A

Project Report
On
“CUSTOMER APPROACH TOWARDS THE LIFE INSURANCE PLANS OF
RELIANCE”

with reference to

“RELIANCE LIFE
INSURANCE”

In the

Partial fulfillment of the degree of

BACHELOR OF BUSINESS ADMINISTRATION (B.B.A)

(BATCH 2006-09)
 STUDENT DECLARATION

I, XYZ hereby declared that this project report is the result of my intensive study
during my on job training of four to five weeks at ANG Associates, GWALIOR.

All the facts in this report are genuine, authentic and purely in academic interest only
on financial services department at ANG Associates, GWALIOR.
 ACKNOWLEDGEMENT

I convey my sincere gratitude and thanks to ANG Associates for giving me

opportunity to carry out this project.
I thankful to pqr, whose guidance and suggestions were of immense value .The
personal interest and involvement made by him, and helped me in timely completion of my
project work.
I would also like to thanks along with our for allowing me to work on this project.
I also extend my gratitude to our for helping me in fulfilling the requirements for the
execution of project.
I also acknowledge & convey my deep sense of gratitude and thanks to my subject
teacher who guided me very kindly at each and every step whenever I required and he
supported me with full interest. I am highly inducted to him for sharing his precious
reference & time for careful preparation & security of the project.
I would like to thanks to all those who are connected with the project for providing me
a wonderful experienced and learning opportunity.

BBA V SEM
 CONTENTS

 Topic Introduction

 Company Profile

 Insurance Industry – an introduction

 Research Methodology

a. Research objective

b. Research design

c. Sampling

d. Data collection

e. Data analysis

 Findings

 Suggestions

 Conclusion

 Limitation

 Bibliography
 COMPANY PROFILE
ABOUT
RELIANCE LIFE INSURANCE LTD.

Reliance Life Insurance Company Ltd is one of the major market players in
insurance sector. It is an associate company of Reliance Capital Ltd., a part of
Reliance - Anil Dhirubhai Ambani Group.

Being one of the top 3 private sector financial services companies in India,
Reliance Insurance aims at “empowering everyone live their dreams”.
Reliance Life Insurance or RLIC has insured more than 1.7 Million people in
2 years of operation. Not only this, it is certified ISO 9001:2000 for all the
processes. To add another feather to its hat, Reliance Life Insurance was
awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of
Merit.
 OVERVIEW
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 of 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 - Anil Dhirubhai Ambani Group also has presence in

Communications, Energy, Natural Resources, Media, Entertainment,
Healthcare and Infrastructure.
 RELIANCE LIFE INSURANCE
PLANS

Reliance Life Insurance provides a number of investment plans for individuals

as well as group. Some of these plans include:

 Protection Plans- with these plans one can protect his/her family. One can
choose between a limited period plan and a lifetime protection plan.

 Savings & Investment Plans- these plans help one to save some money for
the specific future purposes. Now, one can provide for the family’s daily
needs and also not worry about expenditures!

 Retirement Plans- as the name suggests, these plans help one to save
money even after retirement. Now enjoy the freedom of being independent
even after your retirement!

 Child Plans- if one is planning to secure one’s child’s future, then s/he can
invest in Reliance Child Plans.
 Vision & Mission

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.
 Achievements
 RLIC has been one of the fast gainers in market share in new business
premium amongst the private players with an incremental market share
of 4.1% in the Financial Year 2007-08 – from 3.9% in April 07 to 8%
in Feb 08. ( Source: IRDA)

 Also continues to be amongst the fast growing Private Life

Insurance Companies with a YOY growth of 195% in new business
premium as of Mar’08.
 A Company that has crossed 1.7 Million policies in just 2 years of
operation, post takes over of AMP Sanmar business.
 Initiated Express Life – and Unique ’Over the Counter’ sales process
for Unit Linked Insurance Policies in the Industry.
 Accomplished a large distribution ramp-up in the Industry in a short
span of time by opening 600 branches in 10 months taking the overall
branch network above 740.
  RLIC continues to be one of the two Life Insurance companies in India
to be certified ISO 9001:2000 for all the processes.
 Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007-
Certificate of Merit in the Financial Services category by Council for
Fair Business Practices (CFBP).

Leadership Team
BOARD OF DIRECTORS

Gautam Doshi, Managing Director

Satya Pal Talwar, Director

Saumen Ghosh, Group President

P Nandagopal, Chief Executive Officer

Malay Ghosh – Deputy Chief Executive Officer

Maneesha Thakur, Chief Human Resources Officer

Rajesh Bahl, Chief Financial Officer

Pournima Gupte, Appointed Actuary

C Mohan, Chief Technology Officer

R Rangarajan, Chief Investment Officer

S V Sunder Krishnan, Chief Risk Officer

Saroj K Panigrahi, Head – Legal, Compliance & Company Secretary

Insurance Industry – An Introduction

Indian Insurance Industry: Insurance may be described as a social device to

reduce or eliminate risk of life and property. Under the plan of insurance, a
large number of people associate themselves by sharing risk, attached to
individual.

The risk, which can be insured against include fire, the peril of sea, death,
incident, & burglary. Any risk contingent upon these may be insured against
at a premium commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called

insurer undertakes in exchange for a fixed sum called premium to pay the
other party happening of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the

insured, the insurers pay the financial losses suffered by the insured as a result
of the occurrence of unforeseen events.

With the help of Insurance, large number of people exposed to a similar risk
makes contributions to a common fund out of which the losses suffered by the
unfortunate few, due to accidental events, are made good.
 MEANING of Life Insurance

Life insurance or life assurance is a contract between the policy owner and the insurer,
where the insurer agrees to pay a sum of money upon the occurrence of the insured
individual's or individuals' death or other event, such as terminal illness or critical illness.
In return, the policy owner agrees to pay a stipulated amount called a premium at regular
intervals or in lump sums. There may be designs in some countries where bills and death
expenses plus catering for after funeral expenses should be included in Policy Premium.

As with most insurance policies, life insurance is a contract between the insurer and the
policy owner whereby a benefit is paid to the designated beneficiaries if an insured event
occurs which is covered by the policy. To be a life policy the insured event must be based
upon the lives of the people named in the policy.

Insured events that may be covered include:

 Serious illness

Life policies are legal contracts and the terms of the contract describe the limitations of the
insured events. Specific exclusions are often written into the contract to limit the liability of
the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

 Protection policies - designed to provide a benefit in the event of specified event,

typically a lump sum payment. A common form of this design is term insurance.
  Investment policies - where the main objective is to facilitate the growth of capital
by regular or single premiums. Common forms (in the US anyway) are whole life,
universal life and variable life policies.

Overview
Parties to contract
There is a difference between the insured and the policy owner (policy holder), although
the owner and the insured are often the same person. For example, if Joe buys a policy on
his own life, he is both the owner and the insured. But if Jane, his wife, buys a policy on
Joe's life, she is the owner and he is the insured. The policy owner is the guarantee and he
or she will be the person who will pay for the policy. The insured is a participant in the
contract, but not necessarily a party to it.

The beneficiary receives policy proceeds upon the insured's death. The owner designates
the beneficiary, but the beneficiary is not a party to the policy. The owner can change the
beneficiary unless the policy has an irrevocable beneficiary designation. With an
irrevocable beneficiary, that beneficiary must agree to any beneficiary changes, policy
assignments, or cash value borrowing.

In cases where the policy owner is not the insured (also referred to as the cestui qui vit or
CQV), insurance companies have sought to limit policy purchases to those with an
"insurable interest" in the CQV. For life insurance policies, close family members and
business partners will usually be found to have an insurable interest. The "insurable
interest" requirement usually demonstrates that the purchaser will actually suffer some kind
of loss if the CQV dies. Such a requirement prevents people from benefiting from the
purchase of purely speculative policies on people they expect to die. With no insurable
interest requirement, the risk that a purchaser would murder the CQV for insurance
proceeds would be great.

Contract terms
Special provisions may apply, such as suicide clauses wherein the policy becomes null if
the insured commits suicide within a specified time (usually two years after the purchase
date; some states provide a statutory one-year suicide clause). Any misrepresentations by
the insured on the application are also grounds for nullification.

The face amount on the policy is the initial amount that the policy will pay at the death of
the insured or when the policy matures, although the actual death benefit can provide for
greater or lesser than the face amount. The policy matures when the insured dies or reaches
a specified age (such as 100 years old).

Costs, insurability, and underwriting

The insurer (the life insurance company) calculates the policy prices with intent to fund
claims to be paid and administrative costs, and to make a profit. The cost of insurance is
determined using mortality tables calculated by actuaries. Actuaries are professionals who
employ actuarial science, which is based in mathematics (primarily probability and
statistics). Mortality tables are statistically-based tables showing expected annual mortality
rates. It is possible to derive life expectancy estimates from these mortality assumptions.
Such estimates can be important in taxation regulation.

The three main variables in a mortality table have been age, gender, and use of tobacco.
More recently in the US, preferred class specific tables were introduced. The mortality
tables provide a baseline for the cost of insurance. In practice, these mortality tables are
used in conjunction with the health and family history of the individual applying for a
policy in order to determine premiums and insurability. Mortality tables currently in use by
life insurance companies in the United States are individually modified by each company
using pooled industry experience studies as a starting point. In the 1980s and 90's the SOA
1975-80 Basic Select & Ultimate tables were the typical reference points, while the 2001
VBT and 2001 CSO tables were published more recently. The newer tables include
separate mortality tables for smokers and non-smokers and the CSO tables include separate
tables for preferred classes.

Recent US select mortality tables predict that roughly 0.35 in 1,000 non-smoking males
aged 25 will die during the first year of coverage after underwriting. Mortality
approximately doubles for every extra ten years of age so that the mortality rate in the first
year for underwritten non-smoking men is about 2.5 in 1,000 people at age 65. Compare
this with the US population male mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age
65 (without regard to health or smoking status).

The mortality of underwritten persons rises much more quickly than the general population.
At the end of 10 years the mortality of that 25 year-old, non-smoking male is
0.66/1000/year. Consequently, in a group of one thousand 25 year old males with a
$100,000 policy, all of average health, a life insurance company would have to collect
approximately $50 a year from each of a large group to cover the relatively few expected
claims. (0.35 to 0.66 expected deaths in each year x $100,000 payout per death = $35 per
policy). Administrative and sales commissions need to be accounted for in order for this to
make business sense. A 10 year policy for a 25 year old non-smoking male person with
preferred medical history may get offers as low as $90 per year for a $100,000 policy in the
competitive US life insurance market.

The insurance company receives the premiums from the policy owner and invests them to
create a pool of money from which it can pay claims and finance the insurance company's
operations. Contrary to popular belief, the majority of the money that insurance companies
make comes directly from premiums paid, as money gained through investment of
premiums can never, in even the most ideal market conditions, vest enough money per year
to pay out claims. Rates charged for life insurance increase with the insurer's age because,
statistically, people are more likely to die as they get older.

Given that adverse selection can have a negative impact on the insurer's financial situation,
the insurer investigates each proposed insured individual unless the policy is below a
company-established minimum amount, beginning with the application process. Group
Insurance policies are an exception.

This investigation and resulting evaluation of the risk is termed underwriting. Health and
lifestyle questions are asked. Certain responses or information received may merit further
investigation. Life insurance companies in the United States support the Medical
Information Bureau (MIB) , which is a clearinghouse of information on persons who have
applied for life insurance with participating companies in the last seven years. As part of
the application, the insurer receives permission to obtain information from the proposed
insured's physicians.

Underwriters will determine the purpose of insurance. The most common is to protect the
owner's family or financial interests in the event of the insurer's demise. Other purposes
include estate planning or, in the case of cash-value contracts, investment for retirement
planning. Bank loans or buy-sell provisions of business agreements are another acceptable
purpose.

Life insurance companies are never required by law to underwrite or to provide coverage to
anyone, with the exception of Civil Rights Act compliance requirements. Insurance
companies alone determine insurability, and some people, for their own health or lifestyle
reasons, are deemed uninsurable. The policy can be declined (turned down) or rated. Rating
increases the premiums to provide for additional risks relative to the particular insured.
Many companies use four general health categories for those evaluated for a life insurance
policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. Preferred
Best is reserved only for the healthiest individuals in the general population. This means,
for instance, that the proposed insured has no adverse medical history, is not under
medication for any condition, and his family (immediate and extended) has no history of
early cancer, diabetes, or other conditions. Preferred means that the proposed insured is
currently under medication for a medical condition and had a family history of particular
illnesses. Most people are in the Standard category Profession, travel, and lifestyle factor
into whether the proposed insured will be granted a policy, and which category the insured
falls. For example, a person who would otherwise be classified as Preferred Best may be
denied a policy if he or she travels to a high risk country. Underwriting practices can vary
from insurer to insurer which provide for more competitive offers in certain circumstances.

Life insurance contracts are written on the basis of utmost good faith. That is, the proposer
and the insurer both accept that the other is acting in good faith. This means that the
proposer can assume the contract offers what it represents without having to fine comb the
small print and the insurer assumes the proposer is being honest when providing details to
underwriter.

Death proceeds
Upon the insured's death, the insurer requires acceptable proof of death before it pays the
claim. The normal minimum proof required is a death certificate and the insurer's claim
form completed, signed (and typically notarized). If the insured's death is suspicious and
the policy amount is large, the insurer may investigate the circumstances surrounding the
death before deciding whether it has an obligation to pay the claim.

Proceeds from the policy may be paid as a lump sum or as an annuity, which is paid over
time in regular recurring payments for either a specified period or for a beneficiary's
lifetime.
 Types of Life Insurance
Term Insurance Policy
Whole Life Policy
Endowment Policy
Money Back Policy
Annuities And Pension

Most of the products offered by Indian life insurers are developed and
structured around these "basic" policies and are usually an extension or a
combination of these policies. So, what are these policies and how do they
differ from each other?

Term Insurance Policy

  A term insurance policy is a pure risk cover for a specified period of time. What
this means is that the sum assured is payable only if the policyholder dies within the
policy term. For instance, if a person buys Rs 2 lakhs policy for 15-years, his family
is entitled to the money if he dies within that 15-year period.
 What if he survives the 15-year period? Well, then he is not entitled to any
payment; the insurance company keeps the entire premium paid during the 15-year
period.
 So, there is no element of savings or investment in such a policy. It is a 100 per cent
risk cover. It simply means that a person pays a certain premium to protect his
family against his sudden death. He forfeits the amount if he outlives the period of
the policy. This explains why the Term Insurance Policy comes at the lowest cost.

Whole Life Policy

 As the name suggests, a Whole Life Policy is an insurance cover against death,
irrespective of when it happens.
 Under this plan, the policyholder pays regular premiums until his death, following
which the money is handed over to his family.

This policy, however, fails to address the additional needs of the insured during his post-
retirement years. It doesn't take into account a person's increasing needs either. While the
insured buys the policy at a young age, his requirements increase over time. By the time he
dies, the value of the sum assured is too low to meet his family's needs. As a result of these
drawbacks, insurance firms now offer either a modified Whole Life Policy or combine in
with another type of policy.

Endowment Policy

Combining risk cover with financial savings, endowment policies is the most popular
policies in the world of life insurance.
  In an Endowment Policy, the sum assured is payable even if the insured survives
the policy term.
 If the insured dies during the tenure of the policy, the insurance firm has to pay the
sum assured just as any other pure risk cover.
 A pure endowment policy is also a form of financial saving, whereby if the person
covered remains alive beyond the tenure of the policy, he gets back the sum assured
with some other investment benefits.

In addition to the basic policy, insurers offer various benefits such as double endowment
and marriage/ education endowment plans. The cost of such a policy is slightly higher but
worth its value.

Money Back Policy

 These policies are structured to provide sums required as anticipated expenses

(marriage, education, etc) over a stipulated period of time. With inflation becoming
a big issue, companies have realized that sometimes the money value of the policy
is eroded. That is why with-profit policies are also being introduced to offset some
of the losses incurred on account of inflation.
 A portion of the sum assured is payable at regular intervals. On survival the
remainder of the sum assured is payable.
 In case of death, the full sum assured is payable to the insured.
 The premium is payable for a particular period of time.

Annuities And Pension

In an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically.
The purpose of an annuity is to protect against risk as well as provide money in the form of
pension at regular intervals.

Over the years, insurers have added various features to basic insurance policies in order to
address specific needs of a cross section of people.
RESEARCH
METHODOLOGY
Research methodology includes the following steps:
a. Define research objective and research design.
b. Sampling

c. Collect the information.

d. Data analysis
 RESEARCH OBJECTIVES and RESEARCH
DESIGN
1. To evaluate the behavior of consumers regarding the various plans of reliance life
insurance.
2. To know what are the requirements in the insurance plans by consumers.

3. To know the satisfaction/dissatisfaction level of consumers towards the insurance

companies.

SAMPLING
The sampling for the Customer’s approaches towards Reliance Life
Insurance Survey was selected by random sampling.

 Random number was generated for selecting the sample.

 The sample size was of 50 customer’s survey.
 COLLECTION OF DATA
I collect the data through questionnaire, which is fill up by the people of the Gwl. City. The
purpose of data collection knows the satisfaction of customer towards the Reliance Life
Insurance plans in Gwalior. In data collection I asked the some question about the
satisfaction of customer.

The data has been collected from two main sources:-

1. Primary sources.
2. Secondary sources.

Primary data has been collected through questionnaires and by personal interview
method.

Secondary data has helped in collecting information regarding history of the company,
division of the company etc. of market position of other financial companies.
 DATA ANALYSIS
I have analyzed the data in following manner using satisfaction and dissatisfaction
grounds:-

1. Have you taken any Life Insurance Policy?

70%
60%
60%
50%
40%
40%
30%
20%
10%
0%
Yes No

2. Do you know about the various Life Insurance Plans offered

by Reliance Life Insurance?
 70%
60%
60%

50%
40%
40%

30%

20%

10%

0%
yes No

3. Which plan of Reliance Life Insurance you prefer more?

45%
40%
30%
35%
25% 25%
30%
25%
20%
20%
15%
10%
5%
0%
Protection Investment Child Retirement

3. Your reason for taking the above mentioned plan?

 100%
90%
80%
70%
60% 40%
50%
25%
40%
20%
30% 15%
20%
10%
0%
Secures For For For
Life General Children Retirement
Investment Future Benefits

D) Why you choose Reliance Life Insurance for your Life Insurance?

35% 30%
30% 25% 25%
25% 20%
20%
15%
10%
5%
0%
Good will Charges Safety Service

E) How do you find the plans of Reliance Life?

 70%
60%
60%
50%
40%
30%
30%
20%
10%
10%
0%
highly satisfy Dissatisfy
satisfy

FINDINGS
1. People are interested in life insurances but are not much aware about the plans
suitable to their requirements.
2. The money problem with insurance a big problem. They want to invest less and
want get high benefits, which is not possible.

3. The procedures are also a big problem.

4. Other groups people like agricultural are not aware and interested in any kinds of
insurances.
 RECOMMENDATIONS
The detail study of the project idea to the following recommendation:-

1. The company should come up with some good strategies to create awareness among
people regarding the various plans..
2. They should try to provide some extra services to their customers.

3. The company should concentrate more on after sales services.

 CONCLUSION
Concerning my project title “CONSUMER APPROACHES TO RELIANCE LIFE
INSURANCE PLANS IN GWALIOR” the survey conducted by me as I found that the
consumer ideas and their meeting their requirements is the only way for the success of any
organization in the present time. And I came to the following conclusions which are as
follows –
1. Response was very good from the customer regarding plans.
2. Peoples are interested in insuring their lives and also like to invest in other plans
also.

3. I concluded by this research that services and returns got more importance than
goodwill.

4. I also conclude that many financial services at one place is the another reason of its
popularity.

LIMITATION
 Due to short time I was not able cover all area.
 Not financially support given by the company.
 Due to lack of awareness and interest on the part of respondents created problem in
the data collection.

BIBLIOGRAPHY
Books:

1. MARKETING RESEARCH, SHARMA D.D., SULTAN CHAND & SON

PUBLICATION, 3RD EDITION.
2. INSURANCE PRINCIPLES AND PRACTICE, M.N. MISHRA & S.B. MISHRA,
SULTAN CHAND & SON PUBLICATION.

Websites:

1. www.reliancelife.co.in

Magazines:

Business world.