A Research Report on

“A STUDY ON CUSTOMER SATISFACTION OF RELIANCE LIFE

INSURANCE"

In Partial fulfillment of the requirements for the award of

Bachelor of Business Administration

Submitted By :
Satish kumar
Roll no: 617012053
&

Pradeep kumar
Roll no: 617012051
 A

Research Report

ON
“A STUDY ON CUSTOMER SATISFACTION OF RELIANCE LIFE
INSURANCE”

In Partial fulfillment of the requirements for the award of

Bachelor of Business Administration

Submitted By :
Satish kumar
Roll no: 617012053
&

Pradeep kumar
Roll no: 617012051
To whomsoever it may
concern

This is to certify that the Research Project of MBA entitled, “A

STUDY ON CUSTOMER SATISFACTION OF RELIANCE LIFE
INSURANCE”, done by Pradeep kumar, Roll No. 617012051 &
Satish Kumar Roll No. 617012053 is a beneficed work carried out
by him under my guidance. The matter embodied in this project
work has not been submitted in our college earlier for award of any
degree or diploma to the best of my knowledge and belief.

Mrs. Seema Chandel

DECLARATION

We Satish Kumar Roll No. 617012053 & Pradeep kumar Roll No.
617012051, here by declare that this project report entitle “A
STUDY ON CUSTOMER SATISFACTION OF RELIANCE LIFE
INSURANCE” has not been presented as a part of any other
academic except to get our MBA from Sri Sai University Palampur.
ACKNOWLEDGEMENTS

In this present world of competition there is a race of existence in

which those who are having will to come forward will succeed.
Project is a bridge between practical and theoretical working, with
this will I have joined the project. We really wish to express our
gratitude towards all those people who have helped us.
Our research guide Mrs. Seema Chandel who provided us her
expert advise, inspiration & moral support in spite of her busy
schedule & assignments, has mainly provided us understanding of
this project. We are very grateful to her kindhearted approach &
encouragement, which helped us immensely in completion of this
project report.
PREFACE

This project has been prepared, as a part of our MBA Program. This
will also serve as basis knowledge of “A STUDY ON CUSTOMER
SATISFACTION OF RELIANCE LIFE INSURANCE ” The Project
Report is accompanied with number of Formats, charts & flow
diagram, which will be helpful in understanding the subject matter.
We are thankful to Ms. Seema Chandel ; Lastly we are grateful to all
the seen and unseen hands that have been kind enough to help me in
preparing the above project report from the beginning to end.
 Contents

Particulars Page No.

 Introduction to the study 01

 Introduction to the company 15

 Review of Literature 29

 Objectives of study 36

 Research Methodology 38

A. Research Design

 Non- Probability

 Exploratory & descriptive experimental research

B. Sampling Methodology

 Sampling Technique

 Sampling Unit

 Sample Size

 Sampling Area
 Data Interpretation 44

 Findings 56

 Limitation 58

 Suggestions 60

 Conclusions 62
 References 64

 Questionnaire 66

Introduction
THE INSURANCE INDUSTRY IN INDIA

With the largest number of life insurance policies in force in the

world, Insurance happens to be a mega opportunity in India. It’s a
business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 1560.41 billion (for the financial year
2006 – 2007). Together with banking services, it adds about 7% to
the country’s Gross Domestic Product (GDP). The gross premium
collection is nearly 2% of GDP and funds available with LIC for
investments are 8% of the GDP.

Even so nearly 65% of the Indian population is without life

insurance cover while health insurance and non-life insurance
continues to be below international standards. A large part of our
population is also subject to weak social security and pension
systems with hardly any old age income security

A well-developed and evolved insurance sector is needed for

economic development as it provides long term funds for
infrastructure development and strengthens the risk taking ability of
individuals. It is estimated that over the next ten years India would
require investments of the order of one trillion US dollars.
HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818 when it was
conceived as a means to provide for English Widows. Interestingly in
those days a higher premium was charged for Indian lives than the
non - Indian lives, as Indian lives were considered more risky to
cover. The Bombay Mutual Life Insurance Society started its
business in 1870. It was the first company to charge the same
premium for both Indian and non-Indian lives.

The Oriental Assurance Company was established in 1880. The

General insurance business in India, on the other hand, can trace its
roots to Triton Insurance Company Limited, the first general
insurance company established in the year 1850 in Calcutta by the
British. Till the end of the nineteenth century insurance business
was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the

Life Insurance Companies Act of 1912 and the Provident Fund Act of
1912. Several frauds during the 1920's and 1930's sullied insurance
business in India. By 1938 there were 176 insurance companies.
The first comprehensive legislation was introduced with the
Insurance Act of 1938 that provided strict State Control over the
insurance business. The insurance business grew at a faster pace
after independence. Indian companies strengthened their hold on
this business but despite the growth that was witnessed, insurance
remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private

life insurers and provident societies under one nationalized
monopoly corporation and Life Insurance Corporation (LIC) was
born. Nationalization was justified on the grounds that it would
create the much needed funds for rapid industrialization. This was
in conformity with the Government's chosen path of State led
planning and development.

The non-life insurance business continued to thrive with the private

sector till 1972. Their operations were restricted to organized trade
and industry in large cities. The general insurance industry was
nationalized in 1972. With this, nearly 107 insurers were
amalgamated and grouped into four companies- National Insurance
Company, New India Assurance Company, Oriental Insurance
Company and United India Insurance Company. These were
subsidiaries of the General Insurance Company (GIC).
KEY MILESTONES

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 by the

Insurance Act with the objective of protecting the interests of the
insuring public.

1956: 245 Indian and foreign insurers along with provident

societies were taken over by the central government and
nationalized. LIC was formed by an Act of Parliament- LIC Act 1956-
with a capital contribution of Rs. 5 crore from the Government of
India.
PRESENT SCENARIO - LIFE INSURANCE
INDUSTRY IN INDIA

The life insurance industry in India grew by an impressive 47.38%,

with premium income at Rs. 1560.41 billion during the fiscal year
2006-2007. Though the total volume of LIC's business increased in
the last fiscal year (2006-2007) compared to the previous one, its
market share came down from 85.75% to 81.91%.

The 17 private insurers increased their market share from about

15% to about 19% in a year's time. The figures for the first two
months of the fiscal year 2007-08 also speak of the growing share of
the private insurers. The share of LIC for this period has further
come down to 75 percent, while the private players have grabbed
over 24 percent.

With the opening up of the insurance industry in India many foreign

players have entered the market. The restriction on these companies
is that they are not allowed to have more than a 26% stake in a
company’s ownership.
Since the opening up of the insurance sector in 1999, foreign
investments of Rs. 8.7 billion have poured into the Indian market
and 19 private life insurance companies have been granted licenses.

Innovative products, smart marketing, and aggressive distribution

have enabled fledgling private insurance companies to sign up
Indian customers faster than anyone expected. Indians, who had
always seen life insurance as a tax saving device, are now suddenly
turning to the private sector and snapping up the new innovative
products on offer. Some of these products include investment plans
with insurance and good returns (unit linked plans), multi – purpose
insurance plans, pension plans, child plans and money back plans.

MAJOR PLAYERS IN THE INSURANCE

INDUSTRY IN INDIA

 Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread

the message of life insurance in the country and mobilise people’s

savings for nation-building activities. LIC with its central office in
Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai,
Hyderabad, Kanpur and Bhopal, operates through 100 divisional
offices in important cities and 2,048 branch offices. LIC has 5.59 lakh
active agents spread over the country.

The Corporation also transacts business abroad and has offices in

Fiji, Mauritius and United Kingdom. LIC is associated with joint
ventures abroad in the field of insurance, namely, Ken-India
Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur; and Life Insurance Corporation
(International), E.C. Bahrain. It has also entered into an agreement
with the Sun Life (UK) for marketing unit linked life insurance and
pension policies in U.K.

LIC has even provided insurance cover to five million people living
below the poverty line, with 50 per cent subsidy in the premium
rates. LIC's claims settlement ratio at 95 per cent and GIC's at 74 per
cent are higher than that of global average of 40 per cent.
Compounded annual growth rate for Life insurance business has
been 19.22 per cent per annum

 General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a
government company known as General Insurance Corporation of
India (GIC) was formed by the Central Government in November
1972. With effect from 1 January 1973 the erstwhile 107 Indian and
foreign insurers which were operating in the country prior to
nationalization, were grouped into four operating companies,
namely, (i) National Insurance Company Limited; (ii) New India
Assurance Company Limited; (iii) Oriental Insurance Company
Limited; and (iv) United India Insurance Company Limited.
(However, with effect from Dec'2000, these subsidiaries have been
de-linked from the parent company and made as independent
insurance companies). All the above four subsidiaries of GIC operate
all over the country competing with one another and underwriting
various classes of general insurance business except for aviation
insurance of national airlines and crop insurance which is handled
by the GIC.

Besides the domestic market, the industry is presently operating in

17 countries directly through branches or agencies and in 14
countries through subsidiary and associate companies.

IN ADDITION TO ABOVE STATE INSURERS THE

FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO
INSURANCE BUSINESS: -
The introduction of private players in the industry has added to the
colors in the dull industry. The initiatives taken by the private
players are very competitive and have given immense competition to
the on time monopoly of the market LIC. Since the advent of the
private players in the market the industry has seen new and
innovative steps taken by the players in this sector. The new players
have improved the service quality of the insurance. As a result LIC
down the years have seen the declining phase in its career. The
market share was distributed among the private players.

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading
private life insurance companies, which offers a range of individual
and group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.), India’s
leading housing finance institution and The Standard Life Assurance
Company, a leading provider of financial services from the United
Kingdom. Their cumulative premium income, including the first year
premiums and renewal premiums is Rs. 672.3 for the financial year,
Apr-Nov 2005. They have managed to cover over 11,00,000
individuals out of which over 3,40,000 lives have been covered
through our group business tie-ups.
2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited is a joint venture
that brings together two large forces - Max India Limited, a multi-
business corporate, together with New York Life International, a
global expert in life insurance. With their various Products and
Riders, there are more than 400 product combinations to choose
from. They have a national presence with a network of 57 offices in
37 cities across India.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between
ICICI Bank, a premier financial powerhouse and Prudential plc, a
leading international financial services group headquartered in the
United Kingdom. ICICI Prudential was amongst the first private
sector insurance companies to begin operations in December 2000
after receiving approval from Insurance Regulatory Development
Authority (IRDA). The company has a network of about 56,000
advisors; as well as 7 banc assurance and 150 corporate agent tie-
ups.

5.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya
Birla Group and Sun Life financial Services of Canada.
  Tata AIG Life Insurance Company Ltd.

 SBI Life Insurance Company Limited

 ING Vysya Life Insurance Company Private Limited

 Allianz Bajaj Life Insurance Company Ltd.

 Metlife India Insurance Company Pvt. Ltd.

1. Royal Sundaram Alliance Insurance Company The

joint venture bringing together Royal & Sun Alliance Insurance and
Sundaram Finance Limited started its operations from March 2001.
The company is Head Quartered at Chennai, and has two Regional
Offices, one at Mumbai and another one at New Delhi.

2. Bajaj Allianz General Insurance Company

Limited
Bajaj Allianz General Insurance Company Limited is a joint venture
between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a
reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory

and Development Authority (IRDA) certificate of Registration (R3)
on May 2nd, 2001 to conduct General Insurance business (including
Health Insurance business) in India. The Company has an authorized
and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the
remaining 26% is held by Allianz, AG, Germany.

3. ICICI Lombard General Insurance Company

Limited
ICICI Lombard General Insurance Company Limited is a joint
venture between ICICI Bank Limited and the US-based $ 26 billion
Fairfax Financial Holdings Limited. ICICI Bank is India's second
largest bank, while Fairfax Financial Holdings is a diversified
financial corporate engaged in general insurance, reinsurance,
insurance claims management and investment management.

4. Cholamandalam General Insurance Company

Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS)
is a joint venture of the Murugappa Group & Mitsui Sumitomo.

Chola-MS commenced operations in October 2002 and has issued

more than 1.4 lakh policies in its first calendar year of operations.
The company has a pan-Indian presence with offices in Chennai,
Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore,
Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag.
5. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture
company, formed from the Tata Group and American International
Group, Inc. (AIG). Tata AIG combines the strength and integrity of
the Tata Group with AIG's international expertise and financial
strength. The Tata Group holds 74 per cent stake in the two
insurance ventures while AIG holds the balance 26 per cent stake.
INTRODUCTION
TO THE
COMPANY
ABOUT RELIANCE
Reliance Life Insurance Company Limited is a part of Reliance
Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance
Capital is one of India’s leading private sector financial services
companies, and ranks among the top 3 private sector financial
services and banking companies, in terms of net worth. Reliance
Capital has interests in asset management and mutual funds, stock
broking, life and general insurance, proprietary investments, private
equity and other activities in financial services.

 Reliance Capital Limited (RCL) is a Non-Banking Financial

Company (NBFC) registered with the Reserve Bank of India under
section 45-IA of the Reserve Bank of India Act, 1934.

 Reliance Capital sees immense potential in the rapidly growing

financial services sector in India and aims to become a dominant
player in this industry and offer fully integrated financial services.

 Reliance Life Insurance is another step forward for Reliance

Capital Limited to offer need based Life Insurance solutions to
individuals and Corporate.
 COMPANY PROFILE OF RELIANCE LIFE
INSURANCE

FOUNDER
Few men in history have made as dramatic a contribution to their
country’s 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 India’s capital markets, the champion of shareholder
interest.

 But the role Dhirubhai cherished most was perhaps that of India’s
greatest wealth creator. In one lifetime, he built, starting from the
proverbial scratch, India’s largest private sector enterprise.

 When Dhirubhai embarked on his first business venture, he had a

seed capital of barely US$ 300 (around Rs 14,000). Over the next
 three and a half decades, he converted this fledgling enterprise
into a Rs 60,000 crore colossus—an achievement which earned
Reliance a place on the global Fortune 500 list, the first ever
Indian private company to do so.

 Dhirubhai is widely regarded as the father of India’s capital

markets. In 1977, when Reliance Textile Industries Limited first
went public, the Indian stock market was a place patronised by a
small club of elite investors which dabbled in a handful of stocks.

CORPORATE OBJECTIVE

At Reliance Life Insurance, we strongly believe that as life is different

at every stage, life insurance must offer flexibility and choice to go
with that stage. We are fully prepared and committed to guide you
on insurance products and services through our well-trained
advisors, backed by competent marketing and customer services, in
the best possible way.

 It is our aim to become one of the top private life insurance

companies in India and to become a cornerstone of RLI
integrated financial services business in India.
CORPORATE MISSION
 “To set the standard in helping our customers manage their
financial future”.

RELIANCE POLICIES
(1) Reliance Children Plans

What could make you happier than knowing, that your child's future
is secure? Nothing, we suppose. Which is why, Reliance Life
Insurance brings to you Reliance Secure Child Plan, a unit-linked
Insurance Plan, that gives you the freedom to enjoy today with your
child, because his tomorrow is in safe hands.

 Do you see your child becoming a trailblazer?

 Will they create the ultimate symphony or give sports a new
dimension?

Our children may just be the ones to end the arms race and wipe out
poverty from the face of the Earth. But for them to be able to aim for
the skies, YOU NEED TO ACT NOW!

Introducing Reliance Secure Child Plan - a unique life insurance cum savings plan. secure the
future of your child.

Key Features
 Insurance cover on the life of child
Your child is completely protected - we will continue to pay the
premiums even if you are not alive
Life time income to child in the event of disability

Return Shield option to protect your investment returns

Liquidity in the form of partial withdrawals

Capital guarantee available on maturity and on death of the
child
for basic and top-up premiums

(2) RELIANCE HEALTH + WEALTH POLICY

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.

There are times when late working hours take precedence over your
health check-ups. And there are times when a visit to the doctor
seems more important than dividends on your shares. In the rat race
to make money, we often forget to take care of ourselves.
We understand this predicament. Here is a plan that will ensure that
your wealth keeps increasing constantly and yet your health does
not take a backseat. The Reliance Wealth Health Plan. A plan that
gives you the benefits of wealth bhi. health bhi.

Life changes. And as it does, so do your priorities. After all, the

circumstances of your life can determine the type of health coverage
you need.

India has made rapid strides in the health sector. Since

Independence, life expectancy has gone up markedly and survival
rates have also increased, still critical health issues remain.
Infectious diseases continue to claim a large number of lives.

Reliance Wealth + Health Plan, a health insurance plan underwritten

by Reliance Life Insurance Company Limited, is designed to work in
conjunction with contributions towards savings.
Key Feature
A Unit Linked plan with Unique Savings Component
Twin benefit of market linked return and health
protection
Choose from two different plan options
Flexibility to take care of your family’s health

(3) Reliance Pension Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.

Retirement means different things to different people, while some want to relax and take a trip
around the world, some want to start up a venture of their own, and pursue a dream harnessed for
years. The power to make your autumn years special lies only with you. The Reliance Super
Golden Years Plan gives you the power and the right kind of solution - A retirement plan that
allows you to save systematically and generate the much-needed corpus to make your olden
years look golden.

Key Features – Reliance Pension Policy :

Invest systematically and secure your golden years
A flexible unit-linked pension product that is different
from traditional life insurance products with Vesting
Age between 45 & 70 years
Eight different investment funds to choose from
Flexibility to switch between funds
Option to pay Regular, Single as well as Top-up
 premiums
Flexibility to advance / extend your Vesting Age
Tax free commutation up to one third of Fund Value at
Vesting Age

(4) Reliance Whole life insurance policy

You’ve always loved your family. As a loving person you want to be

rest assured that they will be happy, even if something were to
happen to you. With Reliance Whole Life Plan you can be sure that
your family will receive that timely financial support they need.

Go ahead, live your today to the fullest, without a worry about

tomorrow.

Key Features
Insurance protection till age 85
Choice of extending your insurance coverage till age 99
Convenient Premium Payment Term
Wealth creation through bonus additions
More value for your money by way of High Sum
Assured Rebate Get Sum Assured plus Bonuses in case
of your unfortunate death
Option to add two Riders – Critical Illness and
Accidental Death Benefit and Total and Permanent
 Disablement Rider
Policy Loan available after three full years premium
payment

BELOW ARE FEW OF THE PLANS THAT

ARE OFFERED BY RELIANCE LIFE
INSURANCE

INSURANCE PLANS AVAILABLE

1. Products (Individual Plans)

Savings (Endowment)

2. Reliance Endowment Plan

(formerly Divya Shree)
 3. Reliance Special Endowment Plan
(formerly Subha Shree)

4. Reliance Cash Flow Plan

(formerly Dhana Shree)

5. Reliance Child Plan

(formerly Yuva Shree)

6. Reliance Whole Life Plan

(formerly Nithya Shree)

Pensions
7. Reliance Golden Years Plan
(formerly Bhagya Shree)

Investments
8. Reliance Market Return Plan
(formerly Kanaka Shree)

9. Risk / Protection

10. Reliance Term Plan

(formerly Raksha Shree)

Products (Group / Corporate Plans)

11. Risk (Protection)

 Reliance Group Term Assurance Policy
(formerly Group Term Assurance Policy)

CUSTOMER SATISFACTION
Customer satisfaction is defined in the general satisfaction is a
persons feeling of pleasure or disappointed resulting from
comparing a product/service perceived performance in relation to
his or her expectation. If the performance fells short of expectation
the customer is not satisfied. If the performance matches the
expectation the customer is satisfied. If the performance exceeds
expectations the customer is highly satisfied or delighted.
Although the customer centered firms seeks to create high
customer satisfaction, that is not its ultimate goal. If the company
increases customer satisfaction by lowering its price or increasing
its services the result may be lower profit. The company might be
able to increase profitability by means other than increased
satisfaction. Defined as the feeling of pleasure or disappointment by
comparing the perceived performance of the product or service to
expectation perceived with product.
Customer Satisfaction = Performance / Expectation
Customer Satisfaction = Benefits / Conceived

All marketing strategies is built on STP- segmentation, Training,

and Positioning. A company discovers different needs and groups in
 the superior way, and then positioning its offering so that the target
market recognizes the company’s distinctive offering and image .If a
company does a poor job of poisoning, the market will be confused
as to what to expect .If a company does an excellent job of
positioning, then it can work out the rest of its marketing planning
and differentiation from its positioning strategy.
A must have decide how many ideas to convey in its positioning to its
target customers. Many marketers advocate promoting only one
central benefit.
A market offering can be differentiated along five dimensions
Product:- Form, feature, performance quality, conformance quality,
durability, reliability, responsibility, style, design.
Service:- Order as, delivery, installation, customer training
,customer consulting , maintenance and repair, miscellaneous
services.
Because economic conditions change and competitive activity
varies, companies normally find it necessary to reformulate their
marketing strategy several times during a product’s life cycle.
The definition of customer satisfaction has been widely debated as
organizations increasingly attempt to measure it. Customer
satisfaction can be experienced in a variety of situations and
connected to both goods and services. It is a highly personal
assessment that is greatly affected by customer expectations.
Satisfaction also is based on the customer’ experience of both
contact with the organization (the “moment of truth” as it is called in
business literature) and personal outcomes. Some researchers
define a satisfied customer within the private sector as “one who
receives significant added value” to his/her bottom line—a
definition that may apply just as well to public services.

Review
 of
Literature
 LITERATURE REVIEW

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 carvan 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 Lloyd’s Coffee House in London where risk bearers used
to meet to transact business.
This coffee house became so popular that Lloyd’s 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 India’s 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.

Insurance may be described as a social device to reduce or eliminate

risk of loss to life and property. Insurance is a collective bearing of
risk. Insurance is a financial device to spread the risks and losses of
few people among a large number of people, as people prefer small
fixed liability instead of big uncertain and changing liability.
Insurance can be defined as a “legal contract between two parties
whereby one party called insurer undertakes to pay a fixed amount
of money on the happening of a particular event, which may be
certain or uncertain.” The other party called insured pays in
exchange a fixed sum known as premium. Insurance is desired to
safeguard oneself and one’s family against possible losses on
account of risks and perils. It provides financial compensation for
the losses suffered due to the happening of any unforeseen events.
Insurance constitutes one of the major segments of the financial
market. Insurance services play predominant role in the process of
financial intermediary.

Today insurance industry is one of the most growing sectors in India.

There is lot of potential in the Indian Insurance Industry. There are
many issues, which require study. The scope of the study of
insurance industry of India would be very great as there are ongoing
developments in the industry after the opening of the sector.
The economy of a country is highly influenced by the Financial
System of the country. The Indian Financial System has been broadly
divided into two segments: the organized and the unorganized
segments. An investor has a wide array of investment avenues
available. Economic well being in the long run depends significantly
on how wise the investments are.
In the present financial scenario where the economy is poised to
grow approx. at 9% ,as stated by our finance minister P
Chidambaram, and the present bulls run in the capital market
,where lot of money is being pumped into the economy by FIIs, and
increasing disposable income with the generation next has created a
problem of investment because there is lot money on hand but they
don’t know where to invest as there is significantly less attractive
return in the bank FD, PPF, KVP, NSC, MIS, and other Post saving
scheme. Uncertainties in share market and low interest rate have left
investors puzzled, i.e. to spend the money or save the money. If they
want to save the money then where can they save it so that they can
get better returns with flexibility, tax benefit and as well as capital
appreciation. So it is necessary for investor to find the answer and
way of capital growth with better return rather than uncertain share
market and other low yield investment avenues.
Insurance constitutes one of the major segments of the financial
market. Insurance services play predominant role in the process of
financial intermediary. Today insurance industry is one of the most
growing sectors in India. There is lot of potential in the Indian
Insurance Industry.
There are many issues, which require study. The scope of the study
of insurance industry of India would be very great as there are
ongoing developments in the industry after the opening of the
sector.
The major issue right now is the hike in FDI (Foreign Direct
Investment) limit from 26% to 49% in the insurance sector.
Government may in near future allow 49% FDI in Insurance. This
would lead to more capital inflow by foreign partners.
Another major issue is the effects on LIC after the entry of private
players in the market. Though market share of LIC has been affected,
it has improved in terms of efficiency.
There are number of other hot topics like penetration of Health
Insurance, Rural marketing of insurance, new distribution channels,
new product ranges, insurance brokers’ regulation, incentive scheme
of development officers of LIC etc. 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.
OBJECTIVE
OF
STUDY
OBJECTIVES OF STUDY

The main of the present study of is accomplish the following

objective.

 Proper understanding and analysis of life insurance

industry.

 To know about brand awareness of RELIANCE Life

Insurance and customer’s satisfaction about Life
Insurance.

 According the market survey come know about how much

potential of insurance market in our city.

 And base on analysis of the result thus obtained make a

report on that research.
 RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

Research can be defined as systematized effort to gain new

knowledge. A research is carried out by different methodology,
which has their own pros and cons.

Research methodology is a way to solve research problem along

with the logic behind them. Thus when we talk of the research
methodology we not only take of research method but also context
of our research study and explain why we are using a particular
method or techniques and why we are not using other so that
research result are capable of being evaluated either by the
researchers himself or by others.

Research methodology means the method carried out to study

the problem . It shows the type of the sample design used, its size
and the procedure used to dew sample. The extent of precision
achieved and the method used for handling any special problem
during the course of the study.
RESEARCH METHODOLOGY
TITLE:
To determine customer satisfaction for Reliance Life Insurance.

TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with
studying the customer satisfaction in the insurance industry with a
special focus on Reliance life Insurance. The various segments of
the markets divided in terms of Insurance Needs, Age groups ,
Satisfaction levels etc will also studied.

OBJECTIVE
 To determine customer satisfaction on reliance life insurance

 To provide the company with information of customer's

Insurance policy if they have any and reasons for opting for that
particular policies.

 To know the most preferred policy.

SCOPE OF THE STUDY
A big boom has been witnessed in Insurance Industry in recent
times. A large number of new players have entered the market and
are vying to gain market share in this rapidly improving market. The
study deals with Reliance in focus and the various segments that it
caters to. The study then goes on to evaluate and analyze the
findings so as to present a clear picture of trends in the Insurance
sector.

SIGNIFICANCE OF THE STUDY

This is a limited study which takes into consideration the responses
of 50 people. This data can be exported to take in the trends across
the industry. The significance for the industry lies in studying these
trends that emerge from the study. It is a rapidly changing and
evolving sector. People are only beginning to wake up to it’s vast
possibilities. A study like this can attempt to guide the future of the
industry based on current trends.
RESEARCH DESIGN
 NON-PROBABILITY

 EXPLORATORY & DISCRIPTIVE EXPERIMENTAL

RESEARCH
The research is primarily both exploratory as well as descriptive in
nature. The sources of information are both primary & secondary.

A well-structured questionnaire was prepared and personal

interviews were conducted to collect the customer’s perception and
buying behavior, through this questionnaire.

SAMPLING METHODOLOGY
Sampling Technique:
Initially, a rough draft was prepared keeping in mind the objective of
the research. A pilot study was done in order to know the accuracy
of the Questionnaire. The final Questionnaire was arrived only after
certain important changes were done. Thus my sampling came out
to be judemental and convinent
Sampling Unit:
The respondents who were asked to fill out questionnaires are the
sampling units. These comprise of employees of Reliance life
insurance customers.

Sample size:
The sample size was restricted to only 50, which comprised of
mainly peoples from different regions of KANGRA due to time
constraints.

Sampling Area :
The area of the research was Kangra and Palampur.
 DATA
INTREPRETATION
DATA INTERPRETATION
1. On scale of “extremely dissatisfied” to “extremely satisfied” how would you rate your level of satisfaction with reliance life
insurance?

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 28 55

Good 10 20
Poor 12 25
TOTAL 50 100

INTERPRETATION

 55% of the respondents believe that they are reliance life insurance
service is excellentWhereas, 20% and 25% of them believe that the
reliance life insurance service good and poor respectivel

2. How likely are you to recommend reliance life insurance to a friend

or relative? Would you say the chances are
 NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 28 55

Good 10 20
Poor 12 25
TOTAL 50 100

INTERPRETATION
 Majority of the respondent (37%) found Larger risk coverance as the most attracted
feature of the all.

 55% of the respondents believe that they are reliance life insurance service is excellent

 Whereas, 20% and 25% of them believe that the reliance life insurance service good
and poor respectively

3. How likely are you to repurchase products and services from reliance life insurance?
Would you say the chances are?
 NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 33 66

Good 10 20
Poor 7 14
TOTAL 50 100

INTERPRETATION

 65% of the respondents believe that they repurchaseare reliance life insurance
service

 Whereas, 20% and 14% of them believe that the reliance life insurance service good
and poor respectively

4.How likely you rate the overall quality of your relationship with reliance life insurance all of your experiences?would you say the
chances are?
 NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 30 60

Good 10 20
Poor 10 20
TOTAL 50 100

INTERPRETATION

 60% of the respondents believe that they have excellent experience of reliance life
insurance service

 Whereas, 20% ,and 20% of them believe that the reliance life insurance service good
and poor respectively.

5 How would you rate your satisfaction level in regards to customer

service?

NO.OF
BENEFITS SHARE (%)
RESPONDENTS
 Excellent 35 70

Good 7 14
Poor 8 16
TOTAL 50 100

INTERPRETATION

 70% of the respondents believe that they have excellent experience of customer
service of reliance life insurance service

 Whereas, 14% ,and 16% of them believe that the reliance life insurance service good
and poor respectively.

6.How would you rate your level of satisfaction with reliance life
insurance in regards to price?

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 33 65

Good 12 25
 Poor 5 10
TOTAL 50 100

INTERPRETATION

65% of the respondents believe that they have excellent experience of satisfaction in
regards to price

 Whereas, 25% ,and 10% of them believe that the reliance life insurance service good
and poor respectively.

7.How would you rate satisfaction in regards to

value for money?
NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 28 55

Good 15 30
Poor 7 15
TOTAL 50 100

 55% of the respondents believe that they have excellent experience of satisfaction
in regards to value for money

 Whereas, 30% ,and 15% of them believe that the reliance life insurance service good
and poor respectively.

8. How would you rate your satisfaction in regards to processing system of reliance life insurance service?

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 30 60

Good 13 25
Poor 7 15
TOTAL 50 100
INTERPRETATION

 60% of the respondents believe that they have excellent experience of satisfaction
in regards to value for money

 Whereas, 25% ,and 15% of them believe that the reliance life insurance service good
and poor respectively.

9.How would you rate your satisfaction level in regards to service of

reliance life insurance service?

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 33 65

Good 15 30
Poor 2 5
TOTAL 50 100
INTERPRETATION

 65% of the respondents believe that they have excellent experience of satisfaction
in regards to service .

Whereas, 30% ,and 5% of them believe that the reliance life insurance service good
and poor respectively.

10 Which policy would you choose out of all reliance insurance policies. ?

A. Reliance endowment plan

35%
B. Reliance special endowment plan
25
C. Reliance cash flow plan 20

D. Reliance child plan 20

INTERPRETATION

 35% of the respondents believe that they have excellent experience of reliance
endowment plan

 25 % of the respondents believe that they will go for special endowment plan..

Whereas, 20% ,and 20% of of the respondents believe that they will choose cash
flow and child plan respectively.

11.How would you rate your satisfaction level in regards to your current policy plan?

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Excellent 38 75

Good 10 20
Poor 2 5
TOTAL 50 100
INTERPRETATION

 75% of the respondents believe that they have excellent experience of satisfaction
in regards to their current policy .

Whereas, 20% ,and 5% of them believe that the reliance life insurance service good
and poor respectively in regards to their current policy .

FINDINGS
 OF THE
STUDY

FINDINGS

 It is found the Customers are satisfy with the Reliance life

insurance service.
 Reliance life insurance service. Gives best satisfaction to its
customers.

 Most of the customers want Reliance life insurance service

again.

 It is found that life cover plan, investment plan attract

customer.
LIMITATIONS

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Palampur and
does not necessarily shows a pattern applicable to all of
Country.

2. Some respondents were reluctant to divulge personal

information which can affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one

segment can change very quickly. The environmental changes are
vital to be considered in order to assimilate the findings.
 SUGGESTION

Suggestion
 According the survey only 42% people are insured in
Reliance life insurance service so reaming other part is for
other insurance companies.

 Among that 42% people who having insurance, they have

insurance 40% for self 28%for spouse 21% for children
and 18% for their parents and 11% for all family member.

 Only 42% people having insurance in PALAMPUR that

42% there are 82 % people are under insured and other
18% people are fully insured according to their income so
that is also plus point for insurance sector to capture the
market
 CONCLUSION

Conclusion
Our exhaustive research in the field of Life Insurance threw up some
interesting trends which can be seen in the above analysis. A general
impression that we gathered during Data collection was the
immense awareness and knowledge among people about various
companies and their insurance products. People are beginning to
look beyond LIC for their insurance needs and are willing to trust
private players with their hard earned money.

People in general have been impression by the marketing and

advertising campaigns of insurance companies. A high penetration
of print , radio and Television ad campaigns over the years is
beginning to have it’s impact now.

The general satisfaction levels among public with regards to policy

and agents still requires improvement. But therein lays the
opportunity for a relative new comer like ING. LIC has never been
known for prompt service or customer oriented methods and
Reliance can build on these factors.
BIBILIOGRAPHY
AND

REFERENCES
REFERENCES

1. BOOKS/ REFFERED-
o Broachers of Reliance Life Insurance
o Net Bios Computer Academy’s Life Insurance Book
o Life time Magazine of Reliance Life Insurance

2. WEBSITES REFFERED -

O WWW.RELIANCELIFE.CO.IN

O GOOGLE.COM

O BIMAONLINE.COM

O WWW.CIFAINSURANCE.COM

O WWW.MONEYOUTLOOK.COM

O WWW.INSURANCE.IND.COM
 QUESTIONNAIRE

QUESTIONNAIRE

Name:_________________
Age:___________________
Address:______________________________________________
_____________________________
Pin:__________
Email:_____________________
Occupation:___________________________

Q1. On scale of “extremely dissatisfied” to “extremely satisfied”

how would you rate your level of satisfaction with reliance
life insurance?

Excellent Good Poor

Q2. How likely are you to recommend reliance life insurance to a friend
or relative? Would you say the chances are?

Excellent Good Poor

Q3. How likely are you to repurchase products and services

from reliance life insurance? Would you say the chances
are?

Excellent Good Poor

Q4. How likely you rate the overall quality of your relationship
with reliance life insurance all of your experiences? would
you say the chances are?

Excellent Good Poor

Q5. How would you rate your satisfaction level in regards to

customer service ?

Excellent Good Poor

Q6. How would you rate your level of satisfaction with reliance
life insurance in regards to price?

Excellent Good Poor

Q7. How would you rate satisfaction in regards to value for

money?

Excellent Good Poor

Q8. How would you rate your satisfaction in regards to

processing system of reliance life insurance service?

Excellent Good Poor

Q9. How would you rate your satisfaction level in regards to
service of reliance life insurance service?

Excellent Good Poor

Q10. Which policy would you choose out of all reliance

insurance policies?

A. Reliance endowment plan

B. Reliance special endowment plan

C. Reliance cash flow plan

D. Reliance child plan

Suggestion:_____________________________________________________