a-summer-training-project-report-reliance-life-insurance

Reliance Life Insurance
Anil Dhirubhai Ambani Group
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.
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What is insurance
Insurers call this general insurance to differentiate it from life
assurance. It is natural to think of insurers of physical assets such
as motor car insurance of fire insurance but often we forget that
creator of all these assets is human being whose efforts have gone a
long way in building up the assets. In that sense, human life is a
unique income generating assets. Unlike the physical assets, which
decrease in value with the passage of time, the individual becomes
more experienced and more matured as he advanced in age. This
raise his earning capacity and the purpose of life insurance is to
protect the income of individual and provide financial security to
his family, which is dependent on his income in the event of his
premature death. The individual himself also needs financial
security for the old age or on his becoming permanently disabled
when his income will stop. Insurance also has an element of saving
in certain cases.
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Classification of Insurance
Uncertainty in life is certain, filled with trials and tribulations in
every aspect of life. Prediction or estimation of what the future has
in store for him is not possible. Insurance is expected to aid in
partially overcoming these vagaries of life. Insurance can never
replace or repair a loss. But the monetary value offered by
insurance helps in adjusting to the new circumstances. Despite
offering innumerable options and immense scope, insurance can be
classified into four main categories.
 Insurance of Person
 Insurance of Property
 Insurance of Interest
 Insurance of Liability
Insurance of Person:
The risk associated with human life and health, resulting from
unplanned contingencies could be covered under insurance up to the
limit specified. In the event of his death, his dependants will be
reimbursed to the full amount that he was insured for. Or if the
insured person meets with an accident or suffers from an illness that
cripples him forever, he will be compensated with the complete sum
assured anyway since he may not be able to lead a normal life again.
In case, the accident is not that severe, he should be able to recover
after medical treatment and rehabilitation. If he has opted for
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medical cover, then his medical expenses, treatment and medication
will be paid for by his insurance policy.
Insurance of Property:
Every individual would be an owner of tangible assets in the form
of land, Estate, vehicles, share holdings or plain paper money. The
tangible assets are associated with risk of fire, theft, robbery etc.
The life times’ achievements marked by these assets could be
washes off without a trace within fraction of a second. But if a
person judiciously invests in insurance for his property prior to any
unexpected contingency then he will be suitably compensated for
his loss as soon as the extent of damage is ascertained.
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Insurance of Interest:
Every individual is bound to discharge certain duties, maintain a
certain standard of conduct. But then, it is an intrinsic part of
human nature to err. No one is infallible and no one will ever be.
This trait may lead us to commission of occasional error or
omission, leading to a loss for our clients or customers. As a result,
we might have to pay them damages or compensation out of our own
personal resources. But, if our chosen profession qualifies for
insurance of interest, then our insurance policy will more than
suffice in arranging for the funds and court formalities that might
ensue in the aftermath of legal libel.
Insurance of Liability:
Every person has to regulate his actions and behaviour so as not to
cause injury or damage to other people and their property. Everyone
is personally responsible and liable for his actions. If due to lack of
control over his actions or prejudiced behaviour, a person incurs
any liability then he has to provide compensation out of his personal
resources. Liabilities: legal, civil or criminal can have severe
repercussions on social standing and prestige besides the financial
status. By investing in liability insurance, an individual can ward
off any liabilities he might incur due to his actions and behaviour.
Besides, the premiums payable on liability insurance are fairly
minimal when compared to the damages that have to be
compensated in the long run.
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Life Insurance – India
Life Insurance in India was nationalized b life Insurance
Corporation (LIC) in 1956. All private life insurance companies at
that time were taken over by LIC.
In 1993 the Government of Republic of India appointed RN
Malhotra Committee to lay down a road map for privatization of the
life insurance sector.
While the committee submitted its report in 1994, it took another
six years before the enabling legislations was passed in the year
2000, legislation amending the Insurance act of 1938 and legislating
the Insurance Regulatory and Development Authority Act of 2000.
The ame year that the newly appointed insurance regulator –
Insurance Regulatory and Development Authority IRDA – started
issuing licenses to private life insurers.
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List of Life Insurers (as of March, 2006)
Apart from Life Insurance Corporation, the public sector life
insurer, there are 14 other private sector life insurers, most of them
joint ventures between blue blooded Indian groups and global
insurance giants.
Life Insurer in Public Sector
1. Life Insurance Corporation of India
Life Insurers in Private Sector
1. Bajaj Allianz Life
2. ICICI Prudential Life Insurance
3. HDFC Standard Life
4. Birla Sunlife
5. SBI Life Insurance
6. Kotak Old Mutual Life Insurance
7. Aviva Life Insurance
8. Reliance Life Insurance – Formarly known as AMP Sanmar
LIC
9. Tata AIG Life
10. Metlife India Life Insurance
11. ING Vysya Life Insurance
12. Max Newyork Life Insurance
13. Sahara Life insurance – Now they are not into business
14. Shriram Life Insurance
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Uses of life Inssurance
Life Insurance has many uses for both individuals and businesses.
Some common uses include:
Individual Uses
Funeral – Life Insurance proceeds can ensure that there is enough
money for proper funeral and burial expenses.
Dept – Personal bills, credit card debt, student loans, and personal
notes can be covered by life insurance in the event of an
individual’s death.
Mortgage Protection – The proceeds of a life insurance policy can
pay off the balance of a mortgage or provide an income stream to
pay monthly mortgage or rent payments.
Income Replacement – In the event of an individual’s death life
insurance proceeds can provide a supplemental income stream to
ensure that the surviving family members are able to maintain the
same standard of living.
Education – Life insurance proceeds can ensure that the education
costs of the insured’s children are covered.
Taxes – Federal estate and state inheritance taxes can be pre-funded
using life insurance to preserve the value of an estate.
Donations/Gifts – An individual can use a life insurance policy to
fund a donation to a charity or leave a gift to a family member.
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Business Uses
Key-person – A life insurance policy can be used to protect a
business from the loss of profits caused by the death of a key
employee.
Business Continuation – Life insurance can be used to fund a
buy/sell agreement or stock redemption plan to enable a partner or
group of employees to buy the business interest of a deceased
partner.
Business Loans – Life insurance protection on a key employee or
business owner can be used pay off the debts of a business in the
event of that individual’s death.
Employee Benefits – Life insurance protection for employees is
commonly included in company employee benefits plans.
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Needs for Life Insurance
 Temporary needs / threats: - The original purpose of life
Insurance remains an important element, namely providing the
replacement of income on death etc.
 Regular saving: - Providing for one’s family and oneself as a
medium to long term exercise. This has become more relevant
in recent times as people seek financial independence from
their family.
 Investment: - Put simply, the building up of saving while
safeguard it from ravages products are trationally lump sum
investment, where the individual makes a one time payment.
 Retirement: - provision for one’s own later becomes
increasingly necessary, especially in a changing cultural &
social environment one can buy a suitable policy, which will
provide periodical payment in one old age.
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BENEFITS FOM LIFE INSURANCE
 It is Superior to a traditional saving vehicle.
 It encourages saving and forces thrift.
 It provides easy settlement & protection against creditors.
 It can be encased & facilities borrowing.
 Tax Relief.
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ROLE INSURANCE IN ECONOMIC DEVELOPMENT
For economic development investment are necessary. Investments
are made out of saving a life Insurance Company is a major
instrument for the mobilization of the saving of people. These
investments are channeled into the investment for economics
growth. Investments are made in the area like.
1. Road transport
2. Setting up Industrial Estate
3. Directly financing Industry
4. investment in corporate sector like
5. Share
6. Debentures
7. Term Loan
These were the areas, which directly affect the live of the people
and their economic well beings.
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HEAD OFFICE
Reliance Life Insurance Company Li
Regd. Office: The Trapezium, mited, First Floor,
#39 Nelson Manickam Road, Chennai – 600 029
Phone No: +91-44-30588200
Fax No. : +91-44-30588220
Email: service@rcl.co.in
OFFICES IN PUNJAB
Branch Manager
Reliance Life Insurance Company Limited
C/o. Reliance General Insurance Office, No. 32, 4th
Floor, Central
Mall, Mall Road,
Amritsar, Amritsar, Punjab – 143001
Branch Manager
First Floor, Sharma Complex, Powe House Road, Bhatinda,
Bhatinda , Punjab – 151001
Branch Manager
SCO 141-142, Sector 8C (Ground Floor) Chandigarh, Punjab –
160009.
Branch Manager
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C/o. Reliand Business Centre, 3rd
Floor Suite No. 308/309, SCO 60-
62, Sector 17 C, Chandigarh, Chandigarh, Punjab – 160009
Branch Manager
No. 916-917, Lower Ground Floor, Nimrata Complex, Adjuscent.
WIMPY, G. T. Road, Jalandhar, Jalandhar, Punjab – 144001.
Ph: 0181-3201066
Branch Manager
Company Limited C/o. Reliance general insurance, Suryamall,
Above Ebony, 3rd
floor, Mall road, Ludhiana.
Branch Manager
Cabin No. F3, SCO 131, Chotti Baradari, Near Sandhu Furnishes,
Patiala, Patiala, Punjab – 147001
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PREMIUM PAYING OPTIONS
The life insurance policy owner may designate a specific settlement
option to be paid upon his or her death. If the policy owner does not
choose a specific option , the beneficiary (s) will be given a number
of choices These usually include:
Lump Sum Payment: The death proceeds of a life insurance policy
are paid to the beneficiary (s) for a fixed period.
Fixed Period Payments: The death proceeds of a life insurance
policy are paid to the beneficiary (s) for a fixed period.
Life Income with Installments Certain: The death proceeds of a
life insurance policy are paid to the beneficiary (s) in installment
payments through a certain period. After the certain period,
payments will continue to be made throughout the beneficiary’s
lifetime but the payment may very from the payments during the
certain period.
Interest Payments: The death proceeds of a life insurance policy
remain with the insurance company and the company pays the
beneficiary interest payments.
Fixed Installments: The death proceeds of a life insurance policy
are paid to the beneficiary (s) in fixed installments until the
proceeds and interest on the unpaid balance of the proceeds are
exhausted.
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Single Premium Annuity: The death proceeds of a life insurance
policy are used to purchase a single premium annuity from the
insurance company.
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PRODUCTS OF RELIANCE LIFE INSURACNE
Individual Plans
Reliance Endowment Plan
Reliance Special Endowment Plan
Reliance Cash Flow Plan
Reliance Child Plan
Reliance Term Plan
Reliance Whole Life Plan
Reliance Market Return Plan
Reliance Golden Years Plan
Employee Benefit Plans
Reliance Group Term Assurance Policy
Reliance EDLI Scheme
Reliance Group Gratuity Policy
Reliance Group Superannuation Policy
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Reliance Endowment Plan
Reliance Life Insurance’s Reliance Endowment Plan is the key to all
the financial needs. It is an inexpensive and easy way to protect
you, your family or your business.
In a nutshell this plan will keep you financially prepared for all the
special occasions in you life – your daughter’s wedding, your
child’s university education or even a new office for your business
– by eliminating the burden that a shortage of money creates.
In the event of your untimely death, Reliance Endowment plan will
also assist your loved ones through this difficult time by the
financial support that it provides.
Reliance Endowment Plan also gives you the additional benefit of
participating in the company’s profits, which you will receive at the
end of the policy period.
Specialty of Reliance Endowment Plan
Reliance Endowment Plan is an endowment plan, where you decide
how much you would like to set as your sum assured based on your
current financial position and your expected future expenses. You
also get to choose how long you would like your policy to operate.
Then all you need to do is pay your single premium or regular
premium for the policy term.
You may choose to pay your regular premiums yearly, half-yearly,
quarterly or monthly for the policy term.
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Working of Reliance Endowment Plan
As soon as you pay your single premium, or as long as you continue
to pay your regular premiums, your policy will participate in the
profits of our company. This means that each year, we will declare a
bonus, the amount of which may very from one year to the next. The
cash value of the bonuses which you accumulate over the policy
term will be paid to you along with the basic sum assured when it
falls due.
Eligibility
Any healthy male or female, who has completed the age of 5 years
and is not older than 65 years, can avail of this policy.
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Premium rebates for high sum assure
Premium rebate is allowed on high sum assured policy
Sum Assured Premium Rebate per
1,000 Sum
Assured
Rs. 1,00,000 – Rs. 2,49,000 Rs. 1
Rs. 2,50,000 - Rs. 4,99,000 Rs. 2
Rs. 5,00,000 - Rs. 9,99,000 Rs. 3
Rs. 10,00,000 and above Rs. 4
Additional benefits
Yes, for a marginal additional premium payment, you can opt to
have the Accidental Death & Total and Permanent Disablement
Benefit, the Critical Condition Benefit and / or Term Life Insurance
Benefit.
These riders may be attached to your policy at the beginning or at
any policy anniversary during the term of your policy, subject to
under-writing conditions prevailing at that time. Please note that
these riders are not available if you choose our single premium
plan.
Term Life Insurance Benefit Rider
If you would like to increase the sum assured payable to your family
in the unfortunate event of loss of life, all you have to do is add this
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rider to your policy. This rider will provide an additional sum
assured payable in the event of death before the rider benefit expiry
date. This rider has no maturity benefits and is available only on
policies with a basic sum assured of at least Rs. 1,00,000.
Accidental Death & Total and Permanent Disablement Benefit Rider
If the life assured becomes totally and permanently disabled or dies
due to an accident, then this rider will give you additional
protection. By selecting this rider you will safeguard yourself
against any unexpected expenditure that an accident could cause.
In case of death due to an accident, your family will receive an
additional benefit equal to the Accidental Death & Total and
Permanent Disablement sum assured that you selected.
In case of total and permanent disability of the life assured, you
will receive the Accidental Death & Total and Permanent
Disablement sum assured in 10 equal, annual installments for 10
years. Your future premiums will be waived subject to a maximum
of Rs. 40, 000 per annum. On the maturity date or on the
unfortunate death of the life assured, the remaining unpaid
installments, if any, will be paid in a lump sum. The accident cover
component will cease if the life assured is totally and permanently
disabled.
Critical Conditions Rider
The sudden onset of a major illness may cause worries and
unexpected expenditures. The optional Critical Conditions Rider
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provides financial relief in such cases. The Critical Conditions
Rider benefit is the payment of a lump sum amount chosen by you,
while purchasing the Reliance Endowment Plan as a cover against
major illnesses that can afflict you. Reliance Life Insurance’s
Critical Conditions Rider covers ten major critical conditions –
 Cancer
 Coronary artery by-pass graft surgery
 Heart attack
 Aorta surgery
 Heart valve replacement
 Kidney failure
 Stroke
 Major organ transplant
 Coma
Reliance Special Endowment Plan
This insurance policy is designed for people who wish to combine
savings with extended security. The unique feature of this policy is
that life protection continues for five years after you have stopped
the payment of premium. Payment of sum assured at the end of
period paying term and extension of life cover thereafter for the full
sum assured for a period of 5 years, are characteristics of the
policy.
This plan also participates in the profits.
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Special about this policy
The special benefit under this policy is that it ensures securing a
fund for the future when it is most needed and gives much needed
financial security for the family.
The unique feature of this policy is that the risk cover continues for
the full sum assured for an extended period of 5 years even, after
payment of the full sum assured at the end of the premium paying
term.
This policy also participates in the profits. Bonus is compounded
yearly (i.e. bonus declared in the previous year earns bonus in the
next year) and is payable at the end of the policy term.
Limiting Conditions
The minimum amount for which a Reliance Special Endowment Plan
policy can be taken is Rs. 25, 000. There is also a limitation on the
minimum premium paying term which is 10 years, while the
maximum term is 40 years.
Sum assured after paying the premiums for the full duration of
the policy
The full sum assured under the policy will be paid at the end of the
premium paying term instead of waiting till the maturity of the
policy, that is, a full five years in advance. Again, at the end of the
policy term, the full bonuses will be paid.
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If the death occurs during the term of the policy
If death takes place during the term when the premiums are still
being paid, the full sum assured along with accrued bonus up to the
date of death will be paid immediately.
If death takes place after all the premiums have been paid, an
amount equal to the sum assured under the policy along with
accrued bonuses up to the date of death will be paid immediately.
This will be in addition to the sum assured already paid at the time
of completion of premium paying term.
Reliance Cash Flow Plan
This insurance policy is designed for those who have a recurring
need for reinvestment in business or look for short-term investment
channels. The advantage of the policy is that they need not part with
a sizable amount of money at any one time, but create, through
regular premium payments, a periodic return of lump sums which
become available for reinvestment at higher returns, while
providing simultaneously, substantial life cover.
Alternatively, it can be used to meet any immediate financial crisis
in the family like your son’s college admission, your daughter’s
engagement, renovation of your home or perhaps, a holiday abroad.
The money is payable in installments. The first installment is paid
at the end of the 4th
year and thereafter at the end of every 3rd
year.
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The special benefit under this policy is that it ensures liquidity
through a periodical return of a specified amount of money, once in
every 3 years. It averts the necessity to look elsewhere for loan
facilities.
A unique feature of this policy is that the risk cover continues for
the full sum assured even though the periodical payments are being
made. This policy also participates in the profits and is eligible for
bonus.
Eligibility for this policy
Any healthy male or female, who has completed the age of 15 and is
not older than 63 can avail of this policy,.
Limiting conditions
Yes, the minimum amount for which a Reliance Cash Flow Plan
policy can be taken is Rs. 25,000. There is also a limitation on the
minimum premium paying term which is 7 years, while the
maximum term is 34 years. An important point to note is that since
periodical payments are available, it will not be necessary for you
to raise a loan. Hence, there is no provision for granting a loan
under this policy.
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Sum assured after paying the premiums for the full duration of
the policy
You receive the first payment at the end of the 4 th
year and
subsequent payments at intervals of 3 years. The entire vested bonus
is paid along with the last installment on the date of maturity of
policy.
Anything more……
Yes, there is the usual exemption from tax, under section 88
premiums paid, as per the IT Act, 1961. The money you have
invested earns interest and comes to you in the form of terminal
benefits and Bonus, without the insecurities attached to the ups and
downs of the money market.
All your policy benefits, which you receive, are exempt from tax
under Subsection 10(d) of Section 10 of the IT Act, 1961
Above all, at Reliance Life Insurance, we offer you the best of
courtesy, prompt service and a high level of financial security.
Reliance Child Plan
This insurance policy is designed for people who wish to save
money for a future time when there will be recurring need for
substantial amounts of money. This is especially true when it comes
to paying large sums of money for higher education as and when
your son or daughter is studying to become an Engineer, a Doctor or
specialize in some other field, or is perhaps planning to go abroad.
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This money is payable in equal installments over the last 4 years of
the policy term.
A unique feature of this policy is that the risk cover continues for
the full sum assured even though the periodical payments are being
made. This policy also participates in the profits for the full term of
the policy.
Eligibility for this policy
Any healthy male or female with adequate income, who has
completed the age of 20 and is not older than 60.
What else
There is the usual exemption from tax, for premiums paid, as per the
IT Act. The money you have invested earns interest and comes to
you in the from of terminal benefits and Bonus, without the
insecurities attached to the ups and downs of the money market.
Further, at Reliance Life Insurance, we offer you the best of
courtesy, prompt service and a high level of financial security.
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OBJECTIVES OF THE STUDY
Following are the main objectives of the study are –
a) To know the customers awareness regarding the Life
insurance.
b) To know the Customer awareness regarding the various life
Insurance Companies in the Insurance Sector.
c) To know the Customer preference towards the private or
public Insurance Sector. People comes to know about Reliance
Life Insurance Company through Print Media.
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RESEARCH METHODOLOGY
Introduction and Meaning
Research is a careful investigation or inquiry especially through
search for new facts in branch of knowledge: market research
specifies the information. Required to address these issues: designs
the method for collecting information: manage and implements the
data collection process analyses the results and communicates the
finding and the implications. Research problem is the one which
requires a researcher to find out the best solution for the given
problem that is to find out the course of action, the action the
objectives can be obtained optimally in the context of a given
environment.
Techniques
The problem definition can be said to be the quite essential part of
the research process; as it determine precisely. What the managerial
problem is and the type of information that the research can
generate to help the problem before conducting the fieldwork. It is
better to decide upon the method/technique of data collection.
Generally, there are two technique of data collection are:
1. Census Technique 2. Sample Technique or Convenient
sampling
The census method is costlier and more time Consuming as
Compared to sampling method but the result is near
representatives.
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RESEARCH METHODS
Research is literally everywhere, and knowing about research
methods will help us understand how we came to know what we
accept as fact. We all know that 4 out of 5 dentists recommend
sugarless gum for their patients who chew gum, and that taste-tests
show that Burger King’s Croissanwich is preferred 2 to lover
McDonald’s Egg McMuffin. We also know that proper nutrition is
important for children’s development, and that heroin is addictive.
The question is: How did we come to know these things ?
We learned about these things through research. Someone
somewhere did a study and found each of the above findings. While
most of us accept the value of good nutrition for children and the
dangers of heroin, at least some of us (especially
Certs Sugarless Mint and Egg McMuffin fans) would quibble with
the other two findings. Just how did the researchers do the studies
that found those numbers (by the way, get in the habit of
questioning how researchers find their, even those you agree with)?
Who knows, maybe they did the Croissanwich study at Burger King
one morning and asked people which sandwich they preferred. The
fact that the participants had already gone to Burger King for
breakfast meant that they had at least some tolerance for
Croisanwiches. What about the dentists ?
What percentage of them “recommended” candies of any kind ?
Which dentists participated in the study and what exactly do they
prefer about sugarless gum over sugarless mints ?
When we ask questions like these, we are questioning the methods
the researchers employed in their studies. Research methods are a
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variety of techniques that people use when studying a given
phenomenon. They are planned, scientific, and value-neutral., What
that means is that good research methods don’t “just happen.”
Instead, they are deliberately employed in a way that is designed to
maximize the accuracy of the results. Assume, for example, that you
want to do a survey to Asses students’ level of satisfaction with the
parking situation on your campus. Because no one wants to take
time to be interviewed, you are forced to start interviewing the
people sitting in their cars waiting for parking places. Since they’re
bored anyway and have nothing better to do, they agree to answer
your questions. Lo and behold, you find that all 50 people you talk
to are VERY unhappy about the lack of parking spaces on campus.
A better way for you to do your survey would be to randomly select
names from a list of all enrolled students (there will be more on
random samples in a later section). You could ask them what they
think about the parking situation. Because your sample was
randomly selected, you would expect their answers to reflect what
students as a whole felt about the parking situation. The use of
random samples is just one way that researchers try to ensure that
the answers they find are accurate.
Common errors made in research
When we do research, we can make many errors. Some of them
occur often enough to have names. Here are nine common ones
• Selective observation
• Inaccurate observation
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Selective observation
Selective observation happens when our attention is drawn to
answers or observations that confirm our pre-existing beliefs. It’s a
lot like selective hearing (i.e., when people, especially children,
hear only the things they want to hear). For example, if I
hypothesize that blacks are more likely than whites to speed, I am
probably likely to not the blanks who are speeding while paying less
attention to speeding whites and blacks who are not speeding. A
better approach to this study would be to write down the speed of
every car going by and the race of the driver. I could then make
tables and compare the percentages of speeding drivers of each race.
Chances are that I’ll find that race isn’t related to one’s likelihood
of speeding. A few ways you can try to avoid selective observation
in your research are to do a literature
Review (so you’ll know which relationship other researchers
found), decide your research approach beforehand (e.g., when I
decided above to write down the speed of every car rather than just
depend on my memory), take thorough notes (to prevent biases from
affecting you memory), watch for “disconfirm Tory” information
(such as speeding whites and non-speeding blacks), and consider
both “sides” of your study (i.e., try to argue against you hypothesis;
if you can’t poke holes in your theory then you’re more likely to be
on the mark). You could also use time or area sampling. Time or
area sampling means that you focus your attention on a smaller part
of the action for a given amount of time. Instead of trying to watch
the entire crowd at a basketball game, for example, I could look at
the rightmost four columns of people for ten minutes, then the next
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four columns for ten minutes, and so on. By doing this, I would be
able to get a picture of what the shole crowd was doing. And, most
importantly for selective observation, I would be forced to look at
all parts of the crowd at some point time, rather than just those who
were doing what I expected them to do.
Inaccurate observation
Inaccurate observation happens when we “misremember” or
misreport data. How many times have you missed a question on an
exam because you incorrectly copied down something from lecture?
That’s one form of inaccurate observation. You thought you
correctly observed the information when you really hadn’t done so.
Have you ever misunderstood what someone said, and thought s/he
said something that rhymed with his/her actual utterances? That’s
another form of inaccurate observation. Your brain somehow
miscoded the information at the processing stage. Inability to
remember what you saw is another form. Your brain somehow
jumbles or changes the original memory during the recall stage.
Observations before actually doing it for real. Practice will make it
easier to quickly and accurately record or summarize a given
situation, and will show you the parts of the task about which you
are less clear.
Methodology Adopted
The methodology adopted by me studding the objectives was
surveying the working segment in the city of Distt. Kapurthala So
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keeping in view the nature of requirement of study to collect all the
relevant information regarding the privatization of the insurance
sector direct personal interview’ method with structured
questionnaire method was found to be the best for the collection of
primary data. For this a set of questionnaire was designed for the
working segment. The survey was conducted. Although this method
was difficult and required the researcher to visit and meet the
respondents at different places and at different times, but had the
advantage of higher accuracy.
Secondary data has been collected through the various magazines,
books and by surfing on Internet. And the guide in the organization
was consulted at many times.
35

DATA ANALYSIS
Keeping in mind the objectives of the study, the survey was being
done and following interpretation were being drawn.
1. Have you heard about Privatization in Life Insurance
Sector ?
Objective :- To know the awareness of Privatization in insurance
sector, this question is asked. As there are a number of private
insurance companies, which provide a variety of products and
services as compared to, nationalized insurance companies.
Awareness of Privatization in Insurance sector
Interpretation
The evident from above finding showed that out of 100 respondents,
78 respondents are aware of private companies present in the
insurance sector and rest of the respondents i.e., 22 is not aware of
private insurance companies.
36

2. Have you heard about Private Insurance Company
Reliance life insurance?
Objective :- To know the awareness of customer regarding.
Reliance life insurance.
4.2 Awareness of Customer Regarding. Reliance life insurance.
Interpretation
The above figure depicts that out of 100 respondents, 75
respondents are aware Reliance life insurance and rests of the
respondent’s i.e., 15 are not aware of Reliance life insurance.
37

3. From where did you come to know about Reliance Life
Insurance ?
Objective :- To know the media, which helps in promotion of
Reliance Life Insurance. As we know in the present era media
plays an important role in the promotion of companies.
4.3 Role of Media in the Promotion of Reliance Life Insurance
Interpretation
According to above data Electronic Media plays a vital role in
the promotion of Reliance Life Insurance. As 56 of the
respondents are aware through Electronic Media, 20 through
Agents, 10 through Print Media and 14 through other like friends
and relatives.
38

4. Do you think services provided by Private Sector will be
better than Public Sector companies ?
Objective :- To know the priority given by customer to the
private sector over public sector. As we know that more and more
customers are moving towards private sector because of better
facilities and services provided by private sector.
Priority of Private sector over the public sector.
Interpretation
The above figure depicts that 68 of the total respondents agree that
private sector was providing better services as compared to the
public sector.
39

5. Do you have Insurance Policy ?
Objective :- To know the number of persons who presently have
life insurance policy. As most of the persons are very muh
concerned about their family and life so cover the risk by an
insurance policy.
4.5 No. of persons having insurance policy
Interpretation
The above evident shows that as most of 62 of the total respondents
have insurance policy to cover the risk of the life and tax. This
shows that most peoples are interested in buying insurance policy.
40

6. With which company do you have Insurance Policy ?
Objective :- To known the number of customers dealing with
different insurance companies. As the there are a number of
companies providing different products.
4.6 No. of customers dealing with different insurance
companies.
Interpretation
The above evident shows that out of the total respondents 62
dealing with LIC, which is a public sector insurance company, 18
respondents were dealing with ICICI Pru and HDFC Std. Life
respectively, 03 respondents are dealing with Reliance Insurance
company.
41

7. What according to you are the motives of buying Life
Insurance Policy?
Objective :- To know the motive of buying insurance policy.
There is always a reason to buy life insurance policy as it
protects the insurer from different aspects even after death.
Interpretation
As the above figure showed that most of the respondents buy
insurance policy for the purpose of saving tax, 42 respondents are in
favour of this, 22 respondents gave preference to secure investment,
30 and 06 are with life cover and liquidity respectively.
42

8. Do you have any plan to buy Insurance Policy in near
future ?
Objective :- To know the customer preference to buy insurance
policy in near future.
4.8 Preference to buy insurance policy in future
Interpretation
As the above figure depicts that mostly respondents are interested
to buy insurance policy in the future. 40 of the total respondents
are in favour of this and rest 42 respondents want any insurance.
9. If you have any plan to buy an Insurance Policy,
43

Which policy would you prefect?
Objective: - To knows the customer preference regarding various
insurance plans provided by the insurance companies.
4.9 Preference regarding various insurance plans
Interpretation
As the above evident shows that as most as 32 of the total
respondents prefer to invest in endowment plan, 26 prefer to have
child plan, 24 prefer to Spl. Endowment Plan and rest 18 cash
flow plan.
44

10. If you are not taking any insurance policy, please tell us
the reasons why?
Objective: - To know the reasons not to buy any insurance plan
by the respondents.
4.10 Reasons not to buy any insurance plan
Interpretation
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.
45

FINDINGS OF THE STUDY
a) Life insurance has becomes generic now. People believe in
Life Insurance Company only and therefore, everybody
wants to go in for a policy with LIC. It will take a lot of
time, to private companies to win the confidence of the
people.
b) As far as future decision making about the policy is
concerned most of the policy would go in for saving plan.
c) It is a service class, which has maximum number of LIC and
private sector policies. As far as future decision-making is
concerned most of the service class prefers to protection
plan
d) LIC is the oldest player in the Insurance market, so people
are more aware of i.e., as compared to new players.
e) This clearly comes out of the survey conducted that most of
the people comes to know about Reliance life Insurance
company through print media.
f) It has clearly comes out that most of the people like to go in
for a policy, which gives them tax.
46

LIMITATIONS OF STUDY
All efforts have been made to make study a complete and
comprehensive survey of the customer perception. Although all
efforts have been made so that the study present a true picture of the
customers’ perception. The limitations of the study are :-
1) Time Factor :-
Time available was very short.
2) Fake Information’s :-
The information’s provided by the customers may be fake,
for example customer of Reliance Life Insurance may be
shown interest in ICICI Prudential.
3) Limited Survey :-
As the project was limited to Ludhiana only, therefore
overall picture can’t be presented.
4) Randomly Survey :-
The customers of LIC, ICICI and RELIANCE LIFE
INSURANCE were randomly selected without any
constrains.
5) Area :-
Area of study chosen was not large.
47

CONCLUSION
Reliance Life insurance is one of the largest life insurance
Companies in the world with Insurance and Investment funds
exceeding Rs. 11,00,000 Crore Reliance Life Insurance is the
challenge against the other Insurance Companies in the 21 st
century
with the emerging hope and aspiration. Reliance Life insurance is a
bless to the maintain which has awakened many new hopes and
aspiration for human kind a vision of a new, just equitable and fair
global order governed by a time tested value system 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 for the 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 LIC as well as other private companies and
concluded that most of the people proffered to deal with
nationalization insurance companies.
About the awareness regarding the products offered regarding
by Reliance Life insurance, I conduced that most of the people are
but they still needs more publicity among the citizens of the city.
48

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.
49

QUESTIONNAIRE
1. Have you heard about privatization in Life Insurance sector ?
a) Yes b) No
2. Have you heard about Private Insurance Company Reliance
Life Insurance ?
a) Yes b) No
3. From where did you come to know about Reliance Life
Insurance ?
a) Electronic Media b) Print Media
c) Agents d) Others
4. Do you think services provided by Private sector will be better
than Public
Sector companies ?
a) Yes b) No
If yes, Remarks___________________________________________
If no, Why_______________________________________________
5. Do you have Insurance Policy ?
a) Yes b) No
6. With which company do you have Insurance Policy ?
50

7. What according to you are motives of buying Life Insurance
Policy ?
a) Tax Saving b) Life cover
c) Liquidity d) Secure Investment
8. Do you have any plan to buy Insurance Policy in near future ?
a) Yes b) No
9. If you have any plan to buy an Insurance Policy, which Policy
would you prefer ?
a) Saving Plan b) Protection Plan
c) Pension Plan d) Children’s Plan
10. If you are not taking any Insurance Policy, please tell us the
reason’s why ?
a) We could not afford
b) We don’t see any benefit with the system
c) We don’t want insurance
d) We don’t understand how system works
BACKGROUND DATA
1. Name__________________________
2. Sex : a) Male b) Female
3. Age : a) Below 18 b) 18-35
c) 35-50 d) Above 50
4. Education :
4. Education :
a) Under Graduate b) Profession
c) Business d) Others
5. Occupation:
a) Service b) Profession
c) Business d) Others
51

6. Income:
a) Less than Rs. 50,000
b) Rs. 50,000 to Rs. 1,50,000
c) Rs. 1,50,000 to 3,00,000
d) Rs. 3,00,000 & above
7. Address________________________ __________________
_________________________________________
8. Phone No. ____________________________________
52

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