A PROJECT REPORT ON PRODUCT PROMOTION AND RECRUITMENT

SUBMITTED TO
MAEERs MIT SCHOOL OF LIGHTING AND MANAGEMENT STUDIES

BY ARADHANA PANDEY L20704 1st BATCH IN PARTIAL FULFILLMENT OF POST GRADUATE PROGRAM IN LIGHTING TECHNOLOGY AND MANAGEMENT STUDIES 2007-2009
MAEERs MIT SCHOOL OF LIGHTING AND MANAGEMENT STUDIES (MITSOT), PUNE

TABLE OF CONTENT
Chapter No. Title Declaration from student Certificate from Company Certificate from Institute Acknowledgement List of tables List of Graphs Executive Summary Page No. i ii iii iv v vi vii 1-24 1-3 4-5 6-12 13-19 15 15 18 20-23 24 25-29 25 26 26 26 26 26 27 28 28 28 29 30-39 40

I
1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.4.3 1.5 1.6 II 2.1 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.4 2.4.1 2.4.2 2.5 III IV

Introduction History of Insurance IRDA Market Profile Company Profile Vision and Mission Goal Achievements Product Profile Objective and Scope of the study Research Methodology Research Design Sampling Methodology Sampling Technique Sampling Unit Sample Size Sample Area Instrument for data collection Data collection sources Primary Data Secondary Data Limitation Data analysis and Interpretation Findings

V VI VII A

Conclusion Recommendations Bibliography Annexure Questionnaire

41 42 43 44-48

DECLARATION

I, Aradhana Pandey, hereby declare that this project report is the record of authentic work carried out by me during the period from 21-07-08 to 05-09-08 and has not been submitted earlier to any University or Institute for the award of any degree or diploma etc.

Aradhana Pandey Date:

CERTIFICATE FROM COMPANY

CERTIFICATE FROM INSTITUTE

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. Exchange of ideas generates a new object to work in a better way. Apart from the ability, labor and time devotion, guidance and cooperation are the two pillars for the success of any project. Whenever a person is helped or cooperated by others his heart is bound to pay gratitude to them. In the chain I am immensely thankful and convey my sincere gratitude to my mentor Mr. Mukesh Gupta for his enlightening guidance, constant inspiration and keen interest shown on me during the training. I deliberate my profound sense of gratitude to him and all the staff members of Reliance Life Insurance Co. Ltd, for cooperating me at every stage of the project. I am also grateful to my project guide Prof. Suhrud Neurgaonkar for her time to time guidance in completing the project. I am also thankful to all of my co-trainees, friends and my family who help me regularly throughout the project. They acted as a continuous source of inspiration and motivated me throughout the duration of the project helping me a lot in completing this project.

LIST OF TABLES Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Table Name

Board of Directors Product(Protection Plan) Product(Saving And Investment Plan) Product(Retirement Plan) Product(Child Plan) Preference of Insurance Companies Benefits of insurance perceived by respondents Features of policy that attracted respondents People perception about insurance Number of respondents paying tax Respondents investments for tax saving Respondents perception about best form of investment for secure future People opinion about Indian Insurance Companies What people look for in an insurance company People planning for new investment People interested in insurance despite service provider being far from the city

Page No.

LIST OF GRAPHS

Sr. No. 1 2 3 4 5 6 7 8 9 10 11

Graph Name
Preference of Insurance Companies Benefits of insurance perceived by respondents Features of policy that attracted respondents People perception about insurance Number of respondents paying tax Respondents investments for tax saving Respondents perception about best form of investment for secure future People opinion about Indian Insurance Companies What people look for in an insurance company People planning for new investment People interested in insurance despite service provider being far from the city

Page No.

EXECUTIVE SUMMARY
The PGP course offered by the MITSOL has its own unique syllabus which requires its PGP students to undertake an internship with any of the leading business houses after the third trimester. The purpose of this internship is to enable the students to appreciate and understand the nuances of the practical world vis-a-vis the theoretical input administered during regular academic sessions. This helps in creating Managers who are equipped with the experience of linking the theoretical inputs with those of practical exposure and come out with creative solutions / ideas in enhancing the business. Reliance Life Insurance Company is amongst the first private life insurance company in Insurance sector. Very soon it expanded its business through world class insurance advisors and the company today is Indias no. 1 private life insurance company and overall second biggest company after LIC in terms of no. of policies and services provided by the company. It is part of Reliance Capital, a well known premier financial powerhouse of India. Company ultimately wants toUnderstand the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to faster growth and learning for its employees and above all, building transparency in all its dealings. My profile in the company was to recruit advisors to build a team and to generate more and more clients for the company. Technique used is random sampling. On its basis certain recommendations have been provided that can be helpful to Reliance Life Insurance in its near future.

Chapter-1 INTRODUCTION 1.1 A brief history of the Insurance sector

The business of life insurance in India started in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance business. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Trion Insurances company ltd, the first general insurance company established in the year 1850 Calcutta by the By the British. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968: the Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: the General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect form 1st January 1973.

Life insurance:
(Life Assurance in British English) is a type of insurance. As in all insurance, the insured transfers a risk to the insurer, receiving a policy and paying a premium in exchange. The risk assumed by the insurer is the risk of death of the insured.

How life insurance works

There are three parties in a life insurance transaction; the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. For example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. Another important person involved is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. The beneficiary is not a party to the policy, but is designated by the owner, who may change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value.

The life insurance policy

The policy, like all insurance policies, is a legal contract specifying the terms and conditions of the risk assumed. Special provisions apply, including a suicide clause wherein the policy becomes null if the insured commits suicide within a specified time for the policy date (usually two years). Any misrepresentation by the owner or insured on the application is also grounds for

nullification. Most contracts have a contestability period, also usually a two-year period; if the insured dies within this period, the insurer has a legal right to contest the claim and request additional information before deciding to either pay or deny the claim for proceeds. The face amount of the policy is normally the amount paid when the policy matures, although policies can provide for greater or lesser amounts. The policy matures when the insured dies or reaches a specified age. The most common reason to buy a life insurance policy is to protect the financial interests of the owner of the policy in the event of the insured's demise. The insurance proceeds would pay for funeral and other death costs or be invested to provide income replacing the deceased's wages. Other reasons include estate planning and retirement. Because the insured's death will be to the financial betterment of the policy owner, the owner, by law, must have an insurable interest (i.e., a legitimate reason for insuring another persons life.)The insurer (i.e., life insurance company) prices the policies with an intent to recover claims to be paid and administrative costs, and to make a profit. The cost of insurance is determined using mortality tables calculated by actuaries.

1.2

THE

INSURANCE

REGULATORY

AND

DEVELOPMENT

AUTHORITY (IRDA) Formation of the IRDA:

In 1956, life insurance business was nationalized and Life Insurance Corporation of India was formed on 1st September 1956. The government took over the business of 245 companies operating in India, who were transacting life insurance business at that time. Thereafter LIC got the exclusive privilege to operate in the life insurance business. Thereafter as the markets began to grow more mature, especially the banks and the money markets, the government again decided to open up the insurance sector to private players, this time allowing even foreign insurance companies. But before this there had to be in place a regulatory authority that would be independent and which would have supreme governing rights on the different companies. Thus in the year 1999, the Insurance Regulatory and Development Authority were formed having the following scope: o permit private companies to enter the insurance market T To protect the interests of the holders of insurance policies To regulate, promote and ensure orderly growth of insurance industry.

Functions of the IRDA:

1. To issue certificate of registration, renew, withdraw, suspend or cancel such registration 2. To protect the interests of the policyholders/insured 3. To specify requisite qualifications, code of conduct, and training for insurance intermediaries and life advisors 4. To promote efficiency in the conduct of insurance business

5. To promote and regulate professional organizations connected with the insurance and reinsurance business 6. To undertake inspection, conduct enquiries and investigations including audit of insurers and insurance intermediaries 7. To control and regulate the rates, terms and conditions to be offered by the insurer regarding general insurance business not so controlled by Tariff Advisory Committee 8 .To regulate investment of funds by insurance companies 9. To adjudicate disputes between insurers and intermediaries of insurance 10. To specify the percentage of life insurance business and general insurance business to be undertaken in the rural or social sector

1.3 MARKET PROFILE

Insurance is a RS.400 billion business in India and yet its spread in the country is relatively thin insurance as a concept has not been able to make headway in India. Until recently L.I.C. enjoyed a monopoly in life insurance business. There is little option before the consumer to decide the insurer. A successful passage of I.R.D.A bill had cleared the way of private sector operators in collaboration with there overseas partner in 2000. It is more professional and focused approach. Moreover the foreign players would bring sophisticated actuarial techniques with them, which would facilitate the insurer to effectively price the product. In this new millennium all these activities would play a crucial roll in over all development and maturity of insurance industry.

Insurance business is growing in India. Even before the advent of the insurance development regulatory authority and privatization on the insurance sector, insurance was a lucrative business in India as was elsewhere life was full of risk and here was somebody who was willing to cover some of it for nominal consideration. Business boomed, especially after nationalization on the insurance sector in India after independence. But it is roses way for these vital sectors. The insurance policy sales executives are really a welcome visitor to any house hold. In fact many people consider him as the hard bringer of impending death, a gentle reminder to ultimate realty waiting for each. One of us but ironically executives many working person would not have head the dual pleasure of having his life covered and that the end of the cover period, getting back a tidy sum as saving tax exemption and of course peace of mind. L.I.C. & Reliance Life insurance has now reached a stage where people have started looking down upon you if you are not adequately insured. Today insurance is playing a role more than only covering a risk of life the education of children and medical benefit of life to the women. So the insurance and specially the life insurance corporation & other insurance companies are playing more a social role than only covering risk.

INSURANCE MARKET
INSURANCE IS
A

RS. 400 BILLION BUSINESS 15%-20%

IN

INDIA, AND TOGETHER WITH BANKING SERVICES

OF GAP AND HAS

ADDS ABOUT 7% TO INDIAS GAP. GROSS PREMIUM COLLECTION IS ABOUT 2%

BEEN GROWING BY PER ANNUM .

INDIA

ALSO HAS THE HIGHEST NUMBER OF LIFE

INSURANCE POLICIES IN FORCE IN THE WORLD , AND TOTAL INVESTIBLE FUNDS WITH

LIC

ARE ALMOST

8%

OF

GDP .YET

MORE THAN THREE -FOURTH OF

INDIAS

INSURABLE POPULATION HAS NO LIFE

INSURANCE OR PENSION COVER .HEALTH INSURANCE OF ANY KIND IS NEGLIGIBLE AND OTHER FORMS OF NON - LIFE INSURANCE ARE MUCH BELOW INTERNATIONAL STANDARD .

INDIAN SCENARIO:

UNFORTUNATELY

THE CONCEPT OF INSURANCE IS NOT POPULAR IN OUR COUNTRY .

AS

PER THE

CONCEPT OF INSURANCE IS NOT POPULAR IN OUR COUNTRY .AS PER THE LATEST ESTIMATE ,THE TOTAL PREMIUM INCOME GENERATED MANAGER BY LIFE AND GENERAL INSURANCE IN

INDIA

IS ESTIMATED AROUND

1.95%

OF

GDP .HOWEVER INDIAS

IN

SHARE OF WORLD INSURANCE MARKET HAS SHOWN AN TO

INCREASE OF

10%FROM 0.31%

2004-2005

0.34%IN 2005-2006 INDIAS 11% 3.1%

MARKET SHARE IN

THE LIFE INSURANCE BUSINESS SHOWED A REAL GROWTH OF GLOBAL AVERAGE OF

THEREBY OUT PERFORMING THE AGAINST GLOBAL AVERAGE OF

7.7%NON

LIFE BUSINESS GREW BY

0.20% .IN INDIA

COMPARED TO

INSURANCE SPENDING PER CAPITA WAS AMONG THE LOWEST IN THE WORLD AT IN THE PREVIOUS YEAR

$7.6

$7

. AMONG

THE EMERGING ECONOMY ,

INDIA

IS ONE OF THE

LEAST INSURED COUNTRIES BUT THE POTENTIAL FOR FURTHER GROWTH IS PHENOMENAL , AS A SIGNIFICANT PORTION OF ITS POPULATION IS IN SERVICE AND THE LIFE EXPECTANCY HAS ALSO INCREASED OVER THE YEAR .

NEED FOR INSURANCE:MODERN

LIFE INSURANCE CENTER TO MULTIPLE NEEDS FOR INSURANCE , WHICH CAN BE BROADLY

CLASSIFIED AS UNDER :

CASH AND INCOME NEEDS ON AN IMMEDIATELY FOLLOWING DEATH. FAMILY INCOME NEEDS. INCOME NEEDS OF A WIDOW ON THE DEATH OF HER HUSBAND. CASH AND INCOME NEEDS OF A HUSBAND ON THE DEATH OF HIS WIFE. RETIREMENT INCOME NEEDS EDUCATION
NEEDS .

WHAT IS A CONTRACT OF INSURANCE?

CONTRACT OF INSURANCE IS A CONTRACT OF UTMOST GOOD FAITH, TECHNICALLY KNOWN AS

UBERRIMA FIDES .

THE

DOCTRINE OF DISCLOSING ALL MATERIAL FACT IS EMBODIED IN THIS IMPORTANT

PRINCIPLE THAT APPLY TO ALL FORMS OF INSURANCE . THE CONTRACT CORPORATION

THE

PROPOSER

, WHO

IS ONE OF THE PARTIES TO

,IS

PRESUMED TO HAVE MEANS OF KNOWLEDGE

THAT ARE NOT ACCESSIBLE TO THE BOUND

WHO IS THE ANOTHER PARTY TO THE CONTRACT THEREFORE THE PROPOSES IS

TO TELL THE INSURER EVERYTHING AFFECTING THE JUDGMENT OF THE INSURER .IN ALL THE CONTRACT OF INSURANCE MERELY THE PROPOSES IS BOUND TO MAKE FULL DISCLOSER WHO THINKS MATERIAL MISREPRESENTATION NON TO THE ACCEPTANCE OF THE RISK OF ALL MATERIAL FACT AND NOT

.THOSE

DISCLOSURE

OR FRAUD

IN ANY THE

DOCUMENT

LEADING

AUTOMATICALLY

DISCHARGES

CORPORATION FROM ALL LIABILITIES INSURANCE ACT

UNDER THE CONTRACT .

ALTHOUGH

SECTION

45

OF THE OF

1938

PROVIDES THAT NO POLICIES CAN BE CALLED IN QUESTION AFTER A PERIOD

TWO YEARS FROM THE DATES OF ITS ISSUE ON THE GROUND THAT ANY STATEMENT IN PROPOSAL OR A RELATED DOCUMENT WAS FALSE ARE INACCURATE , THIS PROVISION IS NOT APPLICABLE IF THE CORPORATION CAN PROVE THAT MISS REPRESENTATION OR NON - DISCLOSURE WAS

ON

A MATERIAL FACT AND WAS FRAUDULENTLY MADE AND THAT THE POLICY HOLDER KNEW AT THE

TIME THAT STATEMENT HE MADE WAS FALSE.

IT

IS THEREFORE IF THE INTEREST OF THE POLICYHOLDER

TO DISCLOSE ALL THE MATERIAL FACT TO THE CORPORATION TO AVOID ANY COMPLICATION WHEN THE CLAIM ARISES.

IT

IS EQUALLY OBLIGATORY ON AN AGENT TO SEE THAT THE ASSURED DOESN T OBTAIN

THE CONTRACT BY MEANS OF UNTRUE REPRESENTATION . IT IS THE DUTY THAT THAT AGENT OWES BOTH TO HIS CLIENT AND TO THE CORPORATION .

CLASSIFICATION OF INSURANCE BUSINESS: THE INSURANCE IS BROADLY CLASSIFIED AS: 1) LIFE INSURANCE BUSINESS. 2) NON LIFE INSURANCE BUSINESS

LIFE INSURANCE BUSINESS:

IT
IS THE BUSINESS OF AFFECTING CONTRACTS OF INSURANCE UPON HUMAN LIFE INCLUDING ANY

CONTRACT WHEREBY THE PAYMENT OF MONEY IS ASSURED ON DEATH OR ON THE HAPPENING OF ANY CONTINGENCY TO THE DEPENDENT OF PREMIUM FOR A TERM AND SHALL BE DEEMED TO INCLUDE :

THE

GRANTING DISABILITY AND DOUBLE N TRIPLE

INDEMNITY ACCIDENT BENEFIT , IF SO

PROVIDED IN THE CONTRACT OF INSURANCE .

THE GRANTING OF ANNUITIES OF HUMAN LIFE. THE

GRANTING OF SUPER ANNUATION ALLOWANCE AND ANNUITIES PAYABLE OUT OF ANY FUND

APPLICABLE SOLELY TO THE RELIEF AND MAINTENANCE OF THE PERSON ENGAGED OR WHO HAVE BEEN ENGAGED IN ANY PARTICULAR PROFESSION , TRADE OR EMPLOYMENT OR OF THE

DEPENDENTS OF SUCH PERSONS .

NON LIFE INSURANCE BUSINESS:

CONVENTIONAL CLASSIFICATION OF INSURANCE BUSINESS:

FIRE INSURANCE MARINE INSURANCE MISCELLANEOUS

INSURANCE (ACCIDENT )

MODERN CLASSIFICATION OF GENERAL INSURANCE:

INSURANCE OF PERSON INSURANCE OF PROPERTY INSURANCE OF INTEREST

AN

ACT TO PROVIDE FOR ESTABLISHMENT OF AN AUTHORITY TO PROTECT THE INTEREST OF POLICY

HOLDER , TO REGULATE TO PROMOTE AND ENSURE ORDERLY GROWTH OF INSURANCE INDUSTRY AND FOR THE MATTER CONNECTED THEREWITH FOR INCIDENTAL THERE TO AND FURTHER TO AMEND THE LIFE INSURANCE CORPORATION ACT , BUSINESS ACT

1956

AND THE INSURANCE ACT ,

1938

AND GENERAL INSURANCE

1972.
MUCH MORE WIDELY AND IN PARTICULAR TO THE RURAL AREAS AND TO

SPREAD

LIFE INSURANCE

THE SOCIALLY PERSON

AND ECONOMICALLY

BACKWARD CLASSES WITH A VIEW TO REACHING ALL INSURABLE ADEQUATE FINANCIAL COVER AGAINST DEATH AT

IN THE COUNTRY AND PROVIDING

REASONABLE COST .

MAXIMIZE

MOBILIZATION OF PEOPLE S SAVING BY MAKING INSURANCE LINKED SAVING ADEQUATELY

ATTRACTIVE .

BEAR

IN MIND , IN THE INVESTMENT OF THE FUND ,THE PRIMARY OBLIGATION TO ITS POLICY HOLDER ,

WHOSE MONEY ITS HOLD IN TRUST ,WITHOUT LOOSING SIGHT OF THE INTEREST OF THE COMMUNITY AS WHOLE , THE FUNDS TO BE DEPLOYED TO THE BEST ADVANTAGE OF THE INVESTORS AS WELL AS TO COMMUNITY AS A WHOLE , KEEPING IN VIEW NATIONAL RETURN . PRIORITIES AND OBLIGATIONS OF ATTRACTIVE

CONDUCT

BUSINESS WITH UTMOST ECONOMY AND WITH THE FULL OF REALIZATION THAT THE MONEY

BELONGS TO THE POLICY HOLDER .

ACT

AS TRUSTEES OF THE INSURED PUBLIC IN THEIR INDIVIDUAL AND COLLECTIVE CAPACITIES.

MEET

THE VARIOUS LIFE INSURANCE NEEDS OF THE COMMUNITY WOULD ARISE IN THE CHANGING SOCIAL AND ECONOMIC ENVIRONMENT .

INVOLVE

ALL PEOPLE WORKING IN THE CORPORATION TO THE BEST THEIR

CAPABILITY IN FURTHERING THE INTEREST OF THE INSURED PUBLIC BY PROVIDING EFFICIENT SERVICE WITH COURTESY .

Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: The market contained 154 Indian and 16 foreign life insurance companies.

General insurance:The General Insurance industry in India dates back to the Industrial Revolution and the subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought General Insurance to India, and a similar path was followed in the development of this industry. A number of private companies were in existence for years and years until, in 1971, the Indian Government decided that the public interest would be served by nationalizing the industry, merging all the 107 companies into four companies, depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras

respectively. The General Insurance Corporation (GIC) was set up in 1972 as a holding company, having these four companies as its subsidiaries.

Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

1.4 COMPANY PROFILE Founder of Reliance

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. 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, and 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. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets.Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become

Indias largest private sector enterprise.Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families.

Overview
The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector business houses on all major financial parameters, with a market capitalization of Rs.325,000 crores (US$ 81 billion), net assets in excess of Rs.115,000 crores (US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion) Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 4,500 towns and 300,000 villages in India, and 5 continents across the world.

The interests of the Group range from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.

1.4.1 VISION AND MISSION Vision

To build a global enterprise for all our stakeholders and a great future for our country. To give millions of young Indians the power to shape their destiny. The means to realize their full potential. Empowering everyone live their dreams.

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

1.4.2 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

Values

SHAREHOLDER INTEREST PEOPLE CARE CONSUMER FOCUS EXCELLENCE IN EXECUTION TEAM WORK PROACTIVE INNOVATION LEADERSHIP BY EMPOWERMENT SOCIAL RESPONSIBILITY RESPECT FOR COMPETITION

SHAREHOLDER INTEREST
We value the trust of shareholders, and keep their interests paramount in every business decision we make, every choice we exercise

PEOPLE CARE
We possess no greater asset than the quality of our human capital and no greater priority than the retention, growth and well-being of our vast pool of human talent

CONSUMER FOCUS
We rethink every business process, product and service from the standpoint of the consumer so as to exceed expectations at every touch point

EXCELLENCE IN EXECUTION
We believe in excellence of execution in large, complex projects as much as small everyday tasks. If something is worth doing, it is worth doing well.

TEAM WORK
The whole is greater than the sum of its parts; in our rapidly-changing knowledge economy, organizations can prosper only by mobilizing diverse competencies, skill sets and expertise; by imbibing the spirit of thinking together -- integration is the rule, escalation is an exception

PROACTIVE INNOVATION
We nurture innovation by breaking silos, encouraging cross-fertilization of ideas & flexibility of roles and functions. We create an environment of accountability, ownership and problem-solving based on participative work ethic and leading-edge research

LEADERSHIP BY EMPOWERMENT
We believe leadership in the new economy is about consensus building, about giving up control; about enabling and empowering people down the line to take decisions in their areas of operation and competence.

SOCIAL RESPONSIBILITY
We believe that organizations, like individuals, depend on the support of the community for their survival and sustenance, and must repay this generosity in the best way they can

RESPECT FOR COMPETITION

We respect competition because theres more than one way of doing things right. We can learn as much from the success of others as from our own failures

1.4.3 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 Mar08.

A Company that has crossed 1.7 Million policies in just 2 years of operation, post take over of AMP Sanmar business.

Initiated Express Life an 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 Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Name Gautam Doshi Satya Pal Talwar Saumen Gosh P Nandgopal Malay Gosh Maneesha Thakur Rajesh Bahl Pournima Gupte C Mohan R Rangarajan S V Sunder Krishnan Saroj K Panigrahi Designation Director Director Group President CEO Deputy CEO Chief Human Resources Officer Sr VP-Legal & Chief Financial Officer Appointed Actuary Chief Technology Officer Chief Investment Officer Chief Risk Officer Head-Legal, Compliances & Company Secretary

1.5 PRODUCT PROFILE

RELIANCE LIFE INSURANCE PRODUCTS

Protection Plans 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.

Child Plans Being a parent is one of the joys of life. Your child looks up to you and depends on you for love, protection and support. You want to provide your child with the best in life. The Reliance Child Plan helps you save systematically so that you can secure your childs future needs. Be it higher education, his or her first home or any other requirement, you will always be there for your child when he or she needs you.
So, invest in a Reliance Child Plan right awayit is the best gift you could ever give your child.

Some of the Child Plans are:-

Sr. No. 1 2
3 4

Name of the plan Reliance Super Invest Assure Plan Reliance Child Plan Reliance Wealth + Health Plan Reliance Secure Child Plan

1.6 OBJECTIVE AND SCOPE OF THE STUDY Objective of the study:

To study the sales strategy of field force of Reliance Life Insurance. To study the process of selling of Insurance policies by Advisors. To know client behavior and deal with clients. To generate clients for company through a team of Advisors and insurance consultants. To increase the market value of the company through product promotion. Quick rollout of products.

Scope of the study:

At the present time of cutthroat competition in every industry, every company want to top the chart and want to show as big as possible figure of profits in its balance sheet. It is quite clear today that at present time the growth of any organization is possible only with the help of hardworking and well focused staff that are the backbone of any organization. It was my great pleasure that I completed my summer training from Reliance Life Insurance where I got to know that in insurance industry the skills of the manpower matters most and increasing number of insurance consultants help the organization to increase its policies which in turn result in growth for the organization.

Chapter-II RESEARCH METHODOLOGY

Research is an organized inquiry designed and carried out to provide information to solve the problem. Research is the process of systematically obtaining accurate answer to significant pertinent questions by the use of gathering data, interpretation and work. Research methodology is a way to systematically solve the research problem. Research methodology constitutes of research methods, selection criterion of research methods, used in context of research study and explanation of using of a particular method or technique so that research results are capable of being evaluated either by researcher himself or by others. Why a research study has been undertaken, how the research problem has been formulated, why data have been collected and what particular technique of analyzing data has been used and a best of similar other question are usually answered when we talk of Research methodology concerning a research problem or study. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.

2.1 RESEARCH DESIGN Exploratory & Descriptive Experimental Research The research is primarily both Exploratory as well as Descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews are conducted to collect the customers perception and buying behavior, through this questionnaire

2.2 SAMPLING METHODOLOGY 2.2.1 Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be Random Sampling. 2.2.2 Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, and Self Employed etc.

2.2.3 Sample size: The sample size was restricted to only 100, which comprised of mainly people from different regions of Pune due to time constraints. 2.2.4 Sampling Area: The area of the research was Aundh, Kothrud, Hinjewadi (Pune), India.

2.3 INSTRUMENT FOR DATA COLLECTION

To know the response, I have used the questionnaire method. If one wishes to find what insurance care consultants think or know, the logical procedure is to ask them. This has led marketing researchers to use the questionnaire technique for collecting data more than any other method.

In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaire were structured non disguised questionnaire because the question which the questionnaire contained, were arranged in a specific order besides every question asked were logical for the study, no question can be termed as irrelevant.

The questionnaire was non-disguised because the questionnaire was constructed so that the objective is clear to the respondent. The respondents were aware of the objective. They knew why they were asked to fill the questionnaire.

With the help of following techniques, which are using by Reliance Life Insurance, I analyze that the how techniques of sales promotion are useful.

2.4 DATA COLLECTION SOURCES

2.4.1 PRIMARY DATA SOURCES Through interaction with insurance care consultant Through questionnaires filled from the insurance care consultant.

2.4.2 SECONDARY DATA SOURCES:

Through internet, various official sites of the companies. Through pamphlets and brochures of the companies. Journals & Magazines.

2.5 LIMITATIONS OF THE STUDY 1. The research is confined to a certain parts of Pune and does not necessarily shows a pattern applicable to all of Country.
2. The study was conducted in Reliance Life Insurance in Pune city. The sample size was

of 100 only so that accuracy of data so collected could be absurd covered by circulation of questionnaire. 3. The accuracy of indications given by the respondents may not be consider adequate as whether the language used in the questionnaire is understood by the respondent cannot be taken for granted.
4. The study is based on the information gathered from the different policyholders.

Therefore in such case it is possible that the information supplied might be biased because the policyholders might have shown partiality towards different insurance policies.
5. Since the survey was limited to 100, it is rather difficult to give a precise conclusion but I

have tried to the best of my capability to give the conclusion on a comprehensive manner.

Chapter-III DATA ANALYSIS AND INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANYS NAME L.I.C. RELIANCE LIFE INSURANCE ICICI PRUDENTIAL SBI LIFE HDFC TOTAL NO.OF RESPONDENT 78 10 3 7 2 100 SHARE (%) 78 10 3 7 2 100

INTERPRETATION 78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.

DATA

GIVES

BENEFITS

OF

INSURANCE

PERCEIVED

BY

RESPONDENTS
BENEFITS Cover Future Uncertainty Tax Deductions Future Investment TOTAL NO.OF RESPONDENTS 55 20 25 100 SHARE (%) 55 20 25 100

25% 55%

Cover Future Uncertainty Tax Deductions

20%

Future Investment

INTERPRETATION 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.

DATA

PROVIDES

FEATURES

OF

INSURANCE

POLICY

THAT

ATTRACTED RESPONDENTS
FEATURE Money Back Guarantee Larger Risk Coverance Easy Access to Agents NO.OF RESPONDENTS 15 37 7 SHARE (%) 15 37 7

Low Premium Companys Reputation TOTAL

30 11 100

30 11 100

INTERPRETATION
Majority of the respondent (37%) found larger risk coverance as the most attracted feature of the all.

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE

NO. OF RESPONDENTS 81 74 100

SHARE (%)

A saving tool A tax saving device A tool to protect your family

81% 74% 100%

INTERPRETATION 81% of the respondents have perception of Insurance being a saving tool. And 74% of the respondents have perception of Insurance being a tax saving device. But 100% of the respondents are with the view that Insurance is a tool to protect

your family.

DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX NO. OF RESPONDENTS 100 100 SHARE (%) 100% 0% 100%

RESPONSE Paying tax Not paying tax Total

0%

100%

Paying tax

N paying tax ot

INTERPRETATION Of the sample size of 100 respondents, all the respondents are paying tax.

 DATA SHOWS RESPONDENTS INVESTMENTS FOR TAX SAVING INVESTMENTS LIC NSC Bonds PPF PF EPF NO. OF RESPONDENTS 51 33 32 25 21 11 SHARE (%) 51% 33% 32% 25% 21% 11%

11 21

51

25

32

33

LIC

NS C

BO ND

PPF

PF

EPF

INTERPRETATION 51% of the respondents save their tax by investing in LIC, which is the highest among all Investment. This shows that most people for getting taxes benefits invest in LIC. 33.25% of the respondents do their tax saving by investing in NSC.

32.25% of the respondents to their tax saving by investing in bonds.

DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF

INVESTMENT FOR SECURING THEIR FUTURE NO. OF RESPONDENTS Fixed Assets Bank deposits Jewellery Securities i.e. bonds, MFs Shares Insurance 75 11 25 40. 10 70 SHARE (%) 75% 11% 25% 40% 10% 70%

F ix e d A s s e ts
70 75

B a n k d e p o sits C a s h & J e w e lle ry

10 40 25

11

S e c u ritie s i.e . b o n d s , M Fs S h a re s In s u ra n c e

INTERPRETATION 75.25% of the respondents as with the view that Fixed Assets is the best form of

investment for securing their future.

70.5% of the respondents are with the perception that Insurance is the best form of

investment for securing their future, which is one of the highest and this shows that insurance is an important key for securing your future.

DATA

SHOWS

PEOPLE

OPINION

ABOUT

INDIAN

INSURANCE

COMPANIES RESPONSE Rigid plans Non user friendly Unsatisfactory services Non Aggressive33 Satisfactory Good
26
Inflexible plans Unsatisfactory services Satisfactory Very good

NO. OF RESPONDENTS 67
24 10

SHARE (%) 67% 29%

67

29 26 35
29 24
Non user friendly 10 Non Aggressive

26% 35% 24% 10% 0%

Good

Very good

INTERPRETATION

67% of the respondents have the opinion that Indian Insurance Companies have

Rigid plans. 29.5% feel that Indian Insurance companies are Non-user friendly. 26.5% feel that services of Indian Insurance companies are Unsatisfactory. 35.75% of the respondents are with the view that Indian Insurance companies are

Non-aggressive. 24% of the respondents feel that products and services of Indian Insurance

companies is Satisfactory. Whereas only 10.25% feel that it is good enough.

DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF RESPONDENTS 87 13 100 SHARE (%) 87% 13% 100%

Planning Not planning Total

13.0%

87.0%

Planning

Not planning

INTERPRETATION Only 12.5% of the customers contacted are not planning for new investments presently. Whereas, 87.5% of the customers are still planning for new investments this can be a great

potential for Reliance Life Insurance to take them on their favor.

DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A

SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS RESPONSE Yes No Uncertain Total NO. OF RESPONDENTS 43 44 13 100 SHARE (%) 43% 44% 13% 100%

13 % 4 3% 44 %

Ye s

N o

U ncerta in

INTERPRETATION
The interested customers i.e. 43% are ready to go for insurance even away from a city if

services and products are worthwhile, which again is a good prospect (potential) for Reliance Life Insurance to take them on their favor.

Chapter-IV FINDINGS

For me the product promotion process was very much satisfying not only practically and academically but it also helped me in developing my communication skill and enriched my knowledge also.

I have come to know about the importance of marketing especially with regard to Product Promotion on the most renowned organization like Reliance Life Insurance. Especially because of emergence of many competitor with excellence in services & competitive product. The base of this chapter conclusion is on the data analysis or what we say findings.

According to the findings, most of the customers are planning for new investment. Especially they are looking for a trusted name and if the products are good then they are ready to invest despite a service provider is away from the city.

Most of the respondents think that Fixed Assets are the best form of investment for securing their future.

Majority of the respondents perceive Insurance as a Saving Tool. Finding says that low premium is the feature that attracts a person the most.

Chapter-V CONCLUSION

The company faces a large amount of competition. To sustain itself it must promote its products through advertising and improve its selling techniques. Consumers must be aware of the new plans available at Reliance Life Insurance Co.Ltd. The medium of advertising used could be television since most of its competitors use this tool to promote their products. The company must be promoted as an Indian company since consumer seem to have more trust in investing in Indian firms. The Unit linked concept must be specifically promoted. The general perception of life insurance has to change in India before progress is made in this field. People should not be afraid to invest money on insurance and must use it as an effective tool for tax planning and long term saving. Reliance Life Insurance co. Ltd. could tap the rural markets with cheaper products and smaller policy terms. There are individuals who are willing to pay small amounts as premium but the plans do not accept premium below a certain amount. It was usually found that a large number of males were insured compared to females. Individual below the age of 30(mostly male) were interested in investment plans. This was a general conclusion drawn during prospecting clients.

Chapter-VI

RECOMMENDATIONS

As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India.

Company should come up with its branch in rural areas, with the objective and goals to meet the demands & expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market.

Since Reliance Life Insurance is one of leading company in insurance sector therefore it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship.

As seen from the survey that at present 70% of the customer are having insurance policy out of which 87% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers.

43% of the customer is even ready to go for insurance if a service provider away

from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor.

Chapter-VII BIBLIOGRAPHY

1.) Books Referred

Kothari C. R.: Research Methodology (2004), New Age Publication

2.) Websites Referred www.reliancelife.co.in www.moneyoutlook.com www.insurance.ind.com

ANNEXURE
(A) QUESTIONNAIRE

NAME: _________________________ ADDRESS: ______________________ ______________________________ OCCUPATION: ___________________

ARE YOU EMPLOYED? YES NO

DO YOU HAVE ANY INSURANCE POLICY? YES NO

WHICH COS INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM) a) LIC

b) ICICIPRUDENTIAL c) SBI LIFE INSURANCE d) ING VYSYA LIFE e) RELIANCE LIFE INSURANCE f) TATA AIG LIFE g) ANY OTHER ________ (Specify)

WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM) a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS c) FUTURE INVESTMENT d) ANY OTHER _________ (Specify)

WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM) a) LOW PREMIUM b) LARGER RISK COVERANCE c) MONEY BACK GUARNTEE d) REPUTATION OF COMPANY e) EASY ACCESS TO AGENTS

f) ANY OTHER

_________ (Specify)

YOUR MONTHLY INCOME? a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

WHATS YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE

DO YOU PAY TAXES? YES NO

WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM)

a) LIC b) NSC c) BONDS d) PPF e) PF f) EPF

WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM) a) FIXED ASSETS b) BANK DEPOSITS c) JEWELLERY d) SECURITIES, i.e. Bonds, MFs e) SHARES f) INSURANCE

 HOW WOULD YOU RATE INDIAN INSURANCE COs? a) RIGID PLANS b) NON-USER FRIENDLY c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE e) SATISFACTORY f) GOOD g) VERY GOOD

WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs? (RANK THEM) a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS c) GOOD PLANS d) ACCESSIBILITY

 ARE YOU PLANNING FOR NEW INVESTMENTS? PLANNING NOT PLANING

WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?

a) YES b) NO c) UNCERTAIN

THANK YOU