Data gives for how long policy has been taken by respondents

Duration No of respondents Share(%)

Less than 5
year 10 20
5 – 10 years 5 10
10 – 15 years 15 30
Above 15 years 20 40
Total 50 100

Less than 5 year

5 – 10 years
10 – 15 years
Above 15 years

Interpretation

40% people have policies for more than 15 years.

Where as 20% respondents have policy for less than 5 years.

Which shows that maximum people prefer for long term investments.

53
 Data gives the respondent’s buying behaviour

Reasons to buy No of respondents Share(%)

Customer
approach 10 20
Excellent plan 20 40
Brand image 5 10
Excellent services 12 24
Reliable 3 6
Total 50 100

Customer approach
Excellent plan
Brand image
Excellent services
Reliable

Interpretation

40% respondents go for the excellent plan where as 24% respondents

believe in excellent services.

Where as 20 % people love customer approach and, 10% and 6%

respondents care about image and reliability of brands respectively.

54
 Data gives motive behind investing in life insurance

Motives No of respondents Share(%)

TAX 20 40
SAVING 5 10
RISK
COVERAGE 23 46
RETURN/YIELD 2 4
TOTAL 50 100

Chart Title
4%

40%
TAX
SAVING
46% RISK COVERAGE
RETURN/YIELD

10%

Interpretation

Here we can see that majority of the people tend to invest in life insurance
for the risk coverage. The next preferred option is Tax Saving. We founded from
the discussion with public and some experts that those people with a low income
tend to invest in life insurance to gain tax benefit. Saving motive constitutes very
small part of the total sample. Return comes last. But this is the general
conclusion of 50 people. If we take a larger sample, we can get a different result.

As the private players have launched ULIPs, more and more people are
turning towards these products so the Investment motive has been gaining

55
command. Also the number of those people who wish to invest for return is also
increasing.

According to a life insurance expert (Vinod Thakkar ), life insurance is for

protection first then for Savings and Tax benefits all those things.

Data gives influencing sources of respondents decision in policy

buying
Source No of respondents Share(%)
On my own 29 58
Family decision 7 14
Employer
decides 0 0
Agents guidance 14 28
TOTAL 50 100

Chart Title

28%
On my own
Family decision
Employer decides
Agents guidance
58%

14%

Interpretaion

Here we can see that majority people (58%) decides on their about
investing in life insurance. 28% persons decides as per the guidance of the agent.

56
 There is no contribution of employers in the decision of one’s investment in
life insurance. 14% people invest in life insurance as per the family decision.

57
 Data gives respondents preference for life insurance policy type

Type of policy No of respondents Share(%)

Term
Assurance 9 18
Whole Life 9 18
Endowment 7 14
Combined 19 38
Ulips 6 12
TOTAL 50 100

Policy type preferences

12%
18%
Term Assurance
Whole Life
Endowment
Combined
18% Ulips
38%

14%

Interpretation

As it is evident from the chart and the table 38% people prefer combination
of Whole Life and Endowment product. It gives people double advantage. The
person would get some amount at the end of the stipulated period; for instance
20 years, and after that period the risk cover continues and the rest of the
amount would be paid when the person dies.

58
 Data gives respondents perception to invest in Rlic

No of Share(%
Rate of RLIC in policy respondents )
Good 31 62
Very Good 10 20
Average 6 12
Bad 0 0
Can't say 3 6
TOTAL 50 100

Rate of RLIC in policy

12% 6%

Good
Very Good
Average
Bad
20% Can't say
62%

Interpretation

As evident from the chart there are 62% of respondents are feel good to
invest in RLIC.
Where as 20% people assume that Reliance Life Insurance si very good
company.

59
 Data Gives respondents perception about the quality of RLIC

Rate of RLIC in quality No of respondents Share(%)

Good 15 30
Very Good 8 16
Average 23 46
Bad 1 2
Can't say 3 6
TOTAL 50 100

Rate in quality
Can't say Good
Bad 6% 30%
2%

Average
46%
Very Good
16%

Interpretation

As we can see in pie chart that 46% of respondents remarked average to

quality of rlic where as 30% good and 16% very good.

60
 Data gives respondents satisfaction level by Rlic

Satisfaction Level No of respondents Share(%)

Very satisfied 27 54
Satisfied 17 34
Unsatisfied 2 4
Poor 1 2
Can't say 3 6
TOTAL 50 100

Satisfaction level of respondents

Very satisfied Satisfied Unsatisfied Poor Can't say
2%
4% 6%

54%
34%

Interpretation

54% respondents are very satisfied with reliance life insurance

34% are satisfied and 4% and 2% people are not happy with RLIC.

61
 Results

After the survey it was found that still major portion of customers
go for public insurance companies, but with the entry of more and
more private companies the scenario is changing rapidly, people with a
need of more and better returns are opting for private companies, and
this can be justified by the increasing market share of private
companies in the Indian insurance sector.

There are various ways in which private companies are found

much more lucrative than public companies and the facts which
support this statement are as follows:-

1. Versatility of products.
2. Efficient fund managers.
3. Better customer services.
4. More returns.
5. Regular follow up.
6. Quicker settlement

62
 Suggestions and Recommendations

✔ People are not aware of the life insurance. Most of them know only
one company which provides life insurance i.e. LIC. So awareness
campaign should be run so that people are aware of different life
insurance companies in India.

✔ People should be educated about the different types of products or

plans offered by the life insurance companies. Most of them don’t
know much of the different types of plan or products.

✔ It was felt that most of the people took life for tax savings or just to
cover up their life, not as an investment avenue. Life Insurance
companies need to advertise in such a manner that people start
investing in life insurance like the way they invest in the stock market.

✔ Now at the time of global turmoil insurance company had to hold on

to the policyholders trust which might lead the company to the path of
success

✔ Insurance companies should try to adopt different strategies to

market their products or plan. Companies should not primarily focus on
the agents for their business.

63
 Conclusion

After the deep study of insurance sector of India, I can tell that
this is the sector, which has most business opportunities perhaps
in India.
Insurance industry is one of the fastest sectors in India. Insurance
sector has been growing by 34% to 36% and it is expected to
increase by 50% in coming 5 years. After the opening up of the
insurance sector, it has become much competitive and insurance
awareness among people has increased.
As far as the comparison of Reliance Life Insurance and other
players is concerned, there are both positive as well as negative
impacts on both the sides.
For Reliance Life Insurance, the negative aspect is that its market
share is low.
For private players the negative aspect is that they have to fight
with the public sector giant which is established player with a high
brand value.
But the positive impact is that the life insurance awareness has
increased and the business of Reliance Life Insurance has
increased.

The insurance sector is likely to attain a size of Rs. 2,00,000 crore

($ 51.2 billion) in 2009-10. In life insurance, the business grew by 23.3%
to Rs. 93,000 crore in 2007-08 (Source:Assocham). The sector alone
employs close to 30 lakh people (including agents and direct
employees).The challenge is to spread awareness about life insurance
and it true benefits. The industry has to convince people to park their
hardly earned money in long-term insurance and not just look at it as a
tax saving instrument.

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 Limitations

I am a human hang, so there is some limitation of the human

hangs which is reflected in this research.
The following are the limitation of this research study.

1. The sample size of 50 might not represent the perception of

whole population, as the sample size is too small for total
population of Asansol city.
2. The opinion expressed by the respondents may be biased.
3. The attitude of the research might be biased.
4. One of the most influencing and most critical limitations is
that I am not trained for the research study and this is my
first study. I tried hard to come at conclusion, but there is
lack of expertise.
5. Another limitation is that there is lack of time. If I give more
time then studies will be more effective.

There are some limitations of this study. But in spite of their

limitation I worked with the enthusiasm. And I tried to give the best
results to the research of this report.

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 Bibliography/References

http:\\www.reliancelife.com
http:\\www.irdaindia.com
http:\\www.lic.co.in
http:\\www.wikipedia.com
http:\\www.google.com
Outlook Money Magazine
Life Time Magazine of Reliance Life Insurance
Broachers of Reliance Life Insurance

66
 Annexure Questionnaire

Section A: Personal Information

1) If your occupation is following, then proceed…

Service
Business
2) Name: -

3) Address: -

4) Gender: - Male Female

5) How much old you are? (in between)
18 to 29 30 to 40 41 to 54 55 and above
6) Income level (per month)
Less than 15,000
15,001 – 25,000
25001 – 35,000
35,000 & above
7) Educational Background
High school
Intermediate
Graduate
Post Graduate
Other specify

Section B: About Insurance Brand

8) Which insurance brand you preference?

a) RLI b) ICICI Prudential c) HDFC Standard
d) LIC e) Bajaj Allianz f) SBI Life
g) Birla SunLife h) Tata AIG i) Others specify

9) Please write the policy plan of your brand

10) Which feature of your policy attracted you to buy it?

a) Low premium
b) Larger risk coverage
c) Money back guarantee
d) Reputation of company
e) Easy access to advisor
f) Any other _______________________

11) For how many years do you have insurance policy?

Less than 5 year
5 – 10 years

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 10 – 15 years
Above 15 years

12) What are the reasons for availing above mentioned insurance brand?(Rank them)
a) Customer approach
b) Excellent plan
c) Brand image
d) Excellent services
e) Reliable

13) What is main motive behind investing in life insurance?(Rank them)

a) Tax benefit
b) Savings
c) Risk cover
d) Return/Yield

14) How do you decide about investing in life insurance?

On my own
Family decision
Employer decision
As per the guidance of advisor

15) Which life insurance policy would you prefer to buy?

a) Term assurance
b) Whole life
c) Endowment
d) Combination of Endowment and whole life
e) Unit Linked
f) Traditional

16) How do you rate Reliance Life Insurance by our other company insurance policy?
Good Very good Average Bad
Can’t say

17) How do you rate the quality of service provided by Reliance Life Insurance than others?
Good Very good Average Bad
Can’t say

18) What is your satisfaction level provided by Reliance Life Insurance as compared with others?
Very satisfied Satisfied Unsatisfied Poor

68