CHAPTER-1

INTRODUCTION TO TOPIC

1
Investors Perception
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 buying behavior of consumers towards
life insurance services.
The project consumer perception and is basically measures the development of perception
through different variables and identify those factors which stimulate buying decision of
consumer. Among various variables which effect consumer buying pattern I choose
AWARENESS and AVAILABILITY of the product as two ain variables which have strong effect
on popularity and sale of pasta product. As my research is totally based on qualitative method
thats why I choose quota sampling technique and collect data by interviewing house wives
resides in different areas of Karachi. The reason of choosing only house wives as respondent is
that house wives can give true insight factors which hinder the popularity of pasta products in
Pakistan. Focus group discussions have been conducted to extract findings. 30 house wives have
been interviewed and their responses have been analyzed.
Products and brands have symbolic value for individuals, who evaluate them on the basis of their
consistency (i.e. congruence) with their personal pictures of themselves. Some products seem to
agree with an individuals self-image; others do not. Consumers attempt to preserve or enhance
their self-images by buying products they believe are congruent with that self-image and
avoiding products that are not.
The consequence for companies is that they have to adapt their ways of competing for customers.
Traditionally, companies have focused their efforts of customer relationship management on
issues like customer satisfaction and targeted marketing activities like event marketing, direct
marketing or advertising. Although doubtless necessary and beneficial, these activities are not
longer enough. They narrow the relationship between company and customer down to a
particular set of contacts in which the company invests its efforts. Most likely this will produce

2
not more than a satisfied customer who is well aware of the companies offerings and has a
positive attitude towards them. However, a satisfied customer is not necessarily a loyal one.
If a customer is satisfied that means that a product of service has met his expectations and that he
was not dissatisfied by it. Customer satisfaction is doubtlessly very important. It is the
precondition for repeat purchases and it prevents the customer from telling others about his
disappointing experiences. A loyal customer, however, is more than a customer who frequently
purchases from a company.

The difference is the emotional bond which links the customer so closely to the company that he
develops a clear preference for these products or brands and is even willing to recommend them
to others. Loyal customers truly prefer a product, brand or company over competitive offerings.
Thus loyalty goes beyond a rational decision for known quality or superior price-performance-
ratio. It is about the customers feelings and the customer perception about the brand or product.

When the customer makes his buying decision, he evaluates the benefits he perceives from a
particular product and compares them with the costs. The value a customer perceives when
buying and using a product or service go beyond usability. There is a set of emotional values as
well, such as social status, exclusivity, friendliness and responsiveness or the degree to which
personal expectations and preferences are met. Similarly, the costs perceived by the customer,
normally comprise more than the actual price. They also include costs of usage, the lost
opportunity to use another offering, potential switching costs etc. Hence, the customer
establishes an equation between perceived benefits and perceived costs of one product and
compares this to similar equations of other products.

Based on this, customer loyalty can be understood as to how customers feel about a product,
service or brand and whether their perceived total investments with it live up to their
expectations. The important point here is the involvement of feelings, emotions and perceptions.
In todays competitive marketplace, these perceptions are becoming much more important for
gaining sustainable competitive advantage.

3
This study titled Study of Consumers Perception about Life Insurance Policies enables the Life
Insurance Companies to understand how consumers perception differs from person to person.
How a consumer selects, organizes and interprets the service quality and the product quality of
different Life Insurance Policies, offered by various Life Insurance Companies.

BACKGROUND OF THE STUDY

Life Insurance is a contract for payment of a sum of money to the person assured on the
happening of the event insured against. Usually the insurance contract provides for the payment
of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate
death if it occurs earlier. Obviously, there is a price to be paid for this benefit. Among other
things the contracts also provides for the payment of premiums, by the assured. Life Insurance is
universally acknowledged as a tool to eliminate risk, substitute certainty for uncertainty and
ensure timely aid for the family in the unfortunate event of the death of the breadwinner. In other
words, it is the civilized worlds partial solution to the problems caused by death. Life insurance
helps in two ways dealing with premature death, which leaves dependent families to fend for
themselves and old age without visible means of support.

KEY PLAYERS IN THE INSURANCE INDUSTRY

1. LIC

2. ICICI PRUDENTIAL

3. TATA AIG

4. BIRLA SUN LIFE INSURANCE

5. MAX NEW YORK

6. SAHARA LIFE

7. SBI LIFE INSURANCE

8. AXA (AIRTEL, I.E. BHARTI GROUPS)

4
 10. ALLIANZ BAJAJ

12. ING VYSYA

13. RELIANCE LIFE INSURANCE

14. METLIFE INSURANCE

15. HDFC STANDARD LIFE INSURANCE

Different Life Insurance Plans --

a) Protection plus savings plan

b) Protection plus Liquidity plan

c) Protection plus Asset Building plan

d) Investment Plan

e) Pension plan etc,

This study will help the companies to understand the consumers perception about different life
insurance policies.

Benefits of Life Insurance Policies

1) Superior to any other savings plan:

Unlike any other savings plan, a life insurance policy affords full protection against risk of death.
In the event of death of a policy holder, the insurance company makes available the full sum
assured to policy holders near and dear ones. In comparison, any other savings plan would
amount to only the total savings plan accumulated till date. If the death occurs prematurely, such
savings can be much less than the sum assured which means that the potential financial loss to
the family is sizable.

5
2) Encourages and Forces Thrifts:

A saving deposit can easily be withdrawn. The payment of life insurance premium, however, is
considered sacrosanct and is viewed with the same seriousness as the payment of interest on a
mortgage. Thus, a life insurance policy in effect brings about compulsory savings.

3) Easy settlement and protection against creditors:

A life insurance policy is the only financial instrument the proceeds of which can be protected
against the claims of a creditor of the assured by effecting a valid assignment of the policy.

4) Administering the Legacy for Beneficiaries:

Speculative or unwise expenses can quickly cause the proceeds to be squandered. Several
policies have foreseen this possibility and provide for payment over a period of years or in a
combination of installments and lump sum amounts.

5) Ready Marketability and suitability for quick borrowing:

A life insurance policy can, after a certain time period (generally three years) be surrendered for
a cash value. The policy is also acceptable as a security for a commercial loan, for example, a
student loan.

6) Disability Benefits:

Death is not the only hazard that is insured; many policies also include disability benefits.
Typically, these provide for waiver of future premiums and payment of
monthly installments spread over a certain time period.

7) Accidental death Benefits:

Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if
death occurs as a result of accident.

6
 CHAPTER-2

INDUSTRY AND COMPANY PROFILE

7
INTRODUCTION TO INDUSTRY

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies. Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations.

The other decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents. The approval of institutions for imparting training to
agents has also ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell their products.

PURPOSE AND NEED FOR INSURANCE

Asset is likely to be destroyed or made non-functional due to accidental occurrences

called perils. Asset can, therefore, be insured.
Possibility of damage to asset caused by 1a peril is the risk that asset is exposed to.
Risk means uncertainty or unpredictability about future loss or damage, which may or
may not happen. This refers to the losses, which may happen suddenly and unexpectedly.
Insurance becomes relevant only if there are uncertainties of occurrence of event leading
to losses. Insurance is done against the contingency of the happening of such events.
No uncertainty No insurance.

MECHANISM OF INSURANCE

8
 The concept of insurance is that people exposed to the same risk come together and
agree to share a loss collectively if any one of their members suffer it from that risk.
The insurance companies play the vital role of implementing this concept they try
bringing together people exposed to the similar risk ; they collect members contribution
in advance in the shape of premium and create a fund out of which the losses are paid .
In the event of breadwinners death, the family income stops suddenly.
The family income may also stops on retirement of the breadwinner.
Life insurance covers the above contingencies and provides relief to the family in the
event of the death of retirement of the breadwinner.
Variable needs for life insurance can be.

WHY INSURANCE

Life insurance has come a long way from the earlier days when it was originally conceived as
a risk covering medium for short periods of time, covering temporary risk situations, such as
sea voyages. As life insurance became more established, it was realized what a useful tool it
was for a number of situations, including

a) Temporary needs / threats :

The original purpose of life insurance remains an important element, namely
providing for replacement of income on death etc.

b) Regular Savings :
Providing for ones family and oneself, as a medium to long term exercise (through a
series of regular payment of premiums ). This has become more relevant in recent
times as people seek financial independence for their family.

c) Investment :
9
 Put simply, the building up of saving while safeguarding it from the ravages of
inflation. Unlike regular saving products, investment products are traditionally lump
sum investment, where the individual makes a one off payment.

d) Retirement :
Provision for later years becomes increasingly necessary, especially in a changing
cultural and social environment. One can buy a suitable insurance policy, which will
provide periodical payment in Ones old age.

Insurance is one of the instruments designed to deal with risk through sharing. In its simple
aspect it is imbued with two fundamental characteristics, viz., transfer of risk from one group to
another group, and facilitates sharing of losses, on some equitable basic , all members of the
group. The importance of insurance is twofold: (1) from individuals point of view. Insurance is
an economic device whereby the individual substituted a small certain cost for a large uncertain
financial loss that would exist if it were not for the insurance, and (11) from social point of view
insurance my be perceived to be an economic instrument that reduces eliminates risk through
the process of combining a sufficient number of homogenous exposures into a group and makes
the losses predictable for a group as a whole.

Insurance is a contract in writing between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium , to pay the other party called insureda
fixed amount of money on the happening of certain event. Insurance indemnifies such assets and
income. Insurance business in India can be broadly divided into two categories such as life
insurance and general insurance (Non life insurance. But the article focuses on life insurance.

10
INSURANCE SECTORS

PI
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11
INSURANCE REGULATORY & DEVELOPMENT AUTHORITY ACT 1999
(IRDA)

It came into existence in December 1999. It is a statutory body which was framed to provide
license to private companies in insurance sector and to protect the right of policy holders.
SCOPE
The act was passed by the parliament in December 1999.
To permit private companies to enter the insurance market, Government has enacted
Insurance Regulatory & Development Authority Act, 1999.
The act provides for the establishment of the authority-
1. To protect the interest of holders of insurance policies;
2. To regulate, promote and ensure orderly growth of insurance industry;
3. For matters connected therewith or incidental thereto.
The act also sought to amend the following acts-
1. The insurance act 1938.
2. The life insurance corporation act, 1956.
3. The General Business (Nationalization) Act, 1972
The act applies to the whole of India including J&K stage.
The authority replaces controller under insurance act 1938.

CONSTITUTION OF IRDA
Insurance regulatory and development authority consists of the following members.
1. A chairperson;
2. Not more than five whole-time members; and
3. Not more than four part-time members to be appointed by the central
Government.

Members should be a person of Ability; Integrity; and Standing

12
 COMPANY PROFILE

Introduction to Reliance Insurance

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, 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 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 colossus- an 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 great stories of mutual respect and reciprocal gain in the Indian
market exchange for their trust, substantial return on their investments. It was to be the start of
one of Under Dhirubhais extraordinary vision and leadership, Reliance scripted one the greatest
growth stories in corporate history anywhere in the world, and went on the become Indias
largest private sector enterprise

13
Throughout 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.

About Reliance Life Insurance

Reliance Life Insurance offers you products that fulfill your savings and protection needs. Our
aim is to emerge a transnational Life Insurance of global scale and standard.

Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance
Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial
services companies, and rank among the top 3 private sector financial services and banking
companies. In terms of net worth Reliance Capital has interest in asset management and mutual
funds, stock broking, life and general insurance, proprietary investments, private equity and other
activities in financial services.
Reliance Anil Dhirubhia Ambani Group also has presence in Communications, Energy, Natural
Resources, Media, Entertainment, Healthcare and Infrastructure.

VISION & MISSION

Vision: Empowering everyone live their dreams.
Mission: Create unmatched value for everyone through dependable effective, transparent and
profitable life insurance and pension plans.
Our Goal: Reliance Life insurance would strive hard to achieve the 3 goals mentioned
below:
Emerge as transnational Life Insurer of global scale and standard Create best value for
Customers, Shareholders and all Stake holders Achieve impeccable reputation and credentials
through best business practices

14
VARIOUS PRODUCTS OF RELIANCE INSURANCE

Insurance Plans for Solutions for Individuals:

Taking time out from your daily schedule to plan your future is a necessary task. You could do
with some help, but who can help you?
Reliance Life Insurance is here with Solutions for Individuals, a series of plans that will help you
make wise investments, protect your family, secure your childs future and even chalk out a plan
for your retirement.
So what are you waiting for? Invest in one of Reliance Solutions for Individuals and pave the
way for a worry-free life!
Plans
a) Protection Plans

Protect your family even when youre not around by investing in Reliance Protection Plans.
Choose a limited period plan or a lifetime protection plan depending on your needs.

b) Saving & Investment Plans

Reliance Savings & Investment Plans help you to set aside some money to achieve specific goals
in life, which means that you can enjoy life and provide for your familys daily needs

c) Retirement plans

Invest today in Reliance Retirement Plans and save money to enjoy life even after retirement.
You will never have to depend on another person or make any compromises to maintain your
current lifestyle.

15
 d) Child Plans

Save systematically and secure your childs future needs by investing in Reliance Child Plans.
You can always be there for your child when he or she needs you

e) Savings & Investment Plan

Reliance Super Invest Assure is a complete plan which addresses your vital needs like
Flexibility, Security, Investment Return and Financial Planning. With all its key benefits, it is
here to ensure that there will always be more than you can ask for!

f) Total Investment Plan I Insurance

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

BIRLA SUNLIFE

About Birla Sun life Insurance Company Limited

Birla Sun Life Insurance pioneered the unique unit linked life insurance solutions in
India. Within 4 years of its launch, BSLI has cemented its position as a leading player in the
private life insurance industry. There has been focus on Investment Linked Insurance Products,
supported with protects to maintain leadership in product innovation. Multi Distribution
Channels- Direct Sales Force, Alternate Channels and Group offering convenient channels of
purchase to customers. Web- enabled IT systems for superior customer services. First to have
issued policies over the Internet. Strong fundamentals based on the Aditya Birla groups local
insight and Sun Life Financials global expertise.

VISION AND MISSION

16
Vision
To create long term value along with market leadership
Mission
To help people mitigate risks of life, accident, health and money at all stages and under all
circumstances.
Enhance the financial future of our customers, including enterprises.
Values
Integrity
Commitment
Passion
Seamlessness
Speed

VARIOUS PRODUCTS OF BIRLA SUNLIFE

a) Birla Sun Life Insurance Gold Plus

In this policy the investment risk in investment portfolio is born by the policy holder.

b) Retirement
Birla Sun Life Insurance Flexi Secure Life Retirement Plan II
Birla Sun Life Insurance Freedom 58

c) Children
Birla Sun Life Insurance Childrens Dream Plan

d) Rural
Birla Sun Life Insurance Bima Suraksha Super
Birla Sun Life Insurance Bima Dhan Sanchay
Birla Sun Life Insurance Bima Kavach Yojana

17
e) Riders
Birla Sun Life Insurance Accidental Death Rider
Birla Sun Life Insurance Accidental Death and Dismemberment Rider
Birla Sun life Insurance Term Rider
Birla Sun Life Insurance Critical Illness Rider
Birla Sun Life Insurance Waiver of Premium
Birla Sun Life Insurance Critical Illness Plus Rider
Birla Sun Life Insurance Critical Illness Woman Rider

18
 CHAPTER-3
REVIEW OF LITERATURE

19
 LITERATURE REVIEW

Armstrong, Ed and Buse (1996): Banks would add 5-10 percent to their after tax profits if
they aggressively pursue their insurance opportunity." The author develops a pro forma
statement for banks selling 12 different insurance items.

Crystal, Mary (1997): Bank marketing suggests more direct interaction with customers by
direct mail or personal contact. Doing it pro-actively and by alternative methods: call centers,
PC-banking, internet banking and supermarket banking. Using branding and other retail
marketing skills. Bankers have tried to cut down on personal contact and may have alienated
their customers.

Carrow Kenneth A (2001): Merger between Citicorp and Travelers abnormally impacted stock
prices of financial and insurance companies. Analysis of abnormal returns surrounding the
merger show that life insurance companies and large banks experienced significant stock price
increases, while the returns of stocks of smaller banks, health insurers, and property/casualty
insurers remain relatively unchanged.

Estrella, Arturo (2001): Mergers are likely to be most productive for banks and other financial
firms in the United States. The author acknowledges that the extent to which different business
activities are fundamentally distinct induces a tradeoff between diversification gains and loss of
efficiency. The research considers life insurance, property/casualty insurance, securities, and
commercial firms as potential matches for firms and concludes that potential diversification
gains arise from almost all combinations involving banking and insurance. The paper stands out
because it shows, unlike other earlier research, that property and casualty insurance companies
offer larger diversification gains to banks than life insurance companies.

Carrow Kenneth A. and Heron R. (2002): Financial Services Modernization Act of 1999
(FMA) affected stock prices of banks, thrifts, finance companies and insurance companies. The
study looks at stock excess returns across sectors and company size. The idea is that the passage
of the FMA opens doors for potential mergers and consolidations across banking, financial and

20
insurance sectors, translating into abnormal positive returns for businesses that are the likely
candidate for mergers and consolidation. The results of the study suggest that the largest returns
to the FMA passage were realized by large investment banks and insurance companies. The stock
prices of banks, both small and large, seemed to be unaffected by the new legislation while
thrifts, finance companies and foreign banks lost value.

Boros, Joan E. (2002): Merger of banks and insurers, heretofore independent, into a financial
supermarket with endless cross-selling potential. A combination of insurance and capital
markets products moving into a union and uniformity, or separate markets performing the same
functions. This could also be labeled as securitization of insurance risk and or insurancization
of financial risk.

Gjertsen, Lee Ann (2002): Insurance agents of New Jersey, Connecticut and Massachusetts
founded an association as Independent Insurance Agents and Brokers and have applied for a
charter for an association savings bank. The bank products are to be sold by the independent
insurance agents that own their own agencies. The bank is to be named Insurance.

21
 CHAPTER -4
RESEARCH METHODOLOGY

22
 RESEARCH METHODOLOGY

A project is like a journey and it is always better to have at least the faintest of ideas of the
probable direction of our destination. Initially we have to decide upon the general area of interest
or the aspect of the subject to inquire into. This decision is rather broad and not very precise. It is
crude indication of the purpose of the study and is of little help for further planning and
organization of the study.
Research Methodology is defined as a more systematic activity directed towards discovery and
the development of an organized body of knowledge. An efficient research contributes to the
evaluation of a proper decision, which ultimately affects the path the organization will choose.
The data collected is of paramount importance and hence the research process has to be effective
and an efficient one.

OBJECTIVES OF THE STUDY

The main objectives of preparing this research Report are:

1) To know about the comparative study of Reliance Insurance and Birla Sun Life
Insurance.
2) To know about the different plans available with the company.
3) To know about the customer awareness regarding the company.
4) To know about the fastest claim providing company.

RESEARCH DESIGN:

A research design is the overall plan or programmed of research. It is the general blueprint for
the collection, measurement and analysis of data. A good design id often characterized by
objective flexible, appropriate efficient, economic and so on. Generally, the design which
minimizes bias and maximizes the reliability of the data collected and analyzed is considered a
good design. Descriptive research is used in this study as the main aim is to describe
characteristics of the phenomenon or a situation

23
DATA COLLECTION

There are two kinds of sources of data.

1) Primary Data
2) Secondary Data

1) Primary Data: Primary data is the data collected specially for a specific purpose. The
methods used for its collection are personal discussion &questionnaire etc. The
questionnaire consisted of has 14 questions which are aimed to achieve the objective o
study. All questions are close ended.

2) Secondary Data: Secondary data consists of information that already exists. It has been
collected from books articles and from various websites.

SAMPLE SIZE

For my project the total 100 respondents from various levels has been taken for the survey. The
survey has taken place at some selected city of Haryana i.e. Ambala.

STATISTICAL TOOLS

For the purpose of the analysis, various tables and charts have been prepared. Data has been
analyzed with the help of percentage method

24
 LIMITATIONS OF THE STUDY

Due to shortage of time the studies conducted on very small i.e. based upon
material and information provided by the company.
Some of the officers were too busy to give a sincere response to investigation and
hence their response may not relate to real picture.
The findings of the research are limited to a particular area & cannot be applied to
all places.
As the human behavior is not constant so the results collected through
questionnaire may or may not apply to future period of time.
Due to biasness of data it is difficult to get the accurate information from the
respondents.
Because of inexperience of researcher it is difficult to collection the data.

25
 CHAPTER-5

DATA ANALYSIS AND FINDINGS

26
 DATA ANALYSIS

1. PEOPLE PREFRENCE FOR SAVING TOOL

Table 4.1
Saving instrument No. of respondents Percentage (%)
Bank 45 45%
Insurance 25 25%
P.P.F. 8 8%
Post office 14 14%
Other 8 8%
TOTAL 100 100

PEOPLE PREFRENCE FOR SAVING TOOL

8%
14% Bank
Insurance
45%
8% P.P.F.
Post office
Other
25%

Fig .No. : 4.1

Interpretation
It has been analyzed from the above figure that 45% people mainly prefer banking for
investment, whereas 25% for insurance, then 8% for P.P.F, and 14% for Post office and 8% other
option.

27
 2. OCCUPATION
Table 4.2
Respondent category No. of respondents Percentage(%)

Serviceman 25 25%

Businessman 30 30%

Shop-Keeper 25 25%

House-Wife 15 15%

Other 5 5%
Total 100 100

OCCUPATION

5
SERVICEMAN
15 25
BUSINESSMAN
SHOP-KEEPER
25 HOUSE-WIFE
30 OTHER

Fig .No. : 4.2

Interpretation
It has been analyzed from the above figure that 25% persons are serviceman,30% businessman,
25% shop-keeper,15% housewifes and 5% other respectively.

28
 3. PEOPLE INTERESTED IN INVESTING IN INSURANCE SECTOR

Table :4.3
Interested in Insurance sector No. of respondents Percentage(%)

Interested 82 82%

Uninterested 18 18%

TOTAL 100 100

PEOPLE INTERESTED IN INVESTING IN INSURANCE SECTOR

18%

Interested
Uninterested

82%

Fig No. 4.3

Interpretation
The above diagram show that only 18% people are interested in insurance sector and remaining
82% are uninterested.

29
 4. AWARENESS OF THE RELIANCE INSURANCE & BIRLA SUNLIFE
INSURANCE

Table 4.4
Insurance Company No. of respondents Percentage(%)

Reliance Insurance 52 52%

Birla Sun life 48 48%

Total 100 100

AWARENESS OF THE RELIANCE INSURANCE & BIRLA SUNLIFE INSURANCE

RELIANCE INSURANCE
48% 52% BIRLA SUNLIFE

Fig. No. 4.4

Interpretation
The above diagram shows that 52% are aware about Reliance Insurance and 48% people are
aware about Birla Sun Life.

30
 5. POLICY HOLDERS OF DIFFERENT COMPANIES

Table 4.5

COMPANIES No. of respondents Percentage(%)

Reliance Insurance 32 32%

Birla Sunlife 28 28%

Other 40 40%

Total 100 100

POLICYHOLDERS OF DIFFERENT COMPANIES

32%
40% Reliance Insurance
Birla Sunlife
Other

28%

Fig. 4.5

Interpretation
The above diagram shows that 32% people have Reliance Insurance, 28% have Birla Sunlife,
41% have other insurance companies policy.

31
 6. KNOWLEDGE ABOUT I.R.D.A.

Table 4.6
OPINION No. of respondents Percentage(%)

Yes 38 38%

No 62 62%

Total 100 100

KNOWLEDGE ABOUT I.R.D.A.

38%
YES
NO
62%

Fig No. 4.6

Interpretation
The above diagram shows that only 38% people know about Insurance Regulatory development
of India and 62% do not know it.

32
 7. KNOWLEDGE ABOUT RELIANCE AND BIRLA ULIP PLANS

Table 4.7
OPINION No. of respondents Percentage (%)

Yes 22 22%

No 78 78%

Total 100 100

KNOWLEDGE ABOUT RELIANCE AND BIRLA

ULIP PLANS

YES
22% NO

78%

Fig No. 4.7

Interpretation
The above diagram shows that only 78% people knowledge about ULIP plans of Birla and
Reliance Insurance company and 22% people dont have knowledge about ULIP plans of Birla
and Reliance Insurance company.

33
 8. ULIP PLANS OF RELIANCE INSURANCE CO.

Table 4.8
Plans No. of respondents Percentage(%)

Saving & Investment 20 20%

Retirement Plan 30 30%

Child Plan 20 20%

Money guarantee 30 30%

Total 100 100

ULIP PLANS OF RELIANCE INSURANCE CO

20%
30% Saving & Investment
Retirement Plan
Child Plan
30% Money guarantee
20%

Fig No. 4.8

Interpretation
The above diagram shows that 30% of respondents have knowledge about retirement and money
guarantee plans of Reliance Insurance and 20% of respondents have knowledge about saving &
investment and child plan plans of Reliance Insurance.

34
 9. ULIP PLANS OF BIRLA SUNLIFE INSURANCE
Table 4.9
Plans No. of respondents Percentage(%)

Gold Plus 18 18%

Retirement Plan 32 32%

Child Plan 28 28%

Dream Plan 22 22%

Total 100 100

ULIP PLANS OF BIRLA SUNLIFE INSURANCE

22% 18%
Gold Plus
Retirement Plan
Child Plan

28% 32% Dream Plan

Fig. 4.9
Interpretation
The above diagram shows that 32% of respondents have knowledge about retirement plan of
Birla Sun life, 28% of respondents have knowledge about child plan of Birla Sun life, 22% of
respondents have knowledge about dream plan of Birla Sun life and 18% of respondents have
knowledge about Gold plus of Birla Sun life.

35
 10.MAXIMUM RETURN POLICIES

Table 4.10

Insurance Company No. of respondents Percentage(%)

RELIANCE INSURANCE 55 55%

BIRLA SUNLIFE 45 45%

TOTAL 100 100

MAXIMUM RETURN POLICIES

RELIANCE INSURANCE
BIRLA SUNLIFE
45%
55%

Fig. 4.10
Interpretation
This table and diagram shows that 55% respondents says that reliance insurance is providing
maximum returns on their policy than the Birla sun life insurance.

36
 11.MAXIMUM TAX BENEFITS

Table 4.11

Insurance Company No. of respondents Percentage (%)

Reliance Insurance 58 58%

Birla Sun life 42 42%

Total 100 100

MAXIMUM TAX BENEFITS

RELIANCE INSURANCE
BIRLA SUNLIFE
42%
58%

Fig. 4.11
Interpretation
This table and diagram shows that 58% respondent says that Reliance Insurance is providing
maximum tax benefits on their policy than the Birla Sun Life.

37
 12.FASTEST CLAIM PROCESSING

Table 4.12

Insurance Company No. of respondents Percentage(%)

Reliance Insurance 60 60%

Birla Sunlife 40 40%

Total 100 100

(Source: Questionnaire)

FASTEST CLAIM PROCESSING

RELIANCE INSURANCE

40% BIRLA SUNLIFE

60%

Fig. 4.12

Interpretation
This table and diagram shows that 60% respondents say that Reliance Insurance is providing
maximum returns on their policy than the Birla Sun Life.

38
SATISFICATION WITH SERVICES PROVIDED
Table 4.13

OPINION No. of respondents Percentage(%)

RELIANCE LIFE INSURANCE 89 89%

BIRLA SUN LIFE 11 11%

TOTAL 100 100

(Source: Questionnaire)

SATISFICATION WITH SERVICES PROVIDED

11%
RELIANCE LIFE INSURANCE
BIRLA SUN LIFE

89%

Fig. 4.13

Interpretation
The above diagram shows that only 89% people are satisfied with the services provided by
Reliance life insurance companies and 11% people are satisified with the services provided by
birla sunlife insurance companies.

39
 FINDINGS

Maximum numbers of persons are serviceman, shopkeeper, businessman, housewife

and other respectively.
People mainly prefer banking for investment, then post office, then insurance, and
lastly PPF and other option.
Only 18% people are interested in insurance sector and remaining 82% are
uninterested.
Reliance Insurance captures the market share of 24%, Birla Sun Life 17% and the
remaining share is captured by the other insurance companies.
52% are aware about Reliance Insurance and 48% people are aware about Birla Sun
Life in the area of Yamuna Nagar district.
55% are satisfied with the Reliance Insurance, 35% are satisfied with the Birla Sun
life and remaining 10% are satisfied with the other insurance companies.
60% people say that Reliance Insurance is providing good services and according to
40% people Birla Sun life is providing the good services.
38% people know about Insurance Regulatory development of India and 62% do not
know it.
34% know about the Reliance Insurance and remaining do not know about it.
40% respondents are interested Reliance Insurance remaining do not know about it.
55% respondents say that Reliance Insurance is providing maximum returns on their
policy than the Birla Sunlife.
58% respondents say that Reliance Insurance is providing maximum tax benefits on
their policy than the Birla Sunlife.
60% respondents say that Reliance Insurance is providing maximum returns on their
policy than the Birla Sunlife.

40
CHAPTER-6
CONCLUSION

41
 CONCLUSION

This study titled Study of Consumers Perception about Life Insurance Policies enables the Life
Insurance Companies to understand how consumers perception differs from person to person.
52% are aware about Reliance Insurance and 48% people are aware about Birla Sun Life in the
area of Yamuna Nagar district The response of the insurance companies has been very positive
and within a short span on time, the Indian insurance market scenario has seen a perceptible
change in terms of improved customer service benchmarks and introduction of innovative and
tailors made products. The Company should emphasis on insurance plan advertisement, because
at present company main focus on conventional product advertisement. Insurance companies
also make segment for small income people and more and more advisors are needed so that the
market can be covered at large.

42
 CHAPTER-7
SUGGESTIONS

43
 SUGGESTIONS

Company should emphasis on insurance plan advertisement, because at present company

main focus on conventional product advertisement.
Company also segment for small income people. Because company mainly plan for
middle and high income people group. If company enters in this segment then company
can capture a large part of rural market.
Company should also change the commission structure of F.C., because in initial year
commission is very high as compare to remaining year. So F.C. does not focus on
remaining year and many policies lapsed.
More and more advisor need to made so that the market can be covered at large.
During my survey I contact to people like doctors lawyers, bank manager, and high
profile people. But according to my observation these people are not suitable because
they are not interested in such kind of work. Therefore people doing clerical jobs,
graduates unemployed people, who are in low income group, should be taken into
consideration.

44
BIBLIOGRAPHY

45
 BIBLIOGRAPHY

Books
Nalini Prave Tripathy, Pravir pal, Insurance theory and practices TMH 2007
C.R. Kothari, Research Methodology, 2nd Edition, New age international Publications.
Anand Ganguly, Insurance Management, New Age International Publications

Magazines
Indian Outlook
India Today
Insurance Sector Journals

Website
www.relianceinsurancae.com
www.birlasunlife.com
www.irda.org

References

Armstrong, Ed and Buse, P. (1996) Youve got the green light, whats it worth? ABA
Banking Journal, Vol. 88, Sept., 13-18.

Crystal, Mary (1997). That was then, this is tomorrow. Bank Marketing, Vol. 30, 1,
Dec.97/Jan.98, 28-52.

Johnston, Jarrod and Madura J. Valuing the potential transformation of banks into financial
service conglomerates: Evidence from the Citigroup merger The Financial review 35 (2000):
17-36.

46
Carrow Kenneth A. Citicorp-Travelers Group merger: Challenging barriers between banking
and insurance. Journal of Banking and Finance 25 (2001): 1553-1571.

Estrella, Arturo. Mixing and matching: Prospective financial sector mergers and market
valuation, Journal of Banking and Finance 25 (2001): 2367-2392.

Carrow Kenneth A. and Heron R. Capital market reactions to the passage of the Financial
Services Modernization Act of 1999. The Quarterly Review of Economics and Finance 42
(2002): 465-485.

Boros, Joan E. (2002). Are Convergence Products Happening? National Underwriter, Life &
Health/Financial Services Ed., May 27, 2002.

Gjertsen, Lee Ann (2002). Insurance Agents Thrift Seeks OK to Widen Reach. The American
Banker, May13, 2002.

47
Annexure

48
 QUESTIONNAIRE

Name:

Age :

Gender :

Address :

Contact No. :

Q.1 What do you prefer for saving tool?

Bank Post office

P.P.F Insurance

Other

Q.2 What is your occupation?

Serviceman Shop-Keeper

Businessman House- Wife

Other

49
Q.3 Are you interested in investing in insurance section?

Interested Uninterested

Q.4 Do you have Awareness of the reliance insurance and Birla Sunlife insurance?

Reliance Insurance Birla Sunlife

Q.5 From which company do you have policies?

Reliance Insurance Birla Sunlife

Others

Q.6 Do you have knowledge about IRDA?

Yes No

Q.7 Do you have knowledge about Reliance and Birla ULIP Plans ?

Reliance ULIP Plans Birla ULIP Plans

Both

Q.8 Which ULIP plan of Reliance Insurance you have ?

Saving & Investment Retirement plan

Child plan Money guarantee

50
Q.9 Which ULIP plan of Birla Sunlife Insurance you have?

Gold Plus Retirement plan

Child plan Dream Plan

Q.10 How you will rate performance of Reliance Life Insurance and Birla Sun Life Insurance ?

Reliance Life Insurance Birla Sun Life Insurance

Excellent Excellent

Good Good

Fair Fair

Poor Poor

Q.11 Which company gives you maximum return?

Reliance Insurance Birla Sunlife

Q.12 which companys policies give you the maximum tax benefits?

Reliance Insurance Birla Sunlife

Q.13 Which company gives fastest claim processing?

Reliance Insurance Birla Sunlife

51
Q.14 Are you satisfied with the services provided by the Insurance Company?

Yes No

ANY SUGGESTION OR QUERY

52