SUMMER TRAINING PROJECT REPORT

On
A STUDY OF CONSUMER PERCEPTION AND
AWARNESS ABOUT RELIANCE LIFE
INSURANCE IN HALDWANI REGION

Submitted to:

Submitted by:

Mr. Shatyam Shrivastav

Yogendra Singh
MBA(3rd sem)

Faculty of Commerce &Bussiness Management

Roll No. : 150020500062

DECLARATION
I am very well aware of the ethics and guidelines one has to follow while working
on a project in a disciplined manner.
Being aware of a project regarding its Factuality and Authenticity, I have tried my
best to perform my task.
All the information mentioned here throughout the project is true to the best of my
knowledge.
And I declare it as true and the collection made through own website and by my
own personal observation and experience.
The theoretical part is gathered from various sales & marketing reference books
whose quotations have been mentioned in bibliography.

PREFACE

I am very grateful to our faculty for appreciating and patronizing this project on A
Study Of Consumer Perception & Awarness About Reliance Life Insurance In
Haldwani Region. The students seeking MBA 3rd sem a degree have shown a
great confidence on this project because of its quality content, simple and easily
understandable style of presentation.

In this project I give the main focus on Sales & Marketing on Reliance Life
Insurance. The coverage of the project has been designed in a manner for getting
knowledge about presenting the project.

A project is involving a lot of extensive study and research give me a great deal of
exposure. I hope this project would prove useful to its reader if it deserves.

I express gratitude to our faculty and classmates for their valuable suggestions; I
am also thanks to our family members for their keen interest in this project.

(YOGENDRA SINGH)

ACKNOWLEDGEMENT
The satiation and euphoria that accompany the successful completion of the project would be
incomplete without the mention of the people who made it possible. I would like to take the
opportunity to thank and express my deep sense of gratitude to my corporate mentor Ms. Shivi
Yadav (Master Trainer) and my faculty mentor Lecturer Mr. Shatyam Shrivastav. I am
greatly indebted to both of them for providing their valuable guidance at all stages of the study,
their advice, constructive suggestions, positive and supportive attitude and continuous
encouragement, without which it would have not been possible to complete the project.
I would also like to thank Mr. Praveen Singh Gussain (Branch Manager ) who inspite of busy
schedule has co-operated with me continuously and indeed, his valuable contribution and
guidance have been certainly indispensable for my project work
I am thankful to Mr. Kuldeep Singh (Sales Manager) for giving me the opportunity to work
with Reliance Reliance life insurance and learn. I owe my whole hearted thanks and
appreciation to the entire staff of the company for their cooperation and assistance during the
course of my project. I also thank to my parents, my friends, and my god who always encourage
me. I hope that I can build upon the experience and knowledge that I have gained and make a
valuable contribution towards this industry in coming future.
Mentors Sign.

Students Sign.

..

CONTENT

CHAPTER 1
INTRODUCTION
LITERATURE REVIEW
RESEARCH OBJECTIVE
RESEARCH METHODOLOGY
SOURCE OF DATA
LIMITATION OF PROJECT

CHAPTER 2
INDUSTRY PROFILE
COMPANY PROFILE

CHAPTER 3
6

 DATA ANALYSIS AND INTERPRETATION

CHAPTER 4
FINDINGS
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE

CHAPTER 1

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 there
buying decisions. They believe in future rather than the present and desire to have a better and
8

secured future, in this direction reliance life insurance services have its own value in terms of
minimizing risk and uncertainties, Indian economy 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 behavior of consumers
towards reliance life insurance services.Reliance 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
an 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.
A study of consumer decision making factors is required in order to understand their priorities
which can be worked upon. For this purpose a research is to undertaken to find out the market
scenario. With the help of the responses given by the consumers and data analysis, the company
will be able to understand its strengths, weakness , opportunities and threats. The survey report
submitted will assist the company to take right decisions to increase the turnover and market
share.

LITERATURE REVIEW
COMSUMER BEHAVIOUR:
9

The consumer behaviour, in general, is prompt by number of factors viz. Psycho

graphical, Economical, Social, Politico legal and Demographical. The list is not
exhaustive but it is sufficient to have the deep understanding of the factors influencing
the decision.
Psycho graphical factors are those factors that include the behavioral aspect of the
individual viz. lifestyle, living standard. Here purchase decision in influenced by
those issues that affect the lifestyle of the consumer or in the other that reflects the
status. For e.g.: purchase decision related to buying of car and that to Mercedes Benz.
Talking specifically to the insurance sector, here customer will buy only that policy
that has got high premium or that type of policy which company is promoting to
limited high-income level group only. e.g. "Classic Life premier" policy of Birla Sun
life insurance is meant for only those individual, who can pay at least Rs. 25000/- per
annum.
Economical factors affect the purchase decision by influencing the issues pertaining
to money and income level of the individual. Consumers buy only that product which
will not have any negative effect on his pocket e.g. decision to buy an insurance
policy is influenced by the deepness in the pocket.
Social factor affects the purchase decision by influencing the issues pertaining to
social beliefs and morals.
Politico legal is the macro level environment. It effects in a way, say IRDA has
restricted the sale of Key Man Insurance policy through Term Plan only.
Demographical factor is that factor which has got the maximum of its effect in the
purchase decision of the product and especially if that product is life insurance
product. It is so because these factors incorporate other above said factors and
includes those factors that can influence the buying decision to maximum extent viz.
Occupational factor (service/business), Age factor, Gender, Marital status factor and
Income level etc. It cannot be denied that buying decision of the individual who is
unmarried and is into business, having the income level of the range Rs. 2.4 lakh per
annum, is into the age group of say 25 years will have the entirely different approach
towards purchase of the life insurance policy with the individual who is into service
and is married, is into the age group of, say 35, and is earning Rs. 30000/- per month.

Consumer Behavior towards Reliance Life Insurance in the State of

Uttarakhand(Haldwani Region)
To investigate the consumer behavior towards Reliance Life Insurance in Haldwani around 300
people were contacted to collect primary data.However, 100 respondents gave the information as
per our requirement.On the basis of the collected data and to achieve the objective following
hypotheseswere tested applying chi-square test:
1. The type of life insurance plan purchased is not effected by the education
level/ income level/family size.
2. The percentage of income spent on life insurance is not effected by the
10

education level/ family size.

3. The person for which the life insurance policy is purchased is not effected by
the education level/ income level/family size.
4. The person whose recommendations affect the consumer is not effected by the
education level/ income level.
5. The premium payment plan is not effected by the education level/ income
Level.
6. The purpose to purchase life insurance policy is not effected by the income
Level.
7. The interest to know facts about the insurance policy is not effected by the
education level/ income level.
8. The having of insurance policy either of private or public company is not
effected by the education level/ income level.
On rejection of a particular hypothesis i.e. on finding the dependence between the two
factors (for example education and type of plan) the test has been applied to see
whether there is any significant difference for opting the public and private sector
with regard to each category coming under a factor (for example this has been seen in case of the
categories below graduate, graduate and post graduate coming under the
factor education).

Consumer Decision Making Process:

Customer satisfaction is the perception of customers on the service whether that service has met
his needs and expectations. The quality of service, personal demographic and psychological
factors, perception of equity and fairness, price, product quality, situational factors, and
attributions for service success or failure are the factors that influence the customer satisfaction.
This research paper will determine the attributes which influence consumer decision making
process while opting for any tax saving instrument or financial instruments like life insurance
depending upon its flexibility, reliability of brand, liquidity and many other features. The
descriptive survey with the research articles it brings to the fore that the Life insurance has been
preferred as depending on the services offered by the insurance companies like number of
product, knowledge of customer (via KYC), timely issuance of policies and after-sales services
before and after claim. By understanding financial services customer can improve business for
companies on the basis of better service received. The insurance firms strive to identify customer
requirements and develop strategies that allow them to meet or beat the service level provided by
their competitors.
11

A Consumer behavior has been defined as a process a consumer uses to make purchase
decisions as well as to use and dispose of purchased goods or services, also includes factors that
influence purchase decisions and product use.
Life of social human being is full of risk, responsibilities, and uncertainties; and life insurance
substitutes the uncertainty by certainty. Insurance sector plays a very important role in the
development of any economy also, as it provides long term funds for infrastructure development
and at the same time strengthens the risk taking ability. 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.

RESEARCH OBJECTIVE

Following are the main objectives of the study

a)
b)
c)
d)

To know the customers awareness regarding the life insurance.

To know the customers preference towards the private or public insurance sector.
To know the different promotion strategy used by companies to aware their customer.
To evaluate the factors underlying consumer perception towards investment in life
insurance policies.

12

RESEARCH METHODOLOGY

RESEARCH DESIGN
In this research design I was used exploratory method.

SAMPLING PLAN
In a sampling plan we have used systematic sampling.

Sampling Unit :
Probable prospects for life insurance

Sample Size:
100 persons form the whole Haldwani.

In the project, the samples are being surveyed in a sequential manner from
kushumkheda.

SOURCE OF DATA COLLECTION

PRIMARY DATA- With the help of questionnaire filled during field visit
SECONDRY DATA- With the help of company reports pamphlets, catalog
13

brucers.

LIMITATION OF PROJECT STUDY

This survey was conducted partially in Haldwani, So an overview of Reliance couldnt

be determined.
Some respondent were not ready to gives their feedbacks.
The sample size was not enough and it failed to give the clear picture or the results of the
survey.(Sample size =100 where respondents are masons, architects, general customers
and retailer/wholesaler.)
Useful Financial insights are not easily available.
Due to time constraint sufficient research on all the investment tools is difficult.

The survey sample is not very large for analysis

Properly convincing people to invest in insurance products is challenging.

There might have been tendencies among the respondents to amplify or filter their
responses under the testing conditions

14

CHAPTER-2

INDUSTRY PROFILE

Insurance is an upcoming sector, in India the year 2000 was a landmark year for life insurance
industry, in this year the life insurance industry was liberalized after more than fifty years.
Insurance sector was once a monopoly, with LIC as the only company, a public sector enterprise.
But nowadays the market opened up and there are many private players competing in the
market. There are fifteen private life insurance companies has entered the industry. After
the entry of these private players, the market share of LIC has been considerably reduced. In the
15

last five years the private players is able to expand the market (growing at 30% per annum) and
also has improved their market share to 18%. For the past five years private players have
launched many innovations in the industry in terms of products, market channels
and advertisement of products, agent training and customer services etc.The various life insurers
entered India: Bajaj Allianz Life Insurance Company Limited
Birla Sun Life Insurance Co. Ltd
HDFC Standard life Insurance Co. Ltd
ICICI Prudential Life Insurance Co. Ltd.
ING Vysya Life Insurance Company Ltd.
Max New York Life Insurance Co. Ltd
Met Life India Insurance Company Ltd.
Kotak Mahindra Old Mutual Life Insurance Limited
SBI Life Insurance Co. Ltd
Tata AIG Life Insurance Company Limited
Reliance Life Insurance Company Limited.
Aviva Life Insurance Co. India Pvt. Ltd.
Sahara India Life Insurance Co, Ltd.
Shriram Life Insurance Co, Ltd.
Bharti AXA Life Insurance Company Ltd.
Future General Life Insurance Company Ltd.
IDBI Fortis Life Insurance Company Ltd.
Canera HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
AEGON Religare Life Insurance Company Limited.
DLF Pramerica Life Insurance Co. Ltd.
16

 Star Union Dai-ichi Life Insurance Comp. Ltd.

The various other general Insurance Companies are as under: National Insurance Company Limited.
Reliance General Insurance.
Star Health Plus Insurance.
Oriental Insurance Company.
United India Insurance Company Ltd.
Bajaj Allianz General Insurance Company Ltd.
Future General Insurance Company Ltd.
ICICI Lombard General Insurance Ltd.

TOP 5 LIFE INSURANCE COMPANIES IN INDIA

Life Insurance Corporation of India

LIC (Life Insurance Corporation of India) still remains the largest life insurance company
accounting for 64% market share. Its share, however, has dropped from 74% a year before
,mainly owing to entry of private players with innovative products and better sales force.

ICICI Prudential Life Insurance Company Ltd.

17

ICICI Prudential Life Insurance Co Ltd is the biggest private life insurance company in India. It
experienced growth of 58% in new business premium, accounting for increase in market share
to8.93% in 2007-08 from 6.97% in 2006-07.

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market share went upto
6.98% in 2007-08 form 5.66% in 2006-07. The company ranked second (after LIC) in numberof
policies sold in 2007-08, with total market share of 7.36%.

SBI Life Insurance Company Ltd.

SBI Life Insurance Co Ltd in terms of new number of policies sold, the company ranked 6th
in2007-08. New premium collection for the company was Rs 4,792.66 crore in 2007-08,
anincrease of 87% over last year.

Reliance Life Insurance Company Ltd.

Reliance Life Insurance Co Ltd Total collected was Rs 2,792.76 crore and its market share
wentup to 2.96% from 1.23% a year back. It now ranks 5th in new business premium and 4th
innumber of new policies sold in 2007-08.

18

S. NO.
1.
2.
3.
4.
5.
6.

Name Of Company
L.I.C.
ICICI Prudential
Bajaj Allianz
SBI Life
HDFC Standard
Birla sun life
19

Market Share
48.10%
13.70%
10.30%
6.20%
4.10%
3.40%

7.
8.
9.
10.
11.
12.
13.
14.

Reliance life insurance

Max Newyork
Om kotak
AVIVA
TATA AIG
MetLife
ING Vysya
Shriram Life

3.40%
2.40%
1.90%
1.80%
1.50%
1.40%
1.20%
0.30%

Table 1

BOOMING INSURANCE MARKET

With a huge population base and large untapped market, insurance industry is a big opportunity
area in India for national as well as foreign investors. India is the fifth largest life insurance
market in the emerging insurance economies globally and is growing at 32-34% annually. This
impressive growth in the market has been driven by liberalization, with new players
significantly enhancing product awareness and promoting consumer education and information.
The strong growth potential of the country has also made international players to look at the
Indian insurance market.
Moreover, saturation of insurance markets in many developed economies has made the Indian
market more attractive for international insurance players. This research report will help the
client to analyze the leading-edge opportunities critical to the success of insurance industry in
India. Based on this analysis, the report gives a future forecast of the market that is intended as a
rough guide to the direction in which the market is likely to move. Total life insurance premium
in India is projected to grow Rs 1,230,000 Crore by 2010-11.
Total non-life insurance premium is expected to increase at a CAGR of 25% for the
period spanning from 2008-09 to 2010-11.
With the entry of several low-cost airlines, along with fleet expansion by existing ones
and increasing corporate aircraft ownership, the Indian aviation insurance market is all
set to boom in a big way in coming years.
Home insurance segment is set to achieve a 100% growth as financial institutions have
made home insurance obligatory for housing loan approvals
20

 A booming life insurance market has propelled the Indian life insurance agents into
thetop 10 country list in terms of membership to the Million Dollar Round Table
(MDRT) an exclusive club for the highest performing life insurance agent.

Types of insurance products

Term assurance plan-

In insurance language this is a pure risk cover and can be described as an insurance or risk
management product in its purest and simplest form. In case of your untimely death, your
dependents will receive the risk-cover amount or the sum assured. On the other hand, there is
no survival benefits if you survive the policy term, and you also do not get back the premiums
paid.

21

Endowment assurance plans-

It is a traditional investment-cum-insurance plan. In other words, it provides both life

cover (in the event of death of life insured) or maturity benefits if he/she survives the
policy term. Endowment plans are typically front-loaded. Therefore it makes sense for you to
remain in the policy for at least 12-15 years.

22

Money-back policy-

It is a variant of the endowment assurance policy-the difference is that you get the
survival benefits intermittently over the life of the policy. Thus taking care of his lump-sum
monetary requirements to enable him to meet his financial goals and major commitments. The
maturity benefit is the sum assured value less the survival benefits already paid under the policy,
plus bonuses accrued, if any. In case of untimely death the nominee will receive the
entire sum assured without considering the payouts already made to you before the
unfortunate death.

Whole life plan-

This policy provides the life assurance cover for almost the entire life. Most of the insurance
companies provide protection up to the age of 100 years. The sum assured is paid to you once
you reach this age, and the policy is terminated. In this payment of premium is for whole life,
and the sum assured is paid to your nominee in the event of your death. In other words, this is
equivalent to a term plan over your lifetime.

23

Pension plan-

A pension plan can be looked as more of an investment product offered by insurers to cater
to the golden retirement years of an individual. Also referred to as retirement plans,
these are designed to ensure that you are financially independent during your retirement years.
Most of the pension plans also provide an optional life assurance cover in them.

24

Child plan-

It basically aims at ensuring the achievement of life goals of your child. The goal can be
higher education, financial help in establishing a business or profession, or even
marriage. In a child plan, the life assured can be the parent or the child. The beneficiary for the
policy, however, is the child. As a child is a minor, the life insurance contract is between the
parent and the insurance company. In case of early death of the parent, the premium payment is
waived off by the insurance company and the policy continues as originally planned.

25

Unit Linked Insurance Plan (ULIP)-

ULIPs have been the darling of insurance companies, intermediaries and the insured
population alike over the last five years. The main reason for this popularity is the twin
advantage of a pure life cover (insurance component) and a range of investment funds or options
(savings component) to match your risk profile. While the pure life cover provides the much
needed financial security to your dependents in the event of your untimely death, the savings
component allows you to participate in the capital markets and build wealth over the long-term
tenure of the policy.

COMPANY PROFILE

Reliance Life Insurance Company Limited is a part of Reliance capital Ltd. Of the RelianceAnil Dhirubhai Ambani Group. Reliance capital is one of Indias leading private sector financial
services companies, and ranks among the top three private sector financial services and banking
companies, in terms of net worth. Reliance capital has interest in asset management and mutual
funds, life and general insurance, proprietary investment, private equity and other activities in
financial services.
Reliance Capital Ltd. (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
26

and aims to become a dominant player in the 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.

Goals:Reliance Life Insurance would strive heart to achieve the three 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.

27

CHAPTER - 3

28

DATA ANALYSIS

Data analysis
The research would be conducted from the source of primary data collection. Secondary data
would help us in knowing the trends prevailing in the insurance market and would help us in
analyzing and interpretation of the primary data.

Q1: Are you aware with Life Insurance ?

No. of
respondent
85
15

Yes
NO
fig. 1

29

Respondent

Interpretation 1:
From the survey it was found out that 85% of the respondents had a life insurance policy
whereas 15% of the respondents didnt had a life insurance policy.

Q 2: In which company you believe most ?

Name of companies

No. of respondent

Private companies

35

Public companies

65

30

No. of respondent

Private compnies
Public companies

fig 2
Interpretation 2:
Most of the people want to invest his money in public insurance company and in private
insurance company only 22 respondent want to invest their money. Most of the people buy
insurance from LIC and there are 24 private insurance company in India.

Q 3: In which insurance policy taken most?

The question was asked to the respondents so as to get to know from which insurance company
they have bought the policy.
Name of companies

No. of respondent

L.I.C

30

I.C.I.C.I Prudential

25

Reliance Life Insurance

31

20

Bajaj Alliance

15

Bharti AXA Life Insurance

10

No. of respondent
L.I.C

I.C.I.C.I Prudential

Reliance Life Insurance

10%
30%

15%

Bajaj Alliance

Bharti AXA Life Insurance

20%
25%

Fig3

Interpretation 3:
The finding which came out from the survey was that 40% of the respondents who have a life
insurance cover bought life insurance from Life Insurance Corporation of India (LIC). LIC is the
most preferred brand in the insurance industry because it is the only government company which
offers insurance. People prefer to buy insurance from LIC because of the security being one of
the prime factors. In the figure we can also see that nowadays people mindset have changed
towards insurance
.

Q 4: F ro m w h o s e s u g g e s t i on h a v e t h e res p o n d e nt t a ke n p o l i cy ?
32

It was asked to gain an insight from the respondents that on whose suggestion did they opt for a
life insurance cover or policy.
No. of respondent
Family

30

Friends

25

Agents

23

Others

12

No. of respondent

Family
Friends
Agents
Others

Fig.4

Interpretation 4:
After the survey it was found that most of the respondents took policy or life insurance cover
from the suggestions of their friends or family. And only 23 respondents took policy
on the recommendation of the agents.
33

Q 5: Which type of plans are used?

The respondents were asked which type of plan they go in for when they take up
insurance cover or policy.
Type of plans

No. of respondent

Term plan

30

Endowment Plan

25

Money Back plan

15

Pension plan

10

ULIP

15

Health plan

No. of respodent
Term plan
Endowment Plan
Money Back plan
Pension plan
ULIP
Health plan

Fig.5

Interpretation 5:
After the survey it was found that term plan was the most preferred plan . Next on the list was
endowment plan. Pension plan and health plan are the least preferred by customers.

34

Q 6: Preference of insurance sector according to age group beyond 40:Name of Company

No. of Respondent

L.I.C

40

I.C.I.C.I

25

Reliance Life Insurance

15

Bajaj Alliance

12

Bharti AXA Life Insurance

08

No. of Respodent

L.I.C
I.C.I.C.I
Reliance Life Insurance
Bajaj Alliance
Bharti AXA Life Insurance

Fig 6

35

Interpretation 6:
Most of the people want to invest his money in public insurance company and in private
insurance company only 7 to 8 respondent want to invest their money. Most of the people buy
insurance from LIC and there are 24 private insurance company in India.

Q 7: Which preference of insurance sector used according to age

group between 25 40?
Name of Company

No. of Respondent

L.I.C

35

I.C.I.C.I

29

Reliance Life Insurance

16

Bajaj Alliance

12

Bharti AXA Life Insurance

No. of Respodent
L.I.C
I.C.I.C.I
Reliance Life Insurance
Bajaj Alliance
Bharti AXA Life Insurance

Fig. 7
Interpretation 7:
36

If we see the younger who doing job or business or making planning for his future then they are
go with L.I.C .

Q 8: In which company you believe most?

Name of Company
L.I.C

50

I.C.I.C.I

22

Reliance Life Insurance

15

Bajaj Alliance

Bharti AXA Life Insurance

37

fig. 8

Chart Title
Name of Company
Reliance Life Insurance

L.I.C
Bajaj Alliance

8%

I.C.I.C.I
Bharti AXA Life Insurance

5%

15%
50%
22%

Interpretation 8:
Here we see that LIC have more number of market share. People believe more in LIC because
this is public sector insurance company. LIC have 50% market share in insurance industry but
other like private sector insurance companies have less number of market share comparision than
LIC. People who buy policy from TATA AIG that people give highest rank to their insurance
company. Reliance have 10% share of their rank.

Q9: How much money you want to invest in insurance?

Premium amount
10000 to 15000
15001 to 20000

No. of respondents
15
29
38

20001 to 25000
25001 to 30000
30001 to 35000

31
21
4

Interpretation:
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.

Sales

10000 to 15000
15001 to 20000
20001 to 25000
25001 to 30000
30001 to 35000

Q10: How do you want to pay your premium?

Mode

No of respondents
39

Cash

35

Cheque & credit card

39

Demand draft

26

Interpretation:
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.

Sales

cash
cheque & credit card
demand draft

40

CHAPTER - 4

41

FINDINGS
1. Now life insurance 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.
2. As far as future decision making about the policy is concerned most of the policy would
go in for saving plan.
3. LIC is the oldest player in the insurance market, so people are more aware of i.e., as
compared to new players.
4. This clearly comes out form the survey conducted that most of the people come to know
about Reliance Life Insurance company through print media.
5. It has clearly come out that most of the people like to go in for a policy, which gives them
tax benefit.
6. A/c to survey it is clear that most of the people dont take insurance policy because they
dont understand that how insurance policy works?

42

SUGGESTIONS
People are not aware of the life insurance. Most of them know only one company which
provides life insurance i.e. LIC. So awareness campaign should be run so that people are
aware of different life insurance companies in India.
People should be educated about the different types of products or plans offered by the
life insurance companies. Most of them dont know much of the different types of plan or
products.
It was felt that most of the people took life for tax savings or just to cover up their life,
not as an investment avenue.
Life Insurance companies need to advertise in such a manner that people start investing in
life insurance like the way they invest in the stock market.
Now at the time of global turmoil insurance company had to hold on to
the policyholders trust which might lead the company to the path of success .
Insurance companies should try to adopt different strategies to market their products or
plan.
Companies should not primarily focus on the agents for their business.

43

CONCLUSION

Insurance is one sector that witnessed continuous growth owing to the reforms in 2000. The
insurance sector is likely to attain a size of Rs. 2,00,000 crore ($ 51.2 billion) in 2009-10. In life
insurance, the business grew by 23.3% to Rs. 93,000 crore in 2007-08 (Source:Assocham). The
sector alone employs close to 30 lakh people (including agents and direct
employees).A well-functioning insurance market plays an important role in economic
development and financial stability of developing economies such as Indias. First, it inculcates
and encourages the habit of saving. Second, it provides a safety net to rural and urban enterprise
and productive individuals. The life insurance market in India is on a growth path. In spite of
this, the country lags far behind the others in awareness about life insurance. The challenge is to
spread awareness about life insurance and it true benefits. The industry has to convince people to
park their hard earned money in long-term insurance and not just look at it as a tax saving
instrument.

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BIBLIOGRAPHY
Marketing Management- Philip Kotlor, edition-twelth edition.April 2004,. Publisher- Prentice
Hall of India (p) Ltd, Analyzing Consumer Markets & Buyer behavior & consumer behavior.
Broachers from Reliance Life Insurence .

WEBSITES
www.reliancelifeinsurence.com
www.irdaindia.org
wikipedia.org
www.selling-well.com
www.insureme.com
www.advisortoday.com
www.unlockthegame.com
www.lic.com

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ANNEXURE

QUESTIONNAIRE

Questions:
46

1) Are y o u aw a re w i t h R e l i a n c e l i f e i n s u r a n c e ?
a) Yes
b) No

2 ) I n w h i c h I n s u r a n c e c o mp a n y y ou b e l i e v e m o s t ?
a) L.I.C
b) I.C.I.C.I
c) Reliance Life Insurance

d) Bajaj alliance

3 ) I n w h i c h c o mp a n y y ou b e l i e v e m o s t ?
a) Private
b) Public

4 ) I n s u r a n c e p o l i cy t a k e n f rom w h i c h c o mp a n y ?
a) L.I.C
b) I.C.I.C.I
47

c) Reliance Life Insurance

d) Others

5 ) F ro m w h o s e s u g g e s t i o n ha v e t h e res p o n d e n t t a ke n p o l i cy ?
a) Family
b) Friends
c) Agents
d) Others

6) Which type of plan are you used?

a) Term Plan
b) Endowment Plan
c) Money back Plan
d) Pension plan
48

e) Health plan

7) Which preference of insurance sector are you used according to

age group beyond 40?
a) L.I.C
b) I.C.I.C.I
c) Reliance life insurance
d) Others

8) Which preference of insurance sector used according to age

group between 25 - 40?
a) L.I.C
b) I.C.I.C.I
c) Reliance Life Insurance
d) Bajaj Alliance
e) Bharti AXA Insurance

9 ) How much money you want to invest in insurance?

49

a) 10000 to 15000
b) 15001 to 20000
c) 20001 to 25000
d) 25001 to 30000
e) 30001 to 35000

10)

How do you want to pay your premium?

a) Cash
b) Cheque and credit card
c) Demand draft

50