PROJECT REPORT ON

COMPLETE STUDY OF AGENCY

MOUDLE
OF LIFE INSURANCE

A report submitted in partial fulfilment

Of the requirement of MBA Program of
2007-2008 at WISDOM BANASTHALI UNIVERSITY

SUBMITTED BY :-
PRAGYA MAJEJI
MBA II SEM
ROLL NO:- 7726
BANASTHALI UNIVERSITY
 ACKNOWLEDGEMENT

Co-operation and building up of moral are the essence of success. These

are two factors that go a long way in achieving it. It is a Herculean task,
which lacks these two determinants of success. Summer training was an
exposure to corporate environment. It was an opportunity and great
pleasure for me to be in such an environment and having interaction with
concerned people.
Any job in this world, however trivial or tough cannot be accomplished
without the assistance of other. I would hereby take the
opportunity to express my indebtedness to people who have
helped me to accomplish this task.
I take this opportunity to place on my grateful thanks and sincere
gratitude to the Reliance Life Insurance for providing me a wonderful
chance of working in a prestigious company.
First of all I would like to thank Miss Asra Ahmed (Sales Manager) and
also to Mr.Malik who helped me in this project, which not only
increased my awareness about the latest fields but also helped to increase
my confidence level.
I humbly acknowledge affectionate guidance and constant encouragement
for my training, which I received from Prof. Siddharth Shastri, Dean
(WISDOM), Banasthali vidyapith.
I am also immensely grateful to my esteemed Faculty Guide Mr. Harsh
Purohit, Professor, Banasthali Univesrity (WISDOM), Rajasthan for his
constant support and continued and invaluable guidance at each step of
this summer internship program.

PRAGYA MAJEJI
MBAII SEM
BANASTHALI UNIVERSITTY
 PREFACE

The liberalization of the Indian insurance sector has been the subject of
much heated debate for some years. The policy makers where in the catch
22 situation wherein for one they wanted competition, development and
growth of this insurance sector which is extremely essential for
channeling the investments in to the infrastructure sector. At the other
end the policy makers had the fears that the insurance premia, which are
substantial, would seep out of the country; and wanted to have a cautious
approach of opening for foreign participation in the sector

As one of the rare occurrences the entire debate was put on the back
burner and the IRDA saw the day of the light thanks to the maturing
polity emerging consensus among factions of different political parties.
Though some changes and some restrictive clauses as regards to the
foreign participation were included the IRDA has opened the doors for
the private entry into insurance.

Whether the insurer is old or new, private or public, expanding the market
will present multitude of challenges and opportunities. But the key issues,
possible trends, opportunities and challenges that insurance sector will
have still remains under the realms of the possibilities and speculation.
What is the likely impact of opening up India’s insurance sector?

The large scale of operations, public sector bureaucracies and

cumbersome procedures hampers nationalized insurers. Therefore,
potential private entrants expect to score in the areas of customer service,
speed and flexibility. They point out that their entry will mean better
products and choice for the consumer. The critics counter that the benefit
will be slim, because new players will concentrate on affluent, urban
customers as foreign banks did until recently. This seems to be a logical
strategy. Start-up costs-such as those of setting up a conventional
distribution network-are large and high-end niches offer better returns.

However, the middle-market segment too has great potential. Since

insurance is a volumes game. Therefore, private insurers would be best
served by a middle-market approach, targeting customer segments that
are currently untapped.
 EXECUTIVE SUMMARY
In today’s corporate and competitive world, I find that insurance sector
has the maximum growth and potential as compared to the other sectors.
Insurance has the maximum growth rate of 70-80% while as FMCG
sector has maximum 12-15% of growth rate. This growth potential
attracts me to enter in this sector and RELIANCE LIFE INSURANCE
has given me the opportunity to work and get experience in highly
competitive and enhancing sector.

• The success story of good market share of different market

organizations depends upon the availability of the product and
services near to the customer, which can be distributed through a
distribution channel. In Insurance sector, distribution channel
includes only agents or agency holders of the company. If a
company like RELIANCE LIFE INSURANCE, TATA AIG, and
MAX etc have adequate agents in the market they can capture big
market as compared to the other companies.

• Agents are the only way for a company of Insurance sector through
which policies and benefits of the company can be explained to the
customer.
 CONTENTS
INTRODUCTION TO THE INDUSTRY
INTRODUCTION TO THE COMPANY
CHAIRMAN PROFILE
BOARD OF DIRECTORS
ABOUT RELIANCE
OBJECTIVES
CORE VALUES
PLANS OFFERED
RESEARCH METHODOLOGY
 Title
 Objective of the Study
 Scope of the Study
 Significance of the Industry
 Significance of the Research
 Research Technique
 Sampling Methodology
 Sampling unit
 Sampling Area
 Sample Size
 Limitations

MARKETING STRATREGIES
FACTS AND FINDINGS
DATA AND INTERPRETATION
RECOMMENDATIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
 “ TOGETHER WIN THE WORLD ”

INTRODUCTION TO THE INDUSTRY

THE HISTORY OF INDIAN INSURANCE
INDUSTRY

Life Insurance

In 1818 the British established the first insurance company in India in

Calcutta, the Oriental Life Insurance Company. First attempts at
regulation of the industry were made with the introduction of the Indian
Life Assurance Companies Act in 1912. A number of amendments to this
Act were made until the Insurance Act was drawn up in 1938.
Noteworthy features in the Act were the power given to the Government
to collect statistical information about the insured and the high level of
protection the Act gave to the public through regulation and control.
When the Act was changed in 1950, this meant far reaching changes in
the industry. The extra requirements included a statutory requirement of a
certain level of equity capital, a ceiling on share holdings in such
companies to prevent dominant control (to protect the public from any
adversarial policies from one single party), stricter control on investments
and, generally, much tighter control. In 1956, the market contained 154
Indian and 16 foreign life insurance companies. Business was heavily
concentrated in urban areas and targeted the higher echelons of society.
“Unethical practices adopted by some of the players against the interests
of the consumers” then led the Indian government to nationalize the
industry. In September 1956, nationalization was completed, merging all
these companies into the so-called Life Insurance Corporation (LIC). It
was felt that “nationalization has lent the industry fairness, solidity,
growth and reach.”

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

are:

1912: The Indian Life Assurance Companies Act enacted as the first
statute to regulate the life insurance business
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance

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

1956: The market contained 154 Indian and 16 foreign life insurance
companies.

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

Some of the important milestones in the general insurance business in

India are:

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

1957: General Insurance Council, a wing of the Insurance Association

of India, frames a code of conduct for ensuring fair conduct and sound
business practices.

1968: The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972
nationalize the general insurance business in India with effect from 1st
January 1973. 107 insurers amalgamated and grouped into four
companies viz.
The National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United
India Insurance Company Ltd. GIC incorporated as a company.
 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.

• 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.
IN ADDITION TO ABOVE STATE INSURERS THE
FOLLOWING HAVEBEEN PERMITTED TO ENTER INTO
INSURANCE BUSINESS: -

The introduction of private players in the industry has added to the

colours 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. Though LIC still holds the 75%
of the insurance sector but the upcoming natures of these private
players are enough to give more competition to LIC in the near future.
LIC market share has decreased from 95% (2002-03) to 82 %( 2004-
05).

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.

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 bancassurance and 150 corporate agent tie-ups.

4. Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

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.

 AMP SANMAR Assurance Company Ltd.

 Dabur CGU Life Insurance Company Pvt. Ltd.

6. Reliance Life Insurance Company Limited

Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai

Ambani Group is India's fastest growing life insurance company and
among the top 5 private sector life insurers. Reliance Life Insurance
has a pan India presence and a range of products catering to individual
as well as corporate needs. Reliance Life Insurance has over 700
branches and 1,50,000 agents. It offers 23 products covering savings,
protection & investment requirements. Reliance Life Insurance will
endeavour to attain a leadership position in the market over the next
few years, by further expanding and strengthening its distribution
network and offering a diverse array of products to suit the varied and
specific needs of individual customers.

7. 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 General Insurance Company, which
started its operations in India on January 22, 2001, offers the complete
range of insurance for automobile, home, personal accident, travel,
energy, marine, property and casualty, as well as several specialized
financial lines.

8. Reliance General Insurance Company Limited.

9. IFFCO Tokio General Insurance Co. Ltd.

 CHAIRMAN PROFILE

Regarded as one of the foremost corporate leaders of contemporary India,

Anil Dhirubhai Ambani is the Chairman of all listed Group companies,
namely: Reliance Communications, Reliance Capital, Reliance Energy
and Reliance Natural Resources Limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani

Institute of Information and Communication Technology, Gandhi Nagar,
Gujarat.

Till recently, he also held the post of Vice Chairman and Managing
Director in Reliance Industries Limited (RIL), India’s largest private
sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer,

and was centrally involved in every aspect of the company’s management
over the next 22 years.

He is a member of:

Wharton Board of Overseers, The Wharton School, USA

Central Advisory Committee, Central Electricity Regulatory Commission

Board of Governors, Indian Institute of Management, Ahmedabad

Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent

member of the Rajya Sabha, Upper House of India’s Parliament a
position he chose to resign voluntarily on March 25, 2006.
 BOARD OF DIRECTORS
1) Amitabh Jhunjhunwala, Vice-Chairman
Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in
finance and the capital markets. Amitabh is also the
Director of Reliance Capital Asset Management Limited.

(2) Rajendra Chitale, Independent Director

Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing
Partner of M/s M. P. Chitale & Co. He is a Director on Boards of the
National Stock Exchange of India (NSE). He is also a member of the
Advisory Group on Derivatives and the Takeover Panel, Securities and
Exchange Board of India, as well as the Company Law Advisory
Committee of the Government of India.

(3) Shri C. P. Jain

Shri C.P. Jain, aged 60 years, is the former Chairman and
Managing Director of National Thermal Power Corporation
(NTPC). Shri Jain has an illustrious career spanning over four
decades of contribution in the fields of financial management,
general management, strategic management and business
leadership.
 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 Corporates.
 OBJECTIVES

(1) Make affordable insurance accessible to all

(2) Keep customer as focal point for all operations

(3) Protect policy holders interests

(4) Adopt best international practices in claims, underwriting and policy

servicing

(5) Be the most innovative in product development

(6) Establish Pan India presence

Value propositions

Risk Evaluation: Provide expertise in risk evaluation and risk mitigation

leading to the most appropriate risk transfer solution.

Post sales services: Differentiate on service parameters by ensuring

prompt and correct documentation& fair, transparent, speedy claims
settlement.

New products: Introduce innovative products suited to specific market

segments

Training: Extensive training to the employees involved in underwriting

and claims to ensure availability of a varied experienced and competent
team to cater to the customer needs.

Technology: Use IT as a means to provide for a far superior customer

experience in terms of access, speed and simplicity

Reinsurance backing: Apart from using capacity of the national

reinsurer, establish relationships with the best reinsurers across the world.
 CORE VALUES
Opportunity has a new name – “Reliance Life Insurance Company
Limited”. If you have been waiting for that one job which will enrich
your professional and personal life then you are at the right place. At
Reliance Life Insurance Company Limited ,the mission is to be the best
in every sphere - business results, customer care and employee focus.
Some of the important core values are:

In the area of Human Resources RELIANCE INSURANCE looking

towards fulfilling their core values through:

An open environment enabling free interaction between all levels.

A balanced scorecard approach to strategy deployment and
performance measurement which set goals and measure financial,
customer focused, process related and employee development related
initiatives.
Aggressive Reward & Recognition plans including sales incentives.
Career Development plans that will identify potential and create
avenues for growth.
Intensive training practices for both functional as well as
competency development.
Knowledge sharing and certification practices.
Planned team building and fun events.
Creating Reliance Life Insurance family including employees,
associates and their families.
 PLANS 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. Reliance Automatic Investment Plan
10. Reliance Super InvestAssure Plan

11. Reliance Term Plan

(formerly Raksha Shree)

Products (Group / Corporate Plans)
12.Risk (Protection)
Reliance Group Term Assurance Policy
(formerly Group Term Assurance Policy)

Reliance EDLI Scheme

(formerly EDLI Scheme)
13.Pensions
a. Reliance Group Gratuity Policy
(formerly Group Gratuity Policy)
b. Reliance Group Superannuation Policy
(formerly Group Superannuation Policy)

14. Reliance Money Guarantee Plan

The 3 plans that are discussed below are
studying in detail.

Reliance Automatic Investment Plan

Key Benefits
Asset Allocation according to your risk at a particular
Automatic Asset Allocation
age
Systematic Transfer Plan Helps to average out the cost of units
Option to move between in and out of specific Reliance
Exchange Option
Life ULIP
Other Benefits
Fund options Choice of 7 carefully designed funds
Riders Accident Death & Disability and Term Riders
Tax Benefit Under section 80C and 10(10D)
Unmatched Flexibility
Can be used to increase the investment component in
Top Ups
the policy
Partial Withdrawals Provides liquidity in case of need
Switching Options Flexibility to switch between funds
Premium Redirection To change fund configuration for future premiums
\Settlement Options Keep the money invested and receive in installments
Premium payment Options Flexibility to pay premiums in over different modes
  Reliance Super Invest Assure Plan

Rewards in form of Guaranteed

Additions of upto 250% of
annual premium amount

Tax saving u/s 80 C, Wide Investment Options

80D & 10 (10D) with over 7 funds

RELIANCE SUPER
INVESTASSURE PLAN

Unmatched flexibility
Liquidity through Partial on your investments
Withdrawals

Protection with Life Cover,

additional protection with
Accident & Health Riders

 Regular Premium Unit Linked Insurance Plan

 Guaranteed Addition’s – up to 250% of annual premium in

addition to earnings growth (10 th year 50% - 15th year – 50%, 20
th year 50%, 25th year 50% and 30th year 50%)

 Wide array of 8 fund options including 3 Sectoral Funds and a Pure

Equity Fund

 Liquidity through partial withdrawals

 Life Cover upto 20 times Annual Premium Depending on Age

 Unparalleled investment flexibility through Free Switches, Top-

ups, Systematic Transfer, Premium Redirection and Exchange

 Additional Protection with Riders (Reliance Term Life, Reliance

Accidental Death & Total & Permanent Disablement, Reliance
Critical Conditions (25) & Reliance Major Surgical Riders)
Reliance Money Guarantee Plan

 All Basic premiums are guaranteed across all terms

 4 fund option with 60% equity exposure
 Top-ups available
 Rs 40 policy admin charge
 Applicable between 30 days to 55 years
 Guarantee continues on base policy even after withdrawal from
top-ups
 RESEARCH METHODOLOGY

TITLE:
To determine customer-buying behavior with a focus on market
segmentation for Reliance Life Insurance.

TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with
studying the buying pattern 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

Objective One
 To determine reasons behind opting for an 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.

Objective Two
 To determine customers perception towards private insurance
companies and their expectation form private insurance
companies.
 To determine the feedback on services provided by any other
insurance agent.
 To study the types of benefits provided by insurance services.
 To determine the use of Internet for valuable information and
decision-making process.
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 analyse
the findings so as to present a clear picture of trends in the
Insurance sector.

SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the
responses of 100 people. This data can be explorated 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 rapiddly
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.

SIGNIFICANE FOR THE RESEARCHER :

To facilitate and provide all the useful informtaion of the studt,
the company, the insurance industry and also provide marketing
ways, methods of reliance life insurance.

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

SamplingTechnique:
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 judgmental and convenient

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

Sample size:
The sample size was restricted to only 100, which comprised of
mainly peoples from different regions of Indore due to time
constraints.

Sampling Area :
The area of the research was Indore, India
 LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Delhi 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.
 FACTS/FINDINGS
1. As the people think that insurance is a tool to protect their
family & a tax saving device. They are aware of the fact &
realizing its, importance. The company should try to expand &
build up its infrastructure because there is a large potential for
insurance in India.
2. Company should come up with its branch in Delhi. With the
objective and goals to meet the demands & expectations of the
public. Because the entrance of private players will increase the
competition and it would be a tough task to secure a good
position in market.
3. Since Reliance Life Insurance is leading with several
companies’ policies it should be easy for them to penetrate into
the market and secure a good position if they pay greater
attention to the service part provided to their customer and
thereby forming a long and trusted relationship.

DATA ANALYSIS AND

INTERPRETATION

1. Respondents of the sample size as per the market

share of the companies.
COMPANY NAME Respondent
LIC 62
RLIC 7
ICICI PRUDENTIAL 9
SBI LIFE 6
OTHERS 12

MARKET SHARE AS PER THE RESPONDANT

13%

6%
LIC
RLIC
9%
ICICI PRUDENTIAL
SBI LIFE
7% 65% OTHERS

Interpretation:-

1. As per the respondents of the survey LIC still maintains its top
position with 65%.

2. Among the private sector companies there is a tough compition

after the LIC’s position.

3. ICICI PRUDENTIAL still the largest sector Insurance

Company but SBI LIFE, RLIC, HDFC STANDARDS are hot
on heals of ICICI PRUDENTIAL.

2. Purpose of the ULIP as per the respondents.

Responden
Benefits t
Future Investment 35
 Cover Uncertanity 40
Tax saving 25

PURPODE OF ULIP AS PER THE RESPONDENTS

25%
35%
Future Investment
Cover Uncertanity
Tax saving

40%

Interpretation:-

1. According to the sample survey 40% of the respondents take

ULIP as per future uncertainty.
2. About 35% of the respondents take ULIP for future
investment/savings.
3. Only 25% of the respondents take ULIP as per tax saving tool.

3. The percentage of people who are covered under

insurance policy.

responses no. of respondents

yes 8
No 92
 People covered under insurance policy

yes
8%

yes
no

no
92%

Interpretation:-
1. Only 8% of the people are covered by insurance according to
the survey.
2. A huge majority of 92% of the people are not covered under
insurance.

4. As per the sample size the respondents behavior

towards the insurance sector.
policy type no. of respondents
Life policy 80
non life policy 20
both 20
none 70
 respondents as per the policy covered and not

none life policy

life policy
37%
41% non life policy
both
none
both non life policy
11% 11%

Interpretation:-

1. According to the survey 41% of the respondents take ULIP as

for insurance cover.
2. About 37% of the respondents do not believe in ULIP.
3. An equal share is distributed between as per non life policy and
both.

5. Buying behavior of the respondents.

Buying process No. of respondents

Direct companuy 20
Through agents 80
 Data show byuing behaviour of people

direct companuy
20%

direct companuy
through agents

through agents
80%

Interpretation:-

1. According to the survey people who buy insurance 80% of

them are approached by the sales person of the company.

2. About 20% of the people approach the company directly.

MARKETING STRATEGIES

Reliance life insurance industry continued to face challenges from low

interest rates and heavy pressure from financial sales channels. To ensure
stable and fair operation of the life insurance industry, the securities
oversight institutions implemented an RBC system, enacted liberalization
of the policy dividend system, and began easing of caps on foreign
investment. These steps helped to solidify the foundations for a sound
and impartial life insurance industry.

To respond to a rapidly changing industry environment .Reliance Life

has employed a number of proactive and effective operating strategies,
worked to strengthen its competitiveness and reinforce its market
leadership position. These strategies include developing strategic
products to satisfy customer requirements, actively opening up new sales
channels, implementing a CRM system to promote diversified marketing
campaigns, and continuing to recruit high-calibre marketing personnel to
the organization to lead the organizational restructuring.

Reliance Life Insurance is committed to a business philosophy based on

placing customers first and emphasizing corporate social responsibility.
We will continue to develop dynamic, innovative services to satisfy our
customers. Examples include being the first to implement electronic
signatures in our online insurance policy system, supporting the Cloud
Gate Dance Theatre's outdoor performance for eight years in a row and
sponsoring the 28th annual national children's drawing competition. For
the last six years in a row Because of our outstanding operational
achievements, Reliance have received awards from professional
organizations and magazines as an industry-leading brand.

As interest rates in the financial sector remain low and with the
liberalization of policy dividends, all aspects of their business-property,
accident and health insurance-are actively expanding sales channels to
face the challenge of an increasingly competitive market.

Reliance Insurance is focused on an operational strategy based on

professional leadership, innovative service and superior marketing to
develop new prospects, and is actively implementing more forward-
looking and concrete strategies. Reliance Insurance is strengthening
product and sales channel development, and promoting integrated
marketing to boost overall efficiency-in the finance area, we are
strengthening asset management and risk control to improve the
efficiency of capital utilization.
 SWOT ANALYSIS

SWOT expands to Strength, Weakness, Opportunities and

Threats.
STRENGTH WEAKNESS

• Highly skilled sales • Communication gap

between different
force (70000) functional area of
• Array of products. company

• Higher customer • Complesency

satisfaction
OPPORTUNITIES THREATS
 • Competitors.
• Technology
• Fluctuation in market.
enhancement.
• Exploring newer
market

RECOMMENDATIONS
1. As the people think that insurance is a tool to protect their family &
a tax saving device. They are aware of the fact & realizing its,
importance. The company should try to expand & build up its
infrastructure because there is a large potential for insurance in
India.

2. Company should come up with its branch in Delhi. With the

objective and goals to meet the demands & expectations of the
public. Because the entrance of private players will increase the
competition and it would be a tough task to secure a good position
in market.

3. Since Reliance Life Insurance is leading with several companies’

policies it should be easy for them to penetrate into the market and
secure a good position if they pay greater attention to the service
part provided to their customer and thereby forming a long and
trusted relationship.
 4. As seen from the survey that at present 70% of the customer are
having insurance policy out of which 87.5% of the customer are
planning for new investments. So it can be a good potential for the
company and they should make an attempt to trap these customers.
43% of the customer is even ready to go for insurance if a service
provider away from their home is providing it. But intend they
should provide good products and services. The company should
try to convince these customers and get them in its favor.

 The recruitment of advisors should be quality wise instead of

quantity wise.
 There should be flexible working hours to avoid
dissatisfaction among employees.
 Insurance Claim should be setteled on time.
 The RLIC should start various training programmes on the
regular basis so that employees can able to solve the queries
of customers.

CONCLUSION

An exhaustive research in the field of Life Insurance threw up some

intresting trends which can be seen in the above analysis. A general
impression that i 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 its impact
now. Another heartening trend was in terms of people viewing insurance
as a tax saving and investment instrument as much as a protective one. A
very high number of respondents have opted for insurance for such
purposes and it shows how insurance companies have been successful to
attract public money in recent times.

In today’s corporate and competitive world, I find that insurance sector

has the maximum growth and potential as compared to the other sectors.
Insurance has the maximum growth rate of 70-80% while as FMCG
sector has maximum 12-15% of growth rate. This growth potential
attracts me to enter in this sector and RELIANCE LIFE INSURANCE
has given me the opportunity to work and get experience in highly
competitive and enhancing sector.

The success story of good market share of different market organizations

depends upon the availability of the product and services near to the
customer, which can be distributed through a distribution channel. In
Insurance sector, distribution channel includes only agents or agency
holders of the company. If a company like RELIANCE LIFE
INSURANCE, TATA AIG, and MAX etc have adequate agents in the
market they can capture big market as compared to the other companies

BIBLIOGRAPHY

1) BOOKS/MAGAZINES REFFERED:

 STUDY GUIDE- PRINCILES & PRACTICES OF LIFE/

GENERALINSURANCE, by AIMA.

 Books published by INSURANCE INSTITUTE OF INDIA

 LIFE-INSURANCE, by Mc GILL

 INSURANCEWATCH.

 MONEYOUTLOOK.

2) WEBSITES REFFERED:

 WWW.RELIANCELIFE.CO.IN
  WWW.INSURANCE.IND.COM3.REPORTS/ARTICLES

ANNEXURE

QUESTIONNAIRE

Dear Sir/Madam
I am a student of Banasthali UNIVERSITY. I am undertaking
a survey as a part of my Management Training course.

1. ARE YOU EMPLOYED?

YES/NO If YES, only then proceed

2. HOW MUCH IS YOUR EARNING FOR THE MONTH ?

a. Below 10000
b. 10000-20000
c. Above 20000
3. DO YOU HAVE ANY INSURANCE POLICY?
YES/NO

4. HOW MUCH IS YOUR SAVING FOR THE MONTH ?

a. Below 2000
b. 2000-4000
c. 4000-6000
d. Above 6000

5. YOUR SAVING IS IN WHICH MEDIUM ?

a. Government Scheme (Post Office)
b. Saving in Bank
c. Insurance
d. Others / money market

6. WHICH INSURANCE POLICY DO YOU HAVE?

LIFENON-LIFEBOTH

7. WHICH CO’S INSURANCE POLICY YOU PREFER THE

MOST? (RANK THEM)
a. LIC
b. ICICIPRUDENTIAL
c. SBI LIFE INSURANCE
d. ING VYSYA LIFE
e. RELIANCE LIFE INSURANCE
f. TATA AIG LIFE
g. ANY OTHER________( Specify)

8. FOR HOW MANY YEARS DO YOU HAVE INSURANCE

POLICY? (Please Tick)
a. <5Yrs
b. 5-10 Yrs
c. 10-15 Yrs
d. Any Other______ (Specify)

9. WHAT DO YOU THINK ARE THE BENEFITS OF

INSURANCE COVER? (RANK THEM)
a. COVER FUTURE UNCERTAINITY
b. TAX DEDUCTIONS
c. FUTURE INVESTMENT
d. ANY OTHER_________(Specify)
Thank you for investing your valuable time in giving us your
inputs.
___________________________________________________
____

Please give us the following details

Name :
Phone / Mobile Number :

Calculation Sheet
 Reliance life insurance co. ltd.

A Benefit Illustration of market return plan

Term= 20

Return= 30.0%

To
p Death
Year Age Premium Withdrawals CHGS Mortality Year End growth
Up Benefit
s

1 30 5,000 100,000 500 159 5,643

2 31 5,000 100,000 250 150 13,316

3 32 5,000 100,000 250 137 23,308

4 33 100,000 0 131 30,130

5 34 100,000 0 124 39,008

6 35 100,000 0 112 50,564

7 36 100,000 0 96 65,609

8 37 100,000 0 71 85,200

9 38 100,000 0 32 110,718

10 39 100,000 0 0 143,933

11 40 100,000 0 0 187,113

12 41 100,000 0 0 243,247

13 42 100,000 0 0 316,221

14 43 100,000 0 0 411,087

15 44 100,000 0 0 534,413

16 45 100,000 0 0 694,738

17 46 100,000 0 0 903,159

18 47 100,000 0 0 1,174,106

19 48 100,000 0 0 1,526,338

20 49 100,000 0 0 1,984,240