INTERNSHIP REPORT ON

RELIANCE LIFE INSURANCE

Submitted in partial fulfillment of M.B.A Degree Course of

M.P.BIRLA INSTITUTE OF MANAGEMENT

Submitted By

SIMPLE SARITA

(REGD.NO:05 XQCM 6091)

Under the Guidance Of

Prof. JAIRAJ NAIR

M.P.BIRLA INSTITUTE OF MANAGEMENT

BANGALORE
 DECLARATION

I hereby declare that this Internship report titled “INTERNSHIP

REPORT ON RELIANCE LIFE INSURANCE COMPANY” is a

record of independent work carried out by me, towards the partial

fulfillment of requirements for MBA course of Bangalore University

at M.P.Birla Institute of Management. This has not been submitted in

part or full towards any other degree.

PLACE: Bangalore SIMPLE SARITA

DATE:
 PRINCIPAL’S CERTIFICATE

This to certify that this Internship report titled “INTERNSHIP

REPORT ON RELIANCE LIFE INSURANCE COMPANY” has

been prepared by Miss SIMPLE SARITA, bearing the registration

no.05 XQCM 6091 under the guidance and supervision of Prof.

JAIRAJ NAIR, MPBIM, Bangalore.

PLACE: Bangalore Principal

DATE: (Dr. N. S. Mallavalli)

 GUIDE’S CERTIFICATE

This to certify that this Internship Report titled “INTERNSHIP

REPORT ON RELIANCE LIFE INSURANCE COMPANY” done by

SIMPLE SARITA bearing Registration No.05 XQCM 6091 carried

under my guidance during the academic year 2006-07 is in partial

fulfillment of the requirement for the award of MBA degree by

Bangalore University. To the best of my knowledge this report has not

formed the basis for the award of any other degree.

Date: Prof. JAIRAJ NAIR

Place: Bangalore (Internel Guide)

 ACKNOWLEDGEMENT

There are people who, simply by being what they are influence and inspire us to
do things, which we ourselves never thought capable of doing. Among these are
my parents, teachers and friends.

Any work without experience is a sure recipe for casualty in the whole project.
As a trainee in RELIANCE LIFE INSURANCE it seemed quite tough to me to
have such experience. But I am Lucky enough that I was backing of several
experienced persons who have guided me like mentor whenever I was in need.

At RELIANCE LIFE INSURANCE I have been fortunate to receive strong

support and coordination of Mr. Uday S Sir (senior sales manager). The support
from the faculty teacher cannot be avoided. I am indebted to their full dedicational
teaching contribution. I am very thank full to Mr. Jairaj Nair who provided all
solutions to my quarries.

Last but not the least it was the love and indispensable support of my parent and

family member who despite of all inconvenience provided me with the best

possible of every thing in my assent to the present accomplishment. It should be

deemed that those who are not mentioned have not gone without my heartful

acknowledgment. I am also thankful to my classmates for their helping hand.

 Executive Summary

This report can be broadly divided into four segments those are as follows:

1.Definition of insurance and industry overview.

2.Organizational overview.

3.Research problems and findings.

4.Research limitations, recommendations and learning outcome.

The research problems given to me, was mainly concerned with finding out the
consumer perception about life insurance sector and to find out the brand
awareness of Reliance life among the consumer. To find out the same I took the
help of questionnaire method and tried to find out the conclusion on the basis of
responses given by the respondents in the questionnaire.

The second task for me was to do a comparative analysis between the products
offered by Reliance Life with that of the products offered by some of the leading
players in the private sector of the life insurance industry. For this I mainly
depended on the secondary data i.e. company broachers, information provided on
the Internet but on some occasions I also went to different companies to collect
some first hand information’s about their products. The research findings are
based on the information that I have collected in the above-mentioned ways.

Then the analysis was made on the pitfalls in the research and was can Reliance
life improve as per the growth in life insurance sector is concerned. And atlast, the
learning outcome has been stated.
 Chapter 1

INTRODUCTION

About the Indian Insurance Industry:

INDIAN INSURANCE

LIFE GENERAL
INSURANCE INSURANCE
 PUBLIC PRIVATE PUBLIC PRIVATE
SECTOR SECTOR SECTOR SECTOR

LIFE INSURANCE:

Insurance business in India is growing at an annual rate of 21.9%. Together with

banking services it accounts for 7.1%of GDP. But insurance penetration as
compared to other nations of the world is very low in India. In 2004-05 it was
2.53% for life insurance and 0.65% for general insurance.

Life insurance penetration in India was less than 1% till 1990-91. During the 90s
it was between 1 – 2% and from 2001 onwards it is over 2%. This is due to active
role played by IRDA in licensing private players and taking steps to increase
awareness among masses. India’s insurance sector is poised for explosive growth
powered by better penetration into rural and semi urban regions. Gross insurance
premium have been rising The gross premium collected in the last fiscal year was
Rs.27000crores as compared to that of Rs.25343crores last year.

Since liberalization of insurance sector in 2001, 14 life insurance companies have

entered the market out of which 13 are joint ventures with international
companies. While private players have eaten up a part of LIC’s market share,
PSU have been witnessing tremendous growth. LIC’s premium collection is
Rs.18000crores as compared to only 200crores in 1957. LIC’s premium accretion
grew by 42%. Among the private player companies like Bajaj-Allianz and ICICI
have captured the major portion of the market and others are still trying to
establish themselves in the Indian market.
GENERAL INSURANCE:

General insurance in India has been expecting growth except in some portfolios
like motor insurance, fire and engineering. These portfolios are still under tariff-
this means that premium depends on fixed predetermined rate structure.

General insurance has low market penetration. It is 1.95% and ranks 51st.
However, in collection of premium it is ranked 23rd. The ratio of the premium
collected to that of GDP is 0.58%. The main reason for the poor performance of
general insurance industry was because of the slow settlement of claims.
Moreover the rate of claim in India was highest in the world. It was 70%
compared to 40% internationally. This meant that out of 100 people who have
insured for their commodities, 70 claimed for loss or damage. The main reason
for the lack of demand for general insurance is that people consider it as an
unnecessary expenditure. However it must be noted that the general insurance
has been earning consistent profits and has an efficient dividend paying record
accompanied by a steady growth in its financial resources. Through investments
in the government sector and socially oriented sectors the industry has
immensely contributed to the nation’s development. The industry is recognized
as one of the largest financial institutions in the country. Some of the private
players in this sector are-ICICI, Lombard, Reliance, Royal-Sundaram etc.

PRIVATE PLAYERS IN THE LIFE INSURANCE SECTOR:

The different private players in the life insurance sector and their associations
with foreign companies are given below:

COMPANY INDIAN FOREIGN TOTAL FDI% FOREIGN

PROMOTER/ INSURER CAPITAL CAPITAL
PARTNER (RS. Mill.) (RS. Mill.)
Reliance Reliance None 2,170 0 0
Life Group-
Insurance ADAG

Aviva Life Dabur Aviva (UK) 4,590 26 1193.4

Bajaj- Bajaj Auto Allianz 3,680 26 960

Allianz (Germany)

Birla Aditya Birla Sunlife 4,000 26 1,040

Sunlife Group (Canada)

HDFC HDFC Standard 2,500 18.9 470

Standard Life (UK)

ICICI ICICI Bank Prudential 10,850 26 2820

Prudential (UK)

ING Vysya Vysya Bank ING Ins. 4,400 26 680

(Netherlands)

Kotak Kotak Old Mutual 2,600 26 680

Mahindra Mahindra (South
Old Mutual Bank Africa)

Max Max India New York 5,000 26 1,300

New York Life (US)
 Met Life J & K Bank Met Life (US) 3,550 26 920

Sahara Life Sahara India None 1,000 0 0

Insurance

SBI Life SBI Cardiff 3,500 26 910

(France)

TATA AIG TATA Group AIG (US) 3,810 26 990

Some of the companies who are waiting to come to the life insurance sector are:

 IDBI – FORTIS

 AXA – BHARTI

 Syndicate Bank

Market Share Of LIC And Private Players Upto March 2006:

LIC
Private Players

LIC market share continued to decline in the period upto march 2006; it
declined to 71.44% from 78.23% in the same period last year. On the other hand
the market share of the private players is continuously growing up, it increased
to 28.56% from 21.77% in terms of insurance premium.

INSURANCE SECTOR’S CONTRIBUTION TOWARDS

NATIONS ECONOMY:

Some surveys have predicted that India and China will play a very vital role in
the years to come. Indian economy can be termed as an emerging economy as it
is doubling its GDP in 3 to 5 years and moreover it is not dependent on any
particular sector for its GDP growth.

If we look at the GDP of the Indian economy very closely over the years, we can
easily come to know the changing structure of the economy. We can also come to
know the changing contribution of the various sectors like agriculture,
manufacturing and the service sector. In the financial year 1993-94, agricultural
sector contributed to 31%, manufacturing accounted to 26.3% and the service
sector contributed to 42.7% of the total GDP of the country. Thus over the years
as India became an emerging economy in 2003-04, agricultural sector
contributed for 21.7%, manufacturing contributed for 26.8% whereas service
sector contributed for 51.4% of the total GDP.

There has been 7.5% growth in the total GDP of the country and is estimated to
grow at 7.5% in 2005-06. The Indian economy has shown signs of strong
performance despite a rise in oil prices, high inflation rate and abnormal rains in
many parts of the country. The overall growth of the Indian economy has been
equally supported by all the three sectors of the economy, i.e. the agriculture,
manufacturing and the service sector. Insurance, together with banking sector,
contributes to about 7.1% of the total GDP of India, and the gross premium
collected contributes to about 2% of the total GDP of the country.

The insurance sector in India has shown full potential from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360 degree
turn witnessed over a period pf almost 200 years.
ORGANISATIONAL OVERVIEW
Chapter 2

ORGANISATIONAL OVERVIEW

Before talking about ‘Reliance Life Insurance Company Limited’, lets have a
brief introduction about its parent company ‘Anil Dhirubhai Ambani Group’.
Reliance is brand name, which was made popular by Mr.Dhirubhai Ambani all
over the world, and his son Mr. Anil Ambani is carrying on the same tradition.
After splitting with his brother Mr. Mukesh Ambani, Anil Ambani created his
ADAG and soon he started to achieve the success that was once started by his
father.

ANIL DHIRUBHAI AMBANI GROUP:

The Reliance-Anil Dhirubhai Ambani Group is among India’s top three private
sector business houses on all major financial parameters, with a capitalization of
Rs100,000 crore (US$ 22 billion), net assets of Rs 31,500 crore (US$7 billion),
and net worth to the turn of Rs27,000crore (US$ 6 billion).Across different
companies, the group has a customer base of over 50 million, the largest in India,
and a shareholder base of over 8 million, among the largest in the world.

Through its products and services, the Reliance-ADA Group touches the life of 1
in 10 Indians every single day. It has a business presence that extends to over
45000 towns and 300000 villages and 5 continents across the world.

The interests of the Group range from communications (Reliance

Communications) and financial services (Reliance Capital Ltd) to generation,
transmission and distribution of power (Reliance Energy), infrastructure and
entertainment (Reliance Media & Entertainment).
ADA GROUP’S – RELIANCE
STRUCTURE
 RELIANCE-ADA GROUP

Leadership team

Communication Energy Capital

Entertainment

Wireless Generation Mutual Funds

Add Labs

Broadband Transmission Life Insurance

Radio

Webworld Distribution General Insurance

New Initiatives

Global Business Power Trading R Trade

EPC Private Equity

New Initiatives

OBJECTIVES OF ADA GROUP:

 Stakeholder Interest

 Network
 Consumer Focus

 Excellence in Execution

 Team Work

 Proactive Innovation

 Leadership by Empowerment

 Social Responsibility

 Respect for Competition

Stakeholder Interest
We value the trust of shareholder, and keep their interests paramount in every
business we make, every choice we exercise.

Network
We possess no greater asset than the quality of our human capital and no greater
priority than the retension, growth and well being of our vast pool of human
talent.

Consumer Focus
We rethink every business product and service from the standpoint of the
consumer, so as to exceed expectations at every touch point.

Excellence in Execution
We believe in excellence of execution - in large, complex projects as much as
small everyday tasks. If something is worth doing, it is worth doing well.
 Team Work
The whole is greater than the some of its parts; in our rapidly changing knowledge
economy, organizations can prosper only by mobilizing diverse competencies,
skill sets and expertise; by imbibing the spirit of “thinking together”- integration
is the rule, escalation is an exception.

Proactive Innovation
We nurture innovation by breaking silos, encouraging cross-fertilization of ideas
& flexibility of roles and functions. We create an environment of accountability,
ownership and problem solving - based on participative work ethic and leading
edge research.

Leadership by Empowerment
We believe leadership in the new economy is about consensus building, about
giving up control; about enabling and empowering people down the line to take
decisions in their areas of operations and competence…

Social Responsibility
We believe that organizations like individuals, depend on the support of the
community for their survival and sustenance, and must repay their generosity in
the best way they can…

Respect for Competition

We respect competition – because there is more than one-way of doing things
right. We can learn as much from the success of others as from our own failures.
 VISION OF ADA GROUP:

 To build a global enterprise for all our stakeholders, and

 A great future for our country,

 To give millions of young Indians the power to shape their destiny,

 The means to realize their full potential…

COMPANIES UNDER ‘ADA GROUP’

A) Reliance capital

Reliance capital (RCL) is one of India’s leading and fastest growing private sector
financial services companies, and ranks among the top 3 private sector financial
services and banking companies, in terms of net worth.

The company has interest in asset management and mutual funds, life and general
insurance, private equity and proprietary investments, stock broking and other
activities in financial services.

RCL is registered as a depository participant with National Securities Depository

Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the Securities
and Exchange Board of India (Depositories and Participants) Regulations, 1996.
RCL has sponsored the Reliance Mutual Fund within the framework of the
Securities and Exchange Board of India (Mutual Fund) Regulations, 1996. RCL
primarily focuses on funding projects in the infrastructure sector and supports the
growth of its subsidiary companies, Reliance Capital Asset Management Limited,
Reliance Capital Trustee Co. Limited, Reliance General Insurance Company
Limited and Reliance Life Insurance Company Limited. As of March 31,2005, the
company’s investment in infrastructure projects stood at Rs.1071crores. The
investment portfolio of RCL is structured in a way that realizes the highest post-
tax return on its investments.
B) Reliance Communication Ventures Limited

The flagship company of the Reliance – ADA Group, Reliance Communication

Ventures Limited, is the realization of our founder’s dream of bringing about a
digital revolution that will provide every Indian with affordable means of
communication and a ready access to information.

The company began operations in 1999 and has over 20 million subscribers today.
It offers a complete range of integrated telecom services. These include mobile
and fixed line telephony, broadband, national and international long distance
services, data services and a wide range of value added services and applications
aimed at enhancing the productivity of enterprise and individuals.

C) Reliance Energy Limited

Reliance Energy Limited, incorporated in 1929, is a fully integrated utility

engaged in the generation, transmission and distribution of electricity. It ranks
among India’s top listed private companies on all major financial parameters,
including assets, sales, profit and market capitalization.

It is India’s foremost private sector utility with aggregate estimated revenue of Rs

9,500 crore (US$ 2.1 billion) and total assets of Rs 10,700 crore (US$ 2.4 billion).

Reliance Energy Limited distributes more than 21 billion units of electricity to

over 25 million consumers in Mumbai, Delhi, Orissa and Goa, across an area that
spans 1,24,000 sq. kms. It generates 941 MW of electricity, through its power
stations located in Maharashtra, Andhra Pradesh, Kerela, Karnataka and Goa.

The company is currently pursuing several gas, coal, wind and hydro-based power
generations project in Maharashtra, Arunachal Pradesh, Uttar Pradesh and
Uttaranchal with aggregate capacity of over 12,500 MW. These projects are at
various stages of development.
 Reliance Energy Limited is vigorously participating in emerging opportunities in
the areas of trading and transmission of power. It is also engaged in a portfolio of
services in the power sector in Engineering, Procurement and construction (EPC)
through a network of regional offices in India.

D) Reliance Health

In a country where health is fast becoming a booming industry, Reliance health is

a focused healthcare services company enabling the provision of solution to
Indians at affordable prices. The company aims at providing integrated health
services that will compete with the best in the world. It also plans to venture into
diversified fields like Insurance, Administration, Healthcare Delivery and
Integrated Health, Health Informatics and Information Management and
Consumer Health.

Reliance health aims at revolutionizing healthcare in India by enabling a

healthcare environment that is both affordable and accessible through partnerships
with government and private businesses.

E) Reliance Media & Entertainment

As part of the Reliance – ADA Group, Reliance Entertainment is spearheading

the Group’s foray into the media and entertainment space. Reliance
Entertainment’s core focus is to build significant presence for Reliance in the
Entertainment eco-system: across content and distribution platforms. The key
content initiative are across movies, music, sports, gaming, internet and mobile
portals, leading to direct opportunities in delivery across the emerging digital
distribution platforms: digital cinema, IPTV, DTH and Mobile TV. Reliance
ADA Group acquired Adlabs Films Limited in 2005, one of the largest
entertainment companies in India, which has interests in film processing,
production, exhibition & digital cinema. Reliance entertainment has made an
entry into FM Radio through Adlabs Radio, having won 45 stations in the recent
bidding, which will soon be the radio station with the largest footprint in India.
COMPANY PROFILE
 Chapter 3

COMPANY PROFILE

RELIANCE LIFE INSURANCE COMPANY LIMITED:

As it has been presented before “Reliance Life Insurance Company Ltd.” is a part
of Reliance Capital, which is again a part of ADAG. Reliance Capital acquired
100% share of an Australian Based life insurance company i.e. AMP SANMAR
LTD in October 2005, to form the Reliance Life Insurance Company. Though the
acquisition was made in October, the functioning of Reliance Life started from
February 2006. It is one of the two private players (along with Sahara) in the life
insurance sector, which does not have any foreign collaboration. The basic idea
behind the formation of Reliance Life was to provide the people of India with
some better investment alternatives as well as to make them aware about the
usefulness of life insurance for catering their future needs. Reliance Life
Insurance has a pan presence and a range of products catering to individual as
well as corporate needs. A total of 16 products covering savings, protection &
investment requirements. Out of 16 products 12 are targeted to individuals and
four to group business. Reliance Life is committed to attaining leadership
rankings in the industry within the next few years.

For the year ended 31st March 2006, during the period under review Reliance
Capital Limited acquired AMP Sanmar Life Insurance Company Limited with the
approval of Regulatory and Development Authority (IRDA). The premium
income increased to Rs.224crore from 107crore an increase of 109% within a
short span of six months of RCL taking over the company.
Financial position for the quarter-ended 30th June 2006, the premium income
increased to Rs.132crores (US $ 38.8million) for the period under review up from
Rs.18crore in the first quarter for the previous year. An increase of 633%.

GOALS TO ACHIEVE:

Reliance Life Insurance has the following goals to achieve in the near future:

 Emerge as a transnational life insurer of global scale and standard.

 Achieve impeccable reputation and credentials through best business

practices.

 To become the market leader among the private players in the Indian Life
Insurance sector by the end of the current financial year.

MISSION:

Create unmatched value for everyone through dependable, effective,

transparent and profitable life insurance and pension plans.

VISION:

Empowering everyone live their dreams.

GUIDING PRINCIPLES:

 Customer care and satisfaction

 Corporate Governance

 Creativity and Innovation

 Competitiveness
a) Customer care and satisfaction: The foremost responsibility for an
organization is to provide its customers utmost care and satisfaction and
Reliance Life is no exception in this regard. The main objective of the
organization is to provide the customers with best possible financial plans,
which will match their needs and expectations.

b) Corporate Governance: In today’s modern business world, corporate

governance is utmost essential because it gives a clear picture of the
organization to shareholders as well as to the general public at large. So, it is
aim of Reliance Life to maintain ethical practices in all their business
transactions, to promote a better picture of themselves.

c) Creativity and Innovation: After the IRDA act 1999, the private players
are also allowed to participate in the life insurance sector, and this has opened a
vast area of field to operate for many of the companies and that’s why we see
that not less than 15 players have entered the market in the last few years. So, to
survive in this market, the goal of reliance life is ‘Creativity and Innovation’
which is the best way to success for any organization.

d) Competitiveness: It provides the base for any organization to operate in any

area of business and life insurance is no exception. Competitiveness provides
the urge for any company to outperform their competitors in the market and
become the leader in that particular sector. It is the competitiveness, which has
impelled Reliance life to set a goal such as to become the market leader among
all the private players by the end of the current financial year.

DEPARTMENTS AND BRANCHES OF

RELIANCE LIFE:

Branches:
There are more than 200 branches of Reliance Life spread all over the country, the
head office being situated in Chennai. In the city of Bangalore though there are only
3 branches of Reliance Life and those are situated in:

a) Malleshwaram

b) Jayanagar

c) Indiranagar

They are planning to open new branches at place like Mahatma Gandhi Road and
Koramangala very soon.

Departments:

The various departments that can be seen in an insurance organization and that has
been observed by me are as follows:

a) Marketing Department: This department mainly deals with the marketing

and promotion part of the insurance company. They spend most of their time in
formulating strategies to make their products known to the common people and
to promote the same in easy and cost effective way.

Marketing at Reliance Life Insurance covers an array of activities like

advertising, branding, market development, channel support, direct and alliance
marketing, and corporate communications. The people in each of these sub
functions perform a unique job.

b) Sales Department: This department mainly deals with the sales part of the
insurance company; the department includes designations like Sales Manager
and Financial Advisor who personally contact people performing tasks of sales
of various products.
c) Accounts/Financial Department: This department has the task of keeping
track of various expenses incurred by the various other departments of the
organization and also performs the task of allocating various funds to difference
departments according to their requirements.

d) Human Resource Department: The Human Resource manager of the

company handles this department. The function of this department involves the
well being of the employees of the company, i.e. to see whether there is
employee grievance in the organization or not and if it is there then what are the
possible causes for that and also try to find out the solutions for the same if
possible. In the area of Human Resources we are looking towards fulfilling our
core values through:

 An open environment enabling free interaction between all levels.

 A balanced scorecard approach to strategy deployment and

performance measurement, which set goals and measure financial,
customer focused, process related and employee development related
initiatives.

 Aggressive Reward & Recognition plans including sales incentives.

 Career Development plans that will identify potential and create

avenues for growth.

 Intensive training practices for both functional as well as competency

development.

 Knowledge sharing and certification practices.

 Planned team building and fun events.

 Creating Reliance Life Insurance family including employees,

associates and their families.
e) Investment Department: This department mainly deals with the task of
investing the money of the policyholders in such a way that will ensure both
safety of the money and also a steady return on the same. The task of this
department is very difficult as it deals with the money given by the
policyholders, so it requires lot of thinking on part of the personnel of this
department before deciding where to invest the money.

f) Actuarial Department: This department is under the supervision of an

Actuary who decides the premiums and charges to be taken from the policy
holders on the basis of certain information’s (like age, annual income etc.)
provided by the prospective customer. The task also involves the calculation of
mortality charges, which requires high statistical knowledge from one’s point of
view. So, this department involves in the calculation of various amounts to be
charged from the prospective customer.

RELIANCE LIFE INSURANCE PRODUCTS:

Reliance Life Insurance has products, which can meet the needs of both the
individuals as well as the corporate houses. The products of the Reliance Life can
be divided broadly into two segments, namely:

a) Individual Products

b) Group Products

INDIVIDUAL PRODUCTS:

Reliance Life offers these products by mainly focusing to the needs of the
individual persons. These products will offer them the best solutions possible to
their different needs. The products offered under this category are as follows:

 ENDOWMENT PLAN
 SPECIAL ENDOWMENT PLAN

 CASH FLOW PLAN

 CHILD PLAN

 TERM PLAN

 WHOLE LIFE PLAN

 MARKET RETURN PLAN (ULIP)

 GOLDEN YEAR PLAN

 CONNECT TO LIFE PLAN

ENDOWMENT PLAN: This plan provides an easy and inexpensive way

to protect the needs of the customer, his/her family and business of the
customer. In this plan the customer has the option of choosing the sum assured
on the basis of his current fiscal condition and probable future expenses, he also
has the option of choosing the term of the plan. In the event of untimely death,
this plan will provide all the support necessary to the beloved ones of the
policyholder.

SPECIAL ENDOWMENT PLAN: This insurance policy is designed

for the people who want to combine savings with extended security. The special
feature of this plan is that the customer will get the benefit (life protection) of
the plan even after five years from the date on which the customer has stopped
paying the premium. This policy can also be taken as one, which can share the
profit of the company.

CASH FLOW PLAN: This policy is designed for the people who have a
recurring need of reinvestment in the business or look for short-term investment
channels. The advantage of this policy is that in no time the customer has to pay
a sizable amount of money as premium and on the other hand he can ensure a
periodic return of a lump sum amount, which can become a basis for
reinvestment at a later period.

CHILD PLAN: This insurance policy is designed for those people who wish
to save money for future when there will be a recurring need of substantial
amount of money, this is true when someone needs money for the higher
education of his son or daughter. The unique feature of this policy is that the
risk cover continues for the full sum assured even when the periodical payments
are being made.

TERM PLAN: This insurance policy is designed for those people who want
only life cover for their family and does not want to save anything for
themselves. It can also be useful for business house who want to cover their
business against the sudden loss of partners or manpower. The premium
charged for this policy is comparatively low than the other policy offered by
Reliance Life.

WHOLE LIFE PLAN: This insurance policy is designed for those people
who does not want to avail any benefit for themselves but rather want to create
an immediate estate to protect their family by availing of insurance cover on
their life at a very low cost the unique feature of this policy is that the risk cover
continues throughout the duration of the policy holder’s life irrespective of the
period of premium payment.

MARKET RETURN PLAN (ULIP): In this policy one can have the
twin advantage of insurance protection as well as reaping the benefits of
investment growth. It is a flexible plan which works throughout the life and
meets the changing requirements like additional protection, liquidity through
cash, option to invest in different class and many more.

GOLDEN YEAR PLAN: This policy is a flexible package that gives the
customer the freedom of choice in choosing the type of investment, life cover,
vesting options such as commuting and annuity options. This policy is available
for all individual ranging between the ages of 18 – 65.

CONNECT TO LIFE PLAN: This plan is another endowment life cover

where, the maximum cover is available up to Rs.10,00,000. Reliance Connect to
Life Plan ensures the customer to upgrade his policy by enhancing it at the end
of the first and the second year of his taking the policy and his cover is available
without any medical examination and the documentation needed is very
minimal.

GROUP PRODUCTS:

These insurance products are mainly designed keeping in mind the needs of the
group of people in an organization or any other place. The various plans under
this category are as follows:

 TERM ASSURANCE PLAN

 RELIANCE EMPLOYEE DEPOSIT LINKED INSURANCE SCHEME

(EDLI)
 RELIANCE GROUP GRATUITY POLICY

 RELIANCE GROUP SUPER ANNUATION POLICY

TERM ASSURANCE PLAN: This policy is one-year renewable term

assurance contract. The sum is paid on the happening of the event for which the
policy was taken within that one year. After one year the policy can be further
renewed for one more year.

RELIANCE EMPLOYEE DEPOSIT LINKED INSURANCE

SCHEME (EDLI): All establishments which have at least 10 full time
employees and which come under the purview of Employee’s provident fund
and miscellaneous provisions act 1952, have a provision to undertake Employee
Deposit Linked Insurance Scheme to provide life insurance to their employees.
Reliance EDLI has been approved as a substitute for the EDLI scheme 1976 that
was provided earlier.

RELANCE GROUP GRATUITY POLICY: It is a policy that offers

various services to manage the gratuity obligations of any particular
organization. It helps the management to provide all the benefits of gratuity to
the employees without requiring proper control from their behalf.

RELIANCE GROUP SUPERANNUATION POLICY: It is a

policy that offers various services to manage the superannuation obligation of
any particular organization. It gives choice to the organization to tailor the super
annuation facilities for their employees according to their convenience.
 Chapter 4

CORPORATE PROFILE:

CEO: Mr. P. NANDGOPAL

CFO: Mr. RAJESH BAHL

CMO: Mr. ROHIT GAURAV MULL

COO: Mr. K.V.SRINIVASAN

VICEPRESIDENT (group infrastructure): Mr. K.SURESH BABU

APPOINTED ACTUARY: Ms. POURNIMA GUPTE

 CHIEF INVESTMENT OFFICER: Mr. R. RANGARAJAN

HEAD HR: Ms. MANEESHA THAKUR

Mr. P Nandagopal joined Reliance Life Insurance Company Limited as CEO on

October 4th, 2005 - the day the share holding of AMP Sanmar was transferred to
Reliance Capital Group. He is an MBA with Finance and Marketing majors, an
Associate Company Secretary and a Fellow of the Insurance Institute of India.

Mr. Rajesh Bahl is the Chief Financial Officer (CFO) of Reliance Life Insurance
Company Limited. In his role as CFO, Mr. Bahl is responsible for the overall
finance and accounts operations.

Mr. Rohit Gaurav Mull is the Chief Marketing Officer at Reliance Life
Insurance Company Limited. In this role Mr. Mull is responsible for the overall
sales and marketing operations and heads the 5 sales channels, product, training
and marketing team at Reliance Life Insurance.

Mr. K.V. Srinivasan is the Chief Operating Officer of Reliance Life Insurance
Company Limited. In this assignment with Reliance Life Insurance, he heads the
Operations, Finance, IT, Legal & Secretarial departments.

Mr. K. Suresh Babu is the Vice President – Group Infrastructure at Reliance

Life Insurance Company Limited and heads Branch Expansion and Group
Infrastructure.

Ms. Pournima Gupte is the Appointed Actuary at Reliance Life Insurance

Company Limited and heads the Actuarial Department.

Appointed Actuary is the position created by the IRDA Act. Though Appointed
Actuary happens to be an employee of the Company, he/she acts as proxy of the
Regulator and ensures that the provisions of the various acts (such as IRDA Act,
Insurance Act etc) are complied with. On one hand, she has to protect the long
term interests of the policyholders and on the other, protect the interests of the
shareholders while complying with the various controls/restrictions imposed by
the Insurance Regulatory and Development Authority. To comply with her legal
obligations, the Appointed Actuary enjoys the privilege of attending the Board
meetings as a requirement of the relevant law.

Mr. R Rangarajan is the Chief Investment Officer at Reliance Life Insurance

Company Limited and heads the investment function. The objective of the
Investment team is to give best possible return on investments, keeping in view
the risk appetite of the Shareholders and Policyholders.

Ms. Maneesha Thakur heads the Human Resources Department at Reliance Life
Insurance Company Limited.

In this role, Ms. Thakur is responsible for developing a performance driven

culture and ensuring manpower availability as per budgeted numbers with
required competencies. She is also working on increasing media presence in
people related areas by positioning key hires and social initiatives at local levels.
She has also undertaken marketing and branding campaigns for key HR
initiatives. One of the most challenging tasks for her is to build organisational-
people capabilities and developing leaders
 Chapter 5

‘SWOT ‘ ANALYSIS

STRENGTHS:

 Impeccable brand name of ‘Reliance’.

 Sound financial and infrastructural backup.

 Real urge to become the leader in the market.

 High quality service delivered by the company

Weaknesses:

 Unawareness among the people about Reliance Life Insurance.

 Recent split in the top management may have a bad impact on the general
public.

 As they have recently come to the insurance sector, not aware about the pros
and cons of the sector.

OPPORTUNITIES:

 Many people now a days are being aware of the benefits of insurance, so
there is a vast market to target by the company.
  Reliance group already has a huge number of customers in different fields of
operations, so there is possibility that those people may be willing to invest
in this area also.

 The success in one of the fields in Reliance, which may create a good
feeling within the customers about Reliance Life Insurance also.

 Company can extend its operations to rural and sub urban areas by
developing products, which suit their needs.

THREATS:

 Most of the people still believe on public players like LIC, so it is very hard
to shift those customers from LIC to other companies like Reliance.

 The number of players in the private insurance sector is increasing day by

day, so the competition is getting tough.

 The failure in one of the fields of Reliance may affect adversely the business
opportunities of Reliance Life Insurance.
 PART II

A REPORT

ON

1.Consumer perception about Life Insurance sector and to make a

study with regards to Reliance Life among masses.

2.Comparative analysis between the Reliance products with those of

its counterparts.
 Chapter 6

CONSUMER PERCEPTION ABOUT LIFE

INSURANCE AND STUDY WITH REGARDS TO
RELIANCE LIFE AMONG MASSES

TRACKING POTENTIAL CUSTOMERS

 Know about the various investment alternatives that are preferred by people.

 Find out the important criteria’s that common people think are important
before investing in a life insurance policy and

 Increase the brand awareness.

EIGHT MAJOR BENEFITS, WHICH ONE SEEKS

FOR, IN A LIFE INSURANCE COVER:

a) Premium

b) Charges taken by company

c) Policy Term

d) Rider Benefits provided by the company

e) Bonus and interests paid by the company

f) Services provided by the company (pre and post sales),

g) Accessibility of the company &

h) Brand

SAMPLE SIZE:

I used my friends, family and contacts for sampling which approximately

numbers to 50 people.

RESEARCH FINDINGS:

Analysis is done by sighting at the various investment alternatives that are

available to the people and among that which are the most preferred one’s. The
following data was collected through the available 50 samples, journals, and
magazines and through net as well.

Investment alternative preferred by Insurance

people Mutual Fund

PPF
7% 4% 18% Real Estate
8%
Bank Deposit

10% Equity
15%
Post Office

12% Gold and

13% Silver
13% Bonds and
Debentures
 So, from the above representation it can be seen that 18% of the people think that
insurance is the most preferred investment alternative that is available to them,
followed by alternatives such as Mutual Fund (15%), PPF (13%), Real Estate
(13%) etc. The reason that can be attributed to the liking of people towards
insurance may be because of that insurance provides both life cover as well as
security to the holder of the policy and also to the family members of the
insurance holders. As well as now a days insurance are also providing option to
invest in the markets through plans like ULIP, which gives the holder both the life
cover as well as opportunity to earn income at the market rate. So, these are the
reasons why people like to invest in the insurance in comparison to others.

SEGMENTATION OF THE RESPONDENTS:

Now, let us turn our attention towards the respondent who were covered under
this study. These respondents can be categorized on the basis of certain important
criteria like age group, annual income, and people having life insurance policy
and awareness about Reliance Life Insurance in the following ways:

 Age group

 Annual income

 Hold life insurance policy

 Awareness about Reliance life insurance

AGE GROUP:

Age Frequency Percent Valid Percent Cumulative

Percent

< 30 yrs 58 58 58 58
31-40 31 31 31 89

41-50 7 7 7 96

51-60 3 3 3 99

> 60 1 1 1 100

Total 100 100 100

Age group

80
frequency

60
40
20
0
< 30 yrs 31-40 41-50 51-60 > 60
age

From the representation we can see that 58% of the respondent belong to the age
group of below 30 years, followed by 31% who belong to the age group between
31-40 years and the persons who belong to other age groups were small in
number.

Annual Income:

Rs. Frequency Percent Valid Cumulative

Percent
Perce
nt

< Rs.1lakh 17 17 17.3 17.3

Rs.1.01-3lakh 27 27 27.6 44.9

Rs.3.01-5lakh 23 23 23.5 68.4

>Rs.5lakh 31 31 31.6 100

Total 98 98 100

Missing 2 2
system
100 100
Total

Annual income

40
frequency

30
20
10
0
< Rs. 1lakh Rs. 1.01-3 Rs. 3.01-5 >Rs. 5 lakh
lakh lakh
annual income

From the above representation we can see that 31% of the respondents belong to a
group, which has an annual income of more than 5lakh, followed by 27% who
belong to the group of annual income between 1 - 3lakh and 23% who have an
annual income between 3 - 5lakh. Among the 100 respondents, 2 of them are
unwilling to express their annual income to us, which represents the missing
system in the chart presented above.

Hold life insurance policy:

Frequency Percent Valid Cumulative

Percent Percent

No 23 23 23 23

Yes 77 77 77 100

Total 100 100 100

 Hold life insurance policy

100

frequency
50

0
No Yes
hold life insurance policy

Among 50 respondents that were taken as a sample size, 37 of them had life
insurance policy that was either taken by him/her self or it was taken by their
parents on their name, while 13 out of them did not have any kind of life
insurance policy from any company.

Awareness about-Reliance Life:

Frequency Percent Valid Cumulative

Percent Percent

No 64 64 64 64

Yes 36 36 36 100

Total 100 100 100

Awareness-RIL

80
frequency

60
40
20
0
No Yes
awareness
 Awareness among the people about Reliance Life Insurance, the response was
very disappointing from the point of view of the company. Out of 50 respondents
not less than 32 respondents have the knowledge that Reliance has also come to
the life insurance sector by overtaking the Australia based life insurance company
AMP SANMAR, while the rest 18 of them were aware of it and many among this
18 cheered skeptics regarding the company.

IMPORTANT CRITERIA BEFORE TAKING LIFE

INSURANCE POLICY:

Now, let us see what criteria people consider most important before taking a life
insurance policy (the criteria for the study have been mentioned before). Here, the
most important criteria as perceived by the people are being rated as 8, (as there
are 8 criteria that have been suggested under the research study). Here the number
of respondents is only 38, because those people who do not have any life
insurance policy have been excluded from the purview of the study.

Premium:

Frequency Percent Valid Cumulative

Percent Percent

1 42 42 54.5 54.5

2 6 6 7.8 62.3

3 6 6 7.8 70.1

4 6 6 7.8 77.9

5 11 11 14.3 92.2

6 5 5 6.5 98.7

7 1 1 1.3 100

Total 77 77 100
Missing System 23 23

Total 100 100

Premium

50
40
30
20
10
0
1 2 3 4 5 6 7

Now if we consider one of the criteria we can see that 54.5% of the respondent
has rated it as the most important thing that they consider before taking any
insurance policy from any company, nobody has rated it as the least important
criteria. So, it can be clearly interpreted that the premium that the policyholder
has to pay to continue his/her policy plays a very important role before selecting
the terms and conditions of the policy and also the company from which the
policy is to be taken.

CHARGES:

Frequency Percent Valid Cumulative

Percent
Perc
ent

1 6 6.0 7.8 7.8

2 7 7.0 9.1 16.9

3 17 17.0 22.1 39.0

4 20 20.0 26.0 64.9

 5 12 12.0 15.6 80.5

6 9 9.0 11.7 92.2

7 3 3.0 3.9 96.1

8 3 3.0 3.9 100.0

Total 77 77.0 100.0

Missing 23 23.0
System
100 100.0
Total

Charges

25
20
15
Series1
10
5
0
1 2 3 4 5 6 7 8

Now, if we consider the charges the customer has to pay to the insurance
company like fund management charges, administration charges etc. most of the
people consider it as an important criteria which can dictate the terms before
deciding on whether to take the policy or not. But very few people (only 7.8% of
the total respondents), considers that it can be the most important criteria before
taking the decision on life insurance policy.
 POLICY TERM:

Frequency Percent Valid Cumulative

Percent Percent

1 17 17.0 22.4 22.4

2 9 9.0 11.8 34.2

3 8 8.0 10.5 44.7

4 17 17.0 22.4 67.1

5 14 14.0 18.4 85.5

6 5 5.0 6.6 92.1

7 2 2.0 2.6 94.7

8 4 4.0 5.3 100.0

Total 76 76.0 100.0

Missing System 24 24.0

Total 100 100

Policy term

20
15
10
5
0
1 2 3 4 5 6 7 8
The tenure of the policy i.e. the policy term depends on the policy holder but
sometimes the insurer can also influence the policy term by giving some
additional benefits on policy taken for a longer period of time or vice versa. In the
study that was conducted by us, we found out that nearly 22% of the respondents
think that policy term offered by the company is the most important thing that one
should consider before taking any life insurance policy while 5.3% of the
respondents think that it is the least important that one should consider before
taking any life insurance policy.

RIDER BENEFITS:

Frequency Percent Valid Cumulative

Percent Percent

1 14 140 18.2 18.2

2 5 50 6.5 24.7

3 13 13.0 16.9 41.6

4 12 12.0 15.6 57.1

5 15 15.0 19.5 76.6

6 12 12.0 15.6 92.2

7 3 3.0 3.9 96.1

8 3 3.0 3.9 100.0

Total 77 77.0 100.0

Missing System 23 23.0

 Total 100 100

Rider benefits

20
15
10
5
0
1 2 3 4 5 6 7 8

Rider benefits are the additional benefits that the insurer company provides to its
customers for attracting them. Things like accidental benefit, critical illness
benefit and permanent disablement benefit are provided as rider with original
policy with a pavement of some additional premium from the point of view of the
customers. According to the study nearly 18 % of the respondents think that it is
the most important criteria before selecting an insurance policy, while on the
other hand 4% of the respondent feels that it is the least important criteria.

BONUS AND INTEREST PAID:

Frequency Percent Valid Cumulative

Percent Percent

1 30 30.0 39.0 39.0

2 5 5.0 6.5 45.5

3 7 7.0 9.1 54.5

4 11 11.0 14.3 68.8

5 9 9.0 11.7 80.5

 6 13 13.0 16.9 97.4

7 1 1.0 1.3 98.7

8 1 1.0 1.3 100.0

Total 77 77.0 100.0

Missing System 23 23.0

Total 100 100.0

Bonus and Interest

40
30
20
10
0
1 2 3 4 5 6 7 8

Bonus and interest are paid by the company to the policy holder for the policies
which are with profit policy i.e. if a person takes profit policy, he/she also
becomes liable to get a certain percentage of the profit that the company makes in
a certain financial year. 39% of the respondent considers it as the most important
criteria before taking a life insurance policy.

SERVICES (PRE AND POST SALES):

Frequency Percent Valid Cumulative

Percent Percent

1 19 19.0 24.7 24.7

 2 4 4.0 5.2 29.9

3 10 10.0 13.0 42.9

4 6 6.0 7.8 50.6

5 15 15.0 19.5 70.1

6 12 12.0 15.6 85.7

7 5 5.0 6.5 92.2

8 6 6.0 7.8 100.0

Total 77 77.0 100.0

Missing System 23 23.0

Total 100 100.0

Services

20
15
10
5
0
1 2 3 4 5 6 7 8

While conducting the study we have met many respondent who thinks that many
of the companies provide them satisfactory services only till the policy is being
taken by the respondent, but after that if there is any requirement from the point of
view of the customer, the company does not pay the same attention to them as
they had paid earlier. So, nearly 25% of the respondent’s feel that services (both
pre and post sales) provided by the company is the most important thing to
consider before taking any kind of life insurance policy.

ACCESSIBILITY:

Frequency Percent Valid Cumulative

Percent Percent

1 9 9.0 11.7 11.7

2 6 6.0 7.8 19.5

3 10 10.0 13.0 32.5

4 8 8.0 10.4 42.9

5 13 13.0 16.9 59.7

6 17 17.0 22.1 81.8

7 7 7.0 9.1 90.9

8 7 7.0 9.1 100.0

Total 77 77.0 100.0

Missing System 23 23.0

Total 100 100.0

 Accessibility

20
15
10
5
0
1 2 3 4 5 6 7 8

The term accessibility here refers to the easy availability of the facilities that the
company provides to its customers. The facilities can be regarding information
about the company and the various products offered by them, which can be made
available through internet. According to the study nearly 12% of the respondents
think that it is the most important thing, while 9% of them feel that it is the least
important thing that one may consider before taking any life insurance policy.

BRAND IMAGE:

Frequency Percent Valid Cumulative

Percent Percent

1 25 25.0 32.5 32.5

2 10 10.0 13.0 45.5

3 5 5.0 6.5 51.9

4 9 9.0 11.7 63.6

5 2 2.0 2.6 66.2

6 9 9.0 11.7 77.9

7 10 10.0 13.0 90.9

 8 7 7.0 9.1 100.0

Total 77 77.0 100.0

Missing System 23 23.0

Total 100 100.0

Brand image

30
25
20
15
10
5
0
1 2 3 4 5 6 7 8

Brand image plays a very important role in influencing the decision of a

prospective customer while taking the final decision. From the study it has been
found out that nearly 33% of the people feel that it is the most important thing that
influences one’s decision regarding taking of life insurance policy, while for 9%
of the people it does not provide any significant importance in their decision
making.

So, to conclude from the above representations, it can be said that the premium
that the policy holder has to pay for taking any life insurance policy, plays the
most important role in influencing their decision, followed by the factors like
bonus and interest paid by the company, company image and so on. So, those
companies who are charging the least premium as well as providing all other
complementary services, has a better chance of succeeding in the life insurance
sector in comparison to other companies who are also operating in the same field.
 Now to further analyze the perception of the respondents about what they think as
the most important criteria before taking an insurance policy. I have taken two
independent parameters, namely:

a) Age of the people

b) Annual income of the people

After taking these two independent parameters, the analysis is being made to see
which age group people think what criteria is important or what is the difference
in perception among the people who have annual income which are significantly
different from each other. The number of respondents taken here is 77(76 in case
of annual income, as one of the respondents did not disclose his income) only as
those people who are not having any life insurance policy has been excluded from
the purview of the study.

AGE OF PEOPLE-CRITERIA BEFORE TAKING LIFE

INSURANCE POLICY:

For conducting the study the ages of respondents are divided into five categories,
those are as follows:

i. Less than 30 years.

ii. Between 31-40 years.

iii. Between 41-50 years.

iv. Between 50-60 years.

v. More than 60 years.

 Now, lets us observe the different perception of people belonging to different age
groups about what they consider is the most important criteria, which affect their
decision before taking a life insurance policy.

Age Group – Premium:

Age Total 1 2 3 4 5 6 7 8
group

<30 42 28 3 2 3 5 1 - -
yrs
(100%) (66.7%) (7.1%) (4.8%) (7.1%) (11.9%) (2.4%)

31-40 26 13 2 3 2 2 3 1 -
yrs
(100%) (50%) (7.7%) (11.5%) (7.7%) (7.7%) (11.5%) (3.8%)

41-50 5 - 1 1 1 1 1 - -
yrs
(100%) (20%) (20%) (20%) (20%) (20%)

51-60 3 1 - - - 2 - - -
yrs
(100%) (33.3%) (66.6%)

>60 1 - - - - 1 - - -
yrs
(100%) (100%)

Total 77 42 6 6 6 11 5 1 -

(100%) (54.5%) (7.8%) (7.8%) (7.8%) (14.3%) (6.5%) (1.3%)

Now, from above representation we can see that nearly 67% of the people who
belong to the age group of less than 30 consider premium as the most important
criteria in comparison to only 50% of the people who belong to an age group of
30-40. So people who have started their professional life consider more about the
 money that have to spend on the insurance policy in comparison to the people
who are working for a relatively longer period of time. Again, if we consider
those people who have come to end of their working life, we can see that those
people also think that the expense regarding the premium to be paid is the most
important criteria for them.

Age Group - Charges:

Age Total 1 2 3 4 5 6 7
group

<30 42 5 4 9 10 6 5 2
yrs
(100%) (11.9%) (9.5%) (21.4%) (23.8%) (14.3%) (11.9%) (4.8%)

31-40 26 1 2 6 7 5 3 1
yrs
(100%) (3.8%) (7.7%) (23.1%) (26.9%) (19.2%) (11.5%) (3.8%)

41-50 5 - - 1 3 - - -
yrs
(100%) (20%) (60%)

51-60 3 - 1 1 - 1 - -
yrs
(100%) (33.3%) (33.3%) (33.3%)

>60 1 - - - - 1 - -
yrs
(100%) (100%)

Total 77 6 7 17 20 12 9 3

(100%) (7.8%) (9.1%) (22.1%) (26%) (15.6%) (11.7%) (3.9%)

Now, we consider the different charges (like fund management charges,

administration charges etc.) that the companies take from their policy holders, we
 see that people who are having age less than 30 years and those who belong to the
group of 30-40 years think in the same way in this matter. They consider these
charges important, but not as much as they consider the cost relating to the
premium they have to pay to the company.

Age Group- Policy Term:

Age Total 1 2 3 4 5 6 7 8
group

<30 42 8 5 3 12 9 1 1 3
yrs
(100%) (19%) (11.9%) (7.1%) (28.6%) (21.4%) (2.4%) (2.4%) (7.1%)

31-40 26 9 3 4 3 1 1 1 1
yrs
(100%) (36%) (12%) (16%) (12%) (4%) (4%) (4%) (4%)

41-50 5 - - 2 - 2 1 - -
yrs
(100%) (40%) (40%) (20%)

51-60 3 - 1 - 1 - 1 - -
yrs
(100%) (33.3%) (33.3%) (33.3%)

>60 1 - - - - - 1 - -
yrs
(100%) (100%)

Total 77 17 9 8 17 14 5 2 4

(100%) (22.4%) (11.8%) (10.5%) (22.4%) (18.4%) (6.6%) (2.6%) (5.3%)

The policy term depends on the wishes of the policy holder, so here we see that
only 19% of the people whose age is below 30 years, think this is an important
criteria, but people who are little bit more experienced know that insurer
 companies sometime provide extra benefits for longer policies in comparison to
policies which have a shorter span of life, that’s why nearly 36% of people
belonging to the age group of 31-40 years think that it is a very important criteria
which affects the decision regarding insurance.

Age Group- Rider Benefits:

Age Total 1 2 3 4 5 6 7 8
group

<30 42 7 3 11 8 5 7 - 1
yrs
(100%) (16.7%) (7.1%) (26.2%) (19%) (11.9%) (16.7%) (2.4%)

31-40 26 5 2 2 3 9 2 2 1
yrs
(100%) (19.2%) (7.7%) (7.7%) (11.5%) (34.6%) (7.7%) (7.7%) (3.8%)

41-50 5 1 - - - 1 2 - 1
yrs
(100%) (20%) (20%) (40%) (20%)

51-60 3 1 - - - - 1 1 -
yrs
(100%) (33.3%) (33.3%) (33.3%)

>60 1 - - - 1 - - - -
yrs
 (100%) (100%)

Total 77 14 5 13 12 15 12 3 3

(100%) (18.2%) (6.5%) (16.9%) (15.6%) (19.5%) (15.6%) (3.9%) (3.9%)

Out of 14 respondents who think that rider benefit is the most important criteria in
taking decision regarding life insurance policy, 7 belong to the age group less than
30 and 5 belong to the age group of 30-40. So, most of them think that rider
benefits are not so important and it does not influence their decision in a broad
way.

Age Group- Bonus and interest paid:

Age Total 1 2 3 4 5 6 7 8
group

<30 42 17 2 4 4 8 7 - -
yrs
(100%) (40.5%) (4.8%) (9.5%) (9.5 %) (19%) (16.7%)

31-40 26 10 3 2 5 1 3 1 1
yrs
(100%) (38.5%) (11.5%) (7.7%) (19.2%) (3.8%) (11.5%) (3.8%) (3.8%
)

41-50 5 2 - 1 - - 2 - -
yrs
(100%) (40%) (20%) (40%)

51-60 3 1 1 - 1 - 1 - -
yrs
(100%) (33.3%) (33.3%) (33.3%) (33.3%)
 >60 1 - - - 1 - - - -
yrs
(100%) (100%)

Total 77 30 5 7 11 9 13 1 1

(100%) (39%) (6.5%) (9.1%) (14.3%) (11.7%) (16.9%) (1.3%) (1.3%

)

In this scenario we can see that the thinking of the people belonging to different
age group is quiet similar, as nearly 40% of the respondents belonging to three
different age groups, namely: <30, 30-40 and 40-50, think that it is the most
important criteria which influences the decision regarding life insurance policy
and only 1.3% of the total respondent think that it is the least important criteria
among all.

Age Group- Services (both pre and post sales):

Age Total 1 2 3 4 5 6 7 8
group

<30 42 10 3 4 4 5 9 4 3
yrs
(100%) (23.8%) (7.1%) (9.5%) (9.5 %) (11.9%) (21.4%) (9.5%) (7.1%)

31-40 26 8 - 4 - 8 3 1 2
yrs
(100%) (30.8%) (15.4%) (30.8%) (11.5%) (3.8%) (7.7%)

41-50 5 1 - - 2 2 - - -
yrs
(100%) (20%) (40%) (40%)

51-60 3 - 1 1 - - - - 1
yrs
(100%) (33.3%) (33.3%) (33.3%)
>60 1 - - 1 - - - - -
yrs
(100%) (100%)

Total 77 19 4 10 6 15 12 5 6

(100%) (24.7%) (5.2%) (13%) (7.8%) (19.5%) (15.6%) (6.5%) (7.8%)

In this case we see that the people who belong to the age group of less the 30
years and may be taking life insurance policy for the first time (on their own), do
not give much importance on services in comparison to the people belonging to
the age group of 30-40,who put emphasize on the services provided by the
company, the percentage is almost 31.

Age Group- Accessibility:

Age Total 1 2 3 4 5 6 7 8
group

<30 42 7 2 6 6 7 4 5 5
yrs
(100%) (16.7%) (4.8%) (14.3%) 14.3% 16.7% (9.5%) (11.9%) (11.9%)

31-40 26 2 3 1 2 4 11 2 1
yrs
(100%) (7.7%) (11.5%) (3.8%) (7.7%) 15.4 (42.3%) 7.7 (3.8%)

41-50 5 - 1 1 - 2 1 - -
yrs
(100%) (20%) (20%) (40%) (20%)

51-60 3 - - 1 - - 1 - 1
yrs
 (100%) (33.3%) (33.3%) (33.3%)

>60 1 - - 1 - - - - -
yrs
(100%) (100%)

Total 77 9 6 10 8 13 17 7 7

(100%) (11.7%) (7.8%) (13%) (10.4%) (16.9%) (22.1%) (9.1%) (9.1%)

Here, we can see that not much importance is given to the accessibility criteria by
respondents of any group. Most of them consider accessibility as criteria, which
will not affect the decision of a prospective customer, which he/she decides to
take as a life insurance policy.

Age Group-Company Image:

 Age Total 1 2 3 4 5 6 7 8
group

<30 42 10 6 3 7 1 3 6 6
yrs
(100%) (23.8%) (14.3%) (7.1%) (16.7%) (2.4%) (7.1%) (14.3%) (14.3%)

31-40 26 12 3 1 1 1 3 4 1
yrs
(100%) (46.2%) (11.5%) (3.8%) (3.8%) (3.8%) (1.5%) (15.4%) (3.8%)

41-50 5 2 - - - - 3 - -
yrs
(100%) (40%) (60%)

51-60 3 - 1 1 1 - - - -
yrs
(100%) (33.3%) (33.3%) (33.3%)

>60 1 1 - - - - - - -
yrs
(100%) (100%)

Total 77 25 10 5 9 2 9 10 7

(100%) (32.5%) (13%) (6.5%) (11.7%) (2.6%) (11.7%) (13%) (7.1%)

In the case of company image also, we see a significant difference between the
opinions of respondents who belong to different age groups. Only 24% of people
belonging to the age group of less than 30years think that it is very important and
almost 14% think that it is not at all important. On the other hand, nearly 46% of
the people belonging to the age group of 30-40 years think it as an important
criterion and 4% think that this criterion is not at all important. People belonging
to the age group of more than 60 years also consider company’s image as the
most important criteria.
 So, to conclude it can be said that the thinking of people belonging to different
age group are quiet different in most of the aspect when it comes to decide the
important criteria regarding life insurance, it may be due to the fact that they have
started their carrier so they worry about the money they have to spend on
insurance or it may be related to the fact that for many of the new comers it is the
first time that they are taking a life insurance policy on their own, so they do not
have experience. When it comes to life insurance in comparison to others who are
having their own policy or those who are working for a longer span of time and
are quite settled in their respective area of operation.

ANNUAL INCOME OF PEOPLE- CRITERIA BEFORE

TAKING LIFE INSURANCE POLICY:

For conducting the study the annual income of respondent is divided into four
categories, those are as follows:

i. Less than Rs.1lakh

ii. Between Rs.1.01-3lakh

iii. Between Rs.3.01-5lakh

iv. More than Rs.5lakh

Now, let us see the perception of people about the important criteria’s before
taking a life insurance policy who belong to different income groups.

Annual Income - Premium:

Annual Total 1 2 3 4 5 6 7 8
income
(Rs.)

< 14 12 - 1 - 1 - - -
1lakh
(100%) (85.7%) (7.1%) (7.1%)

1.01- 18 8 3 3 1 3 - - -
3lakh
(100%) (44.4%) (16.7%) (16.7%) (5.6%) (16.7%)

3.01- 16 7 1 - 2 4 2 - -
5lakh
(100%) (43.8%) (6.3%) (12.5%) (25%) (12.5%)

< 5lakh 28 14 2 2 3 3 3 1 -

(100%) (50%) (7.1%) (7.1%) (10.7%) (10.7%) (10.7%) (3.6%)

Total 76 41 6 6 6 11 5 1 -

(100%) (53.9%) (7.9%) (7.9%) (7.9%) (14.5%) (6.6%) (1.3%)

In this scenario a clear difference in opinion can be seen, people who have annual
income of less than 1lakh think premium to be paid in a policy is the most
important criteria (nearly 86%), but as the income increases less importance is
given on the premium decreases. So, people having less income put more
emphasize on the money to be spent in comparison to people who have relatively
higher income.

Annual Income - Charges:

Annual Total 1 2 3 4 5 6
income
(Rs.)

< 14 2 2 1 3 3 2
1lakh
(100%) (14.3%) (14.3%) (7.1%) (21.4% (21.4%) (14.3%)

1.01- 18 - 1 6 6 3 2
3lakh
(100%) (5.6%) (33.3%) (33.3%) (16.7%) (11.1%)

3.01- 16 1 2 4 3 1 2
5lakh
(100%) (6.3%) (12.5%) (25%) (18.8%) (6.3%) (12.5%)

< 5lakh 28 3 1 6 8 5 3

(100%) (10.7%) (3.6%) (21.4%) (28.6%) (17.9%) (10.7%)

Total 76 6 6 17 20 12 9

(100%) (7.9%) (7.9%) (22.4%) (26.3%) (15.8%) (11.8%)

As the charges taken by the companies is very less as compared to the premium
they take, so here we can see that nearly 14%of the people who are having annual
income of less than 1lakh for them this is the most important criteria, while on the
other hand the people who are having income between 1.01-3lakh, don’t think this
as the most important criteria. So, here also difference in income generates
difference in income.

Annual Income - Policy Term:

Annual Total 1 2 3 4 5 6 7
income
(Rs.)

< 14 4 - - 4 2 1 -
1lakh
(100%) (28.6%) (28.6%) (14.3%) (7.1%)

1.01- 18 2 1 3 6 6 - -
3lakh
(100%) (11.1%) (5.6%) (16.7%) (33.3%) (33.3%)

3.01- 16 5 1 1 4 3 1 -
5lakh
(100%) (31.3%) (6.3%) (6.3%) (25%) (18.8%) (6.3%)

< 5lakh 28 6 6 4 3 3 3 2

(100%) (22.2%) (22.2%) (14.8%) (11.1%) (11.1%) (11.1%) (7.4%)

Total 76 17 8 8 17 14 5 2

(100%) (22.7%) (10.7%) (10.7%) (22.7%) (18.7%) (6.7%) (2.7%)

In case of policy term we can see that there is no such difference in opinion
among the people who belongs to different income groups. As 22.7% of the total
respondents think it as the most important criteria and on the other hand 22.7% of
the respondents think it is moderately important. The reason for the same can be
that, people who are having less income now may have a feeling that as the time
goes on their income will increase, so they do not put much emphasis on the
policy term as compared to the other criteria’s.

Annual Income - Rider Benefits:

Annual Total 1 2 3 4 5 6 7
income
(Rs.)

< 14 2 1 5 2 1 2 -
1lakh
(100%) (14.3%) (7.1%) (35.7%) (14.3%) (7.1%) (14.3%)

1.01- 18 4 1 3 1 6 3 -
3lakh
(100%) (22.2%) (5.6%) (16.7%) (5.6%) (33.3%) (16.7%)

3.01- 16 4 2 1 3 1 4 -
5lakh
(100%) (25%) (12.5%) (6.3%) (18.8%) (6.3%) (25%)

< 5lakh 28 4 1 4 5 7 3 3

(100%) (14.3%) (3.6%) (14.3%) (17.9%) (25%) (10.7%) (10.7%)

Total 76 14 5 13 11 15 12 3

(100%) (18.4%) (6.6%) (17.1%) (14.5%) (19.7%) (15.8%) (3.9%)

Here, we can see that people who are having relatively greater income think that
rider benefits are very important criteria in comparison to people who are having
less income. The reason for the same may be as the income of a person increase
he/she will be liable to get more rider benefits in comparison to people who are
having lesser income, so they put less importance on rider benefits. But, one thing
is clear that very few people (3.9% of the total respondents) from all income class
think that rider benefits do not carry any importance.

Annual Income - Bonus and Interest Paid:

Annual Total 1 2 3 4 5 6 7
income
(Rs.)

< 14 5 - 1 2 1 5 -
1lakh
(100%) (35.7%) (7.1%) (14.3%) (7.1%) (35.7%)

1.01- 18 8 2 2 2 3 1 -
3lakh
(100%) (44.4%) (11.1%) (11.1%) (11.1%) (16.7%) (5.6%)

3.01- 16 8 - 1 2 2 2 -
5lakh
(100%) (50%) (6.3%) (12.5%) (12.5%) (12.5%)

< 5lakh 28 9 2 3 5 3 5 1

(100%) (32.1%) (7.1%) (10.7%) (17.9%) (10.7%) (17.9%) (3.6%)

Total 76 30 4 7 11 9 13 1

(100%) (39.5%) (5.3%) (9.2%) (4.5%) (11.8%) (17.1%) (1.3%)

In case of bonus and interest paid by the insurer company, we can see that the
people who belong to the income group of 1.01 - 3lakh and 3.01 - 5lakh puts more
emphasis on this, in comparison to the people who have income less than 1lakh or
those who are having income of more than 5lakh. The reason for the same may be
due to the fact that people who belong to the range of 1 - 5lakh as annual income
have a tendency to earn more than what they are earning and that’s why they
think it as most important criteria. On the other hand people who have income
less than 1lakh does not have such income to invest in the company (more
emphasis is given by them on the safety of the money) and those who are having
income of more than 5lakh does not crave for more money and that is why they
don’t put much importance on bonus and interest paid by the company.
 Annual Income - Services (both pre and post sales):

Annual Total 1 2 3 4 5 6 7 8
income
(Rs.)

< 14 2 1 2 2 2 1 2 2
1lakh
(100%) (14.3%) (7.1%) (14.3%) (14.3%) (14.3%) (7.1%) (14.3%) (14.3%)

1.01- 18 5 - 2 1 4 6 - -
3lakh
(100%) (27.8%) (11.1%) (5.6%) (22.2%) (33.3%)

3.01- 16 4 - 5 - 3 4 - -
5lakh
(100%) (25%) (31.3%) (18.8%) (25%)

< 5lakh 28 7 3 1 3 6 1 3 4

(100%) (25%) (10.7%) (3.6%) (10.7%) (21.4%) (3.6%) (10.7%) (14.3%)

Total 76 18 4 10 6 15 12 5 6

(100%) (23.7%) (5.3%) (13.2%) (7.9%) (19.7%) (15.8%) (6.6%) (7.9%)

Now if we consider the services provided by the company we can see that the
people who are having less income put less emphasis on this criteria (14.3%)and
on the other hand people having income of more than 1lakh put more emphasis on
this criteria (on an average 26%), the reason may be due to the fact people who
are earning more have more job responsibilities, so they depend on the services
provided by the company personnel when compared to others.

Annual Income – Accessibility:

Annual Total 1 2 3 4 5 6 7
income
(Rs.)

< 1lakh 14 3 - 2 2 2 1 1

(100%) (21.4%) (14.3%) (14.3%) (14.3%) (7.1%) (7.1%)

1.01- 18 3 - 1 4 3 3 1
3lakh
(100%) (16.7%) (5.6%) (22.2%) (16.7%) (16.7%) (5.6%)

3.01- 16 1 2 4 1 3 - 4
5lakh
(100%) (6.3%) (12.5%) (25%) (6.3%) (18.8%) (25%)

< 5lakh 28 2 4 1 6 9 3 4

(100%) (7.1%) (14.3%) (3.6%) (21.4%) (32.1%) (10.7%) (14.3%)

Total 76 9 6 8 13 17 7 10

(100%) (11.8%) (7.9%) (10.5%) (17.1%) (22.4%) (9.2%) (13.2%)

If we consider the accessibility as one of the criteria for taking insurance policy,
we can see that as the income of a person increases, they put less importance on
the accessibility criteria (21.4% of people having income less than 1 lakh, 16.7%
for 1.01 - 3lakh, 6.3% for 3.01 - 5lakh and 7.1% for more than 5lakh). But the
same trend cannot be seen when they consider it as the least important criteria in
taking a decision regarding life insurance. So, most of the people think it as a
criteria which is not so important while taking their decision (22.4% of the total
respondent).

Annual Income-Brand Image:

Annual Total 1 2 3 4 5 6 7 8
income
(Rs.)

< 14 5 2 2 2 - 1 1 1
1lakh
(100%) (35.7%) (14.3%) (14.3%) (14.3%) (7.1%) (7.1%) (7.1%)

1.01- 18 5 3 1 1 1 4 1 2
3lakh
(100%) (27.8%) (16.7%) (5.6%) (5.6%) (5.6%) (22.2%) (5.6%) (11.1%)

3.01- 16 7 2 - - - 2 4 1
5lakh
(100%) (43.8%) (12.5%) (12.5%) (25%) (6.3%)

< 5lakh 28 8 3 2 5 1 2 4 3

(100%) (28.6%) (10.7%) (7.1%) (17.9%) (3.6%) (7.1%) (14.3%) (10.7%)

Total 76 25 10 5 8 2 9 10 7

(100%) (32.9%) (13.2%) (6.6%) (10.5%) (2.6%) (11.8%) (13.2%) (9.2%)

Here, also a volatile trend can be seen in which people who are having income
less than 1lakh and people who are having income of 3.01 - 5lakh are putting
more emphasis on company image in comparison to others. The reason for the
same may be people who have less income want to see their money in a secured
hand, so they consider the company profile before taking the life insurance policy.

So, to conclude it can be said that in most of the aspect the opinion of the people
belonging to different income groups differ from each other. The reason for the
same can be the importance that they give on the sum they invest in taking a life
insurance policy i.e. a person who is having income of less than 1lakh put more
emphasis on a sum of Rs.1,00,000 in comparison to person who is having an
 income of more than 5lakh. So, the difference in income shows difference in
opinion also.

CONCLUSION:

The conclusions that can be drawn from the survey are as follows:

a) Insurance is the most preferred investment alternative which is available to

people followed by alternatives such as Mutual Fund, PPF, Real Estate etc.

b) Only 36% of the total respondents are aware of the fact that Reliance has
recently come into the life insurance sector. Those people who are aware of
the fact that Reliance has come into the life insurance sector are willing to
invest in Reliance because of the brand name and the growth potential that
Reliance has and the remaining were not aware of the fact that the company
has come into the existence and the few among these are even skeptical about
the company’s growth and its potential.

c) According to the survey, premium to be paid for taking life insurance policy is
the most important criteria which people consider before taking a life
insurance policy followed by factors like bonus and interest paid by the
company, brand image etc.

d) People who belong to different age groups have different perception regarding
the most important criteria before taking the decision on a life insurance
policy.

e) People who belong to different income groups also have different perception
regarding the important criteria’s concerned with the life insurance.
 Chapter 7

RESEARCH PROBLEM

Here the problem centers on the ‘Comparative analysis between

the Reliance Life Insurance Products with that of other private
players and try to suggest in what aspect Reliance is lagging
behind their counterparts’

RESEARCH METHODOLOGY:

To carry out the study I mainly depended on the secondary data that was available
through company websites and broachers published by companies, which
contained all the information relating to the products that are offered by them.

COMPANIES TAKEN FOR ANALYSIS:

The companies other than Reliance are chosen on the basis of the perception of
the people about the companies in which they would like to invest as well as on
the basis of the performance of the companies in the private life insurance
segment. The companies taken for analysis are as follows:

a) Bajaj Allianz

b) ICICI Prudential

PRODUCTS CHOSEN FOR ANALYSIS:

The products that were given for the comparative analysis are as follows:

a) Pension Plan (with ULIP facility)

b) Child Plan
BRIEF INTRODUCTION OF THE COMPANIES
CHOSEN FOR ANALYSIS:

a) Bajaj Allianz

b) ICICI Prudential

BAJAJ ALLIANZ:

Bajaj Allianz Life Insurance Company was incorporated on 12th march 2001; it is
a joint venture between two leading conglomerates- Allianz AG, one of the
world’s largest insurance companies, and Bajaj Auto, one of the biggest two and
three wheeler manufacturers in the world.

Some related information about Bajaj Allianz:

i. No.1 private life insurer in the financial year 2006-07 leading by

Rs.78 crore.

ii. No.1 private life insurer in the retail business, leading by Rs.339
crore.

iii. Whooping growth of 216% in the financial year 2005-06.

iv. Have more than 550 offices throughout the country.

ICICI PRUDENTIAL:

ICICI Prudential is a joint venture between ICICI bank, a premier financial

powerhouse and prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI was amongst the first private
insurance company who started their operation in December 2000 after receiving
the approval from Insurance Regulatory and Development Authority (IRDA).

Some related information about Bajaj Allianz:

 i. Total equity base stands at Rs.11.85 billion.

ii. ICICI bank holds 74% and Prudential pls holds 26%.

iii. It has a network of about 56,000 advisors through out the country.

Comparative analysis between the Reliance Life

Insurance Products and products offered by other market
players:

Now, let us start the comparative analysis between the products of Reliance with
that of the products offered by some of its main competitors and find out areas in
which reliance is lagging behind from its competitors as well as find out the
features or benefits in which reliance holds an advantage over its competitors.

CHILD PLAN: Before starting the analysis, one thing that should be
remembered is although most of the insurance companies offer a normal child
plan (including Reliance), but some of the companies like ICICI and Birla Sunlife
offer the child plan with the option of ULIP in it. So, that makes the analysis a
little bit difficult as the facilities provided by the companies differ significantly
from each other.

Reliance Child ICICI Smart Kid Bajaj Allianz Child

(ULIP) Gain
Plan

Age: Age: Age:

Regular: Regular: Regular:

Min age at entry: 20 Min age at entry: 20 Min age at entry: 20

Max age at entry: 60 Max age at entry: 55 Max age at entry: 50

Life Insurance Cover: Life Insurance Cover: Life Insurance Cover:

Min: 25,000 Min: 1,00,000 Min: 1,00,000

Max: No limit Max: No limit Max: No limit

Riders: Riders: Riders:

a) Accidental death: a) Income benefit: If, a) Accidental death: A

due to any reason one monthly income
Min: Rs.25,000 cannot pay the benefit of 1% of the
premium, this rider sum assured subject to
Max: Rs.50,00,000 will help in the a max of
continuance of the Rs.10,000p.m will be
b) Permanent disability: policy. paid.
1/10th of the sum
assured will be paid at b) Accidental death: b) Permanent disability:
the end of each year for All the future
the next 10 years and premiums to be paid
future premiums subject Min: Rs.1,00,000
will be waived off.
to a max of 40,000 will
Max: Rs.50,00,000
be waived.
c) Permanent disability:
c) Critical illness:
This rider will wave
Min: Rs.1,00,000 off all the future
premium to be paid
Max: Rs.10,00,000 under the policy.

Policy term: Policy term: Policy term:

Min: 5 yrs Min: 10 yrs Min: 5 yrs

Max: 20 yrs Max: 25 yrs Max: 18 yrs

Maturity age: Maturity age: Maturity age:

Min: 25 Min: 30 Min: 25

Max: 75 Max: 70 Max: 68

Minimum premium Minimum premium Minimum premium

payable: payable: payable:
Regular: Regular: Regular:

Yearly: Rs.2,000 Yearly: Rs.18,000 Yearly: Rs.5,000

Half-yearly: Rs.1,500 Half-yearly: Rs.9,000 Half-yearly: Rs.3,000

Quarterly: Rs.750 Quarterly: Rs.4,500 Quarterly: Rs.1,500

Monthly: Rs.300 (under Monthly: Rs.1,500 Monthly: Rs.700 (under

the salary savings (under the salary savings the salary savings
scheme) scheme) scheme)

Surrender value: Surrender value: Surrender value:

a) First 3 yrs: Nil a) Before 1st yrs a) First 3 yrs: Nil

premium paid: Nil
b) 4th year onwards: 30% b) 4th yr onwards: 25%
of the total premium b) After 1st yrs premium of the total premium
paid subsequent to the paid: 25% of the value paid subsequent to the
1st year (excluding of investment. 1st year (excluding
premium paid for extra extra premium paid
benefits and premium c) After 2nd yrs premium for additional
for additional benefit) paid: 40% of the value benefits).
of investment.

d) After 3rd yrs premium

paid: 60% of the value
of investment.

e) After 4th yrs premium

paid: 100% of the
value of investment.

Investment options: Not Investment options: Investment options: Not

available. a) Maximiser (growth): available.
Invested primarily in
equities and equity
related securities.

b) Protector (income):
Steady returns with
moderate risk.

c) Balancer (balanced):
Balance of growth and
steady returns. Invest
 in equity and fixed
income securities.

d) Preserver: Capital
protection by
investing in very low
risk securities.

Loan facility: It is Loan facility: Loan is Loan facility: Loan

available up to 90% of the available on this policy. facility is not available
surrender value and with this plan.
simple bonus is also
available.

Partial withdrawal option: Partial withdrawal Partial withdrawal

Not available option: Available only option: Not available.
after 5yrs subject to
keeping of a min balance
of Rs.10,000 across all
the funds.

High sum assured: High sum assured: High sum assured:

Rebate: Rebate: Not available. Rebate: Not available.

a) Rs.1,00,000-2,49,999
Rs.1/1000th sum
assured.

b) Rs.2,50,000-4,99,999
Rs.2/1000 sum assured.

c) Rs.5,00,000-9,99,999
Rs.3/1000th sum
assured.

d) Rs.10,00,000 and
above Rs.4/1000th
sum assured.

Benefits: Benefits: Benefits:

a) Death benefit: Sum a) Death benefit: Sum a) Death benefit:
assured at the time of assured chosen is paid
death and the policy immediately, all the i)Child:
does not lapse. So, all future premiums are Age< 7: Premium paid
the facilities of the waived off and the will be refunded
policy and all the future policy benefits without interest and
premiums to be paid are continue till the end of policy will be
waived off. the policy term. terminated.

b) Survival benefit: 25% b) Survival benefit: The Age between 7-18:

of the sum assured will
be available to the
policy holder on the last
four policy
anniversaries. If, the
child (nominee) dies it
does not affect the
policy terms, the policy
will continue as it was.
total values of Sum assured with
investments in accrued bonus will be
different funds are paid paid and the policy
at the end of the policy will terminate.
term.
Age between 18-24:
Outstanding payouts
will be paid as one
lump sum and the
policy will terminate.

ii) Policy holder: Sum

assured will be paid
and all future
premiums will be
waived off and also
the policy will
continue.

b) Survival benefit: Sum

assured will be paid at
maturity.

Grace period: The grace
period allowed by the
company is 30 days from
the due date of paying the
premium.
15 days in case of
monthly payments.
Grace period: The grace Grace period: 30 days
period available is 30 grace period is available
days from the due date of from the date of paying
paying the premium. the premium.15 days in
15 days in case of case of monthly
monthly payments payments

Revival of policy: Revival Revival of policy: Revival of policy:

of policy is allowed at any Revival of policy is Revival of policy is
date before the date of allowed by the company. available subject to
maturity for full benefits payment of due
 at terms and conditions premiums with some
specified by the company. extra charges.

Tax benefit: Premiums Tax benefit: Tax benefit Tax benefit: Tax benefit
paid are eligible for tax available under sec 80C available under sec 80C
benefits under sec 80C and 10 (10D), as per and 10 (10D), as per
(up to Rs.1,00,000) and income tax act, 1961. income tax act, 1961
sec 80D (up to Rs.10,000-
15,000 for senior citizens)
of the income tax act,
1961. Maturity and death
benefit are tax free under
sec 10 (10D) of the
income tax act, 1961.

Lock in period: 15 days of Lock in period: 15 days Lock in period: Within

lock in period is given to
the policyholder to cancel
the policy. The premium
paid will be refunded
subject to deduction of a
minimal charge for the
expenses incurred by the
company towards the
policy.
lock in period is 15 days of the issue of
provided by the company the policy, the
under this policy. policyholder has the
option to cancel the
policy. Premium will be
refunded subject to
deduction of charge
towards risk premium
and expenses incurred for
medical examinations.

Areas in which Reliance holds an edge over competitors:

i) It is the only insurance company, which provides the critical illness rider with
the child plan.

ii) It is the only insurance company, which provides a High Sum Assured Rebate.

iii) If the child (nominee) dies, the insurance policy does not end, it continues
providing all the benefits that are promised to be provided.
ANNUITY / PENSION PLAN:

This is the plan, which gives the benefit to the policy holders after their
retirement. So, this is a plan which helps to secure the future of elderly people at
the time of their need.

Reliance Golden ICICI Life Time Bajaj Unit Gain

Year Plan: And Link Pension Easy Pension Plan:
Plan:

Age: Age: Age:

Regular and singular: Regular premium: Regular premium:

a) Min age at entry: 18 a) Min age at entry: 18 a) Min age at entry: 18

Max age at entry: 65 Max age at entry: 60 Max age at entry: 65

b) Min vesting age: 45 Single premium: b) Min vesting age: 45

Max vesting age: 70 a) Min age at entry: 18 Max vesting age: 70

Max age at entry: 72

b) Min vesting age: 45

Max vesting age: 75

Life Insurance Cover Life Insurance Cover Life Insurance Cover

(For both regular and (For both regular and (For both regular and
single premium): single premium):In case single premium): The
of death higher of the value of units
Min cover: Rs.1,00,000 sum assured or the value accumulated in the
of the units accumulated deferment period will be
Max cover: No limit will be paid. paid.
Riders: Riders: Riders:

a) Accidental death: a) Accidental death: Not available.

Nominee will get twice
Min: Rs.1,00,000 the sum assured under
this rider (sum assured
Max: Rs.50,00,000 + accident rider).
b) Permanent disability: b) Permanent disability:
1/10th of the sum 1/10th of the sum
assured will be paid at assured will be paid at
the end of each year for the end of each year
the next 10 years. for the next 10 years.

Annuity options: Annuity options: Annuity options:

a) Life annuity: Annuity a) Life annuity: Annuity a) Annuity for life:

is paid till the death of is paid till the death of Annuity is paid till the
the policy holder. the policy holder. death of the policy
holder.
b) Life annuity with b) Life annuity with
return of purchase return of purchase b) Annuity for 5,15 or
price: Here the price: Here the 20 years: Certain
purchase price of the purchase price of the payout.
policy is returned to the policy is returned to
nominee in the case of the nominee in the case c) Annuity for life with
death of policy holder. of death of policy return of capital.
holder.
c) Annuity guaranteed: d) Annuity for life with
Annuity is chosen for 5 c) Annuity guaranteed: joint life: Last
or 10 or 15 yrs i.e. even Annuity is chosen for 5 survivor option.
if both the life die or 10 or 15 yrs i.e.
annuity will be paid to even if both the life die
their heirs for minimum annuity will be paid to
period chosen and if their heirs for
does not die annuity minimum period
continues as long as chosen and if does not
annuitant is alive. die annuity continues
as long as annuitant is
alive.

d) Joint life, last survivor

 with return of purchase
price: Here if the
annuitant dies annuity
is paid to his wife and
if she dies purchase
price is paid to their
legal heirs.

e) Joint life, last survivor

without return of
purchase price: It is
similar to the previous
one except no purchase
price is paid if the last
survivor dies.

AREAS IN WHICH RELIANCE CAN SHOW ITS

GROWTH POTENTIAL:

 It can increase number of riders from three by including other riders like
critical illness women rider and waiver of premium rider.

 In addition to traditional endowment plan it can bring in endowment plan

with ULIP which most of its competitors offer.

 It can further reduce its minimum age of entry and can extend its maturity
age.

AREAS IN WHICH RELIANCE HOLDS THE

COMPETITIVE EDGE OVER ITS COMPETITORS:
  The minimum premium available in Reliance is just Rs.250 per month
which no other competitors provide so a person with very low income can
take up endowment plan in Reliance.

 It offers wide range of high sum assured benefits from Rs.1lakh to 10lakhs
and above.

 It offers a grace period of additional 30 days from the due date.

SUGGESTIONS AND RECOMMENDATIONS:

After completing the study and after finding out the results of the study, I have
come out with the following suggestions, which can be helpful for Reliance in the
longer course of action. The suggestions are entirely based on the findings of the
research conducted and the understanding of the problem done by me.

 Reliance should concentrate on increasing the brand awareness of the

organization and for this they should go for massive promotion and
advertising. The way they can do it is like this: people who go to Reliance
web world for paying telephone bills or taking new connections can be
given broachers which contains the information about the Reliance Life
products and it should also mention the number of financial advisor with
whom the person can contact if he is willing to invest in Reliance Life.

 The second suggestions would be to make the people aware of the thing
that insurance is not only a death cover it also provides good opportunities
for investment also. As, most of the people think insurance as a cover
against death only and do not think it as a profitable investment option.

 Reliance Life should clearly mention the name of the parent group under
which it is working, as most of the people are confused about it.
 Reliance Life should increase the number of Branches in Bangalore, as in
a city like Bangalore there are only three Reliance branches which makes
it difficult for the people to communicate with Reliance offices.

 To compete with players like ICICI Prudential, Bajaj Allianz, HDFC and
many more, Reliance should introduce the ULIP option in more plans
(currently only pension and the market return plan has ULIP), it will give
the investors wider option to invest in different segments to diversify the
risk associated with investment.

 Reliance should try to take advantage of the brand name that it possesses,
as still many people are willing to invest in Reliance for merely the brand
name that it carries.

 Reliance should project the future growth opportunities that it has to the
common people as it will create a clear picture of Reliance in front of the
public as well as it will help them to realize that Reliance is the company
that can fulfill there dreams in future.

 Reliance should try to increase their marketing and sales channel by

increasing the number of financial advisors, as they are the people who
will meet the prospective customer first and who can provide the best deal
for both the company as well as the individual concerned.

 Reliance Life should first go to those people who are already

associated with Reliance in some or other way as convincing those
people will be easier than those who do not hold any investment in
Reliance group. This will help in creating a good market for
Reliance Life, which can work as the base for future growth.
 LIMITATIONS OF THE RESEARCH:

a) The sample size chosen was 50 which was too small and that may not
represent the true picture of the consumer perception about the Life
Insurance sector.

b) The research got confined to the city of Bangalore.Nearly 90% of the

respondent belonged to the age group of 20-50 years and only 10%
were above 50 years. So, in collecting the responses the opinions of
the experienced and aged people were not available. So, the findings
may not be correct when we think about the opinion of the aged
people.

c) For conducting the comparative analysis I had to depend mostly on

secondary data about the company products, as primary data about the
same was not available.

d) Here, different parameters are adopted for comparison as different

company offer different products, but at the end of the day, hard
marketer is a beneficiary.

e) One of the important criteria that were selected by the respondents,

which they consider before taking an insurance policy, was ‘brand
image’, but there were no parameters available to compare criteria’s
like this between the companies.

f) The changes that have come into the ULIP products recently were not
taken into consideration for the comparative study.

g) The number of products chosen for comparison was only four, it was
mainly due to lack of information available as well as due to time
constraint.
 LEARNING OUTCOME:

In this time span of eight weeks, many aspects have come to my knowledge
both from the perspective of academic as well as corporate world. Those aspects
of my learning can be summarized in the following way:

a) The comparative analysis part helped to know about the different

products offered by different companies as well as different benefits that
they are offering with their respective products.

b) Then I came to know about the operations that go on in an organization

in the daily routine. It helped to prepare our self for the future when we
have to join an organization and work under similar conditions.

c) The concept of ULIP, which was not known to me, was explained
briefly as well as the difference between ULIP and Mutual Fund was
also made clear.

d) The skill of how to approach a person for convincing him/her was

learned at the time of meeting people.

So, from the point of view it was a great learning experience for me to know the
various aspects of customer handling that are being adopted by modern business
houses as well as to have the knowledge about the insurance sector which is an
integral part of the total finance industry in this little time span. This will help me
immensely in the future as insurance sector is growing at a rapid speed and there
will be lots of job opportunities in this sector in the future time to come
 BIBLIOGRAPHY:

 Company brochures and pamphlets.

 Websites:

1. www.irda.org

2. www.relianceadagroup.com

3. www.reliancelife.com