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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
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which may be certain or uncertain. Insurance is a collective bearing of risk.2 IMPORTANCE OF INSURANCE Projects. 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 desired to safeguard oneself and one’s family against possible losses on account of risks and perils.com 7 .” The other party called insured pays in exchange a fixed sum known as premium. Insurance is a financial device to spread the risks and losses of few people among a large number of people. Dissertation – projectsparadise. 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. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. 1. Thesis.
There is lot of potential in the Indian Insurance Industry. This would lead to more capital inflow by foreign partners. So it offers lot of scope for studying the insurance industry. Dissertation – projectsparadise. Thesis. There are many issues.com 8 . Government may in near future allow 49% FDI in Insurance. 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. Rural marketing of insurance. There are number of other hot topics like penetration of Health Insurance.Insurance constitutes one of the major segments of the financial market. Though market share of LIC has been affected. Today insurance industry is one of the most growing sectors in India. Right now the insurance industry has great opportunities in a country like India or China which huge population. Also the penetration of insurance in Projects. The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. new distribution channels. incentive scheme of development officers of LIC etc. it has improved in terms of efficiency. Another major issue is the effects on LIC after the entry of private players in the market. Insurance services play predominant role in the process of financial intermediary. new product ranges. insurance brokers’ regulation. which require study.
1. fire. etc. Projects.com 9 . From 1826. So first we understand what is insurance? How the word ‘insurance’ is different from the word ‘assurance’? etc. The word assurance indicated certainty. The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance.3 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. 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. Thesis. Before starting the discussion on insurance industry and related issues. In life insurance.India is very low in both life and non-life segment so there is lot potential to be tapped. 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.
The scope of the word. (2) Principle of indemnity This means that if the insured suffers a loss against which the policy has been made.The principle of “indemnity” applies to “insurance contracts”(non-life) only. 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. insurance is wider. 1. (1) Principle of “Uberrima Fides” or Principle of utmost good faith It means “maximum truth”. Thesis. In other words. In other words. Dissertation – projectsparadise.com . the insured is not entitled to make a profit on his loss. The insurer before the settlement of the claim may exercise the right.4 PRINCIPLES OF INSURANCE An insurance contract is based on some basic principles of insurance. 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.
5 HISTORY OF INSURANCE Projects. Thesis. he remains in the same old position. 1.insured. Dissertation – projectsparadise.com 11 . Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed. (5) Principle of insurable interest The assured must have insurance interest in the life or property insured. 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. (4) Principle of causa proxima The cause of loss must be direct and an insured one in order to claim of compensation. The concept of ‘Third Party Claims’ is based on the same principle.
With a view to providing fire insurance facilities. 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. 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. the name of Life Insurance Corporation of India’s corporate headquarters. Dissertation – projectsparadise. Marine insurance companies came into existence by the end of the eighteenth century. Thesis. The Aryans practiced some form of ‘community insurance’ around 1000 BC. The Sanskrit term ‘Yogakshema’ (meaning well being). Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office. Life insurance in its modern form came to India from England in 1818. This coffee house became so popular that Lloyd’s became the one of the first modern insurance companies by the end of the eighteenth century. The early history of insurance in India can be traced back to the Vedas. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. is found in the Rig Veda. which were later repaid with interest when the goods arrived safely.com 12 .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 insurance Projects.
Dissertation – projectsparadise.6 TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS) 1818 British introduced the life insurance to India with the 13 Projects. irregularities and dubious investment practices by scores of companies. expenditure and management of these companies. came into existence in 1870 to cover Indian lives at normal rates. As a result the government decided to nationalize the life assurance business in India. Thesis. 1938.1950s there were 154 Indian insurers. The Life Insurance Corporation of India (LIC) was set up in 1956. the Bombay Mutual Life Assurance Society. The Insurance Act. The nationalization of life insurance was followed by general insurance in 1972. This amended insurance Act looked into investments.com . treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. which came into existence between 1818 and 1869. 1. Insurance business flourished and so did scams.companies. and 75 provident societies carrying on life insurance business in India. 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. 16 foreign insurers. By the mid.
N. Thesis. 1870 1912 1938 The Insurance Act was enacted. 1956 1972 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R.com 14 . 1994 Projects. Non-life business nationalized. 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. Malhotra to draw a blue print for insurance sector reforms. Dissertation – projectsparadise. Government took over 245 Indian and foreign insurers and provident societies.establishment of the Oriental Life Insurance Company . 1850 Non life insurance started with Triton Insurance Company. Nationalization took place. Malhotra committee recommended reentry of private players. in Calcutta.
although the owner and Projects.com 15 . 2001 2002 Bank allowed to sell insurance plans as TPAs enter the scene. 1. and the owner of the policy (policyholder). Dissertation – projectsparadise.1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. the insured.7 MEANING OF LIFE INSURANCE There are three parties in a life insurance transaction: the insurer. 2000 IRDA started giving license to private insurers. Thesis. Royal Sundaram was the first non-life private player to sell an insurance policy. insurers start setting non-life claims in the cashless mode. ICICI Prudential. HDFC were first private players to sell insurance Policies.
A universal life policy includes a cash account. If you want insurance protection only. Premiums increase the cash account. and a cash value table included in the policy guaranteed by the company. buy a term life insurance policy. Life insurance may be divided into two basic classes – term and permanent. fixed and known annual premiums. unless the owner fails to pay the premium when due. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. • 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. Thesis.com 16 . The primary advantages of whole life are guaranteed death benefits.the insured are often the same person. The policy does not accumulate cash value. Projects. Dissertation – projectsparadise. • Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. Another important person involved in a life insurance policy is the beneficiary. • Permanent life insurance is life insurance that remains in force until the policy matures. and not a savings and investment product. • Whole life insurance provides for a level premium. guaranteed cash values. and mortality and expense charges will not reduce the cash value shown in the policy.
or freight. ship owners were the insured and lenders were the underwriters. 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.8 HISTORY OF LIFE INSURANCE Risk protection has been a primary goal of humans and institutions throughout history. a number of ships would carry a portion of another ship's cargo so that if one ship was captured. Piracy. Protecting against risk is what insurance is all about. and a surcharge to cover the possibility of loss.naic. Dissertation – projectsparadise. In 2100 BC. plan to hold it for at least 15 years. nearly 4. Check the National Association of Insurance Commissioners website (www. an interest rate. Canceling these policies after only a few years can more than double your life insurance costs.If you want to buy a whole life. Such contracts contained three elements: a loan on the vessel. In effect. that as a way of spreading the risk. in China. Thesis.500 years ago. In another part of the world. was so prevalent. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. insurance was seen as a preventative measure against piracy on the sea. in the ancient land of Babylonia. the entire shipment would not be lost. These provided the underpinning for marine insurance contracts. universal life.org/cis) or your local library for information on the financial soundness of insurance companies. in fact. Projects. cargo. the Code of Hammurabi granted legal status to the practice. 1. Over 5000 years ago.com 17 . or other cash value policy.
and to protect widows and children. but aspects of it did continue through the Middle Ages. around 450 A. most of the concepts of insurance were abandoned.D. and even imprisonment. or as they were known then. as well as help survivors monetarily. But during the 14th to 16th centuries. early forms of insurance ebbed with the decline of travel and long-distance trade. For instance. Modern Insurance Illegal almost everywhere else in Europe. and insurance would again reemerge. life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. Insurance in India can be traced back to the Vedas. Dissertation – projectsparadise. is derived from the Rig Veda. Lloyd's Coffee Projects. Thesis. transportation. theft. The type of insurance we see today owes it's roots to 17th century England. And similar to ancient Rome.com 18 .Life insurance came about a little later in ancient Rome. commerce. particularly with merchant and artisan guilds.. During the feudal period. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. Lloyd's of London. With Rome's fall. where burial clubs were formed to cover the funeral expenses of its members. flood. yogakshema. death. the name of Life Insurance Corporation of India's corporate headquarters. burial societies were formed in the Buddhist period to help families build houses. These provided forms of member insurance covering risks like fire. disability.
Insurance moves to America The U. SC. In 1835. The Presbyterian Synod of Philadelphia in 1759. sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. But it wasn't until 80 years later (after 1840). Reacting against such practices. bets were placed at Lloyd’s on their anticipated dates of death. While serving as a means of risk-avoidance. The key to its success was reducing the opposition from religious groups. in Philadelphia. in fact. life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. that life insurance really took off in a big way.S.House.” 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. Thesis. Gambling was so rampant. And the first life insurance policy for the general public in the United States was issued. the infamous New York fire drew people's attention to the need to provide for sudden and large losses. 1761. Dissertation – projectsparadise. Massachusetts became the first state to require companies by law to maintain such reserves. The Projects. that when newspapers published names of prominent people who were seriously ill. 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. insurance industry was built on the British model. was the location where merchants. ship owners and underwriters met to discuss and transact business deals. Two years later.com 19 . on May 22.
public liability insurance. Dissertation – projectsparadise. The practice of reinsurance. while fraternal orders provided low-cost. wherein the risks are spread among several companies. such fraternal orders continue to provide insurance coverage to members.great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. During the 19th century. was devised specifically for such situations. In 1897. gained importance and acceptance? More advancement was made to insurance during the process of industrialization. With the creation of the automobile. but sickness and accident benefits and old-age pensions. As America moved from a colonial outpost to an independent force. Thesis. membersonly insurance. many societies were founded to insure the life and health of their members. land diversity and the overwhelming desire to be independent. providing not just life insurance. Many employers sponsor group insurance policies for their employees. Final Thoughts Even though the American insurance industry was greatly influenced by Britain. which first made its appearance in the 1880s. Employees contribute a certain percentage of the premium for these policies. as do most labor organizations. Even today. the US market developed somewhat differently from that of the United Kingdom. which made it mandatory for a company to insure its employees against industrial accidents. the British government passed the Workmen's Compensation Act. Contributing to that was America's size.com 20 . from a farming country to an Projects.
offering new types of coverage and diversified services for an increasingly complex country. 3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. Dissertation – projectsparadise. The nominee has only the right to receive the policy monies in case of your death within the term of the policy. Permanent policies provide a death benefit that is guaranteed for the life of the insured.industrial nation. 1. the insurance business developed from a small number of companies to a large industry.9 KEY FEATURES OF LIFE INSURANCE 1) Nomination: When one makes a nomination. Insurance became more sophisticated. 2) Assignment: If your intention is that your policy monies should go only to a particular person.com 21 . you need to assign the policy in favor of that person. provided the premiums have been paid and the policy has not been surrendered. Thesis. 4) Cash Value: - Projects. 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.
after any applicable surrender charges. called paid-up additions. 9) Disability Waiver of Premium Projects. 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. 8) Conversion from Term to Permanent: When in need of temporary protection. 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. Thesis.The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. Either a fixed or variable rate of interest is charged.com 22 . if the policy were surrendered before the insured's death. individuals often purchase term life insurance. one of which is toward the purchase of additional coverage. 6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways. This feature allows the policy owner an easily accessible loan in times of need or opportunity. 7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy.
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.Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost. 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. Projects.com 23 . It guarantees that coverage will stay in force and continue to grow 1. Thesis.
oriented sectors the Industry has contributed immensely to the nation's development. 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. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. The ventures initiated by the industry in the areas of Mutual Fund. Thesis.11 ROLE OF LIFE INSURANCE GROWTH OF THE ECONOMY IN THE The Life Insurance Industry has an enviable track record among public sector units. Moreover the cash value can be used as an additional income in the old age. Through investments in the Government sector and socially.com 24 . 1.3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies. 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. The industry is recognized as one of the largest financial Institutions in the country. Projects. Dissertation – projectsparadise.
Dissertation – projectsparadise. Thesis. CHAPTER-2 INTRODUCTION TO THE COMPANY Projects. To protect the country's foreign exchange reserves.com 25 .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.
in terms Projects. Dissertation – projectsparadise. and ranks among the top 3 private sector financial services and banking companies.1 ABOUT RELIANCE LIFE INSURANCE Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd.2.Anil Dhirubhai Ambani Group.com 26 . Thesis. of the Reliance . Reliance Capital is one of India’s leading private sector financial services companies.
2006. 1934. private equity and other activities in financial services. 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. It was in August 2005 that the ball was set rolling when Reliance Capital Limited. Reliance Capital has interests in asset management and mutual funds. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. 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. 2.of net worth. stock broking. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. Thesis. the financial arm of Reliance – Anil Dhirubhai Ambani Group 27 Projects. proprietary investments. Dissertation – projectsparadise.2 HISTORY Reliance Capital Limited announced the launch of its life insurance business on February 1.com . life and general insurance.
The company will issue all policy contracts under the Reliance Life Insurance Company limited name. 2006 January 17: ‘Optimising Mr. and the formal transfer of shares took place in October 2005.com 28 . 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. Thesis.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.(ADAG) – announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited. Dissertation – projectsparadise. 2.
Nandgopal. Dissertation – projectsparadise. February 1: Rliance Life Insurance officially launched. Mumbai. with fail-over capability to their Chennai Data Centre Projects.com 29 . Functional Heads. March 7: The new office at Chennai. 2. February 16. # 39. KV Srinivasan and Mr. Nandgopal. 18: Strategy meet at the Reliance Management Institute. Amitabh Chaturvedi and Mr. COO. Mr. Amitabh Jhunjhunwala. March 6: Shifting to the new premises at Churchgate commences. Sureshbabu also graced the occasion. First Floor. Amongst those who participate are the CEO. February 26: A Puja held at the Churchgate office situated in Express Building. inaugurated by their CEO Mr. Thesis. March 1: Churchgate office inaugurated by Mr. at the Trapezium. Regional Managers and Regional Sales Managers.‘Emerging Bancassurance’ organized by the Asia Insurance Post at the Taj President. Nelson Manickam Road. 17. Mumbai. Mr. 4th Floor. 14 ‘E’ Road.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.
5) R World: 30 Projects. Life-Asia and Internet Applications. Thesis. Corporate News. 4) Web Portal: This portal will be an interface between both internal employees and their external users. 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. which cater services to internal and external queries and complications. Dissertation – projectsparadise. A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress. Quality Checking System. Under Writing Medical System. 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 Agent Management System etc.within the same business day in occurance if an incident or Disaster happens.com . Some of the functions included in their portal are Policy Tracking Systems. 3) Customer Care Centre: They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai.
Dissertation – projectsparadise. 9) Document Management System: Projects. Products. 6) SMS Alerts: SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns. Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc.Reliance Mobile R-World will provide online information about their Company. Agents/Advisors and Lead Generators. Policy Dispatch Details.com 31 . Thesis. This Lounge will be equipped with desktops and printers with Internet connectivity. Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc. Customer Alerts will include Welcome/Birthday/Anniversary message. 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. 7) Life and Group Asia: Single Life and Group Life details will be captured and managed by Life and Group Asia. 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. where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. and Policy Services to their existing customers.
Travel and Leave Management Systems. which yields a faster Turn around Time to both internal and external users.business results. Dissertation – projectsparadise. The aim of the company is to Think Bigger and Think Better. This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers.com 32 . 2. 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. customer care and employee focus. 11) SAP – ERP Modules: SAP (Finance and HR Modules). will automate the Expense.6 CORE VALUES Reliance Life Insurance Company Limited has some core values which are listed as follows: Projects. 2. Thesis.DMS will enable both policy issuance and contract servicing through an automated workflow.
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.8 HEAD – OFFICE Projects.1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun 2. collate feedback and suggestions from the caller. A state-of-the-art customer care centre will provide continuous. who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai. 2. Thesis. It will be launching additional products aimed at providing unparalleled service to its valued clientele.com 33 . responsive services to the caller and promptly address queries.
39. Thesis. The Trapezium. And they have planned to open more branches across the country in the coming months. First Floor.9 BRANCHES They have so many branches and substations in the India. Chennai – 600 029.Reliance Life Insurance Company Limited. Projects. They have around 160 branches in the India. Nelson Manickam Road. Dissertation – projectsparadise. 2.com 34 .
com 35 . Thesis.CHAPTER – 3 PRODUCT MIX Projects. Dissertation – projectsparadise.
com .3. Fundamentally the product provide for: Risk cover Investment Health cover 36 Projects. Dissertation – projectsparadise.1 TRADITIONAL PLAN:Life insurance products are designed to suit the requirements of customers. Thesis.
Since Projects.In every product. Reliance Life Insurance Company Limited has offered 9 traditional plans to the customers. it is essential for an agent to understand the requirements of the customer well. Dissertation – projectsparadise. risk cover is imperative for it to fall under the category of insurance. 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. and do not wish to save for themselves. the premiums are calculated and the customer pays accordingly. 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 order to suggest the right product. to a certain degree. Thesis.com 37 . Based on the coverage of the product.
there is no saving element or bonus provision. Features: a) It is a whole life insurance policy with profits b) Low cost life cover c) Maturity age is 85 year or 99 years last birthday as chosen d) Maturity amount = Sum assured + Vested bonus e) Tax benefit is available Projects. Features: 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.com 38 . the premium is very low. this is a high-risk plan with a low premium. 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.A. Hence.
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. Features: I. a Doctor or specialize in some other field.com 39 . 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. 25.000.3) 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. This money is payable in equal installments over the last 4 years of the policy term. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs. or is perhaps planning to go abroad. Thesis. Dissertation – projectsparadise.
Thesis.your daughter’s wedding.by eliminating the burden that a shortage of money creates.com 40 . your child’s university education or even a new office for your business . In the event of your untimely death. 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. Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides. Reliance Endowment Plan also gives you the additional benefit of participating in the company’s profits. It is an inexpensive and easy way to protect you. In a nutshell this plan will keep you financially prepared for all the special occasions in your life . which you will receive at the end of the policy period. your family or your business.Reliance Life Insurance’s Reliance Endowment Plan is the key to all your financial needs.
com 41 . 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. Features: a) Entry age minimum 12 year and maximum 65 year b) Minimum sum assured is Rs. Dissertation – projectsparadise. 5.00. Thesis. half yearly.000 c) Minimum premium paying term is 10 year and maximum 40 year Projects. 25.000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual. Payment of sum assured at the end of premium paying term and extension of life cover thereafter for the full sum assured for a period of 5 years.000 or as determined by the minimum premium e) Maximum sum assured is Rs. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium. 25. are characteristics of the policy.d) Minimum sum assured is Rs. This plan also participates in the profits.
Thesis. and renovation of your home or perhaps. Features:a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year Projects. while providing simultaneously. but create. a holiday abroad. through regular premium payments. your daughter's engagement. The first installment is paid at the end of the 4th year and thereafter at the end of every 3rd year. Alternatively.d) Unique feature of this policy is that five year life protection continues after you have stopped the payment of premium e) Tax benefit is available f) Under this policy bonus is compounded yearly g) Loan facility is available h) Maturity amount = Full sum assured before maturity date + Vested bonus at the time of maturity date 6) Reliance Cash Flow Plan: This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. The advantage of the policy is that they need not part with a sizable amount of money at any one time. substantial life cover. Dissertation – projectsparadise. it can be used to meet any immediate financial crisis in the family like your son's college admission.com 42 . a periodic return of lump sums which become available for reinvestment at higher returns. The money is payable in installments.
Thesis. Dissertation – projectsparadise. two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for 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.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. Features: a) Loan protection against home. home improvement.com 43 .
Features: a) Loan protection against home. home improvement. Dissertation – projectsparadise.com 44 . Thesis. Projects. disability or critical illnesses.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.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.
while the balance (after the deduction of costs. Dissertation – projectsparadise. A small part of the contribution is used for providing life cover and the balance is invested in unit. etc. 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. 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.) is used to buy units in a unit trust. expenses. As they are linked to the value of shares. unit linked policies can go up or down in value. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured.Each premium paid by the insured person is split: a part is used to provide life assurance cover. a small investor can benefit from investment in a managed fund without making a large financial commitment. In this way.com 45 . Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans. 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). Thesis.
ii. 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. 2500 (standing order/credit card) d) Top up premium minimum Rs. iii. iv. quarterly.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. half yearly and monthly Rs. At the same time your investment premiums provide you with insurance cover. Thesis. 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.com 46 . 1000 (for salary deduction only) and Rs. Dissertation – projectsparadise. 2500 e) Option of investment fund i. 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.
Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment. vesting options such as commuting and annuity options. Reliance Golden Years Plan. Thesis.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. life cover. Features: a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs. 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.com 47 .. Contributions provide Income tax savings as well. The Reliance Life Insurance ‘no-worry stay happy’retirementplan. a flexible pension product is available for all individuals who are between the ages of 18 and 65. Dissertation – projectsparadise. 10.
Thesis. ii.com 48 .i. Dissertation – projectsparadise. 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. 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. iii.
Projects.com 49 .4. Dissertation – projectsparadise. The process begins when new recruits are sought and ends when their applications are submitted. Thesis. The result is a pool of applicants from which new employees are selected.1 RECRUITMENT Recruitment is the process of finding and attracting capable applicants for employment.
4. Mumbai. After clearing the examination the code will be provided to them and the license will also be given to them. After all these requirements. does the recruitment. They must pass the prerecruitment examination. which is conducted by the Insurance Institute of India. 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. In simple words. the validity the license would be 3 years. examination. it is the process of differentiating between applicants in order to identify these with a greater likelihood of success in a job.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 includes-.com 50 . or any other approved examination body. Projects.In this company the Sales Manager. Dissertation – projectsparadise. who recruits the advisors/agents for selling the products of the company.S. Thesis.C. The Branch Manager.
com 51 . the applicant should have to make a list of 40 and then start the business with them. 3) Interview with Regional Head: After clearing the project 40 interview.2) Project 40 Interview: After clearing the personal interview. Dissertation – projectsparadise. the medical check up should e made to the applicant. 5) Medical Examination: After that. Thesis. In this step. the project 40 interview will be taken by the Branch Manager. the applicant should be interviewed by the Regional Head. the negotiation will be provided to the applicant. who will check his/her performance. 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. Projects.
They should have the capability to handle the team. guiding. 2.Requirements of Sales Manager:The Sales following things1. 5. motivating and in turn getting business out of a team.A. They should be an M. They should have good communication skill. Their job profile includes recruitment.com 52 . 4. Thesis. 3. 6. Manager should possess the 4. computed as follows: Projects. The age of them should be between 25 to 35 years. training.B. The need for training and development is determined by the employee’s performance deficiency.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 at least sales experience of 3 years. Dissertation – projectsparadise.
4.4 CAREER DEVELOPMENT They are also providing career development plans. This institute is approved by IDRA to train agents/advisors. Dissertation – projectsparadise. it is the process of exchanging the information from one person to another. In simple words. The communication is provided in the following manner: Projects. who are newly recruited. 4. which will identify potential and create avenues for growth. They are providing an open environment. Thesis. which enabling free interaction between all levels. and experience to others. The NIS SPARTA Institute has more than 150 batches and is trained over 3000 agents for most of the private insurance companies. who are newly recruited.com 53 .5 COMMUNICATION Communication is the process through which an individual can exchange their beliefs.Training & Development = Standard Performance – Actual Performance They are providing 100 hours training to their advisors. information. The 100 hours training is to be conducted at Net Bios Computer Academy whereas the product training is to be conducted at NIS SPARTA. things. They are also providing the product training to their advisors and Sales Managers.
com 54 .Projects. Thesis. Dissertation – projectsparadise.
com 55 . Thesis. Dissertation – projectsparadise.BRANCH BRANCH BRANCH REGIONAL REGIONAL REGIONAL CHANNEL HEAD CMO CEO Projects.
Projects. Dissertation – projectsparadise. 1) They are providing knowledge sharing and certification practices. then to Chief Executive Officer (CEO).6 INCENTIVES Incentives are monetary benefits paid to workmen in recognition of their outstanding performance. 2) They are planned team building and fun events. 3) They are creating Reliance Life Insurance family. 4. Thesis. associates and their families. They are providing an aggressive reward and recognition plans. 4. it flows between Branch Manager to Sales Managers and Sales Managers to Agents/Advisors. and then Branch Head to Regional Head. then Regional Head to Channel Head. Within a branch.com 56 . which includes employees. which are including sales incentives.Explanations of the diagram:The communication is flow between Branch to Branch. then different Regional Head to Regional Head. then to Chief Marketing Officer (CMO).7 SERVICES They are offering following certain services to their employees.
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. customer focused. which goals and measure financial. Performance appraisal is a formal. process related and employee development related initiatives. achievement oriented and challenge loving performance. Projects. 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. If the performance is best then he/she will be prompted.4) Reliance Life Insurance in a team building mode and is looking for performance driven.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.com 57 . 4. Dissertation – projectsparadise. Thesis. organization and society all benefit. In addition to this. They are providing a balanced scorecard approach for strategy deployment and performance measurement.
com . Dissertation – projectsparadise. Thesis.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.9 ORGANIZATION STRUCTURE CEO CMO Channel Head Regional Head Branch Head SalesCEO Manager Advisors/Agents Customers FORM AND 4.4.
Dissertation – projectsparadise.com 59 .8) Finance CHAPTER – 5 MARKETING DEPARTMENT Projects. Thesis.
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. is an agency. Independent shops realized that by pooling production and funding a central support office. their emergence may potentially be realignment in the distribution of financial services. Ltd is using.com 60 . which Reliance Life Insurance Co. Although producer groups are in their infancy.1 DISTRIBUTION CHANNEL Reliance Life Insurance Company Limited is using five types of distribution channel. This channel works as follows: Branch Managers Advisors Customers Projects. Dissertation – projectsparadise. The one type of distribution channel. Thesis.5. they had increased buying power. Independent agents & insurance producer groups are growing in prevalence.
Another type of distribution channel is corporate. 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. Through these small enterprises. 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. followed by demand for corporate trustee services.. Thesis. The interviews revealed that demand is greatest for living trusts among independent advisors. to sell the policy of the company.com 61 . Dissertation – projectsparadise. Projects. Another type of distribution channel is bank assurance. This channel is tie up with corporate or small enterprises.e. This channel is tie up with banks. and direct marketing insurance. a research was performed with independent advisors across several broker/dealers and custodians. which are for employee benefits. credit life. life insurance sales have been slower than one would expect he primary bank insurance activities have been the distribution of annuities. In this channel the advisors using or targeting the bank customers to make a business with them i.2) Bank Assurance: While a lot of bank relationships with insurance companies have been established.
com 62 . Another type of distribution channel is web world. the dealers will sell the policy to the target customers.4) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business lost by the banks. 5) Web World:Direct sales of life insurance are growing rapidly. which are taken from the customer database. These firms have steadily captured assets. In this channel. 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. This channel is tie up with customer database. Another type of distribution channel is rural benefits. Dissertation – projectsparadise. the advisors will sell the policy to the target customers. Insurance companies view full-service brokers as a potentially new distribution channel as well. Thesis. are listed in the website. This channel works as a dealership. consumers are expressing a willingness to deal with a variety of providers on the web. Web sites are starting to pop up offering consumer insurance products especially designed for distribution over the web. primarily at the expense of the banks. Across all financial services. Projects. In this channel. but many of the traditional full-serve players seem to be letting it go.
Ltd has made three promotional schemes. Thesis.. Dissertation – projectsparadise. to sell the more policies. The promotional programmes are made to motivate the advisors/agents and sales managers to do more business i.e.com 63 .2 PROMOTIONAL TARGET SEGMENT PROGRAMMES & Promotional programmes and target segment are related to each other. The Reliance Life Insurance Co. which are as follows: 1) Shubh – Arambh:This promotional scheme is detailed as follows: SLAB (WRP) ACHIEVERS REWARD Projects.5.
New Advisor Incentive Program 2.00.:The full form of R.000 1. Board of Advisors Projects.000 50.00.R. Microwave.000 75.50.19L 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 2.A.00.4LS 2) R.000 SUPER ACHIEVERS 5. Dissertation – projectsparadise.E.000 1.00.A.00.00.50.00.000 75.000 STAR ACHIEVERS 50.com 64 .00. This programs consists of 1.000 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.00.30.000 7.00.000 15.00. Thesis.000 20. is Reliance Advisor’s Reward Experience.000 1.G.000 10.000 3. Maruti Swift Lxi GM Aveo 1.E.
A. Parameters 3. Dissertation – projectsparadise.3. R. Program Discovery Series:Criteria There will be six levels in the Discovery Series program A. Launch Pad B. Program Board of Advisors:Criteria There will be two levels in the Board of Advisors program A. Business criteria Projects. R. Advisor Career Progression 5.com 65 . RARE Club – Loyalty Program The above programs are described as follows 1. Time Period B. R. Annual Discovery Series 4. Program New Advisor Incentives:Criteria There will be two levels in the New Advisor Incentive program A.E. Take Off 2.E.A.R.R.E.A. Thesis. Qualification period B.R.
A. Program Advisor Career Progression:Advisor Career Progression A.E. Privilege Club:Levels A. R. Persistency III. Thesis.com .R.C. The qualification criteria will be the same for both the Global and the National Discovery Series D. Product Mix C. Issuances from 1st Apr ’06 to 15th Apr ‘07 Qualification Criteria 66 Projects. R. Sales Manager 5.A. Dissertation – projectsparadise. Business (WRP) II. The top 150 will bb calculated based on WRP (Weighted Recd Premium) 4. The RARE Club will have 6 different levels B. Qualification for the National Discovery Series F. Business Associate B. The criteria for entry into each level will be based on I.R. The qualification period is I. Logins from 1st Apr ’06 to 31st Mar ‘07 II. Qualification for the Global Discovery Series E.E.
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.00.3 COMPARATIVE STUDY Presently there are 15 Life insurance companies in the country.000 50.000 will be eligible for the Elite Club Membership.00. 5. 00. There is only one public sector company LIC and the rest 14 are private sector.000 10. Projects. Dissertation – projectsparadise.000 5. 2.00. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum.000 15.00.com 67 .50. who have login the regular premium of Rs.00.Level Topaz Pearl Sapphire Emerald Ruby Diamond WRP (Rs) 1. Thesis.000 25.
Dissertation – projectsparadise. The market share for FY 2005-06 was 7. ICICI Prudential Life Insurance: ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. It is a private sector company.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%. The company was registered on 24/11/2000. Thesis. The market share for FY 200506 was 1.87%.35%.44%. The market share for FY 2005-06 was 71. HDFC – Standard: HDFC standard is a 74:26 joint venture between HDFC and Standard Life.com 68 . Kotak Mahindra OLD Mutual: - Projects. It is a private sector company. The company was registered on 23/10/2000. It is a private sector company. The market share for FY 2005-06 was 2. The company was registered on 31/1/2001. Life Insurance Corporation of India (LIC): Life Insurance Corporation of India is a 100% government held Public Sector Company. Being the first to be established LIC is the forerunner in the Life Insurance sector.
Aviva Life Insurance India: Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. Enam (9. It is a private sector company. The market share for FY 2005-06 is 0.14%. ING Vysya Life insurance: ING Vysya Life Insurance is joint venture between Exide (50%). Gujarat Cements (14. It is a private sector company. It is a private sector company. It is a private sector company.79%. The company was registered on 14/5/2002.com 69 . Pallonji & Co and MetLife.87%). The company was registered on 10/1/2001.11%. The market share for FY 2005-06 was 1. The market share for FY 2005-06 was 1. The market share for FY 2005-06 was 1. Dissertation – projectsparadise. Thesis. Met Life India: - Projects. The company was registered on 2/8/2001.13%) and ING (26 %). The company was registered on 6/8/2001.23%. Max New York Life: Max New York Life is a 74:26 joint venture between J & Bank.Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual.
A. Bajaj Allianz Life Insurance Co. The TATA AIG Group: TATA AIG group is a 74:26 JV between Tata Group and AIG. It is a private sector company.com 70 . The company was registered on 3/8/2001. Thesis. The company was registered on 6/8/2001.40%.31%.: - Projects.29%. It belongs to the private sector.: Bajaj Allianz Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG. Pallonji & Co and MetLife. The market share for FY 2005-06 was 2. The company was registered on 12/2/2001. The company was registered on 31/3/2001.Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank.56%. Dissertation – projectsparadise. SBI Life Insurance Company Ltd: SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S. The market share for FY 2005-06 was 1. The market share for FY 2005-06 was 0. The market share for FY 2005-06 was 7.It is a private sector company. Sahara India Life Insurance Company Ltd.
35 2. The company expects to start operations soon. The market share for FY 2005-06 was 0.87 71 Projects.com . Dissertation – projectsparadise. The Company commenced operations from 30th October 2004. No 1 2 3 4 Insurer LIC Bajaj Allianz ICICI Prudential HDFC Standard Market Share (%) 71. South Africa.44 7.06 %. 2) Market Share: - Sr. 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.First Wholly Indian Owned Private Life Insurance Company.56 7.
89 1.11 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 2.31 1. Thesis.com 72 .29 1.06 0. Dissertation – projectsparadise.4 0.79 0.14 1.54 0.03 Now let’s depict the market share of these players on diagram Projects.23 1.
Its market share was approximately 98% before 2000 but after the entry of private players it has significantly decreased. It has the market share of approximately 7. 73 Projects.56% in the total market and it constitutes 40% of the market share among private players.com . Thesis. SBI Life insurance Company Limited comes fourth. HDFC Standard comes third. Rest of the players has market share below 2%. Dissertation – projectsparadise.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. Among private players Bajaj Allianz stands first. ICICI Prudential is also one of the fastest growing life insurance companies in India.
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. Dissertation – projectsparadise.com 74 . Thesis.
com 75 . Thesis. Dissertation – projectsparadise.CHAPTER – 6 RESEARCH METHODOLOGY Projects.
6. Projects.1 OBJECTIVES OF STUDY 1) To get some good market exposure by dealing with the prospects face to face. Thesis. Dissertation – projectsparadise.com 76 . 2) To improve our ability to sell a financial product like life insurance.
I have used simple. Dissertation – projectsparadise.com 77 .2 QUESTIONNAIRE It is most common instrument whether administered in person by phone or online questionnaires are very flexible. The form of each question is also important. 4) To get a deep knowledge of the financial product like insurance. which are arranged in a logical order. Projects. I have also used closed-end questions.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. 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. Thesis. direct. which provide answers that are easier to interpret and tabulate. Closed end question include all the possible answers and subjects matters choices among them. unbiased wording questions. I have taken care in the wording and ordering of questions. I have asked personal questions at last so that respondent does not become defensive. 6.
I have tried to know their performance i. having been collected for another purpose. Thesis.com 78 .e. up to what amount and since when. I have gathered secondary data from website of different operators. whether they want to invest. where thy want to invest. private or public need different types of information are to know its popularity. 6. I have gathered secondary data and primary data and collected information from the combination of these two data. I have asked personal questions at last so that they do not become defensive. newspapers and libraries. Secondary data: Secondary data consist of information that already exists somewhere. Primary data: Projects. different magazines. Dissertation – projectsparadise.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.
com 79 .4 LIMITATIONS I am a human hang. current and unbiased. Thesis. I have visited them personally to get data. so there is some limitation of the human hangs which is reflected in this research. Because the population is too large so it is difficult to survey. Sample size: I have taken sample size of 50 respondents. I have taken a sample of 50 people. Projects. accurate. 6. The following are the limitation of this research study.I have taken great care while collecting primary data to answer that it is relevant. 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. I tried hard to come at conclusion.1) The sample size of 50 might not represent the perception of whole population. 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. Dissertation – projectsparadise. 2) The opinion expressed by the respondents may be biased. 3) The attitude of the research might be biased. If I give more time then studies will be more effective.com 80 . but there is lack of expertise.5 ANALYSIS OF QUESTIONNAIRE Here I have formed a questionnaire to study why people go for life insurance. as the sample size is too small for total population of Ahmedabad city. Thesis. 5) Another limitation is that there is lack of time. And I tried to give the best results to the research of this report. 6. But in spite of their limitation I worked with the enthusiasm. There are some limitations of this study.
6 questions are close ended and one question is an open ended one. Out of these 7 questions. Analysis:I have used pie charts.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover (d) Return/Yield Projects. Dissertation – projectsparadise. Professors. and general public. Q. Professionals. I asked the questions to Doctors. Target Population:I had conducted this survey among 50 people. and the target group was a mix of people from the society.com 81 . Thesis. Engineers.Questions:There are 7 questions in the questionnaire. Advocates. and some other statistical measures to analyze the questions.
While some people believe that it is a compulsory saving.MOTIVE TAX SAVING RISK COVERAGE RETURN/YIELD TOTAL NO. Some people consider Tax benefit as the main advantage of life insurance. 20 5 23 2 50 There could be any motive of people behind investing in a life insurance policy. The main purpose of life insurance is the Risk cover of one’s life. But some people consider different advantages of a life insurance policy. Now let’s see what all people say TAX SAVING RISK COVERAGE RETURN/YIELD Projects. Some believe that life insurance is an investment so they tend to invest in life insurance.com 82 . Dissertation – projectsparadise. Thesis.
com 83 . life insurance is for protection first then for Savings and Tax benefits all those things.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. As the private players have launched ULIPs. Dissertation – projectsparadise. Q. 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. Also the number of those people who wish to invest for return is also increasing. Return comes last.Here we can see that majority of the people tend to invest in life insurance for the risk coverage. Saving motive constitutes very small part of the total sample. But this is the general conclusion of 50 people. The next preferred option is Tax Saving. According to a life insurance expert (Vinod Thakkar ). we can get a different result. more and more people are turning towards these products so the Investment motive has been gaining command. Thesis. If we take a larger sample.
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 . Q. This shows that still people consider other financial tools more viable for return and life insurance is for Tax benefit and risk cover.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. The third position is of saving and fourth is Return. Thesis. which is the main theme of life insurance followed by Tax benefit. Dissertation – projectsparadise.
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. 28% persons decides as per the guidance of the agent.com 85 . Dissertation – projectsparadise. Thesis.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. Also sometimes it depends upon the convincing power of the agent. People tend to invest in life insurance plans to maintain relations though they are not in need of life insurance. people would invest. Here one hazardous factor is the moral hazard. Projects.
There is no contribution of employers in the decision of one’s investment in life insurance. Dissertation – projectsparadise.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. 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. Thesis. 9 9 7 19 6 50 Projects. We have already explained all these policies ahead. which are relatively new entrant in the market.4.
Term Assurance Whole Life Endowment Combined ULIPs As it is evident from the chart and the table 38% people prefer combination of Whole Life and Endowment product. Q.com 87 . and after that period the risk cover continues and the rest of the amount would be paid when the person dies. Projects. The person would get some amount at the end of the stipulated period. It gives people double advantage. Thesis.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. for instance 20 years. Dissertation – projectsparadise. It is the main theme of this questionnaire.
Now let’s see what people say: Particulars Reliance Life Insurance LIC TOTAL No. So it has fewer customers as compared to LIC.com 88 . Projects. Reliance Life Insurance Company Limited is newly launched company. But after the entry of private players in 2000. some people have also turned to private life insurers. 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. Thesis. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in today’s environment. So people had to go to LIC for buying life insurance policy. Dissertation – projectsparadise.Prior to 2000 LIC was the only player in the life insurance market and it had the total market.
com 89 . Thesis. Dissertation – projectsparadise. 5 30 15 50 Projects.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.
60% people are aged between 31 to 50. Dissertation – projectsparadise. and remaining 30% people are aged between 51 to 65. Projects. Thesis. 2) Occupation (a) Service (b) Business (c) Profession (d) Housewife (e) Retired Occupation No.com 90 . Out of which 10% people are aged between 18 to 30.18 to 30 31 to 50 51 to 65 As evident from the chart that I have taken a sample of 50.
00.00. 10% are of housewives and remaining 30% are of retired. Thesis.000 Projects.00. 3) Income (a) 50.000 (b) 1.com 91 .000 (c) More than 5.000 to 5. 20% are of professions.000 to 1. Dissertation – projectsparadise. 30% are of business men.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.
00.000 to 5.com 92 .00.00.000 More than 5.000 to 1.000 to 1.000 and 30% are earning more than 5.00.00.000 to 5.00.000. Dissertation – projectsparadise. Thesis. 50% are earning between 1.00.00.000 to 1.Income (Per Annum) No.000 More than 5.000 1.000.000 TOTAL 50.000 1. 50.000 to 5.000 10 25 15 50 As the evident from the chart out of 50 respondents 20% are earning annually between 50.00.00.00. 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects.00.
Thesis. Now let’s make SWOT analysis for reliance Life Insurance Company Limited. 30% have 3 family members. Dissertation – projectsparadise. which have impact on the survival of any organization. Projects. 6.Family Members No. 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.com 93 .6 SWOT ANALYSIS SWOT analysis is the analysis of the internal and external factors. 40% have 4 family members and remaining 20% have more than 4 family members.
000 crs worth of securities with RBI by the government. 4) Strong liquidity from FII was the major reason for the up move. financial stability. Led to an improvement in market securities. so people seems it risky. ▼WEAKNESSES: 1) Newly established company. Projects. 3) Private placement of Rs. Thesis. 5) Range of products 6) Reliance has a long and strong history of solvency. 2) Lack of staff.☻STRENGTHS: 1) Reliance Life Insurance Company Limited is the part of the Reliance Capital.com 94 . 10. 2) The brand name is enough to sell the products easily. Dissertation – projectsparadise.
the people who used to invest in life insurance for the sole motive of tax benefit may turn to other instruments.5%. so most of the customers are not aware of the Reliance Life Insurance. The life insurance penetration in India is approximately 2. ☼ OPPORTUNITY: 1) There is a vast untapped market in India. 2) As the government has scrapped the rebate on the life insurance premium. CHAPTER – 7 FINANCE DEPARTMENT Projects. regular and disciplined savings to systematically build up a target fund. 2) Intention of traditional products is to encourage long term. 3) The average insurance premium being collected by the company has been growing exponentially year on year. Thesis.com 95 . Dissertation – projectsparadise.3) Lack of advertisement. ● THREATS: 1) The main threat is from the other players who have grabbed approximately 15% of the market share. So it has large potential.
com 96 . Dissertation – projectsparadise. which Reliance Life Insurance Company Limited has offered. Thesis. which are as follows: Projects.FUND PERFORMANCE:- There are four fund options.
com % of total assets 38.75 13.69 40.1) Capital Secure Fund:This fund is for Reliance Golden Years Plan.’06) Net Returns during the last 12 months (Apr. The net return credited to policyholders and the asset composition ratios are given in the boxes below.10% 4.68% GOI 2006 11.75% GOI 2006 11.’05-Mar. 61.96 97 . Net Returns during last 1 month (Mar.75% GOI 2006 Projects. and Reliance Market Return Plan.’06) Net Returns during the last 3 months (Jan. In line with the objective of protecting the capital against any erosion.’06) Net Returns since Inception in Feb’03 (Annualized) 0.09% 3. Thesis.36% 1.4% 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.89% Bank Fixed Deposits Asset Name Total Bank Deposit Gilts 6.-Mar. Dissertation – projectsparadise.60 6.
To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. The asset composition.Total Gilts Total 61.com 2. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund.47% 98 . the details of the portfolio and the net returns are disclosed below. To take advantage of the bullish trend in the equity market.00 Asset Allocation:- Gilts Bank Deposits 2) Balanced Fund:This fund is for Reliance Golden Years Plan. and Reliance Market Return Plan.’06) Projects. All the bonds in the portfolio are top rated.40 100. Bank deposits were maintained only for the purpose of liquidity management. Dissertation – projectsparadise. Thesis. Net Returns during last 1 month (Mar. allocation to Gilts was higher than corporate bonds. Within the fixed income portfolio.
Dissertation – projectsparadise.’06) Net Returns during the last 12 months (Apr.com 99 .’05-Mar.83% 13.00 Equity Corporate Bonds & Debentures Gilts Bank Deposits 3) Growth Fund:- Projects. Thesis.10% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 20 22 53 5 100.’06) Net Returns since Inception in Feb’03 (Annualized) 4.07% 13.-Mar.Net Returns during the last 3 months (Jan.
the details of the portfolio and the net returns are disclosed below.’05-Mar. Net Returns during last 1 month (Mar.90% 21.’06) Net Returns since Inception in Feb’03 (Annualized) 4.00 Projects. and Reliance Market Return Plan. The asset composition.’06) Net Returns during the last 3 months (Jan.’06) Net Returns during the last 12 months (Apr.60% 7. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund.04% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 9 40 45 6 100.-Mar.99% 24. To take advantage of the bullish trend in the equity market.com 100 . All the bonds in the portfolio are top rated.This fund is for Reliance Golden Years Plan. Dissertation – projectsparadise. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. Thesis.
the entire corpus of the fund was invested in equities.-Mar.’06) Net Returns during the last 12 months (Apr.02% 64.Equity Corporate Bonds & Debentures Gilts Bank Deposits 4) Equity Fund:This fund is for Reliance Market Return Plan.83% Projects.46% 57.18% 20. Dissertation – projectsparadise.’06) Net Returns during the last 3 months (Jan.’05-Mar.com 101 . Thesis. Net returns earned since inception and the full portfolio are disclosed below.’06) Net Returns since Inception in Feb’03 (Annualized) 11. In line with the stated asset allocation pattern and their view of the market. Net Returns during last 1 month (Mar.
93 1.00 Equity Mutual Fund/Bank Deposits CHAPTER – 8 102 Projects.com .07 100. Thesis. Dissertation – projectsparadise.Asset Name Equity Mutual Fund/Bank Deposits Total % of Total Asset 98.
After the deep study of insurance sector of India, I can tell that this is the sector, which has most business opportunities perhaps in India.
Projects, Thesis, Dissertation – projectsparadise.com
Insurance industry is one of the fastest sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased. As far as the comparison of Reliance Life Insurance and other players is concerned, there are both positive as well as negative impacts on both the sides. For Reliance Life Insurance, the negative aspect is that its market share is low. For private players the negative aspect is that they have to fight with the public sector giant which is established player with a high brand value. But the positive impact is that the life insurance awareness has increased and the business of Reliance Life Insurance has increased.
BIBLIOGRAPHY AND REFERENCES
Projects, Thesis, Dissertation – projectsparadise.com
www.reliancelife.com www.indiainfoline.com www.bimaonline.com www.google.com
Projects, Thesis, Dissertation – projectsparadise.com
Life Time Magazine of Reliance Life Insurance Net Bios Computer Academy’s Life Insurance Book Broachers of Reliance Life Insurance CHAPTER – 10 ANNEXURE Projects. Thesis.com 106 . Dissertation – projectsparadise.
Dissertation – projectsparadise.com 107 .K.B.Questionnaire Survey by student of R.M. On Life Insurance NAME: ___________________________________________ Q. Thesis.C.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover Projects.
com 108 . 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.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. Dissertation – projectsparadise.4.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC 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 Q.
com 109 . Thesis. 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) 50.000 (b) 1.00.00.00.000 to 5.com 110 .000 (c) More than 5.00. Dissertation – projectsparadise.000 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects.000 to 1. Thesis.
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