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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)
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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
com 7 . as people prefer small fixed liability instead of big uncertain and changing liability.Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a financial device to spread the risks and losses of few people among a large number of people.” The other party called insured pays in exchange a fixed sum known as premium. which may be certain or uncertain. 1. 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. Dissertation – projectsparadise. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. Insurance is a collective bearing of risk. Insurance is desired to safeguard oneself and one’s family against possible losses on account of risks and perils.2 IMPORTANCE OF INSURANCE Projects. Thesis.
So it offers lot of scope for studying the insurance industry. There is lot of potential in the Indian Insurance Industry. Though market share of LIC has been affected. new distribution channels. There are number of other hot topics like penetration of Health Insurance. The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Insurance services play predominant role in the process of financial intermediary. Another major issue is the effects on LIC after the entry of private players in the market. new product ranges. Also the penetration of insurance in Projects. 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. This would lead to more capital inflow by foreign partners. Right now the insurance industry has great opportunities in a country like India or China which huge population. Dissertation – projectsparadise. Thesis. incentive scheme of development officers of LIC etc. it has improved in terms of efficiency. Government may in near future allow 49% FDI in Insurance. insurance brokers’ regulation.Insurance constitutes one of the major segments of the financial market. Today insurance industry is one of the most growing sectors in India. which require study. Rural marketing of insurance.com 8 . There are many issues.
India is very low in both life and non-life segment so there is lot potential to be tapped. 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.com 9 . 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. fire. 1. So first we understand what is insurance? How the word ‘insurance’ is different from the word ‘assurance’? etc. In life insurance. 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. From 1826.3 DIFFERENCE BEETWEN INSURANCE AND ASSURANCE Assurance is older in history and it was used to describe all types of insurances. we have to start with the basics of insurance. Dissertation – projectsparadise. Projects. Thesis. The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance. Before starting the discussion on insurance industry and related issues. etc.
the insured is not entitled to make a profit on his loss.4 PRINCIPLES OF INSURANCE An insurance contract is based on some basic principles of insurance. 1.com . The scope of the word. Thesis.The principle of “indemnity” applies to “insurance contracts”(non-life) only. he shall be fully indemnified only to the extent of loss. the insurer is entitled to recover from a negligent third party any loss payments made to the 10 Projects. Both the parties should disclose all material information regarding the subject matter of 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. (1) Principle of “Uberrima Fides” or Principle of utmost good faith It means “maximum truth”. insurance is wider. Dissertation – projectsparadise. In other words. The insurer before the settlement of the claim may exercise the right. In other words. (2) Principle of indemnity This means that if the insured suffers a loss against which the policy has been made.
Thesis.5 HISTORY OF INSURANCE Projects. The concept of ‘Third Party Claims’ is based on the same principle.insured. (5) Principle of insurable interest The assured must have insurance interest in the life or property insured. 1. (4) Principle of causa proxima The cause of loss must be direct and an insured one in order to claim of compensation. 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. 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. he remains in the same old position.com 11 . Dissertation – projectsparadise.
Dr. Dissertation – projectsparadise. Marine insurance companies came into existence by the end of the eighteenth century. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The early history of insurance in India can be traced back to the Vedas. The Aryans practiced some form of ‘community insurance’ around 1000 BC.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. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. is found in the Rig Veda. the name of Life Insurance Corporation of India’s corporate headquarters. The insurance Projects. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office. Thesis. With a view to providing fire insurance facilities.com 12 . 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. which were later repaid with interest when the goods arrived safely. 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. Life insurance in its modern form came to India from England in 1818. The Sanskrit term ‘Yogakshema’ (meaning well being).
treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. the Bombay Mutual Life Assurance Society. The nationalization of life insurance was followed by general insurance in 1972. This amended insurance Act looked into investments. irregularities and dubious investment practices by scores of companies.1950s there were 154 Indian insurers. The Life Insurance Corporation of India (LIC) was set up in 1956. As a result the government decided to nationalize the life assurance business in India. Dissertation – projectsparadise. The first Indian insurance company. 1.com . 16 foreign insurers. which came into existence between 1818 and 1869. came into existence in 1870 to cover Indian lives at normal rates.6 TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS) 1818 British introduced the life insurance to India with the 13 Projects. and 75 provident societies carrying on life insurance business in India. The Insurance Act. 1938. expenditure and management of these companies.companies. By the mid. Insurance business flourished and so did scams. Thesis. the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business.
Nationalization took place. 1994 Projects. 1870 1912 1938 The Insurance Act was enacted. 1850 Non life insurance started with Triton Insurance Company. Government took over 245 Indian and foreign insurers and provident societies. Malhotra to draw a blue print for insurance sector reforms. General Insurance Corporation (GIC) came into being. Dissertation – projectsparadise. N.com 14 . Thesis.establishment of the Oriental Life Insurance Company . 1956 1972 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. in Calcutta. Bombay Mutual Life Assurance Society is the first India owned life insurer. The Indian Life Assurance Company Act enacted to regulate the life insurance business. Malhotra committee recommended reentry of private players. Non-life business nationalized.
Thesis. insurers start setting non-life claims in the cashless mode. Royal Sundaram was the first non-life private player to sell an insurance policy. Dissertation – projectsparadise. the insured. 2000 IRDA started giving license to private insurers. HDFC were first private players to sell insurance Policies. and the owner of the policy (policyholder).7 MEANING OF LIFE INSURANCE There are three parties in a life insurance transaction: the insurer. 1.com 15 . although the owner and Projects.1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. ICICI Prudential. 2001 2002 Bank allowed to sell insurance plans as TPAs enter the scene.
Thesis. • Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. The primary advantages of whole life are guaranteed death benefits. and a cash value table included in the policy guaranteed by the company.com 16 . A universal life policy includes a cash account. • Permanent life insurance is life insurance that remains in force until the policy matures. • 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. If you want insurance protection only. unless the owner fails to pay the premium when due. Premiums increase the cash account. Projects. and not a savings and investment product.the insured are often the same person. The policy does not accumulate cash value. and mortality and expense charges will not reduce the cash value shown in the policy. buy a term life insurance policy. • Whole life insurance provides for a level premium. guaranteed cash values. Dissertation – projectsparadise. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. fixed and known annual premiums. Another important person involved in a life insurance policy is the beneficiary. Life insurance may be divided into two basic classes – term and permanent.
that as a way of spreading the risk. Such contracts contained three elements: a loan on the vessel. 1. the Code of Hammurabi granted legal status to the practice.naic. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. in China. was so prevalent.If you want to buy a whole life. 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. In another part of the world.org/cis) or your local library for information on the financial soundness of insurance companies. nearly 4. Piracy. Over 5000 years ago. the entire shipment would not be lost. Protecting against risk is what insurance is all about. in the ancient land of Babylonia. in fact.8 HISTORY OF LIFE INSURANCE Risk protection has been a primary goal of humans and institutions throughout history. Thesis. universal life. In effect. In 2100 BC. 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. ship owners were the insured and lenders were the underwriters.com 17 . insurance was seen as a preventative measure against piracy on the sea. or other cash value policy.500 years ago. and a surcharge to cover the possibility of loss. a number of ships would carry a portion of another ship's cargo so that if one ship was captured. Check the National Association of Insurance Commissioners website (www. Projects. cargo. These provided the underpinning for marine insurance contracts. an interest rate. or freight. Dissertation – projectsparadise.
early forms of insurance ebbed with the decline of travel and long-distance trade. flood. Thesis. life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. Modern Insurance Illegal almost everywhere else in Europe. yogakshema. And similar to ancient Rome. Insurance in India can be traced back to the Vedas.. The type of insurance we see today owes it's roots to 17th century England. With Rome's fall.D. But during the 14th to 16th centuries. theft. the name of Life Insurance Corporation of India's corporate headquarters. and even imprisonment. death. commerce. and to protect widows and children. where burial clubs were formed to cover the funeral expenses of its members. burial societies were formed in the Buddhist period to help families build houses. disability. as well as help survivors monetarily. or as they were known then. For instance. Dissertation – projectsparadise.com 18 . The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. Lloyd's Coffee Projects. and insurance would again reemerge. Lloyd's of London. but aspects of it did continue through the Middle Ages. particularly with merchant and artisan guilds. transportation.Life insurance came about a little later in ancient Rome. During the feudal period. is derived from the Rig Veda. around 450 A. most of the concepts of insurance were abandoned. These provided forms of member insurance covering risks like fire.
Insurance moves to America The U. Massachusetts became the first state to require companies by law to maintain such reserves. sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class.” Making wagers on people's deaths ceased in 1774 when parliament forbade the practice. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston. Two years later. ship owners and underwriters met to discuss and transact business deals. Gambling was so rampant.House. SC. in fact. 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.com 19 . on May 22. The Projects. Reacting against such practices. While serving as a means of risk-avoidance. Dissertation – projectsparadise. But it wasn't until 80 years later (after 1840). bets were placed at Lloyd’s on their anticipated dates of death. And the first life insurance policy for the general public in the United States was issued. that when newspapers published names of prominent people who were seriously ill. that life insurance really took off in a big way. in Philadelphia.S. In 1835. Thesis. was the location where merchants. insurance industry was built on the British model. The key to its success was reducing the opposition from religious groups. 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. 1761.
Even today. such fraternal orders continue to provide insurance coverage to members. wherein the risks are spread among several companies. which made it mandatory for a company to insure its employees against industrial accidents. membersonly insurance. In 1897. was devised specifically for such situations. which first made its appearance in the 1880s.great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. the US market developed somewhat differently from that of the United Kingdom. as do most labor organizations. Thesis. With the creation of the automobile. many societies were founded to insure the life and health of their members.com 20 . providing not just life insurance. As America moved from a colonial outpost to an independent force. gained importance and acceptance? More advancement was made to insurance during the process of industrialization. public liability insurance. from a farming country to an Projects. During the 19th century. Dissertation – projectsparadise. land diversity and the overwhelming desire to be independent. the British government passed the Workmen's Compensation Act. Contributing to that was America's size. but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies. while fraternal orders provided low-cost. Many employers sponsor group insurance policies for their employees. The practice of reinsurance. Final Thoughts Even though the American insurance industry was greatly influenced by Britain.
Thesis. 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. 1. 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. Dissertation – projectsparadise.industrial nation. Permanent policies provide a death benefit that is guaranteed for the life of the insured. 4) Cash Value: - Projects. Insurance became more sophisticated. 2) Assignment: If your intention is that your policy monies should go only to a particular person. you need to assign the policy in favor of that person. provided the premiums have been paid and the policy has not been surrendered.com 21 . offering new types of coverage and diversified services for an increasingly complex country.9 KEY FEATURES OF LIFE INSURANCE 1) Nomination: When one makes a nomination. The nominee has only the right to receive the policy monies in case of your death within the term of the policy.
one of which is toward the purchase of additional coverage.The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. 7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. 5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. It equals the amount a policy owner would receive. If one owns a term policy. called paid-up additions. 9) Disability Waiver of Premium Projects. This feature allows the policy owner an easily accessible loan in times of need or opportunity.com 22 . if the policy were surrendered before the insured's death. 6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways. individuals often purchase term life insurance. Thesis. after any applicable surrender charges. Dissertation – projectsparadise. sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability. Either a fixed or variable rate of interest is charged. 8) Conversion from Term to Permanent: When in need of temporary protection.
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. Dissertation – projectsparadise. 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. Projects.com 23 . Thesis. Life Insurance policies thus decrease the total taxable income of an individual.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.
Moreover the cash value can be used as an additional income in the old age.com 24 .oriented sectors the Industry has contributed immensely to the nation's development. Dissertation – projectsparadise. 1. 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.11 ROLE OF LIFE INSURANCE GROWTH OF THE ECONOMY IN THE The Life Insurance Industry has an enviable track record among public sector units.3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies. 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. Thesis. Through investments in the Government sector and socially. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. 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.
com 25 . To protect the country's foreign exchange reserves. Thesis. 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.Housing Finance has done exceedingly well in recent years. CHAPTER-2 INTRODUCTION TO THE COMPANY Projects. Dissertation – projectsparadise.
Thesis. in terms Projects.1 ABOUT RELIANCE LIFE INSURANCE Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd.com 26 . and ranks among the top 3 private sector financial services and banking companies. Reliance Capital is one of India’s leading private sector financial services companies.2. of the Reliance .Anil Dhirubhai Ambani Group. Dissertation – projectsparadise.
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. Thesis. life and general insurance.com .2 HISTORY Reliance Capital Limited announced the launch of its life insurance business on February 1. Dissertation – projectsparadise. 1934. 2. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. proprietary investments. the financial arm of Reliance – Anil Dhirubhai Ambani Group 27 Projects. It was in August 2005 that the ball was set rolling when Reliance Capital Limited. 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. private equity and other activities in financial services.of net worth. Reliance Capital has interests in asset management and mutual funds. 2006. stock broking. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority.
Thesis. The company will issue all policy contracts under the Reliance Life Insurance Company limited name. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact. and the formal transfer of shares took place in October 2005.com 28 .(ADAG) – announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited. Dissertation – projectsparadise. 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.3 JOURNEY SO FAR… 2005 August: Co Ltd. 2006 January 17: ‘Optimising Mr. 2.
Nelson Manickam Road. Nandgopal. 2. February 1: Rliance Life Insurance officially launched. Mumbai. Dissertation – projectsparadise. KV Srinivasan and Mr. Sureshbabu also graced the occasion. February 16. Amitabh Chaturvedi and Mr. March 6: Shifting to the new premises at Churchgate commences. Functional Heads.‘Emerging Bancassurance’ organized by the Asia Insurance Post at the Taj President. Amongst those who participate are the CEO. Regional Managers and Regional Sales Managers. 18: Strategy meet at the Reliance Management Institute. February 26: A Puja held at the Churchgate office situated in Express Building.com 29 .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. at the Trapezium. # 39. Mr. inaugurated by their CEO Mr. 17. Mr. March 7: The new office at Chennai. Thesis. Mumbai. First Floor. COO. Nandgopal. 14 ‘E’ Road. Amitabh Jhunjhunwala. with fail-over capability to their Chennai Data Centre Projects. March 1: Churchgate office inaugurated by Mr. 4th Floor.
within the same business day in occurance if an incident or Disaster happens. Corporate News. which cater services to internal and external queries and complications. and Agent Management System etc. 5) R World: 30 Projects. Under Writing Medical System. 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. Dissertation – projectsparadise. 4) Web Portal: This portal will be an interface between both internal employees and their external users. Some of the functions included in their portal are Policy Tracking Systems. Life-Asia and Internet Applications. Quality Checking System. A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress.com . 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. Thesis. 3) Customer Care Centre: They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai.
6) SMS Alerts: SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns. Thesis. Dissertation – projectsparadise. Customer Alerts will include Welcome/Birthday/Anniversary message. Policy Dispatch Details. Agents/Advisors and Lead Generators. The Agents/Advisors can use this area to service their existing customers. 8) Advisor Lounge: It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches across India.com 31 . 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. Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc. where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. This Lounge will be equipped with desktops and printers with Internet connectivity. Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. 7) Life and Group Asia: Single Life and Group Life details will be captured and managed by Life and Group Asia. 9) Document Management System: Projects. Products. and Policy Services to their existing customers.Reliance Mobile R-World will provide online information about their Company.
com 32 . Travel and Leave Management Systems. This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers. which yields a faster Turn around Time to both internal and external users. Thesis. The aim of the company is to Think Bigger and Think Better. 2. customer care and employee focus. 2. Dissertation – projectsparadise. 11) SAP – ERP Modules: SAP (Finance and HR Modules).DMS will enable both policy issuance and contract servicing through an automated workflow.business results.6 CORE VALUES Reliance Life Insurance Company Limited has some core values which are listed as follows: Projects. will automate the Expense. 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.5 MISSION The mission of Reliance Life Insurance Company Limited is to be the best in every sphere.
It will be launching additional products aimed at providing unparalleled service to its valued clientele.1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun 2. responsive services to the caller and promptly address queries. 2. who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai. collate feedback and suggestions from the caller.8 HEAD – OFFICE Projects. and a pan India presence with 162 branches in the coming year. Dissertation – projectsparadise.7 FUTURE PLANS Forty-four new branches to be opened across the country in the coming months. Thesis. A state-of-the-art customer care centre will provide continuous.com 33 .
The Trapezium. Thesis.Reliance Life Insurance Company Limited. They have around 160 branches in the India. And they have planned to open more branches across the country in the coming months. First Floor.com 34 . Projects. Nelson Manickam Road. Chennai – 600 029.9 BRANCHES They have so many branches and substations in the India. 2. Dissertation – projectsparadise. 39.
CHAPTER – 3 PRODUCT MIX Projects.com 35 . Dissertation – projectsparadise. Thesis.
com . Dissertation – projectsparadise.3. Thesis. Fundamentally the product provide for: Risk cover Investment Health cover 36 Projects.1 TRADITIONAL PLAN:Life insurance products are designed to suit the requirements of customers.
the premiums are calculated and the customer pays accordingly. Dissertation – projectsparadise. Based on the coverage of the product. 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.In every product. 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. In order to suggest the right product. 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. Since Projects. Thesis. and do not wish to save for themselves.com 37 . to a certain degree. it is essential for an agent to understand the requirements of the customer well.
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.A. this is a high-risk plan with a low premium.com 38 . the premium is very low.there is no saving element or bonus provision. Thesis. 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. Dissertation – projectsparadise. 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.
Thesis. This money is payable in equal installments over the last 4 years of the policy term. Dissertation – projectsparadise. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs. a Doctor or specialize in some other field. 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. Features: I.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. 25.com 39 . or is perhaps planning to go abroad. 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.000.
which you will receive at the end of the policy period. It is an inexpensive and easy way to protect you. 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. In a nutshell this plan will keep you financially prepared for all the special occasions in your life .com 40 . Thesis. In the event of your untimely death.by eliminating the burden that a shortage of money creates. your child’s university education or even a new office for your business . Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides.your daughter’s wedding. Dissertation – projectsparadise. Reliance Endowment Plan also gives you the additional benefit of participating in the company’s profits. your family or your business.Reliance Life Insurance’s Reliance Endowment Plan is the key to all your financial needs.
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. 25.d) Minimum sum assured is Rs. 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. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium. half yearly. 5. 25.000 c) Minimum premium paying term is 10 year and maximum 40 year Projects. Features: a) Entry age minimum 12 year and maximum 65 year b) Minimum sum assured is Rs. Dissertation – projectsparadise.000 or as determined by the minimum premium e) Maximum sum assured is Rs.00. Thesis. This plan also participates in the profits.com 41 . are characteristics of the policy.000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual.
The advantage of the policy is that they need not part with a sizable amount of money at any one time. while providing simultaneously. it can be used to meet any immediate financial crisis in the family like your son's college admission. Dissertation – projectsparadise.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. The first installment is paid at the end of the 4th year and thereafter at the end of every 3rd year. Thesis. through regular premium payments. but create. substantial life cover. Features:a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year Projects. your daughter's engagement. a holiday abroad.com 42 . Alternatively. a periodic return of lump sums which become available for reinvestment at higher returns. and renovation of your home or perhaps. The money is payable in installments.
com 43 . Dissertation – projectsparadise. home improvement. 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. Features: a) Loan protection against home.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. Thesis.
Thesis.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.com 44 . disability or critical illnesses. 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. Features: a) Loan protection against home. home improvement. Projects.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. Dissertation – projectsparadise.
a small investor can benefit from investment in a managed fund without making a large financial commitment.) is used to buy units in a unit trust. In this way. Dissertation – projectsparadise. Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans. 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. 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. unit linked policies can go up or down in value. while the balance (after the deduction of costs. etc. Thesis. expenses.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 . As they are linked to the value of shares. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured. 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).
half yearly and monthly Rs. 1000 (for salary deduction only) and Rs. 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. Dissertation – projectsparadise. iv. ii. 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. iii. At the same time your investment premiums provide you with insurance cover. 2500 (standing order/credit card) d) Top up premium minimum Rs. 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.choice. 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. 2500 e) Option of investment fund i.com 46 . quarterly. Thesis.
Dissertation – projectsparadise. life cover. Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment. Reliance Golden Years Plan. Thesis. a flexible pension product is available for all individuals who are between the ages of 18 and 65.000 2) Reliance Golden Years Plan: Reliance Golden Years Plan….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. Features: a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs. 10.. 10. The Reliance Life Insurance ‘no-worry stay happy’retirementplan.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. vesting options such as commuting and annuity options.com 47 . Contributions provide Income tax savings as well.
i.com 48 . Thesis. 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. ii. ii. 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. Dissertation – projectsparadise. iii.
The result is a pool of applicants from which new employees are selected. Dissertation – projectsparadise. The process begins when new recruits are sought and ends when their applications are submitted. Projects.com 49 .4. Thesis.1 RECRUITMENT Recruitment is the process of finding and attracting capable applicants for employment.
In this company the Sales Manager. After clearing the examination the code will be provided to them and the license will also be given to them. Mumbai. They must pass the prerecruitment examination. Dissertation – projectsparadise. the validity the license would be 3 years.S. who recruits the advisors/agents for selling the products of the company. The advisors should have at least passed the S. 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. the person will become an insurance advisor in the company. Projects. it is the process of differentiating between applicants in order to identify these with a greater likelihood of success in a job. Thesis. or any other approved examination body. The Branch Manager.com 50 . In simple words.C. examination. does the recruitment.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. which includes-. 4. After all these requirements. which is conducted by the Insurance Institute of India.
Dissertation – projectsparadise. Projects. In this step.2) Project 40 Interview: After clearing the personal interview. 5) Medical Examination: After that. 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.com 51 . 6) Selection: After clearing all the above steps the applicant should be appointed/selected as a Sales Manager in the company. 4) Negotiation: After clearing the interview with Regional Head. the applicant should be interviewed by the Regional Head. Thesis. the medical check up should e made to the applicant. 3) Interview with Regional Head: After clearing the project 40 interview. who will check his/her performance. the project 40 interview will be taken by the Branch Manager.
5. Manager should possess the 4. guiding.B. They should have at least sales experience of 3 years. Dissertation – projectsparadise. 2.3 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. 6. motivating and in turn getting business out of a team. computed as follows: Projects.A. Thesis. They should have good communication skill. They should have the capability to handle the team.com 52 . They should be an M. The need for training and development is determined by the employee’s performance deficiency. The age of them should be between 25 to 35 years. training. 4. 3. Their job profile includes recruitment.Requirements of Sales Manager:The Sales following things1.
which will identify potential and create avenues for growth. This institute is approved by IDRA to train agents/advisors. The 100 hours training is to be conducted at Net Bios Computer Academy whereas the product training is to be conducted at NIS SPARTA. which enabling free interaction between all levels. They are providing an open environment. Thesis.4 CAREER DEVELOPMENT They are also providing career development plans. 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. information. 4.5 COMMUNICATION Communication is the process through which an individual can exchange their beliefs. The communication is provided in the following manner: Projects. who are newly recruited. things. They are also providing the product training to their advisors and Sales Managers. In simple words. who are newly recruited. Dissertation – projectsparadise. 4. and experience to others.Training & Development = Standard Performance – Actual Performance They are providing 100 hours training to their advisors.com 53 .
Thesis. Dissertation – projectsparadise.Projects.com 54 .
BRANCH BRANCH BRANCH REGIONAL REGIONAL REGIONAL CHANNEL HEAD CMO CEO Projects. Dissertation – projectsparadise. Thesis.com 55 .
4. which are including sales incentives. then to Chief Marketing Officer (CMO). 1) They are providing knowledge sharing and certification practices. then Regional Head to Channel Head. then different Regional Head to Regional Head. They are providing an aggressive reward and recognition plans. 2) They are planned team building and fun events. Dissertation – projectsparadise. Within a branch. associates and their families.6 INCENTIVES Incentives are monetary benefits paid to workmen in recognition of their outstanding performance. Thesis. it flows between Branch Manager to Sales Managers and Sales Managers to Agents/Advisors. and then Branch Head to Regional Head. then to Chief Executive Officer (CEO). 3) They are creating Reliance Life Insurance family. 4.7 SERVICES They are offering following certain services to their employees. Projects. which includes employees.com 56 .Explanations of the diagram:The communication is flow between Branch to Branch.
achievement oriented and challenge loving performance. process related and employee development related initiatives. 4. In addition to this. organization and society all benefit. Projects. customer focused. 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. Dissertation – projectsparadise.4) Reliance Life Insurance in a team building mode and is looking for performance driven. which goals and measure financial.com 57 .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. Thesis. If the performance is best then he/she will be prompted. Performance appraisal is a formal. 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. They are providing a balanced scorecard approach for strategy deployment and performance measurement.
9 ORGANIZATION STRUCTURE CEO CMO Channel Head Regional Head Branch Head SalesCEO Manager Advisors/Agents Customers FORM AND 4. Thesis.com .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.4. Dissertation – projectsparadise.
com 59 . Dissertation – projectsparadise. Thesis.8) Finance CHAPTER – 5 MARKETING DEPARTMENT Projects.
The one type of distribution channel. Thesis. This channel works as follows: Branch Managers Advisors Customers Projects. Ltd is using. 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.5. Independent shops realized that by pooling production and funding a central support office. Dissertation – projectsparadise. which Reliance Life Insurance Co. their emergence may potentially be realignment in the distribution of financial services. Independent agents & insurance producer groups are growing in prevalence. Although producer groups are in their infancy.com 60 . is an agency.1 DISTRIBUTION CHANNEL Reliance Life Insurance Company Limited is using five types of distribution channel. they had increased buying power.
to sell the policy of the company. The interviews revealed that demand is greatest for living trusts among independent advisors. credit life. followed by demand for corporate trustee services.com 61 . and direct marketing insurance. life insurance sales have been slower than one would expect he primary bank insurance activities have been the distribution of annuities. Another type of distribution channel is corporate.. Another type of distribution channel is bank assurance. This channel is tie up with banks. Through these small enterprises. Projects. Banks are failing to incorporate successful sales tactics used to sell other financial services like investments. the advisors will sell the products/policy to customers of the small enterprises. Dissertation – projectsparadise. which are for employee benefits. In this channel the advisors using or targeting the bank customers to make a business with them i. This channel is tie up with corporate or small enterprises.2) Bank Assurance: While a lot of bank relationships with insurance companies have been established. 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. a research was performed with independent advisors across several broker/dealers and custodians. Thesis.e.
which are taken from the customer database. These firms have steadily captured assets. 5) Web World:Direct sales of life insurance are growing rapidly. This channel works as a dealership. Dissertation – projectsparadise. This channel is tie up with customer database. but many of the traditional full-serve players seem to be letting it go.4) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business lost by the banks. In this channel. Insurance companies view full-service brokers as a potentially new distribution channel as well. Thesis.com 62 . are listed in the website. Web sites are starting to pop up offering consumer insurance products especially designed for distribution over the web. Another type of distribution channel is rural benefits. primarily at the expense of the banks. 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. Projects. consumers are expressing a willingness to deal with a variety of providers on the web. Another type of distribution channel is web world. the dealers will sell the policy to the target customers. In this channel. the advisors will sell the policy to the target customers. Across all financial services.
2 PROMOTIONAL TARGET SEGMENT PROGRAMMES & Promotional programmes and target segment are related to each other. Ltd has made three promotional schemes. which are as follows: 1) Shubh – Arambh:This promotional scheme is detailed as follows: SLAB (WRP) ACHIEVERS REWARD Projects.com 63 .e. Thesis. The Reliance Life Insurance Co. Dissertation – projectsparadise.5.. to sell the more policies. The promotional programmes are made to motivate the advisors/agents and sales managers to do more business i.
30.000 75. This programs consists of 1. New Advisor Incentive Program 2.00.E.00.00. Board of Advisors Projects.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 50.000 7. is Reliance Advisor’s Reward Experience.R.:The full form of R.000 10.000 1.000 3.G.00.00.A.000 1.50.19L 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.R.000 SUPER ACHIEVERS 5.000 STAR ACHIEVERS 50.00. Microwave.E.000 1.00.000 75.50.00. Thesis.com 64 .00.A.00.000 15. Maruti Swift Lxi GM Aveo 1. Dissertation – projectsparadise.4LS 2) R.000 20.00.000 2.
Time Period B.A. Qualification period B.E. R.A. Launch Pad B.com 65 .R. Dissertation – projectsparadise. Program Board of Advisors:Criteria There will be two levels in the Board of Advisors program A. RARE Club – Loyalty Program The above programs are described as follows 1.E. Take Off 2. Parameters 3. Thesis. R. Program Discovery Series:Criteria There will be six levels in the Discovery Series program A.E.3. R. Annual Discovery Series 4.R. Business criteria Projects. Program New Advisor Incentives:Criteria There will be two levels in the New Advisor Incentive program A.R. Advisor Career Progression 5.A.
Dissertation – projectsparadise. Business Associate B. Privilege Club:Levels A. The RARE Club will have 6 different levels B. Issuances from 1st Apr ’06 to 15th Apr ‘07 Qualification Criteria 66 Projects. Product Mix C.R. Sales Manager 5.E. Qualification for the National Discovery Series F. The top 150 will bb calculated based on WRP (Weighted Recd Premium) 4. R.E. The qualification period is I. Logins from 1st Apr ’06 to 31st Mar ‘07 II. The qualification criteria will be the same for both the Global and the National Discovery Series D. The criteria for entry into each level will be based on I. Persistency III. Program Advisor Career Progression:Advisor Career Progression A.A. Thesis. R.C. Business (WRP) II.A.R.com . Qualification for the Global Discovery Series E.
Projects.000 50. There is only one public sector company LIC and the rest 14 are private sector.00.3 COMPARATIVE STUDY Presently there are 15 Life insurance companies in the country.000 5.00.com 67 .000 10. Thesis.50.Level Topaz Pearl Sapphire Emerald Ruby Diamond WRP (Rs) 1.000 15. 00. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum. 5.00. who have login the regular premium of Rs. 2.000 25.00. Dissertation – projectsparadise.000 will be eligible for the Elite Club Membership.00.000 Traditional Products 60% 60% 60% 50% 50% 50% Persistency 80% 80% 80% 85% 85% 85% 3) Elite Club Scheme:In this scheme the advisor.
com 68 . The company was registered on 24/11/2000. ICICI Prudential Life Insurance: ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. The company was registered on 23/10/2000.44%. HDFC – Standard: HDFC standard is a 74:26 joint venture between HDFC and Standard Life. The market share for FY 2005-06 was 2. Thesis. Life Insurance Corporation of India (LIC): Life Insurance Corporation of India is a 100% government held Public Sector Company. The market share for FY 200506 was 1. The market share for FY 2005-06 was 71. It is a private sector company. Kotak Mahindra OLD Mutual: - Projects.35%.87%.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.89%. It is a private sector company. It is a private sector company. Being the first to be established LIC is the forerunner in the Life Insurance sector. The company was registered on 31/1/2001. Dissertation – projectsparadise. The market share for FY 2005-06 was 7.
The company was registered on 14/5/2002. Dissertation – projectsparadise.11%.23%. Aviva Life Insurance India: Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. The company was registered on 2/8/2001. Thesis. The company was registered on 10/1/2001. Gujarat Cements (14. It is a private sector company. It is a private sector company. It is a private sector company.Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual. Max New York Life: Max New York Life is a 74:26 joint venture between J & Bank. Enam (9. It is a private sector company. The company was registered on 6/8/2001.87%).79%. The market share for FY 2005-06 was 1. The market share for FY 2005-06 was 1. ING Vysya Life insurance: ING Vysya Life Insurance is joint venture between Exide (50%). Met Life India: - Projects.14%. The market share for FY 2005-06 was 1. Pallonji & Co and MetLife.com 69 .13%) and ING (26 %). The market share for FY 2005-06 is 0.
The market share for FY 2005-06 was 1. The company was registered on 31/3/2001. Pallonji & Co and MetLife.56%. It belongs to the private sector. Sahara India Life Insurance Company Ltd. The company was registered on 3/8/2001. The company was registered on 6/8/2001. The company was registered on 12/2/2001. It is a private sector company. Thesis.: - Projects. The market share for FY 2005-06 was 7.40%. The market share for FY 2005-06 was 2.A. 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.It is a private sector company.Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank. Bajaj Allianz Life Insurance Co.: Bajaj Allianz Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG.com 70 . Dissertation – projectsparadise.31%.29%. The TATA AIG Group: TATA AIG group is a 74:26 JV between Tata Group and AIG.
South Africa. Thesis. 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. Dissertation – projectsparadise.87 71 Projects. No 1 2 3 4 Insurer LIC Bajaj Allianz ICICI Prudential HDFC Standard Market Share (%) 71. The company expects to start operations soon.06 %.35 2.com . 2) Market Share: - Sr.44 7. The market share for FY 2005-06 was 0. The Company commenced operations from 30th October 2004.56 7.First Wholly Indian Owned Private Life Insurance Company.
54 0.79 0.5 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 2.89 1.14 1.4 0.31 1. Thesis.29 1.03 Now let’s depict the market share of these players on diagram Projects.com 72 .23 1.11 0.06 0. Dissertation – projectsparadise.
It has the market share of approximately 7. Among private players Bajaj Allianz stands first. Dissertation – projectsparadise. Rest of the players has market share below 2%. 73 Projects. SBI Life insurance Company Limited comes fourth.com . HDFC Standard comes third.56% in the total market and it constitutes 40% of the market share among private players. 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. ICICI Prudential is also one of the fastest growing life insurance companies in India. Thesis.
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 74 . Dissertation – projectsparadise. Thesis.
com 75 .CHAPTER – 6 RESEARCH METHODOLOGY Projects. Thesis. Dissertation – projectsparadise.
com 76 .1 OBJECTIVES OF STUDY 1) To get some good market exposure by dealing with the prospects face to face. Dissertation – projectsparadise. 2) To improve our ability to sell a financial product like life insurance.6. Projects. Thesis.
direct. Projects. 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. which provide answers that are easier to interpret and tabulate. which are arranged in a logical order.com 77 . Thesis. 6. 4) To get a deep knowledge of the financial product like insurance. I have asked personal questions at last so that respondent does not become defensive. Closed end question include all the possible answers and subjects matters choices among them. Dissertation – projectsparadise. I have used open-end questions so that customers can write answer in their own words.2 QUESTIONNAIRE It is most common instrument whether administered in person by phone or online questionnaires are very flexible. I have also used closed-end questions. I have used simple. I have taken care in the wording and ordering of questions. The form of each question is also important. unbiased wording questions.3) To know the perception of the consumer about life insurance.
com 78 . Primary data: Projects. I have tried to know their performance i.Questionnaire of the customer I have made questionnaire consisting seventeen questions to get customer’s view about life insurance. whether they want to invest. up to what amount and since when. different magazines. Thesis. having been collected for another purpose. I have gathered secondary data and primary data and collected information from the combination of these two data. where thy want to invest. I have asked personal questions at last so that they do not become defensive. Dissertation – projectsparadise. private or public need different types of information are to know its popularity.e. Secondary data: Secondary data consist of information that already exists somewhere. 6. newspapers and libraries.3 SAMPLING METHOD AND SAMPLE SIZE Introduction:Any organization whether big or small. I have gathered secondary data from website of different operators.
Dissertation – projectsparadise. Sample size: I have taken sample size of 50 respondents. I have taken a sample of 50 people.com 79 . I have visited them personally to get data.I have taken great care while collecting primary data to answer that it is relevant. Projects. accurate. so there is some limitation of the human hangs which is reflected in this research. current and unbiased. Because the population is too large so it is difficult to survey. 6. The following are the limitation of this research study. Thesis.4 LIMITATIONS I am a human hang.
But in spite of their limitation I worked with the enthusiasm. but there is lack of expertise. There are some limitations of this study. as the sample size is too small for total population of Ahmedabad city. I tried hard to come at conclusion. And I tried to give the best results to the research of this report. Dissertation – projectsparadise. 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. 3) The attitude of the research might be biased. 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. If I give more time then studies will be more effective. 6.5 ANALYSIS OF QUESTIONNAIRE Here I have formed a questionnaire to study why people go for life insurance.com 80 .1) The sample size of 50 might not represent the perception of whole population. 5) Another limitation is that there is lack of time. Thesis. 2) The opinion expressed by the respondents may be biased.
Dissertation – projectsparadise. I asked the questions to Doctors. Professionals. Target Population:I had conducted this survey among 50 people. and the target group was a mix of people from the society. 6 questions are close ended and one question is an open ended one. Professors. Q.com 81 . Thesis. Analysis:I have used pie charts. Advocates. and some other statistical measures to analyze the questions. Engineers. and general public.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover (d) Return/Yield Projects. Out of these 7 questions.Questions:There are 7 questions in the questionnaire.
Some people consider Tax benefit as the main advantage of life insurance. The main purpose of life insurance is the Risk cover of one’s life.MOTIVE TAX SAVING RISK COVERAGE RETURN/YIELD TOTAL NO. But some people consider different advantages of a life insurance policy. 20 5 23 2 50 There could be any motive of people behind investing in a life insurance policy. Thesis.com 82 . Now let’s see what all people say TAX SAVING RISK COVERAGE RETURN/YIELD Projects. Dissertation – projectsparadise. Some believe that life insurance is an investment so they tend to invest in life insurance. While some people believe that it is a compulsory saving.
Thesis.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. But this is the general conclusion of 50 people. more and more people are turning towards these products so the Investment motive has been gaining command. If we take a larger sample. Dissertation – projectsparadise. Return comes last.Here we can see that majority of the people tend to invest in life insurance for the risk coverage. 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. According to a life insurance expert (Vinod Thakkar ). Saving motive constitutes very small part of the total sample. As the private players have launched ULIPs. Q. we can get a different result. The next preferred option is Tax Saving. life insurance is for protection first then for Savings and Tax benefits all those things. Also the number of those people who wish to invest for return is also increasing.com 83 .
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.com 84 . which is the main theme of life insurance followed by Tax benefit. The third position is of saving and fourth is Return.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. This shows that still people consider other financial tools more viable for return and life insurance is for Tax benefit and risk cover. Dissertation – projectsparadise. Q.
Projects. people would invest. SOURCE ON MY OWN FAMILY DECISION EMPLOYER DECIDES AGENT GUIDANCE TOTAL NO. 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. Dissertation – projectsparadise. 28% persons decides as per the guidance of the agent. Thesis. Also sometimes it depends upon the convincing power of the agent.com 85 . Here one hazardous factor is the moral hazard. People tend to invest in life insurance plans to maintain relations though they are not in need of life insurance.companies so people take help of the life insurance agent and as he guides understanding the needs of the individual.
4.There is no contribution of employers in the decision of one’s investment in life insurance. 9 9 7 19 6 50 Projects. 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. Thesis. Q.com 86 . which are relatively new entrant in the market. We have already explained all these policies ahead. Now let’s find out what people have to say: Type of policy Term Assurance Whole Life Endowment Combined ULIPs TOTAL N0. Dissertation – projectsparadise. The products range from pure Term Assurance Plans to Unit Linked Insurance Plans. 14% people invest in life insurance as per the family decision.
Dissertation – projectsparadise.com 87 . It is the main theme of this questionnaire.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. and after that period the risk cover continues and the rest of the amount would be paid when the person dies. It gives people double advantage. Thesis. for instance 20 years. Q. Projects.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.
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. Reliance Life Insurance Company Limited is newly launched company.Prior to 2000 LIC was the only player in the life insurance market and it had the total market. Projects.com 88 . So it has fewer customers as compared to LIC. Thesis. Dissertation – projectsparadise. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in today’s environment. But after the entry of private players in 2000. So people had to go to LIC for buying life insurance policy. Now let’s see what people say: Particulars Reliance Life Insurance LIC TOTAL No. some people have also turned to private life insurers.
5 30 15 50 Projects. Dissertation – projectsparadise.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. Thesis.com 89 .
18 to 30 31 to 50 51 to 65 As evident from the chart that I have taken a sample of 50.com 90 . and remaining 30% people are aged between 51 to 65. Projects. 60% people are aged between 31 to 50. Thesis. Dissertation – projectsparadise. Out of which 10% people are aged between 18 to 30. 2) Occupation (a) Service (b) Business (c) Profession (d) Housewife (e) Retired Occupation No.
3) Income (a) 50. Thesis.00.000 Projects.000 (c) More than 5. 20% are of professions.00.000 (b) 1.000 to 1.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.com 91 .000 to 5. 10% are of housewives and remaining 30% are of retired.00. 30% are of business men. Dissertation – projectsparadise.00.
000 1.00.00.000 to 1. Dissertation – projectsparadise.000 to 1.000 to 1.000 10 25 15 50 As the evident from the chart out of 50 respondents 20% are earning annually between 50.00.00. 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects.000 More than 5.000. 50% are earning between 1.00.00.000 to 5.00.000.00.00. Thesis.000 to 5. 50.com 92 .000 1.000 and 30% are earning more than 5.000 More than 5.000 to 5.000 TOTAL 50.00.Income (Per Annum) No.00.00.
Dissertation – projectsparadise. 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. 6.6 SWOT ANALYSIS SWOT analysis is the analysis of the internal and external factors. 30% have 3 family members. Projects.Family Members No. 40% have 4 family members and remaining 20% have more than 4 family members. Thesis.com 93 . which have impact on the survival of any organization. Now let’s make SWOT analysis for reliance Life Insurance Company Limited.
▼WEAKNESSES: 1) Newly established company.☻STRENGTHS: 1) Reliance Life Insurance Company Limited is the part of the Reliance Capital. 3) Private placement of Rs. 10. 4) Strong liquidity from FII was the major reason for the up move. Led to an improvement in market securities. so people seems it risky. 2) Lack of staff. Projects. Thesis.com 94 . financial stability.000 crs worth of securities with RBI by the government. Dissertation – projectsparadise. 2) The brand name is enough to sell the products easily. 5) Range of products 6) Reliance has a long and strong history of solvency.
Thesis. The life insurance penetration in India is approximately 2. ● THREATS: 1) The main threat is from the other players who have grabbed approximately 15% of the market share. 2) Intention of traditional products is to encourage long term.com 95 . CHAPTER – 7 FINANCE DEPARTMENT Projects. the people who used to invest in life insurance for the sole motive of tax benefit may turn to other instruments. so most of the customers are not aware of the Reliance Life Insurance.3) Lack of advertisement. So it has large potential. Dissertation – projectsparadise. 3) The average insurance premium being collected by the company has been growing exponentially year on year. ☼ OPPORTUNITY: 1) There is a vast untapped market in India.5%. regular and disciplined savings to systematically build up a target fund. 2) As the government has scrapped the rebate on the life insurance premium.
com 96 . Dissertation – projectsparadise. Thesis. which Reliance Life Insurance Company Limited has offered.FUND PERFORMANCE:- There are four fund options. which are as follows: Projects.
75 13.-Mar. The net return credited to policyholders and the asset composition ratios are given in the boxes below.’06) Net Returns during the last 3 months (Jan.com % of total assets 38.09% 3.’06) Net Returns since Inception in Feb’03 (Annualized) 0.10% 4. 61.68% GOI 2006 11.’05-Mar.’06) Net Returns during the last 12 months (Apr.1) Capital Secure Fund:This fund is for Reliance Golden Years Plan.89% Bank Fixed Deposits Asset Name Total Bank Deposit Gilts 6.69 40. In line with the objective of protecting the capital against any erosion. Dissertation – projectsparadise.60 6. Thesis. Net Returns during last 1 month (Mar. and Reliance Market Return Plan.75% GOI 2006 Projects.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.96 97 .75% GOI 2006 11.36% 1.
Thesis. Bank deposits were maintained only for the purpose of liquidity management. Net Returns during last 1 month (Mar.’06) Projects. allocation to Gilts was higher than corporate bonds.com 2. Dissertation – projectsparadise. To take advantage of the bullish trend in the equity market.Total Gilts Total 61. and Reliance Market Return Plan.00 Asset Allocation:- Gilts Bank Deposits 2) Balanced Fund:This fund is for Reliance Golden Years Plan. All the bonds in the portfolio are top rated.40 100.47% 98 . To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. The asset composition. Within the fixed income portfolio. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. the details of the portfolio and the net returns are disclosed below.
Thesis.’05-Mar.com 99 .07% 13.’06) Net Returns since Inception in Feb’03 (Annualized) 4.10% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 20 22 53 5 100.83% 13. Dissertation – projectsparadise.00 Equity Corporate Bonds & Debentures Gilts Bank Deposits 3) Growth Fund:- Projects.Net Returns during the last 3 months (Jan.-Mar.’06) Net Returns during the last 12 months (Apr.
’06) Net Returns during the last 3 months (Jan. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. Net Returns during last 1 month (Mar.This fund is for Reliance Golden Years Plan.90% 21.04% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 9 40 45 6 100. To take advantage of the bullish trend in the equity market. The asset composition.-Mar.’06) Net Returns during the last 12 months (Apr.99% 24. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. All the bonds in the portfolio are top rated.00 Projects. Dissertation – projectsparadise. the details of the portfolio and the net returns are disclosed below.60% 7. Thesis. and Reliance Market Return Plan.com 100 .’06) Net Returns since Inception in Feb’03 (Annualized) 4.’05-Mar.
the entire corpus of the fund was invested in equities.18% 20. In line with the stated asset allocation pattern and their view of the market. Net returns earned since inception and the full portfolio are disclosed below. Thesis.02% 64.-Mar.’05-Mar.’06) Net Returns during the last 12 months (Apr.83% Projects.Equity Corporate Bonds & Debentures Gilts Bank Deposits 4) Equity Fund:This fund is for Reliance Market Return Plan.com 101 .46% 57. Dissertation – projectsparadise.’06) Net Returns since Inception in Feb’03 (Annualized) 11.’06) Net Returns during the last 3 months (Jan. Net Returns during last 1 month (Mar.
07 100. Thesis.Asset Name Equity Mutual Fund/Bank Deposits Total % of Total Asset 98.00 Equity Mutual Fund/Bank Deposits CHAPTER – 8 102 Projects. Dissertation – projectsparadise.93 1.com .
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.com 106 . Dissertation – projectsparadise. Thesis.
Questionnaire Survey by student of R. Thesis.C.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover Projects. Dissertation – projectsparadise.B.com 107 .M. On Life Insurance NAME: ___________________________________________ Q.K.
Dissertation – projectsparadise.4.com 108 .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. 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. Thesis.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.com 109 . Dissertation – projectsparadise.PERSONAL DETAILS 1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65 2) Occupation (a) Service (b) Business Projects.
000 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects.000 to 1.000 to 5.00.(c) Profession (d) Housewife (e) Retired 3) Income (a) 50.com 110 . Thesis. Dissertation – projectsparadise.000 (c) More than 5.000 (b) 1.00.00.00.
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