A
PROJECT REPORT
ON
“MARKETING STRATEGIES OF PRIVATE LIFE INSURANCE
COMPANIES IN COMPARISON OF LIFE INSURANCE
CORPORATION ( LIC)”
Project Report submitted towards partial fulfillment of
two years MBA Degree program
Of
Sikkim Manipal University
2011-2013
Submitted by:
Mohit Mehta
521117481
Submitted to
Prof. Ashok Jain
IICE
i
ACKNOWLEDGMENT
It gives me immense pleasure and a sense of honor to express my feeling of gratitude
to all those who have helped me in the successful competition of the present project.
First and foremost I express my deep sense of thankfulness to Mr. Anupam Agarwal
(Senior Territory Manager) of Reliance Life Insurance Co. Ltd. Banswara. I am also
thankful to Mr. Ravindra Kumavat, Ms Ranjana Kothari ( Sales Manager) in Reliance
for his valuable co-operation and guidance in undertaking this work.
My warm acknowledgment is also due to all staff members of Reliance Banswara
who took keen interest in extending necessary co-operation at various stages during the
study.
I can’t refrain my humble thanks to Prof. Ashok jain (Director, IICE College
Udaipur) and to the Management of IICE who gave me to continuous encouragement and
instructions.
I express my humble thanks to Jai shree jain ,Coordinator MBA for their support.
In end, I would like to thank to each of them who directly or indirectly helped in completion
of the project.
Mohit Mehta
MBA 4th SEM
ii
PREFACE
“Success comes with knowledge & knowledge is comes with training.”
To excel in a any field practical training is an integral part to imply theoretical studies
to a practical approach it makes the individual to the actual practical conditions. Which could
have been impossible to be tough in a classroom ? A trainee learnt dealing with the worker
and management- working environment along with operational skills.
Insurance ranks as one of the most important industry in any part of the world. It is
also an industry where competitors drive excellence. This is why the entry in India of foreign
insurers, as minority partners in domestic joint ventures, has bought the hope that market will
reach a new level.
I have tried to do an analytical study on advisor’s perception towards life insurance
market in Udaipur. In this study I tried to find out those facts, which do matter for a advisor
for doing this job in insurance sector.
Mohit Mehta
MBA 4th SEM
iii
Contents
Page no
S. NO.
1.
CHAPTER
 Front page
1
 Acknowledgement
2
 Preface
3
 Executive Summary
5
Introduction of the Title
10
 Objective of the study
2.
3.
Introduction of Industry and Company
13
 Industry Profile
18
 Company Profile
23
 Introduction of Company
28
 Company’s Product ( Plan )
30
Conceptual Framework & Research methodology
38
 Marketing Research Objective
41
 Research Objective
45
 Scope of the Conclusions and Findings study
48
4.
Conclusions and Findings
51
5
Appendixes
57
6.
Bibliography
58
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EXECUTIVE SUMMARY
LIFE INSURANCE IN INDIA
1. INTRODUCTION
With such a large population and the untapped market area of this population
Insurance happens to be a very big opportunity in India. Today it stands as a business
growing at the rate of 15-20 per cent annually. Together with banking services, it adds about
7 per cent to the country’s GDP .In spite of all this growth the statistics of the penetration of
the insurance in the country is very poor. Nearly 80% of Indian populations are without Life
insurance cover and the Health insurance. This is an indicator that growth potential for the
insurance sector is immense in India. It was due to this immense growth that the regulations
were introduced in the insurance sector and in continuation “Malhotra Committee” was
constituted by the government in 1993 to examine the various aspects of the industry. The
key element of the reform process was Participation of overseas insurance companies with
26% capital. Creating a more efficient and competitive financial system suitable for the
requirements of the economy was the main idea behind his reform.
Since then the insurance industry has gone through many sea changes .The
competition LIC started facing from these companies were threatening to the existence of
LIC.since the liberalization of the industry the insurance industry has never looked back and
today stand as the one of the most competitive and exploring industry in India. The entry of
the private players and the increased use of the new distribution are in the limelight today.
The use of new distribution techniques and the IT tools has increased the scope of the
industry in the longer run.
2. A BRIEF HISTORY
The origin of insurance is very old .The time when we were not even born;
man has sought some sort of protection from the unpredictable calamities of the nature. The
v
basic urge in man to secure himself against any form of risk and uncertainty led to the origin
of insurance. The insurance came to India from UK; with the establishment of the Oriental
Life insurance Corporation in 1818.The Indian life insurance company act 1912 was the first
statutory body that started to regulate the life insurance business in India. By 1956 about 154
Indian, 16 foreign and 75 provident firms were been established in India. Then the central
government took over these companies and as a result the LIC was formed.
Since then LIC has worked towards spreading life insurance and building
a wide network across the length and the breath of the country. After the liberalization the
entrance of foreign players has added to the competition in the market.
3. INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI
Governor was formed to evaluate the Indian insurance industry and give its
Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies Only one State Level Life Insurance Company should be allowed to
operate in each state It was after this committee came into affect the regulatory body for
insurance sector was formed with the name of IRDA
IRDA: The IRDA since its incorporation as a statutory body has been framing regulations
and registering the private sector insurance companies. IRDA being an independent statutory
body has put a framework of globally compatible regulations.
4. IMPACT OF LIBERALIZATION
The introduction of private players in the industry has added to the colors
in the dull industry. The initiatives taken by the private players are very competitive and have
given immense competition to the on time monopoly of the market LIC. Since the advent of
the private players in the market the industry has seen new and innovative steps taken by the
players in this sector.
The new players have improved the service quality of the insurance. As a
result LIC down the years have seen the declining phase in its carrer. The market share was
vi
distributed among the private players. Though LIC still holds the 75% of the insurance sector
but the upcoming natures of these private players are enough to give more competition to
LIC in the near future. LIC market share has decreased from 95% (2002-03) to 81 %( 200405).The following companies has the rest of the market share of the insurance industry.
5. CURRENT SCENARIO OF THE INDUSTRY
INSURANCE MARKET IN INDIA
India with about 200 million middle class household shows a huge
untapped potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for global insurance
majors. The insurance sector in India has come to a position of very high potential and
competitiveness in the market. Innovative products and aggressive distribution have become
the say of the day.
Indians, have always seen life insurance as a tax saving device, are now suddenly turning to
the private sector that are providing them new products and variety for their choice. Life
insurance industry is waiting for a big growth as many Indian and foreign companies are
waiting in the line for the green signal to start their operations. The Indian consumer should
be ready now because the market is going to
give them an array of products, different in price, features and benefits. How the customer is
going to make his choice will determine the future of the industry.
CUSTOMER SERVICE
Consumers remain the most important centre of the insurance sector. After
the entry of the foreign players the industry is seeing a lot of competition and thus
improvement of the customer service in the industry. Computerisation of operations and
updating of technology has become imperative in the current scenario. Foreign players are
bringing in international best practices in service through use of latest technologies. The one
time monopoly of the LIC and its agents are now going through a through revision and
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training programmes to catch up with the other private players. Though lot is being done for
the increased customer service and adding technology to it but there is a long way to go and
various customer surveys indicate that the standards are still below customer expectation
levels.
DISTRIBUTION CHANNELS
Till date insurance agents still remain the main source through which
insurance products are sold. The concept is very well established in the country like India but
still the increasing use of other sources is imperative. It therefore makes sense to look at well
balanced, alternative channels of distribution.
LIC has already well established and have an extensive distribution
channel and presence. New players may find it expensive and time consuming to bring up a
distribution network to such standards. Therefore they are looking to the diverse areas of
distribution channel to have an advantage. At present the distribution channels that are
available in the market are:
 Direct selling
 Corporate agents
 Group selling
 Brokers and cooperative societies
 Bancassurance
RURAL MARKETING
Rural India seems to have an appetite for mobile phones, computers, and cars
and to add to it we have insurance. In India with the private players having entered
into the insurance industry, the expected explosion in job opportunities may not actually
happen but for them the catchments area is the opportunities in the rural India.
In India the insurance business can be said to be "a marathon, not a sprint". This is
because of the nature of the business being long term. With merely two years of the industry
being opened, not surprisingly, the new comers are making losses. The public sector
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companies, notably the LIC, have gained in strength, thanks to the deepening of the market
consequent to the awareness created by the new companies. However this does not deterred
the private sector, which knows know that the race is a marathon, not a sprint. However it
seems that they if not anything, are only increasing their spending, though only out of the
capital. Today, there are 18 insurance companies in India excluding the PSU’s, with 12 in the
life insurance business and the rest in non-life .As insurance companies go more and more
rural in search of business, there will be opportunities in the rural sector. Those who
understand rural India better will be in demand.
INFORMATION TECHNOLOGY AND INSURANCE
In the insurance industry today, there is a clear trend away from selling a
broad range of products to a large volume of customers in a one –size-fits-all manners.
Instead of focusing on their different products lines as silos (i.e., life, property and casualty
etc) insurers are looking for ways to offer highly targeted insurance products that are tailored
to the individuals customers with the highest propensity to buy them.
There is a evolutionary change in the technology that has revolutionized
the entire insurance sector. Insurance industry is a data-rich industry, and thus, there is dire
need to use the data for trend analysis and personalization. With increased competition
among insurers, service has become a key issue. Moreover, customers are getting
increasingly sophisticated and tech-savvy. People today don’t want to accept the current
value propositions, they want personalized interactions and they
look for more and more features and add ones and better service.
The insurance companies today must meet the need of the hour for more
and more personalized approach for handling the customer. Today managing the customer
intelligently is very critical for the insurer especially in the very competitive environment. .
However, to personalize interactions, insurers are required to capture customer information
in an integrated system.
The insurance sector remains a very competitive market and those
companies that are able to best utilize their data and provide their customer with the most
personalized options will have the distinct competitive advantage. The insurers that come up
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to the top will be those who leverage the appropriate technology solutions effectively in order
to foster customer loyalty, attract new customers and improve operational efficiency by
providing common information across their lines of business.
MERGERS AND AQUISITIONS
This is an era of mergers and acquisitions. Private companies
including MNC’s are amalgamating the world over to get more competitive edge.
The insurers are doing enough to raise the level of risk awareness or they merely content to
compete in the markets organized and established. However sooner or later the private sector
players will have to put in place strategies aimed not at winning the existing accounts of the
public players but at diversifying markets penetration as a whole. The private players in the
future would have to turn their attention to working in the unorganized and under served
markets.
IMPACT OF BUDGET IN INSURANCE
The 2005-06 Budget has dampened the spirit of insurance companies. Hardly any changes
have been made in the general insurance sector. The change in the tax structure may have
some impact on the life insurers. With the removal of the Section 88 relief there is not much
for the insurance players to cheer for “ Winners don’t do different things. They do things
Differently”
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CHAPTER 1
INTORDUCTION & OBJECTIVE OF TITLE
Introduction of Title :
By entering of private insurers with an altogether new agency force, all
ready to hawk freshly designed insurance policies. And the market scene - a government
owned established insurance entity -the Life Insurance Corporation (LIC) with a field force
of over 6,00,000 agents and more than 80 products to choose from.
Its almost four year since private insurers began their operations. In a scenario
where LIC called the shots all these years, how far have private insurers been able to make
inroads after almost a year since the opening of the sector. And are their sales force (called
life advisors or insurance consultants) successful in pushing their products inspite of the
security factor -the ‘government guarantee’ label attached to LIC products - Insuremagic
makes an attempt to find out.
In this changing scenario “Initial apprehensions are bound to be. But slowly
times are changing. People are open to tailor-made products ” Most of the individuals
approached by private insurers were existing LIC customers. But ask them what made them
buy insurance and the reply is ‘for tax purposes’. The need for insuring ones life after
evaluating the growing requirements over a period of time was never felt.
Blame it on the lack of information available then or the agents who were more
keen on higher commissions than educating prospects. Which is why not much thought was
given to choosing the right risk cover. “Today it is observed that either most of the prospects
we have approached are under insured or the risk covers bought by them do not suit their
needs” . While it is difficult to match the number of products LIC has, private insurers have
come up with products that allow mix n match and combinations that can be worked out to
suit individual requirements. LIC products allowed little flexibility.
xi
Competition, no doubt is getting rife. Private insurers are concentrating on need based
selling. “Instead of pushing policies down the throat private insurers educate the customer
and offer guidance on how much insurance the individual needs, an approach that is slowly
paying off,”
The customer service - an hitherto neglected area by LIC and private insurers
realized it is an area they could score over the behemoth easily. LIC with the entry of private
insurers flagged off a mass computerization drive that would connect each of its branches
across the country to facilitate among others premium payments online.
Considering the reputation LIC has built over a period of time attached with the
most saleable tag of government guarantee, and the deep- rooted loyalty reposed in it is
comprehensible which manifests in its policy sales.
‘Private insurers have been able to make a dent in the market in the first year of
their operations garnering a market share of a mere 0.02 per cent of the Rs 36,070.4 crore
market. And four private life insurers together have sold 10,000 insurance policies during the
first year. Comparatively LIC issued two crore risk covers during the said period inspite of
the entry of private insurers, including 3.45 lakh new annuity policies’ For private insurers
the first year has been well begun. The insurance sector claimed more newsprint than any
other and with tailor made policies, riders/add-ons, publicity campaigns etc the interest has
caught up considerably. The awareness building exercise undertaken by private insurers has
paid off.
Objective of the Title :
 To Build Customer Loyalty
 To Innovate and Improve Distribution Channel
 To Enhance Post Sales Servi
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CHAPTER 2
INTRODUTION OF INDUSTRY & COMPANY
INDUSTRY POFILE
Overview of Insurance Industry :
It’s a business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per
cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds
available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian
population are without life insurance cover, health insurance and non-life insurance continue
to be below international standards. And this part of the population is also subject to weak
social security and pension systems with hardly any old age income security. This itself is an
indicator that growth potential for the insurance sector is immense.
A well-developed and evolved insurance sector is needed for
economic development as it provides long term funds for infrastructure development and at
the same time strengthens the risk taking ability. It is estimated that over the next ten years
India would require investments of the order of one trillion US dollar. The Insurance sector,
to some extent, can enable investments in infrastructure development to sustain economic
growth of the country.
Insurance companies not only provide risk cover to infrastructure
projects, they also contribute long-term funds. In fact, insurance companies are an ideal
source of long term debt and equity for infrastructure projects. With long term liability, they
get a good asset- liability match by investing their funds in such projects.
IRDA regulations require insurance companies to invest not less than
15 percent of their funds in infrastructure and social sectors. International Insurance
companies also invest their funds in such projects.
xiii
INSURANCE DEFINATION
:
(a) From the viewpoint of the Individual : Insurance is an economic device
whereby the individual can substitute a small relatively definite cost
(premium) for a large uncertain financial loss that would have to be
borne if insurance was not available.
(b) From the viewpoint of the Society : Insurance is a mechanism which
relieves the individual citizens and the industry from the burden of
carrying on themselves the various risks , they are likely to face from day
to day.
THE RISK : There is risk insured against the policyholder .
THE INSURED : is the person or company entering into insurance contract.
THE INSURER : is the insurance company which has contracted with the insured to provide
cover for the risk insured against.
TYPES OF INSURANCE BUSINESS :
 LIFE INSURANCE
 NON-LIFE INSURANCE (GENERAL INSURANCE)
 THE IRDA ACT,1999 :
 The IRDA Act was passed in 1999, providing for the establishment of the IRDA as a ten
member body, with the Chairperson, and nine other members, of whom not more than
five will be whole time members. The IRDA is the Authority to regulate the insurance
xiv
industry in India and has the powers to issue registration certificates and licences, lay
down codes of conduct, monitor the performance of insurers and other persons referred to
in the Insurance Act and to make regulations to carry out its purposes.
 The IRDA is to be advised by the Insurance Advisory Committee, to consist of not more
than 25 members. This committee is to be appointed by the IRDA and will represent the
interests of commerce, industry, transport, agriculture, surveyors, agents, organizations
engaged in safety and loss prevention, research bodies and employees’ association in the
insurance sector.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
( IRDA )

The Insurance Act, 1938 provided that the Government should appoint a Controller of
Insurance, to ensure that insurance companies registered under the Act, comply with the
various provisions of the Act. His duties included approval of the terms and conditions of
various plans being offered by the companies, including the adequacy of the bases of
premia, scrutiny of the various returns on investments, annual accounts, periodical
actuarial valuations etc. are required to be submitted by the companies. The Insurance
Regulatory And Development Authority Act,1999 came into being effective 19th April
2000
OBJECTIVE OF IRDA :
“ An Act to provide for the establishment of an Authority to protect the
interests of holders of insurance policies, to regulate , promote and ensure orderly growth of
the insurance industry and for matters connected therewith or incidental thereto and further to
amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956.
xv
FUNCTIONS OF IRDA :
 To regulate , promote and ensure orderly growth of the insurance and reinsurance
business
 Issue a certificate of registration, renew, modify, withdraw, suspend or cancel such
registration to the applicant i.e. insurance company
 Prepare a code of conduct for the agents, surveyors and loss assessors or the
intermediaries who take part in development of insurance business
 To exercise all powers and perform all functions of the Controller of Insurance under
Insurance Act 1938
 To promote efficiency in the conduct of insurance business
 To promote and regulate professional organizations connected with the insurance
business
Why Life Insurance
Life Insurance has come a long way form 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 established, it was realized what a useful tool it was
for a number of situations including Temporary needs / threats:
The original purpose of life insurance remains an important element, namely
providing for replacement of income on death etc.
 Regular Savings:
xvi
Providing for one's 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.
 Investment:,
the building up of savings while safeguarding it from the ravages inflation.
Unlike regular saving products, investment products are traditionally lump sum investments,
where the individual makes a one off payment.
 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 one's old age.
 Tax Benefits:
A two-fold objective of life insurance which the government will wish to
encourage, is to make provision against untimely death of the wage-earner and also to effect
saving for the future.
INDUSTRY PROFILE
(LIFE INSURANCE)
WHAT IS INSURANCE
Insurance is a sharing device. The losses to assets resulting natural calamities (Like fire,
flood, earthquakes, accidents etc.) are met out of common pool contributed by large number
of persons who are exposed to similar risks.

Insurance is the method of spreading and transfer of risks

The fortunate many who are exposed same or similar risks share loss for
the unfortunate few.

Assets (created in expectation of future need /benefits) have a value.
xvii

Loss of assets deprives the owner of the expected benefits.

Insurance in this context is mechanism that to reduce the adverse
consequences due to loss of assets.
Classification of insurance:
Insurance business can be divided into basic categories.
1. life insurance
2. non-life insurance
life insurance is concerned with making provision for a specific event happing to the
individual non life insurance is commonly concerned with the provision for a specific.
Event, which affect a property such as fire, flood, theft etc.
What is life insurance?
Life insurance is an agreement between the person insured and the insurer. Under the term of
a life insurance. Contract the insurer promises to pay a certain sum on the happing of the
event insured against to a beneficiary in exchange for premium payments.
+
Usually, the insurance contract provides for the payment of and amount on the date of
maturity or at specified dates at periodic internals, or in the event of unfortunate death, if it
occurs earlier. Life insurance is universally acknowledged as a tool to eliminate risk, replace
uncertainty with certainty. And ensure timely aid for the civilized world’s partial solution to
the financial problems caused by death.
Why life insurance is required:
Life insurance cannot be and should not be compared with any other form of investment. It
provides a life long benefit, with returns when it is most required at right time.
Replacement of income
One prime reason for buying life insurance is to replace the income lost in the event of
untimely death of the life insured. When this regular income stops, the proceeds from a life
insurance policy can be used to support the family members.
Maintenance of lifestyle:
xviii
In case of the death life insured, family members are often hard-pressed trying to arrange for
funds those can maintain of living that they have grown. Accustomed to life insurance offers
protection against such an unfortunate eventuality.
Expenses due to pre-mature death:
Life insurance can play a crucial role to pay off any debt left behind by the person insured.
For example car loans, medical bill, mortgages, credit card payment, etc. are often left in case
of sudden death. These obligation can be met with life insurance without any depletion in
family assets.
Planning for important event life children’s marriage etc.
With the cost of living going up day by day prudent people would go for a life insurance as
the most cost effective means to ensure that the important mile stone in their children’s lives
are not hampered by the uncertainties of life.
Investment:
Life insurance can also be an investment instrument apart from ten benefits that are also
allowable. By the government of India for investing to life insurance some life insurance
policies offer returns on investment along with the cover for life. Life can help you with
long-term financial goals.
Charity:
Life insurance is great avenue to help. A charitable cause, or people with
philanthropic desire but short of means, life insurance provides the option to contributes
much more than is possible by the life insured.
Benefits of life Insurance:

superior to any other saving plan:life insurance policies offer protection against the risk of death which is nit available
in any other contemporary saving plan. In the event of death of a policies holder’s the
insurance makes available the full sum assured to the policies holders near and dear ones.
In comparison any other saving plan would amount to the total saving accustomed till
date. If the death occur prematurely, such saving can be much lesser than the sum
assured.

Encourage thrift:- .A saving deposits can easily be withdrawn. The payment of life
insurance premiums, however is considered sacrosanct and is viewed with the same
seriousness as the payment of interest on mortgage. Thus, a life insurance policy in
fact brings about compulsory
xix

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
creditors of the assured by effecting a valid assignment.

Administering the legacy for beneficiaries: - speculative or unwise expenses can
quickly cause the squandered. Several policies have foreseen this possibility and
provide for payments over a period of years or in a combination of installments and
lump sum amounts.

Ready marketability and suitability for quick borrowing:- a life insurance policy can
after a certain time period (generally three years)
Most cost effective means to ensure that the important milestones in their
children’s lives are not hampered by the uncertainties of life.

Investment: - life insurance also be an investment. Apart from the tax benefits that are
also allowable by the government of India for investing in life insurance, some life
insurance policies offer returns on investment along with the cover for life. This can
help you with long-term financial goals.

Charity:- life insurance is a great avenue to help a charitable cause. For people with
philanthropic desire but short of means, life insurance provides the option to
contribute much more than is possible by the life insured.

Critical illness benefit:- many policy can also provide for cover against
critical illness.
Hospital cash benefit:- many policies can also provide for covering the hospitalization
expenses, along with cover for life.


Tax benefit:- under the Indian income tax act, tax relief under section 88 is
available for premium paid and section 1010D benefit are available for
death/ maturity/surrender proceeds from a life insurance policy.
xx
COMPANY PROFILE
(RELIANCE LIFE INSURANCE)
“RELIANCE INDUSTRIES LIMITED”
Type
:
Private Limited Company
Headquarter
:
Chennai (India)
Industry
:
Life Insurance
Products
:
Individual & group insurance plans
Anil Ambani group & AMP Sanmar -
1st August 2005.
Reliance Life to get aggressive IRDA’s recognition – 2nd February 2006.
Reliance Life Insurance gets ISO 9001-2000 certification- 28th March 2007.
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private
sector financial services companies, and ranks among the top 3 private sector financial
services and banking companies, in terms of net worth
xxi
COMPANY PROFILE
(RELIANCE LIFE INSURANCE)
Reliance life insurance was started in 2003 by acquiring
AMP SANMAR LIFE INSURANCE COM. Reliance life
insurance Company limited is a part of reliance capital ltd. of the Reliance - ANIL
DHIRUBHAI AMBANI group. Reliance capital is one of India’s leading private sector
financial services companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth. Reliance capital has interests in asset management
and mutual funds, stock broking, life and general insurance, proprietary investments, private
equity and other activities in financial services.
Reliance capital limited (rcl) is a non-banking financial company (nbfc) registered
with the reserve bank of India under section 45-ia of the reserve bank of India act, 1934.
Reliance capital sees immense potential in the rapidly growing financial services
sector in India and aims to become a dominant player in this industry and offer fully
integrated financial services.
About NIS Sparta
NIS Sparta is Asia's largest Performance Enhancement Solutions Organization which
facilitates achievement of ‘mission critical goals’ by impacting people and processes.
A part of the Reliance Group, NIS Sparta has provided training and consulting solutions in
over 550 organizations to over 10,00,000 professionals across 10 countries and in 18
languages.
NIS Sparta, is a Reliance-Anil Dhirubhai Ambani Group Company and Asia’s largest
training and learning solutions provider to organisations and individuals. We partner
organisations in achieving their mission critical goals through enhanced effectiveness of their
people and processes, using proven methodologies.
xxii
NIS Sparta offers customized solutions for Top management, Middle management and
Supervisory level; our training modules are based on Knowledge development, Behaviour
development, Skill development and Process design and development.
At NIS Sparta, we strongly believe that our people are our strength. Hence, we are committed
to investing in our people. While technology, infrastructure and products can be duplicated, it
is people who are the key differentiators in the growth of any organization.
We have over 500 consultants from diverse educational backgrounds - Engineers, Post
Graduates, Management Graduates, Sociologists, Psychologists, Economists, Teachers and
Fellows of Insurance Institute of India.
NIS Sparta in the Insurance Sector
NIS Sparta has developed and executed various training modules for the private Life and
Non-Life insurance companies.
In addition to the programmes, NIS Sparta through its network of over 26 centres delivers
Insurance Regulatory Development Authority, prescribed 100 hours training (classroom and
online), which helps prospective insurance advisors attain a good understanding of the
subject of insurance, thereby enabling them to service the needs of the customers effectively
and clear the licensing examination.
Over the last 6 years, NIS Sparta has trained over150,000 Insurance Advisors and Company
employees
xxiii
Scope of Interventions in the Insurance Training sector

Activation of Advisors

Increasing Average Case Size

Self-Paced Online Learning

Persistency rate

Product Positioning and Need Based Product Pitch

Quality Recruitment

Handling and dealing with Rejection

Sales Funnel Management

Creating and Managing an Agency

Employee and Associate Induction

Transitioning from Team Member to Team Leader

Licensing Training
Learning Solutions focus:
Some of the modules developed and delivered by NIS Sparta are:

Advisor Sales Training (Basic and Advanced)

Product Training

Business process and Underwriting training

Advanced Selling skills

Dealing with HNI’s

Financial Planning
xxiv

Front Line Manager Induction training

Coaching skills

Experiential Training Programmes

Middle and Senior Management Programmes

Domain training

Team Building

Handling Sales to Institutions (Group Products)

Managing Channel Partners

Call Center Training
KEY EMPLOYEES OF RELANCE LIFE INSURANCE:-

CEO:
MR. P. NANDAGOPAL

CFO:
MR. RAJESH BAHL

CMO:
MR. ROHIT MULL

COO:
MR. K.V. SRINIVASAN

VICE PRESIDENT:
MR. K. SURESH BABU

APPOINTED ACTUARY:
MS.POURNIMA GUPTE

CHIEF INVESTMENT OFFICER: MR. R RANGARAJAN
HEAD –HR:
MS. MANEESHA THAKUR
xxv
NAME OF PRODUCTS OFFERED BY RELIANCE LIFE INSURANCE

RELIANCE MONEY GURANTEE PLAN

RELIANCE ENDOWMENT

RELIANCE SPECIAL ENDOWMENT PLAN

RELIANCE CASH FLOW PLAN

RELIANCE CHILD PLAN

RELIANCE WHOLE LIFE PLAN

RELIANCE GOLDEN YEARS PLAN

RELIANCE GOLDEN YEARS PLAN VALUE

RELIANCE GOLDEN YEARS PLAN PLUS

RELIANCE MARKET RETURN PLAN

RELIANCE TERM PLAN

RELIANCE SIMPLE TERM PLAN

RELIANCE SPECIAL TERM PLAN

RELIANCE CREDIT GUARDIAN PLAN

RELIANCE SPECIAL CREDIT GUARDIAN PLAN

RELIANCE CONNECT 2 LIFE PLAN

RELIANCE AUTOMATIC INVESTMENT PLAN ( NEW PLAN LAUNCH ON 9TH
MAY 2007)
PLANS AND RIDERS OF RELIANCE LIFE INSURANCE COMPANY
1. RELIANCE MONEY GURANTEE PLAN
2
RELIANCE ENDOWMENT PLAN
xxvi
It takes a lot for a dream to become a reality. And money is surely one of them.
Reliance Endowment Plan gives you just the financial independence to realize your dreams
in the future. It lets you decide how much you would like to set as your sum assured based on
your current financial position and your expected future expenses.
Key Features

On maturity receive Sum Assured plus bonuses

Wealth creation through bonus additions

More value for your money by way of High Sum Assured Rebate

Increase your insurance protection by adding Term Cover

Choose to pay regular or single premium

Choose to add the benefit of two riders - Critical Illness Rider and Accidental Death
Benefit & Total and Permanent Disablement Rider

Choose to avail of a Policy Loan after three full years’ of premium payment
Benefits
Maturity Benefit: On maturity you get Sum Assured plus accumulated bonuses (if any) till
that date.
Life Cover Benefit: In the unfortunate event of loss of life, your family will receive the Sum
Assured plus accumulated bonuses (if any) till that date.
Rider Benefit: You also have the option to add three additional benefits to customize the
Policy as per your needs for the regular premium plan
a. Term Life Insurance Benefit Rider
b. Accidental Death Benefit & Total and Permanent Disablement Rider
c. Critical Illness Rider
2 RELIANCE SPECIAL ENDOWMENT PLAN
Reliance Special Endowment Plan is key to all your financial needs. You get a desired lump
sum after a specified period, however your life insurance protection continues for an
xxvii
extended period. If anything were to happen to you, your beneficiary will get another sum
assured along with the bonuses. The policy comes with an added feature of a limited
premium term, which is always 5 years less than the policy term.
Key Features

Twin benefit of protection and savings

Sum Assured is paid on survival, at the end of the premium paying term Life Cover
for full Sum Assured continues beyond premium paying term Extended Life Cover
for 5 years after premium paying term

Wealth creation through bonus additions

More value for your money by way of High Sum Assured Rebate

Choose to add the benefit of two riders – Critical Illness Rider and Accidental Death
Benefit & Total and Permanent Disablement Rider

Choose to avail of a Policy Loan available after 3 full years’ of premium payment

Policy participates in profits even after premium paying term
Benefits
Survival Benefit: On survival at the end of the premium paying term you get the Sum
Assured.
Maturity Benefit: On survival to maturity you get accumulated bonuses.
Life Cover Benefit: Your Beneficiary will get Sum Assured plus accumulated bonuses in
case of your unfortunate death at any time during the Policy term. This life cover benefit
continues even after the payout of Sum Assured after premium paying term.
Rider Benefit: You also have the option to add 2 additional benefits to customize the Policy
as per your needs
a. Accidental Death Benefit & Total and Permanent Disablement Rider
b. Critical Illness Rider
xxviii
2. RELIANCE CASH FLOW PLAN
While most insurance plans block your money for a certain period of time, Reliance Cash
Flow Plan gives you the double benefit of life insurance along with easy liquidity through
lump sum cash. It provides money periodically when you need it.
It lets you live life to the fullest today and at the same time, helps you stay protected for
tomorrow by giving you the flexibility of receiving a specified percentage of the Sum
Assured at specified intervals.
Key Features

Easy Liquidity - Get periodic cash flows at the end of the fourth year and thereafter at
the end of every three years

Wealth creation through bonus additions

On maturity receive accumulated bonuses along with final lump sum payout

More value for your money by way of High Sum Assured Rebate

Full Sum Assured plus bonuses in case of your unfortunate death. This is over and
above the Survival Benefits already paid

Option to add two riders – Critical Illness Rider and Accidental Death Benefit &
Total and Permanent Disablement Rider
Benefits
Survival Benefit: Get a percentage of the Sum Assured on the fourth anniversary and on
every third Policy Anniversary till maturity.
Maturity Benefit: On maturity you get the remaining percentage of the Sum Assured plus
accumulated bonuses.
Life Cover Benefit: In the unfortunate event of loss of life, your Beneficiary will receive the
full Sum Assured plus accumulated bonuses till that date.
Rider Benefit: You also have the option to add two additional benefits to customize the
Policy as per your needs:
a. Accidental Death Benefit & Total and Permanent Disablement Rider
b. Critical Illness Rider
3. RELIANCE CHILD PLAN
xxix
As a parent, it is only natural to dream of a smooth and blissful life for your child. Which is
exactly why you need to secure your child’s tomorrow, today.
Reliance Child Plan helps you save systematically so that you can give your child the muchneeded financial security in the future. Simply put, Reliance Child Plan gives you the
freedom to enjoy every moment with your child today, without worrying about his/her
tomorrow.
Key Features

Risk protection for you during the term of the Policy

Accumulated bonus at the end of the Policy Term

25% of Sum Assured payable every year as lump sum benefit during the last four
Policy anniversaries

All future premiums are waived in the event of unfortunate loss of life

Guaranteed Fixed Benefits continue even after loss of life of the Policyholder

More value for your money by way of High Sum Assured Rebate

Choose to add the benefit of two riders – Critical Illness Rider and Accidental Death
Benefit & Accidental Death Benefit & Total and Permanent Disablement Rider

Policy participates in profit even after the loss of life of the Life Assured
Benefits
Life Cover Benefit: In the unfortunate event of loss of life, your Beneficiary will receive the
Sum Assured immediately and all future premiums will be waived.
Guaranteed Fixed Benefit: Get 25% of Sum Assured every year on the last four Policy
Anniversaries irrespective of the survival of the Life Assured.
For example if you have taken a Policy for Rs 1 lakh for 20 years, then fixed benefits payable
will be Rs 25,000 each at the end of 17th, 18th, 19th and 20th year.
Maturity Benefit: On maturity you get accumulated bonuses irrespective of the survival of
the Life Assured.
Rider Benefit: You also have the option to add two additional benefits to customize the
policy as per your needs.
a. Accidental Death Benefit & Total and Permanent Disablement Rider
b. Critical Illness Rider
xxx
RELIANCE WHOLE LIFE PLAN
You always loved your family. As a loving person you also wanted to be rest assured in the
knowledge that they will be happy, even if something were to happen to you. With Reliance
Whole Life Plan you can be sure that your family will receive that timely financial support
they need.
Go ahead, live your today to the fullest without a worry about tomorrow.
Key Features

Insurance protection till age 85

Choose to extend your insurance coverage till age 99

Convenient Premium Payment Term Wealth creation through bonus additions

More value for your money by way of High Sum Assured Rebate

Get Sum Assured plus bonuses in case of your unfortunate death

Option to add two riders – Critical Illness and Accidental Death Benefit & Total &
Permanent Disablement Rider

Policy Loan available after three full years’ premium payment
Benefits
Maturity Benefit: On attaining age 85 you get Sum Assured plus accumulated bonuses
Life Cover Benefit: In the unfortunate event of loss of life, your beneficiary will receive the
Sum Assured plus accumulated bonuses till that date.
Rider Benefit: You also have the option to add 2 additional benefits to customize the Policy
as per your needs.
a. Accidental Death Benefit & Total & Permanent Disablement Rider
b. Critical Illness Rider
c. RELIANCE GOLDEN YEARS PLAN
d. RELIANCE GOLDEN YEARS PLAN VALUE
e. RELIANCE GOLDEN YEARS PLAN PLUS
f. RELIANCE MARKET RETURN PLAN
You have always aspired for the best in life. And we help you achieve just that.
xxxi
With Reliance Market Return plan you can have the twin advantage of insurance protection
as well as reaping the benefits of investment growth. It is a flexible plan which works all
through your life and meets the changing requirements like additional protection, liquidity
through cash, option to invest in different asset class, steady golden years and many more.
Key Features – Reliance Market Return Plan:

Twin benefit of market linked return and insurance protection

A Unit Linked Plan, different form traditional Life Insurance products, with
maximum maturity age of 80 years

Option to create your own portfolio depending on your risk appetite

Choose from 4 different investment funds

Flexibility to switch between funds

Option to pay regular as well as single premium & Top-ups

Option to package with Accidental riders

Flexibility to increase the Sum Assured

Liquidity through partial withdrawals
Benefits
Life Cover Benefit: You can choose the basic Sum Assured within the minimum and
maximum levels mentioned below
Minimum Sum Assured:

Regular Premium: Annualized Premium for 5 years or for half the Policy term

Single Premium: 125% of the single premium
Maximum Sum Assured: No Limit (Rs 500,000 for age up to 12 years)
In case of unfortunate loss of life, your Beneficiary will get sum Assured or Unit Account
Value whichever is higher.
Maturity Benefit: On survival, at maturity the value of your Unit Account will be paid out.
xxxii
g. RELIANCE TERM PLAN
Life, as we know, is full of uncertainties. And to keep ahead of them, you need to plan ahead.
Reliance Term Plan is a pure life insurance plan that offers you comprehensive and
affordable coverage for a limited period of time to suit your needs.
Key Features

Get higher insurance protection at economical rates

Optional accidental & disability rider to enhance protection

Economical way to protect your family against financial liabilities like loss of income
and outstanding loans etc.

Discount on premium rates for women

Suitable for business owners who want to cover the life of their key employees
Benefits
Life Cover Benefit: In the unfortunate event of loss of life, your beneficiary will receive the
Sum Assured.
Maturity Benefit: There is no Maturity Benefit payable under this Policy.
Rider Benefit: You also have the option to add Accidental Death Benefit and Total and
Permanent Disablement Rider.
h. RELIANCE SIMPLE TERM PLAN
i. RELIANCE SPECIAL TERM PLAN
j. RELIANCE CREDIT GUARDIAN PLAN
k. RELIANCE SPECIAL CREDIT GUARDIAN PLAN
l. RELIANCE CONNECT 2 LIFE PLAN
xxxiii
m. RELIANCE AUTOMATIC INVESTMENT PLAN ( NEW PLAN LAUNCH ON
9TH MAY 2007)
The Key benefits of Reliance Automatic Investment Plan are as follows:

A smart plan which adapts to your changing risk profile with increasing age

Option to lower the average cost of units through systematic transfer of your funds

Flexibility to switch between funds and plans

Options for additional Insurance cover available through riders
Key Features Reliance Automatic Investment Plan

Two plan options to choose from Ready-made and Tailor-made

Life Stage asset allocation to ensure automatic change in investment patterns, under
the Ready-made Plan option

Freedom to decide your own fund mix based on your risk profile under the Tailormade Plan

Regular, limited, single premium paying options

Unmatched flexibility through our ‘Exchange Option’

Liquidity in the form of partial withdrawal

Option to avail of Accidental Death Benefit, Accidental Total, Premium Disability
and Term Insurance riders
RIDERS
Riders are the additional benefits that you may buy and add to you policy. The additional of
riders helps you to customize the RELIANCE LIFE INSURANCE solution to match your
present and future needs.
1. Accidental Death and Dismemberment Rider.
2. Term Rider
3. Critical Illness Rider
1. Accidental Death and Dismemberment Rider
1 .100% of the coverage. Face amount paid in case of death due to accident
2. 100% of the coverage amount paid in case of loss of more than one limb or sight in
both eyes or loss of one limb sight in one eye.
xxxiv
3. 50% of the coverage face amount is paid in case of one limb or sight in one eye.
4. the rider coverage terminate once we pay all or part of the coverage face amount
EXCLUSIONS:
The Rider will not be payable if death or dismemberment results from or is accelerated by :
a) Suicide or self flieted injury whether the life insured is medically sane
or insane.
b) War terrorism, invasion, act of foreign enemy hostilities(whether war
be declared or not) civil war, material law revolution insurrection ,riot
or civil commotion war means any war whether declared or not.
c) Service in the armed forces, or any policy organization of any country
at war or service in any force of an international body.
d) Committing an assault, a criminal offence, an illegal creativity or any
breach of law.
e) Taking or absorbing accidentally or otherwise any intoxicating liquor,
drug, narcotic, medicine, sedative or poison, expect as prescribed by a
licensed doctor other than the owner of this policy or life insured.
f) Inhaling any gas or fumes accidentally or otherwise except
accidentally in course of daily.
g) Body or mental infirmity or any disease.
h) Participating in aviation other than as a fare paying passenger in an air
craft which is authorized by the relevant regulation to carry passenger
between established aerodromes.
2.
Term Rider
Benefit
Provide for payment of the coverage face amount event of death of the life
insured.
Exclusion
Death due to suicide in the first twelve months of coverage.
3.
Critical Illness Rider
Benefit
1
2
loving amount is paid . if the life insured is diagnosed to be
suffering from any of the 4 illness specified.
The life insured survives the specified illness for a period of
least 30 days from the date of diagnosisChaptor 3
xxxv
Chaptor 3
RESEARCH METHODOLOGY
What is Research?
Research is a common parlance, which refers to a search for knowledge. One can define
research as scientific and systematic search for pertinent. Research is of a great importance to
find out the nature, extent and cause of the research issue under study.
Research Methodology is the process in which various steps that are generally adopted by a
research are outlined.
The stages which are there in research process are as follows:
1. problem formulation or objective of the study
2. preparation of the research design
3. data sources
4. data collection techniques
5. market segmentation
6. sample design
7. data analysis & interpretation
8. developing logical conclusion
1. Objective of the study:
(A) primary objectives:
(1.) To compare the relative effectiveness/ acceptance/ satisfaction of
(2.) To study the consumer behavior and investment pattern towards life insurance
in udaipur.
(B) secondary objective:
(1.) To find out the current market scenario & current market standing of our
company.
(2.) To provide the suggestion & recommendation to the company.
xxxvi
2. Preparation Of Research Deign:
A research design is the arrangement of the condition for collection & analysis of
data. Actually it is blue print of research project. The research design is follows:
(A) Exploratory Research:
(i) Search of secondary data
(ii) Survey of respondent selected
(C) Conclusive Research:
(iii) Descriptive Research
a. survey method
b. questionnaire method
(iv)
Experimentation
3. Data Sources:
The data collection process was carried out in various stages. These stages can be
clubbed two major heads.
(A) Primary source- survey:
A random survey was carried out according to my convenience while going out
to contact the respondents. The different govt. offices, private offices & different
business houses were kept in mind.
(B) Secondary Sources:
Internal: Company’s Prospectus
External: books, Magazines, Journal’s
4. Data collection techniques:
The data was collected through questionnaire. The data collection period was 45
days
(A). Questionnaire:
The data was collected through open and closed ended questionnaire, in which
question were asked in a logical order. Each question has a specific meaning. The data
analysis is bases on The data collected through these questions.
xxxvii
5 Market Segmentation:
The market segmentation was done keeping in mind that what types of clients
were available in the market. These segment are namely:
A. Business class
B. Service class
6
sample design:
Sample design refers to the techniques as the procedure that a researcher would
adopt in selective items for sample.
A. Target Population or Sampling Unit:
The universe for the research is Udaipur city.
B. Sample Size :
The sample size taken for the study is 100 respondents. The sample was
designed as follows:
Business class 50
Service class 50
C. Sample Procedure:
Sample procedure used in the project is non probability sampling. The required
information was collected through convenience and judgmental sampling.
7. Data Analysis & Interpretation:
Analysis of data was done by drawing inferences through what was collected as
input from the respondents. The data analysis & interpretation part is detail on
the next page
xxxviii
Data Analysis and interpretation:
1. How long have you been with the company?
60%
55%
50%
40%
30%
30%
20%
15%
10%
0%
< 8 month
8 to 12 month >12 months
55% of them are working from less than 8 month and 30% are working between 8-12
months. From this we can understand that from last some time insurance market is in
boom so more and more persons are joining it.
xxxix
2. What about your recruitment process?
17%
sophastical
suitable
83%
Advisor’s recruitment is a very convenient process for persons who wants to join.
3. This job is taken as a part time or full time ?
32%
full time
part time
68%
68% of Advisors having this job as a part time. It shows that they are also involved in some other
job/service/business.
xl
4. How many days are devoted for this work in a week?
50%
47%
40%
33%
30%
20%
12%
10%
8%
0%
1 day
2-3 days
4-5 days
w hole w eek
80% of advisors are devoting 1-3 days in a week.
5. Are you interested in personal meeting or on telephone call to their customer?
10%
tel. call
personal call
90%
Most of the advisors are interested in personal call to their customer.
xli
6. What was your joining age?
55%
60%
50%
40%
25%
30%
20%
10%
10%
0%
0%
below 20 yrs.
between 2035 yrs.
between 35- above 50 yrs.
50 yrs.
55% of advisor’s have a joining age between 20- 35 yrs. No one advisor joins above
50 years.
7. Which is the most selling product?
12%
2%
ULIP
Traditional plan
other
86%
86% of advisors are agreed that ULIP plans are most selling plans because it gives
highest return as well as risk cover to the customers.
xlii
8. Which factor motivates you the most?
6%
12%
commission
manager's suport
contests
82%
82% of advisors are motivated by their commission and they are least motivated by
manager’s support & contests.
9. Which factor motivates the customers the most to invest in insurance?
50%
43%
40%
30%
25%
21%
20%
11%
10%
0%
tax saving
returns
investment
xliii
risk cover
21% of customer are motivated by their returns, 43% of customers are motivated by their
tax saving, 11% of customer are motivated by
investment, 25% of customer are
motivated by risk cover.
10. Do you show the allocation charge & fund management charge to their customers?
35%
always
50%
never
depend
15%
50% of advisors show the allocation charge & fund manager charge. It shows that they
tell every thing to the customer relating to the product.
11. Are you satisfied with your commission?
23%
yes
no
77%
Mostly advisors are satisfied with their commission.
xliv
12. Would you like to change your present company?
20%
no
yes
80%
80% advisors would like to remain with their company.
13-
Have you got benefits of a special training programme, RACE?
35%
yes
no
65%
65% advisors have had the benefits of RACE (Reliance Academy of competence
Enhancement)
xlv
Suggestion for Reliance Life Insurance to complete with other life
Insurance co’s:_
Suggestion
Percentage
New Marketing Strategy
33
Advertisements
32
Training to Agent
20
Structure of Premium
4
Returns
6
Modification in product
5
Percentage
4% 6%
35%
21%
34%
New Marketing Strategy
Advertisements
Training to Agent
Structure of Premium
Returns
New marketing strategy advertisement & training to agent will help Reliance Life Insurance
to complete with other private life insurance company.
xlvi
Distribution of policy holder according to the purpose of taking purpose of
taking insurance policy:-
Purpose
Percentage
Investment
35
Risk Cover
22
Saving
26
Tax Benefit
17
Percentage
Tax
Benefit
17%
Saving
26%
Investme
nt
35%
Investment
Risk Cover
Saving
Risk
Cover
22%
Tax Benefit
INTERPRETIATION:- the analysis of surveyed population indicate that highest number 35% person
preferred insurance considering right investment while almost equal number 26 & 22% policy holders opted
insurance for covering risk and better saving opportunity. The least number 17% or respondent took insurance
of respondent took insurance policy for getting tax here fit.
xlvii
Distribution of policy holder according to whether they compared different
Policy Before Purchasing present policy
Comparison
Percentage
Yes
83
No
17
Percentage
No
17%
Yes
No
Yes
83%
INTERPRETIATION:- The highest number of policy holders 83% selected insurance policy. After
comparing the products provide by same or differed companies. While only 17% of respondents did not opted
for comparison before purchasing the present policy.
xlviii
Aware about Life Insurance Policy:-
Awareness through
Percentage
Agent
45
People
12
Media
35
CA
8
Percentage
CA
8%
Agent
45%
Media
35%
Agent
People
Media
CA
People
12%
INTERPRETIATION:- T he result shows that45% people know about the insurance policies by the medium
of Agent ,5% by Media , 2 People & 8% by Charted Accounts
xlix
CHAPTER 4
CONCLUSION & SUGGESTION
Conclusion :
The size of the market has grown and the size of the insurable
population in India is indeed vast and the existing player has managed to cover about onefourth of it. The opportunities before the players are therefore a plenty in terms of target
audience. The falling interest rates, the collapse of many small-time financial institutions, the
scope for entering related areas like banking and pensions in a bid for synergy and the
promise of e-commerce are some of the other opportunities knocking at the doors of the
insurance majors. There is a probability of a spurt in employment opportunities. A number of
web-sites are coming up on insurance, a few financial magazines exclusively devoted to
insurance and also a few training institutes being set up hurriedly. Many of the universities
and management institutes have already started or are contemplating new courses in
insurance. Health insurance, which is still in its infancy, is also likely to get a major boost,
ultimately leading to improvement in the quality of medical treatment and facilities in the
country.
Life insurance has today become a mainstay of any market economy since it offers
plenty of scope for garnering large sums of money for long periods of time. A well-regulated
life insurance industry which moves with the times by offering its customers tailor-made
products to satisfy their financial needs is, therefore, essential if we desire to progress
towards a worry-free future.
l
Suggestion :
1. By using analytical and operational CRM insurance companies can enhance:
The choice between operational and analytical CRM as a starting point
depends upon the insurer’s needs. Insurance companies with multiple financial products and
a big customer base, such as integrated insurance solution providers, will leverage their
customer base to cross- and up-sell different financial products, including insurance. Such
providers will benefit from adopting analytical CRM. Market segmentation, campaign
management and data mining applications will benefit them in many ways.

Call centre text mining: This tool can help improve the customer experience by
resolving complaints rapidly. Insurers are using these tools to mine text from call
centre transcripts to identify issues faced by customers. Text mining tools also help
detect and capture other useful pieces of information around a customer’s life stage,
financial needs and product interests. These can be used to generate leads and trigger
cross-selling. However, to be fully effective, customer service representatives must be
trained to probe for information that will help in cross-selling during the text mining
phase. Text mining tools are leading-edge today, but are predicted to take off quickly.

Event-triggering and profiling: “Insurers can use event triggers to generate leads that
can be acted upon quickly, usually within 24 hours,” says Tikoo. Event-triggering
tools monitor incoming transaction and contact data in near-real-time to recognise
changes in a customer’s behaviour or profile to trigger actions or alerts.

Lead management gets sophisticated: Often the ability of an insurer to generate leads
by means of event-triggering, re-engineered touch points and cross line-of-business
referral can outstrip their ability to manage said leads. In such a situation, though the
number of leads generated rises, the conversion rate does not. It may even drop. CRM
can help provide sales representatives with a mechanism to prioritise and manage
leads.
Pure insurance providers who do not have a large customer base will
derive the maximum value from operational improvements, especially in integrating
customer information from multiple channels and sales force automation.
li
Not all CRM deployments will involve packaged software. Apart from making agents more
productive, it will let insurers keep in touch with customers, otherwise difficult in a primarily
channel-driven business.

Cross- and up-selling capability to provide market opportunities within an existing
customer database.

Predictive capability to determine customer behaviour.

Information regarding customer retention or attrition helps determine the likelihood
of policy lapses and helps identify customers worth targeting for retention campaigns.

Customer segmentation that leverages data to create accurate categories for use in
marketing strategies.

Market automation that combines analytics with campaign management functionality
to help drive a more effective and efficient marketing campaign.
Broad CRM perspective CRM Areas where it can be applied :
Collaborative CRM : Applying collaborative interfaces (such as e-mail, conferencing, chat,
real-time) to facilitate interaction between customers and organisations, as well as between
organisational entities dealing with customer information (customers to sales representatives,
sales to marketing, agent to provider)
Operational CRM : Automating horizontal integrated business processes involving frontoffice customer touch points-sales, marketing, and customer service-via multiple,
interconnected delivery channel
and integration between front-office and back-office
Analytical CRM : Analysing data created on the operational side of the CRM equation for
the purpose of business performance management.
Analytical CRM is tied to a data
warehouse architecture; it is most often evident in analytical applications that leverage data
marts.
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2.
Maintain
Proper
Pre-Sale
Service
:
Proper pre-sale service, which goes a long way in helping customers
arrive at a decision on purchasing a product, is generally not given due importance by Indian
insurers. Counselling of customers by the intermediaries of the insurance companies
regarding the options available, the appropriate policy to be selected at the minimum
premium, the pros and cons and nuances of the policy, the procedures to be followed in the
event of claims etc. are generally not upto the satisfaction of customers. As a result, the latter
dither in taking a decision or remain uncomfortable after purchasing insurance products.
Quality of Documentation :
Most proposals and policies tend to be long, complicated and sometimes inexplicit.
For example, in case of individual health policies, certain guidelines which can affect the
quantum of premium payable are not always made clear to the customers. Another frequent
grievance aired by buyers of health insurance is the disputes regarding ‘pre-existing diseases’
and the fact that insurance companies don’t take adequate care to explain what a pre-existing
disease is and why no claim can be settled arising out of the same. This failure on the part of
insurance companies leads to much heartburn among customers when their claims are
rejected.n post-sale services too, Indian insurance companies have lagged behind.
The practice of sending reminders for renewals in time is not
diligently followed by insurers. The most important feature of post-sale service, as far as
insurance products are concerned, is the handling of claims. On an average, it takes insurance
companies about one to three months to settle a claim. Further, too many documents and
delay in settlement of claims, without payment of interest for the delay, add to the woes of
the insurance holders. Indian insurance companies, for reasons well known, have not
responded too well to the service aspects of their offerings. The good news is that they are
now gearing up to improve their services in order to meet the impending new competition.
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Chapter 5
BIBLIOGRAPHY
Books: Research methodology( C.R. Kothari)
News paper: Economic times
Journals & Magazines: Nafa Nuksaan
 India today
Websites: www.google.com
 www.maxnewyorklife.com
 www.reliancelife.co.in
 http://www.insure2bsecure.com/insure/information/
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Questionnaire
Name:
Age:
Qualification:
Annual Income:
Sex:
Q.1 How long have you been with the company?
(a) <8 month
(b) 8 to 12 month
(c) >12 months
[ ]
Q.2 What about your recruitment process?
(a)Sophistical
(b) Suitable
[ ]
Q.3 This job is taken as a part time or full time?
(a)Full time
(b) Part time
[ ]
Q.4 How many days are devoted for this work in a week?
(a) 1 day (b) 2-3 days (c) 4-5 days (d) Whole week
[ ]
Q.5 Are you interested in personal meeting or on telephone call to their customer?
(a) Tel. call
(b) Personal call
[ ]
Q.6 What was your joining age?
(a)Below 20 Yrs. (b) Between 20-35 Yrs. (c)Bet. 35-50 yrs. (d)Above 50 Yrs.
[ ]
Q.7. Which is the most selling product?
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(a)ULIP
(b) Traditional plan
(c) other
[
]
Q.8 Which factor motivates you the most?
(a) Commission (b) Manager’s support (c) Contests
[ ]
Q.9 Which factor motivates the customers the most to invest in insurance?
(a) Returns (b) Tax saving (c) Investment (d) Risk cover
[ ]
Q.10 Do you show the allocation charge & fund management charge to their customers?
(a) Always (b) Never
(c) Depend
[ ]
Q.11 Are you satisfied with your commission?
(a) Yes
(b) No
[ ]
Q.12 Would you like to change your present company?
(a) Yes
(b) No
[ ]
Q.13 Have you got benefits of a special training programme, RACE?
(a) Yes
(b) No
[ ]
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