A Summer Internship Project Report on

Study of Consumer Awareness and Customer Response Towards Reliance Life Insurance Company
Submitted in partial fulfillment of the requirements for the degree of Post Graduate Diploma in Management (Marketing+I.B)

Under Guidance of Proff.Kanchan Pantavaidya

Submitted by: Himanshu Shekhar

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PGDM (2010-12) SURYADATTA INSTITUTE OF MANAGEMENT & MASS COMMUNICATION (SIMMC),PUNE

A Study Conducted for RELIANCE LIFE INSURANCE COMPANY

DECLARATION
I Himanshu Shekhar hereby declare that the project report written and submitted by me under the guidance of Proff. is my original work. The empirical findings and data collected in this report are based on the information collected by me through fieldwork. I have not copied from any report submitted to any of the University/Institution. I understand that any coping is liable to be punishable by authorities.

Place:Pune Date: Signature

CERTIFICATE FROM COMPANY

ACKNOWLEDGEMENT
To accomplish a project it involves a lot of effort and contribution from a number of people. It is thus an opportunity for me to thanks those people who have helped me generously in completion of this project. I express my deep sense of gratitude to Reliance life Insurance for giving me the opportunity of doing this project in their well-renowned organization which otherwise would not have been easy.I am deeply indebted to Mr. John Paul (Territory Manager) in Reliance Life Insurance who selected me as a trainee to work with him and guided me throughout the project. I am grateful and would like to express sincere thanks to my internal guide Proff. Kanchan Pantavaidya for her valuable suggestion and guidance throughout this project.I would also like to thank Proff.Smita Santoki who guided me through out my project.This tremendously helped me in execution of the entire Project.

Himanshu shekha 4

EXECUTIVE SUMMARY
Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias 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. In todays competitive world I find that insurance sector has the maximum growth and potential as compare to the other sector. Insurance has the maximum growth rate of 7080% while as FMCG sector has maximum 12-15% growth rate. This growth potential attracts us to enter in the sector and RELIANCE LIFE INSURANCE gave me the opportunity to work and get experience in highly competitive and enhancing sector. The objective of the project was to be find out the Study of Consumer Awareness and Customer Response Towards Reliance Life Insurance Company. For this I have to understand consumer response, time frame, personality constraints and emotions for assessing the potential of insurance sector. So specifically the target of the project is to focus of the high network income groups like Spa owners, Jim owners ,beauty parlor owners, opticians and society managers. The first half of my project is to carry the fieldwork along with campaigning in different localities in Pune region. Data collected from fieldwork were submitted to the company for future requirements and also to get back to the customers. The study undertaken for two months. We were given more than one month for the collection of data and scanning of data. 5

This report shows detail work on following areas - Aundh - Baner - Sus Road - Baner Pashan Link Road For this purpose Feedback form was prepared which gave a broader picture of the people about their existence investment segments. The form shows details regarding current savings and planning for their future events. Through this form we got to know what people think about private insurance sector and get the idea about different flaws in the insurance sector because it is seen that during interview few people had a idea about private players in the insurance sector and their developments. The questionnaire contains various aspects like profession, education, current savings, number of dependants, address etc. Second part of the study contains scanning the form/questionnaire making proper evaluation of given information and going back to them showing how they need to plan their future and the direction to achieve their desired goals.

TABLE OF CONTENTS

SR.NO.
Introduction

TOPIC
1-3 2 2 3 4-19 5-11 12 13 14-17 18 19 20-23 21 22 22 23 24-35 36-37 38 39

PAGE NO

1.1 Introduction

1.
1.2 Purpose of the project 1.3 Scope of Project
Organizational Profile 2.1 Introduction of the company 2.2 Achievements

2.

2.3 Competitors 2.4 Products 2.5 Head office and Branch Offices 2.6 Organisation Structure Research Methodology 3.1 Objectives

3.

3.2 Sampling Methodology 3.3 Data Collection Method 3.4 Limitations

5. 6. 7. 8.

Data Analysis Conclusion Recommendation and learning Bibliography

Introduction

1. Introduction

About the project:The project is about A study on customer awareness and customer response towards reliance life insurance.

There are many companies providing insurance services to consumers so the aim of the project is to know about consumer awareness in insurance sector and brand awareness of Reliance Life Insurance Company.

Definition and purpose of the project

Customer awareness means to have information about insurance and different policies available in the market and need to have insurance.

Customer response is to know how customers are finding the services provided by the company and their preferences, likes and dislikes.

The purpose of the project is to study if the customer is aware about Reliance Life Insurance Company and different polices provided by the company and the customer services provided and the returns.

Scope of the project

To identify customers Perception about Reliance Life.

To identify Penetration of insurance in pune region. (Baner, Aundh)

To identify customer response about the different policy of Reliance Life Insurance Company. To create the customer awareness about the companys various insurance plans and to identify the potential customers. To generate leads for the company.

To determine the customer response about the service provided.

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Organizational Profile

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INTRODUCTION OF THE COMPANY

Reliance Life Insurance Company Ltd. is one of the major market players in insurance sector. Reliance Life Insurance is a subsidiary company of Reliance Capital Ltd. It is owned by the Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias 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 Life Insurance is not only one of India's fastest growing life insurance companies, but also counts among the top 4 private sector insurers. In just 2 years, the Company has crossed the mark of 1.7 Million policies. 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.The innovative products and services of Relian Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. Reliance Life Insurance has enabled it to become one of the respected insurance firms in India. In the year 2007, the Council for Fair Business Practices awarded a Certificate of Merit to Reliance Life Insurance for its excellence in the financial services sector Reliance - Anil Dhirubhai Ambani Group also has presence in following areas:-

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COMMUNICAT -ION

HEALTH CARE AND INFRASTRUCT -URE

ENERGY AND NATURAL RESOURCES

ADA GROUP

MEDIA

ENTERTAINMENT

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VISION AND MISSION

VISION
Empowering everyone live their dreams.

MISSION
The mission of Reliance Life Insurance Company Limited is to be the best in every sphere- business results, customer care and employee focus. The aim of the company is to Think Bigger and Think Better.

CORE VALUES
Reliance Life Insurance Company Limited has some core values which are Listed as follows: Result Oriented Performance Driven Customer Focused Learning and Development Oriented Employee Centric Informal and Fun

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HISTORY
Reliance Capital Limited announced the launch of its life insurance business on February 1, 2006. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. It was in August 2005 that the ball was set rolling when Reliance Capital Limited, the financial arm of Reliance Anil Dhirubhai Ambani Group. (ADAG) announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited; and the formal transfer of shares took place in October 2005. The company will issue all policy contracts under the Reliance Life Insurance Company limited name. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact.

ABOUT THE FOUNDER

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

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As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai. The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so.

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INTRODUCTION TO THE LIFE INSURANCE There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner andthe insured are often the same person. Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured.

Life insurance may be divided into two basic classes 1. Term life Insurance 2. Permanent life Insurance

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

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

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

Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. 17

Premiums increase the cash account. If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs. Check the National Association of Insurance Commissioners website (www.naic.org/cis) or your local library for information on the financial soundness of insurance companies. BENEFITS OF LIFE INSURANCE 1) Risk cover: Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future. 2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual. 3) Loans: An individual can easily access loans from different financial institutions by Pledging his insurance policies. 4) Retirement Planning: What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years. Moreover the cash value can be used as an additional income in the old age. 5) Educational Needs: Similar to retirement planning the cash values that flow from ones life insurance schemes can be utilized for educational needs of the insurer or his children.

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ACHIEVEMENTS

3rd largest private player in a span of just 4 years, moved from 11th position to 3rd

Amongst the fastest growing Companies for 4 years in a row Continuous increase in market share over 4 years; from 1.9% in 2005-06 to 10.26% in 2009 -10

RLIC has achieved a growth rate of 21% while the private industry has grown at 13%

Fastest to reach the 5 million policy mark Largest private insurer in terms of policy count in 2009-10 1145 branches 1,95,000 Advisors and over 16,000 employees RLIC continues to be amongst the foremost 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).

The Company has also won the DL Shah Quality Council of India Commendation Award in the services category in feb 2008 for its work on promoting 'self help channels for service' .

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COMPETITORS OF RELIANCE LIFE INSURANCE 1. Life Insurance Corporation Of India

2. Bajaj Alliance

3. Max newyork life insurance

4. ICICI Prudential

5. Bharti Axa Life insurance

6. Birla sunlife insurance

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PRODUCTS OF RELIANCE LIFE INSURANCE:

Life insurance products are designed to suit the requirements of customers. Reliance Life Insurance offers Solutions for Individuals, a series of plans that helps to make wise investments, protect the family, secure the childs future and even chalk out a plan for retirement.In todays uncertain world, there could be calamity at every step of the life. It is up to you to ensure that your family stays protected always. Reliance Protection Plans helps you do exactly the same. You have a wide range of options to choose a plan from. Right from limited period plans to lifetime protection plans, you can opt for the one that suits your lifestyle. While we understand that nothing can compensate for the loss of a life, we intend to provide you the peace of mind. Investing in Reliance Protection Plans would mean your familys future is in safe hands.

1.Protection Plans

Reliance Endowment Plan The Reliance Endowment Plan gives you financial independence by allowing you to decide the amount of Sum Assured based on your current financial position and expected future expenses Dreams. Reliance Whole Life Plan Give your family a lifetime of timely financial support by investing in the 21

Reliance Whole Life Plan. Reliance Cash Flow Plan Invest in the Reliance Cash Flow Plan and reap the dual benefits of a life insurance plan and easy liquidity through lump sum cash, which means you can get a percentage of the Sum Assured at periodic intervals.

2.Child Plans

Reliance Child Plan Save systematically and secure the financial future of your child by investing in the Reliance Child Plan and let your child enjoy today without worrying about tomorrow.

Reliance Secure Child Plan Reliance Life Insurance presents a unit linked insurance plan that secures your childs financial future, leaving you free from worry .

3.Savings & Investment Plans

Total Investment Plan I - Insurance Reliance TIPS -Series I- Insurance is a Unit Linked Investment + Insurance Plan that helps you meet all your financial needs, without the complexity of managing multiple products. 22

Reliance Money Guarantee Plan To reap the benefits of a rising market and to protect yourself from any market decline, invest in the unit linked Reliance Money Guarantee plan that gives you the perfect balance between Protection and Savings. Reliance Cash Flow Plan Invest in the Reliance Cash Flow Plan and reap the dual benefits of a life insurance plan and easy liquidity through lump sum cash, which means you can get a percentage of the Sum Assured at periodic intervals. Reliance Super Market Return Plan The Reliance Super Market Return Plan gives you insurance protection and allows you to benefit from investment growth. It works through your life and meets the changing requirements you may have from time to time.

Reliance Super Golden Years Plan - Value Realise all your dreams of playing golf, or going for a world tour after retirement by investing in the Reliance Super Golden Years Plan Value, which helps you generate the amount you will need for the future.

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4.Retirement Plans

Total Investment Plan II - Pension When you invest in the Reliance Total Investment Plan, you give yourself the assurance that you will make each one of your dreams come true!. Reliance Super Golden Years Plan The Reliance Super Golden Years Plan helps you save systematically and generate the much-needed corpus to help you enjoy life after retirement. Reliance Super Golden Years Plan - Value Realise all your dreams of playing golf, or going for a world tour after retirement by investing in the Reliance Super Golden Years Plan Value, which helps you generate the amount you will need for the future.

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Corporate Offices
Registered Office: HBlock,1stFloor, Dhirubhai Ambani Knowledge City, Navi Mumbai, Maharashtra 400710. Corporate Office: 9th floor/10th floor, Building No. 2, R-Tech Park, Nirlon Compound, Next to Hub Mall, Behind I- Flex building, Goregaon, (East), Mumbai-400 063. Fax No: 02230002222

Branch Offices in Pune

Address Cybernex, F.P.399, 2nd Floor,South Wing, Shankar Sheth RoadPuneMaharashtra,411037 ICC Trade Tower, Ground Floor,Seepati Bapat Road,PuneMaharashtra,411006 304, 3rd floor, Steller Enclave CHS,DP Road, Off, Parihar Chowk, AundhPuneMaharashtra,411007 2nd floor, The Avenue, Pune SolaPur Road,Near Shankar Math, Hadapsar,PuneMaharashtra,411001 2, A Wing, 2nd floor, Premier Plaza,Bombay Pune Road, Chinchwad,PuneMaharashtra,411019 Phone No. 020-30488094 02030258048/02030258047 020-30116950

020-30490024

020-39871717

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ORGANIZATION FORM AND STRUCTURE

CEO
CHANNEL HEAD

JONAL HEAD

REGIONAL HEAD

TERRITORY MANAGER

SALES MANAGER AGENTS CUSTOMERS

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RESEARCH METHODOLOGY

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Research Methodology
The objective of the study:

The objective behind the conducting project exercise was to get useful insight about the insurance sector. This report is prepared with some specific objectives. The objectives are as under: To understand the fundamentals of insurance. Identify the diverse customer requirement and identify the various life insurance products, which have been developed from time to time to meet the requirement. To create brand awareness of reliance life insurance company. To record customer response on the services provided by the company. Apart from this, I had to generate the leads through recruiting the new Sales Mangers & Advisors for the company to generate business. Type of research: The research is a descriptive type of research. This type of research is extensively used for discovery, to make prediction and to test hypothesis.

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Data collection: The technique used for data collection is through filling up of questionnaire by the respondents. Data is collected by Primary as well as secondary method. Primary Data Primary data was collected by questionnaire method and discussions with the customers were used to collect data. Secondary Data Sources The secondary data sources were collected from the data available with company, handbooks, and newspapers.

Selecting the sample or the sampling plan: Non-probabilistic sampling technique was used for the survey. Sample Size:- The sample size is 94.

Processing and analysis of the data obtained: The analysis of the obtained data was done using MS Excel (used for formulating the bar graphs to obtain comparable results) and using SPSS 19software.

Reporting the findings:The findings were reported at the end of each attribute analysis mostly in the form of percentage and as the factor analysis report

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Limitation of the project: The following were the limitations faced during the course of the research work Only the respondents from the Aundh and Baner region were available for the survey which made the sample size very small. Disinterest from some of the candidates in filling up of the questionnaire. Some of the respondents did not have enough time to spare with researcher. Assumptions were made that the respondents had filled up the questionnaire with full sincerity. Most of the people do not prefer private insurance company. They only trust on LIC. So they dont want to spend their money in private companies

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Data Analysis & Interpretation

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Data Analysis
1. Income:

Average income Upto 2 lakh 3-5 lakh 5-8 lakh Above 8 lakh

No. of respondents 17 37 25 15

% of Customers 18.09 39.36 26.60 15.96

Avg income
Upto 2 lakh 3-5 lakh 5-8 lakh Above 8 lakh

16%

18%

27% 39%

Interpretation: Average income in the Aundh, Baner region is 3-5 lacs with 39%, followed by 5-8 bracket with 27%.This gives there are many potential customers to be tapped in this region

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2.Qualification
No. of Respondents 13 23 39 19 % of respondents 13.83 24.47 41.49 20.21

Qualification < 12th Standard Graduation Post-Graduation Above P G

Qualification
20% 14% 24% < 12th Standard Graduation Post-Graduation Above P G

42%

Interpretation: Respondents are qualified in Post graduation with 42%. This gives there are major people who are aware about life insurance in the region They can also be used as an potential leads for the recruitment of advisors

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3.No. of family members

no. of family members 2 3 4 5 Above 6 No. of Respondents % of respondents 21 26 34 9 4 22.34 27.66 36.17 9.57 4.26

Family Members
10% 4% 22% 2 3 36% 28% 4 5 Above 6

Interpretation: There is huge market to be captured in this region with 36% & 28% of respondents having 4-5 no. of family members.

Company should pitch the family cover plans more in this region and also the investment plans. 34

4. Aware about different Tax saving Instruments

Are you aware about different Tax saving Instruments yes no No. of Respondents % of respondents 72 76.60 22 23.40

Different Tax saving Instruments

23%

yes 77% no

Interpretation:

Since the qualification rate is higher in this region with major people having Post graduates and graduates.

They are aware about the different tax savings instrument available in the market.

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5. Consider insurance as a Tax saving Instruments

Do you consider insurance as a Tax saving Instruments yes no

No. of Respondents

% of respondents 81 86.17 13 13.83

insurance as a Tax saving Instruments

14%

yes no 86%

Interpretation: Insurance is majorly considered as a tax saving instrument as 86% respondents answered yes.

Insurance should be pitched as an Life Cover option, not merely an tax saving instrument.

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6. Aware of Reliance Life Insurance Company.

Are you aware of Reliance Life Insurance Company yes no No. of Respondents % of respondents 89 94.68 5 5.32

Awareness of Reliance Life Insurance Company

7%

yes no 93%

Interpretation:

93% respondent answered yes, this gives people are aware about the company.

But still there is need of promotion to cover the 7% region in Aundh and Baner.

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7.Medium of information different products of Reliance Life.

Medium Agents Friends News paper Data calling Web sites No of Respondents 44 18 14 12 6 % of respondents 47% 19% 15% 12% 6%

Sales
6% 12% Agents 47% 15% friends news paper data calling websites 19%

Interpretation: 47% respondents got to know about the products by agents.19% by friends and rest of them by other mediuns.

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8. Consider Reliance life as a promise worthy company.

Do you consider Reliance life as a promise worthy company Yes No No. of Respondents % of respondents 58 61.70 36 38.30

Is Reliance life as a promise worthy company

38% 62% yes no

Interpretation: Reliance life should increase brand awareness among people to enhance its credibility, as 38% think it is not a promise worthy company.

By providing better services and giving promised rate of returns to the customers, company can increase its credibility.

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9. Policy holder of any other company.

Are you a policy holder of any other company LIC BAJAJ ALLIANZ ICICI Prudential HDFC STANDARD LIFE MAX NEWYORK LIFE Kotakmahindra Birla Sun Life No No. of Respondents 28 12 14 4 6 10 12 8 % of respondents 29.79 12.77 14.89 4.26 6.38 10.64 12.77 8.51

Policy holder of any other company

LIC 13% 11% 6% 15% 4% 13% 8% 30% BAJAJ ALLIANZ ICICI Prudential HDFC STANDARD LIFE MAX NEWYORK LIFE kotak mahindra Birla Sun Life No

Interpretation: 30% respondents are already having policies of LIC, followed by ICICI & Bajaj Allianz with 15% & 13% respt. LIC being the major competitor and in private companies providing life insurance ICICI Pru, Bajaj Allianz ,Kotak Mahindra are the major competition.

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10. Rate the benefits of the current product you are using against other similar ones in the
market . How would you rate the benefits of the current product you are using against other similar ones in the market 1 2 3 4 5

No. of Respondents 11 12 28 17 26

% of respondents 11.70 12.77 29.79 18.09 27.66

Rate the benefits of the current product

33% 7% 13% 20% 27% 1 2 3 4 5

Interpretation: Reliance Life has an great opportunity in promoting its policies and benefits, as around 54% respondents rate their current product benefits to 1-3.

Reliance Life should increase awareness among the people and pitch the product as an high benefit providing product.

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11.Rate the customer service component of the company.

How would you like to rate the customer service component of the company 1 2 3 4 5

No. of Respondents 7 11 34 23 19

% of respondents 7.45 11.70 36.17 24.47 20.21

Customer service component of the company

33% 7% 13% 20% 27% 1 2 3 4 5

Interpretation: Customer service component of the company has to be enhanced as 40% of respondents rating it to 1-3, which is averagely good . Company should provide more service to the respondents rating it to 4-5,in order to retain the customers. Customer suggestions are to be taken for revising the customer service.

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Conclusion

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Conclusion: Salient conclusion from the work: After doing training in the insurance sector, I can tell that insurance industry is one of the fastest growing sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, so in future there will be lots of job in this sector. Reliance life has a great market presence, being 3rd in the ranking for the private insurance players in the market

There is awareness about the life insurance with the people in the Aundh and Baner region, but mostly for the tax saving purpose.

Life insurance sector is largely untapped as only a fraction of lives are covered under insurance in india.

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Recommendations: The company should invest in advertising, conduct road shows, and spend money on hoardings, so that it can be known better. The company should try to increase its penetration levels so that its can reach out to many prospective customers. Proper pitching of the policy is important, it should be pitched as an life cover The eligibility criteria for recruitment of sales managers and financial advisors should be revised.

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Bibliography

Books: Life Insurance IC33, IRDA

Websites: en.wikipedia.org www.relainceinfo.com Scribd.com Docstoc.com Irda.gov.in

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