A SUMMER TRAINING

REPORT
ON

“STUDY OF CONSUMER’S PERCEPTION AND LIFE INSURANCE

POLICIES IN RELIANCE LIFE INSURANCE COMPANY LTD.”
IN
RELIANCE LIFE INSURANCE COMPANY
LTD.

As partial fulfilment for the award of the degree

of
BACHELOR OF BUSINESS
ADMINISTRATION (BBA)

MAHARISHI DAYANAND UNIVERSITY ,ROHTAK

Session 2022-2023
SUBMITTED TO:MRS LEENAGAURI SUBMITTED BY:SANDHYA TYAGI
CONTROLLER OF EXAMINATION BBA 5TH SEM
MDU, ROHTAK REG. NO.2011411038
ROLL NO.120179010057

DECLARATION

I hereby declare that this project work done on “Study of Consumer’s Perception and Life
Insurance Policies in Reliance Life Insurance Company Ltd.” is my work, carried out
under the guidance of my faculty guide Mrs. Leena Gauri and company guide Mr. Anand
Kishore, Sr. Branch Manager, Reliance Life insurance Company Limited, Patna. The results
reported in this study are genuine, original and the script is written by me.

SANDHYA TYAGI
ROLL NO.120179010057

ACKNOWLEDGEMENT

A internship report is a result not only of the student who prepared it, but also the combine
effort of the faculty guide, staffs and members of the institute where the project is done and
most importantly the advisor who gives the final touch. On the successful completion of my
internship, I would like to express my heartfelt gratitude to the people without whose help
and kind co- operation this work would not have been possible.

First and foremost I want to thank The Almighty for blessings with which i was able to
complete my work without much difficulty.

I express my deep sense of gratitude to esteemed Mr. Anand Kishore, Sr. Branch Manager,
Reliance Life Insurance Company Ltd., Patna for permitting me to work as trainee in the
esteemed organisation. I also wish to thank for his guidance and co-operation during the
training.
A special thank to Ms. Farah Deeba, Master Trainer., Reliance Life Insurance Company Ltd.,
Patna for her help and guidance.I would like to express my sincere gratitude towards my
faculty guide, Mrs. LEENA GAURI for guiding me throughout the internship and providing
me constant moral support & invaluable feedback.

I have deep admiration for my teachers at KL MEHTA DAYANAND COLLEGE FOR

WOMEN for nurturing my interest in the subject. Their dedication has instilled my faith in
academics and has continued to inspire me.
Last but not the least love, care and support of parents, sibling and friends is indeed valuable.
Finally, I thank to one and all, who helped me directly or indirectly in completing the
internship. SANDHYA TYAGI

CONTENTS

S.No. Particulars Page No.

* List of Figures and Tables 1

1 Abstract and Introduction

2 Company Profile

3 Research Methodology

4 Data Analysis
 5 Finding and Conclusion

6 Recommendations/Suggestions

7 Limitations

Bibliography

Annexure

LIST OF FIGURES AND

TABLES

Fig. and Table No. Particulars Page No.

1 Awareness of consumers

2 Purpose for buying an insurance policy

3 Amount of money want to invest

4 Buying behaviour influenced by

5 Company in which you believe

6 Way to pay the premium

7 Mode to pay the premium

8 Plans which consumers want

9 Satisfaction level with return

10 Reasons for not taking policy

CHAPTER No. 1
ABSTRACT AND INTRODUCTION
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance –
Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector
financial services companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth. Reliance Capital has interests in asset
management and mutual funds, stock broking, life and general insurance, proprietary
investments, private equity and other activities in financial services.

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered

with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934.

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

Vision
Empowering everyone live their dreams.

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

• Abstract

India is a country where the average selling of Life insurance policies is still lower than many
Western and Asian countries, with the second largest population in world the Indian insurance
market is looking very prospective to many multinational and Indian insurance companies for
expanding their business and market share. Before the opening of Indian market for
Multinational Insurance Companies, Life Insurance Corporation (LIC) was the only company
which dealt in Life Insurance and after opening of this sector to other private companies, all
the world leaders of life insurance have started their operation in India. With their world
market experience and network, these companies have offered many good schemes to lure all
type of Indian consumers but unfortunately failed to get the major share of market. Still the
LIC is the biggest player in the life insurance market with approx 65% market share. But why
Indian consumers do not trust on many companies and why the major population of India
does not have any life insurance policy or what are the factors plays major role in buying
behaviour of consumers towards life insurance policies.

• Introduction

Life is full of risk and uncertainties. Since we are the social human being we have certain
responsibilities too. Indian consumers have big influence of emotions and rationality on their
buying decisions. They believe in future rather than the present and desire to have a better
and secured future, in this direction life insurance services have its own value in terms of
minimizing risk and uncertainties. Indian economy is developing and having huge middle
class societal status and salaried persons. Their money value for current needs and future
desires here the pendulum moves to another side which generate the reasons behind holding
a policy. Here the attempt has been made in this research paper to study the buying
behaviour of consumers towards life insurance services. Life insurance is one of the best
known insurance products today. People buy these products as investment tools and also as
protection for themselves and their families. All the insurance companies the world over
are looking at attracting the eye balls of customer and positioning their solutions
innovatively to cater to niche and specific markets. One of the most critical aspects both from
the view point of the customer and the insurer is getting important and relevant leads that
can be beneficial for both.

• Origin of Insurance

Almost 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 that, perhaps,
was how insurance made its beginning. Life insurance had its origins in ancient Rome, where
citizens formed burial clubs that would meet the funeral expenses of its members as well as
help survivors by making some payments. As European civilization progressed, its social
institutions and welfare practices also got more and more refined. With the discovery of new
lands, sea routes and the consequent growth in trade, Medieval guilds took it upon
themselves to protect their member traders from loss on account of fire, shipwrecks and the
like.

Since most of the trade took place by sea, there was also the fear of pirates. So these guilds
even offered ransom for members held captive by pirates. Burial expenses and support in
times of sickness and poverty were other services offered. Essentially, all these revolved
around the concept of insurance or risk coverage. That's how old these concepts are, really.

In 1347, in Genoa, European maritime nations entered into the earliest known insurance
contract and decided to accept marine insurance as a practice.

The first step

Insurance as we know it today owes its existence to 17th century England. In fact, it began
taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London,
where merchants, ship-owners and underwriters met to discuss and transact business. By the
end of the 18th century, Lloyd's had brewed enough business to become one of the first
modern insurance companies.

Enter companies

The first stock companies to get into the business of insurance were chartered in England in
1720. The year 1735 saw the birth of the first insurance company in the American colonies
in Charleston, SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life
insurance corporation in America for the benefit of ministers and their dependents. However,
it was after 1840 that life insurance really took off in a big way. The trigger: reducing
opposition from religious groups.

The growing years

The 19th century saw huge developments in the field of insurance, with newer products being
devised to meet the growing needs of urbanization and industrialization. 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 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.
There were more offshoots of 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. With the advent of the
automobile, public liability insurance, which first made its appearance in the 1880s, gained
importance and acceptance. 5

In the 19th century, many societies were founded to insure the life and health of their
members, while fraternal orders provided low-cost, members-only insurance.
Even today, such fraternal orders continue to provide insurance coverage to members as do
most labour 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
 6.

In India

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 practised by the Aryans. Burial societies of the kind found in ancient Rome were formed
in the Buddhist period to help families build houses, protect widows and children.
Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in
1870. Other companies like Oriental, Bharat and Empire of India were also set up in the
1870- 90s. It was during the Swadeshi movement in the early 20 th century that insurance
witnessed a big boom in India with several more companies being set up.
As these companies grew, the government began to exercise control on them. The Insurance
Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that
looked into investments, expenditure and management of these companies' funds. By the
mid- 1950s, there were around 170 insurance companies and 80 provident fund societies in
the country's life insurance scene. However, in the absence of regulatory systems, scams and
irregularities were almost a way of life at most of these companies.
As a result, the government decided nationalise the life assurance business in India. The Life
Insurance Corporation of India was set up in 1956 to take over around 250 life companies.
For years thereafter, insurance remained a monopoly of the public sector. It was only after
seven years of deliberation and debate – after the RN Malhotra Committee report of 1994
became the first serious document calling for the re-opening up of the insurance sector to
private players that the sector was finally opened up to private players in 2001.
The Insurance Regulatory & Development Authority, an autonomous insurance regulator set
up in 2000, has extensive powers to oversee the insurance business and regulate in a manner
that will safeguard the interests of the insured.
 7

• 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 spreads 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 is a scheme of economic cooperation by
which members of the community share the unavoidable risks.
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 Insure or Insurant pays in
exchange a fixed sum known as premium. The insurer and the insurant are also known as
Assurer or Underwriter and Assurant, respectively. The document which embodies the
contract is called the policy.

• Types of insurance contract

• Life insurance
• General insurance

• Life Insurance
Life insurance is a contract for payment of money to the person assured (or to the person
entitled to receive the same) on the occurrence of an event insured against.
Usually the contract provides for –
Payment of an amount may be on the date of maturity or at specified periodic intervals or
after death, if it occurs earlier.
Periodical payment of insurance premium can be done by the assured to the corporation
who provides the insurance.
Who can buy a life insurance policy?
Any person above 18 years of age and who is eligible to enter into a valid contract.
Subject to certain conditions, a policy can be taken on the life of a spouse or children.

What is a Whole Life Policy?

When most people think of life insurance, they think of a traditional whole life policy. These
are the simplest policies to understand: You pay a fixed premium every year based on your
age and other factors, you earn interest on the policy's cash value as the years roll by, and
your beneficiaries get a fixed benefit after you die.
The policy takes you into old age for the same premium you started out with. Whole life
insurance policies are valuable because they provide permanent protection and accumulate
cash values that can be used for emergencies or to meet specific objectives. The surrender
value gives you an extra source of retirement money if you need it.

What is an Endowment Policy?

Unlike whole life, an endowment life insurance policy is designed primarily to provide a
living benefit and only secondarily to provide life insurance protection. Therefore, it is more
of an investment than a whole life policy. Endowment life insurance pays the face value of
the policy either at the insured's death or at a certain age or after a number of years of
premium payment.
Endowment life insurance is a method of accumulating capital for a specific purpose and
protecting this savings program against the saver's premature death. Many investors use
endowment life insurance to fund anticipated financial needs, such as college education or
retirement. Premium for an endowment life policy is much higher than those for a whole life
policy.
What is a Money Back Policy?
This is basically an endowment policy for which a part of the sum assured is paid to the
policyholder in the form of survival benefits, at fixed intervals, before the maturity date. The
risk cover on the life continues for the full sum assured even after payment of survival
benefits and bonus is also calculated on the full sum assured. If the policyholder survives till
the end of the policy term, the survival benefits are deducted from the maturity value.

Why does one need Life Insurance?

Life insurance is designed to protect you and your family against financial uncertainties
that may result due to unfortunate demise or illness. You can also view it as a comprehensive
financial instrument – as a part of your financial planning offering you savings &
investment facilities 9

along with cover against financial loss. By choosing the right policy as per your needs i.e.
customized solutions, you will be able to plan for a secure future for yourself and your loved
ones.

Choosing the right plan

Identifying the right plan basis your needs is the first crucial step towards insurance planning.
At RLIC we help customer by identifying their various needs and offering plans that are
customized for you. You may also choose a plan by identifying the life stage you are at.
The following needs of a person can be fulfilled by insurance:
Protection
Need for a sound income protection in case of your unfortunate demise.
Investment
Need to ensure long-term real growth of your money.
Saving
Save for the milestones and protect your savings too.
Pension
Need to save for a comfortable life post retirement.

Once customers have analyzed their needs as per above classification, customers need
to then ascertain important factors such as type of cover, insurance amount as per one's
income, life stage and dependents 10

Objectives of Life Insurance

• To spread life insurance and provide life insurance protection to the masses at
reasonable cost.
• To mobilize peoples savings through insurance-linked savings schemes.
• To invest the funds to serve the best interests of both the policy holders and the nation.
• To conduct business with maximum economy, always remembering that the
money belongs to the policy holders.
• To act as trustees of the policy holders and protect their individual and collective
interests.
• To innovate and adapt to meet the changing life insurance needs of the community.

11

• General Insurance
General (non-life) insurance provides a short-term coverage, usually for a period of one year.
General insurers transact fire insurance, motor insurance, marine insurance, and
miscellaneous insurance business. Among these categories fire and motor insurance business
are predominant. Motor vehicle insurance is compulsory in India and the motor insurance
industry.
Moreover, motor insurance due to third party liability claims has substantially contributed to
underwriting losses.

General Insurance Products

Fire Insurance:
Fire Insurance is a comprehensive policy which covers loss on account of fire, earth quake,
riots, floods, strikes, and malicious intent. It can be taken only by the owner of the premises
to be insured.

Motor Insurance: This covers:

In motor insurance, the rates were revised. Upwards twice, once in 1982 and then in1990 as
the high cost of repairs coupled with third party claims had adversely affect the insured loss
ratio. Motor insurance is mandatory leading to good amount of premium collection but it is
not being fancied upon as it could lead to litigation problem.

Marine Cargo Insurance: This covers:

• Cargo in Transit.
• Cargo Declaration policy.
It includes insurance of Marine Hull Insurance Inland Vessels, Ocean going Vessels, fishing
and scaling vessels, freight at risk, construction of ships, voyage insurance of various
vessels, ship breaking insurance, oil and energy in respect of onshore and offshore risks,
including construction risk.
12

• Objective of Insurance Policy

 • Life Insurance policy for the rural areas and the socially and economically backward
classes with a view to reach all insurable persons in the country and providing them
adequate financial cover of reasonable cost.
• Conduct business with utmost economy and with the full realization that the money to
the public.
• Meet the various life insurance need of the community that would arise in the
changing social and economical environment.
• Maximize mobilization of peoples’ saving by making insurance – linked securing
adequately attractive.
• Involve all people working in the corporation to the best of their capability in
furthering the interests of the insurance public by providing efficient service with
courtesy.
• Bear in mind, the investment of funds, the primary obligation to its policy holders,
whose money it holder in trust, without losing sight of the interest of the community
as a whole; the fund is to be deployed to the best advantage of the investors as the
community as whole, keeping in view national as well as the community attractive
return. 13

• Benefits to Insurance Policy Holder

• Tax Benefits:

Relief in income tax is available for amount paid by way of premium for life
insurance.Investment qualifying for rebate viz. insurance premia, premium paid toward
annuity plans for life insurance are specified under section 88(2) of the income tax Act.
• Safety:
In life insurance, on death, the full sum assured is payable (with bonuses wherever
applicable) whereas in other saving scheme, only the amount (saved with interest) is payable.
• Liquidity:
Loans can be raised on sole security of the policy which has acquired a paid-up value.
Besides, a Life Insurance policy is also generally accepted as security for even a commercial
loan/housing loan.
• Aid to Thrift:

Life Insurance encourages ‘thrift’ Long term saving can be made in a relatively painless
manner because of ‘easy instalment facility’ (Premium can be made through monthly,
quarterly, half- yearly or yearly instalment). The Salary Saving Scheme, popularly known as
SSS provide

14

a convenient method if paying premium each month through deduction from one’s
salary. The Salary Saving Scheme can be introduced in an institution of establishment
subject to specified terms and condition.

• Money at the time of Requirements:

A suitable insurance plan or a combination of different plans can be taken to meet specific
needs that are likely to arise in future such as children’s education, start in-life or marriage
provision or even periodical needs for cash ones a predetermined stretch of time.
Alternatively, policy money can be so arranged to be used for other investments subject to
certain conditions, loans are granted to policy holders for house or for purchase of flats.
• Insurance affords peace of mind:
The security is the prime motivating factor. The security ends the tension and finally
leads to peace to mind.
• Insurance Eliminate Dependency
At the death of husband or the father or any lead person, the family would suffer a lot. The
insurance is here to assist then like to provide adequate amount at the time of suffering. The
economic dependency if the family is reduced.
• Insurance encourages savings:
In most of the life policies, element of saving is predominant, this policies combine of
programme of Insurance and saving. Saving with insurance has certain extra advantage.
• Economic Growth of the country:
For the growth of the country insurance provides string hand and mid to protect against loss
of death. From the insurance government get more financial resource and utilize strengthen
the economic condition of the country.

15

• OBJECTIVES OF THE STUDY

Following are the main objectives of the study are

• To know the customers awareness regarding the life insurance.

• To know the customers awareness regarding the various life insurance companies
in the insurance sector.
• To know the customers preference towards the private or public insurance sector.
• To know the different promotion strategy used by companies to aware their customers.
• To evaluate the factors underlying consumer perception towards investment
in life insurance policies.
• To develop and standardize a measure to evaluate investment pattern in life
insurance services.

16
 CHAPTER-2

COMPANY PROFILE

17

Nippon Life was founded as Nippon Life Assurance Co., Inc. in July 1889, and in 1891,
the name was changed to Nippon Life Assurance Co., Ltd. When the Company was
founded, a premium table based on unique Japanese mortality statistics was created. At
the same time, Nippon Life became the first Japanese life insurer to decide to offer profit
dividends to policyholders, which embodied the spirit of mutual aid. And so, after its first
major closing of books in 1898, Nippon Life paid the first policyholder dividends in
Japan.

After World War II, the Company was reborn as Nippon Life Insurance Company in 1947
and continues to work to realize mutual aid and cooperative prosperity as a mutual
company.

Looking ahead, Nippon Life will continue to embody this spirit of mutual aid and, as a
life insurance company, strive to provide customers with enhanced services. Currently,
Nippon Life, as one of Japan's largest private life insurers, has a revenue of US$ 77
billion and profit of US$ 3.1 billion as of March 31, 2021. The Company, with 38 million
policies in Japan (as of March 2022), offers a wide range of products, including individual
and group life and annuity policies through various distribution channels and mainly uses
face-to-face sales channel for its traditional insurance products. The company primarily
operates in Japan, North America, Europe and Asia and is headquartered in Osaka, Japan.
It is ranked 111th among the Global Fortune 500 firms in 2021.

Data Source: Fortune, Global 500 18

Benefits of Reliance Nippon Life Insurance

Reliance Nippon Life offers the following benefits to its customers:

1. Variety of Products: Reliance Life offers a wide range of insurance plans to cater for
the requirements of an individual. Reliance Life offers different insurance plans such as
Term Insurance, Savings and Investment, Health Insurance and Unit-Linked Insurance
plans. Each plan has different features and advantages so the buyer has many options to
choose from that best suits his/her requirements and budget.

2. Award-Winning Services: Reliance Life has recently won ‘Best Claim Service
Provider 2020’ by Annual Insurance Summit and Awards. Reliance Life has won ‘Life
Insurance Company 2019’ by BFSI Awards. Reliance was awarded ‘Innovative Insurance
Provider 2019’ by ET BFSI Excellence Awards. Reliance Life Insurance has also won
‘Best Risk Innovation 2019’ by ERM World Summit for Risk Management.

3. Affordable Premiums: Reliance Nippon Life insurance plans are very budget-friendly.
The premiums of these insurance plans are affordable. Reliance Nippon Life ensures the
policyholder gets comprehensive life cover at affordable rates. This also helps in selecting
life insurance that only fulfils your requirement but also fits in your estimated budget.

4. High Claim Settlement Ratio: Reliance Life Insurance secures an impressively high
claim settlement ratio of 98.12% in the FY 2019-20. The claim settlement ratio of an
insurer signifies the number of insurance claims settled by the insurance company against
the total number of claims in a financial year. It is a great feature of an insurance company
that attracts more customers.
19

5. Availability of Riders: Reliance Life Insurance offers an option to add additional

benefit riders in your insurance plans to enhance the protection from the uncertainty of
life. Riders are the covers that provide some more benefits in a situation of a financial
crisis.

20

Reliance Nippon Life Insurance Company (RNLIC)

Reliance Nippon Life Insurance Company is amongst the leading private sector life
insurance companies in India in terms of individual WRP (weighted received premium)
and new business WRP. The company is one of the largest non-bank supported private life
insurers with over 10 million policyholders*, a strong distribution network of 713
branches and 46,538 advisors as on March 31, 2022. The company holds of 98.7% as on
March 31, 2022.

Rated amongst the Top 3 Most Trusted Life Insurance Service Brands by Brand Equity‘s
Most Trusted Brands Survey 2018, the company’s vision is "To be a company people are
proud of, trust in and grow with; providing financial independence to every life we
touch." With this in mind, Reliance Nippon Life caters to five distinct segments, namely
Protection, Child, Retirement, Saving & Investment, and Health; for individuals as well as
Groups/Corporate entities.

Reliance Nippon Life Insurance Company is a part of , a private sector financial services
and non-banking company. Reliance Capital has interests in stock broking, life & general
insurance, proprietary investments, private equity and other activities in financial services.

*Since inception of which many policies may have matured, lapsed, terminated and
surrendered
21

Reliance Nippon Life Insurance Company is one of the life insurance companies in
India. The firm offers life insurance products targeted at individuals and groups, catering
to four distinct segments: protection, children, retirement and investment plans. Wikipedia
Customer service: 1800 102 1010
CEO: Ashish Vohra (1 Oct 2016–)
Headquarters: Mumbai
Founded: 14 May 2001
Total assets: 15,000 crores INR (US$1.9 billion)
Parent organizations: Nippon Life, Reliance Capital
Subsidiary: Reliance Life Insurance Company Limited, Asset Management Arm
Disclaimer
Profiles

22

CHAPTER No. 3

RESEARCH
METHODOLOGY

23

Chapter No. 3
• Research Methodology

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, in fact research is an art of
scientific investigation. Research Methodology is a scientific way to solve research problem.
It may be understood as a science of studying how research is doing scientifically. In it we
study various steps that are generally adopted by researchers in studying their research
problem. It is necessary for researchers to know not only know research method techniques
but also technology.
The research problem consists of series of closely related activities. At times, the first step
determines the native of the last step to be undertaken. Why a research has been
defined, what data has been collected and what a particular methods have been adopted and a
host of similar other questions are usually answered when we talk of research methodology
concerning a research problem or study.

24

• Research Design

A research design is defined as the specific methods and procedures for acquiring the
information needed. It is a plant or organizing framework for doing the study and collecting
the data. Designing a research plan requires decisions all the data sources, research
approaches, research instruments, sampling plan and contact methods.
Research design is mainly of following types:

• Exploratory research
• Descriptive research
• Casual research

Exploratory Research

The major purposes of exploratory studies are the identification of problems, the more
precise formulation of problems and the formulations of new alternative courses of action.
The design of exploratory studies is characterized by a great amount of flexibility and ad-hoc
veracity.

25
Descriptive Studies

Descriptive research in contrast to exploratory research is marked by the prior formulation of

specific research questions. The investigator already knows a substantial amount about the
research problem. Perhaps as a result of an exploratory study, before the project is initiated.
Descriptive research is also characterized by a preplanned and structured design.
Casual or Experimental Design

A casual design investigates the cause and effect relationships between two or more
variables. The hypothesis is tested and the experiment is done. There are following types of
casual designs:
• After only design
• Before after design
• Before after with control group design
• Four groups, six studies design
• After only with control group design
• Consumer panel design
• Exposit factor design

26

• Data Collection Method

DATA COLLECTION METHOD

PRIMARY SECONDARY

1. Direct personal Interview * PUBLISHED *UNPUBLISHED

2. Indirect personal Interview 1.Govt. publication

 3. Information from correspondents 2. Report committe& commision

4. Mailed questionnaire 3.Private publication

5. Question filled by enumerators 4.Research institute

27

Period of Study: This study has been carried out for a maximum period of 8 weeks.

Area of study: The study is exclusively done in the area of marketing. It is a process
requiring care, sophistication, experience, business judgment, and imagination for which
there can be no mechanical substitutes.

Sampling Design: The random sampling is done because any probability sampling
procedure would require detailed information about the universe, which is not easily
available further, as it is being an exploratory research.

Sample Procedure: In this study “random sampling procedure is used. Random sampling
is preferred because of some limitation and the complexity. Area sampling is used in
combination with random sampling so as to collect the data from different regions of the city.
Sampling Size: The sampling size of the study is 100.
 28
• Method of the Sampling:
Probability Sampling

It is also known as random sampling. Here, every item of the universe has an equal chance or
probability of being chosen for sample.
Probability sampling may be taken inform of:

Simple Random Sampling

A simple random sample gives each member of the population an equal chance of being
chosen. It is not a haphazard sample as some people think. One way of achieving a simple
random sample is to number each element in the sampling frame (e.g. give everyone on the
Electoral register a number) and then use random numbers to select the required sample.

Random numbers can be obtained using your calculator, a spreadsheet, and printed tables of
random numbers, or by the more traditional methods of drawing slips of paper from a hat,
tossing coins or rolling dice.

29

Systematic Random Sampling

This is random sampling with a system from the sampling frame, a starting point is chosen at
random, and thereafter at regular intervals.
Stratified Random Sampling

With stratified random sampling, the population is first divided into a number of parts or
'strata' according to some characteristic, chosen to be related to the major variables being
studied. For this survey, the variable of interest is the citizen's attitude to the redevelopment
scheme, and the stratification factor will be the values of the respondents' homes. This factor
was chosen because it seems reasonable to suppose that it will be related to people's attitudes
Cluster and Area Sampling

Cluster sampling is a sampling technique used when "natural" groupings are evident in a
statistical population. It is often used in marketing research. In this technique, the total
population is divided into these groups (or clusters) and a sample of the groups is selected.

Then the required information is collected from the elements within each selected group.
This may be done for every element in these groups or a subsample of elements may be
selected within each of these groups.

30

Non Probability Sampling

It is also known as deliberate or purposive or judgemental sampling. In this type of sampling,

every item in the universe does not have an equal, chance of being included in a sample.
It is of following type:

Convenience Sampling

A convenience sample chooses the individuals on the basis of easiness to reach or

convenience. Convenience sampling does not represent the entire population so it is
considered bias.
Quota Sampling

In quota sampling the selection of the sample is made by the interviewer, who has been given
quotas to fill form from specified sub-groups of the population.

31
Judgment Sampling

The sampling technique used here in probability > Random Sampling.

• Data Collection

Data is collected from various customers through personal interaction. Specific

questionnaires are prepared for collecting data. Data is collected with mere interaction and
formal discussion with different respondents and face to face contact with the persons from
whom the information is to be obtained (known as informants). I ask them questions
pertaining to the survey and collect the desired information. I contact the workers of Reliance
Life Insurance Company Ltd. to obtain some of the information. The information obtained is
first hand and original in character.

32

CHAPTER- 4
 DATA
ANALYSIS

33

• Data Analysis

• Awareness of life insurance in consumer.

Fig.1

Table no. 1

No. of respondents Percentage of respondents

 Yes 100 100%
No 0 0%

Interpretation 1:
According to the data maximum no. of people are aware with life insurance policy (here
100% people are aware with it). Today Indians are aware with this investment because it
covers risk of the life as well as gives better return on maturity.

• What is your purpose for buying an insurance policy?

Table no. 2

No. of respondents Percentage of respondents

For old age saving 51 51%

Family needs 14 14%

Time to time needs 21 21%

Opposite circumstances 14 14%

34

Fig. 2

Interpretation 2:
Most of the people buy insurance policy for their old age saving because they want to save
money or back up for old age and only 21% people buy insurance for time to time needs.

• How much money you want to invest in insurance?

Fig. 3

35

Table no. 3:

Premium amount No. of respondents

Rs. 10,000 to 15,000 15
Rs. 15,001 to 20,000 29
Rs. 20,001 to 25,000 31
Rs. 25,001 to 30,000 21
Rs. 30,001 to 35,000 4

Interpretation 3:

Mostly people invest in insurance on the basis of their saving and according to their saving
they purchase insurance policies. Here most of the people invest 20001 Rs. to 25000 Rs. and
very less number of people invest huge amount in insurance.

• When you are buying an insurance policy, your decision is influenced

by?

Fig. 4
Table no. 4

No. of respondents
 Family 37
Friends 30
Professional and trade union group 15
Brand and advertisement 18

36

Interpretation 4:
Insurance is now basic investment for consumers. But this is tradition of India that we do not
believe on unknown people so when any one buy insurance policy then his or her decision is
depend on family, friends and on other factors. In the study i found that 37% of respondents
believe on their family to buy insurance policy but only 18% respondent’s decision depend
on brand and advertisement of the company. So, a/c to study, we see that family and friends
play a big role to buy an insurance policy.

• In which company you believe most?

Fig.5

Table no. 5

Company No. of respondents

Private company 38
Public company 62

Interpretation 5:
Most of the people want to invest their money in public insurance company. In private
insurance company only 38 respondents want to invest their money. Most of the people buy
insurance from LIC and there are more than 20 private insurance companies in India.

37

• How do you want to pay your premium?

Fig. 6

Table no. 6

Mode No. of respondents

Cash 35
Cheque & Credit card 39
Demand draft 26

Interpretation 6:
Most of the respondents (i.e. 39) pay their premium through cheque & credit card because of
easiness and convenience. 35 respondents pay their premium through cash and 26 of them
pay their premium through demand draft.

• In what mode you want to give premium?

Table no. 7

Mode No. of respondents Percentage of respondents

Monthly 26 26%
Half-yearly 39 39%
Yearly 35 35%
 38

Fig.7

Interpretation 7:

Insurance companies give a lot of facility to their loyal customers for payment of premium.
Costumer also pays the premium in three modes monthly, half yearly and yearly. Here 39 %
respondents pay in half yearly mode and 35% respondents pay yearly mode premium.

• Do you want which type of insurance plan?

Table no. 8

Plans No. of respondents

ULIP 21

Traditional plans 40

Health plans 23

Term plans 16
 39

Fig. 8

Interpretation 8:
Most of respondents want mostly traditional plan. 40% respondents use traditional plan and
21% respondents want to buy ULIP Plan. People show their interest towards ULIP’s
because it provides both risk coverage for life and investment opportunity in securities.

• Are you satisfied with the return on investment which you getting
from policy?

Fig. 9

40

Satisfaction level No. of respondents Percentage of respondents

Very Satisfied 21 21%
Satisfied 60 60%
Can’t say 4 4%
Not much satisfied 4 4%
Dissatisfied 11 11%

Interpretation 9:
A/c to data, 60% of respondent are satisfied with the return. About 21% are very satisfied on
their investment’s return and 11% are dissatisfied with return on investment.
• If you are not taking any insurance policy then please tell us the
reason, why?

Fig. 11

41

Table no. 10

Reasons No. of respondents

We could not afford. 26
We don’t see any benefit .with it. 24
We don’t want insurance. 15
I don’t understand that how it works? 35

Interpretation 10:

As the evident shows that as most as 35 of the total respondents don’t understand the
working of the insurance system and nearly 24 of the respondents don’t see any benefit with
the system, 15 and 26 of the respondents don’t want insurance and could not afford
respectively.
 42

CHAPTER No. 5
FINDINGS AND
CONCLUSIONS

43
• Findings

• Now life insurance has become generic. People believe in Life Insurance Company
only and therefore, everybody wants to go in for a policy with LIC. It will take time
to private companies to win the confidence of the people.
• As far as future decision making about the policy is concerned most of the policy
would go in for saving plan.
• People are turning towards the ULIP as a good investment option but ULIP is in its
starting phase so customers prefer only big brands LIC, RLIC etc.
• LIC is the oldest player in the Insurance market, so people are more aware of i.e., as
compared to new players.
• This clearly comes out from the survey conducted that most of the people come to
know about Reliance life Insurance company through print media.
• It has clearly come out that most of the people like to go in for a policy, which gives
them tax benefit.
• A/c to survey it is cleared that most of the people don’t take insurance policy because
they don’t understand that how insurance policy works?
• Most of People influenced by family and friends when they are buying insurance
policies.

• Results

Reliance Life insurance is one of the largest private life insurance company and it has
awakened many new hopes and aspiration for human kind, just based on a noble human
passion of law, compassion tolerance and mutual understanding.

Globalization has opened new formalities of technology, knowledge, communication and

information. Reliance Life insurance is a gift of globalization to maintain development of
these formalities there before is a daunting challenge i.e. the utilization of these facilities to
create a brave new worlds in which a qualitative and a clear change between yesterdays and
hormones can easily perceived.
I have done a detailed the comparative study of Reliance Life insurance with other life
insurance companies and concluded that most of the people preferred to deal with
nationalized insurance companies.

44

People used to buy Insurance for tax exemption but time has changed now, advertising has
made the people understand the need of Life Insurance in their lives and people are taking
initiatives to buy it. Urge of people to have Insurance and strong marketing can really make
the industry reach the sky.

Reliance Life insurance has set all the strategies and mission after proper vision and is
achieving the largest by working in co-operative and co-ordinate manner and giving the
people full services and facilities and making easy. So I would like to conducted by saying
that Reliance Life insurance is a wonderful gift given to the mankind in the new are for
people development and maintenance of the world as well as India.

45
 CHAPTER No.6

RECOMMENDATIONS/ SUGGESTIONS

46

• RECOMMENDATIONS
Followings are the recommendations and the suggestions not only for the Reliance life
insurance company but also for other private life insurance companies if they want to
complete with public/government life insurance companies.

• Creating positive image:

Private companies should try their level best to create positive and favourable image in
the minds of people i.e. in the minds of their target customers.
• Training and development to agents:
Company must provide training to their agents and financial so that they can satisfy
customer and doubts effectively.
• Concern towards customers:
Serious concern must be given to the customers as in today’s scenario it regarded as
“Customer is a king”. In formal words we can say that if can customers more loyal
towards the company.
• Co-operation with agents and branch managers:
The Company must full co-operate with branch managers and agents.
• Availability of branch offices:
There must be the branch offices in each 20-30 Km. diameter.
• Efficient management:
The management appointed must be that much capable that it can control the whole team
and improve the goodwill and image of the company.
• Sales promotion and marketing:
The marketing department must be so aggressive that it can have a close watch
on the competitors’ activities. Not only this but also it must take care of the need and
wants of the customers also.
• Incentive schemes and permanency in job:
There must be good incentive schemes to be designed as these can acts as good
motivators for the agents. The scheme of permanent job placement must be introduce for
those agents who have shown extra ordinary performance.

47
• Solution of Grievances:
There must regular meetings with the financial consultants and agents to motivate them
and to solve grievances if there are any.

48

CHAPTER No.7
 LIMITATIONS

49

6.1 Limitations
Although every effort has been in to collect the relevant information through the sources
available, still some relevant information could not be gathered.

Busy Schedule of Concerned Executives:

The concerned executives were having very busy schedule because of which they were
reluctant to give appointment.

Time:
The time duration could not provide ample opportunity to study every detail of the company.

Unawareness:
Customers were unaware of many terms related to same while asking to them.

Confidential Information:
As the company on account of confidential report has not disclosed some figures.
Moreover, in some cases separate accounts of division are not separately maintained
thereby, leading to restrictions in study.

Area:
Area of study chosen was not large.

50

BIBLIOGRAPHY

51

Books Referred
• Marketing Management by Philip Kotler
• Business Research by N.K. Malhotra

Internet Resources
• Search Sites www.google.co.in HYPERLINK
"http://www.google.co.in/" , www.msn.com

• Websites of the organization www.reliancelife.com

• Other sites www.bimaonline.com,

www.irdaindia.gov HYPERLINK

"http://www.irdaindia.gov/" ,

www.yahooanswer.com,

www.wikipedia.com

Company Resources
• Product Brochures
• Inputs from company personnel’s.

52
 ANNEXURES

53

QUESTIONNAIRES

Declaration: It is purely for academic purposes and the data given will not be passed to

anyone. Please tick (√) out for appropriate option.

• Personal Information:
....................................................................................................................................................................

a. Name: ...................................................................................
• Gender: a) Male b) Female
• Age (in years) a) Below 18 b)18-35
• 35-50 d) Above 50
d. Educational qualification: .......................................................
e. Occupation: .............................................................................
f. Annual Income: a) Less than Rs. 1,00,000

b) Rs. 1, 00,001 to Rs. 3, 00,000

 c) Rs 3, 00,001 to Rs. 5, 00,000

• Rs. 5, 00,001 and Above

54

• Questions:
....................................................................................................................................................................

• Do you aware with Life Insurance?

• Yes b) No

• Are you interested in investing your money?

• Yes b) No

• Where do you want to invest your money?

• Shares b) Mutual funds

c) Insurance d) Fixed Deposits

• What is the purpose for buying insurance Policy?

• For old age saving b) Family needs

c) Time to time needs d) Opposite circumstances

55
• When you are buying an insurance policy then your decision influenced by?

• Family b) Friends

c) Professional & Union groups d) Brand & Advertisement

• What is your saving as percentage (%) of annual income?

a) 10 to 20 b) 21 to 30

c) 31 to 40 d) 41 to 50

• How much money do you want to invest in insurance plans?

a) Rs. 10,000 to Rs. 15,000 b) Rs. 15,001 to Rs. 20,000

c) Rs. 20,000 to Rs. 25,000 d) Rs. 25,001 t0 Rs. 30,000

e) Rs. 30,001 to Rs. 35,000

• On which company do you believe most?

• Private insurance company

• Public insurance company

• How do you want to pay your premium?

• Cash

• Cheque & Credit card

• Demand draft

• Do you think that insurance policy is necessity of today’s life?

• Yes b) No

• In what interval do you want to give your premium?

• Monthly
 • Half yearly

• Yearly

56

• Do you want which type of insurance

policy?

• ULIP (Unit Linked Insurance Plan)

• Traditional

• Health

• Term Plan

• Are you satisfied with the return on investment which you getting from policy?

• Very Satisfied

• Satisfied

• Can’t say

• Not much Satisfied

• Dissatisfied

• If you are not taking any insurance policy then please tell us the reason, why?

• I could not afford.

• I don’t see any benefit with it.

• I don’t want insurance.

• I don’t understand that how it works?

57