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SUMMER TRAINING REPORT

A COMPARATIVE STUDY OF TRADITIONAL PLANS OF RELIANCE LIFE

INSURANCE WITH BAJAJ ALLIANZ LIFE INSURANCE

With special reference to

Reliance Life Insurance

Submitted in the partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by

ROHIT ANAND

Enrollment no. 0181471707

BBA 5th Semester

Under the Supervision Under the supervision

and guidance of and guidance of

MS. SUMEDHA DUTTA Mr. NIMIT VERMA

Mr. VIPUL SHARMA

(Faculty guide) (Industry guide)

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENTSTUDIES

(Approved by AICTE, Ministry of HRD, Govt. of India)

Affiliated To Guru Gobind Singh Indraprastha University, Delhi

PSP AREA, SECTOR-22, ROHINI, DELHI- 110085

E-MAIL: Website: http://[email protected]

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Fax No: 55195341, Tel: 25489493

CERTIFICATE FROM THE INSTITUTE

This is to certify that Rohit anand of BBA (Gen) with Enrollment No. 0591701707 ofMAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIESaffiliated to Guru Gobind Singh Indraprastha University has worked on theproject titled A comparative study of Traditional Plans of Reliance LifeInsurance with Bajaj Allianz Life Insurance under my guidance towardspartialfulfillment of the requirement of awards of BBA degree.

Ms. Sumedha duttaProject Guide

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ACKNOWLEDGEMENT

I would like to express my gratitude to all those who made it possible for me to complete

this report. It is my pleasure to thank the Reliance Life Insurance for giving me

permission to commence this project in the first instance, to do the necessary research

work and to use departmental data. I would furthermore like to thank the Sales manager

of Reliance Life Insurance Barakhamba branch, Mr Nimit Verma who gave this

permission and encouraged me throughout my project.

I thankfully acknowledge the support of DR.N.K.KAKKAR, and my project guide

Ms.Sumedha Dutta. from maharaja agrasen institute ofmanagement studies, Delhi whose help, stimulating suggestions andencouragement helped me throughout the research and the writing of thisreport.

Last but not the least; I would like to give my special thanks to my family and friends, for

their constant support and encouragement to complete this research.

Submitted by:

ROHIT ANAND

BBA-5TH SEM.

(0181471707)

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DECLARATION

I Rohit anand Enrolment No: 0181471707 Class: BBA (5th sem) of the Mahraja AgrasenInstitute Of Management Studies, Delhi hereby declare that the Summer Training Reportentitled, A Comparative study of Traditional plans of Reliance life Insurance with BajajAllianz is an original work and the same has not been submitted to any other Institute forthe award of any other degree. A seminar presentation of the Summer Training Reportwas made on and the suggestions as approved by the faculty were duly incorporated.

Signature of Researcher

CountersignedSignature of faculty Guide

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EXECUTIVE SUMMARY

This study has been carried out with the view to analyze the performance of Reliance lifeinsurance in the competitive Insurance Sector. It will assist the management in makingbetter strategies to have a sustainable competitive edge in the industry. The main aim ofthe study is to carry out a comparative analysis of Reliance life insurance with its rivalcompany Bajaj Allianz life insurance.

The study is based on the primary surveys done with customers for developing betterservices for the customers. A primary survey was conducted with life advisors to analyzethe impact of training and awareness about company policies on their performance.Secondary data from various sources was also taken in account for making the analysis

more reliable and valid.

The inference drawn from the study was that, the customer gives importance tocompanys publicity and quality of advisors while making an investment decision.Another finding was that training and awareness is highly related to advisorsperformance.

An observation points to the fact that the organization must focus on quality of lifeadvisors in addition to quantity. Company should favor activities which strengthen its

trust; moreover focus must be given to further enhance its market standing.

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PREFACE

The successful completion of this project was a unique experience for me because byvisiting many places and interacting with various persons, I achieved a better knowledgeabout sales . The experience which I gained by doing this project was essential at thisturning point of my career this project is being submitted with content detailed analysis ofthe research under taken by me.

The research provides an opportunity to the student to devote his/her skills knowledgeand competencies required during the technical session.

The research is on the topic TRADITIONAL PLANS (A COMPARATIVE STUDYON RELIANCE LIFE INSURANCE & BAJAJ ALLIANZ LIFE INSURANCE

TRADITIONAL PLANS)

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TABLE OF CONTENT

Table 1

CHAPTER

NOTOPIC PAGE

NO.1. INTRODUCTION

REVIEW OF LITREATURE

2 COMPANY PROFILE

2.A) RELIANCE LIFE INSURANCE

2.B) BAJAJ ALLIANZ LIFE INSURANCE

2.2) TRADITIONAL PLAN OF THE COMPANY

2.2.A)TRADITIONAL PLANS OF RELIANCE LIFE INSURANCE

2.2.B)TRADITIONAL PLANS OF BAJAJ ALLIANZ LIFEINSURANCE

2.3) INDUSTRY PROFILE

3. CURRENT SCENERIO

3.1) INSURANCE INDUSTRY

3.2) RELIANCE LIFE INSURANCE

6. RESEARCH METHODOLOGY

4.1)DATA ANALYSIS AND INTERPRETATION4.2)SIGNIFICANCE OF THE STUDY4.3)SCOPE OF THE STUDY4.4)OBJECTIVE OF THE STUDY

5. DISCUSSION AND FINDINGS OF THE STUDY

5.1) FINDINGS

5.2) SUGGESTIONS

5.3) CONCLUSION

5.4)LIMITATIONS

5.5) BIBLIOGRAPHY

5.6) ANNEXURE

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CHAPTER 1

INTRODUCTION

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LITERATURE REVIEW

1.) Robi Elenekave has explained in detail why various retirement plans and pensionplans dont give the desired returns. The main difficulty is the use of incorrect method forcalculations done to find out the return on investment. This is primarily due to wrongassumptions. The study provides information about the various precautions which need tobe considered before planning so that the desired results can be achieved.

2.) Another paper provides insight about how various financial sectors invest in bondmarket. The study was how the different players investment different instrumentsaccording to the risk appetite and desired rate of return. The study shows that lifeinsurance sector mainly invests in government bond which are low return and low riskinstrument. The investment in government bond it shows that life insurance companiesare more conservative in investment.

3.) K. Subhash has presented the history of Indias life insurance industry in three stagesbefore independence, after independence and post liberalization which not only providesinformation but also help in analyzing the impact of these major changes. The authorshave also discussed the huge potential which exists in the rural India. The insurancecompany must realize the importance of rural sector because the future lies there. Theauthor commented about the increasing share of private player in the existing market.This confirms the availability of opportunity in this sector. The paper also provides theimportance of professional and focused approach which was given no importance.

4.) Tapen Sinha has discussed the various challenges and opportunities in the insurancemarket. One of the very important factors which have been discussed in the study is theimportance of developing new and better products. As the scenario changes the need ofan individual also changes so any organization must understand and fulfill these needs.The new product development requires constant research so organization must also focuson it.

5.) Roger G. Ibbotson discusses how financial planners and advisors have recently startedto recognize that human capital must be taken into account when building optimalportfolios for individual investors. Any investors human capital has a unique mortality

risk. However, life insurance in its forms can hedge against this mortality risk. Thus,human capital affects both the optimal asset allocation and the optimal demand for lifeinsurance. This paper provides a unified framework based on human capital in order toenable individual investors to make both decisions jointly.

6.) Rakesh Niraj study tells how the flow of information in any organization is important.For any organization to grow, the flow of information must be good both upwards as wellas ownwards. The proper flow of information will also ensure proper flow of good and

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services from organization to customer and proper flow of information from customer toorganization. The information from customers will help the organization in providingbetter goods and services to the customer. For the above purpose, organization mustensure good channel partner who can provide the organization with correct feedback.Hence it becomes very important for any organization to acquire good channel partners.

7.) Stephen P. Robbins has discussed how group dynamics works in any organization.The success of any organization depends on the success of its various teams and howthese teams work together. The book provides various techniques which can be used byany organization to get result from the team effort. The conflict resolution is a major taskin any group. Various techniques which the organization can use in conflict resolution arealso discussed. Another important aspect covered is the importance of leadership in theorganization. The various forms of leadership have been discussed and the kinds ofleadership which can be effective in particular situations are also discussed.

8.) R. Wayne Mondy has discussed the importance of training and development in anyorganization. The training provides skills to perform the current job where as thedevelopment involve learning beyond present need. The various type of training arediscussed which can be used according to the requirement. Training and development arenot only important for better performance of an individual but it also gives satisfaction.The major factors which influence training and development are found to be managementsupport, commitment of trainee and trainer, complexity of the organization. The processof developing good training plans is also provided. In another part author has discussedthe importance of right man for right job. The compensation strategies are also givenwhich are very crucial for ant industry.

9.) Philip Kotler has discussed the importance of channels partners. Better the channelpartners better will be the delivery model. Detailed discussion about how to design thechannel structure so that all the requirements could be fulfilled is provided. The variousissues faced by the organization while managing the channels are also given. When anorganization has more than one channel it becomes very important that all the channelsshould be integrated in such a way that the organization get the best out of all. At timesdue to the conflicting benefit of the different channels the conflict arise so variousstrategies to manage these issues is also discussed in the chapter.

10.) Michael J. Etzel has written about the marketing of services. The marketing ofservices is different from the goods because of the characteristic of service likeintangibility, inseparability, heterogeneity etc. Brief about pricing strategies is also givenin case of services. The authors have also given the impact of technological developmenton the services marketing. The author has also given the importance of brand and aftersales support in case of services as perception of the customers plays an important role. Inother part of the book the authors has described the importance of distribution channels

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and designing of the same. A channel partner should be consider as partner according todiscussion. The legal complications associated with channels are also discussed. Thesecomplications are necessary to take into the consideration while managing the channels.The conflicting interest of channels both horizontally and vertically are also taken intothe consideration.

11.) Boone has discussed about the importance of personal financial planning. Theconcept of time value of money has also been elaborated. The importance of creating andimplementing budget is given under money management. The other important conceptsfor financial planning like credit management and understanding taxes are also explained.In one section the authors have discussed the importance of investment and what shouldbe the major considerations while making any investment. The considerations include therisk associated with the investment, return on the investment etc. The importance andbenefits of life insurance has also been given. The discussion also includes various legalaspects associated with life insurance. The overview of retirement planning is also given

which includes importance and benefit of retirement planning. Various tools for properretirement planning are also discussed.

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CHAPTER: 2

COMPANY PROFILE

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COMPANY PROFILE

2 A.COMPANY PROFILE OF RELIANCE LIFE INSURANCE

ABOUT FOUNDER OF THE COMPANY

Few men in history have made as dramatic a contribution to their countrys economicfortunes as did the founder of Reliance,Shri. Dhirubhai H Ambani. Fewer still have leftbehind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the truegenius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot,

the leader of men, the architect of Indias capital markets, the champion of shareholderinterest.

But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator.In one lifetime, he built, starting from the proverbial scratch, Indias largest private sectorenterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of barelyUS$ 300 (around Rs 14,000). Over the next three and a half decades, he converted thisfledgling enterprise into a Rs 60,000 crore colossusan achievement which earnedReliance a place on the global Fortune 500 list, the first ever Indian private company todo so.

Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, whenReliance Textile Industries Limited first went public, the Indian stock market was a placepatronised by a small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investorsto participate in the unfolding Reliance story and put their hard-earned money in theReliance Textile IPO, promising them, in exchange for their trust, substantial return ontheir investments. It was to be the start of one of great stories of mutual respect andreciprocal gain in the Indian markets.

Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of thegreatest growth stories in corporate history anywhere in the world, and went on tobecome Indias largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinaryshareholder uppermost in mind, in the process making millionaires out of many of theinitial investors in the Reliance stock, and creating one of the worlds largest shareholderfamilies.

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ABOUT RELIANCE LIFE INSURANCE

Reliance Life Insurance offers you products that fulfill your savings and protection needs.

Our aim is to emerge as a transnational Life Insurer of global scale and standard.

Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part ofReliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leadingprivate sector financial services companies, and ranks among the top 3 private sectorfinancial services and banking companies, in terms of net worth. Reliance Capital hasinterests in asset management and mutual funds, stock broking, life and generalinsurance, proprietary investments, private equity and other activities in financialservices.

Reliance - Anil Dhirubhai Ambani Group also has presence in Communications, Energy,Natural Resources, Media, Entertainment, Healthcare and Infrastructure.

VISION & MISSION

Vision

Empowering everyone live their dreams.

Mission

Create unmatched value for everyone through dependable, effective, transparent andprofitable life insurance and pension plans.

GOAL

Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

Emerge as transnational Life Insurer of global scale and standard.

Create best value for Customers, Shareholders and all Stake holders.

Achieve impeccable reputation and credentials through best business practices.

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ACHIVEMENTS OF RELIANCE LIFE INSURANCE COMPANY

1. RLIC closed the last financial year with a New Business Premium of Rs 3513Crores.

2. For 3 successive years, since inception, the Company has been amongst the fastestgrowing Companies in the Life Insurance Industry achieving a growth rate of28% in the last financial year against a market growth of -6%. In the IndividualBusiness segment, the company achieved a growth rate of 59% in terms of WRPagainst the private industry growth of 1%.

3. Reliance Life has been one of the fastest gainers in market share growing from1.9% amongst private players in Mar'06 to 10.3% as of Mar'09. This has resulted

in the Company growing to becoming the4th largest private player in just twoyears starting at position of 11.

4. The Company has been the fastest company to reach the 3 million policy markand was the 3rd largest private insurer in terms of Policy count in 2008-09

5. Reliance Life has accomplished a large distribution ramp-up in the Industry in ashort span of time by opening 1145 branches in just over 2 year.

6. RLIC continues to be amongst the foremost Life Insurance companies in India tobe certified ISO 9001:2000for all the processes.

7. Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of Meritinthe Financial Services category by Council for Fair Business Practices (CFBP).

8. The Company has been the fastest company to reach the 3 million policy markand was the 3rd largest private insurer in terms of Policy count in 2008-09 .

9. The Company has also won the DL Shah Quality Council of India CommendationAward in the services category in feb 2008 for its work on promoting 'self helpchannels for service'

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LEADERSHIP TEAM

BOARD OF DIRECTORS

Gautam Doshi, Director

Gautam is the Group Managing Director of Reliance Anil Dhirubhai Ambani Group andDirector of Reliance Life Insurance Company Limited.

In his long and illustrious career spanning 30 years, Gautam has held key positions invarious organisations such as M/s. Bansi S. Mehta, RSM & Co. and Ambit CorporateFinance Pvt. Ltd. Presently, as a Board member of various reputed public limitedcompanies, Gautam continues to power the industry with his profound knowledge andexpertise.

Gautam, a qualified Chartered Accountant, has served as the Chairman of the Institute ofChartered Accountants of India for the year 198283. He was also elected to the Councilof the Institute of Chartered Accountants of India for two consecutive terms spanningover 1992 to 1998.

Satya Pal Talwar, Director

Satya Pal is the Director of Reliance Life Insurance Company Limited. He holds anexperience of more than 35 years in operations and policy formulation.

Through his distinguished service in the financial industry, Satya Pal has served as theChairman and Managing Director of renowned organisations such as Bank of Baroda,Union Bank of India and Oriental Bank of Commerce. His in-depth knowledge of thesector has seen him rise quickly into pivotal positions at advisory and board levels inIndian and as well Global organisations such as SEBI, IDBI and MasterCardInternational. He has also held the coveted position of Deputy Governor of RBI from1994 to 2001.

Satya Pal holds a degree in Law. He is a Certified Associate of the Indian Institute ofBankers and a member of the Indian Council of Arbitration.

Saumen Ghosh, Group President

Saumen is currently the Group President of Reliance Capital Limited.

Saumen has worked in the UK for one of the leading Chartered Accountancy firms andthen moved to Australia to join a subsidiary of the Allianz Group where he held various

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senior positions in the finance and international division. In his immediate pastassignment, before joining Reliance Capital Limited, Saumen was responsible for theoverall Allianz operations in India and Middle East.

Saumen is a qualified Chartered Accountant and is a member of the Institute of Chartered

Accountant in England & Wales and Australia.

Malay Ghosh President

Malay leads all activities at Reliance Life Insurance Company Limited Life and his keyfocus is on rapid expansion of all channels and accelerating the companys growthtrajectory.

Malay has over 24 years of work experience in the insurance industry. He has worked for17 years with LIC across various functions and for 7 years with Bajaj Allianz Life

Insurance where he was last designated Head of Sales.

Malay holds a Masters degree in statistics.

Maneesha Thakur, Chief Human Resources Officer

Maneesha in her role as the Chief Human Resource Officer at Reliance Life InsuranceCompany Limited, has developed a performance driven and employee centric culture.She has been at the forefront of the organization growth by facilitating talent acquisitionand management.

Maneesha in her career span of 15 years has worked with companies like SHCIL,ALLTEL, Transamerica, ICICI Bank and VSNL.

In addition to an MA in English Literature, Maneesha holds a Post Graduate Diploma inPersonnel Management & Industrial Relations from XLRI, Jamshedpur.

C Mohan, Chief Technology Officer

C Mohan is the Chief Technology Officer (CTO) of Reliance Life Insurance CompanyLimited and he is responsible for Information Technology Strategy Formulation and

Deployment.

Mohan is an Engineering Graduate and holds many International IT Certifications.

Mohan has over 12+ years of IT Experience of which he spend more than 7+ yearsExecutive Management Experience in overseas. He worked with Cathay Pacific Airwaysand Computer Sciences Corporation in Asia Pacific Role at Singapore before he joinedReliance Life.

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In Year 2008 he has been awarded as Pioneer CIO by CIOL-DataQuest and Bold 100CIO by IDG-CIO Forum. He also received the Early SOA Adopter Award from IBM.

He has recently been selected as a honoree in Global CIO 100 2009 Award Summit to beheld in Colorado, USA.

R Rangarajan, Chief Investment Officer

Rangarajan is the Chief Investment Officer at Reliance Life Insurance Company Limited.He alongwith his team, strives to give the best possible returns on investments toshareholders and policyholders, keeping in mind their appetite for risk. Rangarajan drawson his in-depth knowledge of investment and experience of 25 years to ensure that thegoals of the organisation are metwithout any compromise on the benefits of theinvestors.

Prior to being a part of Reliance Life Insurance, Rangarajan worked with AMP SanmarLife Insurance as Head Investments for three years. His earlier assignment was with alarge Mutual Fund organization.

Rangarajan is a qualified Chartered Accountant.

S V Sunder Krishnan, Chief Risk Officer

Sunder is the Chief Risk officer for Reliance Life Insurance and is responsible foroverseeing Risk Management, Internal Audit and Compliance functions at Reliance LifeInsurance.

Sunder came with 23 years of experience and knowledge in Internal Audits, Compliance,Assurance Consulting and Risk Management. He has worked for various leadingorganizations such as DSP Merrill Lynch, ING Vysya, Credit Lyonnais, StandardChartered, Bank International Indonesia, Ernst & Young and Delloitte at senior andmiddle management positions with exposure to businesses and operations in more than12 countries.

Sunder is a qualified FCA, CISA, and CCSA. He is also the President of InformationSystems Audit Control Association (ISACA-USA), Mumbai Chapter for the year 2007-

08 and was a member of the Board of Advisors to Bombay Chartered AccountantsSociety (BCAS) for Internal Audit studies for the year 2005-06.

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RELIANCE ADA GROUP

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HISTORY

Reliance Capital Limited announced the launch of its life insurance business on February1, 2006. This was after obtaining the required regulatory approvals from the Registrar OfCompanies and the Insurance Regulatory and Development Authority.

It was in August 2005 that the ball was set rolling when Reliance Capital Limited, thefinancial arm of Reliance Anil Dhirubhai Ambani Group (ADAG) announced therequisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited; andthe formal transfer of shares took place in October 2005. The company will issue all

policy contracts under the Reliance Life Insurance Company limited name. All theexisting policy contracts also stand transferred to the Reliance Life Insurance entity withall the original contractual terms and commitments intact.

.

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SWOT ANALYSIS

STRENGTHS:

Dedicated Employees.

Well Efficient Management.

Strong and popular brand name.

Adaptability to changes.

Goodwill of the company.

Transparency in service.

WEAKNESS:

Lack of good services.

Lack of awareness about insurance among people.

Less coverage in Rural Areas.

Lack of credibility among the people because Reliance life insurance being a

private player

OPPORTUNITIES:

Fast growing economy.

Increasing per capita income in India.

Saving behavior.

High growth of Traditional industry.

THREATS:

Arrival of new entrants in the insurance industry.

Cut throat competition within the industry

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CORE VALUES

Reliance Life Insurance Company Limited has some core values which are listed asfollows:

1) Result Oriented2) Performance Driven3) Customer Focused4) Learning and Development Oriented5) Employee Centric6) Informal and Fun

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2.B COMPANY PROFILE OF BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance Company limited is a joint venture between two leadingconglomerates Bajaj Auto limited and Allianz AG company, whose total asset value is ofRs 5900000 cr. Bajaj whose wealth as of now is Rs 8000 cr. group in India, 55 years ofexperience, 4th largest group in the world. Above 15000 employees, largest 2 & 3 wheelermanufacture in India. Allianz established in 1890, who has 115 years of experience infinancial year.

Bajaj Auto is one of the most trusted name is Indian auto for over 55 years. At BajajAllianz customer delight is our guiding principle. Ensuring world-class solutions byoffering customized products with transparent benefits, supported by best technology isour business philosophy.

Notwithstanding the recession and a volatile stock market, Bajaj Allianz life insuranceposted a profit of Rs 45 cr for financial year 2009 against a loss of Rs 16 cr. in theprevious year.

The company new business premium fell to Rs 4491 cr. in the year against Rs 6674 cr.recorded in the last year.

We have been able to make a profit of profit of Rs 45 cr. even in these difficult times.Our new business premium declined by 30% to Rs 4491 cr. because the stock marketdeclined and we didnt open any new office in FY 09, Bajaj Allianz country managerand Bajaj Allianz life insurance CEO kamesh Goyal said.

Bajaj Allianz Life Insurance has around 1200 offices and the company would notincrease the number this year too, Goyal said.

The companys renewal premium grew by more than 100% to Rs 6133 cr. in the 2008-2009 as compared to Rs 3051 cr. in the previous fiscal year, he said.In the year, Bajaj Allianz life insurance issued 29 lakh policies which were the secondlargest in the industry.

Vision To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value.

MissionAs a responsible, customer focused market leader, we will strive to understand the

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insurance needs of the consumers and translate it into affordable products that delivervalue for money.

2.2) TRADITIONAL PLANS OF THE COMPANY

2.2.A )TRADITIONAL PLAN OF RELIANCE LIFE INSURANCE:-

Life insurance products are designed to suit the requirements of customers.Fundamentally the product provide for:

Risk cover

Investment

Health cover

In every product, to a certain degree, risk cover is imperative for it to fall under thecategory of insurance. Based on the coverage of the product, the premiums are calculatedand the customer pays accordingly. In order to suggest the right product, it is essential foran agent to understand the requirements of the customer well.

The traditional plans of the company have the following features:-

Fixed Tenure.

Potential for better returns

Transparency

Flexibility in investment

Flexibility to invest more

Flexibility to skip the premium Flexibility to choose the cover

High liquidity

Age, term, and sum assured decide the amount of premium.

Top- ups and switches are not allowed

Reliance Life Insurance Company Limited has offered 9Traditional plans to the customers, which are listed as follows:1) Reliance Term Plan2) Reliance Whole Life Plan3) Reliance Endowment Plan

4) Reliance Special Endowment Plan5) Reliance Cash Flow Plan6) Reliance Credit Guardian Plan7) Reliance Special Credit Guardian PlanEach of the above traditional plans is discussed as follows:

1) Reliance term plan:-

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This insurance policy is designed for those who only want life cover for the protection oftheir family, and do not wish to save for themselves. It can also be useful to businessfirms that wish to provide financial security to their business against the sudden loss ofpartners or valuable manpower. Since there is no saving element or bonus provision, thepremium is very low.

Hence, this is a high-risk plan with a low premium.

Features: -

a) Purely a term planb) Entry age minimum 18 years and maximum 65 yearc) Maximum premium paying term is 30 yeard) Loan facility N.A.e) Maturity amount = Sum assured

2) Reliance Whole Life Plan: -This insurance policy is designed for people who do not wish to avail of any benefits

themselves but wish to create an immediate estate to protect their family by availing ofinsurance cover on their life at a very low cost.

Features: -a) It is a whole life insurance policy with profitsb) Low cost life coverc) Maturity age is 85 year or 99 years last birthday as chosend) Maturity amount = Sum assured + Vested bonuse) Tax benefit is available

3)Reliance Endowment Plan: -Reliance Life Insurances Reliance Endowment Plan is the key to all your financialneeds. It is an inexpensive and easy way to protect you, your family or your business.In a nutshell this plan will keep you financially prepared for all the special occasions inyour life - your daughters wedding, your childs university education or even a newoffice for your business - by eliminating the burden that a shortage of money creates.In the event of your untimely death, Reliance Endowment Plan will also assist your lovedones through this difficult time by the financial support that it provides.Reliance Endowment Plan also gives you the additional benefit of participating in thecompanys profits, which you will receive at the end of the policy period.

Features: -a) Entry age minimum is 5 year and maximum 65 yearb) Maturity age minimum is 18 year and maximum 75 yearc) Minimum premium paying term is 5 year and maximum 35 year in case of regular andin case of single 15 yeard) Minimum sum assured is Rs. 25,000 or as determined by the minimum premiume) Maximum sum assured is Rs. 5, 00,000 (entry age below 18 years and no limit forentry age 18 and above)

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f) Premium mode annual, half yearly, quarterly and monthly (by salary deduction only)g) Loan up to 90% of the surrender value of the policyh) Maturity amount = Guaranteed sum assured + Reversionary bonus

4)Reliance Special Endowment Plan: -This insurance policy is designed for people who wish to combine savings with extendedsecurity. The unique feature of this policy is that life protection continues for five yearsafter you have stopped the payment of premium. Payment of sum assured at the end ofpremium paying term and extension of life cover thereafter for the full sum assured for aperiod of 5 years, are characteristics of the policy.This plan also participates in the profits.

Features: -a) Entry age minimum 12 year and maximum 65 yearb) Minimum sum assured is Rs. 25,000c) Minimum premium paying term is 10 year and maximum 40 yeard) Unique feature of this policy is that five year life protection continues after you havestopped the payment of premiume) Tax benefit is availablef) Under this policy bonus is compounded yearlyg) Loan facility is available

h) Maturity amount = Full sum assured before maturity date +Vested bonus at the time of maturity date

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2.2.B)TRADITIONAL PLANS OF BAJAJ ALLIANZ LIFEINSURANCE

I. ENDOWMENT PLAN

Saving plan, which offer bonuses, are excellent long term plan with complete safety.Our products offer additional benefits which include 4 times life cover at a littleextra cost, limited premium payment terms and compounded reversionary bonusesmaking it a very good long term investment.

1. Bajaj Allianz Invest Gain

Invest Gain is a specially designed plan that offers a unique combination of benefits thathelp you develop a sound financial portfolio for your family.

4 Times Life Cover at a little extra cost.

Limited premium payment option available.

Additional Benefits:

a) Accidental Death Benefit and Disability Benefit.b) Critical Illness Benefit and Hospital Cash Benefit.

c) Family Income Benefit: In case of death or accidental total permanent disability ofinsured, all future premiums are waived and 1% of the sum assured is paid monthly.

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Invest Gain Save Care Economy SP Life Time Care

Super Saver
http://bajajallianzlife.com/product-detail.asp?prodid=46http://bajajallianzlife.com/product-detail.asp?prodid=59http://bajajallianzlife.com/product-detail.asp?prodid=94http://bajajallianzlife.com/product-detail.asp?prodid=124http://bajajallianzlife.com/product-detail.asp?prodid=46http://bajajallianzlife.com/product-detail.asp?prodid=59http://bajajallianzlife.com/product-detail.asp?prodid=94http://bajajallianzlife.com/product-detail.asp?prodid=124


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2. Bajaj Allianz save Care Economy SP

A One-time payment Investment plan that provides for savings with high risk cover for10 years and also participates in the profits of the company. It offers you high risk coverwith easy liquidity and high returns.

a) A single premium endowment plan that participates in the profits.b) 10 year Investment plan.c) Benefits payable on maturity.c) Loans available.

3. Bajaj Allianz life time care

A whole life plan, which provides survival benefits at the age of 80, thereby makingsure you are financially secure at the time when you need it the most.Additional Benefits:

a) Accidental Death Cover and Disability Cover.b) Critical Illness Cover and Hospital Cash Cover.

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c) Waiver of Premium Benefit.

4.Bajaj Allianz Super Saver plan

Bajaj Allianz Super Saver is a regular premium endowment plan, which helpsyou save regular amounts for a safer tomorrow. It also provides you with extrabenefits of Guaranteed Additions to your sum assured, at the end of each policyyear.

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II. MONEY BACK PLAN

Money back plans are Traditional Insurance plans that provide the investor with

returns at regular stages of life.

CashGain

1)Bajaj Allianz Cash Gain plan

A Money back plan which guarantees 125% payout + bonuses.

Quadruple life cover.

5 easy payouts which give upto 125% + bonuses.

Additional Benefits:a) Accidental Death Benefit and Disability Benefit.b) Critical Illness Benefit and Hospital Cash Benefit.c) Family Income Benefit: In case of death or accidental total permanent disabilityof insured, all future premiums are waived and 1% of the sum assured is paidmonthly.

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http://bajajallianzlife.com/product-detail.asp?prodid=47http://bajajallianzlife.com/product-detail.asp?prodid=47


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2.3) INDUSTRY PROFILE

MEANING OF INSURANCE

Insurance may be described as a social device to reduce or eliminate risk of loss to lifeand property. Insurance is a collective bearing of risk. Insurance is a financial device tospread the risks and losses of few people among a large number of people, as peopleprefer small fixed liability instead of big uncertain and changing liability.

Insurance can be defined as a legal contract between two parties whereby one partycalled insurer undertakes to pay a fixed amount of money on the happening of aparticular event, which may be certain or uncertain. The other party called insured paysin exchange a fixed sum known as premium.

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

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. Todayinsurance industry is one of the most growing sectors in India. There is lot of potential inthe Indian Insurance Industry.

There are many issues, which require study. The scope of the study of Insurance industryof India would be very great as there are ongoing Developments in the industry after theopening of the sector.One of the major issues is the effects on LIC after the entry of private players in themarket. Though market share of LIC has been affected, it has improved in terms ofefficiency.

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

Right now the insurance industry has great opportunities in a country like India or Chinawhich huge population. Also the penetration of insurance in India is very low in both lifeand non-life segment so there is lot potential to be tapped. Before starting the discussionon insurance industry and related issues, we have to start with the basics of insurance. Sofirst we understand what is insurance? How the wordinsurance is different from thewordassurance? Etc.

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HISTORY OF INSURANCE

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 LloydsCoffee House in London where risk bearers used to meet to transact business. This coffeehouse became so popular that Lloyds became the one of the first modern insurancecompanies 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. TheGreat Fire of London in 1966 caused huge loss of property and life. With a view toproviding fire insurance facilities,

Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fireoffice.

Life insurance in its modern form came to India from England in 1818. The Oriental LifeInsurance Company was the first insurance company to be set up in India to help thewidows of European community. The insurance companies, which came into existencebetween 1818 and 1869, treatedIndian lives as subnormal and charged an extra premium of 15 to 20 per cent. The firstIndian insurance company, the Bombay Mutual LifeAssurance 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 andmanagement of these companies.By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 providentsocieties carrying on life insurance business in India. Insurance business flourished andso did scams, irregularities and dubious investment practices by scores of companies. Asa result the government decided to nationalize the life assurance business in India. TheLife InsuranceCorporation of India (LIC) was set up in 1956. The nationalization of life insurance wasfollowed by general insurance in 1972.

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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 the insured are often the sameperson.

Another important person involved in a life insurance policy is the beneficiary. Thebeneficiary is the person or persons who will receive the policy proceeds upon the deathof 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.

If you want to buy a whole life, universal life, or other cash value policy, plan to hold itfor at least 15 years. Canceling these policies after only a few years can more than doubleyour life insurance costs.

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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 againstpiracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, anumber of ships would carry a portion of another ship's cargo so that if one ship wascaptured, 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 repaidwith interest when the goods arrived safely.

Life insurance came about a little later in ancient Rome, where burial clubs were formedto 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, butaspects of it did continue through the Middle Ages, particularly with merchant and artisanguilds. 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 andlong-distance trade. But during the 14th to 16th centuries, transportation, commerce, andinsurance would again reemerge.Insurance in India can be traced back to the Vedas. For instance, yogakshema, the nameof Life Insurance Corporation of India's corporate headquarters, is derived from the RigVeda. 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 helpfamilies build houses, and to protect widows and children.

Modern Insurance

Illegal almost everywhere else in Europe, life insurance in England was vigorouslypromoted in the three decades following the Glorious Revolution of 1688. The type ofinsurance we see today owes its roots to 17th century England. Lloyd's of London, or asthey were known then, Lloyd's Coffee 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 insurance also appealed strongly to thegambling instincts of England's burgeoning middle class.Gambling was so rampant, in fact, that when newspapers published names of prominentpeople who were seriously ill, bets were placed at Lloyds on their anticipated dates ofdeath. Reacting against such practices, 79 merchant underwriters broke away in 1769 andtwo years later formed a New Lloyds Coffee House that became known as the real

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Lloyds. Making wagers on people's deaths ceased in 1774 when parliament forbade thepractice.

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 inCharleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored the first lifeinsurance corporation in America for the benefit of ministers and their dependents. Andthe first life insurance policy for the general public in the United States was issued, inPhiladelphia, on May 22, 1761.But it wasn't until 80 years later (after 1840), that life insurance really tookoff in a bigway. 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 forsudden and large losses. Two years later, Massachusetts became the first state to requirecompanies by law to maintain such reserves. The great Chicago fire of 1871 further

emphasized how fires can cause huge losses in densely populated modern cities. Thepractice of reinsurance, wherein the risks are spread among several companies, wasdevised specifically for such situations.

With the creation of the automobile, public liability insurance, which first made itsappearance in the 1880s, gained importance and acceptance?More advancement was made to insurance during the process of industrialization. In1897, the British government passed the Workmen's Compensation Act, which made itmandatory for a company to insure its employees against industrial accidents.

During the 19th century, many societies were founded to insure the life and health oftheir members, while fraternal orders provided low-cost, members only insurance. Eventoday, such fraternal orders continue to provide insurance coverage to members, as domost labor organizations. Many employers sponsor group insurance policies for theiremployees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for thesepolicies.

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BENEFITS OF LIFE INSURANCE

1) Risk cover: -Life Insurance contracts allow an individual to have a risk cover againstany unfortunate event of the future.

2) Tax Deduction: -Under section 80C of the Income Tax Act of 1961 one can get taxdeduction on premiums up to one lakh rupees. Life Insurance policies thus decrease thetotal taxable income of an individual.

3) Loans: -An individual can easily access loans from different financial institutions bypledging his insurance policies.

4) Retirement Planning: -What had provided protection against the financialconsequences of premature death may now be used to help them enjoy their retirementyears.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 fromones life insurance schemes can be utilized for educational needs of the insurer or hischildren.

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ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

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

Housing Finance has done exceedingly well in recent years. To protect the country'sforeign exchange reserves, the reinsurance arrangement are so organized that maximum

retention is made possible within the country while at the same time protecting interestsof the policy holders.

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ROLE OF IRDAMISSION

To protect the interests of the policyholders, to regulate, promote

and ensure orderly growth of the insurance industry and for matters

connected therewith or incidental thereto

The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act

as a strong and powerful supervisory and regulatory authority for insurance. Post

nationalization, the role of Controller of Insurance diminished considerably in

significance since the Government owned the insurance companies. But the scenario

changed with the private and foreign companies foraying in to the insurance sector. This

necessitated the need for a strong, independent and autonomous Insurance Regulatory

Authority was felt. As the enacting of legislation would have taken time, the then

Government constituted through a Government resolution an Interim Insurance

Regulatory Authority pending the enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for

the establishment of an Authority to protect the interests of holders of insurance policies,

to regulate, promote and ensure orderly growth of the insurance industry and for matters

connected therewith or incidental thereto and further to amend the Insurance Act, 1938,

the Life Insurance Corporation Act, 1956 and the General insurance Business

(Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of

India (for life insurance business) and General Insurance Corporation and its subsidiaries

(for general insurance business). The act extends to the whole of India and will come

into force on such date as the Central Government may, by notification in the Official

Gazette specify. Different dates may be appointed for different provisions of this Act.

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The Act has defined certain terms; some of the most important ones are as follows:

Appointed day means the date on which the Authority is established under the act.

Authority means the established under this Act. Interim Insurance Regulatory Authority

means the Insurance Regulatory Authority set up by the Central Government through

Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.

Words and expressions used and not defined in this Act but defined in the Insurance Act,

1938 or the Life Insurance Corporation Act, 1956 or the General Insurance Business

(Nationalization) Act, 1972 shall have the meanings respectively assigned to them in

those Acts. A new definition of "Indian Insurance Company" has been inserted. "Indian

insurance company" means any insurer being a company

(a) Which is formed and registered under the Companies Act, 1956

(b) in which the aggregate holdings of equity shares by a foreign company, either by

itself or through its subsidiary companies or its nominees, do not exceed twenty-six

percent, paid up capital in such Indian insurance company

(c) Whose sole purpose is to carry on life insurance business, general insurance business

or re-insurance business?

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CHAPTER 3

CURRENTSCENERIO

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CURRENT SCENERIO

3.1) CURRENT SCENERIO OF THE INSURANCE INDUSTRY

With largest number of life insurance policies in force in the world, insurance happens tobe a mega opportunity in India. Its a business growing at the rate of 15-20 per centannually and presently is of the order of Rs. 450 billion. Together with banking services,it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 percent of GDP and funds available with LIC for investment are 8 per cent of GDP.

Yet, nearly 80 percent of Indian population is without life insurance cover while healthinsurance and non-life insurance continues to be below international standards. And thispart of the population is also subject to weak social security and pension systems withhardly any old age income security. This it is an indicator that growth potential for the

insurance sector is immense. A well-develop and evolved insurance sector is needed foreconomic development as it provides long term funds for infrastructure development andat the same time strengthens the risk taking ability. It is estimated that over the next tenyears India would require investments of the order of one trillion US dollar. Theinsurance sector, to some extent, can enable investment in infrastructure development tosustain economic growth of the country. Insurance is a federal subject in India. There aretwo legislation that govern the sector - The Insurance Act-1938 and The IRDA Act-1999.

In India, insurance is generally considered as a tax-saving device instead of its otherimplied long term financial benefits. Indian people are prone to investing in propertiesand gold followed by bank deposits. They selectively invest in shares also but thepercentage is very small. Even to this day, Life Insurance Corporation of India dominatesIndia insurance sector. With the entry of private sector players backed by foreignexpertise, Indian insurance market has become more vibrant. Business is becomingincreasingly vulnerable due to wide variety of risk particularly after September 11, 2001disaster in which twin tower located in the hearts of New York city were crashed byterrorist attack resulting in loss of 6000 human lives as well as financial loss to the extentof $45 billion. The impact of this terrorist attack has created new horizon of risk to thebusiness world today.

However, rapid changes in the global economy, development of technology and e- business already gathered momentum. Increased dependency on technology hasoriginated new risks that have resulted in well-published incidents. Computer hackersobtaining credit card information from visa and Power-Gen, the love bug virus, cyberextortion, web content liability, professional errors and omissions, computers and othercrimes and activities such as terrorism, kidnapping and companys executive andextortion of money, commercial liability etc have significant impact on business resultingin extreme financial loss, commercial embarrassment or regulatory implications.

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Corporation insurance/risk managers, under the circumstances, have to demandincreasingly complex insurance products. They have to be more attentive andknowledgeable about emerging risks, how those risks are managed effectively andefficiently, and how they could ultimately affect a companys financial situation andtherefore its position in the market place. In short, how such risks are managed and can

give to an insured a competitive advantage.

In the changing times, adoption of e-commerce into business models, the integration ofweb-based communication and data transfer capabilities into the business operations, andleveraging of advanced network and technology architecture for maximum benefit are thenew horizon of the risks. For the corporate insurance/risks managers, these newexposure-cyber-risks-can lead to cyber losses, widening the interpretation of whatconstitute insure property damage, particularly as it relates to information technology anddata.All the while, organizations are tremendous pressure to reduce expenses and increaseprofit margin, and cannot afford to suffer a property loss of business interruption due to

any cause (risk). How a company identifies, quantifies, qualifies and manages these newrisks exposure, in addition to the well-known tradition risks, is becoming an importantfactor in creating shareholders value. This often means changing the way. Everyone inthe organization have to think about risk.

Insurance managers are seeing price levels (premium) continue to rise-albeit modestly-intodays primarily commercial property and reinsurance markets. They are demanding thatinsurers improve their risk assessment and quantification offerings so that an insured mayavail the benefit in cost (premium rate) on account of well-managed risk.The good news for insurance managers is that as the economy evolves, insurers areincreasingly matching that evaluation with new products, services and capabilities due toopening up the insurance market to the private players.

Insurers who are truly listening to their customers and striving to be more in tune withtheir needs are responding to the fast changing corporate insurance and risk managementlandscape. They are listening to their customers. They are making fresh approaches toaddress the new challenges faced by insured organization by designing the new productsas per the needs. Insurers are providing value added services to insured to protect thevalue created by the business.

Insurers are increasingly required to develop and expand their information technologyplatforms to ensure that the vast amount of data they collect about their customers.Insurance/risk portfolio can easily and seamlessly be transformed into valuable riskmanagement information. To help their customers, insurers should make better-informeddecisions. They must be able to swiftly deliver this data to their customers (insured)anywhere in the world. Insurer are also discovering that risk assessment have to becustomized to meet policyholders new exposures and needs. The insurance industry isstepping up and addressing these challenges in several different ways.

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3.2)CURRENT SCENARIO OF RELIANCE LIFE INSURANCE

RLIC offers wide range of innovative life insurance products, targeted at individuals andgroups. It offers need based products that caters to four distinct segments namely

protection, child, retirement and investment plans. RLIC is committed to emerge as atransnational Life Insurer of global scale and standard.

44

Reliance Life Insurance Company Limited (RLIC) is amongst the fastest growing lifeinsurance companies in India. It is also amongst the top four private sector life insurancecompanies in India. (As on FY 2008-2009)

As on March 31, 2009, RLIC has an annualized premium of Rs. 30 billion with a marketshare of 10.3%. It has leapfrogged on the growth path and has reached the 4 million

policy mark, in a short span of within 3 years. RLIC has a strong distribution network of1,145 branches with more than 149,000 agents.


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Insurances Market Share in Comparison of Other Private company

If we look at the status of Reliance Life Insurances market share in comparison of other

private company in comparison of premium earned:-

If we talk the growth of Insurance industrys private players in recent years, the data will

reflect:-

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CHAPTER 4

RESEARCHMETHODOLOGY

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RESEARCH METHODOLOGY

RESEARCH DESIGN:-

COMPARITIVE STUDY- A comparative study has been undertaken to compare thetraditional Plans of Reliance Life Insurance with that of Bajaj Allianz life insurance.

DATA TYPE

INTRODUCTION: - Any organization whether big or small, private or public needsdifferent type of information to know its popularity. I have gathered secondary data andprimary data and collected information from the combination of these two data.

PRIMARY DATA: - Primary data collection method was decided for observingworking of the company and approaching the customers directly face to face .Agreat care was taken while collecting the primary data to answer that it is relevant,

accurate, current and unbiased.

SECONDARY DATA: - Secondary data collection method was used byreferring to various websites, books and newspapers for collecting information

regarding the project under study. Secondary data consist of the information thatalready exists somewhere else for some another purpose.

SAMPLING TECHNIQUES:-

SAMPLE SIZE- A sample size of 50 was taken to be analyzed.

SAMPLE LOCATION:-Various sectors of Kamla Nagar, Civil lines, Mukherji Nagar,Model Town and selected areas of Delhi.

SAMPLING PROCESS: - Convenient sampling was used to overcome the time andmoney constraints that could have been faced by us while collecting the data. Thecustomers were contacted face to face directly and also by way of telephonicconversation with them.

ANALYTICAL TOOLS: - The data collected were arranged accordingly and statisticaltools like bar graphs and pie-charts were used to analyze and present the data.

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RESEARCH INSTRUMENT USED:-

SAMPLING MEDIA: - Printed questionnaires consisting several questions were askedto have an idea of customers view about Reliance Life Insurance plans followed bypersonal questions.

FIELD WORK: -Rigorous field work was undertaken to locate the interested andpotential respondents to fulfill the objectives of the study.

THE PRIMARY OBJECTIVEOF THE STUDY:-

The primary objective of the research study is to have a detailed analysis of Reliance LifeInsurance bringing in focus the future prospects of the (Anil Dhirubhai Ambani group)with relevance to the customer perception regarding the various plans and productsoffered by Reliance Life Insurance.

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4.1)DATA ANALYSIS AND INTERPRETATION

PERSONAL DETAILS

1) AGE:

a) 18-30

b) 31-50

c) 51-65

AGE NO. OF RESPONDENTS PERCENTAGE

18-30 21 42%

31-50 19 38%

51-65 10 20%

TOTAL 50 100%

49

4238

20

0

510

15

20

25

30

35

40

45

NO.

OF

RES

PON

DEN

TS

18 to 30 31 to 50 51 to 65

AGE (in year)

AGE WISE CLASSIFICATION


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INTERPRETATION:-The bar graph reveals that 42% of the respondents

belong to the age group of 18-30 years, 38% lies in the age group of 31-50

years and 20% of them lie in the age group of 51-65 years.

2) OCCUPATION:

a) Service

b) Business

c) Profession

d) Housewife

e) Retired

OPTION NO. OF RESPONDENTS PERCENTAGE

Service 16 32%

Business 14 28%

Profession 5 10%

Housewife 8 16%

Retired 7 14%

TOTAL 50 100%

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INTERPRETATION:-The above bar graph reveals that 32% of the total

respondents were servicemen, 28% of them belonged to the business class, 10%

were professionals, 16% were housewives and 14% of the total respondents fall in

the retired category.

3) INCOME:

a) 150000-300000

b) 300000-500000

c) Above 500000

OPTION NO. OF RESPONDENTS PERCENTAGE

150000-300000 24 48%

300000-500000 14 28%

Above 500000 12 24%

TOTAL 50 100%

51

32

28

10

16

14

0

5

10

15

20

25

30

35

Service Business Profession Housewife Retired

OCCUPATION

OCCUPATION WISE CLASSIFICATION


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INTERPRETATION:-The above bar graph reveals that out of the total respondents

48% lie in the income group of 150000-300000, 28% of the total respondents

belonged to the income group of 300000-500000 and 24% lie in the income group of

people earning an income of above Rs. 500000p.a.

4) FAMILY MEMBERS

a) 2b) 3c) 4d) Above 4

OPTION NO. OF RESPONDENT PERCENTAGE

2 11 22%

3 9 18%

4 24 48%

Above 4 6 12%

TOTAL 50 100%

52

48

28 24

010

20

30

40

50

N O.

OF

RE

SP

ON

DE

NT

S

150000-

300000

300000-

500000

ABOVE

500000

INCOME (in RS.)

INCOME WISE CLASSIFICATION


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INTERPRETATION: The above bar graph shows that 22% of the total respondents hada family of 2 members, 18% of them had 3 family members, 48% of them had 4 familymembers, and 12% of them had the no. of family members above 4.

Q1. Where do you prefer to invest?

a) fixed deposits

b) stock

c) mutual funds

d) insurance

e) others

Option No. of respondents Percentage

Fixed deposits 5 10%

Stock 10 20%

Mutual fund 10 20%Insurance 18 36%

others 7 14%

TOTAL 50 100%

53

22 18

48

120

10

20

30

4050

No.

of

resp

ond

ents

2 3 4Above 4

No. of family members

MEMBER WISE CLASSIFICATION


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20%

20%

36%

14%

fixed deposits

stocks

mutual funds

insurance

others

Interpretation: The above pie chart shows that out of 50 respondents, 10% preferred toinvest in fixed deposits, 20% in stocks, 20% in mutual funds, 36% in insurance and 14%in others like property, gold, etc.

Q2. What are your priorities for investment?

a) protecting your family against pre-mature death

b) wealth creation

c) retirement needs

d) child education and marriage

e) protect income against disability, sickness or critical illness


Protecting your family against pre

mature death

10 20%

Wealth creation 14 28%

Retirement needs 5 10%

Child education and marriage 7 14%

Protect income against disability,

sickness or critical illness

14 28%

TOTAL 50 100%

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20%

28%14%

28%

10%

pre-mature death

wealth creation

retirement

child future

disablity

Interpretation: The above pie chart shows that out of 50 respondents, 20% of theminvest for protecting their family against premature death, 28% for creating wealth, 10%for meeting their future retirement needs, 14% for child education & marriage and 28%for protection against disability and sickness.

Q3. What is your main motive behind investing in life insurance?

a) tax benefit

b) savings

c) risk cover


Tax benefits 27 54%

Savings 5 10%

Risk cover 18 36%

TOTAL 50 100%

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54%

10%

36%

tax benefit

savings

risk cover

Interpretation: The above pie chart shows that out of the sample respondents, 54% have

tax benefit 10% have savings and 36% have risk cover as their main motive for makingan investment in life.

Q4. What kind of investment do you prefer?

a) high risk high gain

b) low risk low gain

c) moderate

d) vary times to times


High risk high gain 8 16%

Low risk low gain 5 10%

Moderate 12 24%

Vary times to times 25 50%

TOTAL 50 100%

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16%

10%

24%

50%

high risk -high gain

low risk- low gain

moderate

varied

Interpretation: The above pie chart shows that out of 50 respondents, 16% preferredhigh risk- high gain form of investment 10% preferred low risk- low gain form ofinvestment, 24% preferred moderate investment and 50% preferred varied form ofinvestment.

Q5.Are you interested to invest in Traditional Plans?

a) YES

b) NO


YES 36 72%

NO 14 28%

TOTAL 50 100%

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72%

28%

YES

NO

Interpretation: The above pie chart shows that 72% of the respondents preferred toinvest in Traditional Plans.

Q6. What is your level of annual investment?

a) below 20000

b) 20000-40000

c) above 40000


Below 20000 41 82%

20000-40000 7 14%

Above 40000 2 4%

TOTAL 50 100%

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82%

14%4%

below 20 K

20K- 40K

above 40 K

Interpretation: The above pie chart shows that 82% of the respondents, are willing toinvest below Rs 20,000 per annum, 14% of them want to invest within Rs 20,000 perannum to Rs 40,000 and 4% wanted to invest over and above Rs 40,000.

Q7. What factors would you consider most important before choosing an insurance

policy?

a) publicity of the company

b) reputation of the company

c) quality of life advisors

d) after sales-supporting of the company


Publicity of the co. 5 20%

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Reputation of the co. 25 50%

Quality of life advisors 10 10%

After sale-services 10 20%

TOTAL 50 100%

20%

50%

10%

20%

publicity

reputation

quality of advisors

after sales support

Interpretation: out of the samplerespondents, 20% considers publicity of the company,50% considers reputation of the company, 10% considers quality of life advisors, and20% considers after sales support of the company as the most important factor forchoosing an insurance company.

Q8. Which life insurance company would you prefer the most to invest in?

a) reliance life insurance (RLIC)

b) Bajaj Allianz life insurance


RLIC 21 42%

BAJAJ ALLIANZ 29 58%

TOTAL 50 100%

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42%

58%

reliance

bajaj allianz

Interpretation: Out of 50 respondents, 42% preferred to invest in reliance life insurance

over 58% of the respondents who prefer to invest in Bajaj Allianz life insurance.

Q9. If reliance life insurance, then which particular plan you would like to invest in?

a) Reliance Term Plan

b) Reliance Whole Life Plan

c) Reliance Endowment Plan

d) Reliance Special Endowment Plan


Reliance term plan 6 28.58%

Reliance whole life plan 3 14.28%

Reliance endowment plan 9 42.86%

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Reliance special endowment plan 3 14.28%

TOTAL 21 100%

28.58%

14.28%

42.86%

14.28%

Term plan

Whole life plan

Endowment plan

Special endowment plan

Interpretation: Out of 21 respondents, 28.58% preferred to invest in term plan, 14.28%in whole life plan, 42.86% in endowment plan and 14.28% of them preferred to invest inspecial endowment plan of reliance life insurance.

Q10. If Bajaj Allianz life insurance, then which particular plan you would like toinvest in?

I. ENDOWMENT PLAN

a) Bajaj Allianz Invest Gain

b) Bajaj Allianz save Care Economy SP

c) Bajaj Allianz life time care

d) Bajaj Allianz Super Saver plan

II. MONEY BACK PLAN

i. Bajaj Allianz Cash Gain plan


Invest gain plan 3 10.35%

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Save care economy SP 6 20.69%

Life time care 7 24.15%

Super saver plan 3 10.35%

Cash gain plan 10 34.46%

TOTAL 29 100%

Interpretation: Out of 29 respondents, 10.35% of them plan to invest inBajaj Allianz- Invest Gain, 20.69% wish to invest in Bajaj Allianz save CareEconomy SP, 24.15% want to invest in Bajaj Allianz life time care, 10.35% inBajaj Allianz Super Saver plan and 34.46% prefer to invest in Bajaj AllianzCash Gain plan.

4.2) SIGNIFICANCE OF STUDY

Life insurance is one of the most rapidly growing sectors in India. The main reason

behind the growth can attributed to the high population density, improving economical

condition, improving education level and improving awareness. Due to these factors there

is still huge scope for growth in this sector. Like any other business when the

opportunities are present everybody tends to enter the industries. This growth hence,

fetches the new competitors as well as new strategies from existing players. To sustain in

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any competitive industry, the organization must adapt to existing strategies and adopt

new ones. This study will focus on the analysis of Reliance Life Insurance in comparison

with the present scenario of Bajaj Allianz Life Insurance with respect to the Traditional

Plans of both the companys. This will mainly cover the following aspects:

To know about the awareness and popularity of various Traditional Plans offered

by Reliance Life Insurance and Bajaj Allianz Life Insurance.

How Reliance Life Insurance can develop and sustain a good distribution

network.

These will provide it benefit both in terms of better market coverage as well as better

penetration.

4.3) SCOPE OF THE STUDY

1.) This helps in finding out vast potential of insurance company.

2.) The study was conducted inNational Capital Region (NCR) only.

3.) The number of respondents to be surveyed can be improved.

4.) This study was conducted by comparing the performances & products of three private

& government insurance players in insurance industry.

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5.) This study was conducted to analyze the market stand of Reliance life insurance

Company limited and Bajaj Allianz Life Insurance Company Limited of India insurance

companies.

6.) This study is done to eliminate all the myths which people have in their minds

regarding Insurance Sector.

4.4) OBJECTIVES

To have a detailed understanding of Reliance Life Insurance and Bajaj AllianzLife Insurance.

To find out various reasons considered while investing in policies.

To get knowledge about the market exposure and future prospects about RelianceLife Insurance.

To know the perception of the consumers about the life insurance.

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To analyze the Traditional plans of Reliance Life Insurance and compare it withBajaj Allianz.

To know about the brand awareness of Reliance Life Insurance, its customerpreferences over Bajaj Allianz in the market.

To study a proper knowledge about the life insurance industry.

To understand the consumer choice while investing in policies.

CHAPTER 5

DISCUSSION AND FINDINGSOF THE STUDY

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FINDINGS OF THE STUDY

RECOMMENDATION AND SUGGESTIONS

CONCLUSION

LIMITATIONS

BIBLIOGRAPHY

ANNEXURE:QUESTIONNAIRE

5.1) FINDINGS OF THE STUDY

1.) The survey reveals that still a large proportion of population is interested to invest inother forms of investment other than insurance as still most of them are unaware aboutthe importance of insurance in their life.

2.) Basically people make varied form of investment for creating wealth, to protect theirfamilies against pre-mature death and to protect income against disability, sickness orcritical illness.

3.) The main motive of the individuals investing is receives benefits U/S 10/10D. Peoplegenerally consider insurance as a tax saving device.

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4.) Mostly people prefer time to time form of investment as they are not willing to takehigh degree of risk.

5.) 72% of the respondents are preferred to invest in Traditional Plans.

6.) Most of the people prefer to make an annual investment up to a maximum of Rs.20,000 per annum.

7.) When the product is like life insurance, reputation of the company, publicity of thecompany & after sale services of the company matters a lot. This means that peoplewould choose that insurance company only, where the quality of life advisors issatisfactory.

8.) Most people prefer to invest in Bajaj Allianz Life Insurance as compared to making aninvestment in Reliance Life Insurance.

9.) The most preferable Traditional plan of Reliance Life Insurance is Endowment Plan.

10.) The most preferable plan of Bajaj Allianz Life Insurance co. is Cash Gain Plan.

5.2) SUGGESTIONS & RECOMMENDATIONS

Based on the observations of the study some suggestions for the organization are made as

follows:

1.) Quality of advisors is also as important as the quantity. Thus company should go

mainly for qualified professionals.

2.) Company should increase its budget on publicity so that awareness can be increased.

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3.) Clarity and transparency should be provided to the customer regarding various

products.

4.) Training sessions should be planned in advance so that schedule can be provided to

the advisor in advance.

5.) Apart from the Brand Positioning in urban area, a strategy should be adopted by

Reliance to make its brand also near to middle level, or high aspirant people because they

are the main source of the business in India

6.) Awareness Camp to the sub urban area should be focused by Reliance.

7.) Some innovative technique or product is required in order to attract the consumer.

5.3) CONCLUSION

1.) The customers are very much sensitive towards their investment. They would like toinvest only in that insurance company which enjoys good public image along with quality

good services

2.) The result of the survey conducted shows that Bajaj Allianz Life Insurance is theleader in life insurance industry but Reliance Life Insurance and other private players aregiving it a close competition.

3.) The motive of the people behind investing in life insurance is the tax benefits that theywould receive under sec 80C and 10/10D.

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4.) In Life Insurance industry, the after sales support of the company is as important asthe quality of life advisors.

5.4) LIMITATIONS

There were some limitations faced during the study as discussed below:

Since the study was taken for two months, so there was a constraint of time andeffort.

The study was limited only to some of the Delhi regions so the results may bebiased.

Questionnaire was given to 125 people however only 50 responded to it, which isvery small for such type of study.

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The biasness of consumer or responses error cannot be eliminated.

Most of the people are not aware about the Importance and the necessity ofinsurance in their life.

Adverse perception of the people towards insurance sector- People considerinsurance as a tax saving device.

Lack of awareness about the earning opportunity in the insurance sector.

5.5) BIBLIOGRAPHY

www.reliancelifeinsurance.com

www.adagroup.com

www.irda.com

www.bajajallianzlifeinsurance.com

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http://www.reliancelifeinsurance.com/http://www.adagroup.com/http://www.irda.com/http://www.bajajallianzlifeinsurance.com/http://www.reliancelifeinsurance.com/http://www.adagroup.com/http://www.irda.com/http://www.bajajallianzlifeinsurance.com/


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www.allianzbajaj.com

5.6) ANNEXURE

QUESTIONNAIRE

A comparative analysis of consumer perception regarding Traditional plans of

Reliance Life Insurance with that of Bajaj Allianz Life Insurance.

NAME: ___________________________

PERSONAL DETAILS

1) AGE:_________________

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2) OCCUPATION:______________

3) INCOME:___________________

4) FAMILY MEMBERS:_________

Q1. Where do you prefer to invest?

a) Fixed deposits

b) Stock

c) Mutual funds

d) Insurance

e) Others

Q2. What are your priorities for investment?

a) Protecting your family against pre-mature death

b) Wealth creation

c) Retirement needs

d) Child education and marriage

e) Protect income against disability, sickness or critical illness

Q3. What is your main motive behind investing in life insurance?

a) Tax benefit

b) Savings

c) Risk cover

Q4. What kind of investment do you prefer?a) High risk high gain

b) Low risk low gain

c) Moderate

d) Vary times to times

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Q5.Are you interested to invest in Traditional Plans?

a) Yes

b) No

Q6. What is your level of annual investment?

a) below 20000

b) 20000-40000

c) above 40000

Q7. What factors would you consider most important before choosing an insurance

company?

a) publicity of the company

b) reputation of the company

c) quality of life advisors

d) after sales-supporting of the company

Q8. Which life insurance company would you prefer the most to invest in?

a) Reliance life insurance

b) Bajaj Allianz life insurance

Q9. If reliance life insurance, then which particular plan you would like to invest in?a) Reliance Term Plan

b) Reliance Whole Life Plan

c) Reliance Endowment Plan

d) Reliance Special Endowment Plan

Q10. If Bajaj Allianz life insurance, then which particular plan you would like to

invest in?

I. ENDOWMENT PLAN

a) Bajaj Allianz Invest Gain

b) Bajaj Allianz save Care Economy SP

c) Bajaj Allianz life time care

d) Bajaj Allianz Super Saver plan

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II.MONEY BACK PLAN

a) Bajaj Allianz Cash Gain plan

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