2010

Summer Internship Project

PERCEPTION STUDY ON MONEY BACK POLICY & COMPARISON STUDY ON PRODUCT OF RELIANCE LIFE INSURANCE WITH OTHER PRIVATE INSURANCE COMPANY
A PROJECT REPORT Submitted by

Mr. Reg. No.

in partial fulfillment for the award of the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT

IN

MARKETING

S.D. COLLEGE OF MANAGEMENT STUDIES Muzaffarnagar

May June 2010

PERCEPTION STUDY ON MONEY BACK POLICY & COMPARISON STUDY ON PRODUCT OF RELIANCE LIFE INSURANCE WITH OTHER PRIVATE INSURANCE COMPANY
A PROJECT REPORT

Submitted to:
PROFESSOR K. V. RAMANA

Submitted by

Mr. Reg. No. Centurion School of Rural Enterprise Management, Paralakahemundi, Odisha
APRIL JUNE

BONAFIDE CERTIFICATE
Certified that this project report PROJECT REPORT ON

COMPARATIVE ANALYSIS OF INSURANCE PRODUCT WITH DIFFERENT LIFE INSURANCE COMPANIES. is the bonafide work of ANUBHAV BHUSHAN who carried out the project work under my supervision.

SIGNATURE Assistant Professor S.D.College of Management Studies,Muzaffarnagar

DECLARATION

I hereby declare that this project work entitled Perception study on Money Back policy &

Comparison study on product of Reliance Life Insurance

with other private insurance company is my work, carried out under the
guidance of my faculty guides PROF.______ and company guide Mr.___ , Branch Manager, Reliance Life insurance Company Limited, Ranchi. This report neither full nor in part has ever been submitted for award of any other degree of either this management college or any other management college.

SIGNATURE

Mr. REGD. NO. P.G.D.M. S.D.College of Management Studies

ACKNOWLEDGEMENT

First of all I would like to acknowledge our indebted to our Director Dr. (Prof.) G.C.Patro, for his valuable guidance and consistent supervision throughout the course. I am also thankful to Mr. , Company Guide of Reliance Life Insurance company LTD, Ranchi, for his valuable guidance for preparing the Final Report and also for providing the necessary facilities. I am extremely thankful to PROF., Faculty Guide of S.D.College of Management Studies for their timely guidance and support throughout the project work. Finally I am indebted to our other faculty members, my friends and my parents who gave their full-fledged co-operation for successful completion of my project. It was an indeed learning experience for me.

Regd. No. -

Content
Project B A : Perception Study on Money Back policy Chapter No. 1 1.1. 1.2. 1.3. Abstract Introduction Detail Study about Money back policy 1.3.1 Salient Feature 1.3.2 Benefit 1.4 Research Problem 1.5 Purpose of the Study

Page No.

...01 ...02 ...02 ..03 ...04 ...05 ..05

Chapter No. 2 2.1. Research Methodology 2.1.1. Research Strategy 2.1.1.1. Primary source 2.1.1.1.1. Sampling Design ...06 ...06 ...06 ...06

2.1.1.1.1.1 Population..06 2.1.1.1.1.2 Sample Frame06 2.1.1.1.2. Sampling Element 2.1.1.1.3. Sample Technique 2.1.1.1.4. Sample Size 2.1.1.2. Secondary Sources ...06 ..07 ...07 07

Chapter No. 3 3.1. Analysis and Data Interpretation 08

Chapter No. 4 4.1. Results 4.2. Conclusion 4.3. Suggestion PROJECT - B B. Comparison study on product on Reliance Life Insurance With other private insurance companies Chapter No. 5 5.1. Objective 5.2. Introduction 5.2.1. ULIP Plan of Reliance Life Insurance Chapter No. 6 6.2. Compare ULIP product of Reliance Life with Mutual Fund 6.2.1. Mode of Investment 6.2.2. Expenses 6.2.3. Portfolio Disclosure 28 28 29 30 ...27 ..27 .27 .21 ..23 ..24

6.2.4. Flexibility in altering the assets allocation 31 6.2.5. Tax Benefit 32

Suggestion Bibliography Annexure

List of Table and Figure List of Table Particular Page No.

1. Table No. 1.Money Back Policy plan feature..04 2. Table No. 2....Awareness of Life Insurance.....08 3. Table No. 3.Decision Influence....09 4. Table No. 4..Attraction of Insurance10 5. Table No. 5.Purpose of buy Insurance..11 6. Table No. 6..........Investment for Insurance..12 7. Table No. 7Premium payment...13 8. Table No. 8....Mode of Premium...14 9. Table No. 9.Believable Company..15 10.Table No.10..........Types of Insurance plan...16 11.Table No.11Aware with Money Back17 12.Table No.12..No. of Policy.18 13.Table No.13...........Interest to take Money Back policy.19 14.Table No.14.Satisfaction20

List of Figure

Particular

Page No.

1. Figure No. 1....Awareness of Life Insurance.....08 2. Figure No. 2.Decision Influence....09 3. Figure No. 3..Attraction of Insurance10 4. Figure No. 4.Purpose of buy Insurance..11 5. Figure No. 5..........Investment for Insurance..12 6. Figure No. 6Premium payment...13 7. Figure No. 7....Mode of Premium...14 8. Figure No. 8.Believable Company..15 9. Figure No. 9..........Types of Insurance plan...16 10.Figure No. 10Aware with Money Back17 11.Figure No. 12..No. of Policy.18 12.Figure No. 13...........Interest to take Money Back policy.19 13.Figure No. 14.Satisfaction20

Chapter No. 1 1.1. Abstract

India is a country where the average selling of life insurance policies is still lower than many western and asian countries, with the second largest population in world the Indian insurance market is looking very prospective to many multinational and Indian insurance companies for expanding their business and market share. Before the opening of indian market for Multinational Insurance Companies, Life Insurance Corporation (LIC) was the only company which dealt in Life Insurance and after opening of this sector to other private companies, all the world leaders of life insurance have started their operation in India. With their world market experience and network, these companies have offered many good schemes to lure all type of Indian consumers but unfortunately failed to get the major share of market. Still the LIC is the biggest player in the life insurance market with approx 65% market share. But why Indian consumers do not trust on many companies and why the major population of India does not have any life insurance policy or what are the factors plays major role in buying behavior of consumers towards life insurance policies.

1.2.

Introduction

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. Life insurance is one of the best known insurance products today. People buy these products as investment tools and also as protection for themselves and their families. All the insurance companies the world over are looking at attracting the eye balls of customer and positioning their solutions innovatively to cater to niche and specific markets. One of the most critical aspects both from the view point of the customer and the insurer is getting important and relevant leads that can be beneficial for both.

1.3. Detail study about Money back Policy

'MONEY BACK plan is an excellent plan with good return on reinvestment, best suited for businessmen and professionals. Money is available at regular intervals in future to meet the specific expenses such as children's education or marriage. At the same time, the provides insurance protection for the family as well as old age provision. 1.3.1 .Salient Features where lump sum amounts are paid to the life assured at periodic intervals on survival. In case of death of the life assured within the term, the total sum insured is paid to the nominee, irrespective of earlier survival benefits. Bonus is payable under this scheme. Premiums are to be paid regularly to get survival benefits. Premiums cease at death or on expiry of term whichever is earlier. This plan can be availed of for terms 20 or 25 years.

1.3.2 . Benefits On Death:

o

Full sum assured is payable at death of the life assured within the term, without any deduction of earlier survival benefits. (e.g. for example, suppose a person takes a Rs.1,00,000/- for 20 years. At the end of the 5th and 10th year he receives Rs.20,000/- each as survival benefit. If he happens to die in the 12h year, the nominee of the life assured will receive full Rs.1,00,000/-, irrespective of the earlier benefits of Rs.40,000/-)

On Survival: For Example, on a Rs. Term At the end of 5 year 20 years 10 year 15 year 20 year 25 years 5 year 10 year
th th th th th th

Amount of money back 1,00,000 20% of sum assured 20% of sum assured 20% of sum assured 40% of sum assured 15% of sum assured 15% of sum assured Rs.20,000/Rs.20,000/Rs.20,000/Rs.40,000/Rs.15,000/Rs.15,000/-

15 year 20 year 25 year

th th

th

15% of sum assured 15% of sum assured 40% of sum assured Table No. 1

Rs.15,000/Rs.15,000/Rs.40,000/-

1.4.

Research Problem

The problem of the my research is to know perception of the customer about Monet Back policy in Varanasi, U.P. 1.5.

Purpose of the study

The purpose of the study is know that 1. To evaluate the factors underlying consumer perception towards investment in life insurance policies. 2. To develop and standardize a measure to evaluate investment pattern in life insurance services.

Research Question Perception study about Money back policy

Chapter No. 2 2.1. RESEARCH METHODOLOGY

2.1.1. .Research Strategy For my research study first of all this is very important that I have to know what is money back policy and how it works. Ill visit Reliance Life Insurance Company in Varanasi to know more about Money Back policy.

Collection of data

2.1.1.1.

Primary Source

2.1.1.1.1. Sampling Design a) Population: Population included investors in Varanasi region. b) Sample frame: Since the data was collected through personal contacts, the sample frame was the individuals who are investing in life insurance policies.

2.1.1.1.2. Sampling elements:

Individual respondents were the sampling elements. 2.1.1.1.4 Sampling Techniques: Purposive sampling technique was used to select the samples. 2.1.1.1.5 Sample Size:

Sample size was 104 respondents

2.1.1.2 .Secondary Source The common source for secondary data includes different websites & books and Reliance life insurance office in Varanasi.

Chapter 3

3.1. Analysis and data interpretation 3.1. Awareness of life insurance in consumer.

Fig. 1
No. of respondants Yes No 104 0 Percentage of respondents 100% 0%

Table No.2

According to the data Maximum people are aware with Life insurance policy; here 100% people are aware with life insurance. This time in india most of the people aware with this investment because now a days people are not interested to invest their money in bank and post office etc. but if we see in rural area , where most of the people is not aware with life insurance.

3.2.

In buying insurance policy, your decision is influenced by

Figure No. 2
No. of respondents Family Friends Professional and trade union group Brand and Advertisement 38 31 16 19 % of Respondents 37% 30% 15% 18%

Table No. 3 Insurance is now basic investment for consumers. But this is tradition of india that we are not believe in unknown people So when any one buy insurance policy then his or her decision is depend on family friends etc. here if we see 37% respondents believe his family to buy insurance policy but only 18% respondents decision depend on brand and advertisement of company. so here we see that family and friends play a big role to buy insurance policy. 3.3. What will you more attract in insurance?

Figure No. 3
No. of respondents Bonus Generated Income Return Depend on Market 69 31 13 % of respondents 66% 30% 4%

Table No. 4

Mostly people invest money in insurance for his life security but now they also think about profit. Today people are only asking about profit that after 3 or 4 year how much Money Company give me. Most of the people buy insurance for Bonus, here 66% people attract by bonus and only 4% people attract by return depend on market.

3.4.What is your purpose for buying insurance policy?

Figure No. 4
No of Respondents For old age saving Family saving Time to time needs Opposite circumstances 53 14 22 15 % of respondents 51% 14% 21% 14%

Table No. 5 Most of the people buy insurance policy for his old days saving because they want to save money for old age and only 21% people buy insurance for time to time needs.

3.5.How much money you want to invest in insurance?

Figure No. 5
Premium Amount 10000 to 15000 15001 to 20000 20001 to 25000 25001 to 30000 30001 to 35000 No. of respondents 15 29 31 21 5

Table No. 6 Mostly people invest in insurance his saving amount and according to their saving they purchase life insurance policy. Here most of the people invest 20001 Rs. To 25000 Rs. And very less number of people invest huge amount in insurance.

3.6.How do you want to pay your premium?

Figure No.6
No. Of Respondents 36 41 27

Mode Cash Cheque Demand Draft

Table No. 7 Most of the respondent pay their premium through cheque there 41 respondent pay their premium through cheque and 36 respondent pay their premium through cash and 27 respondent pay their premium through demand draft..

3.7In what mode you want to give premium?

Figure No. 7
No. of Respondents 27 41 36 % of respondent 26% 39% 35%

Mode Monthly HalfYearly Yearly

Table No. 8

Insurance company give a lots of facility to his loyal costumer for pay his premium. Coustmer also pay the premium in three mode monthly, half yearly and yearly. Here 39 % respondent pay in half yearly mode and 35% respondent pay yearly mode premium.

3.8.In which company you believe most ?

Figure No.8
No. of respondent 38 62

Company Private Company Public Company

Table No. 9 Most of the people want to invest his money in public insurance company and in private insurance company only 38 respondent want to invest their money. Most of the people buy insurance from LIC and there are 24 private insurance company in India.

3.9.Do you want which type of insurance plan?

Figure No. 9
No. of Respondents 22 41 24 17 % of respondents 21% 40% 23% 16%

PLAN ULIP Plan Traditinol Plan Health Plan Term plan

Table no. 10 In insurance plan respondent want mostly traditional plan. 40% respondent use traditional plan and 21% respondent want to buy ULIP Plan.

3. 10. Do you aware with Money Back Policy of any life insurance company?

Figure No.10
No. of Respondents Yes No 87 17 % of respondents 84% 16%

Table No. 11 There are 84% respondents who aware about money back policy and 16% respondent have no idea about money back policy.

3.11.How much Money Back policy you have?

Figure No.11
No. of Respondents 0 1 2 3 4 and above 17 37 27 20 3 % of respondents 16% 36% 26% 19% 3%

No. of policy

Table No.12 There are 84% aware with Money back policy in this 84% respondent 37 people have 1 money back policy and 27 people have 2 money back policy. There are 16% respondent they havent any money back policy.

3.12.Do you interested to take Money Back policy?

Figure No.12
No. of Respondents Yes No Can't say 57 28 19 % of respondents 71% 13% 16%

Table No. 13 There are 55% respondent interested to take money back policy again but 27% respondent have no interest to take this policy again and 18% respondent dont know what to do.

3.13.Are you satisfied with the return on investment, which you are getting from your policy?

Figure No. 13
No. of Respondents Very satisfied Satisfied Can't say Not Much satisfies dissatisfied 22 62 4 4 12 % of respondents 21% 60% 4% 4% 11%

Table No.14 Here we see very positive result of my respondent about money back policy product. In that 84% respondent 60 % respondent satisfied with return on this money back policy and 21% respondent very satisfied with money back policy.and 11% respondent not satisfied with return on this money back policy.

Chapter No. 4 4.1. Results

In present Indian market, the investment habits of Indian consumers are changing very frequently. The individuals have their own perception towards various types of investment plans. The study of this research work was focused over consumers perception on investment towards money back policy of Life Insurance Services. The objectives of the study were to evaluate the factors underlying consumer perception towards investment in life insurance policies; and to compare the differences in consumer perception of male and female consumers. In india LIC have a 25 years monopoly and costumers were bound to buy insurance from LIC but in 2000 maximum private insurance companies enter in the Indian insurance market and that time very less number of people want to buy insurance from this private companies and today also if see this survey then according to survey 62% people believe in LIC and remaining 38% people go with private companies like Reliance Life Insurance,

ICICI Prudential. But today the face of insurance market is totally changed now people move to private sector insurance companies. because this private companies gives more bonus and return to his costumer .and

costumer also buy that policy where he got more bonus and return. Now a days controversy

is going on between SEBI and IRDA about ULIP policies. In ULIP policies companies charged a huge money in first premium of his policy and that policy return also depend on market if market is on peak then costumer have good profit with good return. and insurance market is affected by this controversy now people are scared to buy ULIP policy only 22% people interested to buy this plan but people more attracted in traditional plan because in this costumer have a certain return guarantee and charges also less in comparison than ULIP policy and Money Back policy is a traditional plan where more number of people attracted.According to survey 71% people interested to buy this Money Back policy and they are satisfied with this policy. In 61 respondent out of 104 respondent are satisfied with Money Back policy.

4.2. Conclusion
The perception of the Money back plan of reliance life insurance is good towards the costumer. In RLI Reliance Cash Flow Plan is the cash back plan. Necessarily customer need that type of plan where they get any benefit and safety for his money and this plan is safe as well as benefitted also because there is a lots of benefit with this plan so this is the reason this plan is more popular in Indian market. Savings and Investment Plan gives the double

benefit of easy liquidity through lump sum cash along with life insurance. During the time of need this policy provides the money at times. This policy gives the freedom to the insured to live to the full at present and at the same time assures the safety of the future by giving the flexibility of being paid a specific percentage of the Sum Assured at particular intervals. But Indian customer perception basically this 1. Easy liquidity of periodic cash flow at the end of the 4th year and thereafter at the end of every 3 years. 2. Savings with Investment Plan 3. Safety for the money The consumers perception towards Life Insurance Policies is positive. It developed a positive mind sets for their investment pattern, in insurance policies. Still some actions are needed for developing insurance market. The major factors playing the role in developing consumers perception towards Life Insurance Policies are Consumer Loyalty, Service Quality, Ease of Procedures, Satisfaction Level, Company Image, and Company-Client Relationship. Insurance industry has to go ahead. A lot of opportunities are still waiting. This research will help in developing the market share, loyalty and further development in insurance sector.

4.3. Suggestions
1. Insurance companies should try to adopt different strategies to market their products or plan. Companies should not primarily focus on the agents for their business. 2. Insurance company should try to decrease its charge. 3. Agents should not be cheat with his client .they should be give clear information about insurance product.

Project B 2

Comparison

study on Reliance other insurance

Life Insurance with private company

Chapter No. 5 5.1. Abstract

Today total Investment scenario is changing, in past people were not interested in investment because there were no good options available for investment. Now there are many options available for investment like life Insurance, Mutual fund, Equity market, Real estate, etc. Today people want more services and more return on their investment. So, most of the insurance companies are providing more value added services with the basic insurance operation. Another option for investment available is Mutual Fund. Mutual Funds are providing good returns. So while investing people tend more to words mutual fund as they are providing more returns than Insurance also, with a good investment portfolio. Mutual fund companies are providing more liquidity. The project topic was taken to know about, compare study of Reliance life Insurance product with other private insurance companys product.

5.2. Objective
To compare investment option of costumer in ULIPs and Mutual Fund To understand the reason for which costumer prefer ULIP as one of the best insurance investment rather than mutual fund.

5.3. Introduction
5.3.1. ULIP Plan of Reliance Life Insurance ULIPs have been the darling of insurance companies, intermediaries and

the insured population alike over the last five years. The main reason for this popularity is the twin advantage of a pure life cover (insurance component) and a range of investment funds or options (savings component) to match your risk profile. While the pure life cover provides the much needed financial security to your dependents in the event of your untimely death, the savings component allows you to participate in the capital markets and build wealth over the long-term tenure

of the policy. Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the cases with mutual funds, investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis. Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component. However it should not be construed that barring the insurance element there is nothing

Chapter No. 06
6.1. Differentiating mutual funds from ULIPs
6.1.2. Mode of investment/ investment amounts Mutual fund investors have the option of either making lump sum investments or investing usingthe systematic investment plan (SIP) route which entails commitments over longer timehorizons. The minimum investment amounts are laid out by the fund house. ULIP investors also have the choice of investing in a lump sum (single premium) or using the Conventional route, i.e. making premium payments on an annual, half-yearly, quarterly or monthly basis. In ULIPs, determining the premium paid is often the starting point for the investment activity.

This is in stark contrast to conventional insurance plans where the sum assured is the starting point and premiums to be paid are determined there after ULIP investors also have the flexibility to alter the premium amounts during the policy's tenure. For example an individual with access to surplus funds can enhance the contribution there by ensuring that his surplus funds are gainfully invested; conversely an individual faced with a liquidity crunch has the option of paying a lower amount (the difference being adjusted in the accumulated value of his ULIP). The freedom to modify premium payments at one's Convenience clearly gives ULIP investors an edge over their mutual fund counterparts.

6.1.2. Expenses In mutual fund investments, expenses charged for various activities like fund management, sales and marketing, administration among others are subject to predetermined upper limits as prescribed by the Securities and Exchange Board of India. For example equity-oriented funds can charge their investors a maximum of 2.5% per annum on a recurring basis for all their expenses; any expense above the prescribed limit is borne by the fund house and not the investors. Similarly funds also charge their investors entry and exit loads (in most cases, either is applicable). Entry loads are charged at the timing of making an investment while the exit load is charged at the time of sale.

Insurance companies have a free hand in levying expenses on their ULIP products with no upper limits being prescribed by the regulator, i.e. the Insurance Regulatory and Development Authority. This explains the complex and at times 'unwieldy' expense structures on ULIP offerings. The only restraint placed is that insurers are required to notify the regulator of all the expenses that will be charged on their ULIP offerings. Expenses can have far-reaching consequences on investors since higher expenses translate into lower amounts being invested and a smaller corpus being accumulated.

6.1.3. Portfolio disclosure Mutual fund houses are required to statutorily declare their portfolios on a quarterly basis, albe it most fund houses do so on a monthly basis. Investors get the opportunity to see where their monies are being invested and how they have been managed by studying the portfolio. There is lack of consensus on whether ULIPs are required to disclose their portfolios. During our interactions with leading insurers we came across divergent views on this issue. While one school of thought believes that disclosing portfolios on a quarterly basis is mandatory, the other believes that there is no legal obligation to do so and that insurers are required to disclose their portfolios only on demand. Some insurance companies do declare their portfolios on a monthly/quarterly basis. However the lack of transparency in

ULIP investments could be a cause for concern considering that the amount invested in insurance policies is essentially meant to provide for contingencies and for long-term needs like retirement; regular portfolio disclosures on the other hand can enable investors to make timely investment decisions.

6.1.4. Flexibility in altering the asset allocation As was stated earlier, offerings in both the mutual funds segment and ULIPs segment are largely comparable. For example plans that invest their entire corpus in equities (diversified equity funds), a 60:40 allotment in equity and debt instruments (balanced funds) and those investing only in debt instruments (debt funds) can be found in both ULIPs and mutual funds. If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt from the same fund house, he could have to bear an exit load and/or entry load. On the other hand most insurance companies permit their ULIP inventors to shift investment across various plans/asset classes either at a nominal or no cost (usually, a couple of switches areallowed free of charge every year and a cost has to be borne for additional switches) Effectively the ULIP investor is given the option to invest across asset classes as per his convenience in a cost-effective manner. This can prove to be very useful for investors, for example in a bull market when the ULIP investor's equity

component has appreciated, he can book profits by simply transferring there quested amount to a debt-oriented plan.

6.1.5. Tax benefits ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This holds good, irrespective of the nature of the plan chosen by the investor. On the other hand in the mutual funds domain, only investments in tax-saving funds (also referred to as equity-linked savings schemes) are eligible for Section 80C benefits. Maturity proceeds from ULIPs are tax free. In case of equityoriented funds (for example diversified equity funds, balanced funds), if the investments are held for a period over 12months, the gains are tax free; conversely investments sold within a 12-month period attract short-term capital gains tax @ 10%. Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a short-term capital gain is taxed at the investor's marginal tax rate. Despite the seemingly similar structures evidently both mutual funds and ULIPs have their unique set of advantages to offer. As always, it is vital for investors to be aware of the nuances in both offerings and make informed decisions

Suggestion
As insurance sector is growing rapidly so most of the life insurance players

are selling ULIP plans. And the awareness about ULIP is growing most of the people knows the ULIP of life insurance. Since last 4-5 years the returns provided by ULIP were very good so people tend more towards ULIP Middle class people who are interested in investment but they are not aware

of such options so more awareness should be there, as main target customer are the middle class peoples. While investing any insurance company customer prefers for good branded

company is Indias one of the most famous and richest family. And second preference is given to SBI life as many people perceive that SBI Life is a govt. owned company so people want security for their investment. As now till date people in India dont wanted to invest in share market

because then were thinking that it is a bad thing but as the awareness about Mutual fund is increasing as more and more private players are entering in the market. So awareness about MF is not very good and it can be improved. While survey I found that many all customers had already invested in ULIP

and Mutual Fund some people had invested in both options. 12% of people had

invested in Mutual Fund and 26% people had invested in ULIP and 4% people had invested in both the options. While investing in mutual fund 44% of the customers looks their return,42%

customers observe the schemes performance in past years. First reason or preference that why an investor is interested in ULIP is

Investment Purpose, and second is to its returns and after that they investing because they are getting the tax benefit. Then again there are some people who are investing for pension planning and security. In future people will be more preferring to the security of their money means

they want a secured option which should provide good returns. As ULIP are the option in which you can have the security also and good returns. The second choice of the investors is return of their money. 54% of people given Best rating to the Reliance Life Insurance ULIP, so

from this we can analyze that Reliance Life Insurance is doing good but it is having good potential in Market. To improve its market share they should improve the awareness level of the common people. Innovative Products and good brand name are the main success factor for

Reliance Life Insurance. 6% customers are attracted due to the high reputation of

the company. So if BALIC wants to penetrate its market share they should improve the marketing strategy, improving the distribution channel etc.

Conclusion Awareness of ULIP is increasing as more number of private players is

entering in life insurance industry. Mutual Fund is also getting more and more famous in Indian market as many

private companies innovating new funds as the investors demand ULIP differentiate from Mutual fund in respect of Insurance cover. Investors in Reliance Life ULIP will be getting the advantage of life

insurance cover. People are turning towards the ULIP as a good investment option but as

ULIP is in its starting phase so customers are preferring only big brands. Mutual fund is having good growth but many customers from rural areas

dont have any knowledge about Mutual fund. They think it is very risky.

Even investors from cities like Varanasi dont have that much of Knowledge

about fund selection they all are depend on Brokers. People in Varanasi are investing in only good branded companies as they

dont believe on other financial companies for taking ULIP. There is a need for insurers to undertake a demand audit in order to

understand what the policy holder wants and needs. Deriving the right feedback from customers and bringing out innovative

products which cater to customer demands will go a long way in tapping the market potential of the insurance and Mutual fund sector. For Reliance Life Insurance They should go for creating more awareness

about its ULIP as now also people are just investing because Reliance is Indias most Known and Favorite brand in past. Reliance life should go for innovating more and more products and

improving the distribution channels as per the area of sales

Bibliography Book1. India Today Magazine ( May,2010; Page No. 24 ) 2. Dainik Jagran News paper ( 20th june,2010; Page No.04)

Websites 1. www.reliancelife.com 2. www.wikipedia.com 3. www.comparelifeinsurence.co.in 4. www.apnainsurance.com 5. www.moneycontrol.com 6. www.irdaindia.gov 7. www.bajajallianzlife.com 8. www.yahooanswer.com

Annexure
1. QUESTIONNAIRES

2. Data Sheet of data collection In Varanasi

QUESTIONNAIRES Declaration: It is purely for academic purposes and the data given will not be passed to anyone. I request you to kindly fill up the form. Thank you.
NAME: DATE OF BIRTH: PRESENTADDRESS LANDMARK: PHONE NO PERMANENT ADDRESS: MOBILE PIN SURNAME

EDUCATION: OCCUPATION: MONTHLY INCOME: a) <Rs15,000 b) Rs15000-Rs-30,000 c)> Rs30, 000

1. Do you aware with life Insurance?

a) Yes

b) No

2. Are you interested in investing your money? i) Yes ii) No iii) Not now

3. Where you want to invest your money? i) Shares ii) Mutual funds iii) Insurance iv) Fixed deposits

4. What is your purpose for buying insurance policy?

a) For old age saving b) Family needs c) Time to time needs d) Opposite circumstances 5. In buying insurance policy, your decision is influenced by a) Family b) Friends c) Professional and trade union group d) Brand and Advertisement 6. What is your savings as a percentage of annual income? a).15 to 20 b) 20 to 40 c) 40 to 50 d) 50 to 60

7. How much money you want to invest in insurance? a) 10,000 to 15,000 b) 15,001 to 20,000 c) 20,001 to 25,000 d) 25,001 to 30,000 e) 30,001 to 35,000

7. In which company you believe most ? a) Private insurance company b) Public insurance company

8. Do you know how many insurance companies prevailing in India? a) 1 b) 8 c) 16 d) More than 20 d) No idea

9. What will you more attract in insurance? a) Bonus b) Generated Bonus c) Return depend on market

10. How do you want to give your premium? a) Cash b) Cheque c) Demand Draft 11. Do you think that insurance is necessary in todays life? a) Yes b) No

12. In what mode you want to give premium? a. Monthly b. Half-yearly c. Yearly 13. Do you want which type of insurance plan? a) ULIP b) Traditional c) Health d) Term Plan

14. Do you aware with Money Back Policy of any life insurance company ? a) Yes b) No 15. How much Money Back policy you have ? a) 0 b) 1 c) 2 d) 3 e) 4 and above 16. Do you interested to take Money Back policy ? a) Yes b) No c) Cant say 17. Do you interested to take Money Back policy? a. Yes b. No c. Cant say 18. Are you satisfied with the return on investment, which you are getting from your policy? a. Very satisfied b. Satisfied c. Cant say d. Not much satisfied e. Dissatisfied

Any Suggestion.

Signature:

Date:

Thank you for Your Cooperation