abhi final pro (1)

8/8/2019 Abhi Final Pro (1)

1/44

MBA Programme

CHAPTER 1

METHODOLOGY

INTRODUCTION:-

Everyone has to take some precautionary measures to protect one self

from any unexpected events that might occur. Everybody hopes to live a full till

rise of old ages. No one worries about what happens if fate cuts life starts? Then

what about children, about their marriage? How will lifes continuity be ensured

for them? What if sudden disability or illness puts someone out of action? Who

would pay the mounting household bills in all crises, situation, money is needed

to let life continue smoothly even after the crises. Life insurance is the planning to

protect living styles of individuals & provides them a safe future.

There is no control over stability in life, but something can be controlled.

This is planning for lifes contingency. Saving through life insurance guarantee

financial protection against risk of death of policyholder. Life insurance

encourages thrift. A long term saving can be made in a relatively painlessmanner of easy installment facility.

Tax relief in income tax is available for paid by way of premium for life

insurance subject to the income tax rules in force.

DEFINITIONS:-

Insurance is a cooperative device to spread the loss caused by a particular risk

over the number of persons who are exposed to it was agree to insure

themselves against the risk.

R. S. SHARMA

SIBER School of Management

1


2/44

MBA Programme

The above definition clearly shows that insurance is co-operative device to

spread the loss causes by a particular risk over a number of people who are

exposed to it and who agree to insure themselves against the risk.Insurance not only equalize losses and distributes heavy sudden losses

over a long period of time and it takes the amount of loss from a business in such

an amount and at times that no essentials want is left unsatisfied.

STATEMENT OF THE PROBLEM:

The basic idea in undertaking this project was Life Insurance which was

either being divided into those who were having a life insurance policy or those

who were not having any life cover. All those who were policy holders of Life

Insurance were being served only by one government player i. e. Life Insurance

Corporation and the other lot (Noon Policy holders) was not at all cared for by

that company, until recently. Due to this fact and reluctance of LIC to develop its

market, and overall large number of population of the country being uninsured, it

was thought that this sector be throw open to private player.

This would lead to, in the expansion of the market and all the uninsured

insurable population in insured of the life cover. This will help in developing the

human development index of the country and will make India one of the selected

world countries enjoying the privilege of giving a life insurance cover to most of

its people.

Keeping this in mind the Insurance Regulatory and Development Act was

initiated and insurance sector was throw open to the private players in the year

2000.

The present study is related to the preferences of the consumers withinsurance sector.

Therefore the statement of the problem is


2


3/44

MBA Programme

STUDY OF INVESTMENT OPTIONS AND CONSUMER

PREFERANCES WITH SPECIAL REFERANCE TO PUNE CITY IN

RELIANCE LIFE INSURANCE.

OBJECTIVE OF THE STUDY

The present research study was undertaken with the following objectives:

1. To evaluate the awareness level regarding investment option in Pune.

2. To study the Buying Behavior of the Customer of Life Insurance policies in

the above stated region.3. To find out which insurance plan is mostly preferred.

4. To find out the preferences of the insurance plan from the customers.

5. To find out satisfaction level of people with their respective insurance

company.

SCOPE OF STUDY

After the Liberalization of Indian, the world recognized India as a big

market. Privatization of the insurance sector opened the doors to the untapped

market of 65 cores to the private sector. The new entrants faced a strong

competition from the existing market leader L.I.C.

The project undertaken is a market survey pertaining to the consumer

behavior towards the Life Insurance policies in Pune.

As far as customer satisfaction of different Life Insurance Companies is

concerned the conclusion and suggestion derived from study will be useful to

widely spread customer and executives of Insurance companies to improve

working efficiency in todays cutthroat competition. This study is useful to know

the competition faced by insurance companies. This study helps us to know the

most preferred insurance policy by the customer. This study emphasizes on

market share of insurance companies. This analysis clearly states the role of


3


4/44

MBA Programme

investment of people from different income level. This analysis gives a picture of

various loopholes in marketing of services

DATA COLLECTION

For the purpose of data collection for the study following methods were

undertaken.

Primary Data

Secondary Data

PRIMERY DATA

Sample size:

Sample of 100 respondents were identified on the basis of different

occupation, profession for the study.

Sample area:

The survey is conducted in different regions of Pune city such as F.C.

road, J. M. road, Shivaji nagar, Gokhale nagar etc.

Questionnaire:

Questionnaire was prepared by keeping in line with objectives of the

study. Totally 21 questions were prepared with the consultation of the guide. The

format of the question is yes or no, multiple choice questions. An open ended

question was also included in the questionnaire.

Interview


4


5/44

MBA Programme

The questions from the questionnaire were posing to target respondents

and their response were recorded and further analyzed and interpreted. Branch

officers and customer were interviewed for arriving at more accurate conclusions.

SECONDARY DATA

The secondary data was collected through the sources like various Books,

Periodicals, Magazines, Web sites, and Journals etc.

DATA PRESETATION AND ANALYSIS:

1. Tabulation:

The data collected from respondents through questionnaire and

interviews are tabulated. It gives clear schematic presentation.

2. Graphical Presentation:

The tabulated data is represented graphically in order to provide

easy interpretation.

LIMITATIONS:

1. The study relates to Pune city only.

2. The study is limited to 100 respondents only.

3. Because of sensitivity of topic certain information could not be collected.


5


6/44

MBA Programme

4. Some of the respondents could not answer the questions properly

because of lack of time and awareness about the company and their reluctance

to answer.

CHAPTER 2

CONCEPTUAL BACKGROUND

CONCEPTUAL BACKGROUND

CONCEPT:

SERVICE MARKETING

Service is any act or performance that one party can offer to another that is

essential intangible and does not result in the ownership of anything. Its

production may or may not tie to a physical product.

THE FOUR TYPES AREA:-

Pure Tangible Good

Here Services are accompanying the product. For example any consumable

products like milk, bread etc.

Tangible Good Which Accompanying Services :

Technologically sophisticated the generic product like durable consumergoods e.g. car, fridge etc. the more depend are it sells on the quality and

availability of its accompanying customer services. Such companies are more

intensive than manufacturing intensive.


6


7/44

MBA Programme

Major Service with Accompanying Minor Goods And Services :

The Services include the major along with some additional services or

supporting goods Pure Service :

Here the offer consists primarily of a service e.g. Practice.

MARKETING STRATEGIES FOR SERVICES FIRMS:-

Service Firm should concentrate more on the following activities:

Marketing Mix within marketing department.

Should have an over all sales plan. Sales training program.

Market research and consultants should be undertaken.

More should be spent on marketing when expressed in percentage of

gross sales or revenue

Service business is difficult to manage using traditional marketing

approach. When customers enter the organization he sees not only the physical

environment consisting of building, interior, equipment etc. but also sees other

customers and contact personal. Thus the service outwards highly influenced by

a host of highly variable elements. Internal marketing and Interactive Marketing

along with also influence it for P's of marketing. External marketing describes the

Normal work done by the company to prepare price, distribute and promote the

service to customers. Internal marketing describes the work done by the

company train and motivate its internal customer satisfaction can be attained at

highest level.

Types of Marketing in Service Industries.

Company


7


8/44

MBA Programme

Internal Marketing External Marketing

Employees Customers

Interactive Marketing

Marketing Of Financial products And Services:-

Introduction:

All aspects of financial service Industry are undergoing extraordinary

changes throughout the world. These changes intensify competition; warrant

new pattern of management thinking and increasing customization of financial

services. The principal factors which are affecting the financial services firms

are:

Deregulation of financial markets.

Advancement in information technology.

Globalization.

Increased Customer expectation.

Rapidly growing financial transactions and volume.

Key Issues In Marketing Of Financial

Services / Products:

The trends and forces characterizing the contemporary financial services

industry, along with special qualities of services and associated requirements for

their marketing, all warrant highly thoughtful, skilled and committed approaches

to the marketing of financial services.

1) Customer Focus:


8


9/44

MBA Programme

This principal cornerstone for firms seeking to adopt their marketing to rigors of

financial; services. Today's market demands that a strong customer focus be

incorporated in to all aspects of: The marketing, management and back office

Operations.

Innovation

Effective deliveries do design to satisfy

Customer's need.

2) Identifying attractive growth opportunities:

In the intensive competitive environment, high quality Telecommunications

enables numerous competitors to learn

Simultaneously about international developments and conditions while

also learning relatively early about each others marketing programs and tactics.

Business success depends largely on competitor ability to identify new

opportunities for business development and realistically project the anticipated

risk and return associated with each opportunity before deciding weather to

pursue it.

3) Differentiation:

A tremendous premium is available to competitors who can achieve

positive differentiation for their products in the minds of target customers, in this

time of intense industrial competition, customer ability to choose among

competing vendors and relative ease of copying strategies and services.

Successful differentiation should be based on what the target customer values

Be driving from combination of tangible and intangible attributes of

financial service firms.


9


10/44

MBA Programme

Be perceived as providing superior value

Be priced competitively

It must have a customer value, a customer focus combined with commitment

and skill to deliver to customer through its product features, product line delivery

system, selling efforts and communications.

4) Innovation:

Given the multitude of industry competitors, the relative case of

copying competitive programs and ever more demanding customers, financial

service firms must be able to innovate effectively to avoid competing only on

price. However in their rush to differentiate, financial service firms must

concentrate on what the customers are requiring and how effectively and

efficiently they can provide the same.

5) Ability to operate in unfamiliar markets:

In the present competitive environment, financial services firms are

propelled into considering and entering into new market arenas, some time

with new untested services and approaches. Some of these forays are

motivated by defensive needs to protect existing client relationship and

market franchises; others are undertaken for offensive reasons, to seize

newly recognized opportunities or to diversify the firm's revenue or funding

base.

6) Quality service:Increasingly high quality services are now available industry wide, due to

proliferation of competitors offering, the increased sophistication and

demands of customers and the enhanced general capabilities of financial

service providers. Quality of service is frequently most important ingredients


10


11/44

MBA Programme

that enable competitors to distinguish it and deliver superior value to targeted

customers. Following are ten factors principally determining the quality of

service.1. Reliability

2. Responsiveness

3. Competence

4. Access

5. Courtesy

6. Communication

7. Creditability

8. Security

9. Understanding the customers.

10.Tangibles.

7) Professionalism:

As in most competitive industries, customers tend to expect and

value professional standards and behavior from vendors of Financial services,

Professionalism comprises of ' Knowledge of customers, requirements and

behavior, ability to communicate in language acceptable to customers familiarity

with financial service firms capabilities, ability to meet customers requirements

through financial engineering that matches those requirements with institution's

capabilities, maintenance of high ethical legal and standard and pertinent

knowledge of competitive and regulatory environment.

KEY CONCEPTS AND DEEINITIONS IN LIFE INSURANCE INDUSTRY.

What is Whole Life Policy?


11


12/44

MBA Programme

A Typical whole life policy runs as long as the policyholder is alive, In other

words, the risk is covered for the entire life of the policyholder, which is why they

are known as a whole life policy.The policy monies and the bonus are payable only to the nominee of the

beneficiary upon the death of the policyholder. The policyholder is not entitled to

any money during his or her own lifetime i.e. there is no survival benefits. This

represents a serious drawback in the case of whole life policies. Suppose, for

instance, you buy a whole life policy at the age of thirty when your children are

young and the family needs protection. Conceivable, by the time you are 55 or

60 or so the children may be well settled, no longer truly needing the protection

the whole life policy provides. One the other hand, you would probably require

the money for yourself and your wife in your retired life but this would not be

possible since the sum assured is payable only when the policy holder dies.

One the whole, whole life policies may be best considered after the age of 45

either for the purpose of leaving behind an estate for one's heirs or for covering

the possibility of premature stoppage of pension income in the case of relatively

early after retirement

What Is Endowment Policy?

Endowment policies cover the risk for a specified period at the end of which

the sum assured is paid back to the policyholder along with the entire bonus

accumulated during the term of the policy. It is this feature-the payment of the

endowment to the policyholder upon the completion of the policy's term-which

rightly accounts for the popularity of endowment policies.

Typically, one's responsibility for the financial protection of the family reduces

significantly once the children are grown up and independently settled. The

focus then shifts to managing a smaller family-perhaps only oneself and one's

spouse-after retirement. This is where the endowment-the original sum assured


12


13/44

MBA Programme

and the accumulated bonus-received back come handy. You can either use the

endowment amount for buying an annuity policy to generate a monthly pension

for the whole life, or put it an any other suitable investment of your choice. Thisis the major benefit of an endowment policy over a whole life one.

What is a Term Policy?

Term policies; cover only the risk during the selected term period. If the

policyholder survives the term, the risk covers to an end.

Term policies; cover only the risk during the selected term period. If the

policyholder survives the term, the risk cover comes to an end.

A term plan is designed to meet the needs of people who are initially unable to

pay the larger premium required for a whole life or an endowment assurance

policy, but they hope to be able to pay for such a policy in the near future.

Hence, it may be desirable to leave the final decision regarding the plan to a

later date when a better choice could be made.

No surrender, loan or paid-up values are granted under these policies

because reserves are not accumulated. If the premium is not paid with the days

of grace, the policy will lapse without acquiring a paid-up value.

However, a lapsed policy may be revived during the lifetime of the life assured

but before the expiry of the period of two years from the due date of the first

unpaid premium on the usual terms. Accident and / or Disability benefits are not

granted on policies under the Term plan.

What is a Money Back Policy?

Unlike ordinary endowment insurance plans where the survival benefits

are payable only at the end of the endowment period, money back policies

provide for periodic payments of partial survival benefits during the term of the

policy, of course so long as the policy holder is alive.


13


14/44

MBA Programme

An important feature of this type of polices is that in the event of death at

any time within the policy term, the death claim comprises full sum assured

without deducting any of the survival benefit amounts, which may have alreadybeen paid as money-back components. Similarly, the bonus is also calculated

on the full sum assured.

What is Joint Life Policy?

Joint life policies are similar to endowment policies in as much as these

policies also offer maturity benefits to the policyholders, apart form covering the

risks as all life insurance policies.

But these are categorized separately as these cover two lives together

thus offering a unique advantage in some cases; notable, for a married couple or

for partners in a business firm.

What Are Group Insurance Plans?

Group Insurance offers life insurance protection under group policies to

various groups such as employer- employee, professionals, co-operatives,

weaker sections of society etc. It also provides insurance coverage to people

under certain approved occupations at the lowest possible premium cost.

Besides providing insurance coverage, it also offers group schemes to

employers, which provide funding of gratuity and pension liabilities of the

employers.

What are Special Plans?

Special plans are insurance policy plans available from the national

insurance providers to serve the needs of citizens that cannot be commonly

classified or segregated.


14


15/44

MBA Programme

These special plans are designed to satisfy needs ranging from debt

clearance in event of the death of the insured to financial aid in the event of a

medical mishap. Special plans also provide financial assistance for handicappeddependants as well as emergency surgery required if and when a medical

condition arises.

THE CURRENT MARKET SHARE OF PRIVATE COMPANIES IN INDIA FOR

YEAR 2005- 2006

The importance of private health insurance and the significance of private

liability and its insurance. Most of the remaining industrialized countries recorded

levels of between 2.5% and 4.0%. In accordance with the average weighting of

the industrialized countries, 3.3% of global gross domestic product was spent on

insurance premiums for non-life insurance in the year under review

CHAPTER 3

COMPANY PROFILE

Company Information :-

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd.

of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias

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.


15


16/44

MBA Programme

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 Life Insurance is another step forward for Reliance Capital Limited to

offer need based Life Insurance solutions to individuals and Corporatist.

Reliance Life Insurance is an associate company of Reliance Capital Ltd., which

along with its associates has acquired 100% shares in AMP Sanmar Life

Insurance Co Ltd.

O UR

VISION

Vision : Empowering everyone live their dreams

Mission: Create unmatched value for everyone through dependable,

effective, transparent and profitable life insurance and pension plans.

RELIANCE

Anil Dhirubhai Ambani Group

Reliance Capital Limited

Reliance Capital is one of Indias leading and fastest growing 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, life and

general insurance, private equity and proprietary investments, stock broking and

other activities in financial services.

Reliance Communication Limited


16


17/44

MBA Programme

Reliance Communications is Indias largest information and communications

service provider with over 30 million subscribers. The company is the realization

of our founders dream of bringing about a digital revolution that will provideevery Indian with affordable means of communication and a ready to access.

Reliance Energy Limited

Reliance Energy Limited, incorporated in 1929, is a fully integrated utility

engaged in the generation, transmission and distribution of electricity. It ranks

among Indias top listed private companies on all major financial parameters,

including assets, sales, profits and market capitalization.

Reliance HealthIn a country where healthcare is fast becoming a booming industry, Reliance

Health is a focused healthcare services company enabling the provision of

solution to Indians, at affordable prices. The company aims at providing

integrated health services that will compete with the best in the world. It also

plans to venture into diversified fields like Insurance Administration, Health care

Delivery and Integrated Health, Health Informatics and Information Management

and Consumer Health.

Reliance Entertainment

Reliance Entertainment is spearheading the Groups foray into the media and

entertainment space. Reliance Entertainments core focus is to build significant

presence for Reliance in the Entertainment eco-system: across content and

distribution.

Reliance Power

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and

is established to develop, construct and operate power projects domestically and


17


18/44

MBA Programme

internationally. The Company on its own and through subsidiaries is currently

developing 13 medium and large sized power projects with a combined planned

installed capacity of 28,200 MW, one of the largest portfolios of power generationassets under development in India

Reliance Life Insurance

Presence in over 150 branches in India.

Forayed into insurance industry by acquiring AMP Sanmar

Over 1, 40,000 satisfied customer.

Company was launched on Feb 2006.

One of the fastest growing private sector life insurance in India.

Accelerated Growth.

Assets under management Rs. 937 Cr.

Shareholder capital base of Rs. 308 Cr.

Over 1500 Sales Team Managers

Decentralized Operations


18


19/44

MBA Programme

Insure in minutes at any CCC

CCCs fully empowered to

Issue policy end to end (from collection to issue and preparer bond)

IT enables process geared to insure in few minutes from start to finish.

Only pvt. Insurance co. to do so.

Black box Decentralized underwriting

Proprietary IT software for underwriting.

Enable us to also decentralize underwriting.

Maintains quality with standardization across the country.

Efficient systems, process & speed of response has ensured lowest

number of companies from customer to IRDA

PRODUCTS TO SUIT YOUR NEEDS

INDIVIDUAL LIFE PLAN

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


19


20/44

MBA Programme

your future dreams. It lets you decide how much you would you like to save as

your sum assured based on your current financial position & your expected future

expenses. On maturity receive sum assured plus bonuses.Reliance Cash Flow

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. Easy liquidity, got periodic cash flows at the end of the fourth year &

there after at the end of every three year.

Reliance Child Plan

Risk protection for you during the term of the policy. Also accumulated bonus at

the end of the term, 25 % sum assured payable as the lump sum benefit. All

future premiums are waived in the event of unfortunate loss of life. Guaranteed

fixed benefit continues even after loss of the life of policy holder. More value for

your money by the way of High Sum Assured Rebate.

Reliance Whole Life Plan

Unmatched flexibility to suit your changing needs. A unique option of combining

the protection of life insurance attractive prospects of investing in securities. Offer

high premium allocation rate &lower fund management & administration charges.

It is one of the good retirement plans.

Retirement Plan

Reliance Golden Year Plan

Retirement means different thing to different people, while some want to relax &

take a trip around the world, some want to start up the venture of their own &

pursue dream harnessed for years.Reliance Golden Year Plan Value

The power to make your autumn years special lies only with you. Reliance

Golden Year Plan Value gives you the power & right kind of solution. Retirement


20


21/44

MBA Programme

plan that allows you to save systematically &generate the much needed surplus

to make your olden years look golden.

Reliance Golden Year Plan Value PlusProtect your loved ones & make your money grow faster with the advantage of

low fund management &fund administrative cost. It offers high premium

allocation rates with one time premium payment.

Unit Linked Plan

Automatic Investment Plan

A smart plan which adapts to your changing risk profile with increasing age.

Option to lower the average cost of units through systematic transfer of your

funds. Flexibility to switch between funds and plans. Options for additional

Insurance cover available through riders.

Reliance Money Guarantee Plan

The Reliance Money Guarantee Plan is a Unit Linked product addressing

comprehensive need to strike that perfect balance of Protection and Savings that

you deserve as you grow successfully. The Reliance Money Guarantee Plan is a

Regular Premium Unit Linked Policy which guarantees the entire premium

(including premiums for top- ups) paid by you. This is a plan which helps you

reap all the benefits of a rising market simultaneously protecting you from the

downside risk of the market.

Health plus Wealth Plan

Reliance Wealth + Health Plan, a health insurance plan underwritten by Reliance

Life Insurance Company Limited (Reliance Life), is designed to work inconjunction with contributions towards Savings. The uniqueness of this plan is

that it not only provides benefits for covered injuries but also for other injuries by

encashment from the unit Fund. This plan from Reliance Life offers the

Hospitalization and Surgical Benefits and also covers Critical Illnesses. In short


21


22/44

MBA Programme

this plan provides you with a personalized quality Health cover that fits your

Lifestyle.

Risk / Protection Plan

Reliance Term Plan

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. Get higher

insurance protection at economical rates. Optional accidental & disability rider to

enhance protection. Economical way to protect your family against financial

liabilities like loss of income and outstanding loans etc. Discount on premiumrates for women. Suitable for business owners who want to cover the life of their

key employees.

Reliance Special Term Plan

Get the insurance protection at economical rates. Basic premiums paid will be

refunded at maturity. Choose to pay regular or single premium. Discount on

premium rates for women Choose to add the benefits of two riders to your Policy

Critical Illness Rider and Accidental Death Benefit & Total and Permanent

Disablement Rider.

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. Fixed multiple of 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


23/44

MBA Programme

Reliance Group Leave Encashment Plan

Flexible Premium Payment Options, to give you the flexibility to pay premiumsdepending on your cash flows. Flexible Investment Options, that offers an

opportunity to spread your investment risk across a range of investment options

made available to you, depending on your risk appetite and your investment

objectives. Switching of funds: Transferring (switching) assets from one

investment fund to another can be done any time. You can make up to 52

switches free of charge each year. Flexibility to select the level of life insurance

cover (subject to a minimum of Rs.1,000/- per employee) thus, promising

protection on the life of your employee, at a nominal cost.

Classification of occupation:

Risk Class I:

You are mainly engaged in administrative or managing functions,

Accountant, Doctor, Lawyer, Architect, Consulting Engineer, Teacher, and

Banker or primarily engaged in a similar occupation.

Risk Class II:

You are engaged in manual labor, garage or motor mechanic, machine

operator, paid driver of a car, truck a lorry or other heavy vehicles cash carrying

employee, woodworking machinist, or you are a Builder, Contractor, Engineer

superintending functions, veterinary doctor, or engaged in a similar occupation.

Risk Class III:

You are working in underground mines, in explosive magazines or in

electrical installations with high tension supply or you are a jockey,


23


24/44

MBA Programme

Circus personnel, engaged in racing wheels or horseback, big game

hunting, mountaineering, winter sports, skiing, ice-hockey, river rafting, polo or in

a similar activity or occupation.

Special notes:

The policy can be issued to persons aged between 18 and 65. In case of

children, they need to be aged between 5 and 19 to become eligible for

coverage. The total sum insured is normally restricted to 70 times of Insured's

monthly average earnings. The minimum premium is Rs.500

Documentation required

Life insurance in contract between propose and insurer. Like any other

contract, it also subjected to certain terms and conditions. There being more than

one person concerned with the benefits under a policy. Some time a depute may

arise. It is therefore important that there is a proper documentation. Given below

are some of the important documents relevant for considering the proposals are,

1. Proposal from: - It is to be completed by the propose in his own

handwriting and signed due by authenticated by the witness.

2. Identities of propose concerned must be documented to records their

names, address, and status in relevant to contract.

3. Personal statement: - It includes family history and information about

historical data of health.


24


25/44

MBA Programme

4. Agents report: - It include true information about person i.e. source of

income, previous insurance history if any, recommendation for acceptance

of policy.

5. Medical report.

6. Age proof: - if required to determine risk and to calculate premium.

CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION


25


26/44

EXISTING OWNER OF LIFE

INSURANCE POLICIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

YES NO

MBA Programme

The present study is related to consumer preferences towards the insurance.

Study was taken in Pune city with sample of 100 respondents. Data analysis hasdone on the basis of the questionnaire. The analysis of data as follows

Table No. 1 Number of peoples having life insurance policy

Table no. one indicates that out of 100 sample population 76% of the people do

posses insurance policies which is a very healthy percentage, where as 24%

people do not have any policies. It means that majority of peoples having

insurance policies. Where as 24% of sample population has no insurance policywhich is giving a huge potential to the companies to strike for it.

Table No. 2 Table showing amount life assurance


Having Policy No. of consumers

Yes 76%

No 24%

26


27/44

No. of respondents

9% 16%

35%

24%

16%Below 1 lack

1 lack to 2 lack

2 lack to 5 lack

5 lack to 10 lack

Above 10 lack

MBA Programme

Amount No. of Respondents

Below 1 lack 9%

1 lack to 2 lack 16%

2 lack to 5 lack 35%5 lack to 10 lack 24%

Above 10 lack 16%


27


28/44

36

2016

11

17

0

5

10

15

20

25

3035

40

No. of

respondent

LIC ICICI

Pru

Any

other

Name of the company

Which Company's Policy

MBA Programme

From table no. two it seems that around 40% of peoples are having life insurance

of more than 5 lack. It may be due to high income group in Pune city. About 35%respondents are with 2 to 5 lack assurance. Where as 9% is with below 1 lack

assurance. Life assurance of 5 to 10 lack is also main contributor in the graph.

On the other hand 16% of both 1 to 2 lack & above 10 lacks are there. The above

study tells that the most of the life assurance is between 2 to 5 lacks.

Table No. 3 Table showing respondents policies of different companies

Name of the company No. of respondents

LIC 36%

Bajaj Allianz 20%

ICICI Prudential 16%

Reliance Life 11%

Any other 17%

Table no. three shows that 36% of the respondents are having the insurance of

LIC which is Government Company hence peoples are having more faith on this

company. Today they are the leading insurance company in India. But private


28


29/44

AWARENES OF INSURANCE AS TERM

YES

78%

NO22%

Y

N

MBA Programme

companies are also growing well. Then there is number of the Bajaj Allianz

having 20 customers. ICICI Prudential is the next to Bajaj Allianz having 16

respondents. Reliance Life is the third in the private sector having 11 customers.Remaining group of respondents is of other companys policy holder such as

Max New York, Birla Sun Life, etc.

Table No. 4 Showing awareness of insurance as life term investment.

Table no. four shows that out 100 respondents, 78% of the sample population

said that they know what insurance means with positive frame of mind. Where as

only 22% population was not aware of insurance as a term investment.


No. of respondents

Yes 78%

No 22%

29


30/44

0

5

10

15

2025

30

35

Selected Plan

Individual Life

Retirement

Unit Linked

Risk / Protection

MBA Programme

The reason being associated it was they never felt the need of

insurance of self or their family members. The other reason associated was they

never thought of purchasing the insurance. The people can be made aware ofInsurance by advertisement in mass media and seminars putting forward the

importance of insurance.

Table No. 5 Showing plan selected by respondents

Name of plan No. of respondents

Individual Life 17%

Retirement 27%Unit Linked 24%

Risk/Protection 32%

In the above table there is the information about plan selected by the group of the

respondents. The selection is based on their needs. Who wants to more returns

they have invested in the unit linked plan where as who wants secure from

accidents they are invested in the risk / protection plan. 32% customers are

invested in the risk protection plan, second number is of retirement plan having


30


31/44

No.of Respondents having risk apatite capacity

46%

36%

18%

Low

Medium

High

MBA Programme

27% customers. Individual plan is less preferred by the peoples having only 17%

customers. Unit linked plan is good one for high returns having 24% number of

respondents.

Table No. 6 Table showing risk apatite capacity of the respondent

Risk No. of Respondents

Low 18%

Medium 36%

High 46%

This table shows that the risk apatite capacity of the consumers. More

consumers are looking for lower risk. The percentage of low risk apatite

consumer is 46%.Due to high risk in returns the number of consumers in high

risk category is low that is 18%. Where as remaining 36% consumers are ready

to face medium risk because in this risk is equal to returns. At high risk there are

high returns. On the other hand at low risk there is low return. The above table


31


32/44

16

25

13

9

37

05

10

15

20

25

30

35

40

Benefits in Plans

Tax Benefits

Top Ups

Partial Withdrawals

Switching Options

Higher Returns

MBA Programme

shows that less number of peoples are ready to face high risk. Where as large

number of peoples are ready to face low risk due to safe returns.

Table No. 7 Table showing different benefits in plans

Benefits No. of Respondents

Tax Benefits 16%

Top Ups 25%

Partial Withdrawal 13%

Switching 9%

Higher Return 37%

This table shows that benefits are available in the different plans. The large

number of peoples is attracted to the plan which will give higher returns i.e. 37%.Also plan which gives the top ups are likely by the consumers. Less number of

peoples 9% are attracted towards switching option plan. Tax benefits option in a

plan also most preferred by the investors. The number of these investors is 25%.

Lastly partial withdrawal plan is attracted by 13% peoples.


32


33/44

81%

12%7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

YES NO CAN'T SAY

MBA Programme

Table No. 8 Table showing opinion of respondents about LIC will loose itsmarket share in the future.

Percentage of Respondents

Yes 81%

No 12%

Cant Say 7%

To know people views about future of private insurance players and its impact

on LIC, 81% of sample population said YES that LIC will loose of its market

share in future. Most common reasons associated by them were as follows:-

As this sector will now be served by both LIC and private companies and

these private companies will give better services than LIC and better

returns too

Services of LIC are decorating day by day.

Premium rates of LIC are more than what private players charges.

There is lot of product flexibility among private players.


33


34/44

People knowledge about Reliance Life Insurance

Company

83%

17%

Yes

No

MBA Programme

SPECIFIC INFORMATION

Table No. 1 Table showing peoples knowledge about Reliance Life

Insurance


Yes 83%

No 17%

The above table and graph depicts that out of 100 respondents 83% respondents

were aware of Reliance Life Insurance which is a very good indicator for the

company awareness level is concerned. So lots of opportunities are there for

sale the policies. Only 17% people were not aware of this company, which

company can overcome by more advertisement.


34


35/44

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

YES NO

PEOPLE AWARENESS ABOUT THE PRODUCT

OFFER BY COMPANY

MBA Programme

Table No. 2 Table showing respondents knowledge about products offered

by company.


Yes 81%

No 19%

The

above table depicts a very close picture about the company products out of 100

respondents 81% of people have seen the products which represents a good

hard work done by company agents in the city.

The other side of the picture is the 19 i.e. 19% respondents were not

aware about company products offered by the company. These people can be

made aware by doing by product advertisement and making the existing network

of agents more strong.

Table No. 3 Table showing peoples awareness about premium rates offered

by the company.


35


36/44

Peoples awareness about company's premium

rates

Yes

52%

No48%

Yes

No

MBA Programme


Yes 52%

No 48%

The above table depicts that out of 100 respondents only 52 i.e. 52%

respondents were aware of premium rates of the company, which shows that

awareness level about premium rates of the policies is very low and this is the

main strength of the company and company should make more aware about its

premium rates which are very low as Compared to LIC and other private players.

Table No. 4 Peoples reasons behind purchasing life insurance policy.


36


37/44

MBA Programme

REASON BEHIND PURCHASING LIFE INSURANCE POLICY

96% 94%

75%65%

4%

0%

20%

40%

60%

80%

100%

120%

INCOME TAX

SAVING

RISK

COVERAGE

INVESTMENT

OPTION

SAVING

PURPOSES

CAN'T SAY

The very basic purpose of purchasing insurance product by people is to save

income tax, as it helps to get deduction from tax. It is very clear from the above

table that 96% of population purchase insurance only to save income tax.

The 94% of sample population has opinion for risk coverage which is the

basic purpose of purchasing insurance by people. These are the basic purpose

served by insurance.

On the other hand 65% of sample population purchases the insurance for

saving purpose. So that at the maturity of the policy they get lump sum amount

which they can invest in any way. Where as 75% of sample population invest in

insurance as investment option, which is another angle to view for the purchase

of the insurance.

Insurance can publicize more on investment and saving purpose so that

people invest in and purchase more policies. Only 4% of sample population has

no opinion on this issue.

Table No. 5 Table showing future prospective customers


37


38/44

FUTURE PROSPECTIVE CUSTOMER

YES

64%

NO

36%

YES

NO

MBA Programme


Yes 64%

No 36%

Insurance acts as guard for a person and his family members. The above table

depicts that out of 100 respondents 64 respondents are planning to purchase the

policy i.e. 64% are willing to purchase the policy which is a good sing for the

company for increase the sales but still out of 100 respondents 36% people are

not willing to purchase the policy. For that reasons associated was that they

already had an insurance policy, advertisement highlighting the importance of

insurance can bring down the percentage. In disguise these were the future

Leeds given to the company during the survey period.

CHAPTER 5

FINDINGS AND SUGGESTIONS


38


39/44

MBA Programme

FINDININGS

It is found that most of the customer who have taken insurance are from the

age group between 18-45 which can be considered as target group of

customer.

Most of the customer attracted toward this insurance sector belongs to

salaried class having monthly income between Rs 10000-20000.

Advertisement is mostly use media for creating awareness, which is proved

quite effective.

Because of revolution in insurance sector (Market-link-plans) most of

customer attracted toward investment plus insurance plan.

Most of people have taken endowment policies because there are thetraditional plans having low premium.

Most of the customers taken policies for tax saving & good returns purpose.

The personal opinion about Reliance Life Insurance Co. Ltd. of respondents

is good as compared to its competitors.

SUGGESTIONS


39


40/44

MBA Programme

Reliance Life Insurance Co. Ltd. should concentrate on self-employed

professional and self-employed non professional class of Pune city.

It is important to consider low-income group of people, because they are in

large number in this society.

Proper guidance from sales team manager should be given to customer to

understand the scheme thoroughly. It is necessary to tell the customer

conditions & required documents at once. It will reduce the procedure time.

Company should undertake some promotional activities like exhibitions,

seminars for creating awareness & providing knowledge about policies &

schemes.

Schemes & Festivals or Special offers should be continued so as to fulfill

expectation.

After sales services should be better & faster than other companies this will

help to gain more competitive advantage.

The market area should be expanded in rural areas too.

BIBLIOGRAPHY


40


41/44

MBA Programme

BOOKS:

WEBSITS:

WWW. Reliancelife.co.in

WWW. Reliancecapital.co.in

WWW. Irdaindia.org

Questionnaire


Sr.

Nos.

Author Name of The Book Publication

1 Philip Kotler Marketing Management 11th Edition, Prentice-

Hall of India Pvt. Ltd.

2 G. C. Beri Marketing Research 3rd Edition, TATA-

McGraw Hill

Publication Co. Ltd.

3 ESCOLIFE of

Insurance

100Hrs. Pre-Licensing

Training Course.

1st Edition, IRDA

Revised syllabus

4 Suja R. Nair Consumer Behavior 1st Edition, Himalaya

Publishing House

41


42/44

MBA Programme

1. NAME

2. RESIDENTIL ADDRESS

3. PRESENT ADDRESS

4. PHONE NO - MOBILE NO

5. DATE OF BIRTH - PLACE OF BIRTH

6. MARITAL STATUS - OCUPATION

7. AGE - SEX

8. EDUCATION

9. SALARY / INCOME (Per Month) --

A) 10000 B) 20000

C) 30000 D) 40000

10.DEPENDANT IN YOUR FAMILY--

A) WIFE B) SON C) DAUTHER

D) MOTHER E) FATHER

11.DO YOU HAVE ANY LIFE INSURANCE?

A) YES B) NO

12.IF YES THEN HOW MUCH IS LIFE INSURANCE

A) BELOW 1 LACK B) 1 TO 2 LACK C) 2 TO 5 LACK

D) 5 TO 10 LACKS E) ABOVE 10 LACKS


42


43/44

MBA Programme

13. WHICH COMPANYS POLICY YOU HAVE?

A) LIC B) BAJAJ ALLIANZ C) ICICI PRU

D) RELIANCE LIFE E) ANY OTHER

14 WHICH PLAN YOU HAVE?

A) REGULAR B) PENSION

C) CHILD D) ANY OTHER

15 WHERE WOULD YOU LIKE TO INVEST YOUR MONEY ?

A) SHSRES B) DEBENTURES C) F.D.

D) MUTUAL FUND E) P.P.F.

16 CAN YOUR COMPANY PROVIDES YOU

THE COMBINATION OF ALL ABOVE INVESTMENT OPTIONS IN

SINGLE POLICY/PLAN

A) YES B) NO

17 HOW MUCH RETURNS ARE YOU GAINED ?

A) 10% B) 15% C) 20% D) ABOVE 20%

18 WHICH TYPE OF RISK IS YOU APATITE?

A) LOW B) MEDIUM C) HIGH


43


44/44

MBA Programme

19 WHICH BENEFITS DO YOU HAVE IN YOUR PLAN?

A) TAX BENEFIT B) TOP UPS C) PARTIAL WITHDRWAL

D) SWITCTING OPTIONS E) HIGH RETURN

20.HOW ARE YOU AWARE ABOUT RELIANCE LIFE INSURANCE ?

A) T.V. ADS B) NEWS PAPER C) FRIENDS

D) ADVISOR E) ANY OTHER WAY

21. SUGGESTIONS

abhi final pro (1)

Documents