A PROJECT REPORT ON A STUDY ON CUSTOMER PERCEPTION ABOUT LIFE INSURANCE

SUBMITTED TO Pt.Ravishankar Shukla University, Raipur (C.G.) In partial fulfillment for the degree course of BACHELOR OF BUSINESS ADMINISTRATION (BBA)
FOR THE ACADEMIC SESSION 2013

Guided by:
Ms Sarita Dubey Asst. Professor Department of Management MAIC, RAIPUR

Submitted by:
Naresh Kumar Sahu BBA VI Sem Roll No-1121035

Department Of Management MAHARAJA AGRASEN INTERNATIONAL COLLEGE Samta colony, Raipur (C.G.)

A PROJECT REPORT ON A STUDY ON CUSTOMER PERCEPTION ABOUT LIFE INSURANCE

SUBMITTED TO Pt.Ravishankar Shukla University, Raipur (C.G.) In partial fulfillment for the degree course of BACHELOR OF BUSINESS ADMINISTRATION (BBA)
FOR THE ACADEMIC SESSION 2013

Guided by:
Mrs Suchitra Rathi HEAD Department of Management MAIC, RAIPUR

Submitted by:
Naresh Kumar Sahu BBA VI Sem Roll No-1121035

Department Of Management MAHARAJA AGRASEN INTERNATIONAL COLLEGE Samta colony, Raipur (C.G.)

Certificate

This is to certify that the Project Work entitled A study on customer perception about life insurance submitted by Naresh Kumar Sahu for the partial fulfillment of Degree of Bachelor of Business Administration from Pt. Ravishankar Shukla University, Raipur (C.G.) is an authentic work performed by the Student.

This work has been submitted for the sole purpose of academic interest.

Internal Examiner

External Examiner

Certificate

This is to certify that Mr. Naresh Kumar Sahu a bonafide student of Maharaja Agrasen International College, Raipur (C.G.) studying in B.B.A VI Semester has successfully completed his project entitled A study on customer perception about life insurance.

I wish him all success in every endeavor of life.

Sarita Dubey Project Guide

Suchitra Rathi Head Department of Management MAIC

Dr.Samir Thakur Principal MAIC

Declaration

I, Mr. Naresh Kumar Sahu hereby declare that this report is the record of authentic work carried out by me during the academic year 2013 in Reliance Life Insurance at Ashoka Millennium Ring Road Raipur branch.

Naresh Kumar Sahu

ACKNOWLEDGEMENT

An internship report is a result not only of the student who prepared it, but also the combine effort of the faculty guide, staffs and members of the institute where the project is done and most importantly the advisor who gives the final touch. On the successful completion of my internship, I would like to express my heartfelt gratitude to the people without whose help and kind co-operation this work would not have been possible. The compilation of the project is a milestone in the life of the management student and its execution is inevitable with the co-operation of the project guide. I wish to record a deep sense of respect and gratitude to my project guide, Ms Sarita Dubey for her encouragement to course of my work. It is due to the enduring effort and guidance of my guide that ultimately made it success. I also take this opportunity to express my deep regards and gratitude to the Business Manager D.K.Sen. I have deep admiration for my teachers at for nurturing my interest in the subject. Their dedication has instilled my faith in academics and has continued to inspire me. Last but not the least love, care and support of parents, sibling and friends is indeed valuable. Finally, I thank to one and all, who helped me directly or indirectly in completing the internship.

Naresh Kumar Sahu

INDEX

Chapter No. 1 2 3 4
5

Particulars

Page No.

Introduction Company Profile Review of Literature Research Methodology Data analysis and Interpretation Findings Suggestion Conclusion Limitation Bibliography Appendices

1-2 3-5 6-7 8-10 11-21 22-23 24-26 27-28 29-30 31-32 33-35

6 7 8 9

CHAPTER 1 INTRODUCTION

Introduction:
Insurance is a legal contact that protects people from the financial costs those results from loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individual and society to cope up with some of the risks faced in everyday life by everybody. People purchase contracts of insurance, called a policy, from various insurance companies. A l m o s t e v e r y person existing in this world is associated with insurance, directly o r indirectly. Directly, in the sense that he / she has insured his/her life by some kind of insurance policy from any company. Indirectly, in the sense they must have insured the assets of their won for example their house, car, or anything else. Life is full of risk and uncertainties. Since we are the social human being we have certain responsibilities too. Indian consumers have big influence of emotions and rationality on their buying decisions. They believe in future rather than the present and desire to have a better and secured future, in this direction life insurance services have its own value in terms of minimizing risk and uncertainties. Indian economy is developing and having huge middle class societal status and salaried persons. Their money value for current needs and future desires here the pendulum moves to another side which generate the reasons behind holding a policy. Here the attempt has been made in this research paper to study the perception of consumers towards life insurance. Life insurance is one of the best known insurance products today. People buy these products as investment tools and also as protection for themselves and their families. All the insurance companies the world over are looking at attracting the eye balls of customer and positioning their solutions innovatively to cater to niche and specific markets. One of the most critical aspects both from the view point of the customer and the insurer is getting important and relevant leads that can be beneficial for both.

CHAPTER 2 COMPANY PROFILE

Company Profile: ABOUT RELIANCE LIFE INSURANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. 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. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate.

BRANCHES
They have so many branches and substations in the India. They have around 160 branches in the India. And they have planned to open more branches across the country in the coming months.

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

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

HEAD OFFICE
Reliance Life Insurance Company Limited, The Trapezium, 39, First Floor, Nelson Manickam Road, Chennai 600 029.

CHAPTER 3 REVIEW OF LITERATURE

Review of Literature:
India is a country where the average selling of Life insurance policies is still lower than many Western and Asian countries, with the second largest population in world the Indian insurance market is looking very prospective to many multinational and Indian insurance companies for expanding their business and market share. Before the opening of Indian market for Multinational Insurance Companies, Life Insurance Corporation (LIC) was the only company which dealt in Life Insurance and after opening of this sector to other private companies, all the world leaders of life insurance have started their operation in India. With their world market experience and network, these companies have offered many good schemes to lure all type of Indian consumers but unfortunately failed to get the major share of market. Still the LIC is the biggest player in the life insurance market with approx 65% market share. But why Indian consumers do not trust on many companies and why the major population of India does not have any life insurance policy or what are the factors plays major role in buying behaviour of consumers towards life insurance policies. Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry. There are many issues, which require study. The scope of the study of insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector. Right now the insurance industry has great opportunities in a country like India or China which huge population. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped.

CHAPTER 4 RESEARCH METHODOLOGY

Objective 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 customers awareness regarding the various life insurance companies in the insurance sector.

c) To know the customers preference towards the private or public insurance sector.

d) To know the different promotion strategy used by companies to aware their customers.

e) To evaluate the factors underlying consumer perception towards investment in life insurance policies.

f) To develop and standardize a measure to evaluate investment pattern in life insurance services.

SAMPLING METHOD AND SAMPLE SIZE

Introduction:Any organization whether big or small, private or public need different types of information are to know its popularity. The researcher have gathered secondary data and primary data and collected information from the combination of these two data.

 Research approaches:Research is basically of two types-

1) 2)

Exploratory. Conclusive.

Conclusive Research:My research is a conclusive type of research which includes:-

Primary data: The researcher have taken great care while collecting primary data to answer that it is relevant, accurate, current and unbiased. I have taken a sample of 100 people. I have visited them personally to get data.

Secondary data: Secondary data consist of information that already exists somewhere, having been collected for another purpose. The researcher have gathered secondary data from website of different operators, different magazines, newspapers and libraries.

Sample size: I have taken sample size of 100 respondents. Because the population is too large so it is difficult to survey.

 ANALYSIS OF QUESTIONNAIRE
Here I have formed a questionnaire to study why people go for life insurance. What is peoples major motive behind investing in life insurance? Do they decide upon their own or they take guidance of an agent? What is their perception about Reliance Life Insurance Company Limited?

Target Population:I had conducted this survey among 100 people, and the target group was a mix of people from the society. I asked the questions to Doctors, Professionals, Professors, Advocates, Engineers, and general public.

CHAPTER 5 DATA ANALYSIS AND INTERPRETATION

Data Analysis:

1. Do you aware with life insurance?

Particulars YES NO

No. of Respondents 99 1

YES NO

Interpretation 1: According to the data maximum no. of people are aware with life insurance policy (here 99% people are aware with it). Today Indians are aware with this investment because it covers risk of the life as well as gives better return on maturity.

2. What is your purpose for buying an insurance policy?

Particulars Risk cover Saving Tax benefit Return/Yield

No. of Respondents 51 14 21 14

Risk cover Saving Tax benefit Return

Interpretation 2: There could be any motive of people behind investing in a life insurance policy. The main purpose of life insurance is the Risk cover of ones life. But some people consider different advantages of a life insurance policy.

3. When you are buying an insurance policy, your decision is influenced by?

Particulars Family Friends Professionals and insurance agent Brand and advertisement 37 30 14 19

No. of Respondents

40 35 30 25 20 15 10 5 0 Family Friends Professionals Brand & advertisement

Interpretation 3: Insurance is now basic investment for consumers. But this is tradition of India that we do not believe on unknown people so when any one buy insurance policy then his or her decision is depend on family, friends and on other factors. In the study i found that 37% of respondents believe on their family to buy insurance policy but only 19% respondents decision depend on brand and advertisement of the company. So, a/c to study, we see that family and friends play a big role to buy an insurance policy.

4. In which company you believe most?

Company Private Company Public Company

No. of Respondents 29 71

Private company Public company

Interpretation 4: Most of the people want to invest their money in public insurance company. In private insurance company only 29 respondents want to invest their money. Most of the people buy insurance from LIC and there are more than 20 private insurance companies in India.

5. How do you want to pay your premium?

Mode Cash Online Payment Cheque or demand draft

No. of Respondents

35 38 27

40 35 30 25 20 15 10 5 0 Cash Online payment Cheque or demand draft

Interpretation5 : Most of the respondents (i.e. 38) pay their premium through online because of easiness and convenience. 35 respondents pay their premium through cash and 27 of them pay their premium through demand draft.

6. In what mode you want to give premium?

Mode Monthly Half Yearly Yearly

No. of Respondents

27 40 33

Mode of premium

Monthly Half yearly Yearly

Interpretation 6 : Insurance companies give a lot of facility to their loyal customers for payment of premium. Costumer also pays the premium in three modes monthly, half yearly and yearly. Here 40 % respondents pay in half yearly mode and 33% respondents pay yearly mode premium.

7. Are you satisfied with the return on investment which you getting from policy?

Satisfaction level Very Satisfied Satisfied Can't say Not much satisfied Dissatisfied

No. of respondents 21 60 4 4 11

Percentage of respondents 21% 60% 4% 4% 11%

70 60 50 40 30 20 10 0 Very Satisfied Satisfied Can't say Not much satisfied Dissatisfied

Interpretation7 : A/c to data, 60% of respondent are satisfied with the return. About 21% are very satisfied on their investments return and 11% are dissatisfied with return on investment.

8. If you are not taking any insurance policy then please tell us the reason, why?

Reasons We could not afford. We don't see any benefit with it. We don't want insurance.

No. of respondents Category 26 24 15 1 2 3 4

I don't understand that how it works? 35

30 25 20 15 10 5 0 Category 1 Category 2 Category 3 Category 4

Interpretation 8: 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.

9. Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy?

Particulars Reliance Life Insurance LIC

No. of respondents 30 70

LIC RLI

Interpretation9: This is the most important question as it reflects the scope of the study. It is the main theme of this questionnaire. Reliance Life Insurance Company Limited is newly launched company. So it has fewer customers as compared to LIC. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in todays environment.

10. Do you think that insurance policy is necessity of today's life?

Particulars Yes No

No. of respondents 92 8

100 90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation10: Life is full of risk and uncertainties. Since we are the social human being we have certain responsibilities too. This is why maximum respondents think that life insurance is necessity of todays life for securing there family.

CHAPTER 6 FINDINGS

Findings:

1. Now life insurance has become generic. People believe in Life Insurance Company only and therefore, everybody wants to go in for a policy with LIC. It will take time to private companies to win the confidence of the people.

2. As far as future decision making about the policy is concerned most of the policy would go in for saving plan.

3. People are turning towards the ULIP as a good investment option but ULIP is in its starting phase so customers prefer only big brands LIC, RLIC etc.

4. LIC is the oldest player in the Insurance market, so people are more aware of i.e., as compared to new players.

5. This clearly comes out from the survey conducted that most of the people come to know about Reliance life Insurance company through electronic media.

6. It has clearly come out that most of the people like to go in for a policy, which gives them tax benefit.

7. A/c to survey it is cleared that most of the people don't take insurance policy because they don't understand that how insurance policy works?

8. Most of People influenced by family and friends when they are buying insurance policies.

CHAPTER 7 SUGGESTION

Suggestion:

Followings are the recommendations and the suggestions not only for the Reliance life insurance company but also for other private life insurance companies if they want to compete with public/government life insurance companies.

1. Creating positive image: Private companies should try their level best to create positive and favourable image in the minds of people i.e. in the minds of their target customers.

2. Training and development to agents: Company must provide training to their agents and financial so that they can satisfy customer and doubts effectively.

3. Concern towards customers: Serious concern must be given to the customers as in today's scenario it regarded as Customer is a king. In formal words we can say that if can customers more loyal towards the company.

4. Co-operation with agents and branch managers: The Company must full co-operate with branch managers and agents.

5. Availability of branch offices: There must be the branch offices in each 20-30 Km. diameter.

6. Efficient management: The management appointed must be that much capable that it can control the whole team and improve the goodwill and image of the company.

7. Sales promotion and marketing: The marketing department must be so aggressive that it can have a close watch on the competitors activities. Not only this but also it must take care of the need and wants of the customers also.

8. Incentive schemes and permanency in job: There must be good incentive schemes to be designed as these can acts as good motivators for the agents. The scheme of permanent job placement must be introduce for those agents who have shown extra ordinary performance.

9. Solution of Grievances: There must regular meetings with the financial consultants and agents to motivate them and to solve grievances if there are any.

CHAPTER 8 CONCLUSION

Conclusion:

Reliance Life insurance is one of the largest private life insurance company and it has awakened many new hopes and aspiration for human kind, just 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 to 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 other life insurance companies and concluded that most of the people preferred to deal with nationalized insurance companies. People used to buy Insurance for tax exemption but time has changed now, advertising has made the people understand the need of Life Insurance in their lives and people are taking initiatives to buy it. Urge of people to have Insurance and strong marketing can really make the industry reach the sky. 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.

CHAPTER 9 LIMITATION

Limitations:

Although every effort has been in to collect the relevant information through the sources available, still some relevant information could not be gathered.

Busy Schedule of Concerned Executives: The concerned executives were having very busy schedule because of which they were reluctant to give appointment.

Time: The time duration could not provide ample opportunity to study every detail of the company.

Unawareness: Customers were unaware of many terms related to same while asking to them.

Confidential Information: As the company on account of confidential report has not disclosed some figures. Moreover, in some cases separate accounts of division are not separately maintained thereby, leading to restrictions in study.

Area: Area of study chosen was not large.

BIBLIOGRAPHY

Bibliography:

Books Referred: Kotler Philip;(2007) Marketing Management (2007),Marketing Management, 12th edition.

Kothari C.R.;(2004) Research Methdology, 7th edition.

Internet Resources

Websites of the organization

www.reliancelife.com

Other sites

www.policybazar.com, www.irdaindia.gov ,

APPENDICES

QUESTIONNAIRES

A STUDY ON CUSTOMER PERCEPTION ABOUT LIFE INSURANCE

Dear sir/ madam, The project study on entitled topic the customer perception about life insurance.Please give me valuable information for Reliance Life so that I can use it for my project purpose. Your informtion will be kept confidential and will be used only for academic purpose.

Thanking You Naresh Kumar Sahu BBA VIth SEM.

Please tick () out for appropriate option. (A) Personal Information: ............................................................................................................................................ a. Name: ...................................................................................

b. Gender:

a) Male

b) Female

c. Age (in years)

a) Below 18 c) 35-50

b)18-35 d) Above 50

d. Educational qualification: .......................................................

e. Occupation: ............................................................................. (B) Questions: ............................................................................................................................................ 1. Do you aware with Life Insurance? a) Yes b) No 2. What is the purpose for buying insurance Policy? a)Risk cover c) Saving b) Tax benefit d) Return/Yield

3. When you are buying an insurance policy then your decision influenced by? a) Family c) Professional/Agent b) Friends d) Brand & Advertisement

4. On which company do you believe most? a) Private insurance company b) Public insurance company

5. How do you want to pay your premium? a) Cash b) Online payment c) Demand draft/Cheque

6. In what interval do you want to give your premium? a) Monthly b) Half yearly c) Yearly

7. Are you satisfied with the return on investment which you getting from policy? a) Very Satisfied b) Satisfied c) Can't say d) Not much Satisfied e) Dissatisfied 8. If you are not taking any insurance policy then please tell us the reason, why? a) I could not afford. b) I don't see any benefit with it. c) I don't want insurance. d) I don't understand that how it works?

9. Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? a)LIC b)RLI

10. Do you think that insurance policy is necessity of today's life? a) Yes b) No