A SUMMER TRAINING PROJECT REPORT

on

MARKET SURVEY
at RELIANCE LIFE INSURANCE CO. MUZAFFARNAGAR Submitted By: Amit Chaudhary 0724970003

For partial fulfillment of the requirements for the award of Degree of Master of Business Administration
(2007-09)

Shri Ram College of Management Muzaffarnagar

ACKNOWLEDGMENT

ACKNOWLEDGMENT
A single person alone can never be credited for performing any extraordinary work successfully. It is only possible with the continuous and constant help and guidance that they receive from others. This research report too has taken its shape because of the valuable and precious guidance of our professor. We are gratefully acknowledged. I further personally feel that making of this project provided us with good exposure to the subject of finance and especially the Indian insurance sector and it was a very good learning experience. My sincere thanks are also due to Dr. Rahul Goyal (Executive Director) for their significant help extended for the successful completion of the project. I highly the help I got from them in providing me and lot of information regarding the functioning of this organization. My sincere thanks are also due to Dr. Moh.Arif (H.O.D. of MBA), for their significant help extended for the successful completion of the project. I highly the help I got from them in providing me and lot of information regarding the functioning of this organization.

AMIT CHAUDHARY

PREFACE

PREFACE
M.B.A. is stepping-stone to Management career. In order to achieve practical, positive and concrete results the theoretical knowledge must be supplemented with exposure to real environment. MBA combines both theory and its practical applications as its major content of study in the field of management Theoretical knowledge without practical knowledge is of little value. Theoretical studies in classroom are not sufficient to understand the functioning of marketing concepts. Therefore, it becomes necessary to undergo any project work. Practical project supplements the theoretical studies i.e., it covers what is left uncovered in the classroom. It exposes a student to invaluable treasure of experiences. I took my project work with RELIANCE LIFE INSURANCE . Project work is a part of our curriculum, which helps us to correlate our theoretical concepts with practical experiences. The topic that I have taken for project is MARKET SURVEY. Accomplishment and achievement of goals is the major aim of any organization. These goals are achieved by proper recruitment of employees. Recruitment of quality and dedicated employees plays an important role in achieving these goals.

DECLARATION

DECLARATION
I am AMIT CHAUDHARY a student of Master of Business Administration, Shri Ram College of Management, Muzaffarnagar, would like to declare the project title MARKET SURVEY in partial fulfillment of the requirement for the degree of M.B.A is my own work and it is not submit any where else for the reward of any degree\ diploma\certificate.

AMIT CHAUDHARY M.B.A

CONTENTS
PART A
1. EXECUTIVE SUMMARY 2. COMPANY PROFILE 3. PRODUCT PROFILE

1 2 8

PART B
4. INTRODUTION OF TOPIC 5. OBJECTIVES OF THE STUDY 6. RESEARCH METHODOLOGY 7. DATA ANALYSIS AND INTERPRETATION 8. FINDINGS 9. SUGGESTIONS 10. LIMITATIONS 11. BIBLOGRAPHY 12. APPENDIX

61 68 69 75 87 88 89 90 92

LIST OF TABLE
Table no
1. Investment pattern of respondents 2. Attitude of respondent about life Insurance company 3. Invested company of respondent 4. Awareness about Reliance life insurance office 5. Attitude about safety in reliance life Insurance 6. Reason of negative respondent 7. Awareness about the policies of Reliance life insurance 8. Reason for unawareness 9. Policy Holders of Reliance life insurance 10. Policy taken by respondents 11. Response when policy offered of Reliance life insurance 12. Reason for negativity

Page no 75 76 77 78 79 80 81 82 83 84 85 86

1 2 3 4 5 6 7 8 9 10 11 12

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
Title of Research Name of group with which Research is conducted Research Area Research Design Data Collection Method of Data Collection : : : : : : Market Survey Reliance Life Insurance Muzaffarnagar Descriptive Primary & Secondary Personal interview Collected Questionnaire (Schedule ) Reports and magazine. 100 Vikas Multani (Sales Manager) Muzaffarnagar. : Vivek Kumar MBA Lecturer (SRCM)

Sample Size Project Under Guidance :

College Guide

COMPANY PROFILE

HISTORY OF DHIRUBHAI H AMBANI

Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, 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 patronised by a small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of 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.

HISTORY
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. Anil Ambani's Reliance Life Insurance Company Limited, a subsidiary of Reliance Capital Limited, has concluded a much-awaited deal in the life insurance sector. Even before selling a single life insurance policy, Reliance Life, a part of the Anil Dhirubhai Ambani Enterprises, has snapped the Chennai-based private life insurer AMP Sanmar Life Insurance Company Limited. AMP Sanmar is a 26:74 joint venture between AMP, Australia and Sanmar group. Interestingly, only recently, the Reliance Life had approached the Insurance Regulatory and Development Authority (IRDA) to revive its business license that had been cancelled by the regulator for non-commencement of business. Though the three parties to the deal Reliance Capital, AMP and Sanmar are keeping the deal size secret, figures ranging between Rs225-400 crore are being talked about as being the final price. What is clear is that Reliance Life has clearly outbid other suitors like Aviva, ICICI Prudential Life Insurance Company, etc. This acquisition makes Reliance Life the first private sector life insurer to start business without a foreign partner.

4 The Insurance Regulatory and Development Authority (IRDA) has approved the change in the name of AMP Sanmar Life Insurance Company Limited to Reliance Life Insurance Company Limited. The change was necessitated after the acquisition of the holdings of AMP Australia and the Sanmar group in AMP Sanmar by Reliance Capital for Anil Ambani's proposed life insurance venture, now called Reliance Life Insurance for an undisclosed sum. Subsequently, a fresh certificate of incorporation was issued by the Registrar of Companies, Tamil Nadu, changing the name of the company on January17, 2006. Accepting the change in the name of the company in its registers, the IRDA has permitted Reliance Life to carry on life insurance business subject to the condition that the company should honor the commitments to the policyholders of the AMP Sanmar without altering any of the terms and conditions of the original policy. After the acquisition of the stake of the two promoter companies, Reliance Capital has been busy chalking aggressive growth plans for the life insurance company. It plans to have one million policyholders by this year-end. The company under the new ownership has been selling policies at a faster pace than ever before. For the nine month ended 31st December 2005, AMP Sanmar / Reliance Life has a fresh premium income of Rs114.48 crore, selling 41,488 policies with the average premium per policy of Rs27, 593. As AMP Sanmar, the company had earned fresh premium of Rs61.04 crore from the 23,328 policies it sold during April-December 2004 at an average premium per policy of Rs26, 166.

5 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.

VISION
To

be recognized as a professional and dependable business entity committed to play a

meaningful role in the development of insurance industry in Pakistan and to safeguard the legitimate interests of all stakeholders, namely policy-holders, share-holders, reinsures, employees and all other business associates/partners

MISSION
To provide quality service and protection to its clients aiming at achieving a respectable volume of business and become a prominent player through good governance and sound professionalism focusing to become a well-known and respected Corporate entity in the eyes of Society and Government. It has its Registered office Reliance Life Insurance Company Limited, Regd. Office: The Trapezium, First Floor, #39 Nelson Manickam Road, Chennai - 600 029 Phone No: +91-44-30588200 Fax No: +91-44-30588220 E-mail: service@rcl.co.in

PRODUCTS PROFILE

Product of reliance life insurance

Reliance Special Endowment Plan Reliance Cash Flow Plan Reliance Child Plan Reliance EDLI Scheme Reliance Group Term Assurance Policy Reliance Market Return Plan Reliance Simple Term Plan Reliance Special Credit Guardian Plan Reliance whole life plan Reliance golden year plan Reliance term plan Reliance special Term plan Reliance credit guardian plan

PRODUCT DETAILS
Reliance life insurance launches maiden insurance product: product: Mumbai, august 17: Anil Dhirubhai Ambani group company Reliance Life Insurance today announced the life launch of Reliance connect 2 life plan, its first product since acquiring the life insurance business of AMP Sanmar in October last. Reliance connect 2 life is a 15-year insurance - cum savings Plan for individuals in the age group of 18 to 45 years with a minimum sum assured of Rs.1 lakh. The insurance cover can be upgraded in the second and third year up to a sum of Rs. 10 lakh. Reliance connect aims to provide products that makes life insurance hassle-free and the policy can be upgraded to keep place with individual lifestyle, said Reliance life insurances chief Executive offices P.Nandagopal. Reliance life insurance has 30,000 insurance advisors spread over 158 branches across 143 locations & a call center to service its customer. HDFC and UT bank would act as a collection network. The company is in the final stages of negotiation with banks for selling its products through the banc assurance channel. The company plans to add another 10,000 to 12,000 advisors, who are under training, said Nandagopal. Reliance capital has infused Rs.166crore in Reliance life insurance, which has a capital base of Rs.383 crore and employee strength of 3,654 including 822 employee of AMP Seminar.

RELIANCE ENDOWMENT PLAN

It takes a lot for a dream to become a reality. And money is surely one of them. Reliance endowment plan gives you just the financial independence to realize your dreams in the future. It lets you decide how much you would like to set as your sum assured based on your current financial position and your expected future expenses. KEY FEATURE: FEATURE: 1. On maturity receive sum assured plus bonuses. 2. Wealth creation through bonus addition. 3. More value for your money by way of high sum Assured Rebate. 4. Increase, your insurance protection by adding term cover. 5. Choose to pay regular or single premium.

How does this plan work?

You pay premium every year for the entire term & get sum Assured plus accumulated bonuses. On death, your beneficiary will get the sum Assured plus accumulated bonuses.

11

BENEFITS: BENEFITS:

Maturity Benefit: Benefit: On maturity you get sum Assured plus accumulated bonuses till that date.

Life Cover Benefit: Benefit: In the unfortunate event of loss of life, youre your family will receive the sum Assured plus accumulated bonuses (if any) till that date.

Rider Benefit: Benefit: You also have the option to add three additional benefits to customize the policy as per your needs for the regular premium plan. a. Term life insurance benefit rider. b. Accidental death benefit & total & permanent disablement rider. c. Critical illness Rider.

12

RELIANCE SPECIAL ENDOWMENT PLAN

Reliance special endowment plan is key to all your financial needs; you get a desired lump sum after a specified period, however your life insurance protection continues for an extended period. If anything were to happen to you, your beneficiary will get another sum assured along with the bonuses. The policy comes with an added feature of a limited premium term, which is always 5 years less than the policy term. KEY FEATURES: FEATURES: 1. Twin benefit of protection & savings. 2. Sum Assured is paid on survival, at the end of the premium paying term life cover for full sum assured continues beyond premium paying term. 3. Wealth creation through bonus additions. 4. More value for your money by way of high sum Assured Rebate. 5. Choose to add the benefit of two riders-critical illness riders and Accidental death benefit & total & permanent disablement rider. 6. Choose to avail of a policy loan available after 3 full years of premium payment. 7. Policy participates in profits even after premium paying term.

How do this plan work? You pay premium every year. This premium paying term is always 5 years less than the policy term. On survival to the end of the premium paying term you get the sum Assured. On survival, at maturity (i.e. at the end of the policy term) accumulated compounded bonuses are paid.

13

BENEFITS: Survival Benefit: Benefit: On survival at the end of the premium paying term you get the sum Assured. Maturity Benefit: Benefit: On survival to maturity you get accumulated bonuses Life Cover Benefit: Benefit: Your beneficiary will get sum Assured plus accumulated bonuses in case of your unfortunate death at any time during the policy term. This life cover benefit continues even after premium paying term. Rider Benefit: Benefit: you also have the option to add 2 additional benefits to customize the policy as per your needs. a. Accidental death benefit & total & permanent disablement rider. b. Critical illness Rider.

14

RELIANCE CASH FLOW PLAN

While most insurance plans block your money for a certain period of time, Reliance cash flow plan gives you the double benefit of life insurance along with easy liquidity through lump sum cash. It provides money periodically when you need it. It lets you live life to the fullest today and at the same time, helps you stay protected for tomorrow by giving you the flexibility of receiving a specified percentage of the sum Assured at specified intervals.

KEY FEATURES: FEATURES: 1. Easy liquidity- gets periodic cash flows at the end of the fourth year and thereafter at the end of every three years. 2. Wealth creation through bonus additions. 3. On maturity receive accumulated bonuses along with final lump sum payout. 4. More value for your money by way of high sum assured rebate. 5. Full sum assured plus bonuses in case of your unfortunate death. This is over and above the survival benefits already paid. Option to add two riders- critical illness rider and accidental death benefit and total permanent disablement rider.

15

How do this plan work? You pay premium every year for the entire term to get survivals benefit at periodical intervals as mentioned below. On death, your beneficiary will get the full sum assured, plus accumulated bonuses, over and above the survival benefits already paid to you. BENEFITS: BENEFITS: Survival Benefits: Benefits: Get a percentage of the sum assured on the fourth anniversary and on every third policy anniversary till maturity. Maturity Benefits: Benefits: On maturity you get the remaining percentage of the sum assured plus accumulated bonuses. Rider Benefits: Benefits: You also have the option to add two additional benefits to customize the policy as per your needs. a. b. Accidental Death Benefit and total and permanent disablement rider. Critical illness ride.

16

RELIANCE CHILD PLAN

As a parent, it is only natural to dream of a smooth and blissful life for your child. Which is exactly why you need to secure your child tomorrow, today. Reliance child plan helps you save systematically so that you can give your child muchneeded financial security in the future. Simply put, Reliance child plan gives you the freedom to enjoy every moment with your child today, without worrying about his/her tomorrow. KEY FEATURES: FEATURES 1. Risk protection for you during the term of the Policy. 2. Accumulated bonus at the end of the policy term. 3. 25% of sum assured payable every year last four policy anniversaries. 4. All future premiums are waived in the event of unfortunate loss of life. 5. Guaranteed fixed benefits continue even after loss of life of the policyholder. 6. More value for your money by way of high sum Assured Rebate. 7. Choose to add the benefit of two riders-critical illness Rider and Accidental death benefit & accidental death benefit & total and permanent Disablement Rider. 8. Policy participates in profit even after the loss of Life of the life assured. sum benefit during the

17

How do this plan work? work You pay premium every year for the entire term & get guaranteed fixed deposit every year during the Last four Years of the policy term. On death, your beneficiary will get the sum assured, Guaranteed fixed benefits on specified dates and all Future payment of life cover benefit. BENEFITS: Life Cover Benefits: Benefits In the unfortunate event of Loss Of life, your beneficiary will premiums will be waived. All attached bonuses are payable at the end of the Policy term and will remain attached to your policy Even after

receive the sum assured immediately and all future premiums will be waived. Guaranteed Fixed Benefits: Benefits Get 25% of sum assured every year on the last four policy anniversaries irrespective of the survival of the life assured. For example if you have taken a policy of Rs.1lakh for 20 years, then fixed benefits payable will be Rs.25, 000 each at the end of 17th, 18th, 19th and 20th year. Maturity Benefits: Benefits On maturity you get accumulated bonuses irrespective of the survival of the life assured. Rider Benefits: Benefits You also have the option to add two additional benefits to customize the policy as per your needs. 1. Accidental death benefit and total and permanent disablement rider. 2. Critical illness rider.

18

RELIANCE EDLI SCHEME

What is employees deposit linked insurance scheme (EDLI), 1976? Is reliance EDLI scheme approved for offer as an alternative to EDLI? What are the benefits of reliance EDLI scheme as against EDLI?

What is employees deposit linked insurance scheme (EDLI), 1976? All establishments with at least 10 full-time permanent employees and to whom the employees provident fund and miscellaneous provisions Act, 1952 applies, have a statutory liability to subscribe to employees deposit linked insurance scheme (EDLI) to provide for life insurance for all their employees. Is reliance EDLI scheme approved for offer as an alternative to EDLI? Yes, the central provident fund commissioner has approved reliance life insurance employee benefit life assurance policies to be offered as an alternative to the employees deposit linked insurance scheme, 1976 (EDLI).

19

What are the benefits of reliance EDLI scheme as against EDLI? Several benefits of replacing EDLI by reliance EDLI scheme policy are: Possible reduction in contributions payable by the employer. The premium payable by the employer under the reliance EDLI scheme could be lower than the total contribution paid by the employer under the EDLI scheme depending on the average age and risk profile of the industry.

Simple structure of the life insurance cover. Life cover provided by EDLI is proportional to the balances in the PF account of the employee subject to certain maximum limits. Life cover provided by reliance EDLI scheme is a simple flat cover equal to Rs.62, 000, the maximum amount specified by the employees deposit linked insurance scheme, 1976 (EDLI). Stress- free administration. Experienced and professional administration resulting in hassle free services for member employee data management and claims payments apart from others.

21

RELIANCE GROUP TERM ASSURANCE POLICY

What is reliance group term assurance policy? Who is reliance group term assurance policy designed for? What are the benefits provided? What options are available? What is the benefit from experiences in the policy? Why take this policy? What do your employees get? What is reliance group term assurance policy? Reliance group term assurance policy is a one-year renewable term assurance contract. The benefit is payable on the happening of the contingency during one year. At the end of the year, the contract may be renewed. Who is reliance group term assurance policy designed for? Employers looking for a comprehensive professionally administered term assurance cover for their employees. Subject to approval by the provident fund commissioner, this policy can be used as a replacement for the employees deposit linked insurance scheme under the provident fund act. What are the benefits provided? A payment is made on the death of an employee. Cover can be: Fixed multiple salary % Of salary for each year of future service to normal retirement date Fixed rupee amount Fixed age-related scale Formula based on designation/rank of employees in the group.
22

If an employee becomes disabled, as defined by us then the benefit above is accelerated and paid out in 5 equal annual installment. No further benefit is payable subsequently. No benefits are payable on survival to the end of the year. What options are available? You can choose: Whether or not to provide the benefit on disablement. Whether or not you wish to benefit from experience in your policy. Whether or not to give your employees the choice of continuing their cover with us under an individual policy.

What is the benefit from experience in the policy? At the end of every 3-policy period, under the basis specified below, we will investigate the claims experience under this policy. That investigation may lead us to decide that an experience refund is due. If we declare that an experience refund is due, we will adjust it against the premium due for the next policy period. Experience refund = x% of (y% premiums-claims including an allowance for incurred but not reported claims)-losses carried forward from the previous period, if any. Refer table below.

24

No. of Lives 500 1000 2500 5000 7500 10000 15000 20000 50000 100000

No. of Life years 1500 3000 7500 15000 22500 30000 45000 60000 150000 300000

X 50% 50% 60% 75% 75% 75% 75% 75% 85% 85%

Y 60% 60% 61% 63% 65% 67% 70% 70% 70% 70%

Why take this policy? Improved HR because the benefit has value to the employee.

Replacement of lump sum payments with regular premiums accelerates tax relief.

Act.

Statutory compliance if used to replace insurance cover under the provident fund

What do your employees get? Coverage at rates lower than applicable to individuals live. Simplified procedures for insurability- limited or no medical tests.

25

RELIANCE MARKET RETURN PLAN

You have always aspired for the best in life. And we help you achieve just that. With Reliance market return plan you can have the twin advantage of insurance protection as well as reaping the benefits of investment growth. It is a flexible plan which works all through your life & meets the changing requirements like additional protection, liquidity through cash, option to invest in different asset class, steady golden years & many more KEY FEATURES: FEATURES

Twin benefit of market linked return and insurance protection.

A unit linked plan, different from traditional life insurance product, with maximum maturity age of 80 years.

Option to create your own portfolio depending on your risk appetite. Choose form 4 different investment funds. Flexibility to switch between funds. Option to pay regular as well as single premium & top-ups. Option to package with accidental riders. Flexibility to increase the sum assured. Liquidity through partial withdrawals.

26

How does this plan work? The premium made net of premium allocation charges by you is invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds. The value of your unit account is the total value of units that you hold in the fund/funds. The value of your unit account is the total value of units that you hold in the fund/funds. The mortality charges and policy administration charges are deducted through cancellation of unit whereas the fund management charge is priced in the unit value.

BENEFITS: BENEFITS

Life Cover Benefit: Benefit You can choose the basic sum assured within the minimum and maximum levels mentioned below.

Minimum Sum Assured: Assured

Regular Premium: Annualized premium for 5 year or for half the policy term. Single Premium: 125% of the single premium.

Maximum Sum Assured: Assured No limit (Rs.500, 000 for age up to 12 year). In case of unfortunate loss of life, your beneficiary will get sum assured or unit account value whichever is higher.

27

Maturity Benefit: Benefit On survival, at maturity the value of your unit account will be paid out.

Rider Benefit: Benefit you can add the accidental death & accidental total & permanent disablement benefit rider (available only with regular premium option).

28

RELIANCE SIMPLE TERM PLAN: PLAN

To protect your family from tomorrows uncertainties, you need to plan from today. And Reliance simple term plan helps you do just that. It is a cost-effective, pure life insurance plan that offers you comprehensive & affordable coverage for a limited period of time to suit your needs.

How do this plan work?

You pay premium of Rs.100 every year for three years. On death, during the three-year period, your beneficiary will get Rs. 10,000. On survival, at maturity nothing is payable. Policy term

Who can buy this product? Minimum age at entry: Maximum age at entry: 18 years 44 years

Maximum age at maturity: 47 years Sum assured Sum Assured Rs 10,000

30

Policy Term:

3 years

RELIANCE

SPECIAL CREDIT GUARDIAN PLAN: PLAN

In todays world of easily available loans, we often tend to neglect the implications of non-payment in case of our untimely demise. Reliance special credit guardian plan helps you and your family avoids such situations by securing your housing loans, personal loans and even credit cards payment. What make

the plan special are the facts that on survival at maturity, all premiums paid for your basic policy will be returned to you. KEY FEATURES: FEATURES

Different types of loans are covered under this plan- housing loan, personal loan, outstanding on credit cards etc.

Limited premium paying term single & regular premium payments options. Discount on payment rates for women decreasing term insurance. Option to add two riders- critical illness & accidental death benefit and total& permanent disablement rider.

31

How do this plan work? You pay premium every year for the entire term. The sum assured decreases as per the policy schedule in line with the outstanding loan schedule. On death, your nominee will get the sum assured. On survival at maturity, you will receive all basic premiums paid.

BENEFITS: BENEFITS

Maturity Benefit: Benefit On survival to maturity all premiums paid for the basic policy are returned. This doesnt include any extra premium or premium for additional benefits.

Life Cover Benefit: Benefit In the unfortunate event of loss of life, the nominee will receive the sum assured as per the policy schedule.

Rider Benefit: Benefit You can choose to customize your regular policy by adding two benefits: Accidental death benefit & total & permanent disablement rider. Critical illness rider.

Accidental death benefit & total & permanent disablement rider: Accidents are unfortunate and sometimes fatal. You can customize your basic policy with an accidental death benefit & total & permanent disablement rider.

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Accidental Death Benefit and Total and Permanent Disablement Benefit Age at entry Age at expiry Sum Assured 18 years 25 years Rs 25,000 59 years 64 years Rs 50,00,000 (Basic Policy Sum Assured subject to a maximum of rs 50,00,000 per life)

Critical illness rider:

Sudden onset of a major illness causes worries and heavy expenses. Our optional critical consistency cover helps provide financial relief in such cases. It pays you the sum assured upfront in respect of ten major illnesses. a. Cancer b. Coronary artery bypass surgery c. Heart attack d. Stroke e. Kidney failure f. Aorta surgery g. Coma h. Heart value replacement

i.

Major organ transplant

34

Critical Illness Rider Age at entry Age at expiry Sum Assured Minimum Policy Term 18 years 25 years Rs 1,00,000 55 years 64 years Rs. 10,00,000 (Basic Policy Sum Assured subject to a maximum of Rs. 10,00,00 per life) 5

What is the policy term?

Minimum Policy Term: Maximum Policy Term:

Regular Premium - 10yrs Single Premium - 5 years Regular Premium - 30 years Single Premium - 15 years

Who can buy this product? Minimum age at entry: Maximum age at entry: Minimum age at maturity: 21 years 60 years Regular Premium - 31 years Single Premium - 26 years

Maximum age at maturity: 65 years

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What is the sum assured? Minimum Sum Assured Maximum Sum Assured Minimum premium: Rs 2,50,000 No limit Regular Premium - Rs. 1000 Single Premium - Rs. 3000

36

RELIANCE WHOLE LIFE PLAN

You always loved your family. As a loving person you also Wanted to be rest assured in the knowledge that they will be happy, even if something were to happen to you. With reliance whole life plan you can be sure that your family will receive that timely financial support they need. Go ahead, live your today to the fullest without a worry about tomorrow. KEY FEATURES: FEATURES Insurance protection till age 85. Choose to extend your insurance coverage till age 99. Convenient premium payment term wealth creation through bonus additions. More value for your money by way of high sum assure rebate. Get sum assured plus bonuses in case of your unfortunate death.

How do this plan work? You pay premium every year for desired premium paying term. You get sum assured plus bonuses on reaching age 85. You choose to continue with the insurance cover until the age of 99 and the policy will continue to participate in profits till then. On death, your beneficiary will get the sum assured plus accumulated bonuses.

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BENEFITS: BENEFITS Maturity Benefit: Benefit On attaining age 85 you get sum assured plus accumulated bonuses. Life Cover Benefit: Benefit In the unfortunate event of loss of life, your beneficiary will receive the sum assured plus accumulated bonuses till that date. Rider Benefit: Benefit You also have the option to add 2 additional benefits to customize the policy as per your needs. a. Accidental death benefit and total and permanent disablement rider. b. Critical illness rider. Accidental death benefit and total and permanent disablement rider: Accident is unfortunate and sometimes fatal. You can customize your basic policy with an accidental death benefit & total and permanent disablement benefit rider. The accidental death benefit is payable if death occurs directly as a result of an accident and is intimated with 90 days of the occurrence. Accidental Death & Disability Benefit Age at entry Age at expiry Sum Assured 18 yrs 25 yrs Rs 25,000 59 yrs 64 yrs Rs 50,00,000 (subject to a maximum of basic policy sum assured)

40

Critical illness rider: rider sudden on set of major illnesses causes worries and heavy expenses. Our optional critical conditions cover help provide financial relief in such cases. It pays you sum assured upfront in respect of 8 major illness. a. Cancer b. Coronary artery bypass surgery c. Heart attack d. Stroke e. Kidney failure

f. g.
h.

Aorta surgery Coma Heart valve replacement

Critical Illness Age at entry Age at expiry Sum Assured Minimum policy term 18 yrs 25 yrs Rs 1,00,000 5 55 yrs 64 yrs Rs 10,00,000 (subject to a maximum of basic policy sum assured)

42

RELIANCE TERM PLAN

Life, as we know, is full of uncertainties. And to keep a head of them, you need to plan ahead.Reliance Term Plan is a pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit your needs.

KEY FEATURES: FEATURES

Get higher insurance protection at economical rates. Optional accidental & disability rider to enhance protection. Discount on premium rates for women. Suitable for business owners who want to cover the life of their key employees.

BENEFITS: BENEFITS Life Cover Benefit: Benefit In the unfortunate event of loss of life, your beneficiary will receive sum assured.

Maturity Benefit: Benefit there is no maturity benefit payable under this policy. Rider Benefit: Benefit You also have the option to add accidental death benefit and total and permanent disablement rider.

44

RELIANCE SPECIAL TERM PLAN

To stay a head of the uncertainties of life, we need to plan well in advance. Reliance special term plan is a pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit for needs. Whats more, on survival at maturity all premiums paid for your basic policy will be returned to you.

KEY FEATURES: FEATURES

Get higher insurance protection at economical rates. Basic premiums paid will be refunded at maturity. Choose to regular or single premium.

How do this plan work? You pay premium every year for the entire term. On death your nominee will get sum assured. On survival to maturity you will get the entire basic premiums, paid returned.

47

BENEFITS

Maturity Benefit: Benefit On survival to maturity all premiums paid for the basic policy are returned. This excludes any extra premium or premium for additional benefit.

Life Cover Benefit: In the unfortunate event of loss of life, your nominee will receive the sum assured.

Rider Benefit: You also have the option to add 2 additional benefits to customize the policy as per your needs for the regular premium policy. a. Accidental death benefit & total and permanent disablement rider. b. Critical illness rider

Accidental death benefit & total and permanent disablement rider: Accidents are unfortunate and sometimes fatal. You can customize your basic policy with an accidental death benefit & total and permanent disablement rider.

The accidental death benefit is payable if death occurs directly as a result of an accident and is intimated with 90 days of its occurrence.

48

Critical illness rider: rider Major illness causes worries and heavy expenses. Our optional critical consistency cover helps provide financial relief in such cases. It pays you the sum assured upfront in respect of ten major illnesses. a. Cancer b. Coronary artery bypass surgery c. Heart attack d. Stroke e. Kidney failure f. Aorta surgery g. Coma h. Heart valve replacement i. Major organ transplant j. Paralysis

49

COMPETITORS OF RELIANCE IN THIS FIELD ARE

ICICI Prudential Life Bajaj Allianz Max New York Life Met Life ING Vyasa Om Kotak Mahindra Tata AIG Aviva HDFC Standard Life SBI Life Birla sun-life insurance company limited AMP Sanmar Assurance Company Limited Dabur CGU Life Insurance Co. Pvt. Limi

50

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the insurance sector were initiated with the passage of the IRDA Bill in parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting to agents has ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

51

The important functions of IRDA are as follows: To exercise all powers & functions of controller of insurance. Protection of the interest of the policyholders. To issue, renew, modify, withdraw or suspend certificate of registration. To specify requisite qualification & training for insurance intermediaries & agents. To promote & regulate professional organization connected with insurance. To conduct inspection/investigations etc. To prescribe method of insurance accounting. To regulate investment of funds & margins of solvency. To adjudication upon disputes. To conduct inspection & audit of insurers, intermediaries & other organizations concerned with insurance.

52

LIFE INSURANCE
Since the earliest time, human kinds most earnest desire has been to leave something for posterity. Be it learning or material possession, our memory lives in what we leave behind. It is in this very need that there lies the origin of life insurance. After independence near about 209 Life Insurance companies were doing business worth Rs. 712.76 crore. The first Indian-owned life insurance company, the Life Assurance Society, was set up in 1870 by six friends. It insured Indian lives at the normal rates instead of charging a premium of 15 to 20 percent as foreign insurers did. But today the concept has really changed. Today Life Insurance protects the economic vale of a human life for the benefit of those who are financially dependent on it. It has now started ensuring peace of mind and quality of life to million of families. LIFE INSURANCE IN INDIA Life Insurance in its existing form came to India from the United Kingdom with the establishment of a British firm Oriental Life Insurance Company in Calcutta in 1818 followed by Bombay Life Assurance Company in 1823. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life insurance business. Later in 1928 the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life insurance business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938 with a view to protecting the interest of insuring public earlier legislation was consolidated and amended by the Insurance Act 1938 with comprehensive provisions detailed and effective control over the activities of insurers. The Act was amended in

53

1950 resulting in far reaching changes in the insurance sector. These included a statutory requirement of equity capital for companies carrying on life insurance business, ceiling on share holdings in such companies, stricter control on investments, submission of periodical returns relating to investments and such other information to the controller. The controller could also call for appointment of administrators and put a ceiling on expenses of management and agency commission for mismanaged companies. By 1956, 154 Indian insurers, 16 foreign insurers and 75 provident societies were carrying on life insurance business in India. Life insurance business was concentrated in urban areas and confined to the higher strata of the society. On January 19, 1956, the management of life insurance business of 245 Indian and foreign insurers and provident societies then operating in India was taken over by the Central Government. Life Insurance Corporation was formed in September 1956 by an Act of Parliament, viz. LIC Act 1956 with a capital contribution of Rs.50 mn. HISTORY OF INSURANCE IN INDIA Insurance in India has been under public sector for over four decades. Life Insurance was nationalized way back in 1956 by merging 245 private insurance companies thus forming Life Insurance Corporation (LIC) of India. Similarly after nationalisation of general insurance in 1972, General Insurance Corporation (GIC) was formed by merging 106 private insurance companies. General Insurance Corporation currently has four subsidiary companies operating in India. When the insurance industry was nationalised, it was considered a landmark and a milestone on the way to the socialistic pattern of society that India had chosen after independence. But now four decades after the Insurance sector was nationalised, the nationalised sector companies could not cater to the Indian market to cover its entire potential. so the main objectives of privatization are

54

1. To provide for proper back ups if there is any unforeseen economic shocks. 2. To make sure there is a win-win situation for both the common man and the industry players. The other reasons for opening up the insurance sector to the private insurers are as under: 1. To provide better Insurance coverage to Indian citizens. 2. To augment the flow of long-term financial resources to finance the growth of Infrastructure. 3. The Public Sector Insurance Companies had not succeeded in extending the insurance cover to all the needy people of the country due to various reasons. Hence this onerous responsibility now has been entrusted to the private insurers. 4. Penetration of Insurance: LIC and GIC could not ensure very fast growth of insurance in India even in a long period extending over four decades. Hence the penetration of insurance is very low in India. The following indices as explained will indicate and support this contention: While per capita insurance premium in developed countries is very high, it is quite low in India. For instance, per capita insurance premium in India in 1999 was only $8 while it was $4800 for Japan, $1000 for Republic of Korea, $887 for Singapore, $823 for Hong Kong and $144 for Malaysia. Similarly the penetration of insurance is also assessed by the ratio of the insurance premium to the Gross Domestic Product (GDP) in a country. While insurance premium as a percentage of GDP was 14% for Japan, 13% for South Africa, 12% for Korea, 9% for UK and France, it was only around 2% in India in 1999. Hence the penetration of insurance is low here. The penetration of insurance is also assessed by a ratio of the insurance premium to the Gross Domestic Savings (GDS). While the insurance premium as a percentage of GDS was 52% for UK, 35% for other European and American countries, it was only 9% in India in 1999.

57

Hence even this index indicates low level of penetration of insurance in India. The share of India in the world market in terms of gross insurance premium is again very small. For instance, while Japan has 31%, European Union 25%, South Africa 2.3%, Canada 1.7% share of the global insurance premium it is only 0.3% for India. Hence the opening up of the insurance sector to private insurers has put a great responsibility on them to ensure fast growth of insurance so that India can come upto the level of developed countries of the world in offering the insurance insurance cover to its citizens.

58

OBJECTIVES OF THE REFORMS OF THE INSURANCE SECTOR

We have discussed what the needs are at present to go for the insurance sector reforms. But before going in for the reforms we must make our objectives very clear as to what we want to achieve through these reforms. The vision should be quite clear and the plans should be chalked out having a long-term perspective in mind. To be very fair, Indian plans do lack in this feature and we do suffer from planning myopia. It is very essential to chalk out the objectives of any reforms. This has two basic reasons : To provide for proper back ups if there is any unforeseen economic shocks. To make sure there is a win-win situation for both the common man and the industry players. THE OBJECTIVES OF THE REFORMS ARE AS FOLLOWS: 1. To provide better coverage to the Indian citizens 2. To augment the flow of long term financial resources to finance the growth of the infrastructure. 3. To substantiate for the major faults that the government owned insurance firms has committed. 4. To speed up the faster rate of penetration by the insurance firms in India which is not very much compared to other countries. 5. To make the private players responsible to the investors and not to the government. 6. To increase the competition in this sector so that the common people has the advantage of enjoying quality services at a reasonable cost 7. Insurance has a far reaching effect in synchronizing between the various service sectors. So if this sector can grow , the prospects of the various other service sector remains to be promising.

59

8. Next, the long term indication that we have in India that the service sector is poised for a growth. So the reforms must be designed in order to cash on this scenario.

60

PART - B

INTRODUTION OF TOPIC

INTRODUCTION OF TOPIC
I have chosen this topic because of the following reasons: 1. I want to know to know about the awareness of the company and its policies in

the market of muzaffanagar .

2. I want to find out the response of people for the life insurance.

In this research work, I have used Descriptive Research method for conducting the research. I collected primary data through Questionnaire schedule and I collected secondary data from Internet, Newspapers, Magazine, Journals, Journals,

61

STUDY OF INDUSTRY
The business of life insurance in India in its existing form started in India 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 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 insurance landscape in India is undergoing major change. Closed to foreign competition since nationalization in 1956, the life insurance industry had been protected from competitive pressures. Now, with the re-opening of the sector, several new players have entered the scene. The game is old but the rules are new and still developing. Ensconced in a monopoly run from the nationalization days beginning in 1956, the insurance industry has indeed

awakened: to a deregulated environment in which several private players have partnered with multinational insurance giants.
62

However, despite its teeming one billion population, India still has a low insurance penetration of 1.95 per cent, 51st in the world. Despite the fact that India boasts a saving rate of around 25 per cent, less than 5 percent is spent on insurance. The first company to foray in this sector was LIC, which was set up on 1 st sep. 1956. Since then it is enjoying monopoly until the recent entry of the private players in this sector. The private companies in their five years of operation had continuously suffered by the established leadership and monopoly of LIC. Although for the last 50 years LIC has been the only company to cater the consumer needs in the insurance sector but in the past 5 years 12 insurance companies have emerged in the scenario which are: ICICI Prudential Life Birla Sun Life Bajaj Allianz Max New York Life Met Life ING Vyasa Om Kotak Mahindra Tata AIG Aviva HDFC Standard Life SBI Life Reliance life insurance

63

New players need to recognize the limitations of their rival and decide upon the right mix of distribution channels in their business. Insurance sector has always been volatile right from the very beginning. As private players are entering into the Indian market, the competition has become very stiff. Today a lot of companies are there is the market with their products. The common consumer is under dilemma to decide to go for which company. The Reliance Life Insurance is also one among these private players. The project with Reliance Life Insurance deal with the market survey of Life Insurance Policy. In todays world, one can hardly find a person without a life insurance policy. The project helps to find out that which company policy is most prevalent in the market and what was the reason of purchase. It also helps to find out which is the most prevalent insurance plan in the market. The project is also concerned about finding the awareness level of ING Vysya Life Insurance is the market. At last the project suggests some recommendation to the organization which is the outcome of finding and analysis.

64

THE CHANGING SCENARIO

Prior to liberalization the regulatory environment was primarily based on consolidated provisions of the Insurance Act 1938. The Controller of Insurance has wide ranging powers, which included directing, cautioning, advising, prohibiting, inspecting, investigating, searching, seizing, prosecuting, penalizing, authorizing, registering, malgamating and liquidating insurance companies. It was in 1956 that Life Insurance was nationalized followed by General Insurance in 1972. In the aftermath of nationalization much of the powers of the Controller of Insurance were abridged for operational convenience of state owned LIC and GIC. Meanwhile great developments were taking place around the world due to strong possibilities offered by insurance sector to the geopolitical and politico-economical systems in the new global order. In 1993, a new committee was constituted. Review of insurance regulations started only with the Malhotra Committee of reforms constituted in April 1993. Unlike Financial Sector Reforms Committee who had the only choice of determining the phase of reforms to align with the internationally accepted Basle provisions under the aegis of Bank of International Settlement (BIS), Malhotra Committee had a real brainstorming at hand. Insurance order of the world has no unique pattern. The committee recommendations were the prudence of that day and a few of the suggestions were economically enticing for the regimented political outfit of the country.

65

FOREIGN PARTICIPATION

Now that the gates have opened and foreign insurance companies are allowed to participate in the Indian insurance market there are experiments and experiences of all hues. India has adopted one of them based on its politico-economics dynamics. Indian market expects a continuation of trend in companies to expand their horizons beyond domestic borders. This is true both in terms of expansion plans by domestic companies and in the acquisition of insurance companies by foreign concerns. Insurance investors from developed economies, particularly in Western Europe and the US find some foreign markets as having greater growth potential than their domestic markets. Therefore, a high level of interest exists for these companies to acquire insurance concerns. IRDA has to recognize this global trend and act prudentially for India. India is already moving up from the foothill of globalization in insurance industry. Of course the initial expectation that IRDA will be inundated with insurance license applications from the Joint Ventures (JV) formed by domestic and foreign companies has not happened. A part of the phenomenon is explained by bad understanding of the tenets of Joint Venture formation but major business sense may be lying in becoming a more equipped second fast-mover. Whichever way the business moves from now on life in insurance industry can never be the same again in India. Subjective prudence of the lawmaker and the regulator of the day mark the stipulated stake of only 26 percent of the equities by the foreign partners in any insurance JV. The prudential perception may change with time and persons. But for the present we have to live with the provisions. As the experience is well dispersed in the contiguous geographical area, we cannot distinguish one set of prudence from the other for the time being. Even the recently amended IRA Bill provides enough room for foreign participation. Already a handful of entrants have taken place and more are expected in the near future. A bunch of mergers are also in the queue.
66

In the Indian market one of the important issues that need to be immediately addressed to enhance the speed of foreign participation is the role of intermediaries. In Western markets there are many intermediaries like agents, brokers, consultants, surveyors, third party administrators, etc. They form a crucial link between the insurance carrier and the final customer. In India, insurance agency is the only recognized intermediary by the Insurance Act, 1938. The agency system may work well in personal lines of business like Life Insurance, Mediclaim, Personal accident, etc. There is a need for more specialized entities to service commercial lines. Many banks are showing interest to take up corporate agency. But regulations pertaining to corporate agency need to be made more liberal. There are representations asking IRDA to review/modify certain sections, e.g., the mandatory 100 hour training which all the directors of the corporate willing to take up agency, have to undergo. Another issue is 26 percent cap on foreign equity participation. Typically. The foreign companies want at least 51 percent participation so that the balance sheets can be consolidated. Practically, the management control seems to be anyway with the foreign partners.

67

OBJECTIVES OF STUDY

OBJECTIVE OF STUDY

Primary objective_

To know about awareness of the company and its policies in the market of muzaffanagar

Secondary Objective:-

To find out the response of people for the life insurance.

To know the knowledge of people about the policies of company .

To know about the level of the faith of people on company.

To know about the investment pattern of people of Muzaffarnagar

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

RESEARCH DESIGN

DESCIPTIVE

RESEARCH APPROACH

SURVEY

CONTACT METHOD

PERSONAL INTERVIEW

SAMPLE SIZE

100

SAMPLE UNIT

BUSINESS MAN, SERVICE MAN, HOUSE WIFES,STUDENTS

SAMPLING CRITERIA

RANDOM SAMPLING

RESEARCH INSTRUMENTS TYPE OF DATA COLLECTED

QUESTIONNAIRE (SCHEDULE) PRIMARY DATA SECONDARY DATA

AREA OF RESEARCH

MUZAFFARNAGAR
69

DEFINING RESEARCH PROBLEM How to define a research problem was a Herculean task that required effective guidance to avoid the perplexity encountered in a research project operation. Our team followed the usual approach by poring questions to ourselves. Why the performance of the LIC is much higher than the reliance life insurance limited? This problem was later recognized as comprising of no of amenities such as: what sort of performance is being referred to? What period of time and what performance is being talked about? What is the environment, which is being considered? Rethinking, discussions and rephrasing by our team placed the problem on a still better operational basis after no. Of steps To what extent did sales performance in (pine period) of completes differ with that of Ipry in respect of Delhi? What factors were responsible for performance differentiates between the companies? In such a fashion, the ambiguities were resolved thinking and rethinking resulted in a more specific problem so that it might be realistic one in team of available data and resources and in also analytically meaningful. The outcome was not only meaningful from an operation point of view but was equally capable of solving the problem itself.

70

The information for the project of finance on life insurance industry has been collected from both primary as well as secondary sources. In case of primary sources the information was retrieved directly from the concerned people and the authorities. We have conducted our research mainly with the help of the invaluable inputs provided by the consumers of products of the private players in the form of a questionnaire drafted by us. The questionnaire method was used as it is more versatile than any other any other method and further a questionnaire is pre planned and thus less time is wasted since a planned set of questions are available. We have taken a sample size of 200 people. Our analysis is completely based on the responses given to us by the respondents and the result for the same has been presented in the form of pie charts and graphs. While there was some information, which could not be obtained through questionnaires, for that purpose we resort to personal interviews. A total of six in depth interviews were also taken of the agents and managers of these private players. Since secondary data are information published by others and the companies they were easily available and not much effort was required in obtaining the information.

71

SOURCES OF DATA
PRIMARY SOURCES Questionnaire.

SECONDARY SOURCES Newspapers. Magazines. Internet sites.

DATA COLLECTION PRIMARY DATA The primary data are those data, which are collected afresh and for the first time and happen to be original in character. The primary data to be collected for the study areBy Structured Questionnaire. SECONDARY DATA Secondary data are those data which have already been collected by someone else and which already had been passed though the statically process. The secondary data to be collected for the study arePublication Of The Company Periodical Of The Company By Internet Websites

72

RESEARCH INSTRUMENT Structured Questionnaire: A Questionnaire consists of a number of questions printed or typed and a definite order on forms. It is the set of questions presented to the retailers for answers. When the questions have only two alternatives or of multiple choices, then it is known as closedend questionnaire, which is hence used the given study. RESEARCH INSTRUMENTS USED For our research purpose instruments used were extensive literature survey and Internet surfing. The idea was to gain enough insight into the insurance phenomenon and analyzing the characteristics of the population under study. We adopted sample survey because it was not possible to examine every item in the population. It was possible to capture sufficiently acquit result by studying only a portion of the total population which is the true representative of the population under study.

Insurance Market Survey The phase one of study corresponded to the collection of data from insurance agents of our competitors who are in better personal contact with their customer so as to analyze the demand of the customers, their working environment and satisfaction level with their respected companies. The objective of this survey was to tap those people who can prove to be potential

73

insurance advisors for the company. So, the questionnaire aimed at finding the basic mind set of the people like whether they will be interested in earning extra income and if yes then what method out of various options provided to them like MLM or Investments in property etc. they will prefer. It also aimed at finding out that if given a chance whether they would prefer to join reliance life insurance as an insurance advisor. Sampling techniques used and the sample size Simple random sampling technique was used to collect data from the population. This technique gave each item an equal probability of being selected. Sample size ---100

74

DATA ANALSIS & INTERPRETATION

TABLE-1

Investment pattern of respondents

(a) (b) (c) (d) Bank Post office Life insurance company Capital market 27% 18% 23% 32%

35 30 25 20 15 10 5 0 Bank Post office LIC Capital market Series1

Graph-1

ANALYSIS: The above data shows that 27% people invest there money in bank, 18% in post office, 23% in life insurance company & 32% in capital market.

75

TABLE-2

Attitude of respondent about life insurance company

(a) (b) (c) Yes No Can not say 73% 11% 16%

80 70 60 50 40 30 20 10 0 Yes No Can not say Series1

Graph-2

ANALYSIS: The above data shows that 73% people said that it is good to invest in life insurance, 11% do not think so & 16% had no comment.

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TABLE-3

Invested company of respondent

(a) LIC (b) Reliance life insurance (c) ICICI (d) Others
80% 70% 60% 50% 40% 30% 20% 10% 0% lic reliance life insaurance icici others 6% 10% 13% 71%

71% 6% 10% 13%

Graph-3

ANALYSIS: The above data shows that 71% people invested his money in LIC, 6% in RLI, 10% in ICICI, & 13% in others.

77

TABLE-4

Awareness about Reliance life insurance office

(a) Yes (b) No 18% 82%

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes 18%

82%

no

Graph-4

ANALYSIS: The above data shows that 18% people know the Reliance life insurance office in muzaffarnagar & 82% people don`t know.

78

TABLE-5

Attitude about safety in reliance life insurance

(a) Yes (b) No (c) Can not say 23% 26% 51%

60

50

40

30

20

10

0 Yes No Can`t say

Graph-5 ANALYSIS: The above data shows that 23% people think it is safe to invest money in Reliance Life insurance, 26% people think it is not safe & 51% people had no comment. 79

TABLE-6

Reason of negative respondent

(a) Private company (Do not have faith) (b) New company

64% 36%

Graph-6
70 60 50 40 30 20 10 0 Private company New company

ANALYSIS: The above data shows that 64% people said that they don`t have faith on company because this is a private company & 36% people said that this is a new company so they don`t think to invest money in Reliance life insurance

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TABLE-7

Awareness about the policies of Reliance life insurance

(a) (b) Yes No
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no 15% Series1

15% 85%
85%

Graph-7 Sample size-100 ANALYSIS: The above data shows that only 15% people know about the policies of Reliance life insurance & 85% people don`t know.

81

TABLE-8

Reason for unawareness

(a) Not communicated (b) Not interested

29.4% 70.6%

80 70 60 50 40 30 20 10 0 Not communicated Not interested

Graph-8

ANALYSIS: The above data shows that only 29.4% people said that policies are not communicated to them & 70% people said that they are not interested to know about the Reliance life insurance policies.

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TABLE-9

Policy Holders of Reliance life insurance

(a) Yes (b) No
100 90 80 70 60 50 40 30 20 10 0 Yes No

6% 94% Graph-9

ANALYSIS: The above data shows that only 6% people have policy of Reliance life insurance & 94% people do not have.

83 TABLE-10

Policy taken by respondents

(a) (b) (c) (d)

Child plan Health plan Retirement plan Unit link plan

60% 50% 40% 30% 20% 10% 0% Child plan

50% 16.33% 16.33% 16.33%

Health plan

Retirement p lan

Unit link plan

Graph-10 ANALYSIS: The above data shows that only 50% people have invested their money in child plan, 16.33% people has invested in health plan, 16.33% people in retirement plan,& 16.33% people in unit link plan.

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TABLE-11

Response when policy offered of Reliance life insurance

(a) (b)

Yes No
90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

19.2% 80.8%

Yes

No

Graph-11

ANALYSIS: The above data shows that only 19.2% people would like to take policy of Reliance life insurance & 80.8% said no.

85 TABLE-12

Reason for negativity

(a) High premium (b) Not now (c) Not attractive (d) Only LIC

6.5% 13.15% 14.47% 65.78%

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

pr em

65.78%

Series1

6.50%
iu m

13.15%
no w

14.47%
LI C

ac t iv e at tr

Hi g

No t

Graph-12 ANALYSIS: The above data shows that only 6.5% people said that policies has high premium, 13.15% people said that thay don`t want to take just now, 14.47% people said that policies are not attractive & 65.78 % people said that they want only LIC policies.

86

O nl y

No t

FINDINGS

FINDINGS OF STUDY
In the survey of Muzaffnagar I found that Muzaffnagar has a potential for life insurance. People of the Muzaffanagar wants to invest there money in life insurance. Most of the people are investing their money in LIC. People has dought about the safety & do not believe very much in private companies. Very few persons know about the policies of Reliance life insurance. And very few persons has policies of Reliance life insurance. And a very big percentage of people are not interested in policies of Reliance life insurance. So company has a big market to work.

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SUGGESTIONS

SUGGESTIONS

The company should provide more awareness in market through Advertisement, Adviser & S.M. of company.

Company should make more communication and make more interest of people in policy so they can improve knowledge about the policies of Reliance life insurance

Company should try to do something to win the faith of people. Company should try to do something about the premium & about the attractiveness of policies should try to change the mind of people through teams of Adviser & S.M .

Over all suggestion to the company is that they have competition with LIC in the market . So they should try to give more awareness about the policies and about the company so they can win the faith of people.

88

LIMITATIONS

LIMITATIONS
In every project/study undertaken limitations arises and are inevitable. Similarly, in this project several limitations appear, which would have been eliminated but for constraints of time, accessibility to information it has not been possible. This project report is based on the information given by the head or Unit Managers of the centers. The information is also collected through some magazines, newspapers and e-mails. Some respondents were not interested in giving answers as they were appearing to be busy. In fact, this project report involves human processing and analysis. Therefore, there are chances of human error. One of the major limitations is time bounded ness. The Management Trainees are restricted to a training of 6-8 weeks only ,and much of the time is spent in Coaching and training itself and not in the field. Trainees are provided with limited resources. No financial aid or stipend is being paid to them, so they can not spend much on meetings with the potential customers. It can be also treated as a limitation of Cost Bounded ness. Trainees are not being treated as part of the organization. They are merely considered as trainee. Last but not the least is the limitation of Area bounded ness. Trainees are restricted to a particular area, near by to the office of the organization.

89

BIBLIOGRAPHY

BIBLIOGRAPHY
Kotler. Philip, Keller. Kevin, Marketing management, Prentice hall India, 12th Edition, 2006 Kevin.j.clancy, Robert.s.shulmen, Marketing myths that are killing business, McGraw hill(New york), 4th edition, 1994 Chrsto.f. lovelock Jachen Writz, Service Marketing, Pearson education, 5th edition. Saxena rajan m Marketing management, Tata Mc Graw hill, 2nd edition, 2004 Levin.m.david Bearson. I.mack Business statistics, Pearson education, 2nd edition-2001.

90

I took some important guide regarding the company from Mr.Anil kumar Yadav, as he was our project guide.

Websites referred were www.relinacelife.co.in www.irdaindia.org WWW.INSURANCE.IND.COM

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APPENDIX

QUESTIONNAIRE

Name of Customer Address Phone Number Occupation

: : : :

_________________________ _________________________ _________________________ _________________________

Q.1 Where do you invest your money ? (a) (b) (c) (d) Bank Post office Life insurance company Capital Market

Q.2 Do you think it is good to invest your money in Life insurance Company? (a) (b) (c) YES NO Can t say

Q.3 In which Life Insurance Company you have invested your money ? (a) (b) (c) (d) LIC Reliance Life Insurance ICICI Other

92

Q.4 Do you know ? Where in your city Reliance Life Insurance has its office? (a) Yes (b) No Q.5 (a) Do you think it is safe to invest your in Reliance Life Insurance ? (a) (b) (c) YES NO Can t say

Q.5 (b). if no,then way ? (a) Private Company (b) New Company

Q.6. (a) Do you know about the policies of Reliance Life Insurance ? (a) Yes (b) No

Q.6 (b) If no, then why ? (a) Not Communicate (b) Not Interested.

Q.7 (a).Do you have any policy of Reliance Life Insurance ? (a) Yes (b) No
93

Q.7 (b) If yes, which one ? (a) Child Plan (b) Health Plan (c) Retirement Plan (d) Unit Link Plan Q.8 (a) If you dont have then would you like to take policy of Reliance Life Insurance? (a) (b) Yes No

Q.8 (b) if no, then why ? (a) High Premium (b) Not Now (c) Not Attractive (d) Only LIC

94