Contact for more project 09413991847 SUMMER TRAINING PROJECT REPORT ON
“RELIANCE LIFE INSURANCE" Submitted to
RAJASTHAN UNIVERSITY UNI VERSITY,, Jaipur Jai pur In the partial fulfillment Of the award of the degree of BBA (Bachelor of Business Administration)
Project guide:Ms. Mridula Mudgal Sr. Lecturer
Submitted by:Gauarv Khandelwal BBA Part III
Alwar Managemant Studies North extension road Alwar Alwar 1
IET Groups of institutions 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 this insu insura ranc nce e sect sector or whic which h is extr extrem emel ely y esse essent ntia iall for 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 and some some re rest stri rict ctiv ive e clau clause ses s as re rega gard rds s to the the fore foreig ign n participation were included the IRDA has opened the doors for the private entry into insurance. 2
Whet Whethe herr the the insu insurrer is old old or new, new, priv privat ate e or publ public ic,, expanding the market will present multitude of challenges and and oppo opport rtun unit itie ies. s. But But the the key issu issues es,, poss possib ible le tren trends ds,, opport opportuni unitie ties s and challe challenge nges s that that insura insurance nce sector sector will 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 procedures hampers nationalized insurers. Therefore, 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. 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. Startup costs-such as those of setting up a conventional con ventional 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, Therefore, private insurers would be best served by a middle-market middle-market approach, targeting customer segments that are currently untapped
3
ACKNOWLEDGEMENT I would like to thank my project guide Mr. Nitin Kataria , Sale Sales s Deve Develo lopm pmen entt Ma Mana nage gerr RELI RELIANC ANCE E Life Life Insu Insura ranc nce, e, Alwar for guiding me through my summer internship and research project. His encouragement, time and effort are greatly appreciated. appreciated. I would like to thank Prof. Deepak Mishra, for supporting me during this project and providing me an opportunity to lear learn n outs outsid ide e the the clas class s room. oom. It was was a trul truly y wond wonder erfu full 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 their opinio opinions ns and sugges suggestio tions ns throu through gh the survey survey that that was conducted by me in Alwar. Once
again
my
gratitude
to
the
insurance . For their kind co-operation.
4
RELI RE LIAN ANCE CE
Life Life
DECLARATION I
VIKAS
KHANDELWAL
OF
BBA
III
year
of
“Lords
inter internat nation ional al Colleg College” e” hereby hereby decla declare re that that the summer summer training report entitled “INSURANCE SECTOR” IN RELIANCE LIFE INSURACNE 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
5
Gaurav Khandelwal
EXECUTIVE SUMMARY In toda today’ y’s s corp corpor orat ate e and and comp compet etit itiv ive e worl world, d, I find find that that insurance sector has the maximum growth and potential as comp compar ared ed to the the othe otherr sect sector ors. s. Insu Insura ranc nce e has has the the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attr attrac acts ts me to ente enterr in this this sect sector or and and RELI RELIAN ANCE CE LIFE 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 Insurance sector, sector, distribut distribution ion channel channel includes includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG,
6
MAX etc have adequate agents in the market they can can capt captur ure e big big mark market et as comp compar ared ed to the the othe otherr 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.
7
CHAPTER I
INDIAN INSURANCE INDUSTRY “AN OVERVIEW”
8
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. GDP. Even so nearly 65% of the Indian population is without life insura ran nce
cover
while
hea eallth
insu nsura ran nce
and
nonon-life
insurance continues to be below international standards. A large part of our population is also subject to weak social sec securi urity and pens pensio ion n syst ystems ems with with har hardly dly any any old old age 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. 9
HISTORICAL PERSPECTIVE 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 Indi Indian an live lives s were were cons consid ider ered ed more more risk risky y to cove coverr. The The Bombay Mutual Life Insurance Society started its business in 1870 1870.. It was was the the firs firstt comp compan any y to char charge ge the the same same premium for both Indian and non-Indian n on-Indian lives. The Oriental Assurance Company was established in 1880. The The Gene Genera rall insu insura ranc nce e busi busine ness ss in Indi India, a, on the the othe otherr hand hand,, can can trac trace e its its roots oots to Trito riton n Insu Insura ranc nce e Co Comp mpan any y Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of the the nine ninete teen enth th cent centur ury y insu insura ranc nce e busi busine ness ss was was almo almost st entirely in the hands of overseas companies. Insu Insura ranc nce e re regu gula lati tion on form formal ally ly bega began n in Indi India a with with the 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.
10
The The first first compr comprehe ehensi nsive ve legisl legislati ation on was intro introduc duced ed with with the Insurance Act of 1938 that provided strict State Control over the insurance business. The insurance business grew at a faster faster pace pace after after indepe independe ndence nce.. Indian Indian compan companies ies 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 nati nation onal aliz ized ed mono monopo poly ly corp corpor orat atio ion n and and Life Life Insu Insura ranc nce e 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 Gove Govern rnme ment nt's 's chos chosen en path path of Stat State e led led plan planni ning ng and and development. The non-life insurance business continued to thrive with the
privat vate
sector
till
1972.
Their
operations
were
restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With With this this,, near nearly ly 107 107 insu insure rers rs were were amal amalga gama mate ted d and and grouped Comp Co mpan any, y,
into New Ne w
four India dia
companiesAss Assura urance nce
National Comp Co mpa any, ny,
Insurance Oriienta Or entall
Insurance Company and United India Insurance Company.
11
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. The Indi Indian an Insu Insura ranc nce e Co Comp mpan anie ies s Act enac enacte ted d to 1928: The enabl enable e the the gover governm nmen entt to coll collec ectt stat statis isti tica call info inform rmat atio ion n 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.
12
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 regul re gulati ations ons and re regis gister tering ing the privat private e sector sector insur insuranc ance e companies.
Since
being
set up
as
an
independent
statutory body the IRDA has put in a framework of globally compatible regulations. regulations. The The other other decisi decision on taken taken simult simultane aneous ously ly to provi provide de 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
13
woul would d have have a trai traine ned d work workfo forc rce e of insu insura ranc nce e agen agents ts in place to sell their products.
PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA
The The life life insura insurance nce industr industry y in India India grew grew by an impres impressiv sive e 47.38% 47.38%,, with with premi premium um income income at Rs. 1560.4 1560.41 1 billio billion n during during the fiscal fiscal year year 2006-2 2006-2007 007.. 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 8.7 bill billio ion n have have pour poured ed into into the the Indi Indian an mark market et and and 19 priv privat ate e life life insurance companies have been granted licenses.
14
Innovati Innovative ve product products, s, smart smart marke marketin ting, g, and aggres aggressiv sive e distri distributi bution on have 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. (www.wikipedia.com) (www.wikipedia.com)
CHAPTER II
15
PROFILE OF ORGANIGATION
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 Relianc eliance, e, Sh. Dhirub Dhirubhai hai H Ambani Ambani.. Fewer ewer still still have have left left behind a legacy that is more enduring and timeless. •
As with ith all all gre great pion pionee eerrs, ther here is mor more tha than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the 16
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’ India’s s great greatest est wealth wealth creat creator or.. In one lifeti lifetime, me, 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 conv conver erte ted d this this fled fledgl glin ing g ente enterp rpri rise se into into a Rs 60,0 60,000 00 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so.
•
Dhir Dhirub ubha haii is wide widely ly regar egarde ded d as the the fath father er of Indi India’ a’s s capital
markets.
In
1977,
when
Reliance
Textile
Indu Indust stri ries es Limi Limite ted d firs firstt went went publ public ic,, the the Indi Indian an stoc stock k market was a place patronised by a small club of elite investors which dabbled in a handful of stocks.
17
•
Unda Undaun unte ted, d, Dhir Dhirub ubha haii mana manage ged d to conv convin ince ce a larg large e number of first-time retail investors to participate in the unfo unfold ldin ing g Relia elianc nce e stor story y and and put put thei theirr hard hard-e -ear arne ned d money in the Reliance Textile IPO, promising them, in exch exchan ange ge for for thei theirr trus trust, t, subs substa tant ntia iall re retu turn rn on thei theirr inve invest stme ment nts. s. It was was to be the the star startt of one one of grea greatt stor storie ies s of mutu mutual al re resp spec ectt and and re reci cipr proc ocal al gain gain in the 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.
•
Thro Through ugh out out this this amazin amazing g journ journey, ey, Dhiru Dhirubha bhaii always 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 and crea creati ting ng one one of the the worl world’ d’s s larg larges estt shar shareh ehol olde derr 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 45IA of the Reserve Bank of India Act, 1934. Relian eliance ce Capita Capitall sees sees immens immense e poten potentia tiall in the rapid rapidly ly grow growing ing 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.
19
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 produ product ctss and and servic services es throu through gh our well-t well-trai raine ned d advis advisors ors,, backe backed d by competent marketing and customer services, in the best possible way. •
It is our our aim aim to beco become me one one of the the top top priv privat atee life life insu insura ranc ncee companies in India and to become become a cornerstone cornerstone of RLI integrated financial services business in India.
20
CORPORATE CORPORATE MISSION MI SSION •
“To set the standard in helping our customers manage their financial future”.
BELOW ARE FEW OF THE PLANS THAT THAT ARE OFFERED BY RELIANCE LIFE INSURANCE INSURANCE PLANS AVAILABLE
1. Produc Products ts (Indiv (Individu idual al Plans) 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 Yuva Shree) Sh ree)
6.
Reliance Whole Life Plan (formerly Nithya Shree)
Pensions
21
7.
Reliance Golden Years Plan (formerly Bhagya Shree)
Investments 8.
Reliance Market Return Plan (formerly Kanaka Shree)
9. Risk Risk / Prot Protec ecti tion on 10. Reliance Term Plan
(formerly Raksha Shree) Products (Group / Corporate Plans) 11. Risk
(Protect (Pro tection ion )
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)
13.Reliance Money Guarantee Plan
22
Tax Benefits B enefits INCOME
TAX GROSS ANNUAL HOW
SECTION
SALARY
TAX
MUCH HDFC HDFC CAN CAN
STAN STANDA DARD RD
YOU LIFE PLANS
SAVE?
Sec. 80C
Across All income
Upto Upto Rs. 33,9 33,990 90 All the life insurance
Slabs
saved
on plans.
inve invest stme ment nt
of
Rs. 1,00,000. Sec. 80 CCC
Across all income
Upto Upto Rs. 33,9 33,990 90 All the pension plans.
slabs.
saved
on
Investment
of
Rs.1,00,000. Sec. 80 D
Across all income
Upto Upto Rs. Rs.
slabs
saved Inve Invest stme ment nt Rs. 10,000.
TOT TOTAL
SAVIN SAVINGS GS
3,3 3,399 All
the
health
on insurance of
avai availlabl able
riders with with
the the
conventional plans. Rs37,389
POSSIBLE Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000.
Sec. Sec. 10 (10) (10)D D
Unde Underr Sec. Sec. 10(1 10(10D 0D), ), the the ben benef efit its s you you rec recei eive ve are are comp comple lete tely ly tax-free, subject to the conditions laid down dow n therein.
23
2.2 OTHER COMPETITIORS MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA
•
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) was established on 1 Sep Septemb tember er 1956 1956 to spr sprea ead d the the mes message age of life ife insurance in the country and mobilise people’s savings for nati nation on-b -bui uild ldin ing g acti activi viti ties es.. LIC LIC with with its its cent centra rall offi office ce in Mumb Mumbai ai and and seve seven n zona zonall offi office ces s at Mumb Mumbai ai,, Ca Calc lcut utta ta,, 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 offi offic ces in Fiji, iji, Maur auritiu itius s and and Unite nited d King Kingdo dom. m. LIC is asso associ ciat ated ed with with join jointt vent ventur ures es abr abroad oad in the the fiel field d of insurance, namely, Ken-India Assurance Company Limited, 24
Nair Na irob obi; i; Unit United ed Or Orie ient ntal al Assu Assura ranc nce e Co Comp mpan any y Limi Limite ted, d, 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 1995-9 -96, 6, LIC LIC had had a tota totall inco income me from from prem premiu ium m and and inve inves stmen tments ts of $ 5 Bill Billiion whil while e GIC recor corded ded a net net premium of $ 1.3 Billion. During the last 15 years, LIC's inc income ome grew at a hea eallthy thy aver verage age of 10 per cent ent 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 LIC has has even even prov provid ided ed insu insura ranc nce e cove coverr to five five mill millio ion n peop people le livi living ng belo below w the the pove povert rty y line line,, with with 50 per per cent 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) 25
The The gene genera rall insu insura ranc nce e indu indust stry ry in Indi India a was was nati nation onal aliz ized ed and and a government government company known as General Insurance Corporation of India (GIC) was formed by the Central Government in November 1972. With effe effect ct from from 1 Janu Januar ary y 1973 1973 the the erst erstwh whil ile e 107 107 Indi Indian an and and for foreign eign insurers which were operating in the country prior to nationalization, were were group grouped ed into into four four opera operatin ting g comp compani anies, es, namely namely,, (i) Na Natio tional nal Insu Insura ranc nce e Co Comp mpan any y Limi Limite ted; d; (ii) (ii) Ne New w Indi India a Assu Assura ranc nce e Co Comp mpan any y Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insura Insurance nce Co Compa mpany ny Limite Limited. d. (Howev (However, er, with with effect effect from from Dec'2 Dec'2000 000,, these subsidiaries have been de-linked from the parent company and made made as inde indepe pend nden entt insu insura ranc nce e comp compan anie ies) s).. All All the the abov above e four four subsidiaries of GIC operate all over the country competing with one anot anothe herr and and unde underw rwri riti ting ng vari variou ous s clas classe ses s of gene genera rall insu insura ranc nce e business business except except for aviatio aviation n insurance insurance of national national airlines 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
TH E
FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO INSURANCE INSURANCE BUSINESS: -
26
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 comp compet etit itiv ivee and and have have give given n imme immens nsee comp compet etit itio ion n to the the on time 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 upco upcomi ming ng natu nature ress of thes thesee priv privat atee play player erss are are enou enough gh to give give more 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 grou group p insu insura ranc ncee solu soluti tion ons. s. It is a join jointt vent ventur uree betw betwee een n Hous Housin ing g 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
27
cumula cumulativ tivee premiu premium m income income,, includ including ing the first first year year premiu premiums ms and 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 across India. 3.
ICICI Prudential Life Insurance Company
Ltd. ICICI ICICI Pruden Prudentia tiall Life Life Insura Insurance nce Compan Company y is a joint joint ventu venture re betwee between n ICICI Bank, a premier financial powerhouse and Prudential plc, a leading inte intern rnat atio iona nall fina financ ncia iall serv servic ices es grou group p head headqu quar arte tere red d in the the Unit United ed Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval 28
from from Insu Insura ranc ncee Regu Regula lato tory ry Deve Develo lopm pmen entt Auth Author orit ity y (IRD (IRDA) A).. The 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.
Birl Birla a Sun Sun Life ife Ins Insura urance nce Co Comp mpa any is a join jointt vent ventu ure between Aditya Birla Group and Sun Life financial Services of Canada. Tata
AIG Life Insurance Company Ltd.
SBI Life Insurance Company Limited
29
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.
1. Royal Sundaram Alliance Alliance Insurance Company The joint venture bringing together Royal & Sun Alliance Insu Insura ranc nce e and and Sund Sundar aram am Finan inance ce Limi Limite ted d star starte ted d its its ope opera rattions ions from March 2001. 001. The comp compa any is Head 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
30
Bajaj Bajaj Allian Allianzz Gener General al Insur Insuranc ancee Compa Company ny Limite Limited d is a joint joint ventu venture re 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, 2nd, 2001 2001 to condu conduct ct Gener General al Insur Insuranc ancee busine business ss (inclu (includin ding g Health 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 ICICI Lomba Lombard rd Genera Generall Insura Insurance nce Compan Company y Limite Limited d is a joint venture between ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Financial Holdings Limited. ICICI Bank is Ind India's ia's
seco econd
lar larges gest
bank bank,,
while hile
Fairf irfax
Fina inancia nciall
Holdin Holdings gs is a divers diversifi ified ed financ financial ial corpo corporat rate e engage engaged d in
31
general
insurance,
reinsurance,
insurance
claims
management and investment management. Lombard Canada Ltd, a group company of Fairfax Financial Financial Holdings Limited, is one of Canada's oldest property and casu casual alty ty
insur surer ers. s.
ICICI CICI
Lomba mbard
Gene Genera rall
Insu Insura ranc nce e
Comp Co mpan any y recei eceive ved d re regu gula lato tory ry appr approv oval als s to comm commen ence ce general insurance business in August 2001.
4. Cholamandalam General Insurance Company Ltd. Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of the Murugappa Group & Mitsui Sumitomo.
32
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 Mumbai,, Pune, Pune, Indor Indore, e, Ahmeda Ahmedabad bad,, Delhi, Delhi, Chandi Chandigar garh, h, Kolkata and Vizag. 5. TAT TATA AIG General Insurance I nsurance Company Co mpany Ltd.
Tata Tata AIG General Insurance Company Ltd. is a joint venture comp compan any, y, for formed med from from the the Tata ata Gr Grou oup p and and Amer Americ ican an Inte Intern rnat atio iona nall Gr Grou oup, p, Inc. Inc. (AIG (AIG). ). Tata ata AIG AIG comb combin ines es the the str strength ngth and inte ntegrit grity y of the the Tata Group with AIG AIG's inter internat nation ional al exper expertis tise e and financ financial ial streng strength. th. The The Tata Gro Gr oup holds olds 74 per cent ent stak take in the the two insu nsura ranc nce e ventures while AIG holds the balance 26 per cent stake. T Tata ata AIG Genera Generall Insura Insurance nce Compan Company, y, which which starte started d its operations in India on January 22, 2001, offers the comp comple lette ra rang nge e of insu nsura ranc nce e for auto utomobi mobille, home ome, person personal al accide accident, nt, travel travel,, energ energy, y, marine marine,, prope property rty and casualty, as well as several se veral specialized financial lines. 33
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 Life Insurance brings to you Reliance Secure Child Plan, a unit-linked unit-linked Insurance Plan, that gives you the freedom to enjoy today with your child, because his tomorrow tomorrow is in safe hands.
34
•
•
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 t o 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 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.
35
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 t he 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. 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 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
36
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. Retirement means different things to different people, Retirement 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 t o 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 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 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
37
(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. tomorrow. Key Features Insurance protection till age 85 Choice of extending your insurance coverage till age 99 Convenient Convenien t Premium Payment Term Term Wealth creation through bonus additions More value for your money by way of High Sum Assured Rebate 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
38
CHAPTER III OBJECTIVES OF STUDY
The main of the present study of is accomplish the following objective. 39
Proper per und under erst sta andi nding and analy nalysi sis s of lif life insurance industry.
To To
know know about about brand brand awar awarene eness ss of Kotak otak Life Life
Insu Insura ranc nce e
and and
cust custom omer er’s ’s
pref prefer eren ence ce
abou aboutt
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 To
objective behind the project is as follows:
find the right candidate.
40
To
about their family background, occupation,
social relation, Qualification, Age.
CHAPTER IV RESEARCH METHODOLOGY
41
RESEARCH METHODOLOGY METHODOLOGY TITLE: To dete determ rmin inee cust custom omer er-b -buy uyin ing g beha behavi vior or with with a focu focuss on mark market et segmentation segmentation for Reliance Life Insurance. •
TITLE JUSTIFICATION :
The above title is self explanatory. The study deals mainly with studying the buying buying
pattern pattern in the the insur insurance ance industry industry with a specia speciall focus 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 dete determ rmin inee cust custom omer erss perc percep epti tion on towa toward rdss priv privat atee insu insura ranc ncee companies and their expectation form private insurance companies.
•
To dete determ rmin inee the the feed feedba back ck on serv servic ices es prov provid ided ed by any any othe other r insurance agent.
•
To study the types of benefits provided by insurance services.
•
To dete determ rmin inee the the use use of Inte Intern rnet et for for valu valuab able le info inform rmat atio ion n and 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.
43
SIGNIFICANCE OF THE STUDY
SIGNIFICANCE TO THE INDUSTRY :
This is a limited study which takes into consideration consideration the responses of 100 peo peopl ple. e. This This data data can can be expl explor orat ated ed to take take in the the tren trends ds acro across ss the 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 facili facilitat tatee and provi provide de all the useful useful inform informtai taion on of the the studt, studt, the compan company y, the insura insurance nce indust industry ry and also also provid providee marke marketin ting g ways, ways, methods of reliance life insurance.
RESEARCH DESIGN •
NON-PROBABILITY
44
•
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-stru well-structur ctured ed question questionnair nairee was prepared prepared and persona personall intervie interviews ws were conducted to collect the customer’s perception perception and buying behavior, 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 Questi Questionn onnair aire. e. The final final Questi Question onnai naire re was was arrive arrived d only only after after certai certain n imp importa ortant nt chan change gess were were done done.. Thus Thus my samp sampli ling ng came came out out to be judemental and convinent Sampling Unit:
The The resp respon onda dant ntss who who were were aske asked d to fill fill out out ques questi tion onna nair ires es are are the the sam sampling ling units nits.. The These compris prisee of emplo mploy yees ees of MNCs, Cs, Govt. vt. Employees, Self Employeds etc.
45
Sample size:
The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Delhi due to time constraints. Sampling Area :
The area of the research was New Delhi, 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. quickly. The environmental environmental changes are vital to be considered in order to assimilate the findings.
46
MARKETING STRATREGIES STRATREGIES OF THE COMPANY COMPANY
•
SOME OF THE STRATEGI STRATEGIES ES ADOPTED ADOPTED BY RELIANC RELIANCE E LIFE INSURANCE COMPANY.
Reliance Life Insurance plans to tap Reliance Communications' 2.5-crore telephony subscriber base to market its products.
The company is considering a series of options to leverage its relationship with Reliance Communications.
However, However, a joint product or a co-branded solution would require approval from the Insurance Regulatory and Development Authority
Custom Customers ers of R World, orld, the inform informati ation on and enter entertai tainm nment ent portal portal of Reliance Communications, Communications, would also be able to pay premiums through a bank account, provided the bank is listed on the network.
Reliance Life Insurance officials, however, offered no comment when asked whether there would be an arrangement arrangement for payment of commission to Reliance Communications.
47
As an alternative channel channel for distribution, distribution, insurance companies usually tie up with banks. In the case of banc assurance, where there is a corporate agency tie-up, the commission could range from 5 per cent to 40 per cent of first-year premium depending on the commission loaded on to the product at the time of registration with IRD A.
48
CHAPTER V RESU RESUL LT ANAL ANALYSIS YSIS & INTERPRETATION
49
DATA ANALYSIS & INTERPRETATION
DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES NO.OF RESPONDENT
COMPANY’S COMPANY’S NAME L.I.C.
SHARE (%)
78
78
3
3
10
10
SBI LIFE
7
7
HDFC
2
2
100
100
RELIANCE LIFE INSURANCE ICICI PRUDENTIAL
TOTAL
7
2
10 LIC 3
REL ICICI SBI HDFC 78
INTERPRETATION
78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.
50
DAT DATA
GIV GIVES
BENE ENEFITS ITS
OF
INSU INSUR RANCE
PER PERCEIV CEIVE ED
BY
RESPONDENTS NO.OF RESPONDENTS
BENEFITS
Cover Future Uncertainty Tax Deductions
SHARE (%)
55 20
Future Investment TOTAL
55 20
25
25
100
100
25% Cover Co ver Future Future Uncertainty Tax Deductions 55% Future Investment Investment 20%
INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy.
51
Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.
DAT DATA PROVIDES FEATURES FEATURES OF INSURANCE
POLICY THAT THAT
ATTRACTED RESPONDENTS FEATURE
NO.OF RESPONDENTS
SHARE (%)
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
100
100
TOTAL
FEATURES OF INSURANCE POLICY
MONEY BACK GUAARENTEE
11%
15%
LARGER RISK COVERANCE EASY ACCESS TO AGENTS
30% 37%
LOW PREMIUM
7% REPUTATION OF COMPANY
INTERPRETATION
52
Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.
53
DAT DATA
PRO PROVIDE VIDES S
NUMB NU MBER ER OF INSU INSURA RANC NCE E
POLI POLICY CY TY TYPE PE
RESPONDENTS POLICY TYPE
NO. OF RESPONDENTS
SHARE (%)
LIFE POLICY
75
75
NON LIFE POLICY
25
25
BOTH
45
45
NATURE OF POLICY
45
LIFE
75
POLICY NON LIFE POLICY BOTH
25
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 RESPONDENTS
SHARE (%)
A saving tool
81
81%
A tax saving device
74
74%
100
100%
A tool to protect your family
81 100
SAVING TOOL TAX SAVING TOOL 74
FAMILY
INTERPRETATION •
81% 81% of the respo responde ndents nts have have perc percep eptio tion n of Insura Insurance nce being being a saving tool.
•
And 74% of the respondents have perception of Insurance being a tax saving device.
•
But 100% of the respondents are with the view that Insurance is a tool to protect your family. 55
DATA SHOWS PEOPLES HAVING INSURANCE
30%
70%
Yes No
RESPONSE
NO. OF RESPONDENTS
SHARE (%)
Yes No
70 30
Total
INTERPRETATION
56
30% 100
1
•
Of the the samp sample le size size of 400 400 surv survey eyed ed respo espond nden ents ts 70% 70% of the 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 BUYING PROCESS
NO. OF RESPONDENTS
SHARE (%)
Customer approached Insurance company/Agent
45
45%
Company/agent approached customer
55
555
Total
100
55% 45%
Customer Customer approache d Insurance company/A company/Age ge nt Company Company/agent /agent app roache d customer
57
10
INTERPRETATION •
44.5% of the respondents approached the Insurance Company / Agent.
•
Wher Wherea eas, s, 55.5 55.5% % of the the respo espond nden ents ts wer were appr approa oach ched ed by the the Company /Agent.
58
DATA SHOWS REASONS BEHIND FOR INSURANCE RESPONSE
NO. OF RESPONDENTS
Tax saving
SHARE (%)
80
Saving / Investment Family protection
80%
80
80.%
100
100%
80 100
Slice 1
80
Slice 2
Slice 3
INTERPRETATION •
80.71 80.71% % of the Respond espondent ents s opted opted for Insura Insurance nce for tax saving saving benefits.
•
80.71% of the Respondents opted for saving / Investments.
•
But But all all of them them,, i.e. i.e. 100% 100% of the the respo espond nden ents ts have have opte opted d for for insurance for their family protection. protection.
59
DAT DATA SHOW SHOWS S SATI SATISF SFAC ACTI TION ON RESPECT TO POLICY RESPONSE
OF
RESP RE SPON ONDE DENT NTS S
NO. OF RESPONDENTS
SHARE (%)
Satisfied
60
60%
Not satisfied
40
40%
0
0.0%
Not Responded
WITH WITH
Total
100
0% 40%
60%
Satisfied
Not satisfied
Not Responded Re sponded
INTERPRETATION •
60% 60% of the the respo espond nden ents ts are are mor more or less less sati satisf sfie ied d with with thei theirr existing policy.
•
40% of the respondents are not satisfied with their existing policy.
•
In this case all of those who have taken a policy have responded.
60
DAT DATA
SHOW SHOWS S
SATI SATISF SFAC ACTI TION ON
OF
+RES +R ESPO POND NDEN ENTS TS
WITH WITH
RESPECT TO SERVICE AGENT RESPONSE
NO. OF RESPONDENTS
SHARE (%)
Satisfied
45
45%
Not satisfied
55
55%
0
0.0%
Not Responded Total
100
45.00%
55.00%
Satisfied
Not satisfied
INTERPRETATION •
45% of the respondents are satisfied with their existing service agent.
•
55% 55% of the the respo espond nden ents ts are are not not sati satisfi sfied ed with with thei theirr exis existi ting ng insurance agent.
61
•
All of those who have taken a policy have responded.
62
DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX RESPONSE
NO. OF RESPONDENTS
SHARE (%)
100
100%
-
0%
Paying tax Not paying tax Total
100
0%
100%
Paying Paying tax
Not paying paying tax
INTERPRETATION •
Of the sample size of 400 respondents, all the respondents are paying tax.
63
100
DAT DATA
SHOW SHOWS S
RESP RE SPON ONDE DENT NT’S ’S
INVE INVEST STME MENT NTS S
FOR FO R
TAX
SAVING INVESTMENTS
NO. OF RESPONDENTS
SHARE (%)
LIC
51
51%
NSC
33
33%
Bonds
32
32%
PP F
25
25%
PF
21
21%
E PF
11
11%
21
51
25
33 32
LIC
NSC
BOND
PPF
PF
EPF
INTERPRETATION •
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.
64
•
32.2 32.25% 5% of the the respo espond nden ents ts to thei theirr tax tax savi saving ng by inve invest stin ing g in bonds.
DAT DATA
SHOW SHOWS S
RESP RE SPON ONDE DENT NTS S
PERC PERCEP EPTI TION ON
ABOU ABOUT T
BEST BE ST
FORM OF INVESTMENT FOR SECURING THEIR FUTURE NO. OF RESPONDENTS
SHARE (%)
Fixed Assets
75
75%
Bank deposits
11
11%
Jewellery
25
Securities i.e. bonds, MFs
40.
40%
Shares
10
10%
Insurance
70
70%
Fixed Assets 70
75
10 11 25
40
Bank deposits Cash & Jewellery Securities i.e. bonds, MFs Shares Insurance
INTERPRETATION •
75.25% of the respondents as with the view that Fixed Fixed Assets is the best form of investment for securing their future.
65
25
•
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 key for securing your future. f uture.
DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR INVESTMENT RESPONSE
NO. OF RESPONDENTS
SHARE (%)
Saving & Returns
100
100%
Security
90
90%
Tax benefits
71.
71.%
71 100
90 Saving & Returns
Security
66
Tax be nefits
INTERPRETATION •
100% of the respondents intent to gain saving and returns from their investment.
•
90% 90% of the the respo espond nden ent’ t’s s inte intent nt to gain gain secu securi rity ty from from thei theirr 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 RESPONDENTS
SHARE (%)
After 25 years
29
29%
After 35 years
10
10%
After 45 years
0
0%
Anytime
60
60%
67
29%
60.61%
10.10% 0%
After 25 years
After 35 years
After 45 years
Anyti nytim me
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 age limita limitatio tions. ns. It can be purcha purchased sed any time time accor accordin ding g to the need.
68
DAT DATA SHOWS SHOWS PEOPLE PEOPLE OPINION OPINION ABOUT ABOUT INDIAN INDIAN INSURANCE INSURANCE COMPANIES RESPONSE
NO. OF RESPONDENTS
SHARE (%)
Rigid plans
67
67%
Non user friendly
29
29%
Unsatisfactory services
26
26%
Non Aggressive
35
35%
Satisfactory
24
24%
Good
10
10%
0
0%
Very good
10
0
24
26
29
Inflexible plans Unsatisfactory se rv ice s Satisfactory Very good
Non user friendly Non Aggre ssiv e Good
INTERPRETATION
69
•
67% 67% of the respo responde ndents nts have have the opini opinion on that that India Indian n Insura Insurance nce Companies have Rigid plans.
•
29.5% feel that Indian Insurance companies are Non-user friendly.
•
26.5 26.5% % feel feel that that serv servic ices es of Indi Indian an Insu Insura ranc nce e comp compan anie ies s are 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.
70
DAT DATA SHOWS OWS WHA WHAT PEO PEOPLE PLE WOUL ULD D LOO OOK K FOR IN AN INSURANCE COMPANY RESPONSE
NO. OF RESPONDENT S
SHARE (%)
82
82%
71
71%
Good plans
81
81%
Accessibility
49
49%
A trusted name Friendly service responsiveness
&
49
82
81
71
A trusted name Friendly service & responsive responsive ness Good plans Accessibility
INTERPRETATION •
82% cust custo omers look ook for for a Truste usted d nam name in a company pany for for insurance.
•
81.5% customers look for a good plan in a company for insurance.
71
•
Frien riendl dly y serv servic ice e & respo espons nsiv iven enes ess s and and Acce Access ssib ibil ilit ity y are are also also important factors looked by customers in a company.
•
DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS
RESPONSE
NO. OF RESPONDENTS
SHARE (%)
Planning
87
87%
Not planning
13
13%
Total
100
13.0%
87.0%
Planning
Not planning
INTERPRETATION •
Only 12.5% of the customers contacted are not planning for new investments presently.
72
100%
•
Wher Wherea eas, s, 87.5 87.5% % of the the cust custom omer ers s are are stil stilll plan planni ning ng for for new new inve invest stme ment nts s this this can can be a grea greatt pote potent ntia iall for for Relia elianc nce e Life Life Insurance to take them on their favor.
73
DATA
SHOWS
PEOPLE
INTERESTED
IN
GOING
FOR
INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS RESPONSE
NO. OF RESPONDENTS
SHARE (%)
Yes
43
No
44
44%
Uncertain
13
13%
Total
100
13% 43%
44%
Yes
No
Unce rtain
INTERPRETATION
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.
74
10
CHAPTER VI CONCLUSION
CONCLUSION 75
Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be seen in the above analys analysis. is. A genera generall impre impressi ssion on that that we gather gathered ed during during Data
collection
was
the
immense
awareness
and
knowle knowledge dge among among people people about about variou various s compan companies ies and thei theirr insu insura ranc nce e prod produc ucts ts.. Peo eopl ple e ar are e begi beginn nnin ing g to look 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. now. The general satisfaction levels among public with regards to poli policy cy and and agen agents ts stil stilll requi equirres impr improv ovem emen ent. t. But But therein lays the opportunity for a relative new comer like ING. ING. LIC LIC has has neve neverr been been know known n for for prom prompt pt serv servic ice e or cust custom omer er or orie ient nted ed meth method ods s and and Relia elianc nce e can can buil build d on these factors.
76
CHAPTER VII SUGGESTION
Suggestion 77
•
According the survey only 42% people are insu insurred in Alwa Alwarr so rea eamin ming g othe otherr part 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 Alwar in that 42% there are 82 % people are under ins insure ured and and othe otherr 18% 18% peop people le ar are e full ully insured according to their income so that is also plus point for insurance sector to capture the market
78
CHAPTER VIII QUESTIONNAIRE
QUESTIONNAIRE
79
ARE YOU EMPLOYED EMPLOYED? YES NO
1.
If YES, only then proceed 2.
3.
DO YOU HAVE ANY INSURANCE POLICY ? YES NO WHICH INSURANCE POLICY DO YOU HAVE ?
LIFE 4.
NON-LIFE
BOTH
WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM)
a) LIC b) ICICIPRUDENTIAL ICICIPRUDENTIAL c) SBI LIFE INSURANCE d) ING VYSYA LIFE e) RELIANCE LIFE INSURANCE f) TATA AIG LIFE g) ANY OTHER
5.
________( Specify)
FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY ? (Please Tick)
a) <5Yrs b) 5-10 Yrs Other______
c) 10-15 Yrs d) Any (Specify)
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WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM)
6.
a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS c) FUTURE INVESTMENT d) ANY OTHER
7.
_________ (Specify)
WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM)
a) LOW PREMIUM b) LARGER RISK COVERANCE c) MONEY BACK GUARNTEE d) REPUT RE PUTA ATION OF COMPANY e) EASY ACCESS TO AGENTS f) ANY OTHER 8.
_________ (Specify)
YOUR MONTHLY INCOME?
a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify) 9.
DO YOU REALL ALLY THIN HINK INS INSUR URA ANCE NCE POL POLICY ICY COVER IN TODAY’S SCENARIO IS NOT ESSENTIAL?
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_____________________________________________________ 10.
WHAT’S YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM)
a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE? 11.
a) CUSTOMER APPROCHED INSURANCE COs b) INSURANCE COs APPROCHED CUSTOMER 12.
ARE YOU ARE YOU SATISFIED WITH THE POLICY ?
a) SATISFIED SAVING TOOL b) NOT SATISFIED c) NOT RESPONDING
13.
ARE YOU SATISFIED WITH THE SERVICE AGENT ?
a) SATISFIED SAVING TOOL b) NOT SATISFIED 82
c) NOT RESPONDING 14
DO YOU PAY TAXES?
YES
NO
15. WHERE HAVE HAVE YOU YOU INVESTED INVESTED FOR TAX TAX SAVING? SAVING?
(RANK THEM) a) LIC b) NSC c) BONDS d) PPF e) PF f) EPF 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 83
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WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS? 17.
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 NON-AGGRESSIVE e) SATISFACTORY f) GOOD g) VERY GOOD
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20.
ARE YOU PLANNING FOR NEW INVESTMENTS?
PLANNING
NOT PLANING
WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?
21.
a) YES b) NO c) UNCERTAIN
THANK YOU
NAME:_________________________ ADDRESS:______________________ ______________________________ OCCUPATION: ___________________ ___________________
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CHAPTER IX BIBLIOGRAPHY
BIBLIOGRAPHY
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1.
BOOKS/MAGAZINES REFFERED:
STUDY
GUIDE-
PRINCILES
&
PRACTICES
OF
GENERALINSURANCE, by AIMA.
2.
Books published by INSURANCE INSTITUTE OF INDIA
LIFE-INSURANCE, by Mc GILL
INSURANCEWATCH.
MONEYOUTLOOK.
WEBSITES REFFERED:
WWW.RELIANCELIFE.CO.IN
WWW.CIFAINSURANCE.COM WWW.MONEYOUTLOOK.COM WWW.INSURANCE.IND.COM 3.
REPORTS/ARTICLES REFFERED:
REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY…. INDUSTRY…. Dec2005. BRIEF PROFILE OF LIC, INDIA…Dec 2006. REPORT: COPING WITH COMPETITION…Jan2007
88
LIFE
/
THANK YOU
89