Anda di halaman 1dari 96

`SUMMER TRAINING PROJECT REPORT ON

RELIANCE LIFE INSURANCE COMPANY LIMITED

RECRUIT TEAM & SALE OF FINANCIAL PRODUCT


MASTER OF BUSINESS ADMINISTRATION SUBMMITED TO MR. PRAKASH KUNDANANI (PROJECT GUIDE) SUBMITTED BY ACHIN PURWAR MBA 3rd SEM (MARKETING & HUMAN RESOURCE) ROLL NO-0901170006

UNITED INSTITUTE OF MANAGEMENT, ALLAHABAD

DECLARATION

I ACHIN PURWAR hereby declare that the research project report entitled Sale of Financial Product has written by me at Reliance Life Insurance. During 12 June to 25 July 2010 and has not submitted anywhere in any manner.

ACHIN PURWAR Roll no-0901170006

ACKNOWLEDGEMENT

Presenting a Summer Training project of this type is an arduous task, demanding a lot of time. I cannot in full measure reciprocate the kindness shown and contribution made by various persons in this endeavor. I will remember all of them with gratitude. My sincere thanks towards Mr. VINOD KUMAR (Reliance Life Insurance, S.S.M. AURAIYA) for giving me a chance to take this project and for her valuable guidance, which helped me on all those points, which I needed to include in, with full intensity, for his significant support extended for the successful completion of the project. I am extremely gratified to MR. VINOD KUMAR who was extremely helpful in offering his professional expertise and bestowing me practical knowledge in all spheres related to the whole organization working. I am always thankful to my God, for always being with me and showing me the right ways, my family members, for always doing favors to me and my friends and colleagues consistently helped with encouragement and criticism throughout the project work.

ACHIN PURWAR

PREFACE
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 consumers preferred life insurer by understanding and meeting his needs.

Think Bigger, Think Better!

CONTENTS
PART-1
ABOUT INSURANCE INDUSTRYa) MEANING OF INSURANCE b) HISTORY OF INSURANCE c) IMPORTANCE OF INSURANCE

INTRODUCTION OF IRDA ABOUT LIFE INSURANCEa) HISTORY OF LIFE INSURANCE b) KEY FEATURES OF LIFE INSURANCE c) BENEFITS OF LIFE INSURANCE INTRODUCTION OF THE COMPANY OUR FOUNDER VISION & MISSION CHAIRMANS PROFILE DEPARTMET OF THE COMPANY RECRUITMENT OF ADVISOR

POPULAR RELIANCE LIFE INSURANCE PRODUCTS

COMPETITORS OF COMPANY COMPERATIVE STUDY

PART-2
OBJECTIVE OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION FINDING & CONCLUSION SUGESSION & RECOMMANDATION LIMITATION BIBLIOGRAPHY ANNEXURE

INSURANCE INDUSTRY
MEANING OF INSURANCE- Insurance is a policy from a large financial
institution that offers a person, company, or other entity reimbursement or financial protection against possible future losses or damages. The meaning of insurance is important to understand for anybody that is considering buying an insurance policy or simply understanding the basics of finance. Insurance is a hedging instrument used as a precautionary measure against future contingent losses. This instrument is used for managing the possible risks of the future. A simple example will make the meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still, people riding bikes cover their heads with helmets. This helmet in such cases acts as insurance by protecting him/her from any possible danger. The price paid was the possible inconvenience or act of wearing the helmet; this ie equivalent to the insurance premiums paid. Insurance may be described as a social device to reduce or eliminate risk of Loss to lif 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 ones 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. Insurance constitutes one of the major segments of the financial market.

HISTORY OF INSURANCE
The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the craven by giving loans, which were later repaid with interest when the goods arrived safely. The concept of insurance as we know today took shape in 1688 at a place called Lloyds Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyds became the one of the first modern insurance companies by the end of the eighteenth century. Marine insurance companies came into existence by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office. The early history of insurance in India can be traced back to the Vedas. The Sanskrit term Yogakshema (meaning well being), the name of Life Insurance Corporation of Indias corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of community insurance around 1000 BC. Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. The first Indian insurance company, the Bombay Mutual Life Assurance Society came into existence in 1870 to cover Indian lives at normal rates. The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over

insurance business. This amended insurance Act looked into investments, expenditure and management of these companies. By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life insurance was followed by general insurance in 1972.

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's 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 Lloyds on their anticipated dates of death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and two years later formed a New Lloyds. Coffee House that became known as the real Lloyds. Making wagers on peoples deaths ceased in 1774 when parliament forbade the practice.

INSURANCE MOVES TO AMERICAThe 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. 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 oldage pensions. Employees contribute a certain percentage of the premium for these policies.

FINAL THOUGHTSEven 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.

WHY INSURANCE IN INDIA1) Only 22% of the insurance population has been extended cover. 2) Market penetration is low and the potential to exploit is high. 3) Insurance premium per capita is very low. 4) Lack of comprehensive social system benefit and welfare means that demand 5) For pension products is high. 6) Huge middle class of approximately 300 Million. 7) Existing insurance company score low on customer service front. The insurance market registered growth in the Asian region even though Indias share in global insurance is less than 0.5% (1988) as compared to USA (24.2%) and Japan (21%). Studies have reveled that in an emerging market, as disposable income rises, Insurance premiums as a ratio of GDP shoots up. The confederation of Indian Industry projected a growth of Life Insurance premiums

from Rs 350 Billion at present to Rs.140 Billion. The growth of non-life insurance premium is expected to increase from 75billion to 375 billion. Out of which, only 10% is tapped by the existing insurer. Insurance even more than banking is a volume game. A very exclusive approach in view is unlikely to provide meaningful numbers. Currently, insurance is bought for the purpose of tax-benefits. A higher percentage of business is in the rural market. The share of rural new business insurance total new business is 55% in terms of policies and 47% in terms of sum assured. However, this needs to be viewed in the light of some recent issues that have been raised regarding as to what constitutes the rural market. Therefore, private insurers will be best served by middle market approach, targeting the customer segments that are presently unexploited. How many Indians are aware that LIC has more than 60Products and GIC has more than 180Products? Not only there is a reduction in the premiums of Life Insurance products have long overdue since Indian morality rate has decreased three folds in the last 50years. There is also scope to increase the yield on life insurance policies (presently 6%) with proper risk management in place. It is been debated that insurance business does not produce profit in the first five years cross subsidization is a feature of Indian market. Even the first portfolio vote that is considered profitable, cross subsidizes other departments. Tariffs reduction is likely to reduce profits; further insurers have to institute proper claims management progress in order to extract efficiencies. At present life insurance business in the country is taxed at 12.5% of the profit in financial year. The government is soon to present a new model of taxing life insurance companies at international rates. New entrants should be well advised to look ahead to the stage where brand strength will be a competitive advantage and sketch their alliances accordingly. In fact, we believe that alliance related to distribution rather than to produce or technology will prove most valuable in the long run. Banks and financial companies will emerge, as attractive distribution channel for this insurance trend will be led by two factors, which already apply in other world market. First Banking food insurance, fund management and other financial services companies are being to increase their profitability and provide maximum value to their customers. Therefore, they are themselves looking for a range of products to distribute. In other market notably Europe; this has resulted in bank assurance. Bank entering into the insurance business in India to bank hope to maximize

expensive existing network by selling a range of products more of a loss alliance between insurance and bank than a formal ownership. Some Indian entrants like ICICI, HDFC and Reliance hope to ride their existing network and customer bases.

IMPORTANCE OF INSURANCE:
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 to officers of LIC etc. So 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. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped. Before starting the discussion on insurance industry and related issues, we have to start with

the basics of insurance. So first we understand what is insurance?

TIME LINE IN INSURANCE HISTORY


(MAJOR LANDMARKS) 1818- British introduced the life insurance to India with the establishment of the Oriental Life Insurance Company in Calcutta. 1850- Non life insurance started with Triton Insurance Company. 1870-Bombay Mutual Life Assurance Society is the first India owned life insurer. 1912- The Indian Life Assurance Company Act enacted to regulate the life insurance business. 1938- The Insurance Act was enacted. 1956- Nationalization took place. Government took over 245 Indian and foreign insurers and provident societies. 1972- Non-life business nationalized, General Insurance Corporation (GIC) came into being. 1993- Malhotra committee was constituted under the chairmanship of former

RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms. 1994- Malhotra committee recommended reentry of private players. 1997- IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. 2000- IRDA started giving license to private insurers. ICICI Prudential, HDFC were first private players to sell insurance Policies. 2001- Royal Sundaram was the first non-life private player to sell an insurance policy. 2002- Bank allowed selling insurance plans as TPAs enter the scene, insurers start setting non-life claims in the cashless mode.

IRDA
(Insurance Regulatory & Development Authority)

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) wasestablished on 19th April 2000 to protect the interests of holder of insurance policy and to regulate , promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or Through its subsidiary companies or its nominees, do not exceed 26%, paid up equity Capital of such Indian insurance company; The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores. The Authority has notified 27 Regulations on various issues which include Registration of Insurers,

Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

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.

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. Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due. 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. Universal life insurance (UL) is a relatively new insurance produc intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher 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.

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. During the feudal period, early forms of insurance ebbed with the decline of travel and long-distance trade. But 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. And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children.

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 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, 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 Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are1907 - 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 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.

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE 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 sociallyoriented 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.

KEY FEATURES OF LIFE INSURANCE1) 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.

2) 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.

3) 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.

4) 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, after any applicable surrender charges, if the policy were surrendered before the insured's death.

5) Bonus: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus.

6) 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.

BENEFITS OF LIFE INSURANCE1. Risk cover: Life Insurance contracts allow an individual to have a risk cover against any Unfortunate event of the future.

2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual.

3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies.

4) Retirement Planning: What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years. Moreover the cash value can be used as an additional income in the old age.

5) Educational Needs: Similar to retirement planning the cash values that flow from ones life insurance schemes can be utilized for educational needs of the insurer or his children.

INTRODUCTION TO THE COMPANY


ABOUT RELIANCE LIFE INSURANCE Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services.

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate.

HISTORYReliance Capital Limited announced the launch of its life insurance business on February 1, 2006. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. It was in August 2005 that the ball was set rolling when Reliance Capital Limited, the financial arm of Reliance Anil Dhirubhai Ambani Group (ADAG) announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited; and the formal transfer of shares took place in October 2005. The company will issue all policy contracts under the Reliance Life Insurance Company limited name. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact.

Important facts Reliance Life Insurance has more than 740 branches located in different parts of the country. Reliance Life Insurance is an ISO 9001:2000 certified company.

The registered office of the firm is located in the commercial capital of India, Mumbai. The insurance firm offers products meant to suit the requirements of individuals and of corporates in India.

Achievements

RLIC closed the last financial year with a New Business Premium of Rs 3513 Crores.

For 3 successive years, since inception, the Company has been amongst the fastest growing Companies in the Life Insurance Industry achieving a growth rate of 28% in the last financial year against a market growth of -6%. In the Individual Business segment, the company achieved a growth rate of 59% in terms of WRP against the private industry growth of 1%.

Reliance Life has been one of the fastest gainers in market share growing from 1.9% amongst private players in Mar'06 to 10.3% as of Mar'09. This has resulted in the Company growing to becoming the 4th largest private player in just two years starting at position of 11.

The Company has been the fastest company to reach the 3 million policy mark and was the 3rd largest private insurer in terms of Policy count in 2008-09

Reliance Life has accomplished a large distribution ramp-up in the Industry in a short span of time by opening 1145 branches in just over 2 year.

RLIC continues to be amongst the foremost 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).

The Company has also won the DL Shah Quality Council of India Commendation Award in the services category in feb 2008 for its work on promoting 'self help channels for service'

Continuous increase in market share over 4 years; from 1.9% in 2005-06 to 10.26% in 2009 -10 RLIC has achieved a growth rate of 21% while the private industry has grown at 13%. Fastest to reach the 5 million policy mark. Largest private insurer in terms of policy count in 2009-10.

1145 branches 1,95,000 Advisors and over 16,000 employees

OUR FOUNDER-

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 (1932-2002). 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 an 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. Backward vertical integration has been the corner stone of the evolution and growth of reliance. Starting with textiles in the late seventies, reliance pursued a strategy of backward vertical integration in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production to be fully integrated along the materials and energy value chain.

VISION & MISSION

Vision
Empowering everyone live their dreams.

Mission

The mission of Reliance Life Insurance Company Limited is to be the best in every sphere- business results, customer care and employee focus. 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:

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

CHAIRMANS PROFILE

Regarded as one of the foremost corporate leaders of contemporary India, Anil Dhirubhai Ambani is the chairman of all listed group companies, namely-reliance communications, reliance capital, and reliance energy and reliance natural resources ltd. He is also chairman of the board of governors of Dhirubhais Ambani institute of information and communication technology, Gandhi Nagar, Gujarat Till recently, he also held the post of vice chairman and managing director in reliance industries ltd (RIL), Indias largest private sector enterprise. Anil d Ambani joined reliance in 1983 as co-chief executive officer, and was centrally involved in every aspect of companys management over the 27 years.

HE IS A MEMBER OF Wharton board of overseers, The Wharton School ,USA Central advisory committee, central electricity regulatory commission

Board of governors IIM, Ahmadabad. Board of governors, IIT Kanpur. In June 2004, he was elected for a six year term as an independent member of the Rajya Sabha, upper house of Indias parliament a position he chose to region voluntarily on march 25,2006.

AWARDS AND ACHIEVEMENTS Conferred the CEO of the year 2004 in the Platts Global Energy Awards. Rated as one Indias Most Admired CEOs for the sixth consecutive year in the business barons TNS mode opinion poll, 2004 Conferred the entrepreneur of the decade award by the Bombay management of association October 2002. Awarded the first Wharton Indian alumni Award by the Wharton India Economic Forum. (WIEF) in recognition of his contribution to the establishment of reliance as a global leader in many of its business areas, December 2001. Selected by Asiaweek magazine for its list of leaders of the millennium in business and finance and was introduced as the only new hero in business in finance from India June 1999.

GROWTH OF RELIANCE
Reliance was started from scratch in the year 1906 by Dhirubhai Ambani From here we start the journey of Reliance: 1906 Birth of Reliance 1st textile mill at Naroda 1971 Launch of Only Vimal brand 1977 Launch of 1st IPO for general public 1985 Total assets cross 1000 crore. 1992 Twin IPO receives 1 million applications. 1993 Sales cross 4000 crore & it became largest pvt. Sector co. in India 1997 First corporation in Asia to issue 50 & 100 year bond in US debt Market. 1998 Total assets cross 3500 crore & revenues cross 14000 crore. 2000 Group Profit Cross 2500 crores. Revenues cross 2000 crore. Total Assets cross 5000 crore. 2001 Group revenues cross 60000 crore & it became largest business group IN INDIA. 2003 Controlling stake in BSES Reliance Energy. Reliance India Mobile, largest Mobile services in India.

2005 ADA Group acquired AMP SANMAR. 2006-07 RLI ranked 6th at 930 crore. Sep2007 Became 1st company to cross 1 million policy in 2 years. 2007 It gets ISO certification. 2008 Cross 2 million policies. 2008 Reliance jumps to 4th position After tolerating many hardships Reliance is now ranked 4th among top Financial services providers.

Now reliance is in no. 3rd position in insurance sector.

HEAD-OFFICEReliance Life Insurance Company Limited, The Trapezium, 39, First Floor,

Nelson Manickam Road, Chennai.

BRANCHESThey have so many branches and substations in the India. They have above 1145 branches in the India. And they have planned to open more branches Across the country in the coming months.

DEPARTMENTS OF THE COMPANY

OPERATION DEPARTMENT:

In Reliance Life insurance, operation department deals with certain tasks Settlement of customers claim Dissolution of customers query Entertain customer Log in policies

RECRUITMENT DEPARTMENT
In Reliance Life insurance, Recruitment Department deals with certain task Organize activities Screening of application Recruit Agents / Advisors Organize Career Seminar & interview

TRAINING DEPARTMENT:
In Reliance Life insurance, Training Department deals with certain task Provide training to agents/ advisors Provide training to managers

SALES DEPARTMENT:
In Reliance Life insurance, Sales Department deals with certain task Sales policies

RECRUITMENT OF ADVISOR

RECRUITMENT:

Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a Pool of applicants from which new employees are selected. In this company the Sales Manager, who recruits the advisors/agents For selling the products of the company, does the recruitment. The advisors should have at least passed the S.S.C. examination. They must pass the prerecruitment examination, which is conducted by the Insurance Institute of India, Mumbai, or any other approved Examination body. After clearing the examination the code will be provided to them and the license will also be given to them, the validity the license would be 3 years. After all these requirements, the person will become an insurance advisor in the company.

SELECTIONSelection is the process of picking individuals (out of the pool of job Applications) with requisite qualifications and competence to fill job in the organization. In simple words, it is the process of differentiating between applicants in order to identify these with a greater likelihood of success in a job.

TRAINING AND DEVELOPMENTTraining and Development is any attempt to improve current or future of employee performance by increasing an employees ability to perform. Training and Development is any attempt to improve current or future employee performance by increasing an employees ability to perform through learning usually by changing the employees attitude or increasing his/her skills and knowledge. The need for training and development is determined by the employees performance deficiency, computed as follows:

Training & Development = Standard Performance Actual Performance

PERFORMANCE APPRAISAL
Performance appraisal is the systematic evaluation of the individual With respect to his/her performance on the job and his/her potential for development. Performance appraisal is a formal, structured system of measuring and evaluating an employees job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization and society all benefit. They are providing a balanced scorecard approach for strategy deployment and performance measurement, which goals and measure financial, customer focused, process related and employee development related initiatives. In addition to this, the Branch Manager should measure the performance of the Sales Managers at every six Months and the Sales Manager should measure the performance of the advisors/agents. If the performance is best then he/she will be prompted.

ORGANIZATION FORM AND STRUCTURE DEPARTMENTCEO CMO

Channel Head Regional Head Branch Head Sales Manager Advisors/Agent Customers

DISTRIBUTION CHANNELReliance Life Insurance Company Limited is using five types of distribution channel, which are as follows.

1) Agency: -

Independent insurance agents represent a number of companies and can research these Companies products to find the right combination for their clients. Independent agents & insurance producer groups are growing in prevalence. Although producer groups are in their infancy, their emergence may potentially be realignment in the distribution of financial services. Independent shops realized that by pooling production and funding a central support office, they had increased buying power. The one type of distribution channel, which Reliance Life Insurance Co. Ltd is using, is an agency. This channel works as follows:-

Branch Managers Advisors Customers

2) Bank Assurance: While a lot of bank relationships with insurance companies have been established, life insurance sales have been slower than one would expect he primary bank insurance activities have been the distribution of annuities, credit life, and direct marketing insurance. Banks are failing to incorporate successful sales tactics used to sell other financial services like investments. Another type of distribution channel is bank assurance. This

channel is tie up with bank. In this channel the advisors using or targeting the bank customers to make a business with them i.e., to sell the policy of the company.

3) Corporate:To gain a better understanding of the demand amongst independent advisors for trust services and to gain a better feel for how independent advisors handle trust services, a research was performed with independent advisors across several broker/dealers and custodians. The interviews revealed that demand is greatest for living trusts among independent advisors, followed by demand for corporate trustee services.Another type of distribution channel is corporate, which are for employee benefits. This channel is tie up with corporate or small enterprises. Through these small enterprises, the advisors will sell the products/policy to customers of the small enterprises.

4) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business lost by the banks. These firms have steadily captured assets, primarily at the expense of the banks. The number of non-bank trust companies has increased in recent years as independent trust companies have emerged and more broker/dealers are integrated services. Insurance companies view full-service brokers as a potentially new distribution channel as well. Another type of distribution channel is rural benefits. This channel works as a dealership. In this channel, the dealers will sell the policy to the target customers.

5) Web World:Direct sales of life insurance are growing rapidly, but many of the traditional full-serve players seem to be letting it go. Across all financial services, consumers are expressing a willingness to deal with a variety of providers on the web. Web sites are starting to pop up offering consumer insurance products especially designed for distribution over the web. Another type of distribution channel is web world. This channel is tie up with customer database. In this channel, the advisors will sell the policy to the target customers, which are taken from the customer database, are listed in the website.

POPULAR RELIANCE LIFE INSURANCE PRODUCTSThere are various, popular insurance products that Reliance offers to customers in India. Some of the major Reliance Insurance products have be enlisted below Reliance Whole Life Plan Reliance Endowment Plan

Reliance Term Plan Reliance Child Plan Reliance Cash Flow Plan Reliance Golden Years Plan Plus

EACH OF THE ABOVE TRADITIONAL PLANS IS DISCUSSED AS FOLLOWS:1) Reliance Whole Life Plan: This insurance policy is designed for people who do not wish to avail of any benefits Themselves but wish to create an immediate estate to protect their family by availing of insurance cover on their life at a very low cost. Features: a) It is a whole life insurance policy with profits b) Low cost life cover c) Maturity age is 85 year or 99 years last birthday as chosen d) Maturity amount = Sum assured + Vested bonus e) Tax benefit is available.

2) Reliance Endowment Plan: Reliance Life Insurances Reliance Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business.

In a nutshell this plan will keep you financially prepared for all the special occasions in your life - your daughters wedding, your childs university education or even a new office for your business - by eliminating the burden that a shortage of money creates. In the event of your untimely death, Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides. Reliance Endowment Plan also gives you the additional benefit of participating in the companys profits, which you will receive at the end of the policy period. Features: a) Entry age minimum is 5 year and maximum 65 year b) Maturity age minimum is 18 year and maximum 75 year c) Minimum premium paying term is 5 year and maximum 35 year in case of regular and in case of single 15 year d) Minimum sum assured is Rs. 25,000 or as determined by the minimum premium e) Maximum sum assured is Rs. 5, 00,000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual, half yearly, quarterly and monthly (by salary deduction only) g) Loan up to 90% of the surrender value of the policy h) Maturity amount = Guaranteed sum assured + Reversionary bonus.

3) Reliance Term plan:


This insurance policy is designed for those who only want life cover for the protection of their family, and do not wish to save for themselves. It can also be useful to business firms that wish to provide financial security to their business against the sudden loss of partners or valuable manpower. Since there is no saving element or bonus provision, the premium is very low. Hence, this is a high-risk plan with a low premium. Features: a) Purely a term plan

b) Entry age minimum 18 years and maximum 65 year c) Maximum premium paying term is 30 year d) Loan facility N.A. e) Maturity amount = Sum assured

4) Reliance Child Plan: This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money. This is especially true when it comes to paying large sums of money for higher education as and when your son or daughter is studying to become an Engineer, a Doctor or specialize in some other field, or is perhaps planning to go abroad. This money is payable in equal installments over the last 4 years of the policy term. Features: I. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs. 25,000. b) Minimum premium paying term is 5 year and maximum 20 year c) Tax benefit is available d) Maturity amount = Four equal installment of sum insured in last four year plus vested bonus in the last year e) Loan facility is available

5) Reliance Cash Flow Plan: This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. The advantage of the policy is that they need not part with a sizable amount of money at any one time, but create, through regular premium payments, a periodic return of lump sums which become

available for reinvestment at higher returns, while providing simultaneously, substantial life cover. Alternatively, it can be used to meet any immediate financial crisis in the family like your son's college admission, your daughter's engagement, and renovation of your home or perhaps, a holiday abroad. The money is payable in installments. The first installment is paid at the end of the 4th year and thereafter at the end of every 3rd year. Features:a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year c) Maximum premium paying term is 34 year d) Loan facility is not available e) In case of death full sum assured + accrued bonuses up to the date of death is payable immediately. f) In case of survival up to maturity date all premium paid g) Rider accident death and critical illness h) Mode of payment is available f) Loan facility is not available g) One switches every year free and subsequent switches charged 1% of the amount switched h) Partial withdrawals per year under regular and single premium options is 2 times .

LIFE INSURANCE COMPANIES IN INDIA


There are many Life Insurance Companies in India. Some of the leading life insurance Companies in India are as follows:-

Public Sector
Life Insurance Corporation of India www.licIndia.com

Private sector
Allianz Bajaj Life Insurance Company Ltd. Birla Sun Life Insurance Company Ltd www.allianzbajaj.co.in. www.birlasunlife.com

HDFC Standard Life Insurance Company Ltd. www.hdfcinsurance.com ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance co. Ltd. Max New York Life co. Ltd. Metlife India Insurance co. Ltd. Om Kotak Mahindra Life Insurance co. Ltd. SBI Life Insurance co. Ltd. Tata AIG Life Insurance co. Ltd. AMP Sanmer assurance co. Ltd. www.iciciprulife.com www.ingvysyalife.com www.maxnewyorklife.com www.metlife.com www.omkotakmahindra.com www.sbilife.co.in www.tata.aig-com www.ampsanmer.com

COMPETITORS OF COMPANY
1. Birla Sun Life Insurance 2. HDFC Standard Life Insurance 3. ICICI Prudential 4. LIC 5. Kotak Mahindra 6. Max New York Life

7. Aviva Life Insurance India 8. ING Vysya Life Insurance 9. Metlife India Insurance 10. Bajaj Allianz Life Insurance 11. SBI Life Insurance 12. Tata AIG Life Insurance 13. Sahara India Insurance Company Ltd 14. Shriram Life Insurance Company Ltd

COMPERATIVE STUDYPresently there are 15 Life insurance companies in the country. There is only one public sector company LIC and the rest 14 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

Sahara India Life Insurance Company Ltd.: First Wholly Indian Owned Private Life Insurance Company. The Company commenced operations from 30th October 2004.

Shriram life insurance company Ltd: Shriram Life is a recent entrant into the life insurance sector .It is a 74:26 joint venture between the Shriram group through its Shriram. Financial Holdings and Sanlam Life Insurance Limited, South Africa.

OBJECTIVES OF STUDY
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 the perception of the consumer about life insurance. 4) To get a deep knowledge of the financial product like insurance.

5) To get some information about the market share of Reliance Life Insurance as compared to the giants like LIC and to know the Standing of the company in the market. 6) Increasing Customer Trust over Products Of Reliance Life Insurance.

RESEARCH METHODOLOGY
There are many type of research which is given belowa) Applied research b) Fundamental research c) Quantitative research

d) Qualitative research e) Exploratory research f) Descriptive research

In the project report we use two type e of research which is defined as-

a) Descriptive ResearchDescriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic. The major purpose of descriptive research is description of state of affairs

b) Exploratory ResearchExploratory research is an initial research which analyze the data and explore the possibility of obtaining as many relationship as possible between many variables without knowing their application. This research provide important finding and establishing various relationship among different variables. It is used to identify and obtain information on a particular problem or issue. The focus is on gaining insights and familiarity for later investigation. Secondly, descriptive research describes phenomena as they exist.

SAMPLING METHOD AND SAMPLE SIZE Introduction:Any organization whether big or small, private or public needs different types of Information is to know its popularity. I have gathered primary data and secondary data and collected information from the combination of these two data. Primary data: Primary data is collected through face to face interaction with employees \of insurance companies, by meeting them in personal.

Secondary data: I have gathered secondary data from the internet, different magazines, and brochures. SAMPLE SIZE: Population: Auraiya district Sample Size: 100 Sample Technique: Convenance Sampling

QUESTIONNAIREIt is most common instrument whether administered in person by phone or online Questionnaires are very flexible. The form of each question is also important. Closed end question include all the possible answers and subjects matters choices among them. I have used open-end questions so that customers can write answer in their own words. I have also used closed-end questions, which provide answers that are easier to interpret and tabulate. I have taken care in the wording and ordering of questions. I have used simple, direct, unbiased wording questions, which are arranged in a logical order. I have asked personal questions at last so that respondent does not become defensive.

Questionnaire of the customer


I have made questionnaire consisting seventeen questions to get customers view about life insurance. I have asked personal questions at last so that they do not become defensive. I have tried to know their performance i.e. whether they want to invest, where thy want to invest, up to what amount and since when

ANALYSIS OF QUESTIONNAIREHere I have formed a questionnaire to study why people go for life insurance. What is Peoples major motive behind investing in life insurance? Do they decide upon their own or they take guidance of an agent? What is their perception about Reliance Life Insurance Company Limited?

Questions:There are some questions in the questionnaire.

Target Population:I had conducted this survey among 100 people, and the target group was a mix of people from the society. I asked the questions to Doctors, Professionals, Professors, Advocates, Engineers, and general public.

Analysis:I have used pie charts, and some other statistical measures to analyze the questions.

DATA ANALYSIS & INTERPRETATION

1) DATA OF RESPONDENTS WHO HAVE FAITH IN INSURANCE SECTOR. NO OF RESPONDENTS YES NO RESPONSE 45 55

YES
45 55

NO

Interpretation 45% people are faith in insurance sector. 55% people are not faith in insurance sector.

2) DATA OF RESPONDENT WHO EVER HEARD ABOUT RELIANCE LIFE INSURANCE.

NO. OF RESPONDENTS YES NO

RESPONSE 75 25

25

YES

75

NO

Interpretation Mostly 75% person are in yes. But only 25% person are in no.

3) DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES. COMPANYS NAME LIC RELIANCE LIFE INSUANCE S BI LIFE NO. OF RESPONDENT 65 10 15

ICICI PRUDENTIAL HDFC

7 3

LIC RELIANCE LIFE INSUANCE S BI LIFE 65 ICICI PRUDENTIAL HDFC

7 15 10

Interpretation 65% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents. 4) DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS

FEATURE

NO.OF RESPONDENTS

Money Back Guarantee Larger Risk Coverance Easy Access to Agents

18 38 6

Low Premium Companys Reputation

26 12

12 26 6

18

38

Money back guarnatee Larger risk coverance Easy access to agents Low premium Company reputation

Interpretation Majority of the respondent (38%) found larger risk coverance as the most attracted feature of the all. 26% of the respondents found in low premium. 18% of the respondents found Money back guarantee. 12% of the respondents found companys reputation. 6% of the respondents found easy access to agents

5) DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS. Policy type NO. OF RESPONDENTS Life policy Non Life policy Both 80 20 40

40 80

Life policy Non Life policy Both

20

Interpretation 80% of the respondents have Life Insurance Policy while 20% have Non life policy and 40% have both.

6) DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE. Response A saving tool A tax saving device No. of respondents 75 70

A tool to protect your family 100

1 00

75

As aving tool A tax s aving device

7 0

A tool to protect your fam ily

Interpretation 81% of the respondents has 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.

7) DATA SHOWS PEOPLES HAVING INSURANCE. RESPONSE NO. OF RESPONDENTS Yes No 75 25

25 Yes No 75

Interpretation The sample size of 100 surveyed respondents 75% of the respondents are having Insurance policy. 25% of the respondents is either not having any Insurance policy at present or their policy is already matured.

8) DATA SHOWS BUYING PROCESS OF THE PEOPLE.

BUYING PROCESS

NO. OF RESPONDENTS

40 Customer approached Insurance company 60 Company/agent approached customer

40 60

Customer approached Insurance company Company/age nt approached customer

Interpretation 40% of the respondents approached the Insurance Company / Agent. Whereas, 60% of the respondents were approached by the Company /Agent.

9) DATA SHOWS REASONS BEHIND FOR INSURANCE.

RESPONSE

NO. OF RESPONDENTS

Tax saving

85

Saving / Investment Family protection

80 100

100

85

Tax saving Saving / Investment Family protection

80

Interpretation 85% of the Respondents opted for Insurance for tax saving benefits. 85% of the Respondents opted for saving / Investments. But all of them, i.e. 100% of the respondents have opted for insurance for their Family protection.

10) DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY.

RESPONSE

NO. OF RESPONDENTS

Satisfied

70

Not satisfied Not Responded

30 0

30

0 S fied atis Not s fied atis Not R ponded es

70

Interpretation 70% of the respondents are more or less satisfied with their existing policy. 30% of the respondents are not satisfied with their existing policy. In this case all of those who have taken a policy have responded.

11) DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO SERVICE AGENT.

RESPONSE

NO. OF RESPONDENTS

Satisfied

15

40 60 40

On my own Family decision Satisfied Agent Not satisfied guidance Employer decides

Not satisfied

20

60

Not Responded

60

Interpretation 40% of the respondents are satisfied with their existing service agent. 60% of the respondents are not satisfied with their existing insurance agent.

12) DATA SHOW WHO DECIDE ABOUT INVESTING IN LIFE INSURANCE. Source On my own Family decision Agent guidance Employer decides 60 20 15 5 No.

Interpretation Mostly people depend own decision so he invest in life insurance (60%). This is a very crucial question as most of the people are not much familiar about different life insurance plans offered by different life insurance(20%). People take help of the life insurance agent and as he guides understanding the needs of the individual (15%). Also sometimes it depends upon the employ decides(5%

13) DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE. NO. OF RESPONDENTS Fixed Assets Insurance Securities i.e. bonds Jewellery Bank deposits Shares 80 75 30 25 20 15 80 75 30 25 20 15 SHARE (%)

Fixed Assets Insurance 20 25 30 75 15 80 Securities i.e. bonds Jewellery Bank deposits Shares

Interpretation 80% of the respondents as with the view that Fixed Assets is the best form of Investment for securing their future. 70% of the respondents are with the perception that Insurance is the best form of Investment for securing their future. 30% of the respondents believe on securities. 25% of the respondents secure the jewelers. 15% of the respondents deposit in the bank. 10% of the respondents believe in shares.

14) DATA GIVES PEOPLES PERCEPTION ON APPROPRIATE AGE FOR. RESPONSE NO. OF RESPONDENTS 35 10 0 65

After 25 years After 35 years After 45 years Anytime

35

65 0 10

After 25 years After 35 years After 45 years Anytime

Interpretation 35% of the respondents are with the view that insurance should be bought after the age of 25 years. 10% of the respondents are with the view that insurance should be buy After the age of 35 years. Whereas, 65% of the respondents are with the view that buying of insurance do not have anything to do with age i.e. there is no age limitations.

20

YES

NO 80

15) IF YOU GET ANY ATTRACTIVE PLAN THAN ARE YOU READY TO SWITCH OVER. RESPONSE YES NO No. 80 20

Interpretation-

On the basis of the above analysis it is clear that around 80% of the policy holders are ready to switch over & 20% if they get good attractive insurance plan and rest of them dont switchover.

SWOT ANALYSISSWOT analysis is the analysis of the internal and external factors, which have impact on the survival of any organization. Now lets make SWOT analysis for Reliance Life Insurance Company Limited.

STRENGTHS: 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) Good Range of products. 4). Reliance Life Insurance has established strong focus on quality in insurance sector and had got consistent and good consumer support. 5) Reliance life insurance is also available in rural and urban area.

WEAKNESSES: 1) Lack of advertisement, so most of the customers are not aware of the Reliance Life Insurance.

2) Lack of staff. 3) Communication gap among employees.

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) Increasing per capita income of middle class families in India. 3) The average insurance premium being collected by the company has been growing exponentially year on year.

THREATS: 1). LIC is giving main threats to private sector companies in market. 2) The main threat is from the other players who have grabbed approximately 15% of the market share.

FINDINGS
Call 30338181 or 1800 300 08181 is not work properly. People are not satisfied with their agent. Customers say that marketing executive make false claim. Mostly peoples do not believe in life insurance. Peoples are not much aware about products. People do not satisfy with respect to their policy.

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 growing sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. 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. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased.

SUGESSION

The company should find out the no. of people who are not having any of the insurance Plans through an intensive market research and motivate them to get insured. Company should target each and every class of the society Company should provide full information to the customers before Targeting so they can take interest. Product brochure should be easy to understand. All terms and conditions should be written. There should sufficient advertisement of the company and about product knowledge.

RECOMMANDATION
. Improving the call center service. Increasing the staff for customer support and service. Promptly addressing the customer grievances. Proper training should provide to marketing executive. HR can help deliver organizational excellence by focusing on learning Quality, teamwork, and through various employee friendly strategies.

LIMITATIONS
The research is confined to a certain parts of AURAIYA and does not necessarily shows a pattern applicable to all of Country. The opinion expressed by the respondents may be biased. The attitude of the research might be biased. 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.

BIBLIOGRAPHY AND REFERENCES Books Marketing management- PHILIP KOTLER Research methodology- C. R. KOTHARI

Magazines Business world Business today

Websites www.reliancelife.com www.indiainfoline.com www.bimaonline.com www.google.com

Life Time Magazine of Reliance Life Insurance Broachers of Reliance Life Insurance

QUESTIONNAIRE
ANNEXTURE

DATA OF RESPONDENTS WHO HAVE FAITH IN INSURANCE SECTOR YES NO

DATA OF RESPONDENT WHO EVER HEARD ABOUT RELIANCE LIFE INSURANCE YES NO

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES LIC RELIANCEN LIFE INSURANCE SBI LIFE ICICI PRUDENTIAL HDFC

DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS MONEY BANK GAURANTEE LARGER RISK CONVERANCE EASY ACCESS TO AGENTS LOW PREMIUM COMPANYS REPUTATION

DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS LIFE POLICY

NON LIFE POLICY BOTH

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE A SAVING TOOL A TAX SAVING DEVICE A TOOL PROTECT YOUR FAMILY

DATA SHOWS PEOPLES HAVING INSURANCE YES NO

DATA SHOWS BUYING PROCESS OF THE PEOPLE BUYING PROCESS-

CUSTUMER APPROACHED INSURANCE COMPANY

COMPANY/AGENT APPROACHED CUSTOMER

DATA SHOWS REASONS BEHIND FOR INSURANCE-

TAX SAVING SAVING / INVESTMENT FAMILY PROTECTION

DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY-

SATISFIED NOT SATISFIED NOT RESPOND

DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO SERVICE AGENT-

SATISFIED NOT SATISFIED NOT RESPONDED

DATA SHOW WHO DECIDE ABOUT INVESTING IN LIFE

INSURANCE ON MY OWN FAMILY DECISION AGENT GUIDENCE EMPLOYER DECIDES

DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE FIXED ASSETS INSURANCE SECURITIES I.E. BONDS JEWELLERY BANK DEPOSITS SHARES

DATA GIVES PEOPLES PERCEPTION ON APPROPRIATE AGE

FOR BUYING INSURANCE AFTER 25 YEARS AFTER 35 YEARS AFTER 45 YEARS ANYTIME

PERSONAL DETAILS
1) AGE(a) 18 to 30 (b) 31 to 50 (c) 51 to 65 2) OCCUPATION(a) Service (b) Business (c) Profession (d) Housewife

(e) Retired . 3) INCOME(a) 50,000 to 1,00,000 (b) 1,00,000 to 5,00,000 (c) More than 5,00,000

4) FAMILY MEMBERS(a) 2 (b) 3 (c) 4 (d) More than 4

Anda mungkin juga menyukai