18-07-2014, 03:49 PM
A STUDY ON AWARENESS LEVEL OF RELIANCE LIFE INSURANCE IN TIRUNELVELI TOWN
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INTRODUCTION
The Reliance life insurance is one among the top insurance company in India. It is a part of the Reliance group. There are various plans available in Reliance life insurance. Such plans are Golden Year plan, Savings plan, etc.., It is necessary about the level of awareness about the company and the schemes it offer to the customer.
The customer awareness levels helps to find the need to increase the effectiveness of marketing campaign, so that the awareness level can be increase further.
The findings of the project help in finding the requirement of product awareness, changes to be done with the schemes / products to make them attractive for the existing and new customers. The customer aware of the schemes and the company is the light for the company to make effective changes to increase its performance.
Consumer awareness as a concept is of universal concern for all economies of the world. In the context of a booming Indian economy and unprecedented growth being witnessed by Insurance industry - specially life insurance -, it would be interesting to examine this concept in depth. Such a study will provide rare insights as to how to harness huge untapped market potential for life insurance to the benefit of vast rural and semi urban populace, as was envisaged by C.D. Deshmukh when Government of India nationalized life insurance business in 1956. And how to expand the reach of life insurance to every nook and corner of India and provide basic sense of security to masses.
Low penetration of insurance in India , as else where, has varied explanations, economic and sociological. One basic factor that puts a brake on growth is low propensity to consume: low propensity for life insurance , not necessarily because of considerations of affordability nor because of inadequate range of insurance products and services. The major determining factor is lack of awareness of life insurance per se. And this phenomenon is not confined torural and semi rural segments of society: it pervades urban populace as well. Surprising, isn’t it- but true.
Consumer awareness is the mainspring of demand creation which runs the wheels of industry – any industry for that matter. To this ‘demand’ curve, suppliers and service providers respond, by making available to consumers what they want, meeting their needs and expectations. Consumer awareness is the extent to which a brand is recognized by potential customers, and is correctly associated with a particular product.
INDUSTRY PROFILE
Life Insurance has come a long way from the earlier days when it was originally conceived as a risk covering medium for short periods of time, covering temporary risk situations, such as sea voyages. As life insurance became more established, it was realized what a useful tool it was for a number of situations, including
Life Insurance Market
The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products were 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed.
Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected.
The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers.
Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.
The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakhs to Rs 1.2 lakhs- way bigger than the industry average.
SETTLEMENT OPTION
A life insurance policy provision that indicates how proceeds from the policy are may be paid to a living insured or to beneficiaries. These options are a lump sum or cash payment option.; fixed amount option where payments are made monthly until all proceeds are interest are paid; fixed period option; life income option; or interest option where payments of interest on proceeds left with the insurer are made.
RELIANCE GROUP
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India’s largest business house with total revenues of over US$ 22.6 billion. The Group’s activities span exploration and production of oil and gas, refining and marketing, petrochemicals, textiles, financial services and insurance, power, telecom and infocom initiatives. The group exports its products to more than 100 countries the world over.
Reliance group revenue is equalent to about 3.5% of India’s GDP. The group contributes nearly 10% of the country’s indirect tax revenues and over 6% of India’s exports.
The Reliance Group Companies include:
Reliance Industries Limited,
Reliance Capital Limited,
Reliance Industrial Infrastructure Limited,
Reliance Telecom Limited,
Reliance infocom Limited,
Reliance General Insurance Company Limited,
Reliance Petrochemicals Corporation Limited,
Reliance Energy Limited,
Reliance life insurance Limited.
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd, of the Reliance – Anil DhirubhaiAmbani 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 life insurance is the fastest growing life insurance company in India and has an incremental market share of 4% amongst private insurers. The company has third largest distribution network in terms of number of agents operating out of 143 locations across the country.
ABOUT AND PLAN
Reliance Plan, a Insurance plan underwritten by Reliance Life Insurance Company Limited, is designed to work in conjunction with contributions towards savings. The uniqueness of this Plan is that it not only provides benefits for covered injuries but also for other injuries by encashment from the unit fund. This plan from Reliance Life offers the Hospitalization and Surgical Benefits and also covers Critical Illness. In short this plan provides you with a personalized Quality cover that fits your lifestyle.
REVIEW OF LITERATURE
Life insurance has become the most widely used means of family financial security planning. Apart from that, it can help ensures the financial security of family, pay the support of dependents and meet outstanding financial obligations when the policyholder dies. Furthermore individuals and families need to become aware of the benefits, issues and differences in various life insurance plans, (BCG, 2003).Life insurance programs are an important part of an individual’s financial plan. The traditional view of life insurance as a commodity – simply
CREATING CONSUMER AWARENESS IN LIFE INSURANCE
Consumer awareness as a concept is of universal concern for all economies of the world. In the context of a booming Indian economy and unprecedented growth being witnessed by Insurance industry - specially life insurance -, it would be interesting to examine this concept in depth. Such a study will provide rare insights as to how to harness huge untapped market potential for life insurance to the benefit of vast rural and semi urban populace, as was envisaged by C.D. Deshmukh when Government of India nationalized life insurance businessin 1956. And how to expand the reach of life insurance to every nook and corner of India and provide basic sense of security to masses. The major determining factor is lack of awareness of life insurance per se. And this phenomenon is not confine
Consumer awareness is the mainspring of demand creation which runs the wheels of industry – any industry for that matter. To this ‘demand’ curve, suppliers and service providers respond, by making available to consumers what they want, meeting their needs and expectations.
Bull World Health Organ vol.80 no.8 Genebra Aug. 2002:
The findings have implications for community-based health insurance schemes in India and elsewhere. Such schemes can protect poor households against the uncertain risk of medical expenses. They can be implemented in areas where institutional capacity is too weak to organize nationwide risk-pooling. Such schemes can cover poor people, including people and households below the poverty line. A trade off exists between maintaining the scheme's financial viability and protecting members against catastrophic expenditures. To facilitate reimbursement, administration, particularly processing of claims, should happen near claimants. Fine-tuning the design of a scheme is an ongoing process — a system of monitoring and evaluation is vital
According to Prithviraj Dasgupta and Kasturi Sengupta IN 2002
With the advent of the Internet, online processes are replacing conventional models in our society. The greatest impact in online technology has been achieved by e-commerce. E-commerce is attractive both to buyers and sellers as it reduces search costs for buyers and inventory costs for sellers. In this paper we investigate the impact of e-commerce on the insurance industry in India. The recent growth of Internet infrastructure and introduction of economic reforms in the insurance sector have opened up the monopolistic Indian insurance market to competition from foreign alliances. We study the evolving scenario in the insurance industry in India and identify the features of online insurance that improve the conventional insurance model and thus, makes it more attractive for the Indian insurance industry to go online
CONCLUSION
1. The study made on awareness level of Reliance life Insurance in Tirunelveli reveals that the awareness level of Reliance life Insurance in the areain 46% of the sample population. So the RLI should promote their scheme in the area actively.
2. The number of policy holders are only 28% of the sample population. The company should increase the awareness programs, marketing compaigns and training programmes for agents to increase this percentage.
3. 64% of the respondents are satisfied with the advisory services in Tirunelveli. Thus the company is having a strong advisory council