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Project Report On
RELIANCE LIFE INSURANCE COMPANY LIMITED
Partial fulfillment of the requirements of two years full time Master of Business Management (MBA)
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Preface--------------------------------------------------- (3) Certificate------------------------------------------------ (4) Acknowledgement-------------------------------------- (5) Executive Summary------------------------------------- (6) Index----------------------------------------------------- (7)
Projects, Thesis, Dissertation – projectsparadise.com
Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance Company Limited is officially launched on February 1, 2006. This was after obtaining the required regulatiry approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority. Reliance Life Insurance is the part of the Reliance Capital. Reliance Life Insurance has plenty of plans on the anvil. It has also 118 branches, with strong presence in South and a bouquet of products catering savings protection and investment need of individuals and corporate. The head-office of it is at Chennai. The company has already added 600 employees in addition to the 1000 plus staff of the erstwhile AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance aims to be the consumer’s preferred life insurer by understanding and meeting his needs. Think Bigger, Think Better!
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CHAPTER SUBJECT NO. 1 INSURANCE INDUSTRY 1.1 Meaning of Insurance 1.2 Importance of Insurance 1.3 Difference between Insurance and Assurance 1.4 Principles of Insurance 1.5 History of Insurance 1.6 Time line in Insurance history 1.7 Meaning of Life Insurance 1.8 History of Life Insurance 1.9 Key features of Life Insurance 1.10 Benefits of Life Insurance 1.11 Role of Life Insurance in the growth of economy 2 INTRODUCTION TO THE COMPANY 2.1 About Reliance Life Insurance 2.2 History 2.3 Journey so far 2.4 Role of IT at Reliance Life Insurance 2.5 Mission 2.6 Core Values 2.7 Future Plans 2.8 Head – Office 2.9 Branches 3 PRODUCT MIX 3.1 Traditional Plans 3.2 Unit linked Plans 4 HUMAN RESOURCE MANAGEMENT 4.1 Recruitment 4.2 Selection 4.3 Training and Development 4.4 Career Development 4.5 Communication 4.6 Incentives 4.7 Services 4.8 Performance Appraisal 4.9 Organizational form and Structure 4.10 Department
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MARKETING DEPARTMENT 5.1 Distribution Channel 5.2 Promotional Programmes and Target segment 5.3 Comparative Study RESEARCH METHODOLOGY 6.1 Objective of the study 6.2 Questionnaire 6.3 Sampling Method and Sampling Size 6.4 Limitations 6.5 Analysis of Questionnaire 6.6 SWOT Analysis FINANCE DEPARTMENT CONLUSION BIBLIOGRAPHY AND REFRENCES APPENDIX
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Projects, Thesis, Dissertation – projectsparadise.com
CHAPTER-1 INSURANCE INDUSTRY
1.1 MEANING OF INSURANCE
Projects, Thesis, Dissertation – projectsparadise.com
Insurance is a financial device to spread the risks and losses of few people among a large number of people. as people prefer small fixed liability instead of big uncertain and changing liability. Insurance is desired to safeguard oneself and one’s family against possible losses on account of risks and perils. Thesis.” The other party called insured pays in exchange a fixed sum known as premium. It provides financial compensation for the losses suffered due to the happening of any unforeseen events.2 IMPORTANCE OF INSURANCE Projects. 1. Dissertation – projectsparadise.Insurance may be described as a social device to reduce or eliminate risk of loss to life and property.com 7 . Insurance is a collective bearing of risk. Insurance can be defined as a “legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event. which may be certain or uncertain.
The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Government may in near future allow 49% FDI in Insurance. insurance brokers’ regulation. new product ranges. There are many issues. Also the penetration of insurance in Projects. which require study. Right now the insurance industry has great opportunities in a country like India or China which huge population. Though market share of LIC has been affected. So it offers lot of scope for studying the insurance industry. Thesis. new distribution channels. incentive scheme of development officers of LIC etc. it has improved in terms of efficiency. Rural marketing of insurance. There are number of other hot topics like penetration of Health Insurance. This would lead to more capital inflow by foreign partners. Today insurance industry is one of the most growing sectors in India. The scope of the study of insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector. Insurance services play predominant role in the process of financial intermediary.Insurance constitutes one of the major segments of the financial market. There is lot of potential in the Indian Insurance Industry. Dissertation – projectsparadise. Another major issue is the effects on LIC after the entry of private players in the market.com 8 .
India is very low in both life and non-life segment so there is lot potential to be tapped. Dissertation – projectsparadise. So first we understand what is insurance? How the word ‘insurance’ is different from the word ‘assurance’? etc. Before starting the discussion on insurance industry and related issues. fire. we have to start with the basics of insurance. On the other hand the word insurance was used to denote indemnity type of insurances where the insurance company was liable to pay only in case of the loss damage the property. etc. the term assurance came to be used only for the risks covered by life insurance and the term insurance was exclusively used to denote the risks covered by marine.com 9 . 1. Thesis. From 1826. Projects. In life insurance.3 DIFFERENCE BEETWEN INSURANCE AND ASSURANCE Assurance is older in history and it was used to describe all types of insurances. there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. The word assurance indicated certainty. The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance.
(3) Principle of subrogation This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insured’s right of recovery from an alternative source is involved. he shall be fully indemnified only to the extent of loss. Both the parties should disclose all material information regarding the subject matter of insurance.The principle of “indemnity” applies to “insurance contracts”(non-life) only. (1) Principle of “Uberrima Fides” or Principle of utmost good faith It means “maximum truth”. In other words.com . the insurer is entitled to recover from a negligent third party any loss payments made to the 10 Projects. In other words. Thesis. The insurer before the settlement of the claim may exercise the right. (2) Principle of indemnity This means that if the insured suffers a loss against which the policy has been made. The scope of the word. Dissertation – projectsparadise. insurance is wider.4 PRINCIPLES OF INSURANCE An insurance contract is based on some basic principles of insurance. the insured is not entitled to make a profit on his loss. 1.
The purposes of subrogation are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss. 1. Thesis.insured. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed.5 HISTORY OF INSURANCE Projects. (5) Principle of insurable interest The assured must have insurance interest in the life or property insured. (4) Principle of causa proxima The cause of loss must be direct and an insured one in order to claim of compensation.com 11 . The concept of ‘Third Party Claims’ is based on the same principle. he remains in the same old position. Dissertation – projectsparadise.
Life insurance in its modern form came to India from England in 1818. With a view to providing fire insurance facilities. Marine insurance companies came into existence by the end of the eighteenth century. The Sanskrit term ‘Yogakshema’ (meaning well being). which were later repaid with interest when the goods arrived safely. The early history of insurance in India can be traced back to the Vedas. The Great Fire of London in 1966 caused huge loss of property and life.The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans. is found in the Rig Veda. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. These companies were empowered to write fire and life insurance as well as marine.com 12 . The concept of insurance as we know today took shape in 1688 at a place called Lloyd’s Coffee House in London where risk bearers used to meet to transact business. Dr. This coffee house became so popular that Lloyd’s became the one of the first modern insurance companies by the end of the eighteenth century. The Aryans practiced some form of ‘community insurance’ around 1000 BC. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office. The insurance Projects. the name of Life Insurance Corporation of India’s corporate headquarters. Thesis. Dissertation – projectsparadise.
the Bombay Mutual Life Assurance Society.companies. came into existence in 1870 to cover Indian lives at normal rates. The Life Insurance Corporation of India (LIC) was set up in 1956. Thesis.com . As a result the government decided to nationalize the life assurance business in India.6 TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS) 1818 British introduced the life insurance to India with the 13 Projects. 1. which came into existence between 1818 and 1869. The nationalization of life insurance was followed by general insurance in 1972. and 75 provident societies carrying on life insurance business in India. expenditure and management of these companies. 16 foreign insurers. irregularities and dubious investment practices by scores of companies. treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. Dissertation – projectsparadise. Insurance business flourished and so did scams. By the mid. The Insurance Act.1950s there were 154 Indian insurers. This amended insurance Act looked into investments. The first Indian insurance company. the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. 1938.
Non-life business nationalized. Bombay Mutual Life Assurance Society is the first India owned life insurer. Malhotra to draw a blue print for insurance sector reforms. 1956 1972 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. The Indian Life Assurance Company Act enacted to regulate the life insurance business. Dissertation – projectsparadise. Thesis. 1850 Non life insurance started with Triton Insurance Company. Government took over 245 Indian and foreign insurers and provident societies. General Insurance Corporation (GIC) came into being. in Calcutta. Malhotra committee recommended reentry of private players. 1870 1912 1938 The Insurance Act was enacted.establishment of the Oriental Life Insurance Company . Nationalization took place. 1994 Projects.com 14 . N.
Dissertation – projectsparadise. 1. 2001 2002 Bank allowed to sell insurance plans as TPAs enter the scene. 2000 IRDA started giving license to private insurers. HDFC were first private players to sell insurance Policies. Royal Sundaram was the first non-life private player to sell an insurance policy. the insured. insurers start setting non-life claims in the cashless mode. although the owner and Projects.7 MEANING OF LIFE INSURANCE There are three parties in a life insurance transaction: the insurer. ICICI Prudential.com 15 . and the owner of the policy (policyholder).1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. Thesis.
buy a term life insurance policy. fixed and known annual premiums. Thesis. and a cash value table included in the policy guaranteed by the company. • Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. Life insurance may be divided into two basic classes – term and permanent. The policy does not accumulate cash value. Projects. The primary advantages of whole life are guaranteed death benefits. and not a savings and investment product. guaranteed cash values. • Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. unless the owner fails to pay the premium when due. • Whole life insurance provides for a level premium. Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. • Permanent life insurance is life insurance that remains in force until the policy matures. Premiums increase the cash account. and mortality and expense charges will not reduce the cash value shown in the policy. Dissertation – projectsparadise. If you want insurance protection only.the insured are often the same person.com 16 . A universal life policy includes a cash account.
ship owners were the insured and lenders were the underwriters. Check the National Association of Insurance Commissioners website (www. Protecting against risk is what insurance is all about. an interest rate. a number of ships would carry a portion of another ship's cargo so that if one ship was captured. or other cash value policy. These provided the underpinning for marine insurance contracts. the entire shipment would not be lost. cargo. Piracy.500 years ago. and a surcharge to cover the possibility of loss. Over 5000 years ago. in the ancient land of Babylonia.com 17 . universal life. In another part of the world.If you want to buy a whole life.org/cis) or your local library for information on the financial soundness of insurance companies. In effect. In 2100 BC.naic. in China. that as a way of spreading the risk. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. 1. insurance was seen as a preventative measure against piracy on the sea. Dissertation – projectsparadise. nearly 4. or freight. Canceling these policies after only a few years can more than double your life insurance costs. plan to hold it for at least 15 years. Thesis. in fact. the Code of Hammurabi granted legal status to the practice. traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. Projects. was so prevalent. Such contracts contained three elements: a loan on the vessel.8 HISTORY OF LIFE INSURANCE Risk protection has been a primary goal of humans and institutions throughout history.
commerce. most of the concepts of insurance were abandoned. the name of Life Insurance Corporation of India's corporate headquarters.com 18 . flood. where burial clubs were formed to cover the funeral expenses of its members.D. life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. And similar to ancient Rome. as well as help survivors monetarily. death. or as they were known then. theft. With Rome's fall.. Thesis. early forms of insurance ebbed with the decline of travel and long-distance trade. burial societies were formed in the Buddhist period to help families build houses. During the feudal period.Life insurance came about a little later in ancient Rome. and to protect widows and children. These provided forms of member insurance covering risks like fire. disability. Lloyd's Coffee Projects. is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. Dissertation – projectsparadise. But during the 14th to 16th centuries. transportation. Modern Insurance Illegal almost everywhere else in Europe. Insurance in India can be traced back to the Vedas. For instance. yogakshema. and insurance would again reemerge. but aspects of it did continue through the Middle Ages. Lloyd's of London. around 450 A. The type of insurance we see today owes it's roots to 17th century England. and even imprisonment. particularly with merchant and artisan guilds.
Dissertation – projectsparadise. 79 merchant underwriters broke away in 1769 and two years later formed a “New Lloyd’s Coffee House” that became known as the “real Lloyd’s. And the first life insurance policy for the general public in the United States was issued. in fact. Insurance moves to America The U. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston. ship owners and underwriters met to discuss and transact business deals.House. Gambling was so rampant. that when newspapers published names of prominent people who were seriously ill. The key to its success was reducing the opposition from religious groups.” Making wagers on people's deaths ceased in 1774 when parliament forbade the practice. Thesis. that life insurance really took off in a big way. 1761. In 1835. bets were placed at Lloyd’s on their anticipated dates of death. Massachusetts became the first state to require companies by law to maintain such reserves. was the location where merchants. The Projects. the infamous New York fire drew people's attention to the need to provide for sudden and large losses. The Presbyterian Synod of Philadelphia in 1759. SC. Two years later. life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. insurance industry was built on the British model. Reacting against such practices. But it wasn't until 80 years later (after 1840). on May 22.com 19 . sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. in Philadelphia.S. While serving as a means of risk-avoidance.
Many employers sponsor group insurance policies for their employees.com 20 .great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. Employees contribute a certain percentage of the premium for these policies. public liability insurance. as do most labor organizations. many societies were founded to insure the life and health of their members. membersonly insurance. As America moved from a colonial outpost to an independent force. while fraternal orders provided low-cost. In 1897. With the creation of the automobile. Final Thoughts Even though the American insurance industry was greatly influenced by Britain. but sickness and accident benefits and old-age pensions. which made it mandatory for a company to insure its employees against industrial accidents. Thesis. wherein the risks are spread among several companies. was devised specifically for such situations. such fraternal orders continue to provide insurance coverage to members. Even today. land diversity and the overwhelming desire to be independent. which first made its appearance in the 1880s. the US market developed somewhat differently from that of the United Kingdom. providing not just life insurance. Dissertation – projectsparadise. Contributing to that was America's size. the British government passed the Workmen's Compensation Act. During the 19th century. from a farming country to an Projects. gained importance and acceptance? More advancement was made to insurance during the process of industrialization. The practice of reinsurance.
Thesis.com 21 . Permanent policies provide a death benefit that is guaranteed for the life of the insured. as the policyholder you continue to be the owner of the policy and the nominee does not have any right under the policy so long as you are alive.9 KEY FEATURES OF LIFE INSURANCE 1) Nomination: When one makes a nomination. 2) Assignment: If your intention is that your policy monies should go only to a particular person.industrial nation. 4) Cash Value: - Projects. 3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. the insurance business developed from a small number of companies to a large industry. you need to assign the policy in favor of that person. Dissertation – projectsparadise. Insurance became more sophisticated. The nominee has only the right to receive the policy monies in case of your death within the term of the policy. offering new types of coverage and diversified services for an increasingly complex country. provided the premiums have been paid and the policy has not been surrendered. 1.
Dissertation – projectsparadise. 7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. If one owns a term policy. if the policy were surrendered before the insured's death. Thesis. Either a fixed or variable rate of interest is charged. 6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways. This feature allows the policy owner an easily accessible loan in times of need or opportunity. individuals often purchase term life insurance.com 22 . 9) Disability Waiver of Premium Projects.The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. 5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability. one of which is toward the purchase of additional coverage. after any applicable surrender charges. It equals the amount a policy owner would receive. called paid-up additions. 8) Conversion from Term to Permanent: When in need of temporary protection.
Dissertation – projectsparadise. Thesis. Life Insurance policies thus decrease the total taxable income of an individual. 2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees.10 BENEFITS OF LIFE INSURANCE 1) Risk cover: Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future.com 23 . Projects. It guarantees that coverage will stay in force and continue to grow 1.Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost.
Moreover the cash value can be used as an additional income in the old age. 1. The industry is recognized as one of the largest financial Institutions in the country. Projects. The ventures initiated by the industry in the areas of Mutual Fund. 5) Educational Needs: Similar to retirement planning the cash values that flow from ones life insurance schemes can be utilized for educational needs of the insurer or his children.3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies. Thesis. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. Dissertation – projectsparadise. Through investments in the Government sector and socially.11 ROLE OF LIFE INSURANCE GROWTH OF THE ECONOMY IN THE The Life Insurance Industry has an enviable track record among public sector units. 4) Retirement Planning: What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years.oriented sectors the Industry has contributed immensely to the nation's development.com 24 .
Dissertation – projectsparadise. CHAPTER-2 INTRODUCTION TO THE COMPANY Projects.Housing Finance has done exceedingly well in recent years.com 25 . the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders. To protect the country's foreign exchange reserves. Thesis.
and ranks among the top 3 private sector financial services and banking companies.1 ABOUT RELIANCE LIFE INSURANCE Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. in terms Projects.Anil Dhirubhai Ambani Group.com 26 . Thesis. Reliance Capital is one of India’s leading private sector financial services companies. Dissertation – projectsparadise. of the Reliance .2.
Thesis. 1934. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. proprietary investments. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate.of net worth. Reliance Capital has interests in asset management and mutual funds. private equity and other activities in financial services. the financial arm of Reliance – Anil Dhirubhai Ambani Group 27 Projects. stock broking. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. life and general insurance. 2.com . Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act. Dissertation – projectsparadise. It was in August 2005 that the ball was set rolling when Reliance Capital Limited.2 HISTORY Reliance Capital Limited announced the launch of its life insurance business on February 1. 2006.
com 28 . Thesis. and the formal transfer of shares took place in October 2005. The company will issue all policy contracts under the Reliance Life Insurance Company limited name. Dissertation – projectsparadise. 2006 January 17: ‘Optimising Mr. 2.(ADAG) – announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact.3 JOURNEY SO FAR… 2005 August: Co Ltd. Nandgopal participates in a one-day conference on growth opportunities through Distribution Matrix: Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Projects.
Sureshbabu also graced the occasion. February 16. March 7: The new office at Chennai. at the Trapezium. First Floor. 2. Nelson Manickam Road. Nandgopal. 18: Strategy meet at the Reliance Management Institute. Dissertation – projectsparadise. Mumbai. # 39. Amitabh Jhunjhunwala. March 1: Churchgate office inaugurated by Mr. 17. 14 ‘E’ Road. with fail-over capability to their Chennai Data Centre Projects.com 29 . Functional Heads. Nandgopal. COO. Mr. Mr.‘Emerging Bancassurance’ organized by the Asia Insurance Post at the Taj President.4 ROLE OF INSURANCE IT AT RELIANCE LIFE 1) World Class Data Centre: They plan to establish a Primary Data Centre at Navi Mumbai (Dhirubhai Ambani Knowledge City) which will cater to their company needs across India. Amitabh Chaturvedi and Mr. Thesis. February 1: Rliance Life Insurance officially launched. Mumbai. KV Srinivasan and Mr. March 6: Shifting to the new premises at Churchgate commences. 4th Floor. Amongst those who participate are the CEO. Regional Managers and Regional Sales Managers. inaugurated by their CEO Mr. February 26: A Puja held at the Churchgate office situated in Express Building.
within the same business day in occurance if an incident or Disaster happens. Corporate News. Life-Asia and Internet Applications.com . Some of the functions included in their portal are Policy Tracking Systems. 2) Inter Office Connectivity: All their Branch / Area and Regional offices will be interconnected to their Data Centre with a 24x7 access to Core Applications like Lotus Mail. Under Writing Medical System. and Agent Management System etc. A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress. This will enable their associates to work faster and better with high-speed Internet connectivity and also ensure faster Turn Around Time for their customers. 3) Customer Care Centre: They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai. which cater services to internal and external queries and complications. Dissertation – projectsparadise. 4) Web Portal: This portal will be an interface between both internal employees and their external users. Thesis. 5) R World: 30 Projects. Quality Checking System.
Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc. Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. Thesis. This Lounge will be equipped with desktops and printers with Internet connectivity. where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. Products. The Agents/Advisors can use this area to service their existing customers. 6) SMS Alerts: SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns. 8) Advisor Lounge: It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches across India.Reliance Mobile R-World will provide online information about their Company. A common middleware between these applications will enable Group Life Customers to view their individual Single Life Insurance Plan details taken with Reliance Life Insurance and vice versa. and Policy Services to their existing customers. Policy Dispatch Details. 9) Document Management System: Projects. Dissertation – projectsparadise.com 31 . Agents/Advisors and Lead Generators. Customer Alerts will include Welcome/Birthday/Anniversary message. 7) Life and Group Asia: Single Life and Group Life details will be captured and managed by Life and Group Asia.
will automate the Expense.business results.5 MISSION The mission of Reliance Life Insurance Company Limited is to be the best in every sphere. customer care and employee focus.DMS will enable both policy issuance and contract servicing through an automated workflow. 11) SAP – ERP Modules: SAP (Finance and HR Modules). 2. Thesis. 10) Wireless Data Access: This will enable identified Top Sales Managers and Top Advisors to access real time data for both LMS and CRM on the fly through Handheld PDA device. which yields a faster Turn around Time to both internal and external users.com 32 . Travel and Leave Management Systems.6 CORE VALUES Reliance Life Insurance Company Limited has some core values which are listed as follows: Projects. 2. The aim of the company is to Think Bigger and Think Better. Dissertation – projectsparadise. This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers.
A state-of-the-art customer care centre will provide continuous. responsive services to the caller and promptly address queries. Thesis. 2.8 HEAD – OFFICE Projects. and a pan India presence with 162 branches in the coming year.7 FUTURE PLANS Forty-four new branches to be opened across the country in the coming months.com 33 . It will be launching additional products aimed at providing unparalleled service to its valued clientele. Dissertation – projectsparadise. who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai. collate feedback and suggestions from the caller.1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun 2.
Dissertation – projectsparadise.com 34 . Projects.Reliance Life Insurance Company Limited. They have around 160 branches in the India. Chennai – 600 029. First Floor. And they have planned to open more branches across the country in the coming months. 2. 39. Nelson Manickam Road.9 BRANCHES They have so many branches and substations in the India. Thesis. The Trapezium.
Dissertation – projectsparadise.CHAPTER – 3 PRODUCT MIX Projects. Thesis.com 35 .
3.com . Dissertation – projectsparadise.1 TRADITIONAL PLAN:Life insurance products are designed to suit the requirements of customers. Fundamentally the product provide for: Risk cover Investment Health cover 36 Projects. Thesis.
In order to suggest the right product. Thesis. which are listed as follows: 1) Reliance Term Plan 2) Reliance Whole Life Plan 3) Reliance Child Plan 4) Reliance Endowment Plan 5) Reliance Special Endowment Plan 6) Reliance Cash Flow Plan 7) Reliance Credit Guardian Plan 8) Reliance Special Credit Guardian Plan Each of the above traditional plans is discussed as follows: 1) Reliance Term plan: This insurance policy is designed for those who only want life cover for the protection of their family. it is essential for an agent to understand the requirements of the customer well.In every product.com 37 . Since Projects. It can also be useful to business firms that wish to provide financial security to their business against the sudden loss of partners or valuable manpower. the premiums are calculated and the customer pays accordingly. Based on the coverage of the product. to a certain degree. and do not wish to save for themselves. Dissertation – projectsparadise. Reliance Life Insurance Company Limited has offered 9 traditional plans to the customers. risk cover is imperative for it to fall under the category of insurance.
Thesis.A. Dissertation – projectsparadise. the premium is very low. Features: a) Purely a term plan b) Entry age minimum 18 years and maximum 65 year c) Maximum premium paying term is 30 year d) Loan facility N. this is a high-risk plan with a low premium.com 38 .there is no saving element or bonus provision. Hence. e) Maturity amount = Sum assured 2) Reliance Whole Life Plan: This insurance policy is designed for people who do not wish to avail of any benefits themselves but wish to create an immediate estate to protect their family by availing of insurance cover on their life at a very low cost. Features: a) It is a whole life insurance policy with profits b) Low cost life cover c) Maturity age is 85 year or 99 years last birthday as chosen d) Maturity amount = Sum assured + Vested bonus e) Tax benefit is available Projects.
Features: I. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs.3) Reliance Child Plan: This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money. b) Minimum premium paying term is 5 year and maximum 20 year c) Tax benefit is available d) Maturity amount = Four equal installment of sum insured in last four year plus vested bonus in the last year e) Loan facility is available 4) Reliance Endowment Plan: - Projects.000. Dissertation – projectsparadise. a Doctor or specialize in some other field. This money is payable in equal installments over the last 4 years of the policy term. 25. This is especially true when it comes to paying large sums of money for higher education as and when your son or daughter is studying to become an Engineer. or is perhaps planning to go abroad.com 39 . Thesis.
Thesis. your child’s university education or even a new office for your business .your daughter’s wedding. In a nutshell this plan will keep you financially prepared for all the special occasions in your life . In the event of your untimely death. It is an inexpensive and easy way to protect you. Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides. Features: a) Entry age minimum is 5 year and maximum 65 year b) Maturity age minimum is 18 year and maximum 75 year c) Minimum premium paying term is 5 year and maximum 35 year in case of regular and in case of single 15 year Projects.by eliminating the burden that a shortage of money creates. which you will receive at the end of the policy period.com 40 . your family or your business. Dissertation – projectsparadise.Reliance Life Insurance’s Reliance Endowment Plan is the key to all your financial needs. Reliance Endowment Plan also gives you the additional benefit of participating in the company’s profits.
000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual. Thesis. half yearly. 25.000 c) Minimum premium paying term is 10 year and maximum 40 year Projects.d) Minimum sum assured is Rs. 25. Features: a) Entry age minimum 12 year and maximum 65 year b) Minimum sum assured is Rs. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium. 5. Dissertation – projectsparadise. quarterly and monthly (by salary deduction only) g) Loan up to 90% of the surrender value of the policy h) Maturity amount = Guaranteed sum assured + Reversionary bonus 5) Reliance Special Endowment Plan: This insurance policy is designed for people who wish to combine savings with extended security. This plan also participates in the profits.00. Payment of sum assured at the end of premium paying term and extension of life cover thereafter for the full sum assured for a period of 5 years.000 or as determined by the minimum premium e) Maximum sum assured is Rs. are characteristics of the policy.com 41 .
through regular premium payments. your daughter's engagement. a periodic return of lump sums which become available for reinvestment at higher returns. Alternatively.d) Unique feature of this policy is that five year life protection continues after you have stopped the payment of premium e) Tax benefit is available f) Under this policy bonus is compounded yearly g) Loan facility is available h) Maturity amount = Full sum assured before maturity date + Vested bonus at the time of maturity date 6) Reliance Cash Flow Plan: This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. Thesis. a holiday abroad.com 42 . while providing simultaneously. The advantage of the policy is that they need not part with a sizable amount of money at any one time. and renovation of your home or perhaps. The first installment is paid at the end of the 4th year and thereafter at the end of every 3rd year. it can be used to meet any immediate financial crisis in the family like your son's college admission. The money is payable in installments. Features:a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year Projects. but create. Dissertation – projectsparadise. substantial life cover.
Features: a) Loan protection against home. two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for single and regular is available e) Premium paying term is 2/3 of loan period and remaining period paid by the company 8) Reliance Special Credit Guardian Plan: Projects. Dissertation – projectsparadise. Thesis. home improvement.c) Maximum premium paying term is 34 year d) Loan facility is not available e) In case of death full sum assured + accrued bonuses up to the date of death is payable immediately f) In case of survival up to maturity date all premium paid g) Rider accident death and critical illness h) Mode of payment is available 7) Reliance Credit Guardian Plan: This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death.com 43 .
com 44 . Features: a) Loan protection against home.This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death. Projects. Dissertation – projectsparadise. two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for regular and single is available e) Premium payment term is 2/3 of loan period and remaining period paid by the company f) Maturity amount = All the premium paid amount g) Tax benefit is available 3.2 UNIT LINKED PLAN A unit-linked policy is a life assurance policy in which the benefits depend on the performance of a portfolio of shares. disability or critical illnesses. Thesis. home improvement.
Policyholders can surrender the policy at any time and the surrender value is the selling price of the units purchased by the date of cancellation 9less expense). Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured. etc. Dissertation – projectsparadise. expenses. Thesis.Each premium paid by the insured person is split: a part is used to provide life assurance cover. A small part of the contribution is used for providing life cover and the balance is invested in unit.com 45 . Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans. In this way. which are listed as follows: 1) Reliance Market Return Plan 2) Reliance Golden Years Plan Amongst the above plans the Reliance Market Return Plan is the largest selling plan of the Reliance Life Insurance Company Limited.) is used to buy units in a unit trust. a small investor can benefit from investment in a managed fund without making a large financial commitment. The above two ULIP plans are discussed as follows: 1) Reliance Market Return Plan: Reliance Market Return Fund is the unit-linked product that helps you invest in the financial markets in a combination of investment instruments of your Projects. As they are linked to the value of shares. unit linked policies can go up or down in value. while the balance (after the deduction of costs.
Features: a) Minimum entry age is 30 days and maximum entry age is 65 year b) Maximum policy term 40 year and minimum policy term 5 year c) Mode of premium as annual. ii. iv.com 46 . 2500 (standing order/credit card) d) Top up premium minimum Rs. half yearly and monthly Rs. 1000 (for salary deduction only) and Rs. Thesis. Dissertation – projectsparadise. Capital secure 100% fixed interest securities Balanced minimum 80% fixed interest securities and maximum 20% in equity Equity 100% equity Growth minimum 60% fixed interest securities and maximum 40% in equity f) Loan facility is not available g) One switches every year free and subsequent switches charged 1% of the amount switched Projects. quarterly. You can enjoy the returns from the markets without the trouble of monitoring and managing your own investment portfolio and keeping track of the market movements. Reliance Market Return Fund unit-linked insurance plan provides you with a basket of fund options that balances your return and risk exposure while providing life cover at the same time. At the same time your investment premiums provide you with insurance cover. 2500 e) Option of investment fund i. iii.choice.
Reliance Golden Years Plan. 10. Thesis. life cover.h) Partial withdrawals per year under regular and single premium options is 2 times i) Lock in period till today is 3 year j) Minimum unit account balance after each withdrawals is Rs. vesting options such as commuting and annuity options.000 2) Reliance Golden Years Plan: Reliance Golden Years Plan….com 47 . Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment. The Reliance Life Insurance ‘no-worry stay happy’retirementplan. Contributions provide Income tax savings as well. a flexible pension product is available for all individuals who are between the ages of 18 and 65.000 and maximum is unlimited c) Mode of premium payment is available d) Pension plan with risk cover and without risk cover e) Choice of investment Projects.. Features: a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs. 10. Dissertation – projectsparadise.
Dissertation – projectsparadise.com 48 .i. Annuity payable for life Annuity payable for 5/10/15 years certain and thereafter with life Annuity payable for life with return of capital on death of the annuitant CHAPTER – 4 HUMAN RESOURCE MANAGEMENT Projects. Capital secure fund – 80% in equity and 20% in government security Balanced fund – 80% in government and 20% in equity f) No loan facility is available g) Tax benefit is available h) Annuity options i. iii. Thesis. ii. ii.
Thesis.com 49 . The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.4. Dissertation – projectsparadise. Projects.1 RECRUITMENT Recruitment is the process of finding and attracting capable applicants for employment.
will conduct the process of selection of Sales Manager 1) Personal Interview: The first step of selection of Sales Manager in the Reliance Life Insurance Company Limited is to conduct a personal interview of an applicant by the Branch Manager. who recruits the advisors/agents for selling the products of the company. the person will become an insurance advisor in the company. In simple words. The advisors should have at least passed the S. which is conducted by the Insurance Institute of India.S. 4. The Branch Manager.C.In this company the Sales Manager. Dissertation – projectsparadise.2 SELECTION Selection is the process of picking individuals (out of the pool of job applications) with requisite qualifications and competence to fill job in the organization. Projects. After clearing the examination the code will be provided to them and the license will also be given to them. does the recruitment. Mumbai.com 50 . Thesis. After all these requirements. or any other approved examination body. examination. the validity the license would be 3 years. it is the process of differentiating between applicants in order to identify these with a greater likelihood of success in a job. which includes-. They must pass the prerecruitment examination.
Projects. the project 40 interview will be taken by the Branch Manager. In this step. 4) Negotiation: After clearing the interview with Regional Head. 6) Selection: After clearing all the above steps the applicant should be appointed/selected as a Sales Manager in the company. Thesis. the medical check up should e made to the applicant. who will check his/her performance. 5) Medical Examination: After that.2) Project 40 Interview: After clearing the personal interview. Dissertation – projectsparadise.com 51 . the applicant should be interviewed by the Regional Head. 3) Interview with Regional Head: After clearing the project 40 interview. the applicant should have to make a list of 40 and then start the business with them. the negotiation will be provided to the applicant.
A. motivating and in turn getting business out of a team. They should have good communication skill. Dissertation – projectsparadise. The need for training and development is determined by the employee’s performance deficiency. guiding. 2. 3. The age of them should be between 25 to 35 years. Thesis. training. They should have at least sales experience of 3 years. 4. They should have the capability to handle the team. 6.3 TRAINING AND DEVELOPMENT:Training and Development is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning usually by changing the employee’s attitude or increasing his/her skills and knowledge. 5.Requirements of Sales Manager:The Sales following things1.com 52 . Manager should possess the 4. Their job profile includes recruitment. They should be an M. computed as follows: Projects.B.
com 53 . which enabling free interaction between all levels. The communication is provided in the following manner: Projects.Training & Development = Standard Performance – Actual Performance They are providing 100 hours training to their advisors.4 CAREER DEVELOPMENT They are also providing career development plans. Dissertation – projectsparadise.5 COMMUNICATION Communication is the process through which an individual can exchange their beliefs. In simple words. information. 4. They are also providing the product training to their advisors and Sales Managers. They are providing an open environment. who are newly recruited. 4. and experience to others. things. Thesis. who are newly recruited. The 100 hours training is to be conducted at Net Bios Computer Academy whereas the product training is to be conducted at NIS SPARTA. This institute is approved by IDRA to train agents/advisors. it is the process of exchanging the information from one person to another. The NIS SPARTA Institute has more than 150 batches and is trained over 3000 agents for most of the private insurance companies. which will identify potential and create avenues for growth.
com 54 .Projects. Dissertation – projectsparadise. Thesis.
Dissertation – projectsparadise. Thesis.com 55 .BRANCH BRANCH BRANCH REGIONAL REGIONAL REGIONAL CHANNEL HEAD CMO CEO Projects.
associates and their families. which are including sales incentives. then different Regional Head to Regional Head. which includes employees. Dissertation – projectsparadise.com 56 .Explanations of the diagram:The communication is flow between Branch to Branch. and then Branch Head to Regional Head. They are providing an aggressive reward and recognition plans. then to Chief Executive Officer (CEO). Within a branch. 2) They are planned team building and fun events. it flows between Branch Manager to Sales Managers and Sales Managers to Agents/Advisors. then Regional Head to Channel Head. 4. Projects. then to Chief Marketing Officer (CMO).7 SERVICES They are offering following certain services to their employees. 4. 3) They are creating Reliance Life Insurance family.6 INCENTIVES Incentives are monetary benefits paid to workmen in recognition of their outstanding performance. 1) They are providing knowledge sharing and certification practices. Thesis.
structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee.com 57 . In addition to this. Thesis. 4. Dissertation – projectsparadise. organization and society all benefit. If the performance is best then he/she will be prompted. Projects. achievement oriented and challenge loving performance. customer focused. Performance appraisal is a formal. the Branch Manager should measure the performance of the Sales Managers at every six months and the Sales Manager should measure the performance of the advisors/agents.8 PERFORMANCE APPRAISAL Performance appraisal is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development. They are providing a balanced scorecard approach for strategy deployment and performance measurement.4) Reliance Life Insurance in a team building mode and is looking for performance driven. which goals and measure financial. process related and employee development related initiatives.
com . Dissertation – projectsparadise.9 ORGANIZATION STRUCTURE CEO CMO Channel Head Regional Head Branch Head SalesCEO Manager Advisors/Agents Customers FORM AND 4.10 DEPARTMENT They are providing following areas or departments: 1) Retail Sales 2) Under Writing 3) Actuarial 4) Insurance Operations 5) Customer Service 6) Quality and Processes 7) Human Resources 58 Projects. Thesis.4.
8) Finance CHAPTER – 5 MARKETING DEPARTMENT Projects.com 59 . Thesis. Dissertation – projectsparadise.
Independent agents & insurance producer groups are growing in prevalence. Ltd is using. which Reliance Life Insurance Co. The one type of distribution channel. Although producer groups are in their infancy. Dissertation – projectsparadise. which are as follows: 1) Agency: Independent insurance agents represent a number of companies and can research these companies’ products to find the right combination for their clients. their emergence may potentially be realignment in the distribution of financial services. they had increased buying power.com 60 . is an agency. Independent shops realized that by pooling production and funding a central support office.1 DISTRIBUTION CHANNEL Reliance Life Insurance Company Limited is using five types of distribution channel.5. Thesis. This channel works as follows: Branch Managers Advisors Customers Projects.
the advisors will sell the products/policy to customers of the small enterprises. Dissertation – projectsparadise. Thesis. followed by demand for corporate trustee services. and direct marketing insurance. a research was performed with independent advisors across several broker/dealers and custodians.2) Bank Assurance: While a lot of bank relationships with insurance companies have been established. Another type of distribution channel is corporate. life insurance sales have been slower than one would expect he primary bank insurance activities have been the distribution of annuities. credit life. Projects.com 61 . In this channel the advisors using or targeting the bank customers to make a business with them i. to sell the policy of the company. Banks are failing to incorporate successful sales tactics used to sell other financial services like investments. which are for employee benefits.. 3) Corporate:To gain a better understanding of the demand amongst independent advisors for trust services and to gain a better feel for how independent advisors handle trust services. This channel is tie up with corporate or small enterprises.e. Through these small enterprises. Another type of distribution channel is bank assurance. This channel is tie up with banks. The interviews revealed that demand is greatest for living trusts among independent advisors.
consumers are expressing a willingness to deal with a variety of providers on the web. Dissertation – projectsparadise. Across all financial services. These firms have steadily captured assets. Another type of distribution channel is web world. Thesis. which are taken from the customer database. 5) Web World:Direct sales of life insurance are growing rapidly. This channel is tie up with customer database. This channel works as a dealership. In this channel. the advisors will sell the policy to the target customers.com 62 . The number of non-bank trust companies has increased in recent years as independent trust companies have emerged and more broker/dealers are integrated services. but many of the traditional full-serve players seem to be letting it go. Another type of distribution channel is rural benefits. In this channel.4) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business lost by the banks. primarily at the expense of the banks. Projects. are listed in the website. Web sites are starting to pop up offering consumer insurance products especially designed for distribution over the web. Insurance companies view full-service brokers as a potentially new distribution channel as well. the dealers will sell the policy to the target customers.
com 63 . which are as follows: 1) Shubh – Arambh:This promotional scheme is detailed as follows: SLAB (WRP) ACHIEVERS REWARD Projects. Thesis.e. Dissertation – projectsparadise..5. The Reliance Life Insurance Co. to sell the more policies. The promotional programmes are made to motivate the advisors/agents and sales managers to do more business i.2 PROMOTIONAL TARGET SEGMENT PROGRAMMES & Promotional programmes and target segment are related to each other. Ltd has made three promotional schemes.
00.:The full form of R. is Reliance Advisor’s Reward Experience.000 10.R.000 Login: 1st April to 31st May ‘06 Issuance till 15th June ‘06 Reliance Life T-Shirt Table Top Clock Leather Bag World Space Radio L.000 STAR ACHIEVERS 50.000 1.000 1.000 75.000 3.00.000 20. This programs consists of 1.000 15.00. New Advisor Incentive Program 2.4LS 2) R.G.00.000 1.000 7.R.00.50.E.00. Microwave.30.A.00.00.000 SUPER ACHIEVERS 5. Thesis.000 50.00.E. Maruti Swift Lxi GM Aveo 1.00. Board of Advisors Projects.000 2.A.50.com 64 .000 75.00. Dissertation – projectsparadise.19L DVD/VCD/MP3 Player Sony Music System LG Refrigerators GL-233 LG Air Conditioner 1T Sony Digital Camcorder Trip to Dubai 3D/4N Hero Honda Splender Maruti Alto Std.
com 65 . Program New Advisor Incentives:Criteria There will be two levels in the New Advisor Incentive program A. R.E.R.A. Qualification period B.R. RARE Club – Loyalty Program The above programs are described as follows 1. Advisor Career Progression 5. Time Period B.A. Thesis.A. Launch Pad B. R. Parameters 3. Program Discovery Series:Criteria There will be six levels in the Discovery Series program A. Program Board of Advisors:Criteria There will be two levels in the Board of Advisors program A. Take Off 2.R. Dissertation – projectsparadise. R. Annual Discovery Series 4.E.E. Business criteria Projects.3.
The qualification criteria will be the same for both the Global and the National Discovery Series D.A. Program Advisor Career Progression:Advisor Career Progression A. The criteria for entry into each level will be based on I.R. Issuances from 1st Apr ’06 to 15th Apr ‘07 Qualification Criteria 66 Projects. Qualification for the National Discovery Series F. Thesis. Business Associate B.E. Product Mix C. Business (WRP) II.A.C. R. Privilege Club:Levels A.R. Sales Manager 5. Dissertation – projectsparadise. R. Qualification for the Global Discovery Series E.com .E. Logins from 1st Apr ’06 to 31st Mar ‘07 II. The RARE Club will have 6 different levels B. The top 150 will bb calculated based on WRP (Weighted Recd Premium) 4. Persistency III. The qualification period is I.
000 Traditional Products 60% 60% 60% 50% 50% 50% Persistency 80% 80% 80% 85% 85% 85% 3) Elite Club Scheme:In this scheme the advisor. Projects.Level Topaz Pearl Sapphire Emerald Ruby Diamond WRP (Rs) 1.000 50. 2.00.000 15.000 10. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum. who have login the regular premium of Rs.com 67 .00. Thesis.00.3 COMPARATIVE STUDY Presently there are 15 Life insurance companies in the country.000 25. 00.000 5. Dissertation – projectsparadise. 5. There is only one public sector company LIC and the rest 14 are private sector.00.00.000 will be eligible for the Elite Club Membership.50.
The market share for FY 2005-06 was 71.89%. The company was registered on 23/10/2000.35%. The market share for FY 2005-06 was 7.44%.87%. ICICI Prudential Life Insurance: ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential.com 68 . It is a private sector company. The market share for FY 200506 was 1. Life Insurance Corporation of India (LIC): Life Insurance Corporation of India is a 100% government held Public Sector Company. The market share for FY 2005-06 was 2. It is a private sector company. It is a private sector company. HDFC – Standard: HDFC standard is a 74:26 joint venture between HDFC and Standard Life. Dissertation – projectsparadise. The company was registered on 31/1/2001. Kotak Mahindra OLD Mutual: - Projects. Thesis.1) Major Market Players: - Birla Sun Life Insurance Company: Birla Sun Life Insurance Company is a 74:26 joint venture between Birla group and Sun Life Financial. The company was registered on 24/11/2000. Being the first to be established LIC is the forerunner in the Life Insurance sector.
14%. The company was registered on 10/1/2001.13%) and ING (26 %). The company was registered on 14/5/2002.79%. Met Life India: - Projects.Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual. It is a private sector company.com 69 .23%. Max New York Life: Max New York Life is a 74:26 joint venture between J & Bank. The market share for FY 2005-06 was 1. Gujarat Cements (14. It is a private sector company. It is a private sector company. ING Vysya Life insurance: ING Vysya Life Insurance is joint venture between Exide (50%). Aviva Life Insurance India: Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. The company was registered on 6/8/2001. Thesis. The market share for FY 2005-06 is 0. The market share for FY 2005-06 was 1. Dissertation – projectsparadise. The market share for FY 2005-06 was 1. It is a private sector company.87%). The company was registered on 2/8/2001.11%. Enam (9. Pallonji & Co and MetLife.
The company was registered on 31/3/2001.Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank. The TATA AIG Group: TATA AIG group is a 74:26 JV between Tata Group and AIG.: - Projects. The company was registered on 3/8/2001. The company was registered on 6/8/2001. Dissertation – projectsparadise. Pallonji & Co and MetLife.A. The market share for FY 2005-06 was 2.: Bajaj Allianz Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG.31%. The market share for FY 2005-06 was 1.40%. The company was registered on 12/2/2001. Thesis. It is a private sector company. Bajaj Allianz Life Insurance Co.com 70 .It is a private sector company. It belongs to the private sector. Sahara India Life Insurance Company Ltd.29%.56%. The market share for FY 2005-06 was 7. The market share for FY 2005-06 was 0. SBI Life Insurance Company Ltd: SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S.
Dissertation – projectsparadise.06 %. 2) Market Share: - Sr. No 1 2 3 4 Insurer LIC Bajaj Allianz ICICI Prudential HDFC Standard Market Share (%) 71.56 7.com . The company expects to start operations soon. Shriram life insurance company Ltd: Shriram Life is a recent entrant into the life insurance sector It is a 74:26 joint venture between the Shriram group through its Shriram Financial Holdings and Sanlam Life Insurance Limited. The Company commenced operations from 30th October 2004.44 7. Thesis.35 2. The market share for FY 2005-06 was 0.First Wholly Indian Owned Private Life Insurance Company. South Africa.87 71 Projects.
Thesis.54 0. Dissertation – projectsparadise.79 0.11 0.23 1.14 1.06 0.4 0.03 Now let’s depict the market share of these players on diagram Projects.31 1.89 1.com 72 .29 1.5 6 7 8 9 10 11 12 13 14 15 SBI Life Birla SunLife Tata AIG Max New York Aviva Kotak Mahindra OLD Mutual ING Vysya Reliance Life MetLife Sahara Life Shriram Life 2.
It has the market share of approximately 7. SBI Life insurance Company Limited comes fourth. Its market share was approximately 98% before 2000 but after the entry of private players it has significantly decreased.1LIC Market Share(%) 2 B ajaj A llianz 3 ICICI P rudential 4 HDFC Standard 5 SB I Life 6 B irla SunLife 7 Tata A IG 8 M ax New Yo rk 9 A viva 1 Ko tak M ahindra OLD 0 M utual 1 ING Vysya 1 1 Reliance Life 2 1 M etLife 3 1 Sahara Life 4 1 Shriram Life 5 Here we can see from the diagram that LIC is the market leader and it commands the major part of the total life insurance market. 73 Projects. Rest of the players has market share below 2%.com . ICICI Prudential is also one of the fastest growing life insurance companies in India. Thesis. HDFC Standard comes third.56% in the total market and it constitutes 40% of the market share among private players. Among private players Bajaj Allianz stands first. Dissertation – projectsparadise.
Thesis. Dissertation – projectsparadise.com 74 .3) Capital Fund: - Capital Fund of Private Companies ( Rs in Crore ) ICICI Prudential Max New York HDFC Standard Bajaj Allianz Tata AIG Birla Sun Life AVIVA OM Kotak Reliance Life SBI Life Met Life ING Vysya 375 250 218 200 183 180 155 153 126 125 110 110 Projects.
com 75 . Thesis. Dissertation – projectsparadise.CHAPTER – 6 RESEARCH METHODOLOGY Projects.
Projects. Dissertation – projectsparadise. Thesis.com 76 .1 OBJECTIVES OF STUDY 1) To get some good market exposure by dealing with the prospects face to face. 2) To improve our ability to sell a financial product like life insurance.6.
The form of each question is also important. Dissertation – projectsparadise.3) To know the perception of the consumer about life insurance. unbiased wording questions.com 77 . Closed end question include all the possible answers and subjects matters choices among them.2 QUESTIONNAIRE It is most common instrument whether administered in person by phone or online questionnaires are very flexible. Thesis. 4) To get a deep knowledge of the financial product like insurance. Projects. I have used simple. I have taken care in the wording and ordering of questions. 5) To get some information about the market share of Reliance Life Insurance as compared to the giants like LIC and to know the standing of the company in the market. I have used open-end questions so that customers can write answer in their own words. which provide answers that are easier to interpret and tabulate. which are arranged in a logical order. direct. I have also used closed-end questions. I have asked personal questions at last so that respondent does not become defensive. 6.
I have tried to know their performance i. having been collected for another purpose. different magazines. up to what amount and since when. newspapers and libraries.3 SAMPLING METHOD AND SAMPLE SIZE Introduction:Any organization whether big or small. whether they want to invest. Thesis. 6. where thy want to invest. I have gathered secondary data and primary data and collected information from the combination of these two data. I have gathered secondary data from website of different operators.e. private or public need different types of information are to know its popularity.Questionnaire of the customer I have made questionnaire consisting seventeen questions to get customer’s view about life insurance. I have asked personal questions at last so that they do not become defensive. Primary data: Projects. Secondary data: Secondary data consist of information that already exists somewhere.com 78 . Dissertation – projectsparadise.
Sample size: I have taken sample size of 50 respondents. Projects. accurate. Dissertation – projectsparadise. 6. current and unbiased.I have taken great care while collecting primary data to answer that it is relevant. I have visited them personally to get data.4 LIMITATIONS I am a human hang. so there is some limitation of the human hangs which is reflected in this research. Because the population is too large so it is difficult to survey. The following are the limitation of this research study. Thesis.com 79 . I have taken a sample of 50 people.
2) The opinion expressed by the respondents may be biased. Dissertation – projectsparadise. I tried hard to come at conclusion. If I give more time then studies will be more effective.5 ANALYSIS OF QUESTIONNAIRE Here I have formed a questionnaire to study why people go for life insurance. What is people’s major motive behind investing in life insurance? Do they decide upon their own or they take guidance of an agent? What is their perception about Reliance Life Insurance Company Limited? Projects.1) The sample size of 50 might not represent the perception of whole population. 3) The attitude of the research might be biased. but there is lack of expertise. 6. as the sample size is too small for total population of Ahmedabad city. But in spite of their limitation I worked with the enthusiasm. 4) One of the most influencing and most critical limitations is that I am not trained for the research study and this is my first study.com 80 . 5) Another limitation is that there is lack of time. There are some limitations of this study. Thesis. And I tried to give the best results to the research of this report.
Out of these 7 questions. Professionals. Thesis. and general public. Analysis:I have used pie charts. Target Population:I had conducted this survey among 50 people.com 81 . 6 questions are close ended and one question is an open ended one. Dissertation – projectsparadise. Advocates. I asked the questions to Doctors. and some other statistical measures to analyze the questions. and the target group was a mix of people from the society.Questions:There are 7 questions in the questionnaire.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover (d) Return/Yield Projects. Professors. Q. Engineers.
20 5 23 2 50 There could be any motive of people behind investing in a life insurance policy. Now let’s see what all people say TAX SAVING RISK COVERAGE RETURN/YIELD Projects. The main purpose of life insurance is the Risk cover of one’s life. Dissertation – projectsparadise. But some people consider different advantages of a life insurance policy.com 82 . Thesis. While some people believe that it is a compulsory saving. Some people consider Tax benefit as the main advantage of life insurance.MOTIVE TAX SAVING RISK COVERAGE RETURN/YIELD TOTAL NO. Some believe that life insurance is an investment so they tend to invest in life insurance.
We founded from the discussion with public and some experts that those people with a low income tend to invest in life insurance to gain tax benefit. life insurance is for protection first then for Savings and Tax benefits all those things. But this is the general conclusion of 50 people. we can get a different result.com 83 . Saving motive constitutes very small part of the total sample. Return comes last. If we take a larger sample. Also the number of those people who wish to invest for return is also increasing. Q.2 Rank the above motives according to your preference MOTIVE OF INVESTMENT TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD Preference 1 2 3 4 21 19 8 2 3 11 25 11 24 16 7 3 1 4 10 35 Projects. The next preferred option is Tax Saving.Here we can see that majority of the people tend to invest in life insurance for the risk coverage. Thesis. Dissertation – projectsparadise. more and more people are turning towards these products so the Investment motive has been gaining command. As the private players have launched ULIPs. According to a life insurance expert (Vinod Thakkar ).
The third position is of saving and fourth is Return.com 84 . This shows that still people consider other financial tools more viable for return and life insurance is for Tax benefit and risk cover.40 35 30 25 20 15 10 5 0 ce 1 2 3 en 4 TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD We can see from the table and the graph that the number one motive of people about investing in life insurance is risk coverage. Dissertation – projectsparadise.3 How do you decide about investing in life insurance? (a) On my own (b) family decision (c) Employer decides (d) as per the guidance of agent This is a very crucial question as most of the people are not much familiar about different life insurance plans offered by different life insurance Pr ef er Projects. Thesis. Q. which is the main theme of life insurance followed by Tax benefit.
29 7 0 14 50 ON MY OWN FAMILY DECISION EMPLOYER DECIDES AGENT GUIDANCE Here we can see that majority people (58%) decides on their about investing in life insurance. Also sometimes it depends upon the convincing power of the agent.companies so people take help of the life insurance agent and as he guides understanding the needs of the individual. People tend to invest in life insurance plans to maintain relations though they are not in need of life insurance.com 85 . Projects. Dissertation – projectsparadise. SOURCE ON MY OWN FAMILY DECISION EMPLOYER DECIDES AGENT GUIDANCE TOTAL NO. Here one hazardous factor is the moral hazard. people would invest. Thesis. 28% persons decides as per the guidance of the agent.
The products range from pure Term Assurance Plans to Unit Linked Insurance Plans. 14% people invest in life insurance as per the family decision. Which life insurance policy would you prefer to buy? (a) Term Assurance (b) Whole Life (c) Endowment (d) Combination of Whole Life and Endowment (e) Unit Linked This is another crucial question as there are number of products offered by life insurance companies.4. Now let’s find out what people have to say: Type of policy Term Assurance Whole Life Endowment Combined ULIPs TOTAL N0. We have already explained all these policies ahead. Thesis.There is no contribution of employers in the decision of one’s investment in life insurance. Q. which are relatively new entrant in the market. Dissertation – projectsparadise. 9 9 7 19 6 50 Projects.com 86 .
Thesis.Term Assurance Whole Life Endowment Combined ULIPs As it is evident from the chart and the table 38% people prefer combination of Whole Life and Endowment product. Q.com 87 . and after that period the risk cover continues and the rest of the amount would be paid when the person dies. for instance 20 years. It gives people double advantage. It is the main theme of this questionnaire. Dissertation – projectsparadise.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC This is the most important question as it reflects the scope of the study. The person would get some amount at the end of the stipulated period. Projects.
So it has fewer customers as compared to LIC. So people had to go to LIC for buying life insurance policy. But after the entry of private players in 2000. Projects. Dissertation – projectsparadise.Prior to 2000 LIC was the only player in the life insurance market and it had the total market. Reliance Life Insurance Company Limited is newly launched company. Now let’s see what people say: Particulars Reliance Life Insurance LIC TOTAL No.com 88 . Thesis. 15 35 50 Reliance Life Insurance LIC As evident from the chart that 30% of people would prefer Reliance Life Insurance while 70% would prefer LIC. some people have also turned to private life insurers. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in today’s environment.
5 30 15 50 Projects. Dissertation – projectsparadise. Thesis.Personal Details: 1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65 Age 18 to 30 31 to 50 51 to 65 TOTAL No.com 89 .
2) Occupation (a) Service (b) Business (c) Profession (d) Housewife (e) Retired Occupation No. Thesis.18 to 30 31 to 50 51 to 65 As evident from the chart that I have taken a sample of 50. Dissertation – projectsparadise. and remaining 30% people are aged between 51 to 65.com 90 . Out of which 10% people are aged between 18 to 30. Projects. 60% people are aged between 31 to 50.
00.000 to 1. 10% are of housewives and remaining 30% are of retired. Dissertation – projectsparadise. 3) Income (a) 50.Service Business Profession Housewife Retired TOTAL 5 15 10 5 15 50 Service Business Profession Housewife Retired As the evident from the chart that out of 50 respondents 10% are of service men.000 (c) More than 5.000 (b) 1.00. Thesis.000 to 5. 30% are of business men.00. 20% are of professions.000 Projects.com 91 .00.
00.000 More than 5.000 to 5.000 to 5.00.000 to 1. 50% are earning between 1.00.00.00.000 More than 5.00.000 to 1.000 TOTAL 50.com 92 .000 and 30% are earning more than 5.000 1.00.000 1.000.Income (Per Annum) No. Thesis. 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects.000 to 5.00.00.000 10 25 15 50 As the evident from the chart out of 50 respondents 20% are earning annually between 50. 50.000 to 1.00.000. Dissertation – projectsparadise.00.00.
2 3 4 More than 4 TOTAL 5 15 20 10 50 2 3 4 More than 4 As the evident from the chart out of 50 respondents 10% have 2 family members.6 SWOT ANALYSIS SWOT analysis is the analysis of the internal and external factors. 30% have 3 family members. 6.com 93 . Now let’s make SWOT analysis for reliance Life Insurance Company Limited.Family Members No. Projects. which have impact on the survival of any organization. Thesis. 40% have 4 family members and remaining 20% have more than 4 family members. Dissertation – projectsparadise.
2) Lack of staff. Dissertation – projectsparadise. 4) Strong liquidity from FII was the major reason for the up move.000 crs worth of securities with RBI by the government. Thesis. Led to an improvement in market securities. financial stability. ▼WEAKNESSES: 1) Newly established company. 10. so people seems it risky. 3) Private placement of Rs.com 94 . 5) Range of products 6) Reliance has a long and strong history of solvency.☻STRENGTHS: 1) Reliance Life Insurance Company Limited is the part of the Reliance Capital. 2) The brand name is enough to sell the products easily. Projects.
the people who used to invest in life insurance for the sole motive of tax benefit may turn to other instruments. CHAPTER – 7 FINANCE DEPARTMENT Projects. 2) Intention of traditional products is to encourage long term. so most of the customers are not aware of the Reliance Life Insurance. Dissertation – projectsparadise. Thesis. regular and disciplined savings to systematically build up a target fund.3) Lack of advertisement. ● THREATS: 1) The main threat is from the other players who have grabbed approximately 15% of the market share.5%.com 95 . 3) The average insurance premium being collected by the company has been growing exponentially year on year. 2) As the government has scrapped the rebate on the life insurance premium. The life insurance penetration in India is approximately 2. So it has large potential. ☼ OPPORTUNITY: 1) There is a vast untapped market in India.
which are as follows: Projects. Thesis.com 96 .FUND PERFORMANCE:- There are four fund options. Dissertation – projectsparadise. which Reliance Life Insurance Company Limited has offered.
1) Capital Secure Fund:This fund is for Reliance Golden Years Plan.75% GOI 2006 Projects.’06) Net Returns during the last 12 months (Apr. Dissertation – projectsparadise.68% GOI 2006 11. Net Returns during last 1 month (Mar.09% 3.69 40.’05-Mar.10% 4.com % of total assets 38.89% Bank Fixed Deposits Asset Name Total Bank Deposit Gilts 6.60 6.36% 1. The net return credited to policyholders and the asset composition ratios are given in the boxes below. 61.’06) Net Returns during the last 3 months (Jan.’06) Net Returns since Inception in Feb’03 (Annualized) 0.4% of the funds were invested in short-term Government Securities (Gilts) and to meet liquidity requirement higher about 40% of funds are kept in short term bank deposits. and Reliance Market Return Plan. In line with the objective of protecting the capital against any erosion.75% GOI 2006 11.96 97 . Thesis.75 13.-Mar.
Bank deposits were maintained only for the purpose of liquidity management. To take advantage of the bullish trend in the equity market.com 2. The asset composition. and Reliance Market Return Plan. Thesis.40 100. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low.00 Asset Allocation:- Gilts Bank Deposits 2) Balanced Fund:This fund is for Reliance Golden Years Plan.’06) Projects. Dissertation – projectsparadise. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund.Total Gilts Total 61. Within the fixed income portfolio. All the bonds in the portfolio are top rated. Net Returns during last 1 month (Mar. allocation to Gilts was higher than corporate bonds.47% 98 . the details of the portfolio and the net returns are disclosed below.
Thesis.’05-Mar.07% 13.-Mar.00 Equity Corporate Bonds & Debentures Gilts Bank Deposits 3) Growth Fund:- Projects. Dissertation – projectsparadise.com 99 .83% 13.Net Returns during the last 3 months (Jan.10% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 20 22 53 5 100.’06) Net Returns since Inception in Feb’03 (Annualized) 4.’06) Net Returns during the last 12 months (Apr.
Net Returns during last 1 month (Mar. the details of the portfolio and the net returns are disclosed below. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. Dissertation – projectsparadise.04% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 9 40 45 6 100.’05-Mar. Thesis.’06) Net Returns during the last 3 months (Jan. To take advantage of the bullish trend in the equity market.99% 24.This fund is for Reliance Golden Years Plan. The asset composition.’06) Net Returns during the last 12 months (Apr.60% 7. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low.com 100 .’06) Net Returns since Inception in Feb’03 (Annualized) 4.-Mar.00 Projects.90% 21. and Reliance Market Return Plan. All the bonds in the portfolio are top rated.
Thesis. Net Returns during last 1 month (Mar. In line with the stated asset allocation pattern and their view of the market. the entire corpus of the fund was invested in equities.02% 64.-Mar. Net returns earned since inception and the full portfolio are disclosed below. Dissertation – projectsparadise.18% 20.83% Projects.’06) Net Returns since Inception in Feb’03 (Annualized) 11.Equity Corporate Bonds & Debentures Gilts Bank Deposits 4) Equity Fund:This fund is for Reliance Market Return Plan.46% 57.com 101 .’05-Mar.’06) Net Returns during the last 12 months (Apr.’06) Net Returns during the last 3 months (Jan.
Thesis.07 100.93 1.Asset Name Equity Mutual Fund/Bank Deposits Total % of Total Asset 98.com . Dissertation – projectsparadise.00 Equity Mutual Fund/Bank Deposits CHAPTER – 8 102 Projects.
After the deep study of insurance sector of India, I can tell that this is the sector, which has most business opportunities perhaps in India.
Projects, Thesis, Dissertation – projectsparadise.com
Insurance industry is one of the fastest sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased. As far as the comparison of Reliance Life Insurance and other players is concerned, there are both positive as well as negative impacts on both the sides. For Reliance Life Insurance, the negative aspect is that its market share is low. For private players the negative aspect is that they have to fight with the public sector giant which is established player with a high brand value. But the positive impact is that the life insurance awareness has increased and the business of Reliance Life Insurance has increased.
BIBLIOGRAPHY AND REFERENCES
Projects, Thesis, Dissertation – projectsparadise.com
www.reliancelife.com www.indiainfoline.com www.bimaonline.com www.google.com
Projects, Thesis, Dissertation – projectsparadise.com
Life Time Magazine of Reliance Life Insurance Net Bios Computer Academy’s Life Insurance Book Broachers of Reliance Life Insurance CHAPTER – 10 ANNEXURE Projects. Thesis.com 106 . Dissertation – projectsparadise.
Dissertation – projectsparadise.Questionnaire Survey by student of R.B.C.M.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover Projects. Thesis.com 107 . On Life Insurance NAME: ___________________________________________ Q.K.
4. Dissertation – projectsparadise.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC Projects.3 How do you decide about investing in life insurance? (a) On my own (b) family decision (c) Employer decides (d) as per the guidance of agent Q.2 Rank the above motives according to your preference MOTIVE OF INVESTMENT TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD Preference 1 2 3 4 Q.(d) Return/Yield Q. Thesis. Which life insurance policy would you prefer to buy? (a) Term Assurance (b) Whole Life (c) Endowment (d) Combination of Whole Life and Endowment (e) Unit Linked Q.com 108 .
Thesis. Dissertation – projectsparadise.com 109 .PERSONAL DETAILS 1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65 2) Occupation (a) Service (b) Business Projects.
00.000 to 1.00.(c) Profession (d) Housewife (e) Retired 3) Income (a) 50.com 110 .000 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects. Dissertation – projectsparadise.000 (b) 1.00. Thesis.000 to 5.000 (c) More than 5.00.
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