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A PROJECT REPORT

ON
PRODUCT PROMOTION AND RECRUITMENT
SUBMITTED TO
MAEERs

MIT SCHOOL OF LIGHTING

AND

MANAGEMENT STUDIES

BY

ARADHANA PANDEY

L20704

1st BATCH

IN PARTIAL FULFILLMENT OF

POST GRADUATE PROGRAM IN LIGHTING TECHNOLOGY

AND

MANAGEMENT STUDIES

2007-2009
MAEERs MIT SCHOOL OF LIGHTING AND MANAGEMENT STUDIES

(MITSOT), PUNE
TABLE OF CONTENT
Chapter No. Title Page No.
Declaration from student i
Certificate from Company ii
Certificate from Institute iii
Acknowledgement iv
List of tables v
List of Graphs vi
Executive Summary vii
I Introduction 1-24
1.1 History of Insurance 1-3
1.2 IRDA 4-5
1.3 Market Profile 6-12
1.4 Company Profile 13-19
1.4.1 Vision and Mission 15
1.4.2 Goal 15
1.4.3 Achievements 18
1.5 Product Profile 20-23
1.6 Objective and Scope of the study 24
II Research Methodology 25-29
2.1 Research Design 25
2.2 Sampling Methodology 26
2.2.1 Sampling Technique 26
2.2.2 Sampling Unit 26
2.2.3 Sample Size 26
2.2.4 Sample Area 26
2.3 Instrument for data collection 27
2.4 Data collection sources 28
2.4.1 Primary Data 28
2.4.2 Secondary Data 28
2.5 Limitation 29
III Data analysis and Interpretation 30-39
IV Findings 40
V Conclusion 41
VI Recommendations 42
VII Bibliography 43
Annexure 44-48
A Questionnaire
DECLARATION

I, Aradhana Pandey, hereby declare that this project report is the record of authentic work carried
out by me during the period from 21-07-08 to 05-09-08 and has not been submitted earlier to any
University or Institute for the award of any degree or diploma etc.

Aradhana Pandey

Date:
CERTIFICATE FROM COMPANY
CERTIFICATE FROM INSTITUTE
ACKNOWLEDGEMENT

To accomplish a project it involves a lot of effort and contribution from a number of people. It is
thus an opportunity for me to thanks those people who have helped me generously in completion
of this project.

Exchange of ideas generates a new object to work in a better way. Apart from the ability, labor
and time devotion, guidance and cooperation are the two pillars for the success of any project.
Whenever a person is helped or cooperated by others his heart is bound to pay gratitude to them.

In the chain I am immensely thankful and convey my sincere gratitude to my mentor Mr.
Mukesh Gupta for his enlightening guidance, constant inspiration and keen interest shown on
me during the training. I deliberate my profound sense of gratitude to him and all the staff
members of Reliance Life Insurance Co. Ltd, for cooperating me at every stage of the project.

I am also grateful to my project guide Prof. Suhrud Neurgaonkar for her time to time guidance
in completing the project.

I am also thankful to all of my co-trainees, friends and my family who help me regularly
throughout the project. They acted as a continuous source of inspiration and motivated me
throughout the duration of the project helping me a lot in completing this project.
LIST OF TABLES

Sr. No. Table Name Page No.


1 Board of Directors
2 Product(Protection Plan)
3 Product(Saving And Investment Plan)
4 Product(Retirement Plan)
5 Product(Child Plan)
6 Preference of Insurance Companies
7 Benefits of insurance perceived by respondents
8 Features of policy that attracted respondents
9 People perception about insurance
10 Number of respondents paying tax
11 Respondents investments for tax saving
12 Respondents perception about best form of investment for
secure future
13 People opinion about Indian Insurance Companies
14 What people look for in an insurance company
15 People planning for new investment
16 People interested in insurance despite service provider being
far from the city
LIST OF GRAPHS

Sr. No. Graph Name Page No.


1 Preference of Insurance Companies
2 Benefits of insurance perceived by respondents
3 Features of policy that attracted respondents
4 People perception about insurance
5 Number of respondents paying tax
6 Respondents investments for tax saving
7 Respondents perception about best form of investment for
secure future
8 People opinion about Indian Insurance Companies
9 What people look for in an insurance company
10 People planning for new investment
11 People interested in insurance despite service provider being
far from the city
EXECUTIVE SUMMARY

The PGP course offered by the MITSOL has its own unique syllabus which requires its PGP
students to undertake an internship with any of the leading business houses after the third
trimester. The purpose of this internship is to enable the students to appreciate and understand the
nuances of the practical world vis-a-vis the theoretical input administered during regular
academic sessions. This helps in creating Managers who are equipped with the experience of
linking the theoretical inputs with those of practical exposure and come out with creative
solutions / ideas in enhancing the business.

Reliance Life Insurance Company is amongst the first private life insurance company in
Insurance sector. Very soon it expanded its business through world class insurance advisors and
the company today is Indias no. 1 private life insurance company and overall second biggest
company after LIC in terms of no. of policies and services provided by the company. It is part of
Reliance Capital, a well known premier financial powerhouse of India.

Company ultimately wants to-

Understand the needs of customers and offering them superior products and service. Leveraging
technology to service customers quickly, efficiently and conveniently developing and
implementing superior risk management and investment strategies to offer sustainable and stable
returns to our policyholders

Providing an enabling environment to faster growth and learning for its employees and above all,
building transparency in all its dealings.

My profile in the company was to recruit advisors to build a team and to generate more and more
clients for the company.

Technique used is random sampling. On its basis certain recommendations have been provided
that can be helpful to Reliance Life Insurance in its near future.
Chapter-1

INTRODUCTION

1.1 A brief history of the Insurance sector

The business of life insurance in India started in the year 1818 with the establishment of the
Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance business.

1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament with a capital contribution of
Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Trion
Insurances company ltd, the first general insurance company established in the year 1850
Calcutta by the By the British.
Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.

1968: the Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: the General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect form 1st January 1973.

Life insurance:

(Life Assurance in British English) is a type of insurance. As in all insurance, the insured
transfers a risk to the insurer, receiving a policy and paying a premium in exchange. The risk
assumed by the insurer is the risk of death of the insured.

How life insurance works

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. For
example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if
Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured.
Another important person involved is the beneficiary. The beneficiary is the person or persons
who will receive the policy proceeds upon the death of the insured. The beneficiary is not a party
to the policy, but is designated by the owner, who may change the beneficiary unless the policy
has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must
agree to changes in beneficiary, policy assignment, or borrowing of cash value.

The life insurance policy


The policy, like all insurance policies, is a legal contract specifying the terms and conditions of
the risk assumed. Special provisions apply, including a suicide clause wherein the policy
becomes null if the insured commits suicide within a specified time for the policy date (usually
two years). Any misrepresentation by the owner or insured on the application is also grounds for

nullification. Most contracts have a contestability period, also usually a two-year period; if the
insured dies within this period, the insurer has a legal right to contest the claim and request
additional information before deciding to either pay or deny the claim for proceeds. The face
amount of the policy is normally the amount paid when the policy matures, although policies can
provide for greater or lesser amounts.

The policy matures when the insured dies or reaches a specified age. The most common reason
to buy a life insurance policy is to protect the financial interests of the owner of the policy in the
event of the insured's demise. The insurance proceeds would pay for funeral and other death
costs or be invested to provide income replacing the deceased's wages.

Other reasons include estate planning and retirement. Because the insured's death will be to the
financial betterment of the policy owner, the owner, by law, must have an insurable interest (i.e.,
a legitimate reason for insuring another persons life.)The insurer (i.e., life insurance company)
prices the policies with an intent to recover claims to be paid and administrative costs, and to
make a profit. The cost of insurance is determined using mortality tables calculated by actuaries.
1.2 THE INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY (IRDA)
Formation of the IRDA:
In 1956, life insurance business was nationalized and Life Insurance Corporation of India was
formed on 1st September 1956. The government took over the business of 245 companies
operating in India, who were transacting life insurance business at that time. Thereafter LIC got
the exclusive privilege to operate in the life insurance business.
Thereafter as the markets began to grow more mature, especially the banks and the money
markets, the government again decided to open up the insurance sector to private players, this
time allowing even foreign insurance companies. But before this there had to be in place a
regulatory authority that would be independent and which would have supreme governing rights
on the different companies.
Thus in the year 1999, the Insurance Regulatory and Development Authority were formed having
the following scope:
To permit private companies to enter the insurance market
To protect the interests of the holders of insurance policies
To
regulate, promote and ensure orderly growth of insurance industry.

Functions of the IRDA:


1. To issue certificate of registration, renew, withdraw, suspend or cancel such registration

2. To protect the interests of the policyholders/insured

3. To specify requisite qualifications, code of conduct, and training for insurance intermediaries
and life advisors

4. To promote efficiency in the conduct of insurance business

5. To promote and regulate professional organizations connected with the insurance and
reinsurance business
6. To undertake inspection, conduct enquiries and investigations including audit of insurers and
insurance intermediaries

7. To control and regulate the rates, terms and conditions to be offered by the insurer regarding
general insurance business not so controlled by Tariff Advisory Committee

8 .To regulate investment of funds by insurance companies

9. To adjudicate disputes between insurers and intermediaries of insurance

10. To specify the percentage of life insurance business and general insurance business to be
undertaken in the rural or social sector
1.3 MARKET PROFILE
Insurance is a RS.400 billion business in India and yet its spread in the country is relatively thin
insurance as a concept has not been able to make headway in India. Until recently L.I.C. enjoyed
a monopoly in life insurance business.

There is little option before the consumer to decide the insurer. A successful passage of I.R.D.A
bill had cleared the way of private sector operators in collaboration with there overseas partner in
2000. It is more professional and focused approach. Moreover the foreign players would bring
sophisticated actuarial techniques with them, which would facilitate the insurer to effectively
price the product. In this new millennium all these activities would play a crucial roll in over all
development and maturity of insurance industry.
Insurance business is growing in India. Even before the advent of the insurance development
regulatory authority and privatization on the insurance sector, insurance was a lucrative business
in India as was elsewhere life was full of risk and here was somebody who was willing to cover
some of it for nominal consideration. Business boomed, especially after nationalization on the
insurance sector in India after independence. But it is roses way for these vital sectors.

The insurance policy sales executives are really a welcome visitor to any house hold. In fact
many people consider him as the hard bringer of impending death, a gentle reminder to ultimate
realty waiting for each. One of us but ironically executives many working person would not have
head the dual pleasure of having his life covered and that the end of the cover period, getting
back a tidy sum as saving tax exemption and of course peace of mind. L.I.C. & Reliance Life
insurance has now reached a stage where people have started looking down upon you if you are
not adequately insured.

Today insurance is playing a role more than only covering a risk of life the education of children
and medical benefit of life to the women. So the insurance and specially the life insurance
corporation & other insurance companies are playing more a social role than only covering risk.

INSURANCE MARKET
INSURANCE IS A RS. 400 BILLION BUSINESS IN INDIA , AND TOGETHER WITH BANKING
SERVICES ADDS ABOUT 7% TO INDIA S GAP. GROSS PREMIUM COLLECTION IS ABOUT
2% OF GAP AND HAS BEEN GROWING BY 15%-20% PER ANNUM . INDIA ALSO HAS

THE HIGHEST NUMBER OF LIFE INSURANCE POLICIES IN FORCE IN THE WORLD , AND

TOTAL INVESTIBLE FUNDS WITH LIC ARE ALMOST 8% OF GDP .YET MORE THAN THREE -

FOURTH OF INDIA S INSURABLE POPULATION HAS NO LIFE INSURANCE OR PENSION

COVER . HEALTH INSURANCE OF ANY KIND IS NEGLIGIBLE AND OTHER FORMS OF NON-

LIFE INSURANCE ARE MUCH BELOW INTERNATIONAL STANDARD .

INDIAN SCENARIO:
UNFORTUNATELY THE CONCEPT OF INSURANCE IS NOT POPULAR IN OUR COUNTRY. AS
PER THE CONCEPT OF INSURANCE IS NOT POPULAR IN OUR COUNTRY .AS PER THE

LATEST ESTIMATE , THE TOTAL PREMIUM INCOME GENERATED BY LIFE AND GENERAL

INSURANCE IN INDIA IS ESTIMATED AROUND A MANAGER 1.95% OF GDP .HOWEVER


INDIA S SHARE OF WORLD INSURANCE MARKET HAS SHOWN AN INCREASE OF 10%FROM
0.31% IN 2004-2005 TO 0.34%IN 2005-2006 INDIA S MARKET SHARE IN THE LIFE

INSURANCE BUSINESS SHOWED A REAL GROWTH OF 11% THEREBY OUT PERFORMING

THE GLOBAL AVERAGE OF 7.7%NON LIFE BUSINESS GREW BY 3.1% AGAINST GLOBAL

AVERAGE OF 0.20% .IN INDIA INSURANCE SPENDING PER CAPITA WAS AMONG THE

LOWEST IN THE WORLD AT $7.6 COMPARED TO $7 IN THE PREVIOUS YEAR . AMONG THE

EMERGING ECONOMY , INDIA IS ONE OF THE LEAST INSURED COUNTRIES BUT THE

POTENTIAL FOR FURTHER GROWTH IS PHENOMENAL , AS A SIGNIFICANT PORTION OF ITS

POPULATION IS IN SERVICE AND THE LIFE EXPECTANCY HAS ALSO INCREASED OVER THE

YEAR .

NEED FOR INSURANCE:-

MODERN LIFE INSURANCE CENTER TO MULTIPLE NEEDS FOR INSURANCE , WHICH CAN BE

BROADLY CLASSIFIED AS UNDER :

CASH AND INCOME NEEDS ON AN IMMEDIATELY FOLLOWING DEATH.


FAMILY INCOME NEEDS .
INCOME NEEDS OF A WIDOW ON THE DEATH OF HER HUSBAND.
CASH AND INCOME NEEDS OF A HUSBAND ON THE DEATH OF HIS WIFE.
RETIREMENT INCOME NEEDS
EDUCATION NEEDS.

WHAT IS A CONTRACT OF INSURANCE ?

A CONTRACT OF INSURANCE IS A CONTRACT OF UTMOST GOOD FAITH , TECHNICALLY

KNOWN AS UBERRIMA FIDES . THE DOCTRINE OF DISCLOSING ALL MATERIAL FACT IS

EMBODIED IN THIS IMPORTANT PRINCIPLE THAT APPLY TO ALL FORMS OF INSURANCE .


THE PROPOSER , WHO IS ONE OF THE PARTIES TO THE CONTRACT , IS PRESUMED TO HAVE

MEANS OF KNOWLEDGE THAT ARE NOT ACCESSIBLE TO THE CORPORATION WHO IS THE

ANOTHER PARTY TO THE CONTRACT THEREFORE THE PROPOSES IS BOUND TO TELL THE

INSURER EVERYTHING AFFECTING THE JUDGMENT OF THE INSURER .IN ALL THE

CONTRACT OF INSURANCE THE PROPOSES IS BOUND TO MAKE FULL DISCLOSER OF ALL

MATERIAL FACT AND NOT MERELY .THOSE WHO THINKS MATERIAL MISREPRESENTATION

NON DISCLOSURE OR FRAUD IN ANY DOCUMENT LEADING TO THE ACCEPTANCE OF THE

RISK AUTOMATICALLY DISCHARGES THE CORPORATION FROM ALL LIABILITIES UNDER

THE CONTRACT . ALTHOUGH SECTION 45 OF THE INSURANCE ACT 1938 PROVIDES THAT

NO POLICIES CAN BE CALLED IN QUESTION AFTER A PERIOD OF TWO YEARS FROM THE

DATES OF ITS ISSUE ON THE GROUND THAT ANY STATEMENT IN PROPOSAL OR A RELATED

DOCUMENT WAS FALSE ARE INACCURATE , THIS PROVISION IS NOT APPLICABLE IF THE

CORPORATION CAN PROVE THAT MISS REPRESENTATION OR NON - DISCLOSURE WAS

ON A MATERIAL FACT AND WAS FRAUDULENTLY MADE AND THAT THE POLICY HOLDER

KNEW AT THE TIME THAT STATEMENT HE MADE WAS FALSE . IT IS THEREFORE IF THE

INTEREST OF THE POLICYHOLDER TO DISCLOSE ALL THE MATERIAL FACT TO THE

CORPORATION TO AVOID ANY COMPLICATION WHEN THE CLAIM ARISES . IT IS EQUALLY

OBLIGATORY ON AN AGENT TO SEE THAT THE ASSURED DOESN T OBTAIN THE CONTRACT

BY MEANS OF UNTRUE REPRESENTATION . IT IS THE DUTY THAT THAT AGENT OWES BOTH

TO HIS CLIENT AND TO THE CORPORATION .

CLASSIFICATION OF INSURANCE BUSINESS :

THE INSURANCE IS BROADLY CLASSIFIED AS :

1) LIFE INSURANCE BUSINESS .

2) NON LIFE INSURANCE BUSINESS


LIFE INSURANCE BUSINESS:

IT IS THE BUSINESS OF AFFECTING CONTRACTS OF INSURANCE UPON HUMAN LIFE

INCLUDING ANY CONTRACT WHEREBY THE PAYMENT OF MONEY IS ASSURED ON DEATH

OR ON THE HAPPENING OF ANY CONTINGENCY TO THE DEPENDENT OF PREMIUM FOR A

TERM AND SHALL BE DEEMED TO INCLUDE :

THE GRANTING DISABILITY AND DOUBLE N TRIPLE INDEMNITY ACCIDENT

BENEFIT , IF SO PROVIDED IN THE CONTRACT OF INSURANCE .


THE GRANTING OF ANNUITIES OF HUMAN LIFE.
THE GRANTING OF SUPER ANNUATION ALLOWANCE AND ANNUITIES PAYABLE OUT

OF ANY FUND APPLICABLE SOLELY TO THE RELIEF AND MAINTENANCE OF THE

PERSON ENGAGED OR WHO HAVE BEEN ENGAGED IN ANY PARTICULAR

PROFESSION , TRADE OR EMPLOYMENT OR OF THE DEPENDENTS OF SUCH PERSONS .

NON LIFE INSURANCE BUSINESS:

CONVENTIONAL CLASSIFICATION OF INSURANCE BUSINESS :

FIRE INSURANCE
MARINE INSURANCE
MISCELLANEOUS INSURANCE (ACCIDENT )

MODERN CLASSIFICATION OF GENERAL INSURANCE :-

INSURANCE OF PERSON
INSURANCE OF PROPERTY
INSURANCE OF INTEREST
AN ACT TO PROVIDE FOR ESTABLISHMENT OF AN AUTHORITY TO PROTECT THE INTEREST

OF POLICY HOLDER , TO REGULATE TO PROMOTE AND ENSURE ORDERLY GROWTH OF

INSURANCE INDUSTRY AND FOR THE MATTER CONNECTED THEREWITH FOR INCIDENTAL

THERE TO AND FURTHER TO AMEND THE LIFE INSURANCE CORPORATION ACT , 1956 AND

THE INSURANCE ACT , 1938 AND GENERAL INSURANCE BUSINESS ACT 1972.

SPREAD LIFE INSURANCE MUCH MORE WIDELY AND IN PARTICULAR TO THE RURAL

AREAS AND TO THE SOCIALLY AND ECONOMICALLY BACKWARD CLASSES WITH A VIEW

TO REACHING ALL INSURABLE PERSON IN THE COUNTRY AND PROVIDING ADEQUATE

FINANCIAL COVER AGAINST DEATH AT REASONABLE COST .

MAXIMIZE MOBILIZATION OF PEOPLE S SAVING BY MAKING INSURANCE LINKED SAVING

ADEQUATELY ATTRACTIVE .

BEAR IN MIND ,IN THE INVESTMENT OF THE FUND , THE PRIMARY OBLIGATION TO ITS

POLICY HOLDER , WHOSE MONEY ITS HOLD IN TRUST ,WITHOUT LOOSING SIGHT OF THE

INTEREST OF THE COMMUNITY AS WHOLE , THE FUNDS TO BE DEPLOYED TO THE BEST

ADVANTAGE OF THE INVESTORS AS WELL AS TO COMMUNITY AS A WHOLE , KEEPING IN

VIEW NATIONAL PRIORITIES AND OBLIGATIONS OF ATTRACTIVE RETURN .

CONDUCT BUSINESS WITH UTMOST ECONOMY AND WITH THE FULL OF REALIZATION

THAT THE MONEY BELONGS TO THE POLICY HOLDER .

ACT AS TRUSTEES OF THE INSURED PUBLIC IN THEIR INDIVIDUAL AND COLLECTIVE

CAPACITIES . MEET THE VARIOUS LIFE INSURANCE NEEDS OF THE COMMUNITY WOULD

ARISE IN THE CHANGING SOCIAL AND ECONOMIC ENVIRONMENT . INVOLVE ALL PEOPLE

WORKING IN THE CORPORATION TO THE BEST THEIR CAPABILITY IN FURTHERING THE

INTEREST OF THE INSURED PUBLIC BY PROVIDING EFFICIENT SERVICE WITH COURTESY .


Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.

General insurance:-
The General Insurance industry in India dates back to the Industrial Revolution and the
subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the
British brought General Insurance to India, and a similar path was followed in the development
of this industry. A number of private companies were in existence for years and years until, in
1971, the Indian Government decided that the public interest would be served by nationalizing
the industry, merging all the 107 companies into four companies, depending on the sort of
business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company
Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the
United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras
respectively. The General Insurance Corporation (GIC) was set up in 1972 as a holding
company, having these four companies as its subsidiaries.
Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and
grouped into four companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India
Insurance Company Ltd. GIC incorporated as a company.
1.4 COMPANY PROFILE
Founder of Reliance
Few men in history have made as dramatic a contribution to their countrys economic fortunes as
did the founder of Reliance, Shri. 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 Indias capital markets, and the champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one
lifetime, he built, starting from the proverbial scratch, Indias 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 colossusan achievement which earned Reliance a place on the global
Fortune 500 list, the first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance
Textile Industries Limited first went public, the Indian stock market was a place patronized by a
small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to


participate in the unfolding Reliance story and put their hard-earned money in the Reliance
Textile IPO, promising them, in exchange for their trust, substantial return on their investments.
It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian
markets.Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the
greatest growth stories in corporate history anywhere in the world, and went on to become
Indias largest private sector enterprise.Through out this amazing journey, Dhirubhai always kept
the interests of the ordinary shareholder uppermost in mind, in the process making millionaires
out of many of the initial investors in the Reliance stock, and creating one of the worlds largest
shareholder families.

Overview

The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector business
houses on all major financial parameters, with a market capitalization of Rs.325,000 crores (US$
81 billion), net assets in excess of Rs.115,000 crores (US$ 29 billion), and net worth to the tune
of Rs.55,000 crores (US$ 14 billion)

Across different companies, the group has a customer base of over 100 million, the largest in
India, and a shareholder base of over 12 million, among the largest in the world.

Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians
every single day. It has a business presence that extends to over 4,500 towns and 300,000
villages in India, and 5 continents across the world.

The interests of the Group range from communications (Reliance Communications) and financial
services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance
Energy), infrastructure and entertainment.
1.4.1 VISION AND MISSION
Vision
To build a global enterprise for all our stakeholders and a great future for our country.
To give millions of young Indians the power to shape their destiny.
The means to realize their full potential.
Empowering everyone live their dreams.

Mission
Create unmatched value for everyone through dependable, effective, transparent, effective,
transparent and profitable life insurance and pension plans.

1.4.2 GOAL

Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

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


Values
SHAREHOLDER INTEREST
PEOPLE CARE

CONSUMER FOCUS

EXCELLENCE IN EXECUTION

TEAM WORK

PROACTIVE INNOVATION

LEADERSHIP BY EMPOWERMENT

SOCIAL RESPONSIBILITY

RESPECT FOR COMPETITION

SHAREHOLDER INTEREST

We value the trust of shareholders, and keep their interests paramount in every business decision
we make, every choice we exercise

PEOPLE CARE

We possess no greater asset than the quality of our human capital and no greater priority than the
retention, growth and well-being of our vast pool of human talent

CONSUMER FOCUS

We rethink every business process, product and service from the standpoint of the consumer so
as to exceed expectations at every touch point
EXCELLENCE IN EXECUTION

We believe in excellence of execution in large, complex projects as much as small everyday


tasks. If something is worth doing, it is worth doing well.

TEAM WORK

The whole is greater than the sum of its parts; in our rapidly-changing knowledge economy,
organizations can prosper only by mobilizing diverse competencies, skill sets and expertise; by
imbibing the spirit of thinking together -- integration is the rule, escalation is an exception

PROACTIVE INNOVATION

We nurture innovation by breaking silos, encouraging cross-fertilization of ideas & flexibility of


roles and functions. We create an environment of accountability, ownership and problem-solving
based on participative work ethic and leading-edge research

LEADERSHIP BY EMPOWERMENT

We believe leadership in the new economy is about consensus building, about giving up control;
about enabling and empowering people down the line to take decisions in their areas of operation
and competence.

SOCIAL RESPONSIBILITY

We believe that organizations, like individuals, depend on the support of the community for their
survival and sustenance, and must repay this generosity in the best way they can

RESPECT FOR COMPETITION


We respect competition because theres more than one way of doing things right. We can learn
as much from the success of others as from our own failures
1.4.3 ACHIEVEMENTS

RLIC has been one of the fast gainers in market share in new business premium
amongst the private players with an incremental market share of 4.1% in the Financial
Year 2007-08 from 3.9% in April 07 to 8% in Feb 08. ( Source: IRDA)

Also continues to be amongst the fast growing Private Life Insurance Companies
with a YOY growth of 195% in new business premium as of Mar08.

A Company that has crossed 1.7 Million policies in just 2 years of operation, post take
over of AMP Sanmar business.

Initiated Express Life an Unique Over the Counter sales process for Unit Linked
Insurance Policies in the Industry.

Accomplished a large distribution ramp-up in the Industry in a short span of time by


opening 600 branches in 10 months taking the overall branch network above 740.

RLIC continues to be one of the two Life Insurance companies in India to be certified
ISO 9001:2000 for all the processes.

Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of Merit in
the Financial Services category by Council for Fair Business Practices (CFBP).
LEADERSHIP TEAM
Board of Directors

Sr. No. Name Designation


1. Gautam Doshi Director
2. Satya Pal Talwar Director
3. Saumen Gosh Group President
4. P Nandgopal CEO
5. Malay Gosh Deputy CEO
6. Maneesha Thakur Chief Human Resources Officer
7. Rajesh Bahl Sr VP-Legal & Chief Financial Officer
8. Pournima Gupte Appointed Actuary
9. C Mohan Chief Technology Officer
10. R Rangarajan Chief Investment Officer
11. S V Sunder Krishnan Chief Risk Officer
12. Saroj K Panigrahi Head-Legal, Compliances & Company Secretary
1.5 PRODUCT PROFILE

RELIANCE LIFE INSURANCE PRODUCTS

Protection Plans

In todays uncertain world, there could be calamity at every step of the life. It is up to you to
ensure that your family stays protected always.
Child Plans

Being a parent is one of the joys of life. Your child looks up to you and depends on you for love,
protection and support. You want to provide your child with the best in life.

The Reliance Child Plan helps you save systematically so that you can secure your childs future
needs. Be it higher education, his or her first home or any other requirement, you will always be
there for your child when he or she needs you.

So, invest in a Reliance Child Plan right awayit is the best gift you could ever give
your child.

Some of the Child Plans are:-

Sr. No. Name of the plan


1 Reliance Super Invest Assure Plan
2 Reliance Child Plan
3 Reliance Wealth + Health Plan
4 Reliance Secure Child Plan
1.6 OBJECTIVE AND SCOPE OF THE STUDY

Objective of the study:

To study the sales strategy of field force of Reliance Life Insurance.


To study the process of selling of Insurance policies by Advisors.
To know client behavior and deal with clients.
To generate clients for company through a team of Advisors and insurance consultants.
To increase the market value of the company through product promotion.
Quick rollout of products.

Scope of the study:

At the present time of cutthroat competition in every industry, every company want to top the
chart and want to show as big as possible figure of profits in its balance sheet. It is quite clear
today that at present time the growth of any organization is possible only with the help of
hardworking and well focused staff that are the backbone of any organization.
It was my great pleasure that I completed my summer training from Reliance Life Insurance where
I got to know that in insurance industry the skills of the manpower matters most and increasing
number of insurance consultants help the organization to increase its policies which in turn result
in growth for the organization.
Chapter-II

RESEARCH METHODOLOGY

Research is an organized inquiry designed and carried out to provide information to solve the
problem. Research is the process of systematically obtaining accurate answer to significant
pertinent questions by the use of gathering data, interpretation and work.

Research methodology is a way to systematically solve the research problem. Research


methodology constitutes of research methods, selection criterion of research methods, used in
context of research study and explanation of using of a particular method or technique so that
research results are capable of being evaluated either by researcher himself or by others. Why a
research study has been undertaken, how the research problem has been formulated, why data
have been collected and what particular technique of analyzing data has been used and a best of
similar other question are usually answered when we talk of Research methodology concerning a
research problem or study. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet.

2.1 RESEARCH DESIGN

Exploratory & Descriptive 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 are conducted to collect
the customers perception and buying behavior, through this questionnaire
2.2 SAMPLING METHODOLOGY

2.2.1 Sampling Technique:


Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study
was done in order to know the accuracy of the Questionnaire. The final Questionnaire was
arrived only after certain important changes were done. Thus my sampling came out to be
Random Sampling.

2.2.2 Sampling Unit:


The respondents who were asked to fill out questionnaires are the sampling units. These
comprise of employees of MNCs, Govt. Employees, and Self Employed etc.

2.2.3 Sample size:


The sample size was restricted to only 100, which comprised of mainly people from different
regions of Pune due to time constraints.

2.2.4 Sampling Area:


The area of the research was Aundh, Kothrud, Hinjewadi (Pune), India.
2.3 INSTRUMENT FOR DATA COLLECTION

To know the response, I have used the questionnaire method. If one wishes to find what
insurance care consultants think or know, the logical procedure is to ask them. This has led
marketing researchers to use the questionnaire technique for collecting data more than any other
method.

In this method questionnaire were distributed to the respondents and they were asked to answer
the questions in the questionnaire. The questionnaire were structured non disguised questionnaire
because the question which the questionnaire contained, were arranged in a specific order
besides every question asked were logical for the study, no question can be termed as irrelevant.

The questionnaire was non-disguised because the questionnaire was constructed so that the
objective is clear to the respondent. The respondents were aware of the objective. They knew
why they were asked to fill the questionnaire.

With the help of following techniques, which are using by Reliance Life Insurance, I analyze that
the how techniques of sales promotion are useful.
2.4 DATA COLLECTION SOURCES

2.4.1 PRIMARY DATA SOURCES

Through interaction with insurance care consultant


Through questionnaires filled from the insurance care consultant.

2.4.2 SECONDARY DATA SOURCES:

Through internet, various official sites of the companies.


Through pamphlets and brochures of the companies.
Journals & Magazines.
2.5 LIMITATIONS OF THE STUDY

1. The research is confined to a certain parts of Pune and does not necessarily shows a
pattern applicable to all of Country.
2. The study was conducted in Reliance Life Insurance in Pune city. The sample size was of
100 only so that accuracy of data so collected could be absurd covered by circulation of
questionnaire.
3. The accuracy of indications given by the respondents may not be consider adequate as
whether the language used in the questionnaire is understood by the respondent cannot be
taken for granted.
4. The study is based on the information gathered from the different policyholders.
Therefore in such case it is possible that the information supplied might be biased
because the policyholders might have shown partiality towards different insurance
policies.
5. Since the survey was limited to 100, it is rather difficult to give a precise conclusion but I
have tried to the best of my capability to give the conclusion on a comprehensive manner.
Chapter-III

DATA ANALYSIS AND INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

NO.OF
COMPANYS NAME SHARE (%)
RESPONDENT

L.I.C. 78 78

RELIANCE LIFE
10 10
INSURANCE
ICICI PRUDENTIAL 3 3

SBI LIFE 7 7

HDFC 2 2
TOTAL 100 100
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

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Cover Future Uncertainty 55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100


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 SHARE (%)


RESPONDENTS
Money Back Guarantee 15 15
Larger Risk Coverance 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Companys Reputation 11 11
TOTAL 100 100

INTERPRETATION

Majority of the respondent (37%) found larger risk coverance as the most attracted feature of

the all.

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE


RESPONSE NO. OF SHARE (%)
RESPONDENTS

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

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 NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF SHARE (%)


RESPONDENTS

Paying tax 100 100%

Not paying tax - 0%

Total 100 100%

INTERPRETATION

Of the sample size of 100 respondents, all the respondents are paying tax.
DATA SHOWS RESPONDENTS INVESTMENTS FOR TAX SAVING

INVESTMENTS NO. OF SHARE (%)


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

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 SHARE (%)


RESPONDENTS
Fixed Assets 75 75%

Bank deposits 11 11%


Jewellery 25 25%
Securities i.e. bonds, MFs 40. 40%
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 PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES

RESPONSE NO. OF SHARE (%)


RESPONDENTS
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
0 0%

Very good
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.


DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF RESPONDENTS SHARE (%)

Planning 87 87%

Not planning 13 13%

Total 100 100%

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.


DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE

PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS

RESPONSE NO. OF SHARE (%)


RESPONDENTS
Yes 43 43%
No 44 44%
Uncertain 13 13%
Total 100 100%

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.


Chapter-IV

FINDINGS

For me the product promotion process was very much satisfying not only practically and
academically but it also helped me in developing my communication skill and enriched
my knowledge also.

I have come to know about the importance of marketing especially with regard to Product
Promotion on the most renowned organization like Reliance Life Insurance. Especially
because of emergence of many competitor with excellence in services & competitive
product. The base of this chapter conclusion is on the data analysis or what we say
findings.

According to the findings, most of the customers are planning for new investment.
Especially they are looking for a trusted name and if the products are good then they are
ready to invest despite a service provider is away from the city.

Most of the respondents think that Fixed Assets are the best form of investment for
securing their future.

Majority of the respondents perceive Insurance as a Saving Tool.

Finding says that low premium is the feature that attracts a person the most.
Chapter-V

CONCLUSION

The company faces a large amount of competition. To sustain itself it must promote its products
through advertising and improve its selling techniques. Consumers must be aware of the new
plans available at Reliance Life Insurance Co.Ltd.

The medium of advertising used could be television since most of its competitors use this tool to
promote their products. The company must be promoted as an Indian company since consumer
seem to have more trust in investing in Indian firms.

The Unit linked concept must be specifically promoted. The general perception of life insurance
has to change in India before progress is made in this field. People should not be afraid to invest
money on insurance and must use it as an effective tool for tax planning and long term saving.

Reliance Life Insurance co. Ltd. could tap the rural markets with cheaper products and smaller
policy terms. There are individuals who are willing to pay small amounts as premium but the
plans do not accept premium below a certain amount. It was usually found that a large number of
males were insured compared to females. Individual below the age of 30(mostly male) were
interested in investment plans. This was a general conclusion drawn during prospecting clients.

Chapter-VI
RECOMMENDATIONS

As the people think that insurance is a tool to protect their family & a tax saving device.

They are aware of the fact & realizing its, importance. The company should try to expand &

build up its infrastructure because there is a large potential for insurance in India.

Company should come up with its branch in rural areas, with the objective and goals to meet

the demands & expectations of the public. Because the entrance of private players will increase

the competition and it would be a tough task to secure a good position in market.

Since Reliance Life Insurance is one of leading company in insurance sector therefore it

should be easy for them to penetrate into the market and secure a good position if they pay

greater attention to the service part provided to their customer and thereby forming a long and

trusted relationship.

As seen from the survey that at present 70% of the customer are having insurance policy out

of which 87% of the customer are planning for new investments. So it can be a good potential for

the company and they should make an attempt to trap these customers.

43% of the customer is even ready to go for insurance if a service provider away

from their home is providing it. But intend they should provide good products and services. The

company should try to convince these customers and get them in its favor.
Chapter-VII

BIBLIOGRAPHY

1.) Books Referred

Kothari C. R.: Research Methodology (2004), New Age Publication

2.) Websites Referred

www.reliancelife.co.in

www.moneyoutlook.com

www.insurance.ind.com
ANNEXURE

(A) QUESTIONNAIRE

NAME: _________________________

ADDRESS: ______________________

______________________________

OCCUPATION: ___________________

ARE YOU EMPLOYED?


YES NO

DO YOU HAVE ANY INSURANCE POLICY?


YES NO

WHICH COS INSURANCE POLICY YOU PREFER THE MOST?


(RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE


f) TATA AIG LIFE

g) ANY OTHER ________ (Specify)

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)

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)

YOUR MONTHLY INCOME?

a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)


WHATS YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

DO YOU PAY TAXES?

YES NO

WHERE HAVE YOU INVESTED FOR TAX SAVING?

(RANK THEM)

a) LIC

b) NSC

c) BONDS

d) PPF
e) PF

f) EPF

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

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

WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?

(RANK THEM)

a) A TRUSTED NAME

b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS

d) ACCESSIBILITY

ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING


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