A

PROJECT REPORT

ON

“A STUDY ON AWARENESS TOWARDS LIFE

INSURANCE POLICY "

Submitted to

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

In the partial fulfillment
Of the award of the degree of
BBA (Bachelor of Business Administration)

PROJECT GUIDE: SUBMITTED BY:

………………………. SIDDARTH KUMAR
BBA-5TH SEM

1
 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 premium, 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.

2
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.

3
 ACKNOWLEDGEMENT

I would like to thank ………., for supporting me during this

project and providing me an opportunity to learn outside the class
room. It was a truly wonderful learning experience.

I would like to dedicate this project to my parents. Without their

help and constant support this project would not have been
possible.

Lastly I would like to thank all the respondents who offered their
opinions and suggestions through the survey that was conducted by
me.

Once again my gratitude to the Life insurance Policy. For their

kind co-operation.

4
 DECLARATION

I Siddarth Kumar OF BBA III year of “MAHARAJA SURAJMAL

INSTITUTE” hereby declare that the summer training report
entitled in “LIFE INSURACNE POLICY” is an original word and
the same has not been submitted to any other institute for the
award of any other degree.

Signature of candidate

SIDDARTH KUMAR

5
 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 LIFE

INSURANCE POLICY 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 LIFE INSURANCE

POLICY, have adequate agents in the market they can

capture big market as compared to the other companies.

6
 CHAPTER I

INDIAN INSURANCE

INDUSTRY

“AN OVERVIEW”

7
THE INSURANCE INDUSTRY IN INDIA

AN OVERVIEW

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.

8
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.

9
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).

10
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.

11
INDUSTRY REFORMS

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. Since being set up as an
independent statutory body the IRDA has put in a framework of
globally compatible regulations.

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 IRDA online service for issue and
renewal of licenses to agents. The approval of institutions for
imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in
place to sell their products.

12
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

13
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.

14
 CHAPTER II

PROFILE OF
ORGANIGATION

15
 INTRODUCTION TO THE COMPANY

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.

16
• 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.

• 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

17
one of great stories of mutual respect and reciprocal gain in the

Indian markets.

• Under Dhirubhai’s extraordinary vision and leadership,

Reliance scripted one of the greatest growth stories in corporate

history anywhere in the world, and went on to become India’s

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 world’s largest

shareholder families.

18
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.

19
 • Reliance Life Insurance is another step forward for Reliance

Capital Limited to offer need based Life Insurance solutions to

individuals and Corporates.

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.

20
CORPORATE MISSION

• “To set the standard in helping our customers manage their

financial future”.

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)

21
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)

Reliance EDLI Scheme

(formerly EDLI Scheme)

12. Pensions
a. Reliance Group Gratuity Policy
(formerly Group Gratuity Policy)
b. Reliance Group Superannuation Policy
(formerly Group Superannuation Policy)

22
 13. Reliance Money Guarantee Plan

Tax Benefits

INCOME GROSS HOW MUCH HDFC

TAX ANNUAL TAX CAN STANDARD
SECTION SALARY YOU SAVE? LIFE PLANS
Sec. 80C Across All Upto Rs. All the life
income Slabs 33,990 saved insurance plans.
on investment
of
Rs. 1,00,000.
Sec. 80 CCC Across all Upto Rs. All the pension
income slabs. 33,990 saved plans.
on Investment
of
Rs.1,00,000.
Sec. 80 D Across all Upto Rs. 3,399 All the health
income slabs saved on insurance riders
Investment of available with the
Rs. 10,000. conventional

23
 plans.

TOTAL
Rs37,389
SAVINGS
Rs. 33,990 under Sec. 80C and under Sec. 80 CCC ,
POSSIBLE Rs.3,399 under Sec. 80 D, calculated for a male
with gross annual income
exceeding Rs. 10,00,000.

Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are
completely tax-free, subject to the conditions laid
down therein.

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

24
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.

In 1995-96, LIC had a total income from premium and investments

of $ 5 Billion while GIC recorded a net premium of $ 1.3 Billion.

During the last 15 years, LIC's income grew at a healthy average of

25
10 per cent as against the industry's 6.7 per cent growth in the rest

of Asia (3.4 per cent in Europe, 1.4 per cent in the US).

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

26
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

27
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

28
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.

29
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.

4. Om 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.

30
  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.

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

31
holds 74% and the remaining 26% is held by Allianz, AG,

Germany.

2. 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.

Lombard Canada Ltd, a group company of Fairfax Financial

Holdings Limited, is one of Canada's oldest property and casualty

insurers. ICICI Lombard General Insurance Company received

regulatory approvals to commence general insurance business in

August 2001.

32
3. 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.

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.

2.3 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

33
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
Option to package with Accidental Death and Total and
Permanent Disablement Rider, Critical Conditions Rider
and Term Life Insurance Benefit Rider.

(2)Reliance Health + Wealth Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE

INVESTMENT PORTFOLIO IS BORNE BY THE
POLICYHOLDER.

34
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
Flexibility to switch between funds / plan options
Option to pay Top-ups
(3) Reliance Pension Policy

35
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

36
(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

37
 CHAPTER III

OBJECTIVES OF STUDY

38
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 Kotak Life
Insurance and customer’s preference about Kotak 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.
 Training aims at recruiting maximum number of Life
Advisors and to Sell the maximum policies for the
company and bring the business for the company which
ever is going at the particular point of time.
 As the Kotak Life Insurance well reputed company in
India it’s great chance for me to observed different
products launch by other competitor companies like
ICICI prudential, Bajaj alliance ,LIC, Max New York
life etc. In all, it is to understand the overall working of
the Life insurance sector.
 The objective behind the project is as follows:
 To find the right candidate.

39
 To about their family background, occupation, social
relation, Qualification, Age.

40
 CHAPTER IV

RESEARCH

METHODOLOGY

41
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.

42
 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

43
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.

44
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 judemental and convinent

45
Sampling Unit:

The respondants who were asked to fill out questionnaires are the

sampling units. These comprise of employees, Govt. Employees,

Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of

mainly peoples from different regions of Bareilly due to time

constraints.

Sampling Area :

The area of the research was Bareilly, India.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Bareilly and

does not necessarily shows a pattern applicable to all of

Country.

46
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.

47
 CHAPTER V

RESULT ANALYSIS

&

INTERPRETATION

48
DATA ANALYSIS & INTERPRETATION

 DATA GIVES PREFERENCE OF

RESPONDENTS OF INSURANCE COMPANIES
NO.OF
COMPANY’S NAME RESPONDEN SHARE (%)
T
L.I.C. 78 78
RELIANCE LIFE
3 3
INSURANCE
ICICI
10 10
PRUDENTIAL
SBI LIFE 7 7
HDFC 2 2
TOTAL 100 100

7 2

10
LIC
3 REL
ICICI
SBI
HDFC

78

49
INTERPRETATION

 78% of the people contacted prefer LIC policy to any other

and therefore it is ranked no.1 by that percent of respondents.

 DATA GIVES BENEFITS OF INSURANCE

PERCEIVED BY RESPONDENTS

NO.OF
BENEFITS RESPONDEN SHARE (%)
TS
Cover Future
55 55
Uncertainty
Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100

25%
Cover Future
Uncertainty
Tax Deductions
55%
Future Investment
20%

50
INTERPRETATION

 55% of the respondents believe that covering future

uncertainty is the biggest benefit of an insurance policy.

 Whereas, 20% and 25% of them believe that the other

benefits are Tax deduction and future investments

respectively.

 DATA PROVIDES FEATURES OF INSURANCE

POLICY THAT ATTRACTED RESPONDENTS

FEATURE NO.OF SHARE

RESPONDEN (%)
TS
Money Back Guarantee 15 15
Larger Risk Coverance 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Company’s Reputation 11 11
TOTAL 100 100

51
 FEATURES OF INSURANCE POLICY

MONEY BACK
GUAARENTEE
11% 15% LARGER RISK
COVERANCE
EASY ACCESS TO
AGENTS
30%
LOW PREMIUM
37%
7%
REPUTATION OF
COMPANY

INTERPRETATION

 Majority of the respondent (37%) found Larger risk

coverance as the most attracted feature of the all.

52
 DATA PROVIDES NUMBER OF INSURANCE
POLICY TYPE RESPONDENTS

POLICY TYPE NO. OF SHARE (%)

RESPONDENT
S
LIFE POLICY 75 75
NON LIFE 25 25
POLICY
BOTH 45 45

NATURE OF POLICY

45

LIFE
POLICY
NON LIFE
75
POLICY
BOTH

25

53
INTERPRETATION

 75% of the respondents have Life Insurance Policy while

45% have both. (The % is calculated out of 280 positive

response)

54
  DATA GIVES PEOPLE PERCEPTION ABOUT
INSURANCE

RESPONSE NO. OF SHARE

RESPONDENT (%)
S
A saving tool 81 81%
A tax saving device 74 74%
A tool to protect your 100 100%
family

81
100

SAVING
TOOL

TAX SAVING
TOOL

74 FAMILY
PROTECTIO
N

INTERPRETATION

• 81% of the respondents have perception of Insurance

being a saving tool.

55
 • And 74% of the respondents have perception of Insurance

being a tax saving device.

• But 100% of the respondents are with the view that

Insurance is a tool to protect your family.

 DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF SHARE

RESPONDEN (%)
TS
Yes 70 70%
No 30 30%
Total 100 100%

56
 30%

70%

Yes
No

INTERPRETATION

• Of the sample size of 400 surveyed respondents 70% of

the respondents are having Insurance policy.

• 30% of the respondents are either not having any

Insurance policy at present or their policy is already matured.

• And at present 100% of the respondents are with the view

that Insurance is a tool to protect your family.

 DATA SHOWS BUYING PROCESS OF THE

PEOPLE

57
 BUYING PROCESS NO. OF SHARE
RESPONDEN (%)
TS
Customer approached 45 45%
Insurance
company/Agent
Company/agent 55 555
approached customer
Total 100 100%

55%
45%

Customer approached Insurance company/Agent

Company/agent approached customer

INTERPRETATION

• 44.5% of the respondents approached the Insurance

Company / Agent.

58
 • Whereas, 55.5% of the respondents were approached by

the Company /Agent.

 DATA SHOWS REASONS BEHIND FOR

INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENT
S
Tax saving 80 80%
Saving / Investment 80 80.%
Family protection 100 100%

80

100

80
Slice 1 Slice 2 Slice 3

INTERPRETATION

59
• 80.71% of the Respondents opted for Insurance for tax

saving benefits.

• 80.71% of the Respondents opted for saving /

Investments.

• But all of them, i.e. 100% of the respondents have opted

for insurance for their family protection.

60
  DATA SHOWS SATISFACTION OF
RESPONDENTS WITH RESPECT TO POLICY
RESPONSE NO. OF SHARE (%)
RESPONDEN
TS
Satisfied 60 60%
Not satisfied 40 40%
Not Responded 0 0.0%
Total 100 100%

0%

40%

60%

Satisfied Not satisfied Not Responded

INTERPRETATION

• 60% of the respondents are more or less satisfied with

their existing policy.

61
• 40% of the respondents are not satisfied with their

existing policy.

• In this case all of those who have taken a policy have

responded.

62
  DATA SHOWS SATISFACTION OF
+RESPONDENTS WITH RESPECT TO SERVICE
AGENT

RESPONSE NO. OF SHARE

RESPONDEN (%)
TS
Satisfied 45 45%
Not satisfied 55 55%
Not Responded 0 0.0%
Total 100 100%

45.00%
55.00%

Satisfied Not satisfied

INTERPRETATION

63
• 45% of the respondents are satisfied with their existing

service agent.

• 55% of the respondents are not satisfied with their

existing insurance agent.

• All of those who have taken a policy have responded.

64
  DATA SHOWS NUMBER OF RESPONDENTS
PAYING TAX

RESPONSE NO. OF SHARE

RESPONDENTS (%)
Paying tax 100 100%
Not paying tax - 0%
Total 100 100%

0%

100%

Paying tax Not paying tax

INTERPRETATION

• Of the sample size of 400 respondents, all the respondents

are paying tax.

65
  DATA SHOWS RESPONDENT’S INVESTMENTS
FOR TAX SAVING

INVESTMENTS NO. OF SHARE (%)

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

21
51

25

33
32
LIC NSC BOND PPF PF EPF

INTERPRETATION

66
 • 51% of the respondents save their tax by investing in LIC,

which is the highest among all Investment. This shows that

most people for getting taxes benefits invest in LIC.

• 33.25% of the respondents do their tax saving by

investing in NSC.

• 32.25% of the respondents to their tax saving by investing

in bonds.

 DATA SHOWS RESPONDENTS PERCEPTION

ABOUT BEST FORM OF INVESTMENT FOR
SECURING THEIR FUTURE

NO. OF SHARE (%)

RESPONDEN
TS
Fixed Assets 75 75%

Bank deposits 11 11%

Jewellery 25 25%
Securities i.e. bonds, MFs 40. 40%

67
 Shares 10 10%
Insurance 70 70%

Fixed Assets
70
75 Bank deposits

Cash &
Jewellery
Securities i.e.
10 bonds, MFs
11 Shares
40 25 Insurance

INTERPRETATION

• 75.25% of the respondents as with the view that Fixed

Assets is the best form of investment for securing their future.

• 70.5% of the respondents are with the perception that

Insurance is the best form of investment for securing their

future, which is one of the highest and this shows that insurance

is an important key for securing your future.

 DATA SHOWS WHAT PEOPLE INTENT TO GAIN

FROM THEIR INVESTMENT

68
 RESPONSE NO. OF SHARE (%)
RESPONDEN
TS
Saving & Returns 100 100%
Security 90 90%
Tax benefits 71. 71.%

71
100

90

Saving & Returns Security Tax benefits

INTERPRETATION

• 100% of the respondents intent to gain saving and returns

from their investment.

69
• 90% of the respondent’s intent to gain security from their

investments.

• Whereas, 71.75% of the respondent’s intent to gain tax

benefits from their investments.

 DATA GIVES PEOPLE’S PERCEPTION ON

APPROPRIATE AGE FOR BUYING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS
After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 60 60%

70
 29%

60.61% 10.10%
0%

After 25 years After 35 years After 45 years Anytime

INTERPRETATION

• 29% of the respondents are with the view that insurance

should be bought after the age of 25 years.

• 10.5% of the respondents are with the view that insurance

should be buyed after the age of 35 years.

• Whereas, 60.5% of the respondents are with the view that

buying of insurance do not have any thing to do with age i.e.

there is no age limitations. It can be purchased any time

according to the need.

71
  DATA SHOWS PEOPLE OPINION ABOUT INDIAN
INSURANCE COMPANIES

RESPONSE NO. OF SHARE (%)

RESPONDENT
S
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
Very good 0 0%

67

10 0
24

33

26 29

Inflexible plans Non user friendly

Unsatisfactory services Non Aggressive
Satisfactory Good
Very good

72
INTERPRETATION

• 67% of the respondents have the opinion that Indian

Insurance Companies have Rigid plans.

• 29.5% feel that Indian Insurance companies are Non-user

friendly.

• 26.5% feel that services of Indian Insurance companies

are Unsatisfactory.

• 35.75% of the respondents are with the view that Indian

Insurance companies are Non-aggressive.

• 24% of the respondents feel that products and services of

Indian Insurance companies is Satisfactory.

• Whereas only 10.25% feel that it is Good enough.

• And according to the data, no single person has felt that it

is very good.

73
 DATA SHOWS WHAT PEOPLE WOULD LOOK
FOR IN AN INSURANCE COMPANY

RESPONSE NO. OF SHARE

RESPONDE (%)
NTS
A trusted name 82 82%
Friendly service & 71 71%
responsiveness
Good plans 81 81%
Accessibility 49 49%

49

82

81

71
A trusted name
Friendly service & responsiveness
Good plans
Accessibility

74
INTERPRETATION

• 82% customers look for a Trusted name in a company for

insurance.

• 81.5% customers look for a good plan in a company for

insurance.

• Friendly service & responsiveness and Accessibility are

also important factors looked by customers in a company.

• DATA SHOWS PEOPLE PLANNING FOR NEW

INVESTMENTS

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Planning 87 87%
Not planning 13 13%
Total 100 100%

75
 13.0%

87.0%

Planning Not planning

INTERPRETATION

• Only 12.5% of the customers contacted are not planning

for new investments presently.

• Whereas, 87.5% of the customers are still planning for

new investments this can be a great potential for Reliance Life

Insurance to take them on their favor.

76
  DATA SHOWS PEOPLE INTERESTED IN GOING
FOR INSURANCE IF A SERVICE PROVIDER AWAY
FROM THE CITY OFFERS BETTER SERVICE &
PRODUCTS

RESPONSE NO. OF SHARE (%)

RESPONDEN
TS
Yes 43 43%
No 44 44%
Uncertain 13 13%
Total 100 100%

13%

43%

44%

Yes No Uncertain

INTERPRETATION

77
The interested customers i.e. 43% are ready to go for insurance
even away from a city if services and products are worthwhile,
which again is a good prospect (potential) for Reliance Life
Insurance to take them on their favor.

78
CHAPTER VI

CONCLUSION

79
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.

80
CHAPTER VII

SUGGESTION

81
Suggestion

• According the survey only 42% people are insured in

Bareilly so reaming other part is potential for insurance
sector.
• 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, also its very help full for insurance
sector so they should take necessary step for capture
this potential.

• Only 42% people having insurance in Bareilly in 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

82
 CHAPTER VIII

QUESTIONNAIRE

83
 QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. 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)

5. FOR HOW MANY YEARS DO YOU HAVE

INSURANCE POLICY? (Please Tick)

84
 a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______
(Specify)

6. 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)

7. WHICH FEATURE OF YOUR POLICY ATTRACTED

YOU TO BUY IT?
(RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

8. YOUR MONTHLY INCOME?

85
 a)<4k b)4k-8k c)8k-12k d)12k-16k
e)Other_____(Specify)

9. DO YOU REALLY THINK INSURANCE POLICY

COVER IN TODAY’S SCENARIO IS NOT
ESSENTIAL?

_________________________________________________
____

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

11. HOW HAS/WOULD YOU BOUGHT/BUY AN

INSURANCE?

a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER

12. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

86
13. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

14 DO YOU PAY TAXES?

YES NO

15. WHERE HAVE YOU INVESTED FOR TAX SAVING?

(RANK THEM)

a) LIC

b) NSC

c) BONDS

d) PPF

e) PF

f) EPF

87
16.WHICH IS THE BEST FORM OF INVESTMENTS?
(RANK THEM)

a) FIXED ASSETS

b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, i.e. Bonds, MFs

e) SHARES

f) INSURANCE

88
 17. WHAT DO YOU INTENT TO GAIN FROM
INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENIFITS

18. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs

b) AFTER 35 Yrs

c) AFTER 45 Yrs

d) ANYTIME

19.HOW WOULD YOU RATE INDIAN INSURANCE

COs?

a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

e) SATISFACTORY

f) GOOD

89
g) VERY GOOD

90
20. ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

21. WOULD YOU GO FOR INSURANCE IF A SERVICE

PROVIDER AWAY FROM THE CITY OFFERS BETTER
SERVICE & PRODUCTS?

a) YES

b) NO

c) UNCERTAIN

THANK YOU

NAME:_________________________

ADDRESS:______________________
______________________________
OCCUPATION:___________________

91
 CHAPTER IX

BIBLIOGRAPHY

92
 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.
CIFAINSURANCE.COM

 WWW.
MONEYOUTLOOK.COM

 WWW.
INSURANCE.IND.COM

3. REPORTS/ARTICLES REFFERED:

93
REPORT: ISSUES & CHALLENGES FACING THE
INSURANCE INDUSTRY…. Dec2005.

BRIEF PROFILE OF LIC, INDIA…Dec 2006.

94