A

SUMMER TRAINING PROJECT REPORT

on

MARKET SURVEY
at
RELIANCE LIFE INSURANCE CO. MUZAFFARNAGAR

Submitted By:
Amit Chaudhary
0724970003
For partial fulfillment of the requirements for the
award of
Degree of Master of Business Administration
(2007-09)

Shri Ram College of Management

Muzaffarnagar
ACKNOWLEDGMENT
 ACKNOWLEDGMENT

A single person alone can never be credited for performing any extraordinary work
successfully. It is only possible with the continuous and constant help and guidance that
they receive from others.
This research report too has taken its shape because of the valuable and precious
guidance of our professor. We are gratefully acknowledged.
I further personally feel that making of this project provided us with good exposure to the
subject of finance and especially the Indian insurance sector and it was a very good
learning experience.
My sincere thanks are also due to Dr. Rahul Goyal (Executive Director) for their
significant help extended for the successful completion of the project. I highly the help I
got from them in providing me and lot of information regarding the functioning of this
organization.
My sincere thanks are also due to Dr. Moh.Arif (H.O.D. of MBA), for their significant
help extended for the successful completion of the project. I highly the help I got from
them in providing me and lot of information regarding the functioning of this
organization.

AMIT CHAUDHARY
PREFACE
 PREFACE

M.B.A. is stepping-stone to Management career. In order to achieve practical,

positive and concrete results the theoretical knowledge must be supplemented with

exposure to real environment. MBA combines both theory and its practical applications

as its major content of study in the field of management

Theoretical knowledge without practical knowledge is of little value. Theoretical

studies in classroom are not sufficient to understand the functioning of marketing

concepts. Therefore, it becomes necessary to undergo any project work. Practical project

supplements the theoretical studies i.e., it covers what is left uncovered in the classroom.

It exposes a student to invaluable treasure of experiences.

I took my project work with RELIANCE LIFE INSURANCE . Project work is a part

of our curriculum, which helps us to correlate our theoretical concepts with practical

experiences. The topic that I have taken for project is “MARKET SURVEY”.

Accomplishment and achievement of goals is the major aim of any organization. These

goals are achieved by proper recruitment of employees. Recruitment of quality and

dedicated employees plays an important role in achieving these goals.

DECLARATION
 DECLARATION

I am AMIT CHAUDHARY a student of Master of Business Administration, Shri Ram

College of Management, Muzaffarnagar, would like to declare the project title

“MARKET SURVEY” in partial fulfillment of the requirement for the degree of M.B.A

is my own work and it is not submit any where else for the reward of any degree\

diploma\certificate.

AMIT CHAUDHARY
M.B.A
 CONTENTS

PART – A
1. EXECUTIVE SUMMARY 1
2. COMPANY PROFILE 2
3. PRODUCT PROFILE 8

PART – B
4. INTRODUTION OF TOPIC 61
5. OBJECTIVES OF THE STUDY 68
6. RESEARCH METHODOLOGY 69
7. DATA ANALYSIS AND INTERPRETATION 75
8. FINDINGS 87
9. SUGGESTIONS 88
10. LIMITATIONS 89
11. BIBLOGRAPHY 90
12. APPENDIX 92
 LIST OF TABLE
Table no Page no

1. Investment pattern of respondents 1 75

2. Attitude of respondent about life Insurance company 2 76
3. Invested company of respondent 3 77
4. Awareness about Reliance life insurance office 4 78
5. Attitude about safety in reliance life Insurance 5 79
6. Reason of negative respondent 6 80
7. Awareness about the policies of Reliance life insurance 7 81
8. Reason for unawareness 8 82
9. Policy Holder’s of Reliance life insurance 9 83
10. Policy taken by respondents 10 84
11. Response when policy offered of Reliance life insurance 11 85
12. Reason for negativity 12 86
EXECUTIVE SUMMARY
 EXECUTIVE SUMMARY

Title of Research : Market Survey

Name of group with which

Research is conducted : Reliance Life Insurance

Research Area : Muzaffarnagar

Research Design : Descriptive

Data Collection : Primary & Secondary

Method of Data Collection : Personal interview Collected

Questionnaire (Schedule )
Reports and magazine.

Sample Size : 100

Project Under Guidance : Vikas Multani

(Sales Manager)
Muzaffarnagar.

College Guide : Vivek Kumar

MBA Lecturer
(SRCM)

1
COMPANY PROFILE
 HISTORY OF DHIRUBHAI H AMBANI

Few men in history have made as dramatic a contribution to their country’s economic
fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot,
the leader of men, the architect of India’s capital markets, the champion of shareholder
interest.
But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator.
In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector
enterprise.
When Dhirubhai embarked on his first business venture, he had a seed capital of barely
US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this
fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private company to
do so.
Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a place
patronised by a small club of elite investors which dabbled in a handful of stocks.

2
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 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.

3
 HISTORY

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.

Anil Ambani's Reliance Life Insurance Company Limited, a subsidiary of Reliance

Capital Limited, has concluded a much-awaited deal in the life insurance sector.

Even before selling a single life insurance policy, Reliance Life, a part of the Anil
Dhirubhai Ambani Enterprises, has snapped the Chennai-based private life insurer AMP
Sanmar Life Insurance Company Limited. AMP Sanmar is a 26:74 joint venture between
AMP, Australia and Sanmar group.

Interestingly, only recently, the Reliance Life had approached the Insurance Regulatory
and Development Authority (IRDA) to revive its business license that had been cancelled
by the regulator for non-commencement of business.

Though the three parties to the deal — Reliance Capital, AMP and Sanmar — are
keeping the deal size secret, figures ranging between Rs225-400 crore are being talked
about as being the final price.
What is clear is that Reliance Life has clearly outbid other suitors like Aviva, ICICI
Prudential Life Insurance Company, etc. This acquisition makes Reliance Life the first
private sector life insurer to start business without a foreign partner.
 4
The Insurance Regulatory and Development Authority (IRDA) has approved the change
in the name of AMP Sanmar Life Insurance Company Limited to Reliance Life Insurance
Company Limited.

The change was necessitated after the acquisition of the holdings of AMP Australia and
the Sanmar group in AMP Sanmar by Reliance Capital for Anil Ambani's proposed life
insurance venture, now called Reliance Life Insurance for an undisclosed sum.
Subsequently, a fresh certificate of incorporation was issued by the Registrar of
Companies, Tamil Nadu, changing the name of the company on January17, 2006.

Accepting the change in the name of the company in its registers, the IRDA has permitted
Reliance Life to carry on life insurance business subject to the condition that the
company should honor the commitments to the policyholders of the AMP Sanmar
without altering any of the terms and conditions of the original policy.

After the acquisition of the stake of the two promoter companies, Reliance Capital has
been busy chalking aggressive growth plans for the life insurance company. It plans to
have one million policyholders by this year-end.
The company under the new ownership has been selling policies at a faster pace than
ever before.

For the nine month ended 31st December 2005, AMP Sanmar / Reliance Life has a fresh
premium income of Rs114.48 crore, selling 41,488 policies with the average premium
per policy of Rs27, 593. As AMP Sanmar, the company had earned fresh premium of
Rs61.04 crore from the 23,328 policies it sold during April-December 2004 at an average
premium per policy of Rs26, 166.
 5
Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)
registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of
India Act, 1934.

Reliance Capital sees immense potential in the rapidly growing financial services sector
in India and aims to become a dominant player in this industry and offer fully integrated
financial services.

Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer
need based Life Insurance solutions to individuals and Corporate.
6
 VISION

To be recognized as a professional and dependable business entity committed to play a

meaningful role in the development of insurance industry in Pakistan and to safeguard the
legitimate interests of all stakeholders, namely policy-holders, share-holders, reinsures,
employees and all other business associates/partners

MISSION

To provide quality service and protection to its clients aiming at achieving a respectable
volume of business and become a prominent player through good governance and sound
professionalism focusing to become a well-known and respected Corporate entity in the
eyes of Society and Government.

It has its Registered office

Reliance Life Insurance Company Limited,

Regd. Office: The Trapezium,
First Floor, #39 Nelson Manickam Road,
Chennai - 600 029
Phone No: +91-44-30588200
Fax No: +91-44-30588220
E-mail: service@rcl.co.in

7
PRODUCTS PROFILE
 Product of reliance life insurance

Reliance Special Endowment Plan

Reliance Cash Flow Plan
Reliance Child Plan
Reliance EDLI Scheme
Reliance Group Term Assurance Policy
Reliance Market Return Plan
Reliance Simple Term Plan
Reliance Special Credit Guardian Plan
Reliance whole life plan
Reliance golden year plan
Reliance term plan
Reliance special Term plan
Reliance credit guardian plan

8
 PRODUCT DETAILS

Reliance life insurance launches maiden insurance product:

product:
Mumbai, august 17: Anil Dhirubhai Ambani group company Reliance Life Insurance
today announced the life launch of Reliance connect 2 life plan, its first product since
acquiring the life insurance business of AMP Sanmar in October last.

Reliance connect 2 life is a 15-year insurance - cum – savings

Plan for individuals in the age group of 18 to 45 years with a minimum sum assured of
Rs.1 lakh. The insurance cover can be upgraded in the second and third year up to a sum
of Rs. 10 lakh.

“Reliance connect aims to provide products that makes life insurance hassle-free and the
policy can be upgraded to keep place with individual lifestyle, said Reliance life
insurance’s chief Executive offices P.Nandagopal.

Reliance life insurance has 30,000 insurance advisors spread over 158 branches across
143 locations & a call center to service its customer.

HDFC and UT bank would act as a collection network. The company is in the final stages
of negotiation with banks for selling its products through the banc assurance channel.

The company plans to add another 10,000 to 12,000 advisors, who are under training,
said Nandagopal.
Reliance capital has infused Rs.166crore in Reliance life insurance, which has a capital
base of Rs.383 crore and employee strength of 3,654 including 822 employee of AMP
Seminar.

9
 RELIANCE ENDOWMENT PLAN

It takes a lot for a dream to become a reality. And money is surely one of them.
Reliance endowment plan gives you just the financial independence to realize your
dreams in the future. It lets you decide how much you would like to set as your sum
assured based on your current financial position and your expected future expenses.

KEY FEATURE:
FEATURE:
1. On maturity receive sum assured plus bonuses.
2. Wealth creation through bonus addition.
3. More value for your money by way of high sum Assured Rebate.
4. Increase, your insurance protection by adding term cover.
5. Choose to pay regular or single premium.

How does this plan work?

You pay premium every year for the entire term & get sum Assured plus accumulated

bonuses. On death, your beneficiary will get the sum Assured plus accumulated bonuses.

11
BENEFITS:
BENEFITS:

Maturity Benefit:
Benefit: On maturity you get sum Assured plus accumulated bonuses till that

date.

Life Cover Benefit:

Benefit: In the unfortunate event of loss of life, you’re your family will

receive the sum Assured plus accumulated bonuses (if any) till that date.

Rider Benefit:
Benefit: You also have the option to add three additional benefits to customize the

policy as per your needs for the regular premium plan.

a. Term life insurance benefit rider.

b. Accidental death benefit & total & permanent disablement rider.

c. Critical illness Rider.

12
 RELIANCE SPECIAL ENDOWMENT PLAN

Reliance special endowment plan is key to all your financial needs; you get a desired
lump sum after a specified period, however your life insurance protection continues for
an extended period. If anything were to happen to you, your beneficiary will get another
sum assured along with the bonuses. The policy comes with an added feature of a limited
premium term, which is always 5 years less than the policy term.

KEY FEATURES:
FEATURES:

1. Twin benefit of protection & savings.

2. Sum Assured is paid on survival, at the end of the premium paying term life
cover for full sum assured continues beyond premium paying term.
3. Wealth creation through bonus additions.
4. More value for your money by way of high sum Assured Rebate.
5. Choose to add the benefit of two riders-critical illness riders and Accidental
death benefit & total & permanent disablement rider.
6. Choose to avail of a policy loan available after 3 full years of premium
payment.
7. Policy participates in profits even after premium paying term.

How do this plan work?

You pay premium every year. This premium paying term is always 5 years less than the
policy term. On survival to the end of the premium paying term you get the sum Assured.
On survival, at maturity (i.e. at the end of the policy term) accumulated compounded
bonuses are paid.

13
BENEFITS:
BENEFITS:

Survival Benefit:
Benefit: On survival at the end of the premium paying term you get the sum
Assured.

Maturity Benefit:
Benefit: On survival to maturity you get accumulated bonuses

Life Cover Benefit:

Benefit: Your beneficiary will get sum Assured plus accumulated bonuses in
case of your unfortunate death at any time during the policy term. This life cover benefit
continues even after premium paying term.

Rider Benefit:
Benefit: you also have the option to add 2 additional benefits to customize the
policy as per your needs.
a. Accidental death benefit & total & permanent disablement rider.
b. Critical illness Rider.

14
 RELIANCE CASH FLOW PLAN

While most insurance plans block your money for a certain period of time, Reliance cash
flow plan gives you the double benefit of life insurance along with easy liquidity through
lump sum cash. It provides money periodically when you need it.
It lets you live life to the fullest today and at the same time, helps you stay protected for
tomorrow by giving you the flexibility of receiving a specified percentage of the sum
Assured at specified intervals.

KEY FEATURES:
FEATURES:

1. Easy liquidity- gets periodic cash flows at the end of the fourth year and
thereafter at the end of every three years.
2. Wealth creation through bonus additions.
3. On maturity receive accumulated bonuses along with final lump sum
payout.
4. More value for your money by way of high sum assured rebate.
5. Full sum assured plus bonuses in case of your unfortunate death. This is
over and above the survival benefits already paid.

Option to add two riders- critical illness rider and accidental death benefit and total
permanent disablement rider.

15
How do this plan work?

You pay premium every year for the entire term to get survivals benefit at periodical
intervals as mentioned below.
On death, your beneficiary will get the full sum assured, plus accumulated bonuses, over
and above the survival benefits already paid to you.

BENEFITS:
BENEFITS:

Survival Benefits:
Benefits: Get a percentage of the sum assured on the fourth anniversary and on
every third policy anniversary till maturity.

Maturity Benefits:
Benefits: On maturity you get the remaining percentage of the sum assured
plus accumulated bonuses.

Rider Benefits:
Benefits: You also have the option to add two additional benefits to customize the
policy as per your needs.

a. Accidental Death Benefit and total and permanent disablement rider.

b. Critical illness ride.

16
 RELIANCE CHILD PLAN

As a parent, it is only natural to dream of a smooth and blissful life for your child. Which
is exactly why you need to secure your child tomorrow, today.
Reliance child plan helps you save systematically so that you can give your child much-
needed financial security in the future. Simply put, Reliance child plan gives you the
freedom to enjoy every moment with your child today, without worrying about his/her
tomorrow.

KEY FEATURES:
FEATURES
1. Risk protection for you during the term of the
Policy.
2. Accumulated bonus at the end of the policy term.
3. 25% of sum assured payable every year sum benefit during the
last four policy anniversaries.
4. All future premiums are waived in the event of unfortunate loss of life.
5. Guaranteed fixed benefits continue even after loss of life of the
policyholder.
6. More value for your money by way of high sum Assured Rebate.
7. Choose to add the benefit of two riders-critical illness Rider and
Accidental death benefit & accidental death benefit & total and
permanent Disablement Rider.
8. Policy participates in profit even after the loss of
Life of the life assured.

17
How do this plan work?
work

You pay premium every year for the entire term & get guaranteed fixed deposit every
year during the Last four
Years of the policy term.
On death, your beneficiary will get the sum assured, Guaranteed fixed benefits on
specified dates and all Future premiums will be waived. All attached bonuses are
payable at the end of the Policy term and will remain attached to your policy Even after
payment of life cover benefit.

BENEFITS:

Life Cover Benefits:

Benefits In the unfortunate event of Loss Of life, your beneficiary will
receive the sum assured immediately and all future premiums will be waived.

Guaranteed Fixed Benefits:

Benefits Get 25% of sum assured every year on the last four policy
anniversaries irrespective of the survival of the life assured.

For example if you have taken a policy of Rs.1lakh for 20 years, then fixed benefits
payable will be Rs.25, 000 each at the end of 17th, 18th, 19th and 20th year.

Maturity Benefits:
Benefits On maturity you get accumulated bonuses irrespective of the survival
of the life assured.

Rider Benefits:
Benefits You also have the option to add two additional benefits to customize the
policy as per your needs.
1. Accidental death benefit and total and permanent disablement rider.
2. Critical illness rider.

18
 RELIANCE EDLI SCHEME

What is employee’s deposit linked insurance scheme (EDLI), 1976?

Is reliance EDLI scheme approved for offer as an alternative to EDLI?

What are the benefits of reliance EDLI scheme as against EDLI?

What is employee’s deposit linked insurance scheme (EDLI), 1976?

All establishments with at least 10 full-time permanent employees and to whom the
employee’s provident fund and miscellaneous provisions Act, 1952 applies, have a
statutory liability to subscribe to employee’s deposit linked insurance scheme (EDLI) to
provide for life insurance for all their employees.

Is reliance EDLI scheme approved for offer as an alternative to EDLI?

Yes, the central provident fund commissioner has approved reliance life insurance
employee benefit life assurance policies to be offered as an alternative to the employee’s
deposit linked insurance scheme, 1976 (EDLI).

19
What are the benefits of reliance EDLI scheme as against EDLI?

Several benefits of replacing EDLI by reliance EDLI scheme policy are:

Possible reduction in contributions payable by the employer.

The premium payable by the employer under the reliance EDLI scheme could be lower
than the total contribution paid by the employer under the EDLI scheme depending on the
average age and risk profile of the industry.

Simple structure of the life insurance cover.

Life cover provided by EDLI is proportional to the balances in the PF account of the
employee subject to certain maximum limits.
Life cover provided by reliance EDLI scheme is a simple flat cover equal to Rs.62, 000,
the maximum amount specified by the employee’s deposit linked insurance scheme, 1976
(EDLI).

Stress- free administration.

Experienced and professional administration resulting in hassle free services for member
employee data management and claims payments apart from others.

21
 RELIANCE GROUP TERM ASSURANCE POLICY

What is reliance group term assurance policy?

Who is reliance group term assurance policy designed for?
What are the benefits provided?
What options are available?
What is the benefit from experiences in the policy?
Why take this policy?
What do your employees get?

What is reliance group term assurance policy?

Reliance group term assurance policy is a one-year renewable term assurance contract.
The benefit is payable on the happening of the contingency during one year. At the end of
the year, the contract may be renewed.

Who is reliance group term assurance policy designed for?

Employers looking for a comprehensive professionally administered term assurance
cover for their employees. Subject to approval by the provident fund commissioner, this
policy can be used as a replacement for the employee’s deposit linked insurance scheme
under the provident fund act.

What are the benefits provided?

A payment is made on the death of an employee. Cover can be:
• Fixed multiple salary
• % Of salary for each year of future service to normal retirement date
• Fixed rupee amount
• Fixed age-related scale
• Formula based on designation/rank of employees in the group.

22
 If an employee becomes disabled, as defined by us then the benefit above is
accelerated and paid out in 5 equal annual installment.

No further benefit is payable subsequently.

No benefits are payable on survival to the end of the year.

What options are available?

You can choose:

• Whether or not to provide the benefit on disablement.

• Whether or not you wish to benefit from experience in your policy.
• Whether or not to give your employees the choice of continuing their cover
with us under an individual policy.

What is the benefit from experience in the policy?

At the end of every 3-policy period, under the basis specified below, we will investigate
the claims experience under this policy. That investigation may lead us to decide that an
experience refund is due. If we declare that an experience refund is due, we will adjust it
against the premium due for the next policy period.

Experience refund = x% of (y% premiums-claims including an allowance for incurred but

not reported claims)-losses carried forward from the previous period, if any. Refer table
below.

24
 No. of Lives No. of Life years X Y
500 1500 50% 60%
1000 3000 50% 60%
2500 7500 60% 61%
5000 15000 75% 63%
7500 22500 75% 65%
10000 30000 75% 67%
15000 45000 75% 70%
20000 60000 75% 70%
50000 150000 85% 70%
100000 300000 85% 70%

Why take this policy?

• Improved HR because the benefit has value to the employee.
 • Replacement of lump sum payments with regular premiums accelerates
tax relief.

• Statutory compliance if used to replace insurance cover under the

provident fund
Act.

What do your employees get?

• Coverage at rates lower than applicable to individuals live.
• Simplified procedures for insurability- limited or no medical
tests.

25

RELIANCE MARKET RETURN PLAN

You have always aspired for the best in life. And we help you achieve just that.

With Reliance market return plan you can have the twin advantage of insurance

protection as well as reaping the benefits of investment growth. It is a flexible plan which

works all through your life & meets the changing requirements like additional protection,

liquidity through cash, option to invest in different asset class, steady golden years &

many more

KEY FEATURES:
FEATURES

• Twin benefit of market linked return and insurance protection.

 • A unit linked plan, different from traditional life insurance product, with

maximum maturity age of 80 years.

• Option to create your own portfolio depending on your risk appetite.

• Choose form 4 different investment funds.

• Flexibility to switch between funds.

• Option to pay regular as well as single premium & top-ups.

• Option to package with accidental riders.

• Flexibility to increase the sum assured.

• Liquidity through partial withdrawals.

26

How does this plan work?

The premium made net of premium allocation charges by you is invested in fund/funds of

your choice and units are allocated depending on the price of units for the fund/funds.

The value of your unit account is the total value of units that you hold in the fund/funds.

The value of your unit account is the total value of units that you hold in the fund/funds.

The mortality charges and policy administration charges are deducted through

cancellation of unit whereas the fund management charge is priced in the unit value.

BENEFITS:
BENEFITS
Life Cover Benefit:
Benefit You can choose the basic sum assured within the minimum and

maximum levels mentioned below.

Minimum Sum Assured:

Assured

• Regular Premium: Annualized premium for 5 year or for half the

policy term.

• Single Premium: 125% of the single premium.

Maximum Sum Assured:

Assured No limit (Rs.500, 000 for age up to 12 year).

In case of unfortunate loss of life, your beneficiary will get sum assured or unit account

value whichever is higher.

27

Maturity Benefit:
Benefit On survival, at maturity the value of your unit account will be paid

out.

Rider Benefit:
Benefit you can add the accidental death & accidental total & permanent

disablement benefit rider (available only with regular premium option).

 28

RELIANCE SIMPLE TERM PLAN:

PLAN

To protect your family from tomorrow’s uncertainties, you need to plan from today. And

Reliance simple term plan helps you do just that. It is a cost-effective, pure life insurance

plan that offers you comprehensive & affordable coverage for a limited period of time to

suit your needs.

How do this plan work?

You pay premium of Rs.100 every year for three years. On death, during the three-year
period, your beneficiary will get Rs. 10,000. On survival, at maturity nothing is payable.

Policy term

Who can buy this product?

Minimum age at entry: 18 years

Maximum age at entry: 44 years
Maximum age at maturity: 47 years

Sum assured

Sum Assured Rs 10,000

30

Policy Term: 3 years

RELIANCE

SPECIAL CREDIT GUARDIAN PLAN:

PLAN

In today’s world of easily available loans, we often tend to neglect the implications of

non-payment in case of our untimely demise.

Reliance special credit guardian plan helps you and your family avoids such situations by

securing your housing loans, personal loans and even credit cards payment. What make
the plan special are the facts that on survival at maturity, all premiums paid for your basic

policy will be returned to you.

KEY FEATURES:
FEATURES

• Different types of loans are covered under this plan- housing loan, personal loan,

outstanding on credit cards etc.

• Limited premium paying term single & regular premium payments options.

• Discount on payment rates for women decreasing term insurance.

• Option to add two riders- critical illness & accidental death benefit and total&

permanent disablement rider.

31

How do this plan work?

You pay premium every year for the entire term. The sum assured decreases as per the

policy schedule in line with the outstanding loan schedule. On death, your nominee will

get the sum assured. On survival at maturity, you will receive all basic premiums paid.

BENEFITS:
BENEFITS
Maturity Benefit:
Benefit On survival to maturity all premiums paid for the basic policy are

returned. This doesn’t include any extra premium or premium for additional benefits.

Life Cover Benefit:

Benefit In the unfortunate event of loss of life, the nominee will receive the

sum assured as per the policy schedule.

Rider Benefit:
Benefit You can choose to customize your regular policy by adding two benefits:

• Accidental death benefit & total & permanent disablement rider.

• Critical illness rider.

Accidental death benefit & total & permanent disablement rider:

Accidents are unfortunate and sometimes fatal. You can customize your basic policy with

an accidental death benefit & total & permanent disablement rider.

32

Accidental Death Benefit and Total and Permanent Disablement Benefit

Age at entry 18 years 59 years
Age at expiry 25 years 64 years
Rs 50,00,000
Sum Assured Rs 25,000 (Basic Policy Sum Assured subject to a maximum
of rs 50,00,000 per life)

Critical illness rider:

Sudden onset of a major illness causes worries and heavy expenses. Our optional critical

consistency cover helps provide financial relief in such cases. It pays you the sum assured

upfront in respect of ten major illnesses.

a. Cancer

b. Coronary artery bypass surgery

c. Heart attack

d. Stroke

e. Kidney failure

f. Aorta surgery

g. Coma

h. Heart value replacement

i. Major organ transplant

34
Critical Illness Rider
Age at entry 18 years 55 years
Age at expiry 25 years 64 years
Rs. 10,00,000
Sum Assured Rs 1,00,000 (Basic Policy Sum Assured subject to a maximum
of Rs. 10,00,00 per life)
Minimum Policy
5
Term
What is the policy term?

Regular Premium - 10yrs

Minimum Policy Term:
Single Premium - 5 years
Regular Premium - 30 years
Maximum Policy Term:
Single Premium - 15 years

Who can buy this product?

Minimum age at entry: 21 years

Maximum age at entry: 60 years
Regular Premium - 31 years
Minimum age at maturity:
Single Premium - 26 years
Maximum age at maturity: 65 years

35

What is the sum assured?

Minimum Sum Assured Rs 2,50,000

Maximum Sum Assured No limit
Regular Premium - Rs. 1000
Minimum premium:
Single Premium - Rs. 3000
36
 RELIANCE WHOLE LIFE PLAN

You always loved your family. As a loving person you also Wanted to be rest assured in
the knowledge 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:
FEATURES

• Insurance protection till age 85.

• Choose to extend 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 assure rebate.
• Get sum assured plus bonuses in case of your unfortunate death.

How do this plan work?

You pay premium every year for desired premium paying term. You get sum assured plus
bonuses on reaching age 85. You choose to continue with the insurance cover until the
age of 99 and the policy will continue to participate in profits till then. On death, your
beneficiary will get the sum assured plus accumulated bonuses.

38
BENEFITS:
BENEFITS

Maturity Benefit:
Benefit On attaining age 85 you get sum assured plus accumulated bonuses.

Life Cover Benefit:

Benefit In the unfortunate event of loss of life, your beneficiary will receive
the sum assured plus accumulated bonuses till that date.

Rider Benefit:
Benefit You also have the option to add 2 additional benefits to customize the
policy as per your needs.
a. Accidental death benefit and total and permanent disablement rider.
b. Critical illness rider.

Accidental death benefit and total and permanent disablement rider:

Accident is unfortunate and sometimes fatal. You can customize your basic policy with
an accidental death benefit & total and permanent disablement benefit rider.
The accidental death benefit is payable if death occurs directly as a result of an accident
and is intimated with 90 days of the occurrence.

Accidental Death & Disability Benefit

Age at entry 18 yrs 59 yrs
Age at expiry 25 yrs 64 yrs
Rs 50,00,000 (subject to a maximum of basic
Sum Assured Rs 25,000
policy sum assured)

40
Critical illness rider:
rider sudden on set of major illnesses causes worries and heavy

expenses. Our optional critical conditions cover help provide financial relief in such

cases. It pays you sum assured upfront in respect of 8 major illness.

a. Cancer

b. Coronary artery bypass surgery

c. Heart attack

d. Stroke

e. Kidney failure

f. Aorta surgery

g. Coma

h. Heart valve replacement

Critical Illness
Age at entry 18 yrs 55 yrs
Age at expiry 25 yrs 64 yrs
Rs 10,00,000 (subject to a maximum of basic
Sum Assured Rs 1,00,000
policy sum assured)
Minimum policy
5
term

42
 RELIANCE TERM PLAN

Life, as we know, is full of uncertainties. And to keep a head of them, you need to plan

ahead.Reliance Term Plan is a pure life insurance plan that offers you comprehensive and

affordable coverage for a limited period of time to suit your needs.

KEY FEATURES:
FEATURES

• Get higher insurance protection at economical rates.

• Optional accidental & disability rider to enhance protection.

• Discount on premium rates for women.

• Suitable for business owners who want to cover the life of their key

employees.

BENEFITS:
BENEFITS

Life Cover Benefit:

Benefit In the unfortunate event of loss of life, your beneficiary will receive

sum assured.

Maturity Benefit:
Benefit there is no maturity benefit payable under this policy.

Rider Benefit:
Benefit You also have the option to add accidental death benefit and total and

permanent disablement rider.

 44

RELIANCE SPECIAL TERM PLAN

To stay a head of the uncertainties of life, we need to plan well in advance.

Reliance special term plan is a pure life insurance plan that offers you comprehensive and

affordable coverage for a limited period of time to suit for needs.

What’s more, on survival at maturity all premiums paid for your basic policy will be

returned to you.

KEY FEATURES:
FEATURES

• Get higher insurance protection at economical rates.

• Basic premiums paid will be refunded at maturity.

• Choose to regular or single premium.

How do this plan work?

You pay premium every year for the entire term. On death your nominee will get sum

assured. On survival to maturity you will get the entire basic premiums, paid returned.
 47

BENEFITS

Maturity Benefit:
Benefit On survival to maturity all premiums paid for the basic policy are

returned. This excludes any extra premium or premium for additional benefit.

Life Cover Benefit:

Benefit In the unfortunate event of loss of life, your nominee will receive the

sum assured.

Rider Benefit:
Benefit You also have the option to add 2 additional benefits to customize the

policy as per your needs for the regular premium policy.

a. Accidental death benefit & total and permanent disablement rider.

b. Critical illness rider

Accidental death benefit & total and permanent disablement rider:

Accidents are unfortunate and sometimes fatal. You can customize your basic policy with

an accidental death benefit & total and permanent disablement rider.

The accidental death benefit is payable if death occurs directly as a result of an accident

and is intimated with 90 days of its occurrence.

 48

Critical illness rider:

rider Major illness causes worries and heavy expenses. Our optional

critical consistency cover helps provide financial relief in such cases. It pays you the sum

assured upfront in respect of ten major illnesses.

a. Cancer

b. Coronary artery bypass surgery

c. Heart attack

d. Stroke

e. Kidney failure

f. Aorta surgery

g. Coma

h. Heart valve replacement

i. Major organ transplant

j. Paralysis

49
 COMPETITORS OF RELIANCE IN THIS FIELD ARE

ICICI Prudential Life

Bajaj Allianz

Max New York Life

Met Life

ING Vyasa

Om Kotak Mahindra

Tata AIG

Aviva

HDFC Standard Life

SBI Life

Birla sun-life insurance company limited

AMP Sanmar Assurance Company Limited

Dabur CGU Life Insurance Co. Pvt. Limi

50
 THE INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY

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.

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’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting to agents has ensured that the insurance
companies would have a trained workforce of insurance agents in place to sell their
products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.

51
The important functions of IRDA are as follows:

• To exercise all powers & functions of controller of insurance.

• Protection of the interest of the policyholders.
• To issue, renew, modify, withdraw or suspend certificate of registration.
• To specify requisite qualification & training for insurance intermediaries &
agents.
• To promote & regulate professional organization connected with insurance.
• To conduct inspection/investigations etc.
• To prescribe method of insurance accounting.
• To regulate investment of funds & margins of solvency.
• To adjudication upon disputes.
• To conduct inspection & audit of insurers, intermediaries & other organizations
concerned with insurance.
 52

LIFE INSURANCE
Since the earliest time, human kind’s most earnest desire has been to leave something for
posterity. Be it learning or material possession, our memory lives in what we leave
behind.
It is in this very need that there lies the origin of life insurance. After independence near
about 209 Life Insurance companies were doing business worth Rs. 712.76 crore. The
first Indian-owned life insurance company, the Life Assurance Society, was set up in
1870 by six friends. It insured Indian lives at the normal rates instead of charging a
premium of 15 to 20 percent as foreign insurers did. But today the concept has really
changed. Today Life Insurance protects the economic vale of a human life for the benefit
of those who are financially dependent on it. It has now started ensuring peace of mind
and quality of life to million of families.

LIFE INSURANCE IN INDIA

Life Insurance in its existing form came to India from the United Kingdom with the
establishment of a British firm Oriental Life Insurance Company in Calcutta in 1818
followed by Bombay Life Assurance Company in 1823. The Indian Life Assurance
Companies Act, 1912 was the first statutory measure to regulate life insurance business.
Later in 1928 the Indian Insurance Companies Act was enacted to enable the Government
to collect statistical information about both life and non-life insurance business transacted
in India by Indian and foreign insurers including provident insurance societies. In 1938
with a view to protecting the interest of insuring public earlier legislation was
consolidated and amended by the Insurance Act 1938 with comprehensive provisions
detailed and effective control over the activities of insurers. The Act was amended in
 53

1950 resulting in far reaching changes in the insurance sector. These included a statutory
requirement of equity capital for companies carrying on life insurance business, ceiling
on share holdings in such companies, stricter control on investments, submission of
periodical returns
relating to investments and such other information to the controller. The controller could
also call for appointment of administrators and put a ceiling on expenses of management
and agency commission for mismanaged companies. By 1956, 154 Indian insurers, 16
foreign insurers and 75 provident societies were carrying on life insurance business in
India. Life insurance business was
concentrated in urban areas and confined to the higher strata of the society. On January
19, 1956, the management of life insurance business of 245 Indian and foreign insurers
and provident societies then operating in India was taken over by the Central
Government. Life Insurance Corporation was formed in September 1956 by an Act of
Parliament, viz. LIC Act 1956 with a capital contribution of Rs.50 mn.

HISTORY OF INSURANCE IN INDIA

Insurance in India has been under public sector for over four decades. Life Insurance was
nationalized way back in 1956 by merging 245 private insurance companies thus forming
Life Insurance Corporation (LIC) of India. Similarly after nationalisation of general
insurance in 1972, General Insurance Corporation (GIC) was formed by merging 106
private insurance companies. General Insurance Corporation currently has four subsidiary
companies operating in India. When the insurance industry was nationalised, it was
considered a landmark and a milestone on the way to the socialistic pattern of society that
India had chosen after independence.
But now four decades after the Insurance sector was nationalised, the nationalised sector
companies could not cater to the Indian market to cover its entire potential. so the main
objectives of privatization are
 54

1. To provide for proper back ups if there is any unforeseen economic shocks.
2. To make sure there is a win-win situation for both the common man and the industry
players.
The other reasons for opening up the insurance sector to the private insurers are as
under:

1. To provide better Insurance coverage to Indian citizens.

2. To augment the flow of long-term financial resources to finance the growth of
Infrastructure.
3. The Public Sector Insurance Companies had not succeeded in extending the insurance
cover to all the needy people of the country due to various reasons. Hence this onerous
responsibility now has been entrusted to the private insurers.
4. Penetration of Insurance: LIC and GIC could not ensure very fast growth of insurance
in India even in a long period extending over four decades. Hence the penetration of
insurance is very low in India. The following indices as explained will indicate and
support this contention:
While per capita insurance premium in developed countries is very high, it is quite low in
India. For instance, per capita insurance premium in India in 1999 was only $8 while it
was $4800 for Japan, $1000 for Republic of Korea, $887 for Singapore, $823 for Hong
Kong and $144 for Malaysia.
Similarly the penetration of insurance is also assessed by the ratio of the insurance
premium to the Gross Domestic Product (GDP) in a country. While insurance premium
as a percentage of GDP was 14% for Japan, 13% for South Africa, 12% for Korea, 9%
for UK and France, it was only around 2% in India in 1999. Hence the penetration of
insurance is low here.
The penetration of insurance is also assessed by a ratio of the insurance premium to the
Gross Domestic Savings (GDS). While the insurance premium as a percentage of GDS
was 52% for UK, 35% for other European and American countries, it was only 9% in
India in 1999.
 57

Hence even this index indicates low level of penetration of insurance in India.
The share of India in the world market in terms of gross insurance premium is again very
small. For instance, while Japan has 31%, European Union 25%, South Africa 2.3%,
Canada 1.7% share of the global insurance premium it is only 0.3% for India.
Hence the opening up of the insurance sector to private insurers has put a great
responsibility on them to ensure fast growth of insurance so that India can come upto the
level of developed countries of the world in offering the insurance insurance cover to its
citizens.
58
 OBJECTIVES OF THE REFORMS OF THE INSURANCE SECTOR

We have discussed what the needs are at present to go for the insurance sector reforms.
But before going in for the reforms we must make our objectives very clear as to what we
want to achieve through these reforms. The vision should be quite clear and the plans
should be chalked out having a long-term perspective in mind. To be very fair, Indian
plans do lack in this feature and we do suffer from planning myopia.
It is very essential to chalk out the objectives of any reforms. This has two basic reasons :
To provide for proper back ups if there is any unforeseen economic shocks.
To make sure there is a win-win situation for both the common man and the industry
players.

THE OBJECTIVES OF THE REFORMS ARE AS FOLLOWS:

1. To provide better coverage to the Indian citizens

2. To augment the flow of long term financial resources to finance the growth of the
infrastructure.
3. To substantiate for the major faults that the government owned insurance firms
has committed.
4. To speed up the faster rate of penetration by the insurance firms in India which is
not very much compared to other countries.
5. To make the private players responsible to the investors and not to the
government.
6. To increase the competition in this sector so that the common people has the
advantage of enjoying quality services at a reasonable cost
7. Insurance has a far reaching effect in synchronizing between the various service
sectors. So if this sector can grow , the prospects of the various other service
sector remains to be promising.

59
8. Next, the long term indication that we have in India that the service sector is
poised for a growth. So the reforms must be designed in order to cash on this
scenario.

60
PART - B
INTRODUTION OF
TOPIC
 INTRODUCTION OF TOPIC

I have chosen this topic because of the following reasons: -

1. I want to know to know about the awareness of the company and its policies in
the market of muzaffanagar .

2. I want to find out the response of people for the life insurance.

In this research work, I have used Descriptive Research method for conducting the research.

I collected primary data through Questionnaire – schedule and I collected secondary data from
Internet, Newspapers, Magazine, Journals, Journals,

61
 STUDY OF INDUSTRY

The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

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

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.

The insurance landscape in India is undergoing major change. Closed to foreign

competition since nationalization in 1956, the life insurance industry had been protected
from competitive pressures. Now, with the re-opening of the sector, several new players
have entered the scene.
The game is old but the rules are new and still developing. Ensconced in a monopoly run
from the nationalization days beginning in 1956, the insurance industry has indeed
awakened: to a deregulated environment in which several private players have partnered
with multinational insurance giants.
62

However, despite its teeming one billion population, India still has a low insurance
penetration of 1.95 per cent, 51st in the world. Despite the fact that India boasts a saving
rate of around 25 per cent, less than 5 percent is spent on insurance.

The first company to foray in this sector was LIC, which was set up on 1 st sep. 1956.
Since then it is enjoying monopoly until the recent entry of the private players in this
sector. The private companies in their five years of operation had continuously suffered
by the established leadership and monopoly of LIC.

Although for the last 50 years LIC has been the only company to cater the consumer
needs in the insurance sector but in the past 5 years 12 insurance companies have
emerged in the scenario which are: -

ICICI Prudential Life

Birla Sun Life
Bajaj Allianz
Max New York Life
Met Life
ING Vyasa
Om Kotak Mahindra
Tata AIG
Aviva
HDFC Standard Life
SBI Life
Reliance life insurance
 63

New players need to recognize the limitations of their rival and decide upon the right
mix of distribution channels in their business. Insurance sector has always been volatile
right from the very beginning. As private players are entering into the Indian market, the
competition has become very stiff. Today a lot of companies are there is the market with
their products. The common consumer is under dilemma to decide to go for which
company.
The Reliance Life Insurance is also one among these private players. The project with
Reliance Life Insurance deal with the market survey of Life Insurance Policy. In today’s
world, one can hardly find a person without a life insurance policy. The project helps to
find out that which company policy is most prevalent in the market and what was the
reason of purchase. It also helps to find out which is the most prevalent insurance plan in
the market. The project is also concerned about finding the awareness level of ING
Vysya Life Insurance is the market.
At last the project suggests some recommendation to the organization which is the
outcome of finding and analysis.
64
 THE CHANGING SCENARIO

Prior to liberalization the regulatory environment was primarily based on consolidated

provisions of the Insurance Act 1938. The Controller of Insurance has wide ranging
powers, which included directing, cautioning, advising, prohibiting, inspecting,
investigating, searching, seizing, prosecuting, penalizing, authorizing, registering,
malgamating and liquidating insurance companies. It was in 1956 that Life Insurance was
nationalized followed by General Insurance in 1972.
In the aftermath of nationalization much of the powers of the Controller of Insurance
were abridged for operational convenience of state owned LIC and GIC. Meanwhile great
developments were taking place around the world due to strong possibilities offered by
insurance sector to the geopolitical and politico-economical systems in the new global
order. In 1993, a new committee was constituted. Review of insurance regulations started
only with the Malhotra Committee of reforms constituted in April 1993. Unlike Financial
Sector Reforms Committee who had the only choice of determining the phase of reforms
to align with the internationally accepted Basle provisions under the aegis of Bank of
International Settlement (BIS), Malhotra Committee had a real brainstorming at hand.
Insurance order of the world has no unique pattern. The committee recommendations
were the prudence of that day and a few of the suggestions were economically enticing
for the regimented political outfit of the country.

65
FOREIGN PARTICIPATION

Now that the gates have opened and foreign insurance companies are allowed to
participate in the Indian insurance market there are experiments and experiences of all
hues. India has adopted one of them based on its politico-economics dynamics. Indian
market expects a continuation of trend in companies to expand their horizons beyond
domestic borders. This is true both in terms of expansion plans by domestic companies
and in the acquisition of insurance companies by foreign concerns. Insurance investors
from developed economies, particularly in Western Europe and the US find some foreign
markets as having greater growth potential than their domestic markets. Therefore, a high
level of interest exists for these companies to acquire insurance concerns. IRDA has to
recognize this global trend and act prudentially for India. India is already moving up from
the foothill of globalization in insurance industry. Of course the initial expectation that
IRDA will be inundated with insurance license applications from the Joint Ventures (JV)
formed by domestic
and foreign companies has not happened. A part of the phenomenon is explained by bad
understanding of the tenets of Joint Venture formation but major business sense may be
lying in becoming a more equipped second fast-mover. Whichever way the business
moves from now on life in insurance industry can never be the same again in India.
Subjective prudence of the lawmaker and the regulator of the day mark the stipulated
stake of only 26 percent of the equities by the foreign partners in any insurance JV. The
prudential perception may change with time and persons. But for the present we have to
live with the provisions. As the experience is well dispersed in the contiguous
geographical area, we cannot distinguish one set of prudence from the other for the time
being. Even the recently amended IRA Bill provides enough room for foreign
participation. Already a handful of entrants have taken place and more are expected in the
near future. A bunch of mergers are also in the queue.

66
 In the Indian market one of the important issues that need to be immediately addressed
to enhance the speed of foreign participation is the role of intermediaries. In Western
markets there are many intermediaries like agents, brokers, consultants, surveyors, third
party administrators, etc. They form a crucial link between the insurance carrier and the
final customer. In India, insurance agency is the only recognized intermediary by the
Insurance Act, 1938. The agency system may work well in personal lines of business like
Life Insurance, Mediclaim, Personal accident, etc. There is a need for more specialized
entities to service commercial lines. Many banks are showing
interest to take up corporate agency. But regulations pertaining to corporate agency need
to be made more liberal. There are representations asking IRDA to review/modify certain
sections, e.g., the mandatory 100 hour training which all the directors of the corporate
willing to take up agency, have to undergo. Another issue is 26 percent cap on foreign
equity participation. Typically.
The foreign companies want at least 51 percent participation so that the balance sheets
can be consolidated. Practically, the management control seems to be anyway with the
foreign partners.

67
OBJECTIVES OF STUDY
 OBJECTIVE OF STUDY

Primary objective_

 To know about awareness of the company and its policies in the market of

muzaffanagar

Secondary Objective:-

 To find out the response of people for the life insurance.

 To know the knowledge of people about the policies of company .

 To know about the level of the faith of people on company.

 To know about the investment pattern of people of Muzaffarnagar

68
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

RESEARCH DESIGN DESCIPTIVE

RESEARCH APPROACH SURVEY

CONTACT METHOD PERSONAL INTERVIEW

SAMPLE SIZE 100

SAMPLE UNIT BUSINESS MAN, SERVICE MAN,

HOUSE WIFES,STUDENTS

SAMPLING CRITERIA RANDOM SAMPLING

RESEARCH INSTRUMENTS QUESTIONNAIRE (SCHEDULE)

TYPE OF DATA COLLECTED PRIMARY DATA

SECONDARY DATA

AREA OF RESEARCH MUZAFFARNAGAR

69
DEFINING RESEARCH PROBLEM

How to define a research problem was a Herculean task that required effective guidance
to avoid the perplexity encountered in a research project operation.

Our team followed the usual approach by poring questions to ourselves.

Why the performance of the LIC is much higher than the reliance life insurance limited?
This problem was later recognized as comprising of no of amenities such as: what sort of
performance is being referred to?
What period of time and what performance is being talked about? What is the
environment, which is being considered?

Rethinking, discussions and rephrasing by our team placed the problem on a still better
operational basis after no. Of steps—

To what extent did sales performance in (pine period) of completes differ with that of I-
pry in respect of Delhi? What factors were responsible for performance differentiates
between the companies?

In such a fashion, the ambiguities were resolved thinking and rethinking resulted in a
more specific problem so that it might be realistic one in team of available data and
resources and in also analytically meaningful.

The outcome was not only meaningful from an operation point of view but was equally
capable of solving the problem itself.

70
The information for the project of finance on life insurance industry has been collected
from both primary as well as secondary sources.

In case of primary sources the information was retrieved directly from the concerned
people and the authorities. We have conducted our research mainly with the help of the
invaluable inputs provided by the consumers of products of the private players in the
form of a questionnaire drafted by us. The questionnaire method was used as it is more
versatile than any other any other method and further a questionnaire is pre planned and
thus less time is wasted since a planned set of questions are available. We have taken a
sample size of 200 people. Our analysis is completely based on the responses given to us
by the respondents and the result for the same has been presented in the form of pie
charts and graphs. While there was some information, which could not be obtained
through questionnaires, for that purpose we resort to personal interviews. A total of six in
depth interviews were also taken of the agents and managers of these private players.

Since secondary data are information published by others and the companies they were
easily available and not much effort was required in obtaining the information.

71
 SOURCES OF DATA

PRIMARY SOURCES

• Questionnaire.

SECONDARY SOURCES

• Newspapers.
• Magazines.
• Internet sites.

DATA COLLECTION

PRIMARY DATA

The primary data are those data, which are collected afresh and for the first time and
happen to be original in character. The primary data to be collected for the study are-
By Structured Questionnaire.

SECONDARY DATA

Secondary data are those data which have already been collected by someone else and
which already had been passed though the statically process. The secondary data to be
collected for the study are-
Publication Of The Company
Periodical Of The Company
By Internet Websites
 72

RESEARCH INSTRUMENT

Structured Questionnaire:
A Questionnaire consists of a number of questions printed or typed and a definite order
on forms. It is the set of questions presented to the retailers for answers. When the
questions have only two alternatives or of multiple choices, then it is known as closed-
end questionnaire, which is hence used the given study.

RESEARCH INSTRUMENTS USED

For our research purpose instruments used were extensive literature survey and Internet
surfing. The idea was to gain enough insight into the insurance phenomenon and
analyzing the characteristics of the population under study.

We adopted sample survey because it was not possible to examine every item in the
population. It was possible to capture sufficiently acquit result by studying only a portion
of the total population which is the true representative of the population under study.

Insurance Market Survey

The phase one of study corresponded to the collection of data from insurance agents of
our competitors who are in better personal contact with their customer so as to analyze
the demand of the customers, their working environment and satisfaction level with their
respected companies.
The objective of this survey was to tap those people who can prove to be potential
 73

insurance advisors for the company. So, the questionnaire aimed at finding the basic
mind set of the people like whether they will be interested in earning extra income and if
yes then what method out of various options provided to them like MLM or Investments
in property etc. they will prefer.
It also aimed at finding out that if given a chance whether they would prefer to join
reliance life insurance as an insurance advisor.

Sampling techniques used and the sample size

Simple random sampling technique was used to collect data from the population. This
technique gave each item an equal probability of being selected.

Sample size ---100

 74

DATA ANALSIS & INTERPRETATION

TABLE-1

Investment pattern of respondents

(a) Bank 27%

(b) Post office 18%
(c) Life insurance company 23%
(d) Capital market 32%

35

30

25

20
Series1
15

10

0
Bank Post office LIC Capital market

Graph-1

ANALYSIS:

The above data shows that 27% people invest there money in bank, 18% in
post office, 23% in life insurance company & 32% in capital market.

75
TABLE-2

Attitude of respondent about life insurance company

(a) Yes 73%

(b) No 11%
(c) Can not say 16%

80

70

60

50

40 Series1

30

20

10

0
Yes No Can not say

Graph-2

ANALYSIS:

The above data shows that 73% people said that it is good to invest in life
insurance, 11% do not think so & 16% had no comment.

76
TABLE-3

Invested company of respondent

(a) LIC 71%

(b) Reliance life insurance 6%
(c) ICICI 10%
(d) Others 13%

80%
71%
70%
60%

50%
40%
30%

20% 13%
10%
10% 6%

0%
lic reliance life icici others
insaurance

Graph-3

ANALYSIS:

The above data shows that 71% people invested his money in LIC, 6% in
RLI, 10% in ICICI, & 13% in others.

77
TABLE-4

Awareness about Reliance life insurance office

(a) Yes 18%

(b) No 82%

90% 82%
80%
70%
60%
50%
40%
30%
18%
20%
10%
0%
yes no

Graph-4

ANALYSIS:

The above data shows that 18% people know the Reliance life insurance office in
muzaffarnagar & 82% people don`t know.
 78

TABLE-5

Attitude about safety in reliance life insurance

(a) Yes 23%

(b) No 26%
(c) Can not say 51%

60

50

40

30

20

10

0
Yes No Can`t say

Graph-5

ANALYSIS:
The above data shows that 23% people think it is safe to invest money in Reliance
Life insurance, 26% people think it is not safe & 51% people had no comment.
79
TABLE-6

Reason of negative respondent

(a) Private company (Do not have faith) 64%

(b) New company 36%
Graph-6
70

60

50

40

30

20

10

0
Private company New company

ANALYSIS:
The above data shows that 64% people said that they don`t have faith on company
because this is a private company & 36% people said that this is a new company so they
don`t think to invest money in Reliance life insurance

80
TABLE-7

Awareness about the policies of Reliance life insurance

(a) Yes 15%

(b) No 85%

90% 85%

80%
70%
60%
50%
Series1
40%
30%
20% 15%
10%
0%
yes no

Graph-7
Sample size-100

ANALYSIS:

The above data shows that only 15% people know about the policies of Reliance
life insurance & 85% people don`t know.

81
TABLE-8

Reason for unawareness

(a) Not communicated 29.4%

(b) Not interested 70.6%

80

70

60

50

40

30

20

10

0
Not communicated Not interested

Graph-8

ANALYSIS:

The above data shows that only 29.4% people said that policies are not
communicated to them & 70% people said that they are not interested to know about the
Reliance life insurance policies.

82
TABLE-9

Policy Holder’s of Reliance life insurance

(a) Yes 6%
(b) No 94%
Graph-9
100
90
80
70
60
50
40
30
20
10
0
Yes No

ANALYSIS:
The above data shows that only 6% people have policy of Reliance life insurance &
94% people do not have.

83
TABLE-10
 Policy taken by respondents

(a) Child plan 50%

(b) Health plan 16.33%
(c) Retirement plan 16.33%
(d) Unit link plan 16.33%

60%

50%

40%

30%

20%

10%

0%
Child plan Health plan Retirement p lan Unit link plan

Graph-10

ANALYSIS:

The above data shows that only 50% people have invested their money in child
plan, 16.33% people has invested in health plan, 16.33% people in retirement plan,&
16.33% people in unit link plan.

84
TABLE-11

Response when policy offered of Reliance life insurance

(a) Yes 19.2%

(b) No 80.8%

90.00%

80.00%
70.00%
60.00%

50.00%

40.00%
30.00%
20.00%

10.00%
0.00%
Yes No

Graph-11

ANALYSIS:

The above data shows that only 19.2% people would like to take policy of Reliance
life insurance & 80.8% said no.

85
TABLE-12
 Reason for negativity

(a) High premium 6.5%

(b) Not now 13.15%
(c) Not attractive 14.47%
(d) Only LIC 65.78%

70.00%
60.00%
50.00%
40.00%
65.78% Series1
30.00%
20.00%

10.00% 14.47%
13.15%
6.50%
0.00%
C
w
m

e
t iv

LI
no
iu

ac
em

y
t

nl
No

tr
pr

O
at
h

t
No
g
Hi

Graph-12
ANALYSIS:

The above data shows that only 6.5% people said that policies has high premium,
13.15% people said that thay don`t want to take just now, 14.47% people said that
policies are not attractive & 65.78 % people said that they want only LIC policies.

86
FINDINGS
 FINDINGS OF STUDY

• In the survey of Muzaffnagar I found that Muzaffnagar has a potential for life

insurance.

• People of the Muzaffanagar wants to invest there money in life insurance.

• Most of the people are investing their money in LIC.

• People has dought about the safety & do not believe very much in private

companies.

• Very few persons know about the policies of Reliance life insurance.

• And very few persons has policies of Reliance life insurance.

• And a very big percentage of people are not interested in policies of Reliance

life insurance. So company has a big market to work.

87
SUGGESTIONS
 SUGGESTIONS

• The company should provide more awareness in market through

Advertisement, Adviser & S.M. of company.

• Company should make more communication and make more interest of

people in policy so they can improve knowledge about the policies of
Reliance life insurance

• Company should try to do something to win the faith of people.

• Company should try to do something about the premium & about the
attractiveness of policies should try to change the mind of people through
teams of Adviser & S.M .

• Over all suggestion to the company is that they have competition with LIC in
the market . So they should try to give more awareness about the policies and
about the company so they can win the faith of people.

88
LIMITATIONS
 LIMITATIONS

In every project/study undertaken limitations arises and are inevitable.

Similarly, in this project several limitations appear, which would have been eliminated
but for constraints of time, accessibility to information it has not been possible.

● This project report is based on the information given by the head or Unit Manager’s
of the centers. The information is also collected through some magazines, newspapers
and e-mails. Some respondents were not interested in giving answers as they were
appearing to be busy.

●In fact, this project report involves human processing and analysis. Therefore, there
are chances of human error.

●One of the major limitations is time bounded ness. The Management Trainees are
restricted to a training of 6-8 weeks only ,and much of the time is spent in Coaching and
training itself and not in the field.

●Trainees are provided with limited resources. No financial aid or stipend is being paid
to them, so they can not spend much on meetings with the potential customers. It can be
also treated as a limitation of Cost Bounded ness.

●Trainees are not being treated as part of the organization. They are merely considered
as trainee.

●Last but not the least is the limitation of Area bounded ness. Trainees are restricted to
a particular area, near by to the office of the organization.

89
BIBLIOGRAPHY
 BIBLIOGRAPHY

Kotler. Philip, Keller. Kevin,

Marketing management, Prentice hall India, 12th Edition, 2006

Kevin.j.clancy, Robert.s.shulmen,

Marketing myths that are killing business, McGraw hill(New york),

4th edition, 1994

Chrsto.f. lovelock Jachen Writz,

Service Marketing, Pearson education, 5th edition.

Saxena rajan m

Marketing management, Tata Mc Graw hill, 2nd edition, 2004

Levin.m.david Bearson. I.mack

Business statistics, Pearson education, 2nd edition-2001.

90
I took some important guide regarding the company from Mr.Anil kumar Yadav, as he

was our project guide.

Websites referred were

www.relinacelife.co.in

www.irdaindia.org

WWW.INSURANCE.IND.COM

91
APPENDIX
 QUESTIONNAIRE

Name of Customer : _________________________

Address : _________________________

Phone Number : _________________________

Occupation : _________________________

Q.1 Where do you invest your money ?

(a) Bank
(b) Post office
(c) Life insurance company
(d) Capital Market

Q.2 Do you think it is good to invest your money in Life insurance Company?
(a) YES
(b) NO
(c) Can ‘t say

Q.3 In which Life Insurance Company you have invested your money ?
(a) LIC
(b) Reliance Life Insurance
(c) ICICI
(d) Other

92
Q.4 Do you know ? Where in your city Reliance Life Insurance has its office?
(a) Yes
(b) No

Q.5 (a) Do you think it is safe to invest your in Reliance Life Insurance ?
(a) YES
(b) NO
(c) Can ‘t say

Q.5 (b). if no,then way ?

(a) Private Company
(b) New Company

Q.6. (a) Do you know about the policies of Reliance Life Insurance ?
(a) Yes
(b) No

Q.6 (b) If no, then why ?

(a) Not Communicate
(b) Not Interested.

Q.7 (a).Do you have any policy of Reliance Life Insurance ?

(a) Yes
(b) No

93
 Q.7 (b) If yes, which one ?
(a) Child Plan
(b) Health Plan
(c) Retirement Plan
(d) Unit Link Plan

Q.8 (a) If you don’t have then would you like to take policy of Reliance Life
Insurance?
(a) Yes
(b) No

Q.8 (b) if no, then why ?

(a) High Premium
(b) Not Now
(c) Not Attractive
(d) Only LIC

94