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Project Report On

RELIANCE LIFE INSURANCE COMPANY LIMITED

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Partial fulfillment of the requirements of two years full time Master of Business Management (MBA)

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CONTENTS
Preface--------------------------------------------------- (3) Certificate------------------------------------------------ (4) Acknowledgement-------------------------------------- (5) Executive Summary------------------------------------- (6) Index----------------------------------------------------- (7)

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EXECUTIVE SUMMARY

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!

INDEX

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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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CHAPTER-1 INSURANCE INDUSTRY

1.1 MEANING OF INSURANCE

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com 7 . Dissertation – projectsparadise. which may be certain or uncertain. Insurance is a financial device to spread the risks and losses of few people among a large number of people. Insurance is a collective bearing of risk.Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is desired to safeguard oneself and one’s family against possible losses on account of risks and perils. Thesis.2 IMPORTANCE OF INSURANCE Projects. 1. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. as people prefer small fixed liability instead of big uncertain and changing liability.” The other party called insured pays in exchange a fixed sum known as premium. 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.

Also the penetration of insurance in Projects. Right now the insurance industry has great opportunities in a country like India or China which huge population. The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Though market share of LIC has been affected. Rural marketing of insurance. Another major issue is the effects on LIC after the entry of private players in the market. 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.Insurance constitutes one of the major segments of the financial market. There are many issues. There is lot of potential in the Indian Insurance Industry. new product ranges. Government may in near future allow 49% FDI in Insurance. new distribution channels. Dissertation – projectsparadise.com 8 . incentive scheme of development officers of LIC etc. which require study. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. Thesis. So it offers lot of scope for studying the insurance industry. insurance brokers’ regulation. it has improved in terms of efficiency. There are number of other hot topics like penetration of Health Insurance.

we have to start with the basics of insurance. 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. there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. Dissertation – projectsparadise. fire. 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. The word assurance indicated certainty. From 1826.3 DIFFERENCE BEETWEN INSURANCE AND ASSURANCE Assurance is older in history and it was used to describe all types of insurances. So first we understand what is insurance? How the word ‘insurance’ is different from the word ‘assurance’? etc. 1.com 9 . 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. In life insurance. Before starting the discussion on insurance industry and related issues.India is very low in both life and non-life segment so there is lot potential to be tapped. Projects.

Thesis. 1. the insurer is entitled to recover from a negligent third party any loss payments made to the 10 Projects. (2) Principle of indemnity This means that if the insured suffers a loss against which the policy has been made. 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. he shall be fully indemnified only to the extent of loss. insurance is wider.4 PRINCIPLES OF INSURANCE An insurance contract is based on some basic principles of insurance. The scope of the word.The principle of “indemnity” applies to “insurance contracts”(non-life) only. the insured is not entitled to make a profit on his loss. The insurer before the settlement of the claim may exercise the right. In other words. Dissertation – projectsparadise. In other words. (1) Principle of “Uberrima Fides” or Principle of utmost good faith It means “maximum truth”.com .

he remains in the same old position.com 11 . Thesis. 1. (5) Principle of insurable interest The assured must have insurance interest in the life or property insured.insured.5 HISTORY OF INSURANCE Projects. 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. The concept of ‘Third Party Claims’ is based on the same principle. Dissertation – projectsparadise. (4) Principle of causa proxima The cause of loss must be direct and an insured one in order to claim of compensation.

Life insurance in its modern form came to India from England in 1818.com 12 . With a view to providing fire insurance facilities. These companies were empowered to write fire and life insurance as well as marine. Marine insurance companies came into existence by the end of the eighteenth century.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. The Great Fire of London in 1966 caused huge loss of property and life. is found in the Rig Veda. The Aryans practiced some form of ‘community insurance’ around 1000 BC. The insurance Projects. Dr. 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. Thesis. The Sanskrit term ‘Yogakshema’ (meaning well being). which were later repaid with interest when the goods arrived safely. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office. The early history of insurance in India can be traced back to the Vedas. the name of Life Insurance Corporation of India’s corporate headquarters. 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. Dissertation – projectsparadise.

Dissertation – projectsparadise. The Life Insurance Corporation of India (LIC) was set up in 1956. Thesis.com . This amended insurance Act looked into investments. The nationalization of life insurance was followed by general insurance in 1972. expenditure and management of these companies. which came into existence between 1818 and 1869. treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. came into existence in 1870 to cover Indian lives at normal rates. the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. The first Indian insurance company.companies. the Bombay Mutual Life Assurance Society. By the mid. Insurance business flourished and so did scams.6 TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS) 1818 British introduced the life insurance to India with the 13 Projects. 1. and 75 provident societies carrying on life insurance business in India. 1938. The Insurance Act. irregularities and dubious investment practices by scores of companies. 16 foreign insurers. As a result the government decided to nationalize the life assurance business in India.1950s there were 154 Indian insurers.

The Indian Life Assurance Company Act enacted to regulate the life insurance business. General Insurance Corporation (GIC) came into being. Bombay Mutual Life Assurance Society is the first India owned life insurer.establishment of the Oriental Life Insurance Company . 1850 Non life insurance started with Triton Insurance Company. Malhotra to draw a blue print for insurance sector reforms. in Calcutta. Nationalization took place. 1870 1912 1938 The Insurance Act was enacted.com 14 . 1994 Projects. Government took over 245 Indian and foreign insurers and provident societies. Non-life business nationalized. Malhotra committee recommended reentry of private players. 1956 1972 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. Dissertation – projectsparadise. Thesis. N.

Royal Sundaram was the first non-life private player to sell an insurance policy. 1.com 15 . Thesis. insurers start setting non-life claims in the cashless mode. 2001 2002 Bank allowed to sell insurance plans as TPAs enter the scene. although the owner and Projects. Dissertation – projectsparadise. 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. 2000 IRDA started giving license to private insurers.7 MEANING OF LIFE INSURANCE There are three parties in a life insurance transaction: the insurer. the insured. ICICI Prudential. HDFC were first private players to sell insurance Policies.

If you want insurance protection only. • Permanent life insurance is life insurance that remains in force until the policy matures. Projects. The policy does not accumulate cash value. • Term life insurance provides for life insurance coverage for a specified term of years for a specified premium.the insured are often the same person. and not a savings and investment product. Life insurance may be divided into two basic classes – term and permanent. Dissertation – projectsparadise.com 16 . guaranteed cash values. and a cash value table included in the policy guaranteed by the company. Thesis. • 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. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. • Whole life insurance provides for a level premium. and mortality and expense charges will not reduce the cash value shown in the policy. buy a term life insurance policy. Another important person involved in a life insurance policy is the beneficiary. A universal life policy includes a cash account. fixed and known annual premiums. The primary advantages of whole life are guaranteed death benefits. Premiums increase the cash account. unless the owner fails to pay the premium when due.

insurance was seen as a preventative measure against piracy on the sea. cargo. or other cash value policy. ship owners were the insured and lenders were the underwriters. 1. universal life. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. that as a way of spreading the risk. a number of ships would carry a portion of another ship's cargo so that if one ship was captured.8 HISTORY OF LIFE INSURANCE Risk protection has been a primary goal of humans and institutions throughout history. the entire shipment would not be lost. Dissertation – projectsparadise.com 17 .500 years ago. 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.If you want to buy a whole life. was so prevalent. in fact. in China. Over 5000 years ago. plan to hold it for at least 15 years. nearly 4.org/cis) or your local library for information on the financial soundness of insurance companies. an interest rate. Canceling these policies after only a few years can more than double your life insurance costs. Check the National Association of Insurance Commissioners website (www. the Code of Hammurabi granted legal status to the practice. In 2100 BC. In effect. Piracy. In another part of the world.naic. Thesis. in the ancient land of Babylonia. or freight. These provided the underpinning for marine insurance contracts. Such contracts contained three elements: a loan on the vessel. Protecting against risk is what insurance is all about. and a surcharge to cover the possibility of loss.

transportation. life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. For instance. most of the concepts of insurance were abandoned. But during the 14th to 16th centuries. Lloyd's Coffee Projects.Life insurance came about a little later in ancient Rome.com 18 . During the feudal period.D. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. flood. particularly with merchant and artisan guilds. as well as help survivors monetarily. With Rome's fall. 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. or as they were known then. but aspects of it did continue through the Middle Ages. Dissertation – projectsparadise. And similar to ancient Rome. Thesis. is derived from the Rig Veda. commerce. death. and insurance would again reemerge. early forms of insurance ebbed with the decline of travel and long-distance trade. and even imprisonment. around 450 A. and to protect widows and children. The type of insurance we see today owes it's roots to 17th century England. Insurance in India can be traced back to the Vedas.. yogakshema. disability. theft. These provided forms of member insurance covering risks like fire. Lloyd's of London. the name of Life Insurance Corporation of India's corporate headquarters. Modern Insurance Illegal almost everywhere else in Europe.

The key to its success was reducing the opposition from religious groups.House.S. in Philadelphia. ship owners and underwriters met to discuss and transact business deals. Two years later. SC. Insurance moves to America The U. In 1835. that when newspapers published names of prominent people who were seriously ill. Thesis. The Projects. Dissertation – projectsparadise.” Making wagers on people's deaths ceased in 1774 when parliament forbade the practice. 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. was the location where merchants. Massachusetts became the first state to require companies by law to maintain such reserves. that life insurance really took off in a big way. life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. The Presbyterian Synod of Philadelphia in 1759. sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. And the first life insurance policy for the general public in the United States was issued. on May 22. the infamous New York fire drew people's attention to the need to provide for sudden and large losses.com 19 . in fact. While serving as a means of risk-avoidance. bets were placed at Lloyd’s on their anticipated dates of death. But it wasn't until 80 years later (after 1840). Gambling was so rampant. 1761. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston. Reacting against such practices. insurance industry was built on the British model.

great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. such fraternal orders continue to provide insurance coverage to members. With the creation of the automobile. Dissertation – projectsparadise. which made it mandatory for a company to insure its employees against industrial accidents. the US market developed somewhat differently from that of the United Kingdom. was devised specifically for such situations. many societies were founded to insure the life and health of their members. Many employers sponsor group insurance policies for their employees. membersonly insurance. gained importance and acceptance? More advancement was made to insurance during the process of industrialization. which first made its appearance in the 1880s. land diversity and the overwhelming desire to be independent. but sickness and accident benefits and old-age pensions.com 20 . Final Thoughts Even though the American insurance industry was greatly influenced by Britain. from a farming country to an Projects. wherein the risks are spread among several companies. During the 19th century. while fraternal orders provided low-cost. public liability insurance. Employees contribute a certain percentage of the premium for these policies. as do most labor organizations. In 1897. Thesis. The practice of reinsurance. the British government passed the Workmen's Compensation Act. As America moved from a colonial outpost to an independent force. Even today. Contributing to that was America's size. providing not just life insurance.

2) Assignment: If your intention is that your policy monies should go only to a particular person. 1. offering new types of coverage and diversified services for an increasingly complex country. the insurance business developed from a small number of companies to a large industry.industrial nation. 3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. provided the premiums have been paid and the policy has not been surrendered. Permanent policies provide a death benefit that is guaranteed for the life of the insured. you need to assign the policy in favor of that person. Insurance became more sophisticated. 4) Cash Value: - Projects.9 KEY FEATURES OF LIFE INSURANCE 1) Nomination: When one makes a nomination.com 21 . 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. The nominee has only the right to receive the policy monies in case of your death within the term of the policy. Dissertation – projectsparadise. Thesis.

Either a fixed or variable rate of interest is charged. one of which is toward the purchase of additional coverage. if the policy were surrendered before the insured's death. 7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. individuals often purchase term life insurance. 8) Conversion from Term to Permanent: When in need of temporary protection. 9) Disability Waiver of Premium Projects. This feature allows the policy owner an easily accessible loan in times of need or opportunity. sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability. Dissertation – projectsparadise. Thesis. 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.com 22 . called paid-up additions. If one owns a term policy. 6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways.The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. after any applicable surrender charges.

Life Insurance policies thus decrease the total taxable income of an individual. Projects.com 23 . Dissertation – projectsparadise. 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. It guarantees that coverage will stay in force and continue to grow 1. Thesis.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.Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost.

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. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. Thesis. Dissertation – projectsparadise. 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. 1. Moreover the cash value can be used as an additional income in the old age.11 ROLE OF LIFE INSURANCE GROWTH OF THE ECONOMY IN THE The Life Insurance Industry has an enviable track record among public sector units.com 24 . Through investments in the Government sector and socially. The industry is recognized as one of the largest financial Institutions in the country.oriented sectors the Industry has contributed immensely to the nation's development. Projects. The ventures initiated by the industry in the areas of Mutual Fund.3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies.

CHAPTER-2 INTRODUCTION TO THE COMPANY Projects. Dissertation – projectsparadise. Thesis. To protect the country's foreign exchange reserves.Housing Finance has done exceedingly well in recent years. 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.com 25 .

2. Thesis. Reliance Capital is one of India’s leading private sector financial services companies.Anil Dhirubhai Ambani Group. Dissertation – projectsparadise. of the Reliance . and ranks among the top 3 private sector financial services and banking companies. in terms Projects.1 ABOUT RELIANCE LIFE INSURANCE Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd.com 26 .

Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. It was in August 2005 that the ball was set rolling when Reliance Capital Limited.of net worth. Dissertation – projectsparadise. 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.2 HISTORY Reliance Capital Limited announced the launch of its life insurance business on February 1. Reliance Capital has interests in asset management and mutual funds. 2. life and general insurance. 2006. 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. stock broking.com . proprietary investments. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. 1934. Thesis. the financial arm of Reliance – Anil Dhirubhai Ambani Group 27 Projects.

2. Dissertation – projectsparadise. The company will issue all policy contracts under the Reliance Life Insurance Company limited name. Thesis.(ADAG) – announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited.com 28 . 2006 January 17: ‘Optimising Mr. and the formal transfer of shares took place in October 2005.3 JOURNEY SO FAR… 2005 August: Co Ltd. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact. 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.

First Floor.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. February 16. with fail-over capability to their Chennai Data Centre Projects. 4th Floor. Amitabh Jhunjhunwala. inaugurated by their CEO Mr.com 29 . Mr. Nandgopal. Regional Managers and Regional Sales Managers. 17. Mr. March 6: Shifting to the new premises at Churchgate commences.‘Emerging Bancassurance’ organized by the Asia Insurance Post at the Taj President. February 1: Rliance Life Insurance officially launched. Sureshbabu also graced the occasion. Mumbai. Amongst those who participate are the CEO. 2. COO. March 7: The new office at Chennai. Amitabh Chaturvedi and Mr. Mumbai. KV Srinivasan and Mr. at the Trapezium. 14 ‘E’ Road. # 39. Nandgopal. Dissertation – projectsparadise. Functional Heads. February 26: A Puja held at the Churchgate office situated in Express Building. Nelson Manickam Road. Thesis. 18: Strategy meet at the Reliance Management Institute. March 1: Churchgate office inaugurated by Mr.

Some of the functions included in their portal are Policy Tracking Systems. Corporate News.com . and Agent Management System etc. which cater services to internal and external queries and complications. Dissertation – projectsparadise. Thesis. 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. Under Writing Medical System. Life-Asia and Internet Applications. 4) Web Portal: This portal will be an interface between both internal employees and their external users. 5) R World: 30 Projects. Quality Checking System.within the same business day in occurance if an incident or Disaster happens. 3) Customer Care Centre: They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai. 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.

and Policy Services to their existing customers. where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. Customer Alerts will include Welcome/Birthday/Anniversary message. 6) SMS Alerts: SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns. 9) Document Management System: Projects. 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.Reliance Mobile R-World will provide online information about their Company. This Lounge will be equipped with desktops and printers with Internet connectivity. Dissertation – projectsparadise. 8) Advisor Lounge: It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches across India. 7) Life and Group Asia: Single Life and Group Life details will be captured and managed by Life and Group Asia. Policy Dispatch Details. Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. Agents/Advisors and Lead Generators. Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc. Thesis. Products. The Agents/Advisors can use this area to service their existing customers.com 31 .

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. will automate the Expense.com 32 .business results. Dissertation – projectsparadise. Travel and Leave Management Systems. 11) SAP – ERP Modules: SAP (Finance and HR Modules). which yields a faster Turn around Time to both internal and external users. 2. customer care and employee focus. Thesis.DMS will enable both policy issuance and contract servicing through an automated workflow.6 CORE VALUES Reliance Life Insurance Company Limited has some core values which are listed as follows: Projects.5 MISSION The mission of Reliance Life Insurance Company Limited is to be the best in every sphere. This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers. The aim of the company is to Think Bigger and Think Better. 2.

It will be launching additional products aimed at providing unparalleled service to its valued clientele.8 HEAD – OFFICE Projects. who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai. A state-of-the-art customer care centre will provide continuous. 2. Thesis.1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun 2.com 33 . and a pan India presence with 162 branches in the coming year. responsive services to the caller and promptly address queries. Dissertation – projectsparadise. collate feedback and suggestions from the caller.7 FUTURE PLANS Forty-four new branches to be opened across the country in the coming months.

Projects. 39. They have around 160 branches in the India.com 34 . Dissertation – projectsparadise. And they have planned to open more branches across the country in the coming months.9 BRANCHES They have so many branches and substations in the India. Chennai – 600 029. 2.Reliance Life Insurance Company Limited. Thesis. First Floor. The Trapezium. Nelson Manickam Road.

com 35 .CHAPTER – 3 PRODUCT MIX Projects. Dissertation – projectsparadise. Thesis.

Dissertation – projectsparadise. Thesis.com .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.3.

Thesis. and do not wish to save for themselves. 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.com 37 . Dissertation – projectsparadise. 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. Reliance Life Insurance Company Limited has offered 9 traditional plans to the customers. to a certain degree. it is essential for an agent to understand the requirements of the customer well.In every product. the premiums are calculated and the customer pays accordingly. Based on the coverage of the product. risk cover is imperative for it to fall under the category of insurance. Since Projects. In order to suggest the right product.

com 38 . 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) 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. the premium is very low. this is a high-risk plan with a low premium.there is no saving element or bonus provision.A. Thesis. Hence. 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. Dissertation – projectsparadise.

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.com 39 . or is perhaps planning to go abroad. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs. This money is payable in equal installments over the last 4 years of the policy term. 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. 25. a Doctor or specialize in some other field. Features: I. Dissertation – projectsparadise.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. Thesis.000.

which you will receive at the end of the policy period.by eliminating the burden that a shortage of money creates. Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides. your child’s university education or even a new office for your business . Dissertation – projectsparadise. 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. It is an inexpensive and easy way to protect you.Reliance Life Insurance’s Reliance Endowment Plan is the key to all your financial needs. your family or your business. Reliance Endowment Plan also gives you the additional benefit of participating in the company’s profits. In the event of your untimely death.your daughter’s wedding. In a nutshell this plan will keep you financially prepared for all the special occasions in your life . Thesis.com 40 .

00. 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. 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. half yearly.000 or as determined by the minimum premium e) Maximum sum assured is Rs. 25. Thesis.d) Minimum sum assured is Rs.com 41 . Dissertation – projectsparadise.000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual. 25. are characteristics of the policy. This plan also participates in the profits. 5. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium.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.

The advantage of the policy is that they need not part with a sizable amount of money at any one time. a holiday abroad. Features:a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year Projects. Thesis. Alternatively. through regular premium payments. The first installment is paid at the end of the 4th year and thereafter at the end of every 3rd year. but create. your daughter's engagement. substantial life cover. while providing simultaneously.com 42 . and renovation of your home or perhaps. The money is payable in installments. Dissertation – projectsparadise. it can be used to meet any immediate financial crisis in the family like your son's college admission.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. a periodic return of lump sums which become available for reinvestment at higher returns.

Features: a) Loan protection against home. Dissertation – projectsparadise. home improvement. Thesis.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 . 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.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. 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. disability or critical illnesses.com 44 . home improvement.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. Projects.

In this way. As they are linked to the value of shares. Dissertation – projectsparadise. 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).Each premium paid by the insured person is split: a part is used to provide life assurance cover.) is used to buy units in a unit trust. Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans. etc. expenses. A small part of the contribution is used for providing life cover and the balance is invested in unit. while the balance (after the deduction of costs. 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. Thesis. unit linked policies can go up or down in value. a small investor can benefit from investment in a managed fund without making a large financial commitment. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured.com 45 . 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.

choice. Dissertation – projectsparadise. half yearly and monthly 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. Thesis. 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. iv. quarterly. 1000 (for salary deduction only) and Rs. 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. iii.com 46 . At the same time your investment premiums provide you with insurance cover. 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. ii. 2500 (standing order/credit card) d) Top up premium minimum Rs. 2500 e) Option of investment fund i.

vesting options such as commuting and annuity options. Contributions provide Income tax savings as well. The Reliance Life Insurance ‘no-worry stay happy’retirementplan. Thesis.com 47 . 10. 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. 10.000 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.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. Dissertation – projectsparadise. a flexible pension product is available for all individuals who are between the ages of 18 and 65. Features: a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs.000 2) Reliance Golden Years Plan: Reliance Golden Years Plan….

Thesis.i. 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. ii. ii. iii.com 48 . 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. Dissertation – projectsparadise.

4. Dissertation – projectsparadise. The result is a pool of applicants from which new employees are selected.com 49 . The process begins when new recruits are sought and ends when their applications are submitted. Projects.1 RECRUITMENT Recruitment is the process of finding and attracting capable applicants for employment. Thesis.

does the recruitment. 4. After clearing the examination the code will be provided to them and the license will also be given to them. Projects. After all these requirements.In this company the Sales Manager. The Branch Manager. the validity the license would be 3 years. which includes-.S. examination. who recruits the advisors/agents for selling the products of the company. Dissertation – projectsparadise. In simple words. Mumbai. Thesis. or any other approved examination body. 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. it is the process of differentiating between applicants in order to identify these with a greater likelihood of success in a job. They must pass the prerecruitment examination.com 50 . the person will become an insurance advisor in the company.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. The advisors should have at least passed the S. which is conducted by the Insurance Institute of India.C.

4) Negotiation: After clearing the interview with Regional Head.com 51 . the medical check up should e made to the applicant. Projects. the applicant should be interviewed by the Regional Head. Thesis. the project 40 interview will be taken by the Branch Manager. the applicant should have to make a list of 40 and then start the business with them. 6) Selection: After clearing all the above steps the applicant should be appointed/selected as a Sales Manager in the company. who will check his/her performance. In this step. 5) Medical Examination: After that. Dissertation – projectsparadise. 3) Interview with Regional Head: After clearing the project 40 interview. the negotiation will be provided to the applicant.2) Project 40 Interview: After clearing the personal interview.

5. 6.B.Requirements of Sales Manager:The Sales following things1. Their job profile includes recruitment.A. They should be an M. guiding. The need for training and development is determined by the employee’s performance deficiency. They should have good communication skill. The age of them should be between 25 to 35 years. motivating and in turn getting business out of a team. 4.3 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. They should have the capability to handle the team. They should have at least sales experience of 3 years. Thesis.com 52 . 2. 3. computed as follows: Projects. Manager should possess the 4. training. Dissertation – projectsparadise.

4 CAREER DEVELOPMENT They are also providing career development plans. 4. information. 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. The 100 hours training is to be conducted at Net Bios Computer Academy whereas the product training is to be conducted at NIS SPARTA. Dissertation – projectsparadise. and experience to others. This institute is approved by IDRA to train agents/advisors. They are providing an open environment. The communication is provided in the following manner: Projects. who are newly recruited. which enabling free interaction between all levels. Thesis. who are newly recruited. They are also providing the product training to their advisors and Sales Managers. it is the process of exchanging the information from one person to another.Training & Development = Standard Performance – Actual Performance They are providing 100 hours training to their advisors. things. In simple words.com 53 .5 COMMUNICATION Communication is the process through which an individual can exchange their beliefs. 4.

Dissertation – projectsparadise. Thesis.com 54 .Projects.

Thesis.com 55 .BRANCH BRANCH BRANCH REGIONAL REGIONAL REGIONAL CHANNEL HEAD CMO CEO Projects. Dissertation – projectsparadise.

which includes employees. 4. They are providing an aggressive reward and recognition plans. Dissertation – projectsparadise. then different Regional Head to Regional Head. which are including sales incentives.6 INCENTIVES Incentives are monetary benefits paid to workmen in recognition of their outstanding performance. 3) They are creating Reliance Life Insurance family. then to Chief Executive Officer (CEO). and then Branch Head to Regional Head. then to Chief Marketing Officer (CMO). 1) They are providing knowledge sharing and certification practices. 2) They are planned team building and fun events.com 56 . associates and their families. it flows between Branch Manager to Sales Managers and Sales Managers to Agents/Advisors.Explanations of the diagram:The communication is flow between Branch to Branch. Within a branch. 4. Thesis. Projects. then Regional Head to Channel Head.7 SERVICES They are offering following certain services to their employees.

Projects. customer focused. organization and society all benefit.com 57 . If the performance is best then he/she will be prompted. Dissertation – projectsparadise. 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.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. In addition to this. Thesis. 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. achievement oriented and challenge loving performance. process related and employee development related initiatives.4) Reliance Life Insurance in a team building mode and is looking for performance driven. Performance appraisal is a formal. which goals and measure financial. 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.com .9 ORGANIZATION STRUCTURE CEO CMO Channel Head Regional Head Branch Head SalesCEO Manager Advisors/Agents Customers FORM AND 4. Dissertation – projectsparadise.

Dissertation – projectsparadise. Thesis.8) Finance CHAPTER – 5 MARKETING DEPARTMENT Projects.com 59 .

is an agency.5. they had increased buying power. Dissertation – projectsparadise. The one type of distribution channel. This channel works as follows: Branch Managers Advisors Customers Projects. Thesis. which Reliance Life Insurance Co. Independent shops realized that by pooling production and funding a central support office. 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.com 60 .1 DISTRIBUTION CHANNEL Reliance Life Insurance Company Limited is using five types of distribution channel. their emergence may potentially be realignment in the distribution of financial services. Although producer groups are in their infancy. Independent agents & insurance producer groups are growing in prevalence.

This channel is tie up with banks. Dissertation – projectsparadise. Through these small enterprises. Projects. 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. which are for employee benefits.e. This channel is tie up with corporate or small enterprises. The interviews revealed that demand is greatest for living trusts among independent advisors. and direct marketing insurance. Thesis. Banks are failing to incorporate successful sales tactics used to sell other financial services like investments. 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. credit life. followed by demand for corporate trustee services. In this channel the advisors using or targeting the bank customers to make a business with them i. Another type of distribution channel is bank assurance. to sell the policy of the company.com 61 .2) Bank Assurance: While a lot of bank relationships with insurance companies have been established. the advisors will sell the products/policy to customers of the small enterprises.. a research was performed with independent advisors across several broker/dealers and custodians.

This channel works as a dealership.com 62 . In this channel. the advisors will sell the policy to the target customers. Web sites are starting to pop up offering consumer insurance products especially designed for distribution over the web. In this channel. the dealers will sell the policy to the target customers. 5) Web World:Direct sales of life insurance are growing rapidly. 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. which are taken from the customer database.4) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business lost by the banks. Dissertation – projectsparadise. This channel is tie up with customer database. are listed in the website. Another type of distribution channel is rural benefits. Insurance companies view full-service brokers as a potentially new distribution channel as well. These firms have steadily captured assets. Across all financial services. primarily at the expense of the banks. consumers are expressing a willingness to deal with a variety of providers on the web. but many of the traditional full-serve players seem to be letting it go. Thesis. Another type of distribution channel is web world. Projects.

5. which are as follows: 1) Shubh – Arambh:This promotional scheme is detailed as follows: SLAB (WRP) ACHIEVERS REWARD Projects. The Reliance Life Insurance Co. Dissertation – projectsparadise.com 63 . to sell the more policies.2 PROMOTIONAL TARGET SEGMENT PROGRAMMES & Promotional programmes and target segment are related to each other. The promotional programmes are made to motivate the advisors/agents and sales managers to do more business i. Ltd has made three promotional schemes. Thesis..e.

com 64 .E.00.000 50. Dissertation – projectsparadise. Microwave.000 1.A. is Reliance Advisor’s Reward Experience. New Advisor Incentive Program 2. Thesis.00.000 7.000 1.000 15.00. Maruti Swift Lxi GM Aveo 1.00.19L 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.E.00.4LS 2) R.00.R.000 3.G.000 SUPER ACHIEVERS 5.000 1.:The full form of R.30.000 STAR ACHIEVERS 50.000 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. This programs consists of 1.00.00.A.00.50.50.000 10. Board of Advisors Projects.R.000 20.000 75.000 75.00.00.000 2.

A. Thesis. Business criteria Projects.A. Advisor Career Progression 5.A. Launch Pad B. RARE Club – Loyalty Program The above programs are described as follows 1.com 65 .R.E. Time Period B. Dissertation – projectsparadise. Take Off 2. Parameters 3. Program Board of Advisors:Criteria There will be two levels in the Board of Advisors program A. R. R. Qualification period B.R.3. Program Discovery Series:Criteria There will be six levels in the Discovery Series program A. Annual Discovery Series 4.E. Program New Advisor Incentives:Criteria There will be two levels in the New Advisor Incentive program A.R.E. R.

The top 150 will bb calculated based on WRP (Weighted Recd Premium) 4. R. Thesis. R. The criteria for entry into each level will be based on I. Persistency III. Business (WRP) II. Issuances from 1st Apr ’06 to 15th Apr ‘07 Qualification Criteria 66 Projects. Logins from 1st Apr ’06 to 31st Mar ‘07 II. The qualification period is I.C.com . Program Advisor Career Progression:Advisor Career Progression A.R. Dissertation – projectsparadise. The RARE Club will have 6 different levels B. Sales Manager 5. Privilege Club:Levels A.A. Business Associate B. Qualification for the National Discovery Series F. Qualification for the Global Discovery Series E. Product Mix C.R.E.A.E. The qualification criteria will be the same for both the Global and the National Discovery Series D.

000 will be eligible for the Elite Club Membership. Projects. Thesis.com 67 .00.50.000 5. 5. There is only one public sector company LIC and the rest 14 are private sector.000 10.00.000 50. who have login the regular premium of Rs. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum.00. Dissertation – projectsparadise.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.000 25.000 15.00. 2.Level Topaz Pearl Sapphire Emerald Ruby Diamond WRP (Rs) 1.00.3 COMPARATIVE STUDY Presently there are 15 Life insurance companies in the country. 00.

The company was registered on 24/11/2000. HDFC – Standard: HDFC standard is a 74:26 joint venture between HDFC and Standard Life. The market share for FY 2005-06 was 7. Life Insurance Corporation of India (LIC): Life Insurance Corporation of India is a 100% government held Public Sector Company.35%. The company was registered on 23/10/2000. ICICI Prudential Life Insurance: ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. Being the first to be established LIC is the forerunner in the Life Insurance sector.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.44%. It is a private sector company. The market share for FY 2005-06 was 2. Dissertation – projectsparadise.com 68 . It is a private sector company. The company was registered on 31/1/2001. The market share for FY 200506 was 1.87%. Thesis.89%. Kotak Mahindra OLD Mutual: - Projects. It is a private sector company. The market share for FY 2005-06 was 71.

The market share for FY 2005-06 is 0.Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual.23%. Max New York Life: Max New York Life is a 74:26 joint venture between J & Bank. Aviva Life Insurance India: Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. Met Life India: - Projects.13%) and ING (26 %). Dissertation – projectsparadise. The market share for FY 2005-06 was 1. Pallonji & Co and MetLife.87%). It is a private sector company.79%. The company was registered on 6/8/2001. The market share for FY 2005-06 was 1. It is a private sector company. Enam (9. It is a private sector company.14%. Gujarat Cements (14. It is a private sector company. The company was registered on 14/5/2002. Thesis.com 69 . ING Vysya Life insurance: ING Vysya Life Insurance is joint venture between Exide (50%).11%. The company was registered on 10/1/2001. The company was registered on 2/8/2001. The market share for FY 2005-06 was 1.

The company was registered on 6/8/2001.It is a private sector company. The TATA AIG Group: TATA AIG group is a 74:26 JV between Tata Group and AIG.29%. Thesis. Dissertation – projectsparadise. The market share for FY 2005-06 was 2. The market share for FY 2005-06 was 7.A.40%.56%. The company was registered on 31/3/2001. It is a private sector company. The company was registered on 3/8/2001. The market share for FY 2005-06 was 1. It belongs to the private sector. SBI Life Insurance Company Ltd: SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S. Bajaj Allianz Life Insurance Co.31%. The company was registered on 12/2/2001.Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank.: - Projects. The market share for FY 2005-06 was 0. Pallonji & Co and MetLife. Sahara India Life Insurance Company Ltd.: Bajaj Allianz Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG.com 70 .

2) Market Share: - Sr.44 7.com . 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.35 2. Thesis.06 %.87 71 Projects.56 7. The Company commenced operations from 30th October 2004. Dissertation – projectsparadise.First Wholly Indian Owned Private Life Insurance Company. The company expects to start operations soon. No 1 2 3 4 Insurer LIC Bajaj Allianz ICICI Prudential HDFC Standard Market Share (%) 71. The market share for FY 2005-06 was 0. South Africa.

Thesis.11 0.23 1.4 0.14 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. Dissertation – projectsparadise.54 0.03 Now let’s depict the market share of these players on diagram Projects.com 72 .89 1.29 1.79 0.06 0.31 1.

HDFC Standard comes third. Rest of the players has market share below 2%.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. Thesis. Its market share was approximately 98% before 2000 but after the entry of private players it has significantly decreased. SBI Life insurance Company Limited comes fourth. Among private players Bajaj Allianz stands first.56% in the total market and it constitutes 40% of the market share among private players. It has the market share of approximately 7. Dissertation – projectsparadise.com . ICICI Prudential is also one of the fastest growing life insurance companies in India.

Dissertation – projectsparadise.com 74 . 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 75 . Thesis.CHAPTER – 6 RESEARCH METHODOLOGY Projects. Dissertation – projectsparadise.

Dissertation – projectsparadise. Projects.com 76 . Thesis. 2) To improve our ability to sell a financial product like life insurance.1 OBJECTIVES OF STUDY 1) To get some good market exposure by dealing with the prospects face to face.6.

direct. I have used simple. Thesis. 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. Closed end question include all the possible answers and subjects matters choices among them.com 77 .2 QUESTIONNAIRE It is most common instrument whether administered in person by phone or online questionnaires are very flexible. Projects. which provide answers that are easier to interpret and tabulate. I have also used closed-end questions. which are arranged in a logical order. I have asked personal questions at last so that respondent does not become defensive.3) To know the perception of the consumer about life insurance. I have used open-end questions so that customers can write answer in their own words. The form of each question is also important. 6. unbiased wording questions. Dissertation – projectsparadise. 4) To get a deep knowledge of the financial product like insurance. I have taken care in the wording and ordering of questions.

e. whether they want to invest. Primary data: Projects.3 SAMPLING METHOD AND SAMPLE SIZE Introduction:Any organization whether big or small.Questionnaire of the customer I have made questionnaire consisting seventeen questions to get customer’s view about life insurance. up to what amount and since when. having been collected for another purpose. Thesis. different magazines. newspapers and libraries. I have asked personal questions at last so that they do not become defensive. Dissertation – projectsparadise. Secondary data: Secondary data consist of information that already exists somewhere. I have gathered secondary data from website of different operators. 6. I have gathered secondary data and primary data and collected information from the combination of these two data. where thy want to invest. private or public need different types of information are to know its popularity.com 78 . I have tried to know their performance i.

The following are the limitation of this research study. Dissertation – projectsparadise.com 79 . so there is some limitation of the human hangs which is reflected in this research. 6. I have visited them personally to get data. Because the population is too large so it is difficult to survey.4 LIMITATIONS I am a human hang. I have taken a sample of 50 people. Sample size: I have taken sample size of 50 respondents. Thesis. current and unbiased.I have taken great care while collecting primary data to answer that it is relevant. Projects. accurate.

There are some limitations of this study. And I tried to give the best results to the research of this report. 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. but there is lack of expertise. 5) Another limitation is that there is lack of time. 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. 2) The opinion expressed by the respondents may be biased. as the sample size is too small for total population of Ahmedabad city. If I give more time then studies will be more effective. I tried hard to come at conclusion. But in spite of their limitation I worked with the enthusiasm.1) The sample size of 50 might not represent the perception of whole population. 3) The attitude of the research might be biased. Dissertation – projectsparadise.5 ANALYSIS OF QUESTIONNAIRE Here I have formed a questionnaire to study why people go for life insurance. 6.com 80 . Thesis.

Advocates. 6 questions are close ended and one question is an open ended one. Analysis:I have used pie charts. Engineers.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover (d) Return/Yield Projects. I asked the questions to Doctors. Thesis. Q. Target Population:I had conducted this survey among 50 people. and some other statistical measures to analyze the questions. Dissertation – projectsparadise. and the target group was a mix of people from the society. Professors. and general public. Professionals. Out of these 7 questions.Questions:There are 7 questions in the questionnaire.com 81 .

Thesis. Now let’s see what all people say TAX SAVING RISK COVERAGE RETURN/YIELD Projects. Dissertation – projectsparadise. But some people consider different advantages of a life insurance policy. The main purpose of life insurance is the Risk cover of one’s life. 20 5 23 2 50 There could be any motive of people behind investing in a life insurance policy. Some people consider Tax benefit as the main advantage of life insurance. While some people believe that it is a compulsory saving.com 82 .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.

Dissertation – projectsparadise.Here we can see that majority of the people tend to invest in life insurance for the risk coverage. we can get a different result.com 83 . 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. Return comes last. But this is the general conclusion of 50 people. The next preferred option is Tax Saving. As the private players have launched ULIPs. 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. Thesis. 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. If we take a larger sample. more and more people are turning towards these products so the Investment motive has been gaining command.

Q.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. which is the main theme of life insurance followed by Tax benefit. 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.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.com 84 . The third position is of saving and fourth is Return.

Projects. people would invest.com 85 .companies so people take help of the life insurance agent and as he guides understanding the needs of the individual. SOURCE ON MY OWN FAMILY DECISION EMPLOYER DECIDES AGENT GUIDANCE TOTAL NO. People tend to invest in life insurance plans to maintain relations though they are not in need of life insurance. 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. Thesis. 28% persons decides as per the guidance of the agent. Also sometimes it depends upon the convincing power of the agent. Dissertation – projectsparadise. Here one hazardous factor is the moral hazard.

Now let’s find out what people have to say: Type of policy Term Assurance Whole Life Endowment Combined ULIPs TOTAL N0. 14% people invest in life insurance as per the family decision.com 86 . The products range from pure Term Assurance Plans to Unit Linked Insurance Plans. 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. Q. Thesis. which are relatively new entrant in the market.4. We have already explained all these policies ahead. Dissertation – projectsparadise. 9 9 7 19 6 50 Projects.There is no contribution of employers in the decision of one’s investment in life insurance.

Q. Thesis. It is the main theme of this questionnaire.com 87 . Dissertation – projectsparadise. Projects. It gives people double advantage. and after that period the risk cover continues and the rest of the amount would be paid when the person dies. The person would get some amount at the end of the stipulated period. for instance 20 years.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.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.

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. Dissertation – projectsparadise. So it has fewer customers as compared to LIC. some people have also turned to private life insurers. Projects. But after the entry of private players in 2000. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in today’s environment.com 88 . Thesis.Prior to 2000 LIC was the only player in the life insurance market and it had the total market. 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.

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.com 89 . Thesis. 5 30 15 50 Projects.

and remaining 30% people are aged between 51 to 65.18 to 30 31 to 50 51 to 65 As evident from the chart that I have taken a sample of 50. 60% people are aged between 31 to 50. 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. Thesis.com 90 . Projects.

20% are of professions. Thesis.00. 3) Income (a) 50.00.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.00.000 (c) More than 5.com 91 .000 (b) 1. 10% are of housewives and remaining 30% are of retired.000 to 5.000 Projects.000 to 1. 30% are of business men.00. Dissertation – projectsparadise.

000 to 5.00.com 92 .00.00.00.000 1.000 TOTAL 50.00. Dissertation – projectsparadise.000 to 1.000 to 1. Thesis.000.000 More than 5.000.000 to 5.00.00.000 10 25 15 50 As the evident from the chart out of 50 respondents 20% are earning annually between 50.000 More than 5. 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects.00. 50% are earning between 1.000 to 1.00. 50.00.000 1.00.00.Income (Per Annum) No.000 to 5.000 and 30% are earning more than 5.

Thesis. 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. Now let’s make SWOT analysis for reliance Life Insurance Company Limited. 40% have 4 family members and remaining 20% have more than 4 family members.Family Members No.com 93 .6 SWOT ANALYSIS SWOT analysis is the analysis of the internal and external factors. 6. 30% have 3 family members. Projects. Dissertation – projectsparadise. which have impact on the survival of any organization.

5) Range of products 6) Reliance has a long and strong history of solvency.000 crs worth of securities with RBI by the government. ▼WEAKNESSES: 1) Newly established company. 2) Lack of staff. 4) Strong liquidity from FII was the major reason for the up move.☻STRENGTHS: 1) Reliance Life Insurance Company Limited is the part of the Reliance Capital. so people seems it risky. Projects. financial stability. Led to an improvement in market securities. 3) Private placement of Rs. Dissertation – projectsparadise. Thesis.com 94 . 2) The brand name is enough to sell the products easily. 10.

The life insurance penetration in India is approximately 2. so most of the customers are not aware of the Reliance Life Insurance.5%. CHAPTER – 7 FINANCE DEPARTMENT Projects. Dissertation – projectsparadise. ☼ OPPORTUNITY: 1) There is a vast untapped market in India. the people who used to invest in life insurance for the sole motive of tax benefit may turn to other instruments. regular and disciplined savings to systematically build up a target fund. So it has large potential. Thesis. 3) The average insurance premium being collected by the company has been growing exponentially year on year.3) Lack of advertisement. 2) As the government has scrapped the rebate on the life insurance premium. ● THREATS: 1) The main threat is from the other players who have grabbed approximately 15% of the market share.com 95 . 2) Intention of traditional products is to encourage long term.

which Reliance Life Insurance Company Limited has offered.com 96 . Thesis. which are as follows: Projects.FUND PERFORMANCE:- There are four fund options. Dissertation – projectsparadise.

In line with the objective of protecting the capital against any erosion.68% GOI 2006 11. and Reliance Market Return Plan.60 6.’06) Net Returns since Inception in Feb’03 (Annualized) 0.-Mar. 61.’06) Net Returns during the last 12 months (Apr.36% 1.1) Capital Secure Fund:This fund is for Reliance Golden Years Plan. Net Returns during last 1 month (Mar.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. Thesis.com % of total assets 38.10% 4.75% GOI 2006 11.75% GOI 2006 Projects.09% 3. The net return credited to policyholders and the asset composition ratios are given in the boxes below.’05-Mar.’06) Net Returns during the last 3 months (Jan.69 40.96 97 .75 13.89% Bank Fixed Deposits Asset Name Total Bank Deposit Gilts 6. Dissertation – projectsparadise.

Dissertation – projectsparadise. The asset composition. Bank deposits were maintained only for the purpose of liquidity management. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. the details of the portfolio and the net returns are disclosed below.’06) Projects. To take advantage of the bullish trend in the equity market.40 100. All the bonds in the portfolio are top rated.00 Asset Allocation:- Gilts Bank Deposits 2) Balanced Fund:This fund is for Reliance Golden Years Plan.com 2. Net Returns during last 1 month (Mar. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. Within the fixed income portfolio. and Reliance Market Return Plan.Total Gilts Total 61. allocation to Gilts was higher than corporate bonds. Thesis.47% 98 .

Dissertation – projectsparadise. Thesis.’05-Mar.83% 13.com 99 .’06) Net Returns since Inception in Feb’03 (Annualized) 4.’06) Net Returns during the last 12 months (Apr.10% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 20 22 53 5 100.-Mar.00 Equity Corporate Bonds & Debentures Gilts Bank Deposits 3) Growth Fund:- Projects.Net Returns during the last 3 months (Jan.07% 13.

Net Returns during last 1 month (Mar.com 100 . the details of the portfolio and the net returns are disclosed below.’06) Net Returns during the last 12 months (Apr.60% 7.This fund is for Reliance Golden Years Plan. To take advantage of the bullish trend in the equity market.04% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 9 40 45 6 100.-Mar.’06) Net Returns during the last 3 months (Jan. Dissertation – projectsparadise. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. The asset composition.’06) Net Returns since Inception in Feb’03 (Annualized) 4.99% 24.’05-Mar.00 Projects. and Reliance Market Return Plan. Thesis. All the bonds in the portfolio are top rated.90% 21. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund.

’06) Net Returns during the last 3 months (Jan.18% 20. the entire corpus of the fund was invested in equities.’06) Net Returns since Inception in Feb’03 (Annualized) 11. Thesis.46% 57. Net returns earned since inception and the full portfolio are disclosed below.com 101 .’05-Mar.’06) Net Returns during the last 12 months (Apr.83% Projects. In line with the stated asset allocation pattern and their view of the market.Equity Corporate Bonds & Debentures Gilts Bank Deposits 4) Equity Fund:This fund is for Reliance Market Return Plan.02% 64. Net Returns during last 1 month (Mar. Dissertation – projectsparadise.-Mar.

07 100.00 Equity Mutual Fund/Bank Deposits CHAPTER – 8 102 Projects.93 1.com .Asset Name Equity Mutual Fund/Bank Deposits Total % of Total Asset 98. Dissertation – projectsparadise. Thesis.

CONCUSION

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

103

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.

CHAPTER –

9

BIBLIOGRAPHY AND REFERENCES
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www.reliancelife.com www.indiainfoline.com www.bimaonline.com www.google.com

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Thesis.com 106 .Life Time Magazine of Reliance Life Insurance Net Bios Computer Academy’s Life Insurance Book Broachers of Reliance Life Insurance CHAPTER – 10 ANNEXURE Projects. Dissertation – projectsparadise.

C. Thesis.com 107 .1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover Projects.Questionnaire Survey by student of R. Dissertation – projectsparadise.B. On Life Insurance NAME: ___________________________________________ Q.K.M.

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.(d) Return/Yield Q. Thesis.4.com 108 . 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. Dissertation – projectsparadise.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC Projects.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.

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.

(c) Profession (d) Housewife (e) Retired 3) Income (a) 50. Dissertation – projectsparadise.000 to 5.00.000 to 1.00.00.000 (b) 1.000 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects.com 110 .00.000 (c) More than 5. Thesis.

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