Project Report On

SUBMMITED FOR

Partial fulfillment of the requirements of two years full time Master of Business Management (MBA)

By: - Saptarshi Saha

CONTENT S
Preface--------------------------------------------------(3) Certificate-----------------------------------------------(4) Acknowledgement-------------------------------------(5) Executive Summary------------------------------------(6) Index----------------------------------------------------(7)

EXECUTIVE SUMMARY
Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance Company Limited is officially launched on February 1, 2006. This was after obtaining the required regulatiry approvals from the Registrar of Companies and the Insurance Regulatory and Develop ment Authority. Reliance Life Insurance is the part of the Reliance Capital. Reliance Life Insurance has plenty of plans on the anvil. It has also 118 branches, with strong presence in South and a bouquet of products catering savings protection and investment need of individuals and corporate. The head-office of it is at Chennai. The company has already added 600 employees in addition to the 1000 plus staff of the erstwhile AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance aims to be the consumers preferred life insurer by understanding and meeting his needs. Think Bigger, Think Better!

INDE X

CHAPTER NO.

SUBJECT PAGE NO. 10 11 12 13 15 17 19 20 24 27 28 30 32 32 33 36 36 37 37 38 40 48 53 53 56 56 57 59 59 60 61 61

1 INSURANCE INDUSTRY 1.1 Meaning of Insurance 1.2 Importance of Insurance 1.3 Difference between Insurance and Assurance 1.4 Principles of Insurance 1.5 History of Insurance 1.6 Time line in Insurance history 1.7 Meaning of Life Insurance 1.8 History of Life Insurance 1.9 Key features of Life Insurance 1.10 Benefits of Life Insurance 1.11 Role of Life Insurance in the growth of economy 2 INTRODUCTION TO THE COMPANY 2.1 About Tata Aig Insurance 2.2 History 2.3 Journey so far 2.4 Role of IT at Reliance Life Insurance 2.5 Mission 2.6 Core Values 2.7 Future Plans 2.8 Head Office 2.9 Branches 3 PRODUCT MIX 3.1 Traditional Plans 3.2 Unit linked Plans 4 HUMAN RESOURCE MANAGEMENT 4.1 Recruitment 4.2 Selection 4.3 Training and Development 4.4 Career Development 4.5 Communication 4.6 Incentives 4.7 Services 4.8 Performance Appraisal 4.9 Organizational form and Structure 4.10 Department

5 MARKETING DEPARTMENT 5.1 Distribution Channel 5.2 Promotional Programmes and Target segment 5.3 Comparative Study 6 RESEARCH METHODOLOGY 6.1 Objective of the study 6.2 Questionnaire 6.3 Sampling Method and Sampling Size 6.4 Limitations 6.5 Analysis of Questionnaire 6.6 SWOT Analysis 7 FINANCE DEPARTMENT 99 8 CONLUSION 9 BIBLIOGRAPHY AND REFRENCES 108 10 APPENDIX

63 66 71 79 79 80 82 83 96 106 110

CHAPTER -

1
INSURANCE INDUSTRY

1.1 MEANING OF INSURANCE

Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big uncertain and changing liability. Insurance can be defined as a legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain. The other party called insured pays in exchange a fixed sum known as premium.

Insurance is desired to safeguard oneself and ones family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events.

1.2 IMPORTANCE OF INSURANCE

Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry.

There are many issues, which require study. The scope of the study of insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector.

The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Government may in near

future allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partners.

Another major issue is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency.

There are number of other hot topics like penetration of Health Insurance, Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry.

Right now the insurance industry has great opportunities in a country like India or China which huge population. Also the penetration of insurance in

India is very low in both life and non-life segment so there is lot potential to be tapped. Before starting the discussion on insurance industry and related issues, we have to start with the basics of insurance. So first we understand insurance ? How the word insurance is different from the word what is

assurance etc. ?

1.3 DIFFERENCE BEETWEN INSURANCE AND ASSURANCE

Assurance is older in history and it was used to describe all types of insurances. From 1826, the term assurance came to be used only for the risks covered by life insurance and the term insurance was exclusively used to denote the risks covered by marine, fire, etc.

The word assurance indicated certainty. In life insurance, there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. On the other hand the word insurance was used to denote indemnity type of insurances where the insurance company was liable to pay only in case of the loss damage the property.

The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance.

The principle of indemnity applies to insurance contracts(non-life) only. The scope of the word, insurance is wider.

1.4 PRINCIPLES OF INSURANCE

An insurance contract is based on so me basic principles of insurance.

(1) Principle of Uberrima Fides or Principle of utmost good faith

It means maximum truth. Both the parties should disclose all material information regarding the subject matter of insurance.

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made, he shall be fully indemnified only to the extent of loss. In other words, the insured is not entitled to make a profit on his loss.

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insureds right of recovery from an alternative source is involved. The insurer before the settlement of the claim may exercise the right. In other words, the insurer is entitled to recover from a negligent third party any loss payments made to the

10

insured. The purposes of subrogation are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss. The concept of Third Party Claims is based on the same principle.

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation.

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed, he remains in the same old position.

1.5 HISTORY OF INSURANCE

11

The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans, which were later repaid with interest when the goods arrived safely.

The concept of insurance as we know today took shape in 1688 at a place called Lloyds Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyds became the one of the first modern insurance companies by the end of the eighteenth century.

Marine insurance companies came into existence by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office.

The early history of insurance in India can be traced back to the Vedas. The Sanskrit term Yogakshema (meaning well being), the name of Life

Insurance Corporation of Indias corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of community insurance around 1000 BC.

Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance
12

companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. The first Indian insurance company, the Bombay Mutual Life Assurance Society, came into existence in 1870 to cover Indian lives at normal rates.

The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. This amended insurance Act looked into investments, expenditure and management of these companies.

By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life insurance was followed by general insurance in 1972.

1.6 TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS)

1818

British introduced the life insurance to India with the

13

establishment of the Oriental Life Insurance Company . in Calcutta.

1850 Non life insurance started with Triton Insurance Company.

1870

Bombay Mutual Life Assurance Society is the first India owned life insurer.

1912

The Indian Life Assurance Co mpany Act enacted to life insurance business.

regulate the

1938

The Insurance Act was enacted.

1956

Nationalization took place. Government took over 245

Indian and foreign insurers and provident societies.

1972

Non-life business nationalized, General Insurance Corporation (GIC) came into being.

1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms.

1994

Malhotra committee recommended reentry of private players.

14

1997 IRDA (Insurance Regulatory and Development Authority) was set market in India. up as a regulator of the insurance

2000

IRDA started giving license to private insurers. ICICI Prudential, HDFC were first private players to sell

insurance Policies.

2001

Royal Sundaram was the first non-life private player to sell an insurance policy.

2002 scene, insurers cashless mode.

Bank allowed to sell insurance plans as TPAs enter the start setting non-life claims in the

1.7 MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and

15

the insured are often the same person. Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured.

Life insurance may be divided into two basic classes term and permanent.

Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value.

Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due.

Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.

Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account.

If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.

16

If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs. Check the National Association of Insurance Commissioners website (www.naic.org/cis) or your local library for information on the financial soundness of insurance comp anies.

1.8 HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history. Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost. In another part of the world, nearly 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. It formalized concepts of bottomry referring to vessel bottoms and respondentia referring to cargo. These provided the underpinning for marine insurance contracts. Such contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders were the underwriters.
17

Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did continue through the Middle Ages, particularly with merchant and artisan guilds. These provided forms of member insurance covering risks like fire, flood, theft, disability, death, and even imprisonment. During the feudal period, early forms of insurance ebbed with the decline of travel and long-distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance would again reemerge. Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children.

Modern Insurance Illegal almost everywhere else in Europe, life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. The type of insurance we see today owes it's roots to 17th century England. Lloyd's of London, or as they were known then, Lloyd's Coffee

18

House, was the location where merchants, ship owners and underwriters met to discuss and transact business deals. While serving as a means of risk-avoidance, life insuran ce also appealed strongly to the gambling instincts of England's burgeoning middle class. Gambling was so rampant, in fact, that when newspapers published names of prominent people who were seriously ill, bets were placed at Lloyds on their anticipated dates of death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and two years later formed a New Lloyds Coffee House that became known as the real Lloyds. Making wagers on people's deaths ceased in 1774 when parliament forbade the practice.

Insurance moves to America The U.S. insurance industry was built on the British model. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. And the first life insurance policy for the general public in the United States was issued, in Philadelphia, on May 22, 1761. But it wasn't until 80 years later (after 1840), that life insurance really took off in a big way. The key to its success was reducing the opposition from religious groups. In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The

19

great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. With the creation of the automobile, public liability insurance, which first made its appearance in the 1880s, gained importance and acceptance? More advancement was made to insurance during the process of industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. During the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, membersonly insurance. Even today, such fraternal orders continue to provide insurance coverage to members, as do most labor organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies. Final Thoughts Even though the American insurance industry was greatly influenced by Britain, the US market developed somewhat differently from that of the United Kingdom. Contributing to that was America's size; land diversity and the overwhelming desire to be independent. As America moved from a colonial outpost to an independent force, from a farming country to an

20

industrial nation, the insurance business developed from a small number of companies to a large industry. Insurance became more sophisticated, offering new types of coverage and diversified services for an increasingly complex country.

1.9 KEY FEATURES OF LIFE INSURANCE

1) Nomination: When one makes a nomination, as the policyholder you continue to be the owner of the policy and the nominee does not have any right under the policy so long as you are alive. The nominee has only the right to receive the policy monies in case of your death within the term of the policy. 2) Assignment: If your intention is that your policy monies should go only to a particular person, you need to assign the policy in favor of that person. 3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. Permanent policies provide a death benefit that is guaranteed for the life of the insured, provided the premiums have been paid and the policy has not been surrendered. 4) Cash Value: -

21

The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. It equals the amount a policy owner would receive, after any applicable surrender charges, if the policy were surrendered before the insured's death. 5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. 6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways, one of which is toward the purchase of additional coverage, called paid-up additions. 7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. Either a fixed or variable rate of interest is charged. This feature allows the policy owner an easily accessible loan in times of need or opportunity. 8) Conversion from Term to Permanent: When in need of temporary protection, individuals often purchase term life insurance. If one owns a term policy, sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability. 9) Disability Waiver of Premium

22

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost. It guarantees that coverage will stay in force and continue to grow

1.10 BENEFITS OF LIFE INSURANCE

1) Risk cover: Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future. 2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual.

23

3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies. 4) Retirement Planning: What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years. Moreover the cash value can be used as an additional income in the old age. 5) Educational Needs: Similar to retirement planning the cash values that flow from ones life insurance schemes can be utilized for educational needs of the insurer or his children.

1.11 ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. Through investments in the Government sector and socially- oriented sectors the Industry has contributed immensely to the nation's development. The industry is recognized as one of the largest financial Institutions in the country. The ventures initiated by the industry in the areas of Mutual Fund,

24

Housing Finance has done exceedingly well in recent years. To protect the country's foreign exchange reserves, the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders.

CHAPTER -

2
TO THE

INTRODUCTION COMPANY

25

26

28

th

29

31

32

33

34

CHAPTER

35

4.1 RECRUITMENT

Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected .

49

In this company the Sales Manager, who recruits the advisors/agents for selling the products of the company, does the recruitment. The advisors should have at least passed the S.S.C. examination. They must pass the prerecruitment examination, which is conducted by the Insurance Institute of India, Mumbai, or any other approved examination body. After clearing the examination the code will be provided to them and the license will also be given to them, the validity the license would be 3 years. After all these requirements, the person will become an insurance advisor in the co mpany.

4.2 SELECTION

Selection is the process of picking individuals (out of the pool of job applications) with requisite qualifications and competence to fill job in the organization. In simple words, it is the process of differentiating between applicants in order to identify these with a greater likelihood of success in a job.

The Branch Manager, which includes-, will conduct the process of selection of Sales Manager

1) Personal Interview: The first step of selection of Sales Manager in the Reliance Life Insurance Company Limited is to conduct a personal interview of an applicant by the Branch Manager.

50

2) Project Interview: After clearing the personal interview, the project interview will be taken by the Branch Manager. In this step, the applicant should have to make a list and then start the business with them.

3) Interview with Regional Head: After clearing the project interview, the applicant should be interviewed by the Regional Head, who will check his/her performance.

4) Negotiation: After clearing the interview with Regional Head, the negotiation will be provided to the applicant.

5) Medical Examination: After that, the medical check up should e made to the applicant.

6) Selection: After clearing all the above steps the applicant should be appointed/selected as a Sales Manager in the company.

51

Requirements of Sales Manager:-

The Sales Manager should possess the following things-

1. They should be an M.B.A. 2. The age of them should be between 25 to 35 years. 3. They should have good communication skill. 4. They should have at least sales experience of 3 years. 5. They should have the capability to handle the team. 6. Their job profile includes recruitment, training, guiding, motivating and in turn getting business out of a team.

4.3 TRAINING AND DEVELOPMENT:-

Training and Development is any attempt to improve current or future employee performance by increasing an employees ability to perform through learning usually by changing the employees attitude or increasing his/her skills and knowledge. The need for training and development is determined by the employees performance deficiency, computed as follows:

52

Training & Development = Standard Performance Actual Performance

They are providing 100 hours training to their advisors, who are newly recruited. They are also providing the product training to their advisors and Sales Managers, who are newly recruited

4.4 CAREER DEVELOPMENT

They are also providing career development plans, which will identify potential and create avenues for growth.

4.5 COMMUNICATION

Communication is the process through which an individual can exchange their beliefs, things, information, and experience to others. In simple words, it is the process of exchanging the information from one person to another.

They are providing an open environment, which enabling free interaction between all levels. The communication is provided in the following manner:

53

54

BRANCH

BRANCH

BRANCH

REGIONAL

REGIONAL REGIONAL

CHANNEL HEAD

CMO

CEO

55

Explanations of the diagram:The communication is flow between Branch to Branch. Within a branch, it flows between Branch Manager to Sales Manag ers and Sales Managers to Agents/Advisors, and then Branch Head to Regional Head, then different Regional Head to Regional Head, then Regional Head to Channel Head, then to Chief Marketing Officer (CMO), then to Chief Executive Officer (CEO).

4.6 INCENTIVES

Incentives are mon etary benefits paid to workmen in recognition of their outstanding performance. They are providing an aggressive reward and recognition plans, which are including sales incentives.

4.7 SERVICES

They are offering following certain services to their employees.

1) They are providing knowledge sharing and certification practices. 2) They are planned team building and fun events. 3) They are creating Reliance Life Insurance family, which includes employees, associates and their families.

56

4) Tata AIG Insurance in a team building mode and is looking for performance driven, achievement oriented and challenge loving performance.

4.8 PERFORMANCE APPRAISAL

Performance appraisal is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development. Performance appraisal is a formal, structured system of measuring and evaluating an employees job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization and society all benefit.

They are providing a balanced scorecard approach for strategy deployment and performance measurement, which goals and measure financial, customer focused, process related and employee development related initiatives. In addition to this, the Branch Manager should measure the performance of the Sales Managers at every six months and the Sales Manager should measure the performance of the advisors/agents. If the performance is best then he/she will be prompted.

57

4.9 ORGANIZATION FORM AND STRUCTURE

CEO CMO Channel Head Regional Head Branch Head Sales CEO Manager Advisors/Agents Customers

4.10 DEPARTMENT

They are providing following areas or departments: 1) Retail Sales 2) Under Writing 3) Actuarial 4) Insurance Operations 5) Customer Service 6) Quality and Processes 7) Human Resources

58

8) Finance

CHAPTER

MARKETING DEPARTMENT

59

5.1 DISTRIBUTION CHANNEL

Tata AIG Insurance Company Limited is using five types of distribution channel, which are as follows:

1) Agency: Independent insurance agents represent a number of companies and can research these companies products to find the right combination for their clients. Independent agents & insurance producer groups are growing in prevalence. Although producer groups are in their infancy, their emergence may potentially be realignment in the distribution of financial services. Independent shops realized that by pooling production and funding a central support office, they had increased buying power. The one type of distribution channel, which Reliance Life Insurance Co. Ltd is using, is an agency. This channel works as follows:

Branch

Managers

Advisors

Customers

60

2) Bank Assurance: While a lot of bank relationships with insurance companies have been established, life insurance sales have been slower than one would expect he primary bank insurance activities have been the distribution of annuities, credit life, and direct marketing insurance. Banks are failing to incorporate successful sales tactics used to sell other financial services like investments. Another type of distribution channel is bank assurance. This channel is tie up with banks. In this channel the advisors using or targeting the bank customers to make a business with them i.e., to sell the policy of the company.

3) Corporate:To gain a better understanding of the demand amongst independent advisors for trust services and to gain a better feel for how independent advisors handle trust services, a research was performed with independent advisors across several broker/dealers and custodians. The interviews revealed that demand is greatest for living trusts among independent advisors, followed by demand for corporate trustee services. Another type of distribution channel is corporate, which are for employee benefits. This channel is tie up with corporate or small enterprises. Through these small enterprises, the advisors will sell the products/policy to customers of the small enterprises.

61

4) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business lost by the banks. These firms have steadily captured assets, primarily at the expense of the banks. The number of non-bank trust companies has increased in recent years as independent trust companies have emerged and more broker/dealers are integrated services. Insurance companies view full-service brokers as a potentially new distribution channel as well. Another type of distribution channel is rural benefits. This channel works as a dealership. In this channel, the dealers will sell the policy to the target customers.

5) Web World:Direct sales of life insurance are growing rapidly, but many of the traditional full-serve players seem to be letting it go. Across all financial services, consumers are expressing a willingness to deal with a variety of providers on the web. Web sites are starting to pop up offering consumer insurance products especially designed for distribution over the web. Another type of distribution channel is web world. This channel is tie up with customer database. In this channel, the advisors will sell the policy to the target customers, which are taken from the customer database, are listed in the website.

62

5.2 PROMOTIONAL PROGRAMMES & TARGET SEGMENT

Promotional programmes and target segment are related to each other. The promotional programmes are made to motivate the advisors/agents and sales managers to do more business i.e., to sell the more policies. The Tata AIG Insurance Co. Ltd has made three promotional schemes, which are as follows:

1) Shubh Arambh:This promotional scheme is detailed as follows: SLAB (WRP) REWARD ACHIEVERS

63

30,000 Reliance Life T-Shirt 50,000 Table Top Clock 75,000 Leather Bag 1,00,000 World Space Radio 1,50,000 L.G. Microwave- 19L 2,00,000 DVD/VCD/MP3 Player 3,00,000 Sony Music System SUPER ACHIEVERS 5,00,000 LG Refrigerators GL-233 7,50,000 LG Air Conditioner 1T 10,00,000 Sony Digital Camcorder 15,00,000 Trip to Dubai 3D/4N 20,00,000 Hero Honda Splender STAR ACHIEVERS 50,00,000 Maruti Alto Std. 75,00,000 Maruti Swift Lxi 1,00,00,000 GM Aveo 1.4LS

Login: 1

st April

to 31
th June

st May

06

Issuance till 15

06

2) R.A.R.E.:Th e full form of R.A.R.E. is Reliance Advisors Reward Experience. This programs consists of

1. New Advisor Incentive Program 2. Board of Advisors

64

3. Annual Discovery Series 4. Advisor Career Progression 5. RARE Club Loyalty Program

The above programs are described as follows 1. R.A.R.E. Program New Advisor Incentives:-

Criteria There will be two levels in the New Advisor Incentive program A. Launch Pad B. Take Off

2. R.A.R.E. Program Board of Advisors:-

Criteria There will be two levels in the Board of Advisors program A. Time Period B. Parameters

3. R.A.R.E. Program Discovery Series:-

Criteria There will be six levels in the Discovery Series program A. Qualification period B. Business criteria
65

C. The qualification criteria will be the same for both the Global and the National Discovery Series D. Qualification for the Global Discovery Series E. Qualification for the National Discovery Series F. The top 150 will bb calculated based on WRP (Weighted Recd Premium)

4. R.A.R.E. Program Advisor Career Progression:-

Advisor Career Progression A. Business Associate B. Sales Manager

5. R.A.R.E. Privilege Club:-

Levels A. The RARE Club will have 6 different levels B. The criteria for entry into each level will be based on I. Business (WRP) II. Persistency III. Product Mix C. The qualification period is I. Logins from 1 II. Issuances from 1 Qualification Criteria
st Apr

06 to 31

st Mar

07 07

st Apr

06 to 15

th Apr

66

Level WRP (Rs) Traditional Products Topaz 1,50,000 60% 80% Pearl 5,00,000 60% 80% Sapphire 10,00,000 60% 80% Emerald 15,00,000 50% 85% Ruby 25,00,000 50% 85% Diamond 50,00,000 50% 85%

Persistency

3) Elite Club Scheme:In this scheme the advisor, who have login the regular premium of Rs. 2, 00,000 will be eligible for the Elite Club Membership.

5.3 COMPARATIVE STUDY

Presently there are 15 Life insurance companies in the country. There is only one public sector company LIC and the rest 14 are private sector. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum.
67

1) Major Market Players: -

Birla Sun Life Insurance Company: Birla Sun Life Insurance Company is a 74:26 joint venture between Birla group and Sun Life Financial. It is a private sector company. The company was registered on 31/1/2001. The market share for FY 200506 was 1.89%. HDFC Standard: HDFC standard is a 74:26 joint venture between HDFC and Standard Life. It is a private sector company. The company was registered on 23/10/2000. The market share for FY 2005-06 was 2.87%. ICICI Prudential Life Insurance: ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. It is a private sector company. The company was registered on 24/11/2000. The market share for FY 2005-06 was 7.35%. Life Insurance Corporation of India (LIC): Life Insurance Corporation of India is a 100% government held Public Sector Company. Being the first to be established LIC is the forerunner in the Life Insurance sector. The market share for FY 2005-06 was 71.44%. Kotak Mahindra OLD Mutual: -

68

Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual. It is a private sector company. The company was registered on 10/1/2001. The market share for FY 2005-06 was 1.11%. Max New York Life: Max New York Life is a 74:26 joint venture between J & Bank, Pallonji & Co and MetLife. It is a private sector company. The company was registered on 6/8/2001. The market share for FY 2005-06 was 1.23%. Aviva Life Insurance India: Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. It is a private sector co mp any. The company was registered on 14/5/2002. The market share for FY 2005-06 was 1.14%.

ING Vysya Life insurance: ING Vysya Life Insurance is joint venture between Exide (50%), Gujarat Cements (14.87%), Enam (9.13%) and ING (26 %). It is a private sector company. The company was registered on 2/8/2001. The market share for FY 2005-06 is 0.79%. Met Life India: -

69

Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank, Pallonji & Co and MetLife. It is a private sector company. The co mpany was registered on 6/8/2001. The market share for FY 2005-06 was 0.40%. Bajaj Allianz Life Insurance Co.: Bajaj Allianz Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG. The company was registered on 3/8/2001. The market share for FY 2005-06 was 7.56%. SBI Life Insurance Company Ltd: SBI Life Insu rance Company is a 74: 26 Joint venture between SBI and Cardiff S.A. Th e company was registered on 31/3/2001.It is a private sector company. The market share for FY 2005-06 was 2.31%.

The TATA AIG Group: TATA AIG group is a 74:26 JV between Tata Group and AIG. It belongs to the private sector. The company was registered on 12/2/2001. The market share for FY 2005-06 was 1.29%. Sahara India Life Insurance Company Ltd.: -

70

First Wholly Indian Owned Private Life Insurance Company. The Company commenced operations from 30th October 2004. The market share for FY 2005-06 was 0.06 %. Shriram life insurance company Ltd: Shriram Life is a recent entrant into the life insurance sector It is a 74:26 joint venture between the Shriram group through its Shriram Financial Holdings and Sanlam Life Insurance Limited, South Africa. The company expects to start operations soon.

2) Market Share: -

Sr. No Insurer Market Share (%) 1 LIC 71.44 2 Bajaj Allianz 7.56 3 ICICI Prudential 7.35 4 HDFC Standard 2.87
71

5 SBI Life 2.31 6 Birla SunLife 1.89 7 Tata AIG 1.29 8 Max New York 1.23 9 Aviva 1.14 10 Kotak Mahindra OLD Mutual 1.11 11 ING Vysya 0.79 12 Reliance Life 0.54 13 MetLife 0.4 14 Sahara Life 0.06 15 Shriram Life 0.03

Now lets depict the market share of these players on diagram

72

Market Share(%)

1 LIC 2 B aj aj A ll i anz 3 IC IC I P rud ent ia l 4 H D F C Stan dar d 5 SB I Li fe 6 B i rl a SunL if e 7 Ta ta A IG 8 M ax N ew Yo r k 9Aviva 10 Ko t ak M ah ind ra O LD M ut ual 11 I N G V y s y a 12 R el ia nc e Li fe 13 M e t L i f e 14 Saha ra Li fe 15 Shr ir am L if e

Here we can see from the diagram that LIC is the market leader and it commands the major part of the total life insurance market. Its market share was approximately 98% before 2000 but after the entry of private players it has significantly decreased.

Among private players Bajaj Allianz stands first. It has the market share of approximately 7.56% in the total market and it constitutes 40% of the market share among private players.

HDFC Standard comes third. SBI Life insurance Co mpany Limited comes fourth. ICICI Prudential is also one of the fastest growing life insurance companies in India.

Rest of the players has market share below 2%.

73

3) Capital Fund: -

Capital Fund of Private Companies ( Rs in Crore ) ICICI Prudential 375 Max New York 250 HDFC Standard 218 Bajaj Allianz 200 Tata AIG 183 Birla Sun Life 180 AVIVA 155 OM Kotak 153 Reliance Life 126 SBI Life 125 Met Life 110 ING Vysya 110

74

CHAPTER

RESEARCH METHODOLOGY

75

6.1 OBJECTIVES OF STUDY

1) To get some good market exposure by dealing with the prospects face to face.

2) To improve our ability to sell a financial product like life insurance.

76

3) To know the perception of the consumer about life insurance.

4) To get a deep knowledge of the financial product like insurance.

5) To get some information about the market share of Reliance Life Insurance as compared to the giants like LIC and to know the standing of the company in the market.

6.2 QUESTIONNAIRE

It is most common instrument whether administered in person by phone or online questionnaires are very flexible. The form of each question is also important. Closed end question include all the possible answers and subjects matters choices among them. I have used open-end questions so that customers can write answer in their own words.

I have also used closed-end questions, which provide answers that are easier to interpret and tabulate. I have taken care in the wording and ordering of questions. I have used simple, direct, unbiased wording questions, which are arranged in a logical order. I have asked personal questions at last so that respondent does not become defensive.

77

Questionnaire of the customer

I have made questionnaire consisting seventeen questions to get customers view about life insurance. I have asked personal questions at last so that they do not become defensive. I have tried to know their performance i.e. whether they want to invest, where thy want to invest, up to what amount and since when.

6.3 SAMPLING METHOD AND SAMPLE SIZE

Introduction:-

Any organization whether big or small, private or public need different types of information are to know its popularity. I have gathered secondary data and primary data and collected information from the combination of these two data.

Secondary data: Secondary data consist of information that already exists somewhere, having been collected for another purpose. I have gathered secondary data from website of different operators, different magazines, newspapers and libraries.

Primary data: 78

I have taken great care while collecting primary data to answer that it is relevant, accurate, current and unbiased. I have taken a sample of 50 people. I have visited them personally to get data.

Sample size: I have taken sample size of 50 respondents. Because the population is too large so it is difficult to survey.

6.4 LIMITATIONS

I am a human hang, so th ere is some limitation of the human hangs which is reflected in this research.

The following are the limitation of this research study.

79

1) The sample size of 50 might not represent the perception of whole population, as the sample size is too small for total population of Ahmedabad city.

2) The opinion expressed by the respondents may be biased.

3) The attitude of the research might be biased.

4) One of the most influencing and most critical limitations is that I am not trained for the research study and this is my first study. I tried hard to come at conclusion, but there is lack of expertise.

5) Another limitation is that there is lack of time. If I give more time then studies will be more effective.

There are some limitations of this study. But in spite of their limitation I worked with the enthusiasm. And I tried to give the best results to the research of this report.

6.5 ANALYSIS OF QUESTIONNAIRE

Here I have formed a questionnaire to study why people go for life insurance. What is peoples major motive behind investing in life insurance? Do they decide upon their own or they take guidance of an agent? What is their perception about Reliance Life Insurance Company Limited?

80

Questions:There are 7 questions in the questionnaire. Out of these 7 questions, 6 questions are close ended and one question is an open ended one. Target Population:I had conducted this survey among 50 people, and the target group was a mix of people from the society. I asked the questions to Doctors, Professionals, Professors, Advocates, Engineers, and general public. Analysis:I have used pie charts, and some other statistical measures to analyze the questions.

Q.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover (d) Return/Yield

81

MOTIVE NO. TAX 20 SAVING 5 RISK COVERAGE 23 RETURN/YIELD 2 TOTAL 50 There could be any motive of people behind investing in a life insurance policy. The main purpose of life insurance is the

Risk cover of ones life. But some people consider different advantages of a life insurance policy. Some people consider Tax benefit as the main advantage of life insurance. Some believe that life insurance is an investment so they tend to invest in life insurance. While some people believe that it is a compulsory saving. Now lets see what all people say

TAX SAVING RISK COVERAGE RETURN/YIEL D

82

Here we can see that majority of the people tend to invest in life insurance for the risk coverage. The next preferred option is Tax Saving. We founded from the discussion with public and some experts that those people with a low income tend to invest in life insurance to gain tax benefit.

Saving motive constitutes very small part of the total sample. Return comes last.

But this is the general conclusion of 50 people. If we take a larger sample, we can get a different result.

As the private players have launched ULIPs, more and more people are turning towards these products so the Investment motive has been gaining command. Also the number of those people who wish to invest for return is also increasing.

According to a life insurance expert (Vinod Thakkar ), life insurance is for protection first then for Savings and Tax benefits all those things.

Q.2 Rank the above motives according to your preference

MOTIVE OF INVESTMENT TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD Preference 1 2 3 4 21 3 24 1 19 11 16 4 8257 10 2113 35

83

40 35 30 25 20 15 10 5 0

TA X B E NEFIT SAVINGS RISK COVER RETURN/YIEL D

We can see from the table and the graph that the number one motive of people about investing in life insurance is risk coverage, which is the main theme of life insurance followed by Tax benefit. The third position is of saving and fourth is Return. This shows that still people consider other financial tools more viable for return and life insurance is for Tax benefit and risk cover.

Q.3 How do you decide about investing in life insurance? (a) On my own (b) family decision (c) Employer decides (d) as per the guidance of agent

This is a very crucial question as most of the people are not much familiar about different life insurance plans offered by different life insurance

84

companies so people take help of the life insurance agent and as he guides understanding the needs of the individual, people would invest.

Here one hazardous factor is the moral hazard. People tend to invest in life insurance plans to maintain relations though they are not in need of life insurance. Also sometimes it depends upon the convincing power of the agent.

SOURCE NO. ON MY OWN 29 FAMILY DECISION 7 EMPLOYER DECIDES 0 AGENT GUIDANCE 14 TOTAL 50

ON MY OWN FAMIL Y CISION DE EMPLOYE R CIDES DE AGENT GUIDANCE

Here we can see that majority people (58%) decides on their about investing in life insurance. 28% persons decides as per the guidance of the agent.

85

There is no contribution of employers in the decision of ones investment in life insurance. 14% people invest in life insurance as per the family decision.

Q.4. Which life insurance policy would you prefer to buy? (a) Term Assurance (b) Whole Life (c) Endowment (d) Combination of Whole Life and Endowment (e) Unit Linked

This is another crucial question as there are number of products offered by life insurance companies. The products range from pure Term Assurance Plans to Unit Linked Insurance Plans, which are relatively new entrant in the market.

We have already explained all these policies ahead. Now lets find out what people have to say:

Type of policy N0. Term Assurance 9 Whole Life 9 Endowment 7 Combined 19 ULIPs 6 TOTAL 50

86

Ter m Assurance Whole Life Endowment Combined ULIPs

As it is evident from the chart and the table 38% people prefer combination of Whole Life and Endowment product. It gives people double advantage. The person would get some amount at the end of the stipulated period; for instance 20 years, and after that period the risk cover continues and the rest of the amount would be paid when the person dies.

Q.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC

This is the most important question as it reflects the scope of the study. It is the main theme of this questionnaire.

87

Prior to 2000 LIC was the only player in the life insurance market and it had the total market. So people had to go to LIC for buying life insurance policy. But after the entry of private players in 2000, some people have also turned to private life insurers.

Reliance Life Insurance Company Limited is newly launched company. So it has fewer customers as compared to LIC. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in todays environment.

Now lets see what people say: Particulars No. Reliance Life Insurance 15 LIC 35 TOTAL 50

Reliance Life Ins uranc e LIC

As evident from the chart that 30% of people would prefer Reliance Life Insurance while 70% would prefer LIC.

88

Personal Details: -

1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65

Age No. 18 to 30 5 31 to 50 30 51 to 65 15 TOTAL 50

89

18 to 30 31 to 50 51 to 65

As evident from the chart that I have taken a sample of 50. Out of which 10% people are aged between 18 to 30, 60% people are aged between 31 to 50, and remaining 30% people are aged between 51 to 65.

2) Occupation (a) Service (b) Business (c) Profession (d) Housewife (e) Retired

Occupation No.

90

Service 5 Business 15 Profession 10 Housewife 5 Retired 15 TOTAL 50

Service Bus iness Profes sion Housewife Retired

As the evident from the chart that out of 50 respondents 10% are of service men, 30% are of business men, 20% are of professions, 10% are of housewives and remaining 30% are of retired.

3) Income (a) 50,000 to 1,00,000 (b) 1,00,000 to 5,00,000 (c) More than 5,00,000

91

Income (Per Annum) No.

50,000 to 1,00,000 10 1,00,000 to 5,00,000 25 More than 5,00,000 15 TOTAL 50 50,000 to

1,00,000 1,00,000 to 5,00,000 More than 5,00,000

As the evident from the chart out of 50 respondents 20% are earning annually between 50,000 to 1,00,000, 50% are earning between 1,00,000 to 5,00,000 and 30% are earning more than 5,00,000.

4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4

92

Family Members No.

25 3 15 4 20 More than 4 10 TOTAL 50

2 3 4 More than 4

As the evident from the chart out of 50 respondents 10% have 2 family members, 30% have 3 family members, 40% have 4 family members and remaining 20% have more than 4 family members.

6.6 SWOT ANALYSIS

SWOT analysis is the analysis of the internal and external factors, which have impact on the survival of any organization. Now lets make SWOT analysis for reliance Life Insurance Company Limited.

93

STRENGTHS: 1) Reliance Life Insurance Company Limited is the part of the Reliance Capital. 2) The brand name is enough to sell the products easily. 3) Private placement of Rs. 10,000 crs worth of securities with RBI by the government. Led to an improvement in market securities. 4) Strong liquidity from FII was the major reason for the up move. 5) Range of products 6) Reliance has a long and strong history of solvency, financial stability.

WEAKNESSES: 1) Newly established company, so people seems it risky. 2) Lack of staff.

94

3) Lack of advertisement, so most of the customers are not aware of the Reliance Life Insurance.

OPPORTUNITY: 1) There is a vast untapped market in India. The life insurance penetration in India is approximately 2.5%. So it has large potential. 2) Intention of traditional products is to encourage long term, regular and disciplined savings to systematically build up a target fund. 3) The average insurance premium being collected by the company has been growing exponentially year on year.

THREATS:

1) The main threat is from the other players who have grabbed approximately 15% of the market share. 2) As the government has scrapped the rebate on the life insurance premium, the people who used to invest in life insurance for the sole motive of tax benefit may turn to other instruments.

CHAPTER

7
FINANCE DEPARTMENT
95

FUND PERFORMANCE:-

There are four fund options, which Reliance Life Insurance Company Limited has offered, which are as follows:

96

1) Capital Secure Fund:This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. In line with the objective of protecting the capital against any erosion, 61.4% of the funds were invested in short-term Government Securities (Gilts) and to meet liquidity requirement higher about 40% of funds are kept in short term bank deposits. The net return credited to policyholders and the asset composition ratios are given in the boxes below.

Net Returns during last 1 month (Mar.06) 0.36% Net Returns during the last 3 months (Jan.-Mar.06) 1.10% Net Returns during the last 12 months (Apr.05-Mar.06) 4.09% Net Returns since Inception in Feb03 (Annualized) 3.89%

Bank Fixed Deposits Asset Name % of total assets Total Bank Deposit 38.60 Gilts 6.75% GOI 2006 6.75 11.68% GOI 2006 13.69 11.75% GOI 2006 40.96

97

Total Gilts 61.40 Total 100.00

Asset Allocation:-

Gilts Bank Deposits

2) Balanced Fund:This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. To take advantage of the bullish trend in the equity market, the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. Bank deposits were maintained only for the purpose of liquidity management. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. Within the fixed income portfolio, allocation to Gilts was higher than corporate bonds. All the bonds in the portfolio are top rated. The asset composition, the details of the portfolio and the net returns are disclosed below. Net Returns during last 1 month (Mar.06) 2.47%

98

Net Returns during the last 3 months (Jan.-Mar.06) 4.07% Net Returns during the last 12 months (Apr.05-Mar.06) 13.83% Net Returns since Inception in Feb03 (Annualized) 13.10%

Asset Name % of Total Asset Equity 20 Corporate Bonds & Debentures 22 Gilts 53 Bank Deposits 5 Total 100.00

Equity Corporate Bonds & Debentures Gilts Bank Deposits

3) Growth Fund:-

99

This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. To take advantage of the bullish trend in the equity market, the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. All the bonds in the portfolio are top rated. The asset composition, the details of the portfolio and the net returns are disclosed below.

Net Returns during last 1 month (Mar.06) 4.60% Net Returns during the last 3 months (Jan.-Mar.06) 7.99% Net Returns during the last 12 months (Apr.05-Mar.06) 24.90% Net Returns since Inception in Feb03 (Annualized) 21.04%

Asset Name % of Total Asset Equity 9 Corporate Bonds & Debentures 40 Gilts 45 Bank Deposits 6 Total 100.00

100

Equity Corporate Bonds & Debentures Gilts Bank Deposits

4) Equity Fund:This fund is for Reliance Market Return Plan. In line with the stated asset allocation pattern and their view of the market, the entire corpus of the fund was invested in equities. Net returns earned since inception and the full portfolio are disclosed below.

Net Returns during last 1 month (Mar.06) 11.18% Net Returns during the last 3 months (Jan.-Mar.06) 20.02% Net Returns during the last 12 months (Apr.05-Mar.06) 64.46% Net Returns since Inception in Feb03 (Annualized) 57.83%

101

Asset Name % of Total Asset Equity 98.93 Mutual Fund/Bank Deposits 1.07 Total 100.00

Equity Mutual Fund/Bank Deposits

CHAPTER

8
102

CONCUSIO N

After the deep study of insurance sector of India, I can tell that this is the sector, which has most business opportunities perhaps in India.

103

Insurance industry is one of the fastest sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased. As far as the comparison of Reliance Life Insurance and other players is concerned, there are both positive as well as negative impacts on both the sides. For Reliance Life Insurance, the negative aspect is that its market share is low. For private players the negative aspect is that they have to fight with the public sector giant which is established player with a high brand value. But the positive impact is that the life insurance awareness has increased and the business of Reliance Life Insurance has increased.

CHAPTER

9
AND

BIBLIOGRAPHY REFERENCES

104

www.reliancelife.com www.indiainfoline.com www.bimaonline.com www.google.com

105

Life Time Magazine of Reliance Life Insurance Net Bios Computer Academys Life Insurance Book Broachers of Reliance Life Insurance

CHAPTER

10
ANNEXUR E

106

Questionnaire

Survey by student of R.K.C.B.M. On Life Insurance

NAME: ___________________________________________

Q.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover

107

(d) Return/Yield

Q.2 Rank the above motives according to your preference

MOTIVE OF INVESTMENT TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD Preference 1 2 3 4

Q.3 How do you decide about investing in life insurance? (a) On my own (b) family decision (c) Employer decides (d) as per the guidance of agent Q.4. Which life insurance policy would you prefer to buy? (a) Term Assurance (b) Whole Life (c) Endowment (d) Combination of Whole Life and Endowment (e) Unit Linked

Q.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC

108

PERSONAL DETAILS
1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65

2) Occupation (a) Service (b) Business

109

(c) Profession (d) Housewife (e) Retired 3) Income (a) 50,000 to 1,00,000 (b) 1,00,000 to 5,00,000 (c) More than 5,00,000 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4

110