Professional Documents
Culture Documents
At the other end the policy makers had the fears that the
on the back burner and the IRDA saw the day of the light
2
Whether the insurer is old or new, private or public,
insurance sector?
3
ACKNOWLEDGEMENT
4
DECLARATION
I VIKAS KHANDELWAL OF BBA III year of “Lords
international College” hereby declare that the 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 today’s corporate and competitive world, I find that
6
MAX etc have adequate agents in the market they
companies.
7
CHAPTER I
INDIAN INSURANCE
INDUSTRY
“AN OVERVIEW”
8
THE INSURANCE INDUSTRY IN INDIA
AN OVERVIEW
9
HISTORICAL PERSPECTIVE
10
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.
11
These were subsidiaries of the General Insurance
Company (GIC).
KEY MILESTONES
12
INDUSTRY REFORMS
13
would have a trained workforce of insurance agents in
place to sell their products.
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.
14
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. (www.wikipedia.com)
CHAPTER II
15
PROFILE OF
ORGANIGATION
FOUNDER
16
proud patriot, the leader of men, the architect of India’s
17
• Undaunted, Dhirubhai managed to convince a large
Indian markets.
families.
18
ABOUT RELIANCE
ranks among the top 3 private sector financial services and banking
asset management and mutual funds, stock broking, life and general
in financial services.
(NBFC) registered with the Reserve Bank of India under section 45-
and Corporates.
19
CORPORATE OBJECTIVE
every stage, life insurance must offer flexibility and choice to go with that
20
CORPORATE MISSION
• “To set the standard in helping our customers manage their financial
future”.
Savings (Endowment)
Pensions
21
7. Reliance Golden Years Plan
(formerly Bhagya Shree)
Investments
9. Risk / Protection
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
Sec. 80C Across All income Upto Rs. 33,990 All the life insurance
Slabs saved on plans.
investment of
Rs. 1,00,000.
Sec. 80 CCC Across all income Upto Rs. 33,990 All the pension plans.
slabs. saved on
Investment of
Rs.1,00,000.
Sec. 80 D Across all income Upto Rs. 3,399 All the health
slabs saved on insurance riders
Investment of available with the
Rs. 10,000. conventional plans.
TOTAL SAVINGS
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. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely
tax-free, subject to the conditions laid down therein.
23
2.2 OTHER COMPETITIORS
branch offices. LIC has 5.59 lakh active agents spread over
the country.
24
Nairobi; United Oriental Assurance Company Limited,
agreement with the Sun Life (UK) for marketing unit linked
Asia (3.4 per cent in Europe, 1.4 per cent in the US).
growth rate for Life insurance business has been 19.22 per
25
The general insurance industry in India was nationalized and a
effect from 1 January 1973 the erstwhile 107 Indian and foreign
Limited; (iii) Oriental Insurance Company Limited; and (iv) United India
these subsidiaries have been de-linked from the parent company and
subsidiaries of GIC operate all over the country competing with one
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
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
competition to LIC in the near future. LIC market share has decreased
27
cumulative premium income, including the first year premiums and
renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. They
3,40,000 lives have been covered through our group business tie-ups.
Max New York Life Insurance Company Limited is a joint venture that
life insurance. With their various Products and Riders, there are more
Ltd.
Kingdom. ICICI Prudential was amongst the first private sector insurance
28
from Insurance Regulatory Development Authority (IRDA). The
Ltd.
of Canada.
29
ING Vysya Life Insurance Company Private Limited
30
Bajaj Allianz General Insurance Company Limited is a joint venture
capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is
31
general insurance, reinsurance, insurance claims
Mitsui Sumitomo.
32
Chola-MS commenced operations in October 2002 and has
issued more than 1.4 lakh policies in its first calendar year
33
2.3 Reliance Policies
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 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!
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.
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.
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.
37
(4) Reliance Whole life insurance policy
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
38
CHAPTER III
OBJECTIVES OF STUDY
39
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.
40
To about their family background, occupation,
social relation, Qualification, Age.
CHAPTER IV
RESEARCH
METHODOLOGY
41
RESEARCH METHODOLOGY
TITLE:
• TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with studying
terms of Insurance Needs, Age groups , Satisfaction levels etc will also
studied.
OBJECTIVE
Objective One
policy if they have any and reasons for opting for that particular
policies.
42
To know the most preferred policy.
Objective Two
insurance agent.
decision-making process.
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
43
SIGNIFICANCE OF THE STUDY
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.
To facilitate and provide all the useful informtaion of the studt, the
RESEARCH DESIGN
• NON-PROBABILITY
44
• EXPLORATORY & DISCRIPTIVE EXPERIMENTAL
RESEARCH
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
Sampling Unit:
The respondants who were asked to fill out questionnaires are the
45
Sample size:
The sample size was restricted to only 100, which comprised of mainly
Sampling Area :
segment can change very quickly. The environmental changes are vital
46
MARKETING STRATREGIES OF THE COMPANY
to Reliance Communications.
47
As an alternative channel for distribution, insurance companies usually tie
agency tie-up, the commission could range from 5 per cent to 40 per cent
48
CHAPTER V
RESULT ANALYSIS
&
INTERPRETATION
49
DATA ANALYSIS & INTERPRETATION
NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT
L.I.C. 78 78
RELIANCE LIFE
3 3
INSURANCE
ICICI PRUDENTIAL 10 10
SBI LIFE 7 7
HDFC 2 2
TOTAL 100 100
7 2
10
LIC
3 REL
ICICI
SBI
HDFC
78
INTERPRETATION
78% of the people contacted prefer LIC policy to any other and
50
DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY
RESPONDENTS
NO.OF
BENEFITS SHARE (%)
RESPONDENTS
Tax Deductions 20 20
Future Investment 25 25
25%
Cover Future
Uncertainty
Tax Deductions
55%
Future Investment
20%
INTERPRETATION
51
Whereas, 20% and 25% of them believe that the other benefits
MONEY BACK
GUAARENTEE
11% 15% LARGER RISK
COVERANCE
EASY ACCESS TO
AGENTS
30%
LOW PREMIUM
37%
7%
REPUTATION OF
COMPANY
INTERPRETATION
52
Majority of the respondent (37%) found Larger risk coverance
53
DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE
RESPONDENTS
LIFE POLICY 75 75
BOTH 45 45
NATURE OF POLICY
45
LIFE
POLICY
NON LIFE
75
POLICY
BOTH
25
INTERPRETATION
75% of the respondents have Life Insurance Policy while 45% have
54
DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE
81
100
SAVING
TOOL
TAX SAVING
TOOL
74 FAMILY
PROTECTIO
N
INTERPRETATION
saving tool.
• But 100% of the respondents are with the view that Insurance is a
55
DATA SHOWS PEOPLES HAVING INSURANCE
30%
70%
Yes
No
Yes 70 70%
No 30 30%
INTERPRETATION
56
• Of the sample size of 400 surveyed respondents 70% of the
• 30% of the respondents are either not having any Insurance policy
• And at present 100% of the respondents are with the view that
55%
45%
57
INTERPRETATION
Agent.
Company /Agent.
58
DATA SHOWS REASONS BEHIND FOR INSURANCE
80
100
80
Slice 1 Slice 2 Slice 3
INTERPRETATION
benefits.
• But all of them, i.e. 100% of the respondents have opted for
59
DATA SHOWS SATISFACTION OF RESPONDENTS WITH
RESPECT TO POLICY
Satisfied 60 60%
0%
40%
60%
INTERPRETATION
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
DATA SHOWS SATISFACTION OF +RESPONDENTS WITH
RESPECT TO SERVICE AGENT
Satisfied 45 45%
45.00%
55.00%
INTERPRETATION
agent.
insurance agent.
61
• All of those who have taken a policy have responded.
62
DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX
0%
100%
INTERPRETATION
paying tax.
63
DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX
SAVING
11
21
51
25
33
32
LIC NSC BOND PPF PF EPF
INTERPRETATION
the highest among all Investment. This shows that most people for
64
• 32.25% of the respondents to their tax saving by investing in
bonds.
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
65
• 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
Security 90 90%
71
100
90
66
INTERPRETATION
their investment.
investments.
67
29%
60.61% 10.10%
0%
INTERPRETATION
• 29% of the respondents are with the view that insurance should be
• 10.5% of the respondents are with the view that insurance should
• Whereas, 60.5% of the respondents are with the view that buying
need.
68
DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE
COMPANIES
67
10 0
24
33
26 29
INTERPRETATION
69
• 67% of the respondents have the opinion that Indian Insurance
Unsatisfactory.
• 35.75% of the respondents are with the view that Indian Insurance
• And according to the data, no single person has felt that it is very
good.
70
DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN
INSURANCE COMPANY
49
82
81
71
A trusted name
Friendly service & responsiveness
Good plans
Accessibility
INTERPRETATION
insurance.
71
• Friendly service & responsiveness and Accessibility are also
Planning 87 87%
13.0%
87.0%
INTERPRETATION
• Only 12.5% of the customers contacted are not planning for new
investments presently.
72
• Whereas, 87.5% of the customers are still planning for new
73
DATA SHOWS PEOPLE INTERESTED IN GOING FOR
INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY
OFFERS BETTER SERVICE & PRODUCTS
13%
43%
44%
Yes No Uncertain
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
CHAPTER VI
CONCLUSION
CONCLUSION
75
Our exhaustive research in the field of Life Insurance threw
these factors.
76
CHAPTER VII
SUGGESTION
Suggestion
77
• According the survey only 42% people are
insured in Alwar 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.
78
CHAPTER VIII
QUESTIONNAIRE
QUESTIONNAIRE
79
1. ARE YOU EMPLOYED?
YES NO
a) LIC
b) ICICIPRUDENTIAL
80
6. WHAT DO YOU THINK ARE THE BENEFITS OF
INSURANCE COVER?
(RANK THEM)
b) TAX DEDUCTIONS
c) FUTURE INVESTMENT
a) LOW PREMIUM
d) REPUTATION OF COMPANY
81
_____________________________________________________
a) A SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING
b) NOT SATISFIED
82
c) NOT RESPONDING
YES NO
a) LIC
b) NSC
c) BONDS
d) PPF
e) PF
f) EPF
a) FIXED ASSETS
b) BANK DEPOSITS
c) JEWELLERY
e) SHARES
f) INSURANCE
83
84
17. WHAT DO YOU INTENT TO GAIN FROM
INVESTMENTS?
b) SECURITY
c) TAX BENIFITS
a) AFTER 25 Yrs
b) AFTER 35 Yrs
c) AFTER 45 Yrs
d) ANYTIME
a) RIGID PLANS
b) NON-USER FRIENDLY
c) UNSATISFATORY SREVICES
d) NON-AGGRESSIVE
e) SATISFACTORY
f) GOOD
g) VERY GOOD
85
20. ARE YOU PLANNING FOR NEW INVESTMENTS?
a) YES
b) NO
c) UNCERTAIN
THANK YOU
NAME:_________________________
ADDRESS:______________________
______________________________
OCCUPATION:___________________
86
CHAPTER IX
BIBLIOGRAPHY
BIBLIOGRAPHY
87
1. BOOKS/MAGAZINES REFFERED:
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:
88
THANK YOU
89